Sen. Celina Villanueva
Filed: 5/25/2024
 
 
 




10300HB4951sam002LRB103 38094 HLH 74177 a


1
AMENDMENT TO HOUSE BILL 4951


2 AMENDMENT NO. ______. Amend House Bill 4951, AS AMENDED, 
3by replacing everything after the enacting clause with the 
4following:

5
"ARTICLE 5.


6 Section 5-5. The Department of Revenue Law of the Civil 
7Administrative Code of Illinois is amended by adding Section 
82505-815 as follows:

9 (20 ILCS 2505/2505-815 new)
10 Sec. 2505-815. County Official Compensation Task Force.
11 (a) The County Official Compensation Task Force is created 
12to review the compensation of county-level officials as 
13provided for in various State statutes and to make 
14recommendations to the General Assembly on any appropriate 
15changes to those statutes, including implementation dates.
 
 
10300HB4951sam002- 2 -LRB103 38094 HLH 74177 a


1 (b) The members of the Task Force shall be as follows:
2  (1) the Director of Revenue or the Director's 
3 designee, who shall serve as the chair of the Task Force;
4  (2) two representatives from a statewide organization 
5 that represents chief county assessment officers, with one 
6 representative from a county with a 2020 population of 
7 fewer than 25,000 persons and one representative from a 
8 county with a 2020 population of 25,000 or more, to be 
9 appointed by the Director of Revenue;
10  (3) two representatives from a statewide organization 
11 that represents county auditors, with one representative 
12 from a county with a 2020 population of fewer than 25,000 
13 persons and one representative from a county with a 2020 
14 population of 25,000 or more, to be appointed by the 
15 Director of Revenue;
16  (4) two representatives from a statewide organization 
17 that represents county clerks and recorders, with one 
18 representative from a county with a 2020 population of 
19 fewer than 25,000 persons and one representative from a 
20 county with a 2020 population of 25,000 or more, to be 
21 appointed by the Director of Revenue;
22  (5) two representatives from a statewide organization 
23 that represents circuit clerks, with one representative 
24 from a county with a 2020 population of fewer than 25,000 
25 persons and one representative from a county with a 2020 
26 population of 25,000 or more, to be appointed by the Chief 
 
 
10300HB4951sam002- 3 -LRB103 38094 HLH 74177 a


1 Justice of the Supreme Court;
2  (6) two representatives from a statewide organization 
3 that represents county treasurers, with one representative 
4 from a county with a 2020 population of fewer than 25,000 
5 persons and one representative from a county with a 2020 
6 population of 25,000 or more, to be appointed by the 
7 Director of Revenue;
8  (7) four representatives from a statewide organization 
9 that represents county board members, with 2 
10 representatives from counties with a 2020 population of 
11 fewer than 25,000 persons and 2 representatives from 
12 counties with a 2020 population of 25,000 or more, to be 
13 appointed by the Governor; and
14  (8) four members from the General Assembly, with one 
15 member appointed by the President of the Senate, one 
16 member appointed by the Senate Minority Leader, one member 
17 appointed by the Speaker of the House of Representatives, 
18 and one member appointed by the House Minority Leader.
19 (c) The Department of Revenue shall provide administrative 
20and other support to the Task Force.
21 (d) The Task Force's review shall include, but is not 
22limited to, the following subjects:
23  (1) a review and comparison of current statutory 
24 provisions and requirements for compensation of 
25 county-level officials;
26  (2) the proportion of salary and related costs borne 
 
 
10300HB4951sam002- 4 -LRB103 38094 HLH 74177 a


1 by State government compared to local government;
2  (3) job duties, education requirements, and other 
3 requirements of those serving as county-level officials; 
4 and
5  (4) current compensation levels for county-level 
6 officials as compared to comparable positions in 
7 non-governmental positions and comparable positions in 
8 other levels of government.
9 (e) On or before September 1, 2024, the Task Force members 
10shall be appointed. On or before February 1, 2025, the Task 
11Force shall prepare a status report that summarizes its work. 
12The Task Force shall also prepare a comprehensive report 
13either (i) on or before May 1, 2025 or (ii) on or before 
14December 31, 2025, if all appointments to the Task Force are 
15not made by September 1, 2024. The comprehensive report shall 
16summarize the Task Force's findings and make recommendations 
17on the implementation of changes to the compensation of chief 
18county assessment officers, county auditors, county clerks and 
19recorders, county coroners, county treasurers, and circuit 
20clerks that will ensure compensation is competitive for 
21recruitment and retention and will ensure parity exists among 
22compensation levels within each profession, each county, and 
23across the State.
24 (f) The Task Force is dissolved on January 1, 2026.

25
ARTICLE 10.


 
 
10300HB4951sam002- 5 -LRB103 38094 HLH 74177 a


1 Section 10-1. Short title. This Act may be cited as the 
2Workforce Development through Charitable Loan Repayment Act. 
3References in this Article to "this Act" mean this Article.

4 Section 10-5. Purpose. The purpose of this Act is to 
5create a private sector incentive for qualified workers to 
6work and live in eligible areas while also reducing the 
7student debt burden of those workers.

8 Section 10-10. Definitions. As used in this Act:
9 "Commission" means the Illinois Student Assistance 
10Commission.
11 "Full-time employee" means an individual who is employed 
12for consideration for at least 35 hours each week.
13 "Program" means the Workforce Development Through 
14Charitable Loan Repayment Program established under this Act.
15 "Qualified community foundation" means a community 
16foundation or similar publicly supported organization 
17described in Section 170(b)(1)(A)(vi) of the Internal Revenue 
18Code of 1986 that (i) is organized or operating in this State, 
19(ii) substantially complies, as determined by the Commission, 
20with the national standards for United States community 
21foundations established by the Community Foundations National 
22Standards or a successor entity, and (iii) is approved by the 
23Commission for participation in the Program as provided in 
 
 
10300HB4951sam002- 6 -LRB103 38094 HLH 74177 a


1Section 10-17.
2 "Qualified worker" means an individual who meets all of 
3the following:
4  (1) the individual is a full-time employee of a 
5 business that meets one or more of the following: 
6   (A) the business is a qualified new business 
7 venture that is registered with the Department of 
8 Commerce and Economic Opportunity under Section 220 of 
9 the Illinois Income Tax Act; 
10   (B) the business is primarily engaged in a 
11 targeted growth industry;
12   (C) the business is a minority-owned business, a 
13 women-owned business, or a business owned by a person 
14 with a disability, as those terms are defined in the 
15 Business Enterprise for Minorities, Women, and Persons 
16 with Disabilities Act; or
17   (D) the business is a not-for-profit corporation, 
18 as defined in the General Not For Profit Corporation 
19 Act of 1986;
20  (2) the individual is employed by the business 
21 described in paragraph (1) at a job site that is located in 
22 an Enterprise Zone, an Opportunity Zone, an underserved 
23 area, or an area that has a bachelor's degree attainment 
24 rate for the population that is below the State or 
25 national average for the population, as determined by the 
26 United States Census Bureau; and
 
 
10300HB4951sam002- 7 -LRB103 38094 HLH 74177 a


1  (3) the individual (i) received an associate degree or 
2 higher and has an outstanding balance due on a qualified 
3 education loan, as defined in Section 221 of the Internal 
4 Revenue Code, or (ii) accrued educational debt while 
5 pursuing skilled trades and related schooling.
6 "Student loan repayment assistance" means grants or 
7post-graduation scholarships made by a community foundation 
8directly to a student loan servicer on behalf of a qualified 
9worker. 
10 "Targeted growth industry" means one or more of the 
11following:
12  (1) advanced manufacturing;
13  (2) agribusiness and food processing;
14  (3) transportation distribution and logistics;
15  (4) life sciences and biotechnology;
16  (5) business and professional services; or
17  (6) energy.
18 "Underserved area" has the meaning given to that term in 
19Section 5-5 of the Economic Development for a Growing Economy 
20Tax Credit Act.

21 Section 10-15. Establishment of the Program; 
22advertisement. The Workforce Development through Charitable 
23Loan Repayment Program is hereby created for the purpose of 
24facilitating student loan repayment assistance for qualified 
25workers. The Program shall be administered by qualified 
 
 
10300HB4951sam002- 8 -LRB103 38094 HLH 74177 a


1community foundations with the assistance of the Commission. 
2The Commission shall advertise the program on its website.

3 Section 10-17. Approval to participate in the Program. 
4 (a) A qualified community foundation shall apply to the 
5Commission, in the form and manner prescribed by the 
6Commission, for eligibility to participate in the Program 
7under this Act. Each application shall include:
8  (1) documentary evidence that the qualified community 
9 foundation meets the qualifications under Section 
10 170(b)(1)(A)(vi) of the Internal Revenue Code and 
11 substantially complies with the standards established by 
12 Community Foundations National Standards;
13  (2) a list of the names and addresses of all members of 
14 the governing board of the qualified community foundation; 
15 and 
16  (3) a copy of the most recent financial audit of the 
17 qualified community foundation's accounts and records 
18 conducted by an independent certified public accountant in 
19 accordance with auditing standards generally accepted in 
20 the United States, government auditing standards, and 
21 rules adopted by the Commission. 
22 (b) The Commission shall review and either approve or deny 
23each application for participation. Applicants shall be 
24notified of the status of their application within a 
25reasonable amount of time after the completed application is 
 
 
10300HB4951sam002- 9 -LRB103 38094 HLH 74177 a


1received.
2 (c) The Commission may provide, by rule, that qualified 
3community foundations that are eligible to participate in tax 
4incentive programs administered by other State agencies are 
5automatically eligible to participate in the Program under 
6this Section.

7 Section 10-20. Applications. Each qualified community 
8foundation shall establish an application process for 
9qualified workers to receive student loan repayment assistance 
10from the qualified community foundation in accordance with 
11this Act and rules adopted for the implementation of this Act 
12by the Commission. If necessary due to limited funds, the 
13qualified community foundation shall give priority to 
14applicants with a higher student debt-to-income ratio when 
15awarding student loan repayment assistance under the Program.

16 Section 10-25. Eligibility; work requirement. Each 
17individual qualified community foundation shall certify the 
18eligibility of qualified workers to receive student loan 
19repayment assistance and establish work requirements in 
20accordance with this Act, rules adopted by the Commission, and 
21the requirements of the individual qualified community 
22foundation.

23 Section 10-30. Administration; rules. Qualified community 
 
 
10300HB4951sam002- 10 -LRB103 38094 HLH 74177 a


1foundations shall administer the Program under this Act and 
2shall issue to qualified workers any forms required by the 
3Commission or the Department of Revenue. The Commission shall 
4adopt rules for the Program's effective implementation, except 
5that rules regarding the documentation necessary to deduct 
6student loan repayment assistance from the worker's income 
7under subparagraph (LL) of subsection (a) of Section 203 of 
8the Illinois Income Tax Act may be adopted by the Department of 
9Revenue in consultation with the Commission. Individual 
10qualified community foundations may impose requirements for 
11participation in the Program, which shall not be inconsistent 
12with this Act or the rules adopted by the Commission or the 
13Department of Revenue in connection with this Act.

14 Section 10-35. Reporting. Each qualified community 
15foundation shall submit an annual report to the Commission 
16summarizing its loan repayment activity under the Program. 
17Reports under this Section shall be submitted in the form and 
18manner prescribed by the Commission.

19 Section 10-900. The Illinois Income Tax Act is amended by 
20changing Section 203 as follows:

21 (35 ILCS 5/203)
22 Sec. 203. Base income defined. 
23 (a) Individuals.
 
 
10300HB4951sam002- 11 -LRB103 38094 HLH 74177 a


1  (1) In general. In the case of an individual, base 
2 income means an amount equal to the taxpayer's adjusted 
3 gross income for the taxable year as modified by paragraph 
4 (2).
5  (2) Modifications. The adjusted gross income referred 
6 to in paragraph (1) shall be modified by adding thereto 
7 the sum of the following amounts:
8   (A) An amount equal to all amounts paid or accrued 
9 to the taxpayer as interest or dividends during the 
10 taxable year to the extent excluded from gross income 
11 in the computation of adjusted gross income, except 
12 stock dividends of qualified public utilities 
13 described in Section 305(e) of the Internal Revenue 
14 Code;
15   (B) An amount equal to the amount of tax imposed by 
16 this Act to the extent deducted from gross income in 
17 the computation of adjusted gross income for the 
18 taxable year;
19   (C) An amount equal to the amount received during 
20 the taxable year as a recovery or refund of real 
21 property taxes paid with respect to the taxpayer's 
22 principal residence under the Revenue Act of 1939 and 
23 for which a deduction was previously taken under 
24 subparagraph (L) of this paragraph (2) prior to July 
25 1, 1991, the retrospective application date of Article 
26 4 of Public Act 87-17. In the case of multi-unit or 
 
 
10300HB4951sam002- 12 -LRB103 38094 HLH 74177 a


1 multi-use structures and farm dwellings, the taxes on 
2 the taxpayer's principal residence shall be that 
3 portion of the total taxes for the entire property 
4 which is attributable to such principal residence;
5   (D) An amount equal to the amount of the capital 
6 gain deduction allowable under the Internal Revenue 
7 Code, to the extent deducted from gross income in the 
8 computation of adjusted gross income;
9   (D-5) An amount, to the extent not included in 
10 adjusted gross income, equal to the amount of money 
11 withdrawn by the taxpayer in the taxable year from a 
12 medical care savings account and the interest earned 
13 on the account in the taxable year of a withdrawal 
14 pursuant to subsection (b) of Section 20 of the 
15 Medical Care Savings Account Act or subsection (b) of 
16 Section 20 of the Medical Care Savings Account Act of 
17 2000;
18   (D-10) For taxable years ending after December 31, 
19 1997, an amount equal to any eligible remediation 
20 costs that the individual deducted in computing 
21 adjusted gross income and for which the individual 
22 claims a credit under subsection (l) of Section 201;
23   (D-15) For taxable years 2001 and thereafter, an 
24 amount equal to the bonus depreciation deduction taken 
25 on the taxpayer's federal income tax return for the 
26 taxable year under subsection (k) of Section 168 of 
 
 
10300HB4951sam002- 13 -LRB103 38094 HLH 74177 a


1 the Internal Revenue Code;
2   (D-16) If the taxpayer sells, transfers, abandons, 
3 or otherwise disposes of property for which the 
4 taxpayer was required in any taxable year to make an 
5 addition modification under subparagraph (D-15), then 
6 an amount equal to the aggregate amount of the 
7 deductions taken in all taxable years under 
8 subparagraph (Z) with respect to that property.
9   If the taxpayer continues to own property through 
10 the last day of the last tax year for which a 
11 subtraction is allowed with respect to that property 
12 under subparagraph (Z) and for which the taxpayer was 
13 allowed in any taxable year to make a subtraction 
14 modification under subparagraph (Z), then an amount 
15 equal to that subtraction modification. 
16   The taxpayer is required to make the addition 
17 modification under this subparagraph only once with 
18 respect to any one piece of property;
19   (D-17) An amount equal to the amount otherwise 
20 allowed as a deduction in computing base income for 
21 interest paid, accrued, or incurred, directly or 
22 indirectly, (i) for taxable years ending on or after 
23 December 31, 2004, to a foreign person who would be a 
24 member of the same unitary business group but for the 
25 fact that foreign person's business activity outside 
26 the United States is 80% or more of the foreign 
 
 
10300HB4951sam002- 14 -LRB103 38094 HLH 74177 a


1 person's total business activity and (ii) for taxable 
2 years ending on or after December 31, 2008, to a person 
3 who would be a member of the same unitary business 
4 group but for the fact that the person is prohibited 
5 under Section 1501(a)(27) from being included in the 
6 unitary business group because he or she is ordinarily 
7 required to apportion business income under different 
8 subsections of Section 304. The addition modification 
9 required by this subparagraph shall be reduced to the 
10 extent that dividends were included in base income of 
11 the unitary group for the same taxable year and 
12 received by the taxpayer or by a member of the 
13 taxpayer's unitary business group (including amounts 
14 included in gross income under Sections 951 through 
15 964 of the Internal Revenue Code and amounts included 
16 in gross income under Section 78 of the Internal 
17 Revenue Code) with respect to the stock of the same 
18 person to whom the interest was paid, accrued, or 
19 incurred.
20   This paragraph shall not apply to the following: 
21    (i) an item of interest paid, accrued, or 
22 incurred, directly or indirectly, to a person who 
23 is subject in a foreign country or state, other 
24 than a state which requires mandatory unitary 
25 reporting, to a tax on or measured by net income 
26 with respect to such interest; or
 
 
10300HB4951sam002- 15 -LRB103 38094 HLH 74177 a


1    (ii) an item of interest paid, accrued, or 
2 incurred, directly or indirectly, to a person if 
3 the taxpayer can establish, based on a 
4 preponderance of the evidence, both of the 
5 following:
6     (a) the person, during the same taxable 
7 year, paid, accrued, or incurred, the interest 
8 to a person that is not a related member, and
9     (b) the transaction giving rise to the 
10 interest expense between the taxpayer and the 
11 person did not have as a principal purpose the 
12 avoidance of Illinois income tax, and is paid 
13 pursuant to a contract or agreement that 
14 reflects an arm's-length interest rate and 
15 terms; or 
16    (iii) the taxpayer can establish, based on 
17 clear and convincing evidence, that the interest 
18 paid, accrued, or incurred relates to a contract 
19 or agreement entered into at arm's-length rates 
20 and terms and the principal purpose for the 
21 payment is not federal or Illinois tax avoidance; 
22 or 
23    (iv) an item of interest paid, accrued, or 
24 incurred, directly or indirectly, to a person if 
25 the taxpayer establishes by clear and convincing 
26 evidence that the adjustments are unreasonable; or 
 
 
10300HB4951sam002- 16 -LRB103 38094 HLH 74177 a


1 if the taxpayer and the Director agree in writing 
2 to the application or use of an alternative method 
3 of apportionment under Section 304(f). 
4    Nothing in this subsection shall preclude the 
5 Director from making any other adjustment 
6 otherwise allowed under Section 404 of this Act 
7 for any tax year beginning after the effective 
8 date of this amendment provided such adjustment is 
9 made pursuant to regulation adopted by the 
10 Department and such regulations provide methods 
11 and standards by which the Department will utilize 
12 its authority under Section 404 of this Act; 
13   (D-18) An amount equal to the amount of intangible 
14 expenses and costs otherwise allowed as a deduction in 
15 computing base income, and that were paid, accrued, or 
16 incurred, directly or indirectly, (i) for taxable 
17 years ending on or after December 31, 2004, to a 
18 foreign person who would be a member of the same 
19 unitary business group but for the fact that the 
20 foreign person's business activity outside the United 
21 States is 80% or more of that person's total business 
22 activity and (ii) for taxable years ending on or after 
23 December 31, 2008, to a person who would be a member of 
24 the same unitary business group but for the fact that 
25 the person is prohibited under Section 1501(a)(27) 
26 from being included in the unitary business group 
 
 
10300HB4951sam002- 17 -LRB103 38094 HLH 74177 a


1 because he or she is ordinarily required to apportion 
2 business income under different subsections of Section 
3 304. The addition modification required by this 
4 subparagraph shall be reduced to the extent that 
5 dividends were included in base income of the unitary 
6 group for the same taxable year and received by the 
7 taxpayer or by a member of the taxpayer's unitary 
8 business group (including amounts included in gross 
9 income under Sections 951 through 964 of the Internal 
10 Revenue Code and amounts included in gross income 
11 under Section 78 of the Internal Revenue Code) with 
12 respect to the stock of the same person to whom the 
13 intangible expenses and costs were directly or 
14 indirectly paid, incurred, or accrued. The preceding 
15 sentence does not apply to the extent that the same 
16 dividends caused a reduction to the addition 
17 modification required under Section 203(a)(2)(D-17) of 
18 this Act. As used in this subparagraph, the term 
19 "intangible expenses and costs" includes (1) expenses, 
20 losses, and costs for, or related to, the direct or 
21 indirect acquisition, use, maintenance or management, 
22 ownership, sale, exchange, or any other disposition of 
23 intangible property; (2) losses incurred, directly or 
24 indirectly, from factoring transactions or discounting 
25 transactions; (3) royalty, patent, technical, and 
26 copyright fees; (4) licensing fees; and (5) other 
 
 
10300HB4951sam002- 18 -LRB103 38094 HLH 74177 a


1 similar expenses and costs. For purposes of this 
2 subparagraph, "intangible property" includes patents, 
3 patent applications, trade names, trademarks, service 
4 marks, copyrights, mask works, trade secrets, and 
5 similar types of intangible assets.
6   This paragraph shall not apply to the following:
7    (i) any item of intangible expenses or costs 
8 paid, accrued, or incurred, directly or 
9 indirectly, from a transaction with a person who 
10 is subject in a foreign country or state, other 
11 than a state which requires mandatory unitary 
12 reporting, to a tax on or measured by net income 
13 with respect to such item; or
14    (ii) any item of intangible expense or cost 
15 paid, accrued, or incurred, directly or 
16 indirectly, if the taxpayer can establish, based 
17 on a preponderance of the evidence, both of the 
18 following:
19     (a) the person during the same taxable 
20 year paid, accrued, or incurred, the 
21 intangible expense or cost to a person that is 
22 not a related member, and
23     (b) the transaction giving rise to the 
24 intangible expense or cost between the 
25 taxpayer and the person did not have as a 
26 principal purpose the avoidance of Illinois 
 
 
10300HB4951sam002- 19 -LRB103 38094 HLH 74177 a


1 income tax, and is paid pursuant to a contract 
2 or agreement that reflects arm's-length terms; 
3 or
4    (iii) any item of intangible expense or cost 
5 paid, accrued, or incurred, directly or 
6 indirectly, from a transaction with a person if 
7 the taxpayer establishes by clear and convincing 
8 evidence, that the adjustments are unreasonable; 
9 or if the taxpayer and the Director agree in 
10 writing to the application or use of an 
11 alternative method of apportionment under Section 
12 304(f); 
13    Nothing in this subsection shall preclude the 
14 Director from making any other adjustment 
15 otherwise allowed under Section 404 of this Act 
16 for any tax year beginning after the effective 
17 date of this amendment provided such adjustment is 
18 made pursuant to regulation adopted by the 
19 Department and such regulations provide methods 
20 and standards by which the Department will utilize 
21 its authority under Section 404 of this Act; 
22   (D-19) For taxable years ending on or after 
23 December 31, 2008, an amount equal to the amount of 
24 insurance premium expenses and costs otherwise allowed 
25 as a deduction in computing base income, and that were 
26 paid, accrued, or incurred, directly or indirectly, to 
 
 
10300HB4951sam002- 20 -LRB103 38094 HLH 74177 a


1 a person who would be a member of the same unitary 
2 business group but for the fact that the person is 
3 prohibited under Section 1501(a)(27) from being 
4 included in the unitary business group because he or 
5 she is ordinarily required to apportion business 
6 income under different subsections of Section 304. The 
7 addition modification required by this subparagraph 
8 shall be reduced to the extent that dividends were 
9 included in base income of the unitary group for the 
10 same taxable year and received by the taxpayer or by a 
11 member of the taxpayer's unitary business group 
12 (including amounts included in gross income under 
13 Sections 951 through 964 of the Internal Revenue Code 
14 and amounts included in gross income under Section 78 
15 of the Internal Revenue Code) with respect to the 
16 stock of the same person to whom the premiums and costs 
17 were directly or indirectly paid, incurred, or 
18 accrued. The preceding sentence does not apply to the 
19 extent that the same dividends caused a reduction to 
20 the addition modification required under Section 
21 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this 
22 Act; 
23   (D-20) For taxable years beginning on or after 
24 January 1, 2002 and ending on or before December 31, 
25 2006, in the case of a distribution from a qualified 
26 tuition program under Section 529 of the Internal 
 
 
10300HB4951sam002- 21 -LRB103 38094 HLH 74177 a


1 Revenue Code, other than (i) a distribution from a 
2 College Savings Pool created under Section 16.5 of the 
3 State Treasurer Act or (ii) a distribution from the 
4 Illinois Prepaid Tuition Trust Fund, an amount equal 
5 to the amount excluded from gross income under Section 
6 529(c)(3)(B). For taxable years beginning on or after 
7 January 1, 2007, in the case of a distribution from a 
8 qualified tuition program under Section 529 of the 
9 Internal Revenue Code, other than (i) a distribution 
10 from a College Savings Pool created under Section 16.5 
11 of the State Treasurer Act, (ii) a distribution from 
12 the Illinois Prepaid Tuition Trust Fund, or (iii) a 
13 distribution from a qualified tuition program under 
14 Section 529 of the Internal Revenue Code that (I) 
15 adopts and determines that its offering materials 
16 comply with the College Savings Plans Network's 
17 disclosure principles and (II) has made reasonable 
18 efforts to inform in-state residents of the existence 
19 of in-state qualified tuition programs by informing 
20 Illinois residents directly and, where applicable, to 
21 inform financial intermediaries distributing the 
22 program to inform in-state residents of the existence 
23 of in-state qualified tuition programs at least 
24 annually, an amount equal to the amount excluded from 
25 gross income under Section 529(c)(3)(B).
26   For the purposes of this subparagraph (D-20), a 
 
 
10300HB4951sam002- 22 -LRB103 38094 HLH 74177 a


1 qualified tuition program has made reasonable efforts 
2 if it makes disclosures (which may use the term 
3 "in-state program" or "in-state plan" and need not 
4 specifically refer to Illinois or its qualified 
5 programs by name) (i) directly to prospective 
6 participants in its offering materials or makes a 
7 public disclosure, such as a website posting; and (ii) 
8 where applicable, to intermediaries selling the 
9 out-of-state program in the same manner that the 
10 out-of-state program distributes its offering 
11 materials;
12   (D-20.5) For taxable years beginning on or after 
13 January 1, 2018, in the case of a distribution from a 
14 qualified ABLE program under Section 529A of the 
15 Internal Revenue Code, other than a distribution from 
16 a qualified ABLE program created under Section 16.6 of 
17 the State Treasurer Act, an amount equal to the amount 
18 excluded from gross income under Section 529A(c)(1)(B) 
19 of the Internal Revenue Code; 
20   (D-21) For taxable years beginning on or after 
21 January 1, 2007, in the case of transfer of moneys from 
22 a qualified tuition program under Section 529 of the 
23 Internal Revenue Code that is administered by the 
24 State to an out-of-state program, an amount equal to 
25 the amount of moneys previously deducted from base 
26 income under subsection (a)(2)(Y) of this Section;
 
 
10300HB4951sam002- 23 -LRB103 38094 HLH 74177 a


1   (D-21.5) For taxable years beginning on or after 
2 January 1, 2018, in the case of the transfer of moneys 
3 from a qualified tuition program under Section 529 or 
4 a qualified ABLE program under Section 529A of the 
5 Internal Revenue Code that is administered by this 
6 State to an ABLE account established under an 
7 out-of-state ABLE account program, an amount equal to 
8 the contribution component of the transferred amount 
9 that was previously deducted from base income under 
10 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this 
11 Section; 
12   (D-22) For taxable years beginning on or after 
13 January 1, 2009, and prior to January 1, 2018, in the 
14 case of a nonqualified withdrawal or refund of moneys 
15 from a qualified tuition program under Section 529 of 
16 the Internal Revenue Code administered by the State 
17 that is not used for qualified expenses at an eligible 
18 education institution, an amount equal to the 
19 contribution component of the nonqualified withdrawal 
20 or refund that was previously deducted from base 
21 income under subsection (a)(2)(y) of this Section, 
22 provided that the withdrawal or refund did not result 
23 from the beneficiary's death or disability. For 
24 taxable years beginning on or after January 1, 2018: 
25 (1) in the case of a nonqualified withdrawal or 
26 refund, as defined under Section 16.5 of the State 
 
 
10300HB4951sam002- 24 -LRB103 38094 HLH 74177 a


1 Treasurer Act, of moneys from a qualified tuition 
2 program under Section 529 of the Internal Revenue Code 
3 administered by the State, an amount equal to the 
4 contribution component of the nonqualified withdrawal 
5 or refund that was previously deducted from base 
6 income under subsection (a)(2)(Y) of this Section, and 
7 (2) in the case of a nonqualified withdrawal or refund 
8 from a qualified ABLE program under Section 529A of 
9 the Internal Revenue Code administered by the State 
10 that is not used for qualified disability expenses, an 
11 amount equal to the contribution component of the 
12 nonqualified withdrawal or refund that was previously 
13 deducted from base income under subsection (a)(2)(HH) 
14 of this Section;
15   (D-23) An amount equal to the credit allowable to 
16 the taxpayer under Section 218(a) of this Act, 
17 determined without regard to Section 218(c) of this 
18 Act;
19   (D-24) For taxable years ending on or after 
20 December 31, 2017, an amount equal to the deduction 
21 allowed under Section 199 of the Internal Revenue Code 
22 for the taxable year; 
23   (D-25) In the case of a resident, an amount equal 
24 to the amount of tax for which a credit is allowed 
25 pursuant to Section 201(p)(7) of this Act; 
26 and by deducting from the total so obtained the sum of the 
 
 
10300HB4951sam002- 25 -LRB103 38094 HLH 74177 a


1 following amounts:
2   (E) For taxable years ending before December 31, 
3 2001, any amount included in such total in respect of 
4 any compensation (including but not limited to any 
5 compensation paid or accrued to a serviceman while a 
6 prisoner of war or missing in action) paid to a 
7 resident by reason of being on active duty in the Armed 
8 Forces of the United States and in respect of any 
9 compensation paid or accrued to a resident who as a 
10 governmental employee was a prisoner of war or missing 
11 in action, and in respect of any compensation paid to a 
12 resident in 1971 or thereafter for annual training 
13 performed pursuant to Sections 502 and 503, Title 32, 
14 United States Code as a member of the Illinois 
15 National Guard or, beginning with taxable years ending 
16 on or after December 31, 2007, the National Guard of 
17 any other state. For taxable years ending on or after 
18 December 31, 2001, any amount included in such total 
19 in respect of any compensation (including but not 
20 limited to any compensation paid or accrued to a 
21 serviceman while a prisoner of war or missing in 
22 action) paid to a resident by reason of being a member 
23 of any component of the Armed Forces of the United 
24 States and in respect of any compensation paid or 
25 accrued to a resident who as a governmental employee 
26 was a prisoner of war or missing in action, and in 
 
 
10300HB4951sam002- 26 -LRB103 38094 HLH 74177 a


1 respect of any compensation paid to a resident in 2001 
2 or thereafter by reason of being a member of the 
3 Illinois National Guard or, beginning with taxable 
4 years ending on or after December 31, 2007, the 
5 National Guard of any other state. The provisions of 
6 this subparagraph (E) are exempt from the provisions 
7 of Section 250;
8   (F) An amount equal to all amounts included in 
9 such total pursuant to the provisions of Sections 
10 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 
11 408 of the Internal Revenue Code, or included in such 
12 total as distributions under the provisions of any 
13 retirement or disability plan for employees of any 
14 governmental agency or unit, or retirement payments to 
15 retired partners, which payments are excluded in 
16 computing net earnings from self employment by Section 
17 1402 of the Internal Revenue Code and regulations 
18 adopted pursuant thereto;
19   (G) The valuation limitation amount;
20   (H) An amount equal to the amount of any tax 
21 imposed by this Act which was refunded to the taxpayer 
22 and included in such total for the taxable year;
23   (I) An amount equal to all amounts included in 
24 such total pursuant to the provisions of Section 111 
25 of the Internal Revenue Code as a recovery of items 
26 previously deducted from adjusted gross income in the 
 
 
10300HB4951sam002- 27 -LRB103 38094 HLH 74177 a


1 computation of taxable income;
2   (J) An amount equal to those dividends included in 
3 such total which were paid by a corporation which 
4 conducts business operations in a River Edge 
5 Redevelopment Zone or zones created under the River 
6 Edge Redevelopment Zone Act, and conducts 
7 substantially all of its operations in a River Edge 
8 Redevelopment Zone or zones. This subparagraph (J) is 
9 exempt from the provisions of Section 250;
10   (K) An amount equal to those dividends included in 
11 such total that were paid by a corporation that 
12 conducts business operations in a federally designated 
13 Foreign Trade Zone or Sub-Zone and that is designated 
14 a High Impact Business located in Illinois; provided 
15 that dividends eligible for the deduction provided in 
16 subparagraph (J) of paragraph (2) of this subsection 
17 shall not be eligible for the deduction provided under 
18 this subparagraph (K);
19   (L) For taxable years ending after December 31, 
20 1983, an amount equal to all social security benefits 
21 and railroad retirement benefits included in such 
22 total pursuant to Sections 72(r) and 86 of the 
23 Internal Revenue Code;
24   (M) With the exception of any amounts subtracted 
25 under subparagraph (N), an amount equal to the sum of 
26 all amounts disallowed as deductions by (i) Sections 
 
 
10300HB4951sam002- 28 -LRB103 38094 HLH 74177 a


1 171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
2 and all amounts of expenses allocable to interest and 
3 disallowed as deductions by Section 265(a)(1) of the 
4 Internal Revenue Code; and (ii) for taxable years 
5 ending on or after August 13, 1999, Sections 
6 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
7 Internal Revenue Code, plus, for taxable years ending 
8 on or after December 31, 2011, Section 45G(e)(3) of 
9 the Internal Revenue Code and, for taxable years 
10 ending on or after December 31, 2008, any amount 
11 included in gross income under Section 87 of the 
12 Internal Revenue Code; the provisions of this 
13 subparagraph are exempt from the provisions of Section 
14 250;
15   (N) An amount equal to all amounts included in 
16 such total which are exempt from taxation by this 
17 State either by reason of its statutes or Constitution 
18 or by reason of the Constitution, treaties or statutes 
19 of the United States; provided that, in the case of any 
20 statute of this State that exempts income derived from 
21 bonds or other obligations from the tax imposed under 
22 this Act, the amount exempted shall be the interest 
23 net of bond premium amortization;
24   (O) An amount equal to any contribution made to a 
25 job training project established pursuant to the Tax 
26 Increment Allocation Redevelopment Act;
 
 
10300HB4951sam002- 29 -LRB103 38094 HLH 74177 a


1   (P) An amount equal to the amount of the deduction 
2 used to compute the federal income tax credit for 
3 restoration of substantial amounts held under claim of 
4 right for the taxable year pursuant to Section 1341 of 
5 the Internal Revenue Code or of any itemized deduction 
6 taken from adjusted gross income in the computation of 
7 taxable income for restoration of substantial amounts 
8 held under claim of right for the taxable year;
9   (Q) An amount equal to any amounts included in 
10 such total, received by the taxpayer as an 
11 acceleration in the payment of life, endowment or 
12 annuity benefits in advance of the time they would 
13 otherwise be payable as an indemnity for a terminal 
14 illness;
15   (R) An amount equal to the amount of any federal or 
16 State bonus paid to veterans of the Persian Gulf War;
17   (S) An amount, to the extent included in adjusted 
18 gross income, equal to the amount of a contribution 
19 made in the taxable year on behalf of the taxpayer to a 
20 medical care savings account established under the 
21 Medical Care Savings Account Act or the Medical Care 
22 Savings Account Act of 2000 to the extent the 
23 contribution is accepted by the account administrator 
24 as provided in that Act;
25   (T) An amount, to the extent included in adjusted 
26 gross income, equal to the amount of interest earned 
 
 
10300HB4951sam002- 30 -LRB103 38094 HLH 74177 a


1 in the taxable year on a medical care savings account 
2 established under the Medical Care Savings Account Act 
3 or the Medical Care Savings Account Act of 2000 on 
4 behalf of the taxpayer, other than interest added 
5 pursuant to item (D-5) of this paragraph (2);
6   (U) For one taxable year beginning on or after 
7 January 1, 1994, an amount equal to the total amount of 
8 tax imposed and paid under subsections (a) and (b) of 
9 Section 201 of this Act on grant amounts received by 
10 the taxpayer under the Nursing Home Grant Assistance 
11 Act during the taxpayer's taxable years 1992 and 1993;
12   (V) Beginning with tax years ending on or after 
13 December 31, 1995 and ending with tax years ending on 
14 or before December 31, 2004, an amount equal to the 
15 amount paid by a taxpayer who is a self-employed 
16 taxpayer, a partner of a partnership, or a shareholder 
17 in a Subchapter S corporation for health insurance or 
18 long-term care insurance for that taxpayer or that 
19 taxpayer's spouse or dependents, to the extent that 
20 the amount paid for that health insurance or long-term 
21 care insurance may be deducted under Section 213 of 
22 the Internal Revenue Code, has not been deducted on 
23 the federal income tax return of the taxpayer, and 
24 does not exceed the taxable income attributable to 
25 that taxpayer's income, self-employment income, or 
26 Subchapter S corporation income; except that no 
 
 
10300HB4951sam002- 31 -LRB103 38094 HLH 74177 a


1 deduction shall be allowed under this item (V) if the 
2 taxpayer is eligible to participate in any health 
3 insurance or long-term care insurance plan of an 
4 employer of the taxpayer or the taxpayer's spouse. The 
5 amount of the health insurance and long-term care 
6 insurance subtracted under this item (V) shall be 
7 determined by multiplying total health insurance and 
8 long-term care insurance premiums paid by the taxpayer 
9 times a number that represents the fractional 
10 percentage of eligible medical expenses under Section 
11 213 of the Internal Revenue Code of 1986 not actually 
12 deducted on the taxpayer's federal income tax return;
13   (W) For taxable years beginning on or after 
14 January 1, 1998, all amounts included in the 
15 taxpayer's federal gross income in the taxable year 
16 from amounts converted from a regular IRA to a Roth 
17 IRA. This paragraph is exempt from the provisions of 
18 Section 250;
19   (X) For taxable year 1999 and thereafter, an 
20 amount equal to the amount of any (i) distributions, 
21 to the extent includible in gross income for federal 
22 income tax purposes, made to the taxpayer because of 
23 his or her status as a victim of persecution for racial 
24 or religious reasons by Nazi Germany or any other Axis 
25 regime or as an heir of the victim and (ii) items of 
26 income, to the extent includible in gross income for 
 
 
10300HB4951sam002- 32 -LRB103 38094 HLH 74177 a


1 federal income tax purposes, attributable to, derived 
2 from or in any way related to assets stolen from, 
3 hidden from, or otherwise lost to a victim of 
4 persecution for racial or religious reasons by Nazi 
5 Germany or any other Axis regime immediately prior to, 
6 during, and immediately after World War II, including, 
7 but not limited to, interest on the proceeds 
8 receivable as insurance under policies issued to a 
9 victim of persecution for racial or religious reasons 
10 by Nazi Germany or any other Axis regime by European 
11 insurance companies immediately prior to and during 
12 World War II; provided, however, this subtraction from 
13 federal adjusted gross income does not apply to assets 
14 acquired with such assets or with the proceeds from 
15 the sale of such assets; provided, further, this 
16 paragraph shall only apply to a taxpayer who was the 
17 first recipient of such assets after their recovery 
18 and who is a victim of persecution for racial or 
19 religious reasons by Nazi Germany or any other Axis 
20 regime or as an heir of the victim. The amount of and 
21 the eligibility for any public assistance, benefit, or 
22 similar entitlement is not affected by the inclusion 
23 of items (i) and (ii) of this paragraph in gross income 
24 for federal income tax purposes. This paragraph is 
25 exempt from the provisions of Section 250;
26   (Y) For taxable years beginning on or after 
 
 
10300HB4951sam002- 33 -LRB103 38094 HLH 74177 a


1 January 1, 2002 and ending on or before December 31, 
2 2004, moneys contributed in the taxable year to a 
3 College Savings Pool account under Section 16.5 of the 
4 State Treasurer Act, except that amounts excluded from 
5 gross income under Section 529(c)(3)(C)(i) of the 
6 Internal Revenue Code shall not be considered moneys 
7 contributed under this subparagraph (Y). For taxable 
8 years beginning on or after January 1, 2005, a maximum 
9 of $10,000 contributed in the taxable year to (i) a 
10 College Savings Pool account under Section 16.5 of the 
11 State Treasurer Act or (ii) the Illinois Prepaid 
12 Tuition Trust Fund, except that amounts excluded from 
13 gross income under Section 529(c)(3)(C)(i) of the 
14 Internal Revenue Code shall not be considered moneys 
15 contributed under this subparagraph (Y). For purposes 
16 of this subparagraph, contributions made by an 
17 employer on behalf of an employee, or matching 
18 contributions made by an employee, shall be treated as 
19 made by the employee. This subparagraph (Y) is exempt 
20 from the provisions of Section 250;
21   (Z) For taxable years 2001 and thereafter, for the 
22 taxable year in which the bonus depreciation deduction 
23 is taken on the taxpayer's federal income tax return 
24 under subsection (k) of Section 168 of the Internal 
25 Revenue Code and for each applicable taxable year 
26 thereafter, an amount equal to "x", where:
 
 
10300HB4951sam002- 34 -LRB103 38094 HLH 74177 a


1    (1) "y" equals the amount of the depreciation 
2 deduction taken for the taxable year on the 
3 taxpayer's federal income tax return on property 
4 for which the bonus depreciation deduction was 
5 taken in any year under subsection (k) of Section 
6 168 of the Internal Revenue Code, but not 
7 including the bonus depreciation deduction;
8    (2) for taxable years ending on or before 
9 December 31, 2005, "x" equals "y" multiplied by 30 
10 and then divided by 70 (or "y" multiplied by 
11 0.429); and
12    (3) for taxable years ending after December 
13 31, 2005:
14     (i) for property on which a bonus 
15 depreciation deduction of 30% of the adjusted 
16 basis was taken, "x" equals "y" multiplied by 
17 30 and then divided by 70 (or "y" multiplied 
18 by 0.429);
19     (ii) for property on which a bonus 
20 depreciation deduction of 50% of the adjusted 
21 basis was taken, "x" equals "y" multiplied by 
22 1.0;
23     (iii) for property on which a bonus 
24 depreciation deduction of 100% of the adjusted 
25 basis was taken in a taxable year ending on or 
26 after December 31, 2021, "x" equals the 
 
 
10300HB4951sam002- 35 -LRB103 38094 HLH 74177 a


1 depreciation deduction that would be allowed 
2 on that property if the taxpayer had made the 
3 election under Section 168(k)(7) of the 
4 Internal Revenue Code to not claim bonus 
5 depreciation on that property; and
6     (iv) for property on which a bonus 
7 depreciation deduction of a percentage other 
8 than 30%, 50% or 100% of the adjusted basis 
9 was taken in a taxable year ending on or after 
10 December 31, 2021, "x" equals "y" multiplied 
11 by 100 times the percentage bonus depreciation 
12 on the property (that is, 100(bonus%)) and 
13 then divided by 100 times 1 minus the 
14 percentage bonus depreciation on the property 
15 (that is, 100(1-bonus%)). 
16   The aggregate amount deducted under this 
17 subparagraph in all taxable years for any one piece of 
18 property may not exceed the amount of the bonus 
19 depreciation deduction taken on that property on the 
20 taxpayer's federal income tax return under subsection 
21 (k) of Section 168 of the Internal Revenue Code. This 
22 subparagraph (Z) is exempt from the provisions of 
23 Section 250;
24   (AA) If the taxpayer sells, transfers, abandons, 
25 or otherwise disposes of property for which the 
26 taxpayer was required in any taxable year to make an 
 
 
10300HB4951sam002- 36 -LRB103 38094 HLH 74177 a


1 addition modification under subparagraph (D-15), then 
2 an amount equal to that addition modification. 
3   If the taxpayer continues to own property through 
4 the last day of the last tax year for which a 
5 subtraction is allowed with respect to that property 
6 under subparagraph (Z) and for which the taxpayer was 
7 required in any taxable year to make an addition 
8 modification under subparagraph (D-15), then an amount 
9 equal to that addition modification. 
10   The taxpayer is allowed to take the deduction 
11 under this subparagraph only once with respect to any 
12 one piece of property.
13   This subparagraph (AA) is exempt from the 
14 provisions of Section 250;
15   (BB) Any amount included in adjusted gross income, 
16 other than salary, received by a driver in a 
17 ridesharing arrangement using a motor vehicle;
18   (CC) The amount of (i) any interest income (net of 
19 the deductions allocable thereto) taken into account 
20 for the taxable year with respect to a transaction 
21 with a taxpayer that is required to make an addition 
22 modification with respect to such transaction under 
23 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
24 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
25 the amount of that addition modification, and (ii) any 
26 income from intangible property (net of the deductions 
 
 
10300HB4951sam002- 37 -LRB103 38094 HLH 74177 a


1 allocable thereto) taken into account for the taxable 
2 year with respect to a transaction with a taxpayer 
3 that is required to make an addition modification with 
4 respect to such transaction under Section 
5 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
6 203(d)(2)(D-8), but not to exceed the amount of that 
7 addition modification. This subparagraph (CC) is 
8 exempt from the provisions of Section 250;
9   (DD) An amount equal to the interest income taken 
10 into account for the taxable year (net of the 
11 deductions allocable thereto) with respect to 
12 transactions with (i) a foreign person who would be a 
13 member of the taxpayer's unitary business group but 
14 for the fact that the foreign person's business 
15 activity outside the United States is 80% or more of 
16 that person's total business activity and (ii) for 
17 taxable years ending on or after December 31, 2008, to 
18 a person who would be a member of the same unitary 
19 business group but for the fact that the person is 
20 prohibited under Section 1501(a)(27) from being 
21 included in the unitary business group because he or 
22 she is ordinarily required to apportion business 
23 income under different subsections of Section 304, but 
24 not to exceed the addition modification required to be 
25 made for the same taxable year under Section 
26 203(a)(2)(D-17) for interest paid, accrued, or 
 
 
10300HB4951sam002- 38 -LRB103 38094 HLH 74177 a


1 incurred, directly or indirectly, to the same person. 
2 This subparagraph (DD) is exempt from the provisions 
3 of Section 250; 
4   (EE) An amount equal to the income from intangible 
5 property taken into account for the taxable year (net 
6 of the deductions allocable thereto) with respect to 
7 transactions with (i) a foreign person who would be a 
8 member of the taxpayer's unitary business group but 
9 for the fact that the foreign person's business 
10 activity outside the United States is 80% or more of 
11 that person's total business activity and (ii) for 
12 taxable years ending on or after December 31, 2008, to 
13 a person who would be a member of the same unitary 
14 business group but for the fact that the person is 
15 prohibited under Section 1501(a)(27) from being 
16 included in the unitary business group because he or 
17 she is ordinarily required to apportion business 
18 income under different subsections of Section 304, but 
19 not to exceed the addition modification required to be 
20 made for the same taxable year under Section 
21 203(a)(2)(D-18) for intangible expenses and costs 
22 paid, accrued, or incurred, directly or indirectly, to 
23 the same foreign person. This subparagraph (EE) is 
24 exempt from the provisions of Section 250;
25   (FF) An amount equal to any amount awarded to the 
26 taxpayer during the taxable year by the Court of 
 
 
10300HB4951sam002- 39 -LRB103 38094 HLH 74177 a


1 Claims under subsection (c) of Section 8 of the Court 
2 of Claims Act for time unjustly served in a State 
3 prison. This subparagraph (FF) is exempt from the 
4 provisions of Section 250; 
5   (GG) For taxable years ending on or after December 
6 31, 2011, in the case of a taxpayer who was required to 
7 add back any insurance premiums under Section 
8 203(a)(2)(D-19), such taxpayer may elect to subtract 
9 that part of a reimbursement received from the 
10 insurance company equal to the amount of the expense 
11 or loss (including expenses incurred by the insurance 
12 company) that would have been taken into account as a 
13 deduction for federal income tax purposes if the 
14 expense or loss had been uninsured. If a taxpayer 
15 makes the election provided for by this subparagraph 
16 (GG), the insurer to which the premiums were paid must 
17 add back to income the amount subtracted by the 
18 taxpayer pursuant to this subparagraph (GG). This 
19 subparagraph (GG) is exempt from the provisions of 
20 Section 250; 
21   (HH) For taxable years beginning on or after 
22 January 1, 2018 and prior to January 1, 2028, a maximum 
23 of $10,000 contributed in the taxable year to a 
24 qualified ABLE account under Section 16.6 of the State 
25 Treasurer Act, except that amounts excluded from gross 
26 income under Section 529(c)(3)(C)(i) or Section 
 
 
10300HB4951sam002- 40 -LRB103 38094 HLH 74177 a


1 529A(c)(1)(C) of the Internal Revenue Code shall not 
2 be considered moneys contributed under this 
3 subparagraph (HH). For purposes of this subparagraph 
4 (HH), contributions made by an employer on behalf of 
5 an employee, or matching contributions made by an 
6 employee, shall be treated as made by the employee; 
7   (II) For taxable years that begin on or after 
8 January 1, 2021 and begin before January 1, 2026, the 
9 amount that is included in the taxpayer's federal 
10 adjusted gross income pursuant to Section 61 of the 
11 Internal Revenue Code as discharge of indebtedness 
12 attributable to student loan forgiveness and that is 
13 not excluded from the taxpayer's federal adjusted 
14 gross income pursuant to paragraph (5) of subsection 
15 (f) of Section 108 of the Internal Revenue Code; and 
16   (JJ) For taxable years beginning on or after 
17 January 1, 2023, for any cannabis establishment 
18 operating in this State and licensed under the 
19 Cannabis Regulation and Tax Act or any cannabis 
20 cultivation center or medical cannabis dispensing 
21 organization operating in this State and licensed 
22 under the Compassionate Use of Medical Cannabis 
23 Program Act, an amount equal to the deductions that 
24 were disallowed under Section 280E of the Internal 
25 Revenue Code for the taxable year and that would not be 
26 added back under this subsection. The provisions of 
 
 
10300HB4951sam002- 41 -LRB103 38094 HLH 74177 a


1 this subparagraph (JJ) are exempt from the provisions 
2 of Section 250; . 
3   (KK) (JJ) To the extent includible in gross income 
4 for federal income tax purposes, any amount awarded or 
5 paid to the taxpayer as a result of a judgment or 
6 settlement for fertility fraud as provided in Section 
7 15 of the Illinois Fertility Fraud Act, donor 
8 fertility fraud as provided in Section 20 of the 
9 Illinois Fertility Fraud Act, or similar action in 
10 another state; and . 
11   (LL) For taxable years beginning on or after 
12 January 1, 2026, if the taxpayer is a qualified 
13 worker, as defined in the Workforce Development 
14 through Charitable Loan Repayment Act, an amount equal 
15 to the amount included in the taxpayer's federal 
16 adjusted gross income that is attributable to student 
17 loan repayment assistance received by the taxpayer 
18 during the taxable year from a qualified community 
19 foundation under the provisions of the Workforce 
20 Development Through Charitable Loan Repayment Act. 
21   This subparagraph (LL) is exempt from the 
22 provisions of Section 250. 

23 (b) Corporations.
24  (1) In general. In the case of a corporation, base 
25 income means an amount equal to the taxpayer's taxable 
 
 
10300HB4951sam002- 42 -LRB103 38094 HLH 74177 a


1 income for the taxable year as modified by paragraph (2).
2  (2) Modifications. The taxable income referred to in 
3 paragraph (1) shall be modified by adding thereto the sum 
4 of the following amounts:
5   (A) An amount equal to all amounts paid or accrued 
6 to the taxpayer as interest and all distributions 
7 received from regulated investment companies during 
8 the taxable year to the extent excluded from gross 
9 income in the computation of taxable income;
10   (B) An amount equal to the amount of tax imposed by 
11 this Act to the extent deducted from gross income in 
12 the computation of taxable income for the taxable 
13 year;
14   (C) In the case of a regulated investment company, 
15 an amount equal to the excess of (i) the net long-term 
16 capital gain for the taxable year, over (ii) the 
17 amount of the capital gain dividends designated as 
18 such in accordance with Section 852(b)(3)(C) of the 
19 Internal Revenue Code and any amount designated under 
20 Section 852(b)(3)(D) of the Internal Revenue Code, 
21 attributable to the taxable year (this amendatory Act 
22 of 1995 (Public Act 89-89) is declarative of existing 
23 law and is not a new enactment);
24   (D) The amount of any net operating loss deduction 
25 taken in arriving at taxable income, other than a net 
26 operating loss carried forward from a taxable year 
 
 
10300HB4951sam002- 43 -LRB103 38094 HLH 74177 a


1 ending prior to December 31, 1986;
2   (E) For taxable years in which a net operating 
3 loss carryback or carryforward from a taxable year 
4 ending prior to December 31, 1986 is an element of 
5 taxable income under paragraph (1) of subsection (e) 
6 or subparagraph (E) of paragraph (2) of subsection 
7 (e), the amount by which addition modifications other 
8 than those provided by this subparagraph (E) exceeded 
9 subtraction modifications in such earlier taxable 
10 year, with the following limitations applied in the 
11 order that they are listed:
12    (i) the addition modification relating to the 
13 net operating loss carried back or forward to the 
14 taxable year from any taxable year ending prior to 
15 December 31, 1986 shall be reduced by the amount 
16 of addition modification under this subparagraph 
17 (E) which related to that net operating loss and 
18 which was taken into account in calculating the 
19 base income of an earlier taxable year, and
20    (ii) the addition modification relating to the 
21 net operating loss carried back or forward to the 
22 taxable year from any taxable year ending prior to 
23 December 31, 1986 shall not exceed the amount of 
24 such carryback or carryforward;
25   For taxable years in which there is a net 
26 operating loss carryback or carryforward from more 
 
 
10300HB4951sam002- 44 -LRB103 38094 HLH 74177 a


1 than one other taxable year ending prior to December 
2 31, 1986, the addition modification provided in this 
3 subparagraph (E) shall be the sum of the amounts 
4 computed independently under the preceding provisions 
5 of this subparagraph (E) for each such taxable year;
6   (E-5) For taxable years ending after December 31, 
7 1997, an amount equal to any eligible remediation 
8 costs that the corporation deducted in computing 
9 adjusted gross income and for which the corporation 
10 claims a credit under subsection (l) of Section 201;
11   (E-10) For taxable years 2001 and thereafter, an 
12 amount equal to the bonus depreciation deduction taken 
13 on the taxpayer's federal income tax return for the 
14 taxable year under subsection (k) of Section 168 of 
15 the Internal Revenue Code;
16   (E-11) If the taxpayer sells, transfers, abandons, 
17 or otherwise disposes of property for which the 
18 taxpayer was required in any taxable year to make an 
19 addition modification under subparagraph (E-10), then 
20 an amount equal to the aggregate amount of the 
21 deductions taken in all taxable years under 
22 subparagraph (T) with respect to that property.
23   If the taxpayer continues to own property through 
24 the last day of the last tax year for which a 
25 subtraction is allowed with respect to that property 
26 under subparagraph (T) and for which the taxpayer was 
 
 
10300HB4951sam002- 45 -LRB103 38094 HLH 74177 a


1 allowed in any taxable year to make a subtraction 
2 modification under subparagraph (T), then an amount 
3 equal to that subtraction modification. 
4   The taxpayer is required to make the addition 
5 modification under this subparagraph only once with 
6 respect to any one piece of property;
7   (E-12) An amount equal to the amount otherwise 
8 allowed as a deduction in computing base income for 
9 interest paid, accrued, or incurred, directly or 
10 indirectly, (i) for taxable years ending on or after 
11 December 31, 2004, to a foreign person who would be a 
12 member of the same unitary business group but for the 
13 fact the foreign person's business activity outside 
14 the United States is 80% or more of the foreign 
15 person's total business activity and (ii) for taxable 
16 years ending on or after December 31, 2008, to a person 
17 who would be a member of the same unitary business 
18 group but for the fact that the person is prohibited 
19 under Section 1501(a)(27) from being included in the 
20 unitary business group because he or she is ordinarily 
21 required to apportion business income under different 
22 subsections of Section 304. The addition modification 
23 required by this subparagraph shall be reduced to the 
24 extent that dividends were included in base income of 
25 the unitary group for the same taxable year and 
26 received by the taxpayer or by a member of the 
 
 
10300HB4951sam002- 46 -LRB103 38094 HLH 74177 a


1 taxpayer's unitary business group (including amounts 
2 included in gross income pursuant to Sections 951 
3 through 964 of the Internal Revenue Code and amounts 
4 included in gross income under Section 78 of the 
5 Internal Revenue Code) with respect to the stock of 
6 the same person to whom the interest was paid, 
7 accrued, or incurred. 
8   This paragraph shall not apply to the following: 
9    (i) an item of interest paid, accrued, or 
10 incurred, directly or indirectly, to a person who 
11 is subject in a foreign country or state, other 
12 than a state which requires mandatory unitary 
13 reporting, to a tax on or measured by net income 
14 with respect to such interest; or
15    (ii) an item of interest paid, accrued, or 
16 incurred, directly or indirectly, to a person if 
17 the taxpayer can establish, based on a 
18 preponderance of the evidence, both of the 
19 following:
20     (a) the person, during the same taxable 
21 year, paid, accrued, or incurred, the interest 
22 to a person that is not a related member, and
23     (b) the transaction giving rise to the 
24 interest expense between the taxpayer and the 
25 person did not have as a principal purpose the 
26 avoidance of Illinois income tax, and is paid 
 
 
10300HB4951sam002- 47 -LRB103 38094 HLH 74177 a


1 pursuant to a contract or agreement that 
2 reflects an arm's-length interest rate and 
3 terms; or 
4    (iii) the taxpayer can establish, based on 
5 clear and convincing evidence, that the interest 
6 paid, accrued, or incurred relates to a contract 
7 or agreement entered into at arm's-length rates 
8 and terms and the principal purpose for the 
9 payment is not federal or Illinois tax avoidance; 
10 or 
11    (iv) an item of interest paid, accrued, or 
12 incurred, directly or indirectly, to a person if 
13 the taxpayer establishes by clear and convincing 
14 evidence that the adjustments are unreasonable; or 
15 if the taxpayer and the Director agree in writing 
16 to the application or use of an alternative method 
17 of apportionment under Section 304(f). 
18    Nothing in this subsection shall preclude the 
19 Director from making any other adjustment 
20 otherwise allowed under Section 404 of this Act 
21 for any tax year beginning after the effective 
22 date of this amendment provided such adjustment is 
23 made pursuant to regulation adopted by the 
24 Department and such regulations provide methods 
25 and standards by which the Department will utilize 
26 its authority under Section 404 of this Act; 
 
 
10300HB4951sam002- 48 -LRB103 38094 HLH 74177 a


1   (E-13) An amount equal to the amount of intangible 
2 expenses and costs otherwise allowed as a deduction in 
3 computing base income, and that were paid, accrued, or 
4 incurred, directly or indirectly, (i) for taxable 
5 years ending on or after December 31, 2004, to a 
6 foreign person who would be a member of the same 
7 unitary business group but for the fact that the 
8 foreign person's business activity outside the United 
9 States is 80% or more of that person's total business 
10 activity and (ii) for taxable years ending on or after 
11 December 31, 2008, to a person who would be a member of 
12 the same unitary business group but for the fact that 
13 the person is prohibited under Section 1501(a)(27) 
14 from being included in the unitary business group 
15 because he or she is ordinarily required to apportion 
16 business income under different subsections of Section 
17 304. The addition modification required by this 
18 subparagraph shall be reduced to the extent that 
19 dividends were included in base income of the unitary 
20 group for the same taxable year and received by the 
21 taxpayer or by a member of the taxpayer's unitary 
22 business group (including amounts included in gross 
23 income pursuant to Sections 951 through 964 of the 
24 Internal Revenue Code and amounts included in gross 
25 income under Section 78 of the Internal Revenue Code) 
26 with respect to the stock of the same person to whom 
 
 
10300HB4951sam002- 49 -LRB103 38094 HLH 74177 a


1 the intangible expenses and costs were directly or 
2 indirectly paid, incurred, or accrued. The preceding 
3 sentence shall not apply to the extent that the same 
4 dividends caused a reduction to the addition 
5 modification required under Section 203(b)(2)(E-12) of 
6 this Act. As used in this subparagraph, the term 
7 "intangible expenses and costs" includes (1) expenses, 
8 losses, and costs for, or related to, the direct or 
9 indirect acquisition, use, maintenance or management, 
10 ownership, sale, exchange, or any other disposition of 
11 intangible property; (2) losses incurred, directly or 
12 indirectly, from factoring transactions or discounting 
13 transactions; (3) royalty, patent, technical, and 
14 copyright fees; (4) licensing fees; and (5) other 
15 similar expenses and costs. For purposes of this 
16 subparagraph, "intangible property" includes patents, 
17 patent applications, trade names, trademarks, service 
18 marks, copyrights, mask works, trade secrets, and 
19 similar types of intangible assets.
20   This paragraph shall not apply to the following:
21    (i) any item of intangible expenses or costs 
22 paid, accrued, or incurred, directly or 
23 indirectly, from a transaction with a person who 
24 is subject in a foreign country or state, other 
25 than a state which requires mandatory unitary 
26 reporting, to a tax on or measured by net income 
 
 
10300HB4951sam002- 50 -LRB103 38094 HLH 74177 a


1 with respect to such item; or
2    (ii) any item of intangible expense or cost 
3 paid, accrued, or incurred, directly or 
4 indirectly, if the taxpayer can establish, based 
5 on a preponderance of the evidence, both of the 
6 following:
7     (a) the person during the same taxable 
8 year paid, accrued, or incurred, the 
9 intangible expense or cost to a person that is 
10 not a related member, and
11     (b) the transaction giving rise to the 
12 intangible expense or cost between the 
13 taxpayer and the person did not have as a 
14 principal purpose the avoidance of Illinois 
15 income tax, and is paid pursuant to a contract 
16 or agreement that reflects arm's-length terms; 
17 or
18    (iii) any item of intangible expense or cost 
19 paid, accrued, or incurred, directly or 
20 indirectly, from a transaction with a person if 
21 the taxpayer establishes by clear and convincing 
22 evidence, that the adjustments are unreasonable; 
23 or if the taxpayer and the Director agree in 
24 writing to the application or use of an 
25 alternative method of apportionment under Section 
26 304(f); 
 
 
10300HB4951sam002- 51 -LRB103 38094 HLH 74177 a


1    Nothing in this subsection shall preclude the 
2 Director from making any other adjustment 
3 otherwise allowed under Section 404 of this Act 
4 for any tax year beginning after the effective 
5 date of this amendment provided such adjustment is 
6 made pursuant to regulation adopted by the 
7 Department and such regulations provide methods 
8 and standards by which the Department will utilize 
9 its authority under Section 404 of this Act; 
10   (E-14) For taxable years ending on or after 
11 December 31, 2008, an amount equal to the amount of 
12 insurance premium expenses and costs otherwise allowed 
13 as a deduction in computing base income, and that were 
14 paid, accrued, or incurred, directly or indirectly, to 
15 a person who would be a member of the same unitary 
16 business group but for the fact that the person is 
17 prohibited under Section 1501(a)(27) from being 
18 included in the unitary business group because he or 
19 she is ordinarily required to apportion business 
20 income under different subsections of Section 304. The 
21 addition modification required by this subparagraph 
22 shall be reduced to the extent that dividends were 
23 included in base income of the unitary group for the 
24 same taxable year and received by the taxpayer or by a 
25 member of the taxpayer's unitary business group 
26 (including amounts included in gross income under 
 
 
10300HB4951sam002- 52 -LRB103 38094 HLH 74177 a


1 Sections 951 through 964 of the Internal Revenue Code 
2 and amounts included in gross income under Section 78 
3 of the Internal Revenue Code) with respect to the 
4 stock of the same person to whom the premiums and costs 
5 were directly or indirectly paid, incurred, or 
6 accrued. The preceding sentence does not apply to the 
7 extent that the same dividends caused a reduction to 
8 the addition modification required under Section 
9 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this 
10 Act; 
11   (E-15) For taxable years beginning after December 
12 31, 2008, any deduction for dividends paid by a 
13 captive real estate investment trust that is allowed 
14 to a real estate investment trust under Section 
15 857(b)(2)(B) of the Internal Revenue Code for 
16 dividends paid;
17   (E-16) An amount equal to the credit allowable to 
18 the taxpayer under Section 218(a) of this Act, 
19 determined without regard to Section 218(c) of this 
20 Act;
21   (E-17) For taxable years ending on or after 
22 December 31, 2017, an amount equal to the deduction 
23 allowed under Section 199 of the Internal Revenue Code 
24 for the taxable year; 
25   (E-18) for taxable years beginning after December 
26 31, 2018, an amount equal to the deduction allowed 
 
 
10300HB4951sam002- 53 -LRB103 38094 HLH 74177 a


1 under Section 250(a)(1)(A) of the Internal Revenue 
2 Code for the taxable year; 
3   (E-19) for taxable years ending on or after June 
4 30, 2021, an amount equal to the deduction allowed 
5 under Section 250(a)(1)(B)(i) of the Internal Revenue 
6 Code for the taxable year; 
7   (E-20) for taxable years ending on or after June 
8 30, 2021, an amount equal to the deduction allowed 
9 under Sections 243(e) and 245A(a) of the Internal 
10 Revenue Code for the taxable year. 
11 and by deducting from the total so obtained the sum of the 
12 following amounts:
13   (F) An amount equal to the amount of any tax 
14 imposed by this Act which was refunded to the taxpayer 
15 and included in such total for the taxable year;
16   (G) An amount equal to any amount included in such 
17 total under Section 78 of the Internal Revenue Code;
18   (H) In the case of a regulated investment company, 
19 an amount equal to the amount of exempt interest 
20 dividends as defined in subsection (b)(5) of Section 
21 852 of the Internal Revenue Code, paid to shareholders 
22 for the taxable year;
23   (I) With the exception of any amounts subtracted 
24 under subparagraph (J), an amount equal to the sum of 
25 all amounts disallowed as deductions by (i) Sections 
26 171(a)(2) and 265(a)(2) and amounts disallowed as 
 
 
10300HB4951sam002- 54 -LRB103 38094 HLH 74177 a


1 interest expense by Section 291(a)(3) of the Internal 
2 Revenue Code, and all amounts of expenses allocable to 
3 interest and disallowed as deductions by Section 
4 265(a)(1) of the Internal Revenue Code; and (ii) for 
5 taxable years ending on or after August 13, 1999, 
6 Sections 171(a)(2), 265, 280C, 291(a)(3), and 
7 832(b)(5)(B)(i) of the Internal Revenue Code, plus, 
8 for tax years ending on or after December 31, 2011, 
9 amounts disallowed as deductions by Section 45G(e)(3) 
10 of the Internal Revenue Code and, for taxable years 
11 ending on or after December 31, 2008, any amount 
12 included in gross income under Section 87 of the 
13 Internal Revenue Code and the policyholders' share of 
14 tax-exempt interest of a life insurance company under 
15 Section 807(a)(2)(B) of the Internal Revenue Code (in 
16 the case of a life insurance company with gross income 
17 from a decrease in reserves for the tax year) or 
18 Section 807(b)(1)(B) of the Internal Revenue Code (in 
19 the case of a life insurance company allowed a 
20 deduction for an increase in reserves for the tax 
21 year); the provisions of this subparagraph are exempt 
22 from the provisions of Section 250;
23   (J) An amount equal to all amounts included in 
24 such total which are exempt from taxation by this 
25 State either by reason of its statutes or Constitution 
26 or by reason of the Constitution, treaties or statutes 
 
 
10300HB4951sam002- 55 -LRB103 38094 HLH 74177 a


1 of the United States; provided that, in the case of any 
2 statute of this State that exempts income derived from 
3 bonds or other obligations from the tax imposed under 
4 this Act, the amount exempted shall be the interest 
5 net of bond premium amortization;
6   (K) An amount equal to those dividends included in 
7 such total which were paid by a corporation which 
8 conducts business operations in a River Edge 
9 Redevelopment Zone or zones created under the River 
10 Edge Redevelopment Zone Act and conducts substantially 
11 all of its operations in a River Edge Redevelopment 
12 Zone or zones. This subparagraph (K) is exempt from 
13 the provisions of Section 250;
14   (L) An amount equal to those dividends included in 
15 such total that were paid by a corporation that 
16 conducts business operations in a federally designated 
17 Foreign Trade Zone or Sub-Zone and that is designated 
18 a High Impact Business located in Illinois; provided 
19 that dividends eligible for the deduction provided in 
20 subparagraph (K) of paragraph 2 of this subsection 
21 shall not be eligible for the deduction provided under 
22 this subparagraph (L);
23   (M) For any taxpayer that is a financial 
24 organization within the meaning of Section 304(c) of 
25 this Act, an amount included in such total as interest 
26 income from a loan or loans made by such taxpayer to a 
 
 
10300HB4951sam002- 56 -LRB103 38094 HLH 74177 a


1 borrower, to the extent that such a loan is secured by 
2 property which is eligible for the River Edge 
3 Redevelopment Zone Investment Credit. To determine the 
4 portion of a loan or loans that is secured by property 
5 eligible for a Section 201(f) investment credit to the 
6 borrower, the entire principal amount of the loan or 
7 loans between the taxpayer and the borrower should be 
8 divided into the basis of the Section 201(f) 
9 investment credit property which secures the loan or 
10 loans, using for this purpose the original basis of 
11 such property on the date that it was placed in service 
12 in the River Edge Redevelopment Zone. The subtraction 
13 modification available to the taxpayer in any year 
14 under this subsection shall be that portion of the 
15 total interest paid by the borrower with respect to 
16 such loan attributable to the eligible property as 
17 calculated under the previous sentence. This 
18 subparagraph (M) is exempt from the provisions of 
19 Section 250;
20   (M-1) For any taxpayer that is a financial 
21 organization within the meaning of Section 304(c) of 
22 this Act, an amount included in such total as interest 
23 income from a loan or loans made by such taxpayer to a 
24 borrower, to the extent that such a loan is secured by 
25 property which is eligible for the High Impact 
26 Business Investment Credit. To determine the portion 
 
 
10300HB4951sam002- 57 -LRB103 38094 HLH 74177 a


1 of a loan or loans that is secured by property eligible 
2 for a Section 201(h) investment credit to the 
3 borrower, the entire principal amount of the loan or 
4 loans between the taxpayer and the borrower should be 
5 divided into the basis of the Section 201(h) 
6 investment credit property which secures the loan or 
7 loans, using for this purpose the original basis of 
8 such property on the date that it was placed in service 
9 in a federally designated Foreign Trade Zone or 
10 Sub-Zone located in Illinois. No taxpayer that is 
11 eligible for the deduction provided in subparagraph 
12 (M) of paragraph (2) of this subsection shall be 
13 eligible for the deduction provided under this 
14 subparagraph (M-1). The subtraction modification 
15 available to taxpayers in any year under this 
16 subsection shall be that portion of the total interest 
17 paid by the borrower with respect to such loan 
18 attributable to the eligible property as calculated 
19 under the previous sentence;
20   (N) Two times any contribution made during the 
21 taxable year to a designated zone organization to the 
22 extent that the contribution (i) qualifies as a 
23 charitable contribution under subsection (c) of 
24 Section 170 of the Internal Revenue Code and (ii) 
25 must, by its terms, be used for a project approved by 
26 the Department of Commerce and Economic Opportunity 
 
 
10300HB4951sam002- 58 -LRB103 38094 HLH 74177 a


1 under Section 11 of the Illinois Enterprise Zone Act 
2 or under Section 10-10 of the River Edge Redevelopment 
3 Zone Act. This subparagraph (N) is exempt from the 
4 provisions of Section 250;
5   (O) An amount equal to: (i) 85% for taxable years 
6 ending on or before December 31, 1992, or, a 
7 percentage equal to the percentage allowable under 
8 Section 243(a)(1) of the Internal Revenue Code of 1986 
9 for taxable years ending after December 31, 1992, of 
10 the amount by which dividends included in taxable 
11 income and received from a corporation that is not 
12 created or organized under the laws of the United 
13 States or any state or political subdivision thereof, 
14 including, for taxable years ending on or after 
15 December 31, 1988, dividends received or deemed 
16 received or paid or deemed paid under Sections 951 
17 through 965 of the Internal Revenue Code, exceed the 
18 amount of the modification provided under subparagraph 
19 (G) of paragraph (2) of this subsection (b) which is 
20 related to such dividends, and including, for taxable 
21 years ending on or after December 31, 2008, dividends 
22 received from a captive real estate investment trust; 
23 plus (ii) 100% of the amount by which dividends, 
24 included in taxable income and received, including, 
25 for taxable years ending on or after December 31, 
26 1988, dividends received or deemed received or paid or 
 
 
10300HB4951sam002- 59 -LRB103 38094 HLH 74177 a


1 deemed paid under Sections 951 through 964 of the 
2 Internal Revenue Code and including, for taxable years 
3 ending on or after December 31, 2008, dividends 
4 received from a captive real estate investment trust, 
5 from any such corporation specified in clause (i) that 
6 would but for the provisions of Section 1504(b)(3) of 
7 the Internal Revenue Code be treated as a member of the 
8 affiliated group which includes the dividend 
9 recipient, exceed the amount of the modification 
10 provided under subparagraph (G) of paragraph (2) of 
11 this subsection (b) which is related to such 
12 dividends. For taxable years ending on or after June 
13 30, 2021, (i) for purposes of this subparagraph, the 
14 term "dividend" does not include any amount treated as 
15 a dividend under Section 1248 of the Internal Revenue 
16 Code, and (ii) this subparagraph shall not apply to 
17 dividends for which a deduction is allowed under 
18 Section 245(a) of the Internal Revenue Code. This 
19 subparagraph (O) is exempt from the provisions of 
20 Section 250 of this Act;
21   (P) An amount equal to any contribution made to a 
22 job training project established pursuant to the Tax 
23 Increment Allocation Redevelopment Act;
24   (Q) An amount equal to the amount of the deduction 
25 used to compute the federal income tax credit for 
26 restoration of substantial amounts held under claim of 
 
 
10300HB4951sam002- 60 -LRB103 38094 HLH 74177 a


1 right for the taxable year pursuant to Section 1341 of 
2 the Internal Revenue Code;
3   (R) On and after July 20, 1999, in the case of an 
4 attorney-in-fact with respect to whom an interinsurer 
5 or a reciprocal insurer has made the election under 
6 Section 835 of the Internal Revenue Code, 26 U.S.C. 
7 835, an amount equal to the excess, if any, of the 
8 amounts paid or incurred by that interinsurer or 
9 reciprocal insurer in the taxable year to the 
10 attorney-in-fact over the deduction allowed to that 
11 interinsurer or reciprocal insurer with respect to the 
12 attorney-in-fact under Section 835(b) of the Internal 
13 Revenue Code for the taxable year; the provisions of 
14 this subparagraph are exempt from the provisions of 
15 Section 250;
16   (S) For taxable years ending on or after December 
17 31, 1997, in the case of a Subchapter S corporation, an 
18 amount equal to all amounts of income allocable to a 
19 shareholder subject to the Personal Property Tax 
20 Replacement Income Tax imposed by subsections (c) and 
21 (d) of Section 201 of this Act, including amounts 
22 allocable to organizations exempt from federal income 
23 tax by reason of Section 501(a) of the Internal 
24 Revenue Code. This subparagraph (S) is exempt from the 
25 provisions of Section 250;
26   (T) For taxable years 2001 and thereafter, for the 
 
 
10300HB4951sam002- 61 -LRB103 38094 HLH 74177 a


1 taxable year in which the bonus depreciation deduction 
2 is taken on the taxpayer's federal income tax return 
3 under subsection (k) of Section 168 of the Internal 
4 Revenue Code and for each applicable taxable year 
5 thereafter, an amount equal to "x", where:
6    (1) "y" equals the amount of the depreciation 
7 deduction taken for the taxable year on the 
8 taxpayer's federal income tax return on property 
9 for which the bonus depreciation deduction was 
10 taken in any year under subsection (k) of Section 
11 168 of the Internal Revenue Code, but not 
12 including the bonus depreciation deduction;
13    (2) for taxable years ending on or before 
14 December 31, 2005, "x" equals "y" multiplied by 30 
15 and then divided by 70 (or "y" multiplied by 
16 0.429); and
17    (3) for taxable years ending after December 
18 31, 2005:
19     (i) for property on which a bonus 
20 depreciation deduction of 30% of the adjusted 
21 basis was taken, "x" equals "y" multiplied by 
22 30 and then divided by 70 (or "y" multiplied 
23 by 0.429);
24     (ii) for property on which a bonus 
25 depreciation deduction of 50% of the adjusted 
26 basis was taken, "x" equals "y" multiplied by 
 
 
10300HB4951sam002- 62 -LRB103 38094 HLH 74177 a


1 1.0;
2     (iii) for property on which a bonus 
3 depreciation deduction of 100% of the adjusted 
4 basis was taken in a taxable year ending on or 
5 after December 31, 2021, "x" equals the 
6 depreciation deduction that would be allowed 
7 on that property if the taxpayer had made the 
8 election under Section 168(k)(7) of the 
9 Internal Revenue Code to not claim bonus 
10 depreciation on that property; and
11     (iv) for property on which a bonus 
12 depreciation deduction of a percentage other 
13 than 30%, 50% or 100% of the adjusted basis 
14 was taken in a taxable year ending on or after 
15 December 31, 2021, "x" equals "y" multiplied 
16 by 100 times the percentage bonus depreciation 
17 on the property (that is, 100(bonus%)) and 
18 then divided by 100 times 1 minus the 
19 percentage bonus depreciation on the property 
20 (that is, 100(1-bonus%)). 
21   The aggregate amount deducted under this 
22 subparagraph in all taxable years for any one piece of 
23 property may not exceed the amount of the bonus 
24 depreciation deduction taken on that property on the 
25 taxpayer's federal income tax return under subsection 
26 (k) of Section 168 of the Internal Revenue Code. This 
 
 
10300HB4951sam002- 63 -LRB103 38094 HLH 74177 a


1 subparagraph (T) is exempt from the provisions of 
2 Section 250;
3   (U) If the taxpayer sells, transfers, abandons, or 
4 otherwise disposes of property for which the taxpayer 
5 was required in any taxable year to make an addition 
6 modification under subparagraph (E-10), then an amount 
7 equal to that addition modification.
8   If the taxpayer continues to own property through 
9 the last day of the last tax year for which a 
10 subtraction is allowed with respect to that property 
11 under subparagraph (T) and for which the taxpayer was 
12 required in any taxable year to make an addition 
13 modification under subparagraph (E-10), then an amount 
14 equal to that addition modification. 
15   The taxpayer is allowed to take the deduction 
16 under this subparagraph only once with respect to any 
17 one piece of property.
18   This subparagraph (U) is exempt from the 
19 provisions of Section 250;
20   (V) The amount of: (i) any interest income (net of 
21 the deductions allocable thereto) taken into account 
22 for the taxable year with respect to a transaction 
23 with a taxpayer that is required to make an addition 
24 modification with respect to such transaction under 
25 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
26 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
 
 
10300HB4951sam002- 64 -LRB103 38094 HLH 74177 a


1 the amount of such addition modification, (ii) any 
2 income from intangible property (net of the deductions 
3 allocable thereto) taken into account for the taxable 
4 year with respect to a transaction with a taxpayer 
5 that is required to make an addition modification with 
6 respect to such transaction under Section 
7 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
8 203(d)(2)(D-8), but not to exceed the amount of such 
9 addition modification, and (iii) any insurance premium 
10 income (net of deductions allocable thereto) taken 
11 into account for the taxable year with respect to a 
12 transaction with a taxpayer that is required to make 
13 an addition modification with respect to such 
14 transaction under Section 203(a)(2)(D-19), Section 
15 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section 
16 203(d)(2)(D-9), but not to exceed the amount of that 
17 addition modification. This subparagraph (V) is exempt 
18 from the provisions of Section 250; 
19   (W) An amount equal to the interest income taken 
20 into account for the taxable year (net of the 
21 deductions allocable thereto) with respect to 
22 transactions with (i) a foreign person who would be a 
23 member of the taxpayer's unitary business group but 
24 for the fact that the foreign person's business 
25 activity outside the United States is 80% or more of 
26 that person's total business activity and (ii) for 
 
 
10300HB4951sam002- 65 -LRB103 38094 HLH 74177 a


1 taxable years ending on or after December 31, 2008, to 
2 a person who would be a member of the same unitary 
3 business group but for the fact that the person is 
4 prohibited under Section 1501(a)(27) from being 
5 included in the unitary business group because he or 
6 she is ordinarily required to apportion business 
7 income under different subsections of Section 304, but 
8 not to exceed the addition modification required to be 
9 made for the same taxable year under Section 
10 203(b)(2)(E-12) for interest paid, accrued, or 
11 incurred, directly or indirectly, to the same person. 
12 This subparagraph (W) is exempt from the provisions of 
13 Section 250; 
14   (X) An amount equal to the income from intangible 
15 property taken into account for the taxable year (net 
16 of the deductions allocable thereto) with respect to 
17 transactions with (i) a foreign person who would be a 
18 member of the taxpayer's unitary business group but 
19 for the fact that the foreign person's business 
20 activity outside the United States is 80% or more of 
21 that person's total business activity and (ii) for 
22 taxable years ending on or after December 31, 2008, to 
23 a person who would be a member of the same unitary 
24 business group but for the fact that the person is 
25 prohibited under Section 1501(a)(27) from being 
26 included in the unitary business group because he or 
 
 
10300HB4951sam002- 66 -LRB103 38094 HLH 74177 a


1 she is ordinarily required to apportion business 
2 income under different subsections of Section 304, but 
3 not to exceed the addition modification required to be 
4 made for the same taxable year under Section 
5 203(b)(2)(E-13) for intangible expenses and costs 
6 paid, accrued, or incurred, directly or indirectly, to 
7 the same foreign person. This subparagraph (X) is 
8 exempt from the provisions of Section 250; 
9   (Y) For taxable years ending on or after December 
10 31, 2011, in the case of a taxpayer who was required to 
11 add back any insurance premiums under Section 
12 203(b)(2)(E-14), such taxpayer may elect to subtract 
13 that part of a reimbursement received from the 
14 insurance company equal to the amount of the expense 
15 or loss (including expenses incurred by the insurance 
16 company) that would have been taken into account as a 
17 deduction for federal income tax purposes if the 
18 expense or loss had been uninsured. If a taxpayer 
19 makes the election provided for by this subparagraph 
20 (Y), the insurer to which the premiums were paid must 
21 add back to income the amount subtracted by the 
22 taxpayer pursuant to this subparagraph (Y). This 
23 subparagraph (Y) is exempt from the provisions of 
24 Section 250; 
25   (Z) The difference between the nondeductible 
26 controlled foreign corporation dividends under Section 
 
 
10300HB4951sam002- 67 -LRB103 38094 HLH 74177 a


1 965(e)(3) of the Internal Revenue Code over the 
2 taxable income of the taxpayer, computed without 
3 regard to Section 965(e)(2)(A) of the Internal Revenue 
4 Code, and without regard to any net operating loss 
5 deduction. This subparagraph (Z) is exempt from the 
6 provisions of Section 250; and 
7   (AA) For taxable years beginning on or after 
8 January 1, 2023, for any cannabis establishment 
9 operating in this State and licensed under the 
10 Cannabis Regulation and Tax Act or any cannabis 
11 cultivation center or medical cannabis dispensing 
12 organization operating in this State and licensed 
13 under the Compassionate Use of Medical Cannabis 
14 Program Act, an amount equal to the deductions that 
15 were disallowed under Section 280E of the Internal 
16 Revenue Code for the taxable year and that would not be 
17 added back under this subsection. The provisions of 
18 this subparagraph (AA) are exempt from the provisions 
19 of Section 250. 
20  (3) Special rule. For purposes of paragraph (2)(A), 
21 "gross income" in the case of a life insurance company, 
22 for tax years ending on and after December 31, 1994, and 
23 prior to December 31, 2011, shall mean the gross 
24 investment income for the taxable year and, for tax years 
25 ending on or after December 31, 2011, shall mean all 
26 amounts included in life insurance gross income under 
 
 
10300HB4951sam002- 68 -LRB103 38094 HLH 74177 a


1 Section 803(a)(3) of the Internal Revenue Code.

2 (c) Trusts and estates.
3  (1) In general. In the case of a trust or estate, base 
4 income means an amount equal to the taxpayer's taxable 
5 income for the taxable year as modified by paragraph (2).
6  (2) Modifications. Subject to the provisions of 
7 paragraph (3), the taxable income referred to in paragraph 
8 (1) shall be modified by adding thereto the sum of the 
9 following amounts:
10   (A) An amount equal to all amounts paid or accrued 
11 to the taxpayer as interest or dividends during the 
12 taxable year to the extent excluded from gross income 
13 in the computation of taxable income;
14   (B) In the case of (i) an estate, $600; (ii) a 
15 trust which, under its governing instrument, is 
16 required to distribute all of its income currently, 
17 $300; and (iii) any other trust, $100, but in each such 
18 case, only to the extent such amount was deducted in 
19 the computation of taxable income;
20   (C) An amount equal to the amount of tax imposed by 
21 this Act to the extent deducted from gross income in 
22 the computation of taxable income for the taxable 
23 year;
24   (D) The amount of any net operating loss deduction 
25 taken in arriving at taxable income, other than a net 
 
 
10300HB4951sam002- 69 -LRB103 38094 HLH 74177 a


1 operating loss carried forward from a taxable year 
2 ending prior to December 31, 1986;
3   (E) For taxable years in which a net operating 
4 loss carryback or carryforward from a taxable year 
5 ending prior to December 31, 1986 is an element of 
6 taxable income under paragraph (1) of subsection (e) 
7 or subparagraph (E) of paragraph (2) of subsection 
8 (e), the amount by which addition modifications other 
9 than those provided by this subparagraph (E) exceeded 
10 subtraction modifications in such taxable year, with 
11 the following limitations applied in the order that 
12 they are listed:
13    (i) the addition modification relating to the 
14 net operating loss carried back or forward to the 
15 taxable year from any taxable year ending prior to 
16 December 31, 1986 shall be reduced by the amount 
17 of addition modification under this subparagraph 
18 (E) which related to that net operating loss and 
19 which was taken into account in calculating the 
20 base income of an earlier taxable year, and
21    (ii) the addition modification relating to the 
22 net operating loss carried back or forward to the 
23 taxable year from any taxable year ending prior to 
24 December 31, 1986 shall not exceed the amount of 
25 such carryback or carryforward;
26   For taxable years in which there is a net 
 
 
10300HB4951sam002- 70 -LRB103 38094 HLH 74177 a


1 operating loss carryback or carryforward from more 
2 than one other taxable year ending prior to December 
3 31, 1986, the addition modification provided in this 
4 subparagraph (E) shall be the sum of the amounts 
5 computed independently under the preceding provisions 
6 of this subparagraph (E) for each such taxable year;
7   (F) For taxable years ending on or after January 
8 1, 1989, an amount equal to the tax deducted pursuant 
9 to Section 164 of the Internal Revenue Code if the 
10 trust or estate is claiming the same tax for purposes 
11 of the Illinois foreign tax credit under Section 601 
12 of this Act;
13   (G) An amount equal to the amount of the capital 
14 gain deduction allowable under the Internal Revenue 
15 Code, to the extent deducted from gross income in the 
16 computation of taxable income;
17   (G-5) For taxable years ending after December 31, 
18 1997, an amount equal to any eligible remediation 
19 costs that the trust or estate deducted in computing 
20 adjusted gross income and for which the trust or 
21 estate claims a credit under subsection (l) of Section 
22 201;
23   (G-10) For taxable years 2001 and thereafter, an 
24 amount equal to the bonus depreciation deduction taken 
25 on the taxpayer's federal income tax return for the 
26 taxable year under subsection (k) of Section 168 of 
 
 
10300HB4951sam002- 71 -LRB103 38094 HLH 74177 a


1 the Internal Revenue Code; and
2   (G-11) If the taxpayer sells, transfers, abandons, 
3 or otherwise disposes of property for which the 
4 taxpayer was required in any taxable year to make an 
5 addition modification under subparagraph (G-10), then 
6 an amount equal to the aggregate amount of the 
7 deductions taken in all taxable years under 
8 subparagraph (R) with respect to that property.
9   If the taxpayer continues to own property through 
10 the last day of the last tax year for which a 
11 subtraction is allowed with respect to that property 
12 under subparagraph (R) and for which the taxpayer was 
13 allowed in any taxable year to make a subtraction 
14 modification under subparagraph (R), then an amount 
15 equal to that subtraction modification. 
16   The taxpayer is required to make the addition 
17 modification under this subparagraph only once with 
18 respect to any one piece of property;
19   (G-12) An amount equal to the amount otherwise 
20 allowed as a deduction in computing base income for 
21 interest paid, accrued, or incurred, directly or 
22 indirectly, (i) for taxable years ending on or after 
23 December 31, 2004, to a foreign person who would be a 
24 member of the same unitary business group but for the 
25 fact that the foreign person's business activity 
26 outside the United States is 80% or more of the foreign 
 
 
10300HB4951sam002- 72 -LRB103 38094 HLH 74177 a


1 person's total business activity and (ii) for taxable 
2 years ending on or after December 31, 2008, to a person 
3 who would be a member of the same unitary business 
4 group but for the fact that the person is prohibited 
5 under Section 1501(a)(27) from being included in the 
6 unitary business group because he or she is ordinarily 
7 required to apportion business income under different 
8 subsections of Section 304. The addition modification 
9 required by this subparagraph shall be reduced to the 
10 extent that dividends were included in base income of 
11 the unitary group for the same taxable year and 
12 received by the taxpayer or by a member of the 
13 taxpayer's unitary business group (including amounts 
14 included in gross income pursuant to Sections 951 
15 through 964 of the Internal Revenue Code and amounts 
16 included in gross income under Section 78 of the 
17 Internal Revenue Code) with respect to the stock of 
18 the same person to whom the interest was paid, 
19 accrued, or incurred. 
20   This paragraph shall not apply to the following: 
21    (i) an item of interest paid, accrued, or 
22 incurred, directly or indirectly, to a person who 
23 is subject in a foreign country or state, other 
24 than a state which requires mandatory unitary 
25 reporting, to a tax on or measured by net income 
26 with respect to such interest; or
 
 
10300HB4951sam002- 73 -LRB103 38094 HLH 74177 a


1    (ii) an item of interest paid, accrued, or 
2 incurred, directly or indirectly, to a person if 
3 the taxpayer can establish, based on a 
4 preponderance of the evidence, both of the 
5 following:
6     (a) the person, during the same taxable 
7 year, paid, accrued, or incurred, the interest 
8 to a person that is not a related member, and
9     (b) the transaction giving rise to the 
10 interest expense between the taxpayer and the 
11 person did not have as a principal purpose the 
12 avoidance of Illinois income tax, and is paid 
13 pursuant to a contract or agreement that 
14 reflects an arm's-length interest rate and 
15 terms; or 
16    (iii) the taxpayer can establish, based on 
17 clear and convincing evidence, that the interest 
18 paid, accrued, or incurred relates to a contract 
19 or agreement entered into at arm's-length rates 
20 and terms and the principal purpose for the 
21 payment is not federal or Illinois tax avoidance; 
22 or 
23    (iv) an item of interest paid, accrued, or 
24 incurred, directly or indirectly, to a person if 
25 the taxpayer establishes by clear and convincing 
26 evidence that the adjustments are unreasonable; or 
 
 
10300HB4951sam002- 74 -LRB103 38094 HLH 74177 a


1 if the taxpayer and the Director agree in writing 
2 to the application or use of an alternative method 
3 of apportionment under Section 304(f). 
4    Nothing in this subsection shall preclude the 
5 Director from making any other adjustment 
6 otherwise allowed under Section 404 of this Act 
7 for any tax year beginning after the effective 
8 date of this amendment provided such adjustment is 
9 made pursuant to regulation adopted by the 
10 Department and such regulations provide methods 
11 and standards by which the Department will utilize 
12 its authority under Section 404 of this Act; 
13   (G-13) An amount equal to the amount of intangible 
14 expenses and costs otherwise allowed as a deduction in 
15 computing base income, and that were paid, accrued, or 
16 incurred, directly or indirectly, (i) for taxable 
17 years ending on or after December 31, 2004, to a 
18 foreign person who would be a member of the same 
19 unitary business group but for the fact that the 
20 foreign person's business activity outside the United 
21 States is 80% or more of that person's total business 
22 activity and (ii) for taxable years ending on or after 
23 December 31, 2008, to a person who would be a member of 
24 the same unitary business group but for the fact that 
25 the person is prohibited under Section 1501(a)(27) 
26 from being included in the unitary business group 
 
 
10300HB4951sam002- 75 -LRB103 38094 HLH 74177 a


1 because he or she is ordinarily required to apportion 
2 business income under different subsections of Section 
3 304. The addition modification required by this 
4 subparagraph shall be reduced to the extent that 
5 dividends were included in base income of the unitary 
6 group for the same taxable year and received by the 
7 taxpayer or by a member of the taxpayer's unitary 
8 business group (including amounts included in gross 
9 income pursuant to Sections 951 through 964 of the 
10 Internal Revenue Code and amounts included in gross 
11 income under Section 78 of the Internal Revenue Code) 
12 with respect to the stock of the same person to whom 
13 the intangible expenses and costs were directly or 
14 indirectly paid, incurred, or accrued. The preceding 
15 sentence shall not apply to the extent that the same 
16 dividends caused a reduction to the addition 
17 modification required under Section 203(c)(2)(G-12) of 
18 this Act. As used in this subparagraph, the term 
19 "intangible expenses and costs" includes: (1) 
20 expenses, losses, and costs for or related to the 
21 direct or indirect acquisition, use, maintenance or 
22 management, ownership, sale, exchange, or any other 
23 disposition of intangible property; (2) losses 
24 incurred, directly or indirectly, from factoring 
25 transactions or discounting transactions; (3) royalty, 
26 patent, technical, and copyright fees; (4) licensing 
 
 
10300HB4951sam002- 76 -LRB103 38094 HLH 74177 a


1 fees; and (5) other similar expenses and costs. For 
2 purposes of this subparagraph, "intangible property" 
3 includes patents, patent applications, trade names, 
4 trademarks, service marks, copyrights, mask works, 
5 trade secrets, and similar types of intangible assets.
6   This paragraph shall not apply to the following:
7    (i) any item of intangible expenses or costs 
8 paid, accrued, or incurred, directly or 
9 indirectly, from a transaction with a person who 
10 is subject in a foreign country or state, other 
11 than a state which requires mandatory unitary 
12 reporting, to a tax on or measured by net income 
13 with respect to such item; or
14    (ii) any item of intangible expense or cost 
15 paid, accrued, or incurred, directly or 
16 indirectly, if the taxpayer can establish, based 
17 on a preponderance of the evidence, both of the 
18 following:
19     (a) the person during the same taxable 
20 year paid, accrued, or incurred, the 
21 intangible expense or cost to a person that is 
22 not a related member, and
23     (b) the transaction giving rise to the 
24 intangible expense or cost between the 
25 taxpayer and the person did not have as a 
26 principal purpose the avoidance of Illinois 
 
 
10300HB4951sam002- 77 -LRB103 38094 HLH 74177 a


1 income tax, and is paid pursuant to a contract 
2 or agreement that reflects arm's-length terms; 
3 or
4    (iii) any item of intangible expense or cost 
5 paid, accrued, or incurred, directly or 
6 indirectly, from a transaction with a person if 
7 the taxpayer establishes by clear and convincing 
8 evidence, that the adjustments are unreasonable; 
9 or if the taxpayer and the Director agree in 
10 writing to the application or use of an 
11 alternative method of apportionment under Section 
12 304(f); 
13    Nothing in this subsection shall preclude the 
14 Director from making any other adjustment 
15 otherwise allowed under Section 404 of this Act 
16 for any tax year beginning after the effective 
17 date of this amendment provided such adjustment is 
18 made pursuant to regulation adopted by the 
19 Department and such regulations provide methods 
20 and standards by which the Department will utilize 
21 its authority under Section 404 of this Act; 
22   (G-14) For taxable years ending on or after 
23 December 31, 2008, an amount equal to the amount of 
24 insurance premium expenses and costs otherwise allowed 
25 as a deduction in computing base income, and that were 
26 paid, accrued, or incurred, directly or indirectly, to 
 
 
10300HB4951sam002- 78 -LRB103 38094 HLH 74177 a


1 a person who would be a member of the same unitary 
2 business group but for the fact that the person is 
3 prohibited under Section 1501(a)(27) from being 
4 included in the unitary business group because he or 
5 she is ordinarily required to apportion business 
6 income under different subsections of Section 304. The 
7 addition modification required by this subparagraph 
8 shall be reduced to the extent that dividends were 
9 included in base income of the unitary group for the 
10 same taxable year and received by the taxpayer or by a 
11 member of the taxpayer's unitary business group 
12 (including amounts included in gross income under 
13 Sections 951 through 964 of the Internal Revenue Code 
14 and amounts included in gross income under Section 78 
15 of the Internal Revenue Code) with respect to the 
16 stock of the same person to whom the premiums and costs 
17 were directly or indirectly paid, incurred, or 
18 accrued. The preceding sentence does not apply to the 
19 extent that the same dividends caused a reduction to 
20 the addition modification required under Section 
21 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this 
22 Act;
23   (G-15) An amount equal to the credit allowable to 
24 the taxpayer under Section 218(a) of this Act, 
25 determined without regard to Section 218(c) of this 
26 Act;
 
 
10300HB4951sam002- 79 -LRB103 38094 HLH 74177 a


1   (G-16) For taxable years ending on or after 
2 December 31, 2017, an amount equal to the deduction 
3 allowed under Section 199 of the Internal Revenue Code 
4 for the taxable year; 
5 and by deducting from the total so obtained the sum of the 
6 following amounts:
7   (H) An amount equal to all amounts included in 
8 such total pursuant to the provisions of Sections 
9 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 
10 of the Internal Revenue Code or included in such total 
11 as distributions under the provisions of any 
12 retirement or disability plan for employees of any 
13 governmental agency or unit, or retirement payments to 
14 retired partners, which payments are excluded in 
15 computing net earnings from self employment by Section 
16 1402 of the Internal Revenue Code and regulations 
17 adopted pursuant thereto;
18   (I) The valuation limitation amount;
19   (J) An amount equal to the amount of any tax 
20 imposed by this Act which was refunded to the taxpayer 
21 and included in such total for the taxable year;
22   (K) An amount equal to all amounts included in 
23 taxable income as modified by subparagraphs (A), (B), 
24 (C), (D), (E), (F) and (G) which are exempt from 
25 taxation by this State either by reason of its 
26 statutes or Constitution or by reason of the 
 
 
10300HB4951sam002- 80 -LRB103 38094 HLH 74177 a


1 Constitution, treaties or statutes of the United 
2 States; provided that, in the case of any statute of 
3 this State that exempts income derived from bonds or 
4 other obligations from the tax imposed under this Act, 
5 the amount exempted shall be the interest net of bond 
6 premium amortization;
7   (L) With the exception of any amounts subtracted 
8 under subparagraph (K), an amount equal to the sum of 
9 all amounts disallowed as deductions by (i) Sections 
10 171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
11 and all amounts of expenses allocable to interest and 
12 disallowed as deductions by Section 265(a)(1) of the 
13 Internal Revenue Code; and (ii) for taxable years 
14 ending on or after August 13, 1999, Sections 
15 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
16 Internal Revenue Code, plus, (iii) for taxable years 
17 ending on or after December 31, 2011, Section 
18 45G(e)(3) of the Internal Revenue Code and, for 
19 taxable years ending on or after December 31, 2008, 
20 any amount included in gross income under Section 87 
21 of the Internal Revenue Code; the provisions of this 
22 subparagraph are exempt from the provisions of Section 
23 250;
24   (M) An amount equal to those dividends included in 
25 such total which were paid by a corporation which 
26 conducts business operations in a River Edge 
 
 
10300HB4951sam002- 81 -LRB103 38094 HLH 74177 a


1 Redevelopment Zone or zones created under the River 
2 Edge Redevelopment Zone Act and conducts substantially 
3 all of its operations in a River Edge Redevelopment 
4 Zone or zones. This subparagraph (M) is exempt from 
5 the provisions of Section 250;
6   (N) An amount equal to any contribution made to a 
7 job training project established pursuant to the Tax 
8 Increment Allocation Redevelopment Act;
9   (O) An amount equal to those dividends included in 
10 such total that were paid by a corporation that 
11 conducts business operations in a federally designated 
12 Foreign Trade Zone or Sub-Zone and that is designated 
13 a High Impact Business located in Illinois; provided 
14 that dividends eligible for the deduction provided in 
15 subparagraph (M) of paragraph (2) of this subsection 
16 shall not be eligible for the deduction provided under 
17 this subparagraph (O);
18   (P) An amount equal to the amount of the deduction 
19 used to compute the federal income tax credit for 
20 restoration of substantial amounts held under claim of 
21 right for the taxable year pursuant to Section 1341 of 
22 the Internal Revenue Code;
23   (Q) For taxable year 1999 and thereafter, an 
24 amount equal to the amount of any (i) distributions, 
25 to the extent includible in gross income for federal 
26 income tax purposes, made to the taxpayer because of 
 
 
10300HB4951sam002- 82 -LRB103 38094 HLH 74177 a


1 his or her status as a victim of persecution for racial 
2 or religious reasons by Nazi Germany or any other Axis 
3 regime or as an heir of the victim and (ii) items of 
4 income, to the extent includible in gross income for 
5 federal income tax purposes, attributable to, derived 
6 from or in any way related to assets stolen from, 
7 hidden from, or otherwise lost to a victim of 
8 persecution for racial or religious reasons by Nazi 
9 Germany or any other Axis regime immediately prior to, 
10 during, and immediately after World War II, including, 
11 but not limited to, interest on the proceeds 
12 receivable as insurance under policies issued to a 
13 victim of persecution for racial or religious reasons 
14 by Nazi Germany or any other Axis regime by European 
15 insurance companies immediately prior to and during 
16 World War II; provided, however, this subtraction from 
17 federal adjusted gross income does not apply to assets 
18 acquired with such assets or with the proceeds from 
19 the sale of such assets; provided, further, this 
20 paragraph shall only apply to a taxpayer who was the 
21 first recipient of such assets after their recovery 
22 and who is a victim of persecution for racial or 
23 religious reasons by Nazi Germany or any other Axis 
24 regime or as an heir of the victim. The amount of and 
25 the eligibility for any public assistance, benefit, or 
26 similar entitlement is not affected by the inclusion 
 
 
10300HB4951sam002- 83 -LRB103 38094 HLH 74177 a


1 of items (i) and (ii) of this paragraph in gross income 
2 for federal income tax purposes. This paragraph is 
3 exempt from the provisions of Section 250;
4   (R) For taxable years 2001 and thereafter, for the 
5 taxable year in which the bonus depreciation deduction 
6 is taken on the taxpayer's federal income tax return 
7 under subsection (k) of Section 168 of the Internal 
8 Revenue Code and for each applicable taxable year 
9 thereafter, an amount equal to "x", where:
10    (1) "y" equals the amount of the depreciation 
11 deduction taken for the taxable year on the 
12 taxpayer's federal income tax return on property 
13 for which the bonus depreciation deduction was 
14 taken in any year under subsection (k) of Section 
15 168 of the Internal Revenue Code, but not 
16 including the bonus depreciation deduction;
17    (2) for taxable years ending on or before 
18 December 31, 2005, "x" equals "y" multiplied by 30 
19 and then divided by 70 (or "y" multiplied by 
20 0.429); and
21    (3) for taxable years ending after December 
22 31, 2005:
23     (i) for property on which a bonus 
24 depreciation deduction of 30% of the adjusted 
25 basis was taken, "x" equals "y" multiplied by 
26 30 and then divided by 70 (or "y" multiplied 
 
 
10300HB4951sam002- 84 -LRB103 38094 HLH 74177 a


1 by 0.429);
2     (ii) for property on which a bonus 
3 depreciation deduction of 50% of the adjusted 
4 basis was taken, "x" equals "y" multiplied by 
5 1.0;
6     (iii) for property on which a bonus 
7 depreciation deduction of 100% of the adjusted 
8 basis was taken in a taxable year ending on or 
9 after December 31, 2021, "x" equals the 
10 depreciation deduction that would be allowed 
11 on that property if the taxpayer had made the 
12 election under Section 168(k)(7) of the 
13 Internal Revenue Code to not claim bonus 
14 depreciation on that property; and
15     (iv) for property on which a bonus 
16 depreciation deduction of a percentage other 
17 than 30%, 50% or 100% of the adjusted basis 
18 was taken in a taxable year ending on or after 
19 December 31, 2021, "x" equals "y" multiplied 
20 by 100 times the percentage bonus depreciation 
21 on the property (that is, 100(bonus%)) and 
22 then divided by 100 times 1 minus the 
23 percentage bonus depreciation on the property 
24 (that is, 100(1-bonus%)). 
25   The aggregate amount deducted under this 
26 subparagraph in all taxable years for any one piece of 
 
 
10300HB4951sam002- 85 -LRB103 38094 HLH 74177 a


1 property may not exceed the amount of the bonus 
2 depreciation deduction taken on that property on the 
3 taxpayer's federal income tax return under subsection 
4 (k) of Section 168 of the Internal Revenue Code. This 
5 subparagraph (R) is exempt from the provisions of 
6 Section 250;
7   (S) If the taxpayer sells, transfers, abandons, or 
8 otherwise disposes of property for which the taxpayer 
9 was required in any taxable year to make an addition 
10 modification under subparagraph (G-10), then an amount 
11 equal to that addition modification.
12   If the taxpayer continues to own property through 
13 the last day of the last tax year for which a 
14 subtraction is allowed with respect to that property 
15 under subparagraph (R) and for which the taxpayer was 
16 required in any taxable year to make an addition 
17 modification under subparagraph (G-10), then an amount 
18 equal to that addition modification. 
19   The taxpayer is allowed to take the deduction 
20 under this subparagraph only once with respect to any 
21 one piece of property.
22   This subparagraph (S) is exempt from the 
23 provisions of Section 250;
24   (T) The amount of (i) any interest income (net of 
25 the deductions allocable thereto) taken into account 
26 for the taxable year with respect to a transaction 
 
 
10300HB4951sam002- 86 -LRB103 38094 HLH 74177 a


1 with a taxpayer that is required to make an addition 
2 modification with respect to such transaction under 
3 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
4 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
5 the amount of such addition modification and (ii) any 
6 income from intangible property (net of the deductions 
7 allocable thereto) taken into account for the taxable 
8 year with respect to a transaction with a taxpayer 
9 that is required to make an addition modification with 
10 respect to such transaction under Section 
11 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
12 203(d)(2)(D-8), but not to exceed the amount of such 
13 addition modification. This subparagraph (T) is exempt 
14 from the provisions of Section 250; 
15   (U) An amount equal to the interest income taken 
16 into account for the taxable year (net of the 
17 deductions allocable thereto) with respect to 
18 transactions with (i) a foreign person who would be a 
19 member of the taxpayer's unitary business group but 
20 for the fact the foreign person's business activity 
21 outside the United States is 80% or more of that 
22 person's total business activity and (ii) for taxable 
23 years ending on or after December 31, 2008, to a person 
24 who would be a member of the same unitary business 
25 group but for the fact that the person is prohibited 
26 under Section 1501(a)(27) from being included in the 
 
 
10300HB4951sam002- 87 -LRB103 38094 HLH 74177 a


1 unitary business group because he or she is ordinarily 
2 required to apportion business income under different 
3 subsections of Section 304, but not to exceed the 
4 addition modification required to be made for the same 
5 taxable year under Section 203(c)(2)(G-12) for 
6 interest paid, accrued, or incurred, directly or 
7 indirectly, to the same person. This subparagraph (U) 
8 is exempt from the provisions of Section 250; 
9   (V) An amount equal to the income from intangible 
10 property taken into account for the taxable year (net 
11 of the deductions allocable thereto) with respect to 
12 transactions with (i) a foreign person who would be a 
13 member of the taxpayer's unitary business group but 
14 for the fact that the foreign person's business 
15 activity outside the United States is 80% or more of 
16 that person's total business activity and (ii) for 
17 taxable years ending on or after December 31, 2008, to 
18 a person who would be a member of the same unitary 
19 business group but for the fact that the person is 
20 prohibited under Section 1501(a)(27) from being 
21 included in the unitary business group because he or 
22 she is ordinarily required to apportion business 
23 income under different subsections of Section 304, but 
24 not to exceed the addition modification required to be 
25 made for the same taxable year under Section 
26 203(c)(2)(G-13) for intangible expenses and costs 
 
 
10300HB4951sam002- 88 -LRB103 38094 HLH 74177 a


1 paid, accrued, or incurred, directly or indirectly, to 
2 the same foreign person. This subparagraph (V) is 
3 exempt from the provisions of Section 250; 
4   (W) in the case of an estate, an amount equal to 
5 all amounts included in such total pursuant to the 
6 provisions of Section 111 of the Internal Revenue Code 
7 as a recovery of items previously deducted by the 
8 decedent from adjusted gross income in the computation 
9 of taxable income. This subparagraph (W) is exempt 
10 from Section 250; 
11   (X) an amount equal to the refund included in such 
12 total of any tax deducted for federal income tax 
13 purposes, to the extent that deduction was added back 
14 under subparagraph (F). This subparagraph (X) is 
15 exempt from the provisions of Section 250;
16   (Y) For taxable years ending on or after December 
17 31, 2011, in the case of a taxpayer who was required to 
18 add back any insurance premiums under Section 
19 203(c)(2)(G-14), such taxpayer may elect to subtract 
20 that part of a reimbursement received from the 
21 insurance company equal to the amount of the expense 
22 or loss (including expenses incurred by the insurance 
23 company) that would have been taken into account as a 
24 deduction for federal income tax purposes if the 
25 expense or loss had been uninsured. If a taxpayer 
26 makes the election provided for by this subparagraph 
 
 
10300HB4951sam002- 89 -LRB103 38094 HLH 74177 a


1 (Y), the insurer to which the premiums were paid must 
2 add back to income the amount subtracted by the 
3 taxpayer pursuant to this subparagraph (Y). This 
4 subparagraph (Y) is exempt from the provisions of 
5 Section 250;
6   (Z) For taxable years beginning after December 31, 
7 2018 and before January 1, 2026, the amount of excess 
8 business loss of the taxpayer disallowed as a 
9 deduction by Section 461(l)(1)(B) of the Internal 
10 Revenue Code; and 
11   (AA) For taxable years beginning on or after 
12 January 1, 2023, for any cannabis establishment 
13 operating in this State and licensed under the 
14 Cannabis Regulation and Tax Act or any cannabis 
15 cultivation center or medical cannabis dispensing 
16 organization operating in this State and licensed 
17 under the Compassionate Use of Medical Cannabis 
18 Program Act, an amount equal to the deductions that 
19 were disallowed under Section 280E of the Internal 
20 Revenue Code for the taxable year and that would not be 
21 added back under this subsection. The provisions of 
22 this subparagraph (AA) are exempt from the provisions 
23 of Section 250. 
24  (3) Limitation. The amount of any modification 
25 otherwise required under this subsection shall, under 
26 regulations prescribed by the Department, be adjusted by 
 
 
10300HB4951sam002- 90 -LRB103 38094 HLH 74177 a


1 any amounts included therein which were properly paid, 
2 credited, or required to be distributed, or permanently 
3 set aside for charitable purposes pursuant to Internal 
4 Revenue Code Section 642(c) during the taxable year.

5 (d) Partnerships.
6  (1) In general. In the case of a partnership, base 
7 income means an amount equal to the taxpayer's taxable 
8 income for the taxable year as modified by paragraph (2).
9  (2) Modifications. The taxable income referred to in 
10 paragraph (1) shall be modified by adding thereto the sum 
11 of the following amounts:
12   (A) An amount equal to all amounts paid or accrued 
13 to the taxpayer as interest or dividends during the 
14 taxable year to the extent excluded from gross income 
15 in the computation of taxable income;
16   (B) An amount equal to the amount of tax imposed by 
17 this Act to the extent deducted from gross income for 
18 the taxable year;
19   (C) The amount of deductions allowed to the 
20 partnership pursuant to Section 707 (c) of the 
21 Internal Revenue Code in calculating its taxable 
22 income;
23   (D) An amount equal to the amount of the capital 
24 gain deduction allowable under the Internal Revenue 
25 Code, to the extent deducted from gross income in the 
 
 
10300HB4951sam002- 91 -LRB103 38094 HLH 74177 a


1 computation of taxable income;
2   (D-5) For taxable years 2001 and thereafter, an 
3 amount equal to the bonus depreciation deduction taken 
4 on the taxpayer's federal income tax return for the 
5 taxable year under subsection (k) of Section 168 of 
6 the Internal Revenue Code;
7   (D-6) If the taxpayer sells, transfers, abandons, 
8 or otherwise disposes of property for which the 
9 taxpayer was required in any taxable year to make an 
10 addition modification under subparagraph (D-5), then 
11 an amount equal to the aggregate amount of the 
12 deductions taken in all taxable years under 
13 subparagraph (O) with respect to that property.
14   If the taxpayer continues to own property through 
15 the last day of the last tax year for which a 
16 subtraction is allowed with respect to that property 
17 under subparagraph (O) and for which the taxpayer was 
18 allowed in any taxable year to make a subtraction 
19 modification under subparagraph (O), then an amount 
20 equal to that subtraction modification. 
21   The taxpayer is required to make the addition 
22 modification under this subparagraph only once with 
23 respect to any one piece of property;
24   (D-7) An amount equal to the amount otherwise 
25 allowed as a deduction in computing base income for 
26 interest paid, accrued, or incurred, directly or 
 
 
10300HB4951sam002- 92 -LRB103 38094 HLH 74177 a


1 indirectly, (i) for taxable years ending on or after 
2 December 31, 2004, to a foreign person who would be a 
3 member of the same unitary business group but for the 
4 fact the foreign person's business activity outside 
5 the United States is 80% or more of the foreign 
6 person's total business activity and (ii) for taxable 
7 years ending on or after December 31, 2008, to a person 
8 who would be a member of the same unitary business 
9 group but for the fact that the person is prohibited 
10 under Section 1501(a)(27) from being included in the 
11 unitary business group because he or she is ordinarily 
12 required to apportion business income under different 
13 subsections of Section 304. The addition modification 
14 required by this subparagraph shall be reduced to the 
15 extent that dividends were included in base income of 
16 the unitary group for the same taxable year and 
17 received by the taxpayer or by a member of the 
18 taxpayer's unitary business group (including amounts 
19 included in gross income pursuant to Sections 951 
20 through 964 of the Internal Revenue Code and amounts 
21 included in gross income under Section 78 of the 
22 Internal Revenue Code) with respect to the stock of 
23 the same person to whom the interest was paid, 
24 accrued, or incurred. 
25   This paragraph shall not apply to the following: 
26    (i) an item of interest paid, accrued, or 
 
 
10300HB4951sam002- 93 -LRB103 38094 HLH 74177 a


1 incurred, directly or indirectly, to a person who 
2 is subject in a foreign country or state, other 
3 than a state which requires mandatory unitary 
4 reporting, to a tax on or measured by net income 
5 with respect to such interest; or
6    (ii) an item of interest paid, accrued, or 
7 incurred, directly or indirectly, to a person if 
8 the taxpayer can establish, based on a 
9 preponderance of the evidence, both of the 
10 following:
11     (a) the person, during the same taxable 
12 year, paid, accrued, or incurred, the interest 
13 to a person that is not a related member, and
14     (b) the transaction giving rise to the 
15 interest expense between the taxpayer and the 
16 person did not have as a principal purpose the 
17 avoidance of Illinois income tax, and is paid 
18 pursuant to a contract or agreement that 
19 reflects an arm's-length interest rate and 
20 terms; or 
21    (iii) the taxpayer can establish, based on 
22 clear and convincing evidence, that the interest 
23 paid, accrued, or incurred relates to a contract 
24 or agreement entered into at arm's-length rates 
25 and terms and the principal purpose for the 
26 payment is not federal or Illinois tax avoidance; 
 
 
10300HB4951sam002- 94 -LRB103 38094 HLH 74177 a


1 or 
2    (iv) an item of interest paid, accrued, or 
3 incurred, directly or indirectly, to a person if 
4 the taxpayer establishes by clear and convincing 
5 evidence that the adjustments are unreasonable; or 
6 if the taxpayer and the Director agree in writing 
7 to the application or use of an alternative method 
8 of apportionment under Section 304(f). 
9    Nothing in this subsection shall preclude the 
10 Director from making any other adjustment 
11 otherwise allowed under Section 404 of this Act 
12 for any tax year beginning after the effective 
13 date of this amendment provided such adjustment is 
14 made pursuant to regulation adopted by the 
15 Department and such regulations provide methods 
16 and standards by which the Department will utilize 
17 its authority under Section 404 of this Act; and 
18   (D-8) An amount equal to the amount of intangible 
19 expenses and costs otherwise allowed as a deduction in 
20 computing base income, and that were paid, accrued, or 
21 incurred, directly or indirectly, (i) for taxable 
22 years ending on or after December 31, 2004, to a 
23 foreign person who would be a member of the same 
24 unitary business group but for the fact that the 
25 foreign person's business activity outside the United 
26 States is 80% or more of that person's total business 
 
 
10300HB4951sam002- 95 -LRB103 38094 HLH 74177 a


1 activity and (ii) for taxable years ending on or after 
2 December 31, 2008, to a person who would be a member of 
3 the same unitary business group but for the fact that 
4 the person is prohibited under Section 1501(a)(27) 
5 from being included in the unitary business group 
6 because he or she is ordinarily required to apportion 
7 business income under different subsections of Section 
8 304. The addition modification required by this 
9 subparagraph shall be reduced to the extent that 
10 dividends were included in base income of the unitary 
11 group for the same taxable year and received by the 
12 taxpayer or by a member of the taxpayer's unitary 
13 business group (including amounts included in gross 
14 income pursuant to Sections 951 through 964 of the 
15 Internal Revenue Code and amounts included in gross 
16 income under Section 78 of the Internal Revenue Code) 
17 with respect to the stock of the same person to whom 
18 the intangible expenses and costs were directly or 
19 indirectly paid, incurred or accrued. The preceding 
20 sentence shall not apply to the extent that the same 
21 dividends caused a reduction to the addition 
22 modification required under Section 203(d)(2)(D-7) of 
23 this Act. As used in this subparagraph, the term 
24 "intangible expenses and costs" includes (1) expenses, 
25 losses, and costs for, or related to, the direct or 
26 indirect acquisition, use, maintenance or management, 
 
 
10300HB4951sam002- 96 -LRB103 38094 HLH 74177 a


1 ownership, sale, exchange, or any other disposition of 
2 intangible property; (2) losses incurred, directly or 
3 indirectly, from factoring transactions or discounting 
4 transactions; (3) royalty, patent, technical, and 
5 copyright fees; (4) licensing fees; and (5) other 
6 similar expenses and costs. For purposes of this 
7 subparagraph, "intangible property" includes patents, 
8 patent applications, trade names, trademarks, service 
9 marks, copyrights, mask works, trade secrets, and 
10 similar types of intangible assets;
11   This paragraph shall not apply to the following:
12    (i) any item of intangible expenses or costs 
13 paid, accrued, or incurred, directly or 
14 indirectly, from a transaction with a person who 
15 is subject in a foreign country or state, other 
16 than a state which requires mandatory unitary 
17 reporting, to a tax on or measured by net income 
18 with respect to such item; or
19    (ii) any item of intangible expense or cost 
20 paid, accrued, or incurred, directly or 
21 indirectly, if the taxpayer can establish, based 
22 on a preponderance of the evidence, both of the 
23 following:
24     (a) the person during the same taxable 
25 year paid, accrued, or incurred, the 
26 intangible expense or cost to a person that is 
 
 
10300HB4951sam002- 97 -LRB103 38094 HLH 74177 a


1 not a related member, and
2     (b) the transaction giving rise to the 
3 intangible expense or cost between the 
4 taxpayer and the person did not have as a 
5 principal purpose the avoidance of Illinois 
6 income tax, and is paid pursuant to a contract 
7 or agreement that reflects arm's-length terms; 
8 or
9    (iii) any item of intangible expense or cost 
10 paid, accrued, or incurred, directly or 
11 indirectly, from a transaction with a person if 
12 the taxpayer establishes by clear and convincing 
13 evidence, that the adjustments are unreasonable; 
14 or if the taxpayer and the Director agree in 
15 writing to the application or use of an 
16 alternative method of apportionment under Section 
17 304(f); 
18    Nothing in this subsection shall preclude the 
19 Director from making any other adjustment 
20 otherwise allowed under Section 404 of this Act 
21 for any tax year beginning after the effective 
22 date of this amendment provided such adjustment is 
23 made pursuant to regulation adopted by the 
24 Department and such regulations provide methods 
25 and standards by which the Department will utilize 
26 its authority under Section 404 of this Act; 
 
 
10300HB4951sam002- 98 -LRB103 38094 HLH 74177 a


1   (D-9) For taxable years ending on or after 
2 December 31, 2008, an amount equal to the amount of 
3 insurance premium expenses and costs otherwise allowed 
4 as a deduction in computing base income, and that were 
5 paid, accrued, or incurred, directly or indirectly, to 
6 a person who would be a member of the same unitary 
7 business group but for the fact that the person is 
8 prohibited under Section 1501(a)(27) from being 
9 included in the unitary business group because he or 
10 she is ordinarily required to apportion business 
11 income under different subsections of Section 304. The 
12 addition modification required by this subparagraph 
13 shall be reduced to the extent that dividends were 
14 included in base income of the unitary group for the 
15 same taxable year and received by the taxpayer or by a 
16 member of the taxpayer's unitary business group 
17 (including amounts included in gross income under 
18 Sections 951 through 964 of the Internal Revenue Code 
19 and amounts included in gross income under Section 78 
20 of the Internal Revenue Code) with respect to the 
21 stock of the same person to whom the premiums and costs 
22 were directly or indirectly paid, incurred, or 
23 accrued. The preceding sentence does not apply to the 
24 extent that the same dividends caused a reduction to 
25 the addition modification required under Section 
26 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
 
 
10300HB4951sam002- 99 -LRB103 38094 HLH 74177 a


1   (D-10) An amount equal to the credit allowable to 
2 the taxpayer under Section 218(a) of this Act, 
3 determined without regard to Section 218(c) of this 
4 Act;
5   (D-11) For taxable years ending on or after 
6 December 31, 2017, an amount equal to the deduction 
7 allowed under Section 199 of the Internal Revenue Code 
8 for the taxable year; 
9 and by deducting from the total so obtained the following 
10 amounts:
11   (E) The valuation limitation amount;
12   (F) An amount equal to the amount of any tax 
13 imposed by this Act which was refunded to the taxpayer 
14 and included in such total for the taxable year;
15   (G) An amount equal to all amounts included in 
16 taxable income as modified by subparagraphs (A), (B), 
17 (C) and (D) which are exempt from taxation by this 
18 State either by reason of its statutes or Constitution 
19 or by reason of the Constitution, treaties or statutes 
20 of the United States; provided that, in the case of any 
21 statute of this State that exempts income derived from 
22 bonds or other obligations from the tax imposed under 
23 this Act, the amount exempted shall be the interest 
24 net of bond premium amortization;
25   (H) Any income of the partnership which 
26 constitutes personal service income as defined in 
 
 
10300HB4951sam002- 100 -LRB103 38094 HLH 74177 a


1 Section 1348(b)(1) of the Internal Revenue Code (as in 
2 effect December 31, 1981) or a reasonable allowance 
3 for compensation paid or accrued for services rendered 
4 by partners to the partnership, whichever is greater; 
5 this subparagraph (H) is exempt from the provisions of 
6 Section 250;
7   (I) An amount equal to all amounts of income 
8 distributable to an entity subject to the Personal 
9 Property Tax Replacement Income Tax imposed by 
10 subsections (c) and (d) of Section 201 of this Act 
11 including amounts distributable to organizations 
12 exempt from federal income tax by reason of Section 
13 501(a) of the Internal Revenue Code; this subparagraph 
14 (I) is exempt from the provisions of Section 250;
15   (J) With the exception of any amounts subtracted 
16 under subparagraph (G), an amount equal to the sum of 
17 all amounts disallowed as deductions by (i) Sections 
18 171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
19 and all amounts of expenses allocable to interest and 
20 disallowed as deductions by Section 265(a)(1) of the 
21 Internal Revenue Code; and (ii) for taxable years 
22 ending on or after August 13, 1999, Sections 
23 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
24 Internal Revenue Code, plus, (iii) for taxable years 
25 ending on or after December 31, 2011, Section 
26 45G(e)(3) of the Internal Revenue Code and, for 
 
 
10300HB4951sam002- 101 -LRB103 38094 HLH 74177 a


1 taxable years ending on or after December 31, 2008, 
2 any amount included in gross income under Section 87 
3 of the Internal Revenue Code; the provisions of this 
4 subparagraph are exempt from the provisions of Section 
5 250;
6   (K) An amount equal to those dividends included in 
7 such total which were paid by a corporation which 
8 conducts business operations in a River Edge 
9 Redevelopment Zone or zones created under the River 
10 Edge Redevelopment Zone Act and conducts substantially 
11 all of its operations from a River Edge Redevelopment 
12 Zone or zones. This subparagraph (K) is exempt from 
13 the provisions of Section 250;
14   (L) An amount equal to any contribution made to a 
15 job training project established pursuant to the Real 
16 Property Tax Increment Allocation Redevelopment Act;
17   (M) An amount equal to those dividends included in 
18 such total that were paid by a corporation that 
19 conducts business operations in a federally designated 
20 Foreign Trade Zone or Sub-Zone and that is designated 
21 a High Impact Business located in Illinois; provided 
22 that dividends eligible for the deduction provided in 
23 subparagraph (K) of paragraph (2) of this subsection 
24 shall not be eligible for the deduction provided under 
25 this subparagraph (M);
26   (N) An amount equal to the amount of the deduction 
 
 
10300HB4951sam002- 102 -LRB103 38094 HLH 74177 a


1 used to compute the federal income tax credit for 
2 restoration of substantial amounts held under claim of 
3 right for the taxable year pursuant to Section 1341 of 
4 the Internal Revenue Code;
5   (O) For taxable years 2001 and thereafter, for the 
6 taxable year in which the bonus depreciation deduction 
7 is taken on the taxpayer's federal income tax return 
8 under subsection (k) of Section 168 of the Internal 
9 Revenue Code and for each applicable taxable year 
10 thereafter, an amount equal to "x", where:
11    (1) "y" equals the amount of the depreciation 
12 deduction taken for the taxable year on the 
13 taxpayer's federal income tax return on property 
14 for which the bonus depreciation deduction was 
15 taken in any year under subsection (k) of Section 
16 168 of the Internal Revenue Code, but not 
17 including the bonus depreciation deduction;
18    (2) for taxable years ending on or before 
19 December 31, 2005, "x" equals "y" multiplied by 30 
20 and then divided by 70 (or "y" multiplied by 
21 0.429); and
22    (3) for taxable years ending after December 
23 31, 2005:
24     (i) for property on which a bonus 
25 depreciation deduction of 30% of the adjusted 
26 basis was taken, "x" equals "y" multiplied by 
 
 
10300HB4951sam002- 103 -LRB103 38094 HLH 74177 a


1 30 and then divided by 70 (or "y" multiplied 
2 by 0.429);
3     (ii) for property on which a bonus 
4 depreciation deduction of 50% of the adjusted 
5 basis was taken, "x" equals "y" multiplied by 
6 1.0;
7     (iii) for property on which a bonus 
8 depreciation deduction of 100% of the adjusted 
9 basis was taken in a taxable year ending on or 
10 after December 31, 2021, "x" equals the 
11 depreciation deduction that would be allowed 
12 on that property if the taxpayer had made the 
13 election under Section 168(k)(7) of the 
14 Internal Revenue Code to not claim bonus 
15 depreciation on that property; and
16     (iv) for property on which a bonus 
17 depreciation deduction of a percentage other 
18 than 30%, 50% or 100% of the adjusted basis 
19 was taken in a taxable year ending on or after 
20 December 31, 2021, "x" equals "y" multiplied 
21 by 100 times the percentage bonus depreciation 
22 on the property (that is, 100(bonus%)) and 
23 then divided by 100 times 1 minus the 
24 percentage bonus depreciation on the property 
25 (that is, 100(1-bonus%)). 
26   The aggregate amount deducted under this 
 
 
10300HB4951sam002- 104 -LRB103 38094 HLH 74177 a


1 subparagraph in all taxable years for any one piece of 
2 property may not exceed the amount of the bonus 
3 depreciation deduction taken on that property on the 
4 taxpayer's federal income tax return under subsection 
5 (k) of Section 168 of the Internal Revenue Code. This 
6 subparagraph (O) is exempt from the provisions of 
7 Section 250;
8   (P) If the taxpayer sells, transfers, abandons, or 
9 otherwise disposes of property for which the taxpayer 
10 was required in any taxable year to make an addition 
11 modification under subparagraph (D-5), then an amount 
12 equal to that addition modification.
13   If the taxpayer continues to own property through 
14 the last day of the last tax year for which a 
15 subtraction is allowed with respect to that property 
16 under subparagraph (O) and for which the taxpayer was 
17 required in any taxable year to make an addition 
18 modification under subparagraph (D-5), then an amount 
19 equal to that addition modification. 
20   The taxpayer is allowed to take the deduction 
21 under this subparagraph only once with respect to any 
22 one piece of property.
23   This subparagraph (P) is exempt from the 
24 provisions of Section 250;
25   (Q) The amount of (i) any interest income (net of 
26 the deductions allocable thereto) taken into account 
 
 
10300HB4951sam002- 105 -LRB103 38094 HLH 74177 a


1 for the taxable year with respect to a transaction 
2 with a taxpayer that is required to make an addition 
3 modification with respect to such transaction under 
4 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
5 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
6 the amount of such addition modification and (ii) any 
7 income from intangible property (net of the deductions 
8 allocable thereto) taken into account for the taxable 
9 year with respect to a transaction with a taxpayer 
10 that is required to make an addition modification with 
11 respect to such transaction under Section 
12 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
13 203(d)(2)(D-8), but not to exceed the amount of such 
14 addition modification. This subparagraph (Q) is exempt 
15 from Section 250; 
16   (R) An amount equal to the interest income taken 
17 into account for the taxable year (net of the 
18 deductions allocable thereto) with respect to 
19 transactions with (i) a foreign person who would be a 
20 member of the taxpayer's unitary business group but 
21 for the fact that the foreign person's business 
22 activity outside the United States is 80% or more of 
23 that person's total business activity and (ii) for 
24 taxable years ending on or after December 31, 2008, to 
25 a person who would be a member of the same unitary 
26 business group but for the fact that the person is 
 
 
10300HB4951sam002- 106 -LRB103 38094 HLH 74177 a


1 prohibited under Section 1501(a)(27) from being 
2 included in the unitary business group because he or 
3 she is ordinarily required to apportion business 
4 income under different subsections of Section 304, but 
5 not to exceed the addition modification required to be 
6 made for the same taxable year under Section 
7 203(d)(2)(D-7) for interest paid, accrued, or 
8 incurred, directly or indirectly, to the same person. 
9 This subparagraph (R) is exempt from Section 250; 
10   (S) An amount equal to the income from intangible 
11 property taken into account for the taxable year (net 
12 of the deductions allocable thereto) with respect to 
13 transactions with (i) a foreign person who would be a 
14 member of the taxpayer's unitary business group but 
15 for the fact that the foreign person's business 
16 activity outside the United States is 80% or more of 
17 that person's total business activity and (ii) for 
18 taxable years ending on or after December 31, 2008, to 
19 a person who would be a member of the same unitary 
20 business group but for the fact that the person is 
21 prohibited under Section 1501(a)(27) from being 
22 included in the unitary business group because he or 
23 she is ordinarily required to apportion business 
24 income under different subsections of Section 304, but 
25 not to exceed the addition modification required to be 
26 made for the same taxable year under Section 
 
 
10300HB4951sam002- 107 -LRB103 38094 HLH 74177 a


1 203(d)(2)(D-8) for intangible expenses and costs paid, 
2 accrued, or incurred, directly or indirectly, to the 
3 same person. This subparagraph (S) is exempt from 
4 Section 250; 
5   (T) For taxable years ending on or after December 
6 31, 2011, in the case of a taxpayer who was required to 
7 add back any insurance premiums under Section 
8 203(d)(2)(D-9), such taxpayer may elect to subtract 
9 that part of a reimbursement received from the 
10 insurance company equal to the amount of the expense 
11 or loss (including expenses incurred by the insurance 
12 company) that would have been taken into account as a 
13 deduction for federal income tax purposes if the 
14 expense or loss had been uninsured. If a taxpayer 
15 makes the election provided for by this subparagraph 
16 (T), the insurer to which the premiums were paid must 
17 add back to income the amount subtracted by the 
18 taxpayer pursuant to this subparagraph (T). This 
19 subparagraph (T) is exempt from the provisions of 
20 Section 250; and 
21   (U) For taxable years beginning on or after 
22 January 1, 2023, for any cannabis establishment 
23 operating in this State and licensed under the 
24 Cannabis Regulation and Tax Act or any cannabis 
25 cultivation center or medical cannabis dispensing 
26 organization operating in this State and licensed 
 
 
10300HB4951sam002- 108 -LRB103 38094 HLH 74177 a


1 under the Compassionate Use of Medical Cannabis 
2 Program Act, an amount equal to the deductions that 
3 were disallowed under Section 280E of the Internal 
4 Revenue Code for the taxable year and that would not be 
5 added back under this subsection. The provisions of 
6 this subparagraph (U) are exempt from the provisions 
7 of Section 250. 

8 (e) Gross income; adjusted gross income; taxable income.
9  (1) In general. Subject to the provisions of paragraph 
10 (2) and subsection (b)(3), for purposes of this Section 
11 and Section 803(e), a taxpayer's gross income, adjusted 
12 gross income, or taxable income for the taxable year shall 
13 mean the amount of gross income, adjusted gross income or 
14 taxable income properly reportable for federal income tax 
15 purposes for the taxable year under the provisions of the 
16 Internal Revenue Code. Taxable income may be less than 
17 zero. However, for taxable years ending on or after 
18 December 31, 1986, net operating loss carryforwards from 
19 taxable years ending prior to December 31, 1986, may not 
20 exceed the sum of federal taxable income for the taxable 
21 year before net operating loss deduction, plus the excess 
22 of addition modifications over subtraction modifications 
23 for the taxable year. For taxable years ending prior to 
24 December 31, 1986, taxable income may never be an amount 
25 in excess of the net operating loss for the taxable year as 
 
 
10300HB4951sam002- 109 -LRB103 38094 HLH 74177 a


1 defined in subsections (c) and (d) of Section 172 of the 
2 Internal Revenue Code, provided that when taxable income 
3 of a corporation (other than a Subchapter S corporation), 
4 trust, or estate is less than zero and addition 
5 modifications, other than those provided by subparagraph 
6 (E) of paragraph (2) of subsection (b) for corporations or 
7 subparagraph (E) of paragraph (2) of subsection (c) for 
8 trusts and estates, exceed subtraction modifications, an 
9 addition modification must be made under those 
10 subparagraphs for any other taxable year to which the 
11 taxable income less than zero (net operating loss) is 
12 applied under Section 172 of the Internal Revenue Code or 
13 under subparagraph (E) of paragraph (2) of this subsection 
14 (e) applied in conjunction with Section 172 of the 
15 Internal Revenue Code.
16  (2) Special rule. For purposes of paragraph (1) of 
17 this subsection, the taxable income properly reportable 
18 for federal income tax purposes shall mean:
19   (A) Certain life insurance companies. In the case 
20 of a life insurance company subject to the tax imposed 
21 by Section 801 of the Internal Revenue Code, life 
22 insurance company taxable income, plus the amount of 
23 distribution from pre-1984 policyholder surplus 
24 accounts as calculated under Section 815a of the 
25 Internal Revenue Code;
26   (B) Certain other insurance companies. In the case 
 
 
10300HB4951sam002- 110 -LRB103 38094 HLH 74177 a


1 of mutual insurance companies subject to the tax 
2 imposed by Section 831 of the Internal Revenue Code, 
3 insurance company taxable income;
4   (C) Regulated investment companies. In the case of 
5 a regulated investment company subject to the tax 
6 imposed by Section 852 of the Internal Revenue Code, 
7 investment company taxable income;
8   (D) Real estate investment trusts. In the case of 
9 a real estate investment trust subject to the tax 
10 imposed by Section 857 of the Internal Revenue Code, 
11 real estate investment trust taxable income;
12   (E) Consolidated corporations. In the case of a 
13 corporation which is a member of an affiliated group 
14 of corporations filing a consolidated income tax 
15 return for the taxable year for federal income tax 
16 purposes, taxable income determined as if such 
17 corporation had filed a separate return for federal 
18 income tax purposes for the taxable year and each 
19 preceding taxable year for which it was a member of an 
20 affiliated group. For purposes of this subparagraph, 
21 the taxpayer's separate taxable income shall be 
22 determined as if the election provided by Section 
23 243(b)(2) of the Internal Revenue Code had been in 
24 effect for all such years;
25   (F) Cooperatives. In the case of a cooperative 
26 corporation or association, the taxable income of such 
 
 
10300HB4951sam002- 111 -LRB103 38094 HLH 74177 a


1 organization determined in accordance with the 
2 provisions of Section 1381 through 1388 of the 
3 Internal Revenue Code, but without regard to the 
4 prohibition against offsetting losses from patronage 
5 activities against income from nonpatronage 
6 activities; except that a cooperative corporation or 
7 association may make an election to follow its federal 
8 income tax treatment of patronage losses and 
9 nonpatronage losses. In the event such election is 
10 made, such losses shall be computed and carried over 
11 in a manner consistent with subsection (a) of Section 
12 207 of this Act and apportioned by the apportionment 
13 factor reported by the cooperative on its Illinois 
14 income tax return filed for the taxable year in which 
15 the losses are incurred. The election shall be 
16 effective for all taxable years with original returns 
17 due on or after the date of the election. In addition, 
18 the cooperative may file an amended return or returns, 
19 as allowed under this Act, to provide that the 
20 election shall be effective for losses incurred or 
21 carried forward for taxable years occurring prior to 
22 the date of the election. Once made, the election may 
23 only be revoked upon approval of the Director. The 
24 Department shall adopt rules setting forth 
25 requirements for documenting the elections and any 
26 resulting Illinois net loss and the standards to be 
 
 
10300HB4951sam002- 112 -LRB103 38094 HLH 74177 a


1 used by the Director in evaluating requests to revoke 
2 elections. Public Act 96-932 is declaratory of 
3 existing law; 
4   (G) Subchapter S corporations. In the case of: (i) 
5 a Subchapter S corporation for which there is in 
6 effect an election for the taxable year under Section 
7 1362 of the Internal Revenue Code, the taxable income 
8 of such corporation determined in accordance with 
9 Section 1363(b) of the Internal Revenue Code, except 
10 that taxable income shall take into account those 
11 items which are required by Section 1363(b)(1) of the 
12 Internal Revenue Code to be separately stated; and 
13 (ii) a Subchapter S corporation for which there is in 
14 effect a federal election to opt out of the provisions 
15 of the Subchapter S Revision Act of 1982 and have 
16 applied instead the prior federal Subchapter S rules 
17 as in effect on July 1, 1982, the taxable income of 
18 such corporation determined in accordance with the 
19 federal Subchapter S rules as in effect on July 1, 
20 1982; and
21   (H) Partnerships. In the case of a partnership, 
22 taxable income determined in accordance with Section 
23 703 of the Internal Revenue Code, except that taxable 
24 income shall take into account those items which are 
25 required by Section 703(a)(1) to be separately stated 
26 but which would be taken into account by an individual 
 
 
10300HB4951sam002- 113 -LRB103 38094 HLH 74177 a


1 in calculating his taxable income.
2  (3) Recapture of business expenses on disposition of 
3 asset or business. Notwithstanding any other law to the 
4 contrary, if in prior years income from an asset or 
5 business has been classified as business income and in a 
6 later year is demonstrated to be non-business income, then 
7 all expenses, without limitation, deducted in such later 
8 year and in the 2 immediately preceding taxable years 
9 related to that asset or business that generated the 
10 non-business income shall be added back and recaptured as 
11 business income in the year of the disposition of the 
12 asset or business. Such amount shall be apportioned to 
13 Illinois using the greater of the apportionment fraction 
14 computed for the business under Section 304 of this Act 
15 for the taxable year or the average of the apportionment 
16 fractions computed for the business under Section 304 of 
17 this Act for the taxable year and for the 2 immediately 
18 preceding taxable years. 

19 (f) Valuation limitation amount.
20  (1) In general. The valuation limitation amount 
21 referred to in subsections (a)(2)(G), (c)(2)(I) and 
22 (d)(2)(E) is an amount equal to:
23   (A) The sum of the pre-August 1, 1969 appreciation 
24 amounts (to the extent consisting of gain reportable 
25 under the provisions of Section 1245 or 1250 of the 
 
 
10300HB4951sam002- 114 -LRB103 38094 HLH 74177 a


1 Internal Revenue Code) for all property in respect of 
2 which such gain was reported for the taxable year; 
3 plus
4   (B) The lesser of (i) the sum of the pre-August 1, 
5 1969 appreciation amounts (to the extent consisting of 
6 capital gain) for all property in respect of which 
7 such gain was reported for federal income tax purposes 
8 for the taxable year, or (ii) the net capital gain for 
9 the taxable year, reduced in either case by any amount 
10 of such gain included in the amount determined under 
11 subsection (a)(2)(F) or (c)(2)(H).
12  (2) Pre-August 1, 1969 appreciation amount.
13   (A) If the fair market value of property referred 
14 to in paragraph (1) was readily ascertainable on 
15 August 1, 1969, the pre-August 1, 1969 appreciation 
16 amount for such property is the lesser of (i) the 
17 excess of such fair market value over the taxpayer's 
18 basis (for determining gain) for such property on that 
19 date (determined under the Internal Revenue Code as in 
20 effect on that date), or (ii) the total gain realized 
21 and reportable for federal income tax purposes in 
22 respect of the sale, exchange or other disposition of 
23 such property.
24   (B) If the fair market value of property referred 
25 to in paragraph (1) was not readily ascertainable on 
26 August 1, 1969, the pre-August 1, 1969 appreciation 
 
 
10300HB4951sam002- 115 -LRB103 38094 HLH 74177 a


1 amount for such property is that amount which bears 
2 the same ratio to the total gain reported in respect of 
3 the property for federal income tax purposes for the 
4 taxable year, as the number of full calendar months in 
5 that part of the taxpayer's holding period for the 
6 property ending July 31, 1969 bears to the number of 
7 full calendar months in the taxpayer's entire holding 
8 period for the property.
9   (C) The Department shall prescribe such 
10 regulations as may be necessary to carry out the 
11 purposes of this paragraph.

12 (g) Double deductions. Unless specifically provided 
13otherwise, nothing in this Section shall permit the same item 
14to be deducted more than once.

15 (h) Legislative intention. Except as expressly provided by 
16this Section there shall be no modifications or limitations on 
17the amounts of income, gain, loss or deduction taken into 
18account in determining gross income, adjusted gross income or 
19taxable income for federal income tax purposes for the taxable 
20year, or in the amount of such items entering into the 
21computation of base income and net income under this Act for 
22such taxable year, whether in respect of property values as of 
23August 1, 1969 or otherwise.
24(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
 
 
10300HB4951sam002- 116 -LRB103 38094 HLH 74177 a


1102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 
212-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised 
39-26-23.)

4
ARTICLE 15.


5 Section 15-5. The Property Tax Code is amended by changing 
6Section 18-173 as follows:

7 (35 ILCS 200/18-173)
8 Sec. 18-173. Housing opportunity area abatement program. 
9 (a) For the purpose of promoting access to housing near 
10work and in order to promote economic diversity throughout 
11Illinois and to alleviate the concentration of low-income 
12households in areas of high poverty, a housing opportunity 
13area tax abatement program is created.
14 (b) As used in this Section:
15 "Housing authority" means either a housing authority 
16created under the Housing Authorities Act or other government 
17agency that is authorized by the United States government 
18under the United States Housing Act of 1937 to administer a 
19housing choice voucher program, or the authorized agent of 
20such a housing authority that is authorized to act upon that 
21authority's behalf.
22 "Housing choice voucher" means a tenant voucher issued by 
23a housing authority under Section 8 of the United States 
 
 
10300HB4951sam002- 117 -LRB103 38094 HLH 74177 a


1Housing Act of 1937 and a tenant voucher converted to a 
2project-based voucher by a housing authority.
3 "Housing opportunity area" means a census tract where less 
4than 10% of the residents live below the poverty level, as 
5defined by the United States government and determined by the 
6most recent United States census, that is located within a 
7qualified township, except for census tracts located within 
8any township that is located wholly within a municipality with 
91,000,000 or more inhabitants. A census tract that is located 
10within a township that is located wholly within a municipality 
11with 1,000,000 or more inhabitants is considered a housing 
12opportunity area if less than 12% of the residents of the 
13census tract live below the poverty level.
14 "Housing opportunity unit" means a dwelling unit located 
15in residential property that is located in a housing 
16opportunity area, that is owned by the applicant, and that is 
17rented to and occupied by a tenant who is participating in a 
18housing choice voucher program administered by a housing 
19authority as of January 1st of the tax year for which the 
20application is made.
21 "Qualified units" means the number of housing opportunity 
22units located in the property with the limitation that no more 
23than 2 units or 20% of the total units contained within the 
24property, whichever is greater, may be considered qualified 
25units. Further, no unit may be considered qualified unless the 
26property in which it is contained is in substantial compliance 
 
 
10300HB4951sam002- 118 -LRB103 38094 HLH 74177 a


1with local building codes, and, moreover, no unit may be 
2considered qualified unless it meets the United States 
3Department of Housing and Urban Development's housing quality 
4standards as of the most recent housing authority inspection.
5 "Qualified township" means a township located within a 
6county with 200,000 or more inhabitants whose tax capacity 
7exceeds 80% of the average tax capacity of the county in which 
8it is located, except for townships located within a county 
9with 3,000,000 or more inhabitants, where a qualified township 
10means a township whose tax capacity exceeds 115% of the 
11average tax capacity of the county except for townships 
12located wholly within a municipality with 1,000,000 or more 
13inhabitants. All townships located wholly within a 
14municipality with 1,000,000 or more inhabitants are considered 
15qualified townships.
16 "Tax capacity" means the equalized assessed value of all 
17taxable real estate located within a township or county 
18divided by the total population of that township or county.
19 (c) The owner of property located within a housing 
20opportunity area who has a housing choice voucher contract 
21with a housing authority may apply for a housing opportunity 
22area tax abatement by annually submitting an application to 
23the housing authority that administers the housing choice 
24voucher contract. The application must include the number of 
25housing opportunity units as well as the total number of 
26dwelling units contained within the property. The owner must, 
 
 
10300HB4951sam002- 119 -LRB103 38094 HLH 74177 a


1under oath, self-certify as to the total number of dwelling 
2units in the property and must self-certify that the property 
3is in substantial compliance with local building codes. The 
4housing authority shall annually determine the number of 
5qualified units located within each property for which an 
6application is made.
7 The housing authority shall establish rules and procedures 
8governing the application processes and may charge an 
9application fee. The county clerk may audit the applications 
10to determine that the properties subject to the tax abatement 
11meet the requirements of this Section. The determination of 
12eligibility of a property for the housing opportunity area 
13abatement shall be made annually; however, no property may 
14receive an abatement for more than 10 tax years.
15 (d) The housing authority shall determine housing 
16opportunity areas within its service area and annually deliver 
17to the county clerk, in a manner determined by the county 
18clerk, a list of all properties containing qualified units 
19within that service area by December 31st of the tax year for 
20which the property is eligible for abatement; the list shall 
21include the number of qualified units and the total number of 
22dwelling units for each property.
23 The county clerk shall deliver annually to a housing 
24authority, upon that housing authority's request, the most 
25recent available equalized assessed value for the county as a 
26whole and for those taxing districts and townships so 
 
 
10300HB4951sam002- 120 -LRB103 38094 HLH 74177 a


1specified by the requesting housing authority.
2 (e) The county clerk shall abate the tax attributed to a 
3portion of the property determined to be eligible for a 
4housing opportunity area abatement. The portion eligible for 
5abatement shall be determined by reducing the equalized 
6assessment value by a percentage calculated using the 
7following formula: 19% of the equalized assessed value of the 
8property multiplied by a fraction where the numerator is the 
9number of qualified units and denominator is the total number 
10of dwelling units located within the property.
11 (f) Any municipality, except for municipalities with 
121,000,000 or more inhabitants, may annually petition the 
13county clerk to be excluded from a housing opportunity area if 
14it is able to demonstrate that more than 2.5% of the total 
15residential units located within that municipality are 
16occupied by tenants under the housing choice voucher program. 
17Properties located within an excluded municipality shall not 
18be eligible for the housing opportunity area abatement for the 
19tax year in which the petition is made.
20 (g) Applicability. This Section applies to tax years 2004 
21through 2034 2024, unless extended by law.
22(Source: P.A. 98-957, eff. 8-15-14.)

23
ARTICLE 20.


24 Section 20-5. The Property Tax Code is amended by changing 
 
 
10300HB4951sam002- 121 -LRB103 38094 HLH 74177 a


1Section 21-355 as follows:

2 (35 ILCS 200/21-355)
3 Sec. 21-355. Amount of redemption. Any person desiring to 
4redeem shall deposit an amount specified in this Section with 
5the county clerk of the county in which the property is 
6situated, in legal money of the United States, or by cashier's 
7check, certified check, post office money order or money order 
8issued by a financial institution insured by an agency or 
9instrumentality of the United States, payable to the county 
10clerk of the proper county. The deposit shall be deemed timely 
11only if actually received in person at the county clerk's 
12office prior to the close of business as defined in Section 
133-2007 of the Counties Code on or before the expiration of the 
14period of redemption or by United States mail with a post 
15office cancellation mark dated not less than one day prior to 
16the expiration of the period of redemption. The deposit shall 
17be in an amount equal to the total of the following:
18  (a) the certificate amount, which shall include all 
19 tax principal, special assessments, interest and penalties 
20 paid by the tax purchaser together with costs and fees of 
21 sale and fees paid under Sections 21-295 and 21-315 
22 through 21-335, except for the nonrefundable $80 fee paid, 
23 pursuant to Section 21-295, for each item purchased at the 
24 tax sale;
25  (b) the accrued penalty, computed through the date of 
 
 
10300HB4951sam002- 122 -LRB103 38094 HLH 74177 a


1 redemption as a percentage of the certificate amount, as 
2 follows:
3   (1) if the redemption occurs on or before the 
4 expiration of 6 months from the date of sale, the 
5 certificate amount times the penalty bid at sale;
6   (2) if the redemption occurs after 6 months from 
7 the date of sale, and on or before the expiration of 12 
8 months from the date of sale, the certificate amount 
9 times 2 times the penalty bid at sale;
10   (3) if the redemption occurs after 12 months from 
11 the date of sale and on or before the expiration of 18 
12 months from the date of sale, the certificate amount 
13 times 3 times the penalty bid at sale;
14   (4) if the redemption occurs after 18 months from 
15 the date of sale and on or before the expiration of 24 
16 months from the date of sale, the certificate amount 
17 times 4 times the penalty bid at sale;
18   (5) if the redemption occurs after 24 months from 
19 the date of sale and on or before the expiration of 30 
20 months from the date of sale, the certificate amount 
21 times 5 times the penalty bid at sale;
22   (6) if the redemption occurs after 30 months from 
23 the date of sale and on or before the expiration of 36 
24 months from the date of sale, the certificate amount 
25 times 6 times the penalty bid at sale.
26  In the event that the property to be redeemed has been 
 
 
10300HB4951sam002- 123 -LRB103 38094 HLH 74177 a


1 purchased under Section 21-405 before January 1, 2024, the 
2 penalty bid shall be 12% per penalty period as set forth in 
3 subparagraphs (1) through (6) of this subsection (b). The 
4 changes to this subdivision (b)(6) made by this amendatory 
5 Act of the 91st General Assembly are not a new enactment, 
6 but declaratory of existing law.
7  For counties with fewer than 3,000,000 inhabitants, if 
8 the property to be redeemed is property with respect to 
9 which a tax lien or certificate is acquired after January 
10 1, 2024 by the county as trustee pursuant to Section 
11 21-90, the penalty bid at sale shall accrue according to 
12 the penalty periods established in subparagraphs (1) 
13 through (6) of this subsection (b). 
14  For counties with more than 3,000,000 inhabitants, if 
15 If the property to be redeemed is property with respect to 
16 which a tax lien or certificate is acquired on or after 
17 January 1, 2024 by the county as trustee pursuant to 
18 Section 21-90, the penalty bid is 0.75% and shall accrue 
19 monthly instead of according to the penalty periods 
20 established in subparagraphs (1) through (6) of this 
21 subsection (b). 
22  (c) The total of all taxes, special assessments, 
23 accrued interest on those taxes and special assessments 
24 and costs charged in connection with the payment of those 
25 taxes or special assessments, except for the nonrefundable 
26 $80 fee paid, pursuant to Section 21-295, for each item 
 
 
10300HB4951sam002- 124 -LRB103 38094 HLH 74177 a


1 purchased at the tax sale, which have been paid by the tax 
2 certificate holder on or after the date those taxes or 
3 special assessments became delinquent together with 12% 
4 penalty on each amount so paid for each year or portion 
5 thereof intervening between the date of that payment and 
6 the date of redemption. In counties with less than 
7 3,000,000 inhabitants, however, a tax certificate holder 
8 may not pay all or part of an installment of a subsequent 
9 tax or special assessment for any year, nor shall any 
10 tender of such a payment be accepted, until after the 
11 second or final installment of the subsequent tax or 
12 special assessment has become delinquent or until after 
13 the holder of the certificate of purchase has filed a 
14 petition for a tax deed under Section 22.30. The person 
15 redeeming shall also pay the amount of interest charged on 
16 the subsequent tax or special assessment and paid as a 
17 penalty by the tax certificate holder. This amendatory Act 
18 of 1995 applies to tax years beginning with the 1995 
19 taxes, payable in 1996, and thereafter.
20  (d) Any amount paid to redeem a forfeiture occurring 
21 before January 1, 2024 but after the tax sale together 
22 with 12% penalty thereon for each year or portion thereof 
23 intervening between the date of the forfeiture redemption 
24 and the date of redemption from the sale.
25  (e) Any amount paid by the certificate holder for 
26 redemption of a subsequently occurring tax sale, including 
 
 
10300HB4951sam002- 125 -LRB103 38094 HLH 74177 a


1 tax liens or certificates held by the county as trustee, 
2 pursuant to Section 21-90.
3  (f) All fees paid to the county clerk under Section 
4 22-5.
5  (g) All fees paid to the registrar of titles incident 
6 to registering the tax certificate in compliance with the 
7 Registered Titles (Torrens) Act.
8  (h) All fees paid to the circuit clerk and the 
9 sheriff, a licensed or registered private detective, or 
10 the coroner in connection with the filing of the petition 
11 for tax deed and service of notices under Sections 22-15 
12 through 22-30 and 22-40 in addition to (1) a fee of $35 if 
13 a petition for tax deed has been filed, which fee shall be 
14 posted to the tax judgement, sale, redemption, and 
15 forfeiture record, to be paid to the purchaser or his or 
16 her assignee; (2) a fee of $4 if a notice under Section 
17 22-5 has been filed, which fee shall be posted to the tax 
18 judgment, sale, redemption, and forfeiture record, to be 
19 paid to the purchaser or his or her assignee; (3) all costs 
20 paid to record a lis pendens notice in connection with 
21 filing a petition under this Code; and (4) if a petition 
22 for tax deed has been filed, all fees up to $150 per 
23 redemption paid to a registered or licensed title 
24 insurance company or title insurance agent for a title 
25 search to identify all owners, parties interested, and 
26 occupants of the property, to be paid to the purchaser or 
 
 
10300HB4951sam002- 126 -LRB103 38094 HLH 74177 a


1 his or her assignee. The fees in (1) and (2) of this 
2 paragraph (h) shall be exempt from the posting 
3 requirements of Section 21-360. The costs incurred in 
4 causing notices to be served by a licensed or registered 
5 private detective under Section 22-15, may not exceed the 
6 amount that the sheriff would be authorized by law to 
7 charge if those notices had been served by the sheriff.
8  (i) All fees paid for publication of notice of the tax 
9 sale in accordance with Section 22-20.
10  (j) All sums paid to any county, city, village or 
11 incorporated town for reimbursement under Section 22-35.
12  (k) All costs and expenses of receivership under 
13 Section 21-410, to the extent that these costs and 
14 expenses exceed any income from the property in question, 
15 if the costs and expenditures have been approved by the 
16 court appointing the receiver and a certified copy of the 
17 order or approval is filed and posted by the certificate 
18 holder with the county clerk. Only actual costs expended 
19 may be posted on the tax judgment, sale, redemption and 
20 forfeiture record.
21(Source: P.A. 103-555, eff. 1-1-24.)

22
ARTICLE 25.


23 Section 25-5. The Property Tax Code is amended by changing 
24Section 20-15 as follows:

 
 
10300HB4951sam002- 127 -LRB103 38094 HLH 74177 a


1 (35 ILCS 200/20-15)
2 Sec. 20-15. Information on bill or separate statement. 
3There shall be printed on each bill, or on a separate slip 
4which shall be mailed with the bill:
5  (a) a statement itemizing the rate at which taxes have 
6 been extended for each of the taxing districts in the 
7 county in whose district the property is located, and in 
8 those counties utilizing electronic data processing 
9 equipment the dollar amount of tax due from the person 
10 assessed allocable to each of those taxing districts, 
11 including a separate statement of the dollar amount of tax 
12 due which is allocable to a tax levied under the Illinois 
13 Local Library Act or to any other tax levied by a 
14 municipality or township for public library purposes,
15  (b) a separate statement for each of the taxing 
16 districts of the dollar amount of tax due which is 
17 allocable to a tax levied under the Illinois Pension Code 
18 or to any other tax levied by a municipality or township 
19 for public pension or retirement purposes,
20  (b-5) a list of each tax increment financing (TIF) 
21 district in which the property is located and the dollar 
22 amount of tax due that is allocable to the TIF district, 
23  (c) the total tax rate,
24  (d) the total amount of tax due, and
25  (e) the amount by which the total tax and the tax 
 
 
10300HB4951sam002- 128 -LRB103 38094 HLH 74177 a


1 allocable to each taxing district differs from the 
2 taxpayer's last prior tax bill.
3 The county treasurer shall ensure that only those taxing 
4districts in which a parcel of property is located shall be 
5listed on the bill for that property.
6 In all counties the statement shall also provide:
7  (1) the property index number or other suitable 
8 description,
9  (2) the assessment of the property,
10  (3) the statutory amount of each homestead exemption 
11 applied to the property, 
12  (4) the assessed value of the property after 
13 application of all homestead exemptions, 
14  (5) the equalization factors imposed by the county and 
15 by the Department, and
16  (6) the equalized assessment resulting from the 
17 application of the equalization factors to the basic 
18 assessment.
19 In all counties which do not classify property for 
20purposes of taxation, for property on which a single family 
21residence is situated the statement shall also include a 
22statement to reflect the fair cash value determined for the 
23property. In all counties which classify property for purposes 
24of taxation in accordance with Section 4 of Article IX of the 
25Illinois Constitution, for parcels of residential property in 
26the lowest assessment classification the statement shall also 
 
 
10300HB4951sam002- 129 -LRB103 38094 HLH 74177 a


1include a statement to reflect the fair cash value determined 
2for the property.
3 In all counties, the statement must include information 
4that certain taxpayers may be eligible for tax exemptions, 
5abatements, and other assistance programs and that, for more 
6information, taxpayers should consult with the office of their 
7township or county assessor and with the Illinois Department 
8of Revenue. For bills mailed on or after January 1, 2026, the 
9statement must include, in bold face type, a list of 
10exemptions available to taxpayers and contact information for 
11the chief county assessment officer. 
12 In counties which use the estimated or accelerated billing 
13methods, these statements shall only be provided with the 
14final installment of taxes due. The provisions of this Section 
15create a mandatory statutory duty. They are not merely 
16directory or discretionary. The failure or neglect of the 
17collector to mail the bill, or the failure of the taxpayer to 
18receive the bill, shall not affect the validity of any tax, or 
19the liability for the payment of any tax.
20(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)

21
ARTICLE 30.


22 Section 30-5. The Property Tax Code is amended by changing 
23Section 30-25 as follows:

 
 
10300HB4951sam002- 130 -LRB103 38094 HLH 74177 a


1 (35 ILCS 200/30-25)
2 Sec. 30-25. Distributions from account. 
3 (a) At the direction of the corporate authorities of a 
4taxing district, the treasurer of the taxing district shall 
5disburse the amounts held in the tax reimbursement account. 
6Unless the taxing district has divided the moneys as provided 
7in subsection (b), disbursements shall be made to all of the 
8owners of taxable homestead property within the taxing 
9district. Each owner of taxable homestead property shall 
10receive a proportionate share of the total disbursement based 
11on the amount of ad valorem taxes on taxable homestead 
12property paid by the owner to the taxing district under the 
13most recent tax bill.
14 (b) The corporate authorities of a taxing district may 
15direct the treasurer to divide the moneys deposited into the 
16account into 2 separate pools to be designated the homestead 
17property pool and the commercial or industrial property pool. 
18The amount to be deposited into each pool shall be determined 
19by the corporate authorities of the taxing district, except 
20that at least 50% of the moneys in the account shall be 
21deposited into the homestead property pool. The treasurer 
22shall disburse the amounts held in each pool in the tax 
23reimbursement account at the direction of the corporate 
24authorities. Disbursements from the homestead property pool 
25shall be made to all of the owners of taxable homestead 
26property within the taxing district. Each owner of taxable 
 
 
10300HB4951sam002- 131 -LRB103 38094 HLH 74177 a


1homestead property shall receive a proportionate share of the 
2total disbursement from the pool based on the amount of ad 
3valorem taxes on taxable homestead property paid by the owner 
4to the taxing district under the most recent tax bill. 
5Disbursements from the commercial or industrial property pool 
6shall be made to all of the owners of taxable commercial or 
7industrial property, except (i) those owners whose property is 
8located within a tax increment financing district, (ii) those 
9owners who received a tax incentive as a result of a tax 
10incentivized development established by an intergovernmental 
11agreement to which the taxing district is a party, or (iii) 
12those owners whose property is classified as an apartment 
13building. Each eligible owner of taxable commercial or 
14industrial property shall receive a proportionate share of the 
15total disbursement from the pool based on the amount of ad 
16valorem taxes on taxable commercial or industrial property 
17paid by the owner to the taxing district under the most recent 
18tax bill.
19 (c) In determining the proportionate share of each owner 
20of homestead property, the numerator shall be the amount of 
21taxes on homestead property paid by that owner to the taxing 
22district under the most recent tax bill, and the denominator 
23shall be the aggregate total of all taxes on homestead 
24property paid by all owners to the taxing district under the 
25most recent tax bills.
26 (d) In determining the proportionate share of each owner 
 
 
10300HB4951sam002- 132 -LRB103 38094 HLH 74177 a


1of commercial or industrial property, the numerator shall be 
2the amount of taxes on commercial or industrial property paid 
3by that owner to the taxing district under the most recent tax 
4bill, and the denominator shall be the aggregate total of all 
5taxes on commercial or industrial property paid by all owners 
6to the taxing district under the most recent tax bills less 
7taxes paid on commercial or industrial property located in a 
8tax increment financing district, taxes paid on commercial or 
9industrial property for which the owner received a tax 
10incentive as a result of a tax incentivized development 
11established by an intergovernmental agreement to which the 
12taxing district is a party, and taxes paid on an apartment 
13building.
14 (e) As used in this Section:
15 "Qualified redevelopment costs" means costs advanced by a 
16taxing district to a commercial or industrial property owner 
17to promote economic development when, but for the advancement 
18of the funds, the development would not be financially 
19feasible. 
20 "Tax incentivized development" means an economic 
21development project established by intergovernmental agreement 
22whereby a taxing district advances qualified redevelopment 
23costs to a commercial or industrial property owner. 
24(Source: P.A. 90-471, eff. 8-17-97.)

25
ARTICLE 35.


 
 
10300HB4951sam002- 133 -LRB103 38094 HLH 74177 a


1 Section 35-5. The Property Tax Code is amended by changing 
2Sections 18-15 and 18-190 and by adding Section 18-17 as 
3follows:

4 (35 ILCS 200/18-15)
5 Sec. 18-15. Filing of levies of taxing districts. 
6 (a) Notwithstanding any other law to the contrary, all 
7taxing districts, other than a school district subject to the 
8authority of a Financial Oversight Panel pursuant to Article 
91H of the School Code, and except as provided in Section 18-17, 
10shall annually certify to the county clerk, on or before the 
11last Tuesday in December, the several amounts that they have 
12levied.
13 (a-5) Certification to the county clerk under subsection 
14(a), including any supplemental or supportive documentation, 
15may be submitted electronically. 
16 (b) A school district subject to the authority of a 
17Financial Oversight Panel pursuant to Article 1H of the School 
18Code shall file a certificate of tax levy, necessary to effect 
19the implementation of the approved financial plan and the 
20approval of the Panel, as otherwise provided by this Section, 
21except that the certificate must be certified to the county 
22clerk on or before the first Tuesday in November.
23 (c) If a school district as specified in subsection (b) of 
24this Section fails to certify and return the certificate of 
 
 
10300HB4951sam002- 134 -LRB103 38094 HLH 74177 a


1tax levy, necessary to effect the implementation of the 
2approved financial plan and the approval of the Financial 
3Oversight Panel, to the county clerk on or before the first 
4Tuesday in November, then the Financial Oversight Panel for 
5the school district shall proceed to adopt, certify, and 
6return a certificate of tax levy for the school district to the 
7county clerk on or before the last Tuesday in December. 
8(Source: P.A. 102-625, eff. 1-1-22.)

9 (35 ILCS 200/18-17 new)
10 Sec. 18-17. Supplemental levy for LaMoille Community Unit 
11School District #303. Notwithstanding any other provision of 
12law, LaMoille Community Unit School District #303 may, by 
13ordinance adopted on or before June 30, 2024, amend or 
14supplement its levy for the 2023 tax year for taxes scheduled 
15to be collected in calendar year 2024. The District shall 
16certify the amount of the amended or supplemental levy to the 
17county clerk as soon as possible after the amended or 
18supplemental levy is adopted, and the county clerk shall 
19include those amounts in the extension of taxes for the 2023 
20tax year. In no event shall the amended or supplemental levy 
21adopted under this Section cause the District's property tax 
22rate for the 2023 tax year to exceed the District's limiting 
23rate under the Property Tax Extension Limitation Law or any 
24other limitation on the extension of property taxes applicable 
25to the District. This Section is repealed on January 1, 2025.

 
 
10300HB4951sam002- 135 -LRB103 38094 HLH 74177 a


1 (35 ILCS 200/18-190)
2 Sec. 18-190. Direct referendum; new rate or increased 
3limiting rate. 
4 (a) If a new rate is authorized by statute to be imposed 
5without referendum or is subject to a backdoor referendum, as 
6defined in Section 28-2 of the Election Code, the governing 
7body of the affected taxing district before levying the new 
8rate shall submit the new rate to direct referendum under the 
9provisions of this Section and of Article 28 of the Election 
10Code. Notwithstanding any other provision of law, the levies 
11authorized by Sections 21-110 and 21-110.1 of the Illinois 
12Pension Code shall not be considered new rates; however, 
13nothing in this amendatory Act of the 98th General Assembly 
14authorizes a taxing district to increase its limiting rate or 
15its aggregate extension without first obtaining referendum 
16approval as provided in this Section. Notwithstanding any 
17other provision of law, the levy authorized by Section 18-17 
18is considered part of the annual corporate extension for the 
19taxing district and is not considered a new rate. 
20Notwithstanding the provisions, requirements, or limitations 
21of any other law, any tax levied for the 2005 levy year and all 
22subsequent levy years by any taxing district subject to this 
23Law may be extended at a rate exceeding the rate established 
24for that tax by referendum or statute, provided that the rate 
25does not exceed the statutory ceiling above which the tax is 
 
 
10300HB4951sam002- 136 -LRB103 38094 HLH 74177 a


1not authorized to be further increased either by referendum or 
2in any other manner. Notwithstanding the provisions, 
3requirements, or limitations of any other law, all taxing 
4districts subject to this Law shall follow the provisions of 
5this Section whenever seeking referenda approval after March 
621, 2006 to (i) levy a new tax rate authorized by statute or 
7(ii) increase the limiting rate applicable to the taxing 
8district. All taxing districts subject to this Law are 
9authorized to seek referendum approval of each proposition 
10described and set forth in this Section.
11 The proposition seeking to obtain referendum approval to 
12levy a new tax rate as authorized in clause (i) shall be in 
13substantially the following form:
14  Shall ... (insert legal name, number, if any, and 
15 county or counties of taxing district and geographic or 
16 other common name by which a school or community college 
17 district is known and referred to), Illinois, be 
18 authorized to levy a new tax for ... purposes and have an 
19 additional tax of ...% of the equalized assessed value of 
20 the taxable property therein extended for such purposes?
21The votes must be recorded as "Yes" or "No".
22 The proposition seeking to obtain referendum approval to 
23increase the limiting rate as authorized in clause (ii) shall 
24be in substantially the following form:
25  Shall the limiting rate under the Property Tax 
26 Extension Limitation Law for ... (insert legal name, 
 
 
10300HB4951sam002- 137 -LRB103 38094 HLH 74177 a


1 number, if any, and county or counties of taxing district 
2 and geographic or other common name by which a school or 
3 community college district is known and referred to), 
4 Illinois, be increased by an additional amount equal to 
5 ...% above the limiting rate for the purpose of...(insert 
6 purpose) for levy year ... (insert the most recent levy 
7 year for which the limiting rate of the taxing district is 
8 known at the time the submission of the proposition is 
9 initiated by the taxing district) and be equal to ...% of 
10 the equalized assessed value of the taxable property 
11 therein for levy year(s) (insert each levy year for which 
12 the increase will be applicable, which years must be 
13 consecutive and may not exceed 4)?
14 The votes must be recorded as "Yes" or "No".
15 The ballot for any proposition submitted pursuant to this 
16Section shall have printed thereon, but not as a part of the 
17proposition submitted, only the following supplemental 
18information (which shall be supplied to the election authority 
19by the taxing district) in substantially the following form:
20  (1) The approximate amount of taxes extendable at the 
21 most recently extended limiting rate is $..., and the 
22 approximate amount of taxes extendable if the proposition 
23 is approved is $....
24  (2) For the ... (insert the first levy year for which 
25 the new rate or increased limiting rate will be 
26 applicable) levy year the approximate amount of the 
 
 
10300HB4951sam002- 138 -LRB103 38094 HLH 74177 a


1 additional tax extendable against property containing a 
2 single family residence and having a fair market value at 
3 the time of the referendum of $100,000 is estimated to be 
4 $....
5  (3) Based upon an average annual percentage increase 
6 (or decrease) in the market value of such property of %... 
7 (insert percentage equal to the average annual percentage 
8 increase or decrease for the prior 3 levy years, at the 
9 time the submission of the proposition is initiated by the 
10 taxing district, in the amount of (A) the equalized 
11 assessed value of the taxable property in the taxing 
12 district less (B) the new property included in the 
13 equalized assessed value), the approximate amount of the 
14 additional tax extendable against such property for the 
15 ... levy year is estimated to be $... and for the ... levy 
16 year is estimated to be $ ....
17  (4) If the proposition is approved, the aggregate 
18 extension for ... (insert each levy year for which the 
19 increase will apply) will be determined by the limiting 
20 rate set forth in the proposition, rather than the 
21 otherwise applicable limiting rate calculated under the 
22 provisions of the Property Tax Extension Limitation Law 
23 (commonly known as the Property Tax Cap Law).
24The approximate amount of taxes extendable shown in paragraph 
25(1) shall be computed upon the last known equalized assessed 
26value of taxable property in the taxing district (at the time 
 
 
10300HB4951sam002- 139 -LRB103 38094 HLH 74177 a


1the submission of the proposition is initiated by the taxing 
2district). Paragraph (3) shall be included only if the 
3increased limiting rate will be applicable for more than one 
4levy year and shall list each levy year for which the increased 
5limiting rate will be applicable. The additional tax shown for 
6each levy year shall be the approximate dollar amount of the 
7increase over the amount of the most recently completed 
8extension at the time the submission of the proposition is 
9initiated by the taxing district. The approximate amount of 
10the additional taxes extendable shown in paragraphs (2) and 
11(3) shall be calculated by multiplying $100,000 (the fair 
12market value of the property without regard to any property 
13tax exemptions) by (i) the percentage level of assessment 
14prescribed for that property by statute, or by ordinance of 
15the county board in counties that classify property for 
16purposes of taxation in accordance with Section 4 of Article 
17IX of the Illinois Constitution; (ii) the most recent final 
18equalization factor certified to the county clerk by the 
19Department of Revenue at the time the taxing district 
20initiates the submission of the proposition to the electors; 
21and (iii) either the new rate or the amount by which the 
22limiting rate is to be increased. This amendatory Act of the 
2397th General Assembly is intended to clarify the existing 
24requirements of this Section, and shall not be construed to 
25validate any prior non-compliant referendum language. 
26Paragraph (4) shall be included if the proposition concerns a 
 
 
10300HB4951sam002- 140 -LRB103 38094 HLH 74177 a


1limiting rate increase but shall not be included if the 
2proposition concerns a new rate. Any notice required to be 
3published in connection with the submission of the proposition 
4shall also contain this supplemental information and shall not 
5contain any other supplemental information regarding the 
6proposition. Any error, miscalculation, or inaccuracy in 
7computing any amount set forth on the ballot and in the notice 
8that is not deliberate shall not invalidate or affect the 
9validity of any proposition approved. Notice of the referendum 
10shall be published and posted as otherwise required by law, 
11and the submission of the proposition shall be initiated as 
12provided by law.
13 If a majority of all ballots cast on the proposition are in 
14favor of the proposition, the following provisions shall be 
15applicable to the extension of taxes for the taxing district:
16  (A) a new tax rate shall be first effective for the 
17 levy year in which the new rate is approved;
18  (B) if the proposition provides for a new tax rate, 
19 the taxing district is authorized to levy a tax after the 
20 canvass of the results of the referendum by the election 
21 authority for the purposes for which the tax is 
22 authorized;
23  (C) a limiting rate increase shall be first effective 
24 for the levy year in which the limiting rate increase is 
25 approved, provided that the taxing district may elect to 
26 have a limiting rate increase be effective for the levy 
 
 
10300HB4951sam002- 141 -LRB103 38094 HLH 74177 a


1 year prior to the levy year in which the limiting rate 
2 increase is approved unless the extension of taxes for the 
3 prior levy year occurs 30 days or less after the canvass of 
4 the results of the referendum by the election authority in 
5 any county in which the taxing district is located;
6  (D) in order for the limiting rate increase to be 
7 first effective for the levy year prior to the levy year of 
8 the referendum, the taxing district must certify its 
9 election to have the limiting rate increase be effective 
10 for the prior levy year to the clerk of each county in 
11 which the taxing district is located not more than 2 days 
12 after the date the results of the referendum are canvassed 
13 by the election authority; and
14  (E) if the proposition provides for a limiting rate 
15 increase, the increase may be effective regardless of 
16 whether the proposition is approved before or after the 
17 taxing district adopts or files its levy for any levy 
18 year. 
19 Rates required to extend taxes on levies subject to a 
20backdoor referendum in each year there is a levy are not new 
21rates or rate increases under this Section if a levy has been 
22made for the fund in one or more of the preceding 3 levy years. 
23Changes made by this amendatory Act of 1997 to this Section in 
24reference to rates required to extend taxes on levies subject 
25to a backdoor referendum in each year there is a levy are 
26declarative of existing law and not a new enactment. 
 
 
10300HB4951sam002- 142 -LRB103 38094 HLH 74177 a


1 (b) Whenever other applicable law authorizes a taxing 
2district subject to the limitation with respect to its 
3aggregate extension provided for in this Law to issue bonds or 
4other obligations either without referendum or subject to 
5backdoor referendum, the taxing district may elect for each 
6separate bond issuance to submit the question of the issuance 
7of the bonds or obligations directly to the voters of the 
8taxing district, and if the referendum passes the taxing 
9district is not required to comply with any backdoor 
10referendum procedures or requirements set forth in the other 
11applicable law. The direct referendum shall be initiated by 
12ordinance or resolution of the governing body of the taxing 
13district, and the question shall be certified to the proper 
14election authorities in accordance with the provisions of the 
15Election Code.
16(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)

17 Section 35-10. The School Code is amended by changing 
18Section 17-3.2 as follows:

19 (105 ILCS 5/17-3.2) (from Ch. 122, par. 17-3.2)
20 Sec. 17-3.2. Additional or supplemental budget. 
21 (a) Whenever the voters of a school district have voted in 
22favor of an increase in the annual tax rate for educational or 
23operations and maintenance purposes or both at an election 
24held after the adoption of the annual school budget for any 
 
 
10300HB4951sam002- 143 -LRB103 38094 HLH 74177 a


1fiscal year, the board may adopt or pass during that fiscal 
2year an additional or supplemental budget under the sole 
3authority of this Section by a vote of a majority of the full 
4membership of the board, any other provision of this Article 
5to the contrary notwithstanding, in and by which such 
6additional or supplemental budget the board shall appropriate 
7such additional sums of money as it may find necessary to 
8defray expenses and liabilities of that district to be 
9incurred for educational or operations and maintenance 
10purposes or both of the district during that fiscal year, but 
11not in excess of the additional funds estimated to be 
12available by virtue of such voted increase in the annual tax 
13rate for educational or operations and maintenance purposes or 
14both. Such additional or supplemental budget shall be regarded 
15as an amendment of the annual school budget for the fiscal year 
16in which it is adopted, and the board may levy the additional 
17tax for educational or operations and maintenance purposes or 
18both to equal the amount of the additional sums of money 
19appropriated in that additional or supplemental budget, 
20immediately.
21 (b) Notwithstanding any other provision of law, LaMoille 
22Community Unit School District #303 may adopt an additional or 
23supplemental budget in connection with an amended or 
24supplemental levy adopted under Section 18-17 of the Property 
25Tax Code without receiving the approval of the voters as 
26provided in subsection (a). This subsection (b) is inoperative 
 
 
10300HB4951sam002- 144 -LRB103 38094 HLH 74177 a


1on and after January 1, 2025. 
2(Source: P.A. 86-1334.)

3
ARTICLE 40.


4 Section 40-1. Short title. This Act may be cited as the 
5Local Journalism Sustainability Act. References in this 
6Article to "this Act" mean this Article.

7 Section 40-5. Definitions. 
8 "Award cycle" means the 4 reporting periods for which the 
9employer is awarded a credit under Section 40-10.
10 "Comparable rate" has the meaning given to that term by 
11the Federal Communications Commission in its campaign 
12advertising rate rules.
13 "Department" means the Department of Commerce and Economic 
14Opportunity.
15 "Independently owned" means, as applied to a local news 
16organization, that:
17  (1) the local news organization is not a publicly 
18 traded entity and no more than 5% of the beneficial 
19 ownership of the local news organization is owned, 
20 directly or indirectly, by a publicly traded entity; and
21  (2) the local news organization is not a subsidiary.
22 "Local news organization" means an entity that:
23  (1) engages professionals to create, edit, produce, 
 
 
10300HB4951sam002- 145 -LRB103 38094 HLH 74177 a


1 and distribute original content concerning matters of 
2 public interest through reporting activities, including 
3 conducting interviews, observing current events, or 
4 analyzing documents or other information;
5  (2) has at least one employee who meets all of the 
6 following criteria:
7   (A) the employee is employed by the entity on a 
8 full-time basis for at least 30 hours a week;
9   (B) the employee's job duties for the entity 
10 consist primarily of providing coverage of Illinois or 
11 local Illinois community news as described in 
12 paragraph (C);
13   (C) the employee gathers, prepares, collects, 
14 photographs, writes, edits, reports, or publishes 
15 original local or State community news for 
16 dissemination to the local or State community; and
17   (D) the employee lives within 50 miles of the 
18 coverage area;
19  (3) in the case of a print publication, has published 
20 at least one print publication per month over the previous 
21 12 months and either (i) holds a valid United States 
22 Postal Service periodical permit or (ii) has at least 25% 
23 of its content dedicated to local news;
24  (4) in the case of a digital-only entity, has 
25 published one piece about the community per week over the 
26 previous 12 months and has at least 33% of its digital 
 
 
10300HB4951sam002- 146 -LRB103 38094 HLH 74177 a


1 audience in Illinois, averaged over a 12-month period;
2  (5) in the case of a hybrid entity that has both print 
3 and digital outlets, meets the requirements in either 
4 paragraph (3) or (4) of this definition;
5  (6) has disclosed in its print publication or on its 
6 website its beneficial ownership or, in the case of a 
7 not-for-profit entity, its board of directors;
8  (7) in the case of an entity that maintains tax status 
9 under Section 501(c)(3) of the federal Internal Revenue 
10 Code, has declared the coverage of local or State news as 
11 the stated mission in its filings with the Internal 
12 Revenue Service;
13  (8) has not received any payments of more than 50% of 
14 its gross receipts for the previous year from political 
15 action committees or other entities described in Section 
16 527 of the federal Internal Revenue Code or from an 
17 organization that maintains Section 501(c)(4) or 501(c)(6) 
18 status under the federal Internal Revenue Code, unless 
19 those payments are for political advertising during the 
20 lowest unit windows and using comparable rates; and
21  (9) has not received more than 30% of its revenue from 
22 the previous taxable year from political advertisements 
23 during lowest unit windows.
24 "Local news organization" does not include an organization 
25that received more than $100,000 from organizations described 
26in paragraph (8) during the taxable year or any preceding 
 
 
10300HB4951sam002- 147 -LRB103 38094 HLH 74177 a


1taxable year.
2 "Lowest unit window" has the meaning given to that term by 
3the Federal Communications Commission in its campaign 
4advertising rate rules.
5 "New journalism position" means an employment position 
6that results in a net increase in qualified journalists 
7employed by the local news organization from January 1 of the 
8preceding calendar year compared to January 1 of the calendar 
9year in which a credit under this Act is sought.
10 "Private fund" means a corporation that:
11  (1) would be considered an investment company under 
12 Section 3 of the Investment Company Act of 1940, 15 U.S.C. 
13 80a-3, but for the application of paragraph (1) or (7) of 
14 subsection (c) of that Section;
15  (2) is not a venture capital fund, as defined in 
16 Section 275.203(l)-1 of Title 17 of the Code of Federal 
17 Regulations, as in effect on the effective date of this 
18 Act; and
19  (3) is not an institution selected under Section 107 
20 of the federal Community Development Banking and Financial 
21 Institutions Act of 1994.
22 "Qualified journalist" means a person who:
23  (1) is employed for an average of at least 30 hours per 
24 week; and 
25  (2) is responsible for gathering, developing, 
26 preparing, directing the recording of, producing, 
 
 
10300HB4951sam002- 148 -LRB103 38094 HLH 74177 a


1 collecting, photographing, recording, writing, editing, 
2 reporting, designing, presenting, distributing, or 
3 publishing original news or information that concerns 
4 local matters of public interest.
5 "Reporting period" means the quarter for which a return is 
6required to be filed under Article 7 of the Illinois Income Tax 
7Act.

8 Section 40-10. Credit award. For reporting periods that 
9begin on or after January 1, 2025 and before January 1, 2030, 
10employers, including employers that maintain tax status under 
11Section 501(c)(3) of the federal Internal Revenue Code, that 
12are local news organizations and that are required to deduct 
13and withhold taxes as provided in Article 7 of the Illinois 
14Income Tax Act are eligible to receive a credit against 
15payments due under Section 704A of the Illinois Income Tax 
16Act. The credit shall be $15,000 per qualified journalist 
17employed and paid by the employer during the 12-month period 
18immediately preceding the date on which the employer applies 
19for a credit under this Section. An additional credit of 
20$10,000 shall be awarded against payments due under Section 
21704A of the Illinois Income Tax Act for each qualified 
22journalist who fills a new journalism position for the 
23employer during the 12-month period immediately preceding the 
24date on which the employer applies for a credit under this 
25Section. No more than $150,000 in credits under this Act may be 
 
 
10300HB4951sam002- 149 -LRB103 38094 HLH 74177 a


1awarded to any one local news organization in a single 
2calendar year. If the local news organization is not 
3independently owned or lists a private fund among its 
4beneficial ownership, no more than $250,000 in credits may be 
5awarded in a single calendar year to all local news 
6organizations that share the same ownership interest. The 
7total amount of credits that may be awarded under this Act in 
8any given calendar year may not exceed $5,000,000, of which no 
9more than $4,000,000 may be awarded for the $15,000 credit 
10that applies to qualified journalists, and no more than 
11$1,000,000 may be awarded for the additional $10,000 credit 
12that is awarded for new journalism positions. Credits under 
13this Section shall be awarded by the Department on a 
14first-come, first-served basis.
15 The Department shall issue a credit certificate to each 
16eligible local news organization. Upon issuance of the credit 
17certificate, the Department shall inform the Department of 
18Revenue, in the form and manner as agreed between the 
19agencies, of the date the credit certificate was issued, the 
20name and tax identification number of the recipient, the 
21amount of the credit, and such other information as the 
22Department of Revenue may require. The credit certificate 
23shall be attached to the taxpayer's return.
24 The credit shall be applied to the first reporting period 
25after the credit certificate is issued and that begins on or 
26after January 1, 2025. If the amount of credit exceeds the 
 
 
10300HB4951sam002- 150 -LRB103 38094 HLH 74177 a


1liability for the reporting period, the excess credit shall be 
2refunded to the taxpayer.

3 Section 40-15. Application for local journalism 
4certificate. 
5 (a) In order to qualify for a tax credit award under this 
6Act, an applicant must apply with the Department, in the form 
7and manner required by the Department, for each award cycle 
8for which a credit under this Act is sought, providing 
9information necessary to calculate the tax credit award and 
10any additional information as reasonably required by the 
11Department. A separate application shall be filed for each 
12local news organization. The tax credit award shall be 
13calculated based upon the filing by the applicant on forms 
14prescribed by the Department. The Department shall cooperate 
15with the Department of Revenue as needed in order to determine 
16credit amount and eligibility.
17  (b) Upon satisfactory review of the application, the 
18Department shall issue a local journalism certificate stating 
19the amount of the tax credit award to which the applicant is 
20entitled for the credit period and shall contemporaneously 
21notify the applicant and Department of Revenue upon issuance 
22of the certificate.

23 Section 40-20. Powers of the Department. The Department 
24and the Department of Revenue may, in consultation, adopt any 
 
 
10300HB4951sam002- 151 -LRB103 38094 HLH 74177 a


1rules necessary to administer the provisions of this Act.

2 Section 40-25. Program terms and conditions. Any 
3documentary materials or data made available or received from 
4an applicant by any agent or employee of the Department are 
5confidential and are not public records to the extent that the 
6materials or data consist of commercial or financial 
7information regarding the operation of, or the production of, 
8the applicant or recipient of any tax credit award under this 
9Act.

10 Section 40-900. The Illinois Income Tax Act is amended by 
11changing Section 704A as follows:

12 (35 ILCS 5/704A)
13 Sec. 704A. Employer's return and payment of tax withheld.
14 (a) In general, every employer who deducts and withholds 
15or is required to deduct and withhold tax under this Act on or 
16after January 1, 2008 shall make those payments and returns as 
17provided in this Section.
18 (b) Returns. Every employer shall, in the form and manner 
19required by the Department, make returns with respect to taxes 
20withheld or required to be withheld under this Article 7 for 
21each quarter beginning on or after January 1, 2008, on or 
22before the last day of the first month following the close of 
23that quarter.
 
 
10300HB4951sam002- 152 -LRB103 38094 HLH 74177 a


1 (c) Payments. With respect to amounts withheld or required 
2to be withheld on or after January 1, 2008:
3  (1) Semi-weekly payments. For each calendar year, each 
4 employer who withheld or was required to withhold more 
5 than $12,000 during the one-year period ending on June 30 
6 of the immediately preceding calendar year, payment must 
7 be made:
8   (A) on or before each Friday of the calendar year, 
9 for taxes withheld or required to be withheld on the 
10 immediately preceding Saturday, Sunday, Monday, or 
11 Tuesday;
12   (B) on or before each Wednesday of the calendar 
13 year, for taxes withheld or required to be withheld on 
14 the immediately preceding Wednesday, Thursday, or 
15 Friday.
16  Beginning with calendar year 2011, payments made under 
17 this paragraph (1) of subsection (c) must be made by 
18 electronic funds transfer. 
19  (2) Semi-weekly payments. Any employer who withholds 
20 or is required to withhold more than $12,000 in any 
21 quarter of a calendar year is required to make payments on 
22 the dates set forth under item (1) of this subsection (c) 
23 for each remaining quarter of that calendar year and for 
24 the subsequent calendar year. 
25  (3) Monthly payments. Each employer, other than an 
26 employer described in items (1) or (2) of this subsection, 
 
 
10300HB4951sam002- 153 -LRB103 38094 HLH 74177 a


1 shall pay to the Department, on or before the 15th day of 
2 each month the taxes withheld or required to be withheld 
3 during the immediately preceding month.
4  (4) Payments with returns. Each employer shall pay to 
5 the Department, on or before the due date for each return 
6 required to be filed under this Section, any tax withheld 
7 or required to be withheld during the period for which the 
8 return is due and not previously paid to the Department.
9 (d) Regulatory authority. The Department may, by rule:
10  (1) Permit employers, in lieu of the requirements of 
11 subsections (b) and (c), to file annual returns due on or 
12 before January 31 of the year for taxes withheld or 
13 required to be withheld during the previous calendar year 
14 and, if the aggregate amounts required to be withheld by 
15 the employer under this Article 7 (other than amounts 
16 required to be withheld under Section 709.5) do not exceed 
17 $1,000 for the previous calendar year, to pay the taxes 
18 required to be shown on each such return no later than the 
19 due date for such return.
20  (2) Provide that any payment required to be made under 
21 subsection (c)(1) or (c)(2) is deemed to be timely to the 
22 extent paid by electronic funds transfer on or before the 
23 due date for deposit of federal income taxes withheld 
24 from, or federal employment taxes due with respect to, the 
25 wages from which the Illinois taxes were withheld.
26  (3) Designate one or more depositories to which 
 
 
10300HB4951sam002- 154 -LRB103 38094 HLH 74177 a


1 payment of taxes required to be withheld under this 
2 Article 7 must be paid by some or all employers.
3  (4) Increase the threshold dollar amounts at which 
4 employers are required to make semi-weekly payments under 
5 subsection (c)(1) or (c)(2).
6 (e) Annual return and payment. Every employer who deducts 
7and withholds or is required to deduct and withhold tax from a 
8person engaged in domestic service employment, as that term is 
9defined in Section 3510 of the Internal Revenue Code, may 
10comply with the requirements of this Section with respect to 
11such employees by filing an annual return and paying the taxes 
12required to be deducted and withheld on or before the 15th day 
13of the fourth month following the close of the employer's 
14taxable year. The Department may allow the employer's return 
15to be submitted with the employer's individual income tax 
16return or to be submitted with a return due from the employer 
17under Section 1400.2 of the Unemployment Insurance Act.
18 (f) Magnetic media and electronic filing. With respect to 
19taxes withheld in calendar years prior to 2017, any W-2 Form 
20that, under the Internal Revenue Code and regulations 
21promulgated thereunder, is required to be submitted to the 
22Internal Revenue Service on magnetic media or electronically 
23must also be submitted to the Department on magnetic media or 
24electronically for Illinois purposes, if required by the 
25Department.
26 With respect to taxes withheld in 2017 and subsequent 
 
 
10300HB4951sam002- 155 -LRB103 38094 HLH 74177 a


1calendar years, the Department may, by rule, require that any 
2return (including any amended return) under this Section and 
3any W-2 Form that is required to be submitted to the Department 
4must be submitted on magnetic media or electronically. 
5 The due date for submitting W-2 Forms shall be as 
6prescribed by the Department by rule. 
7 (g) For amounts deducted or withheld after December 31, 
82009, a taxpayer who makes an election under subsection (f) of 
9Section 5-15 of the Economic Development for a Growing Economy 
10Tax Credit Act for a taxable year shall be allowed a credit 
11against payments due under this Section for amounts withheld 
12during the first calendar year beginning after the end of that 
13taxable year equal to the amount of the credit for the 
14incremental income tax attributable to full-time employees of 
15the taxpayer awarded to the taxpayer by the Department of 
16Commerce and Economic Opportunity under the Economic 
17Development for a Growing Economy Tax Credit Act for the 
18taxable year and credits not previously claimed and allowed to 
19be carried forward under Section 211(4) of this Act as 
20provided in subsection (f) of Section 5-15 of the Economic 
21Development for a Growing Economy Tax Credit Act. The credit 
22or credits may not reduce the taxpayer's obligation for any 
23payment due under this Section to less than zero. If the amount 
24of the credit or credits exceeds the total payments due under 
25this Section with respect to amounts withheld during the 
26calendar year, the excess may be carried forward and applied 
 
 
10300HB4951sam002- 156 -LRB103 38094 HLH 74177 a


1against the taxpayer's liability under this Section in the 
2succeeding calendar years as allowed to be carried forward 
3under paragraph (4) of Section 211 of this Act. The credit or 
4credits shall be applied to the earliest year for which there 
5is a tax liability. If there are credits from more than one 
6taxable year that are available to offset a liability, the 
7earlier credit shall be applied first. Each employer who 
8deducts and withholds or is required to deduct and withhold 
9tax under this Act and who retains income tax withholdings 
10under subsection (f) of Section 5-15 of the Economic 
11Development for a Growing Economy Tax Credit Act must make a 
12return with respect to such taxes and retained amounts in the 
13form and manner that the Department, by rule, requires and pay 
14to the Department or to a depositary designated by the 
15Department those withheld taxes not retained by the taxpayer. 
16For purposes of this subsection (g), the term taxpayer shall 
17include taxpayer and members of the taxpayer's unitary 
18business group as defined under paragraph (27) of subsection 
19(a) of Section 1501 of this Act. This Section is exempt from 
20the provisions of Section 250 of this Act. No credit awarded 
21under the Economic Development for a Growing Economy Tax 
22Credit Act for agreements entered into on or after January 1, 
232015 may be credited against payments due under this Section.
24 (g-1) For amounts deducted or withheld after December 31, 
252024, a taxpayer who makes an election under the Reimagining 
26Energy and Vehicles in Illinois Act shall be allowed a credit 
 
 
10300HB4951sam002- 157 -LRB103 38094 HLH 74177 a


1against payments due under this Section for amounts withheld 
2during the first quarterly reporting period beginning after 
3the certificate is issued equal to the portion of the REV 
4Illinois Credit attributable to the incremental income tax 
5attributable to new employees and retained employees as 
6certified by the Department of Commerce and Economic 
7Opportunity pursuant to an agreement with the taxpayer under 
8the Reimagining Energy and Vehicles in Illinois Act for the 
9taxable year. The credit or credits may not reduce the 
10taxpayer's obligation for any payment due under this Section 
11to less than zero. If the amount of the credit or credits 
12exceeds the total payments due under this Section with respect 
13to amounts withheld during the quarterly reporting period, the 
14excess may be carried forward and applied against the 
15taxpayer's liability under this Section in the succeeding 
16quarterly reporting period as allowed to be carried forward 
17under paragraph (4) of Section 211 of this Act. The credit or 
18credits shall be applied to the earliest quarterly reporting 
19period for which there is a tax liability. If there are credits 
20from more than one quarterly reporting period that are 
21available to offset a liability, the earlier credit shall be 
22applied first. Each employer who deducts and withholds or is 
23required to deduct and withhold tax under this Act and who 
24retains income tax withholdings this subsection must make a 
25return with respect to such taxes and retained amounts in the 
26form and manner that the Department, by rule, requires and pay 
 
 
10300HB4951sam002- 158 -LRB103 38094 HLH 74177 a


1to the Department or to a depositary designated by the 
2Department those withheld taxes not retained by the taxpayer. 
3For purposes of this subsection (g-1), the term taxpayer shall 
4include taxpayer and members of the taxpayer's unitary 
5business group as defined under paragraph (27) of subsection 
6(a) of Section 1501 of this Act. This Section is exempt from 
7the provisions of Section 250 of this Act. 
8 (g-2) For amounts deducted or withheld after December 31, 
92024, a taxpayer who makes an election under the Manufacturing 
10Illinois Chips for Real Opportunity (MICRO) Act shall be 
11allowed a credit against payments due under this Section for 
12amounts withheld during the first quarterly reporting period 
13beginning after the certificate is issued equal to the portion 
14of the MICRO Illinois Credit attributable to the incremental 
15income tax attributable to new employees and retained 
16employees as certified by the Department of Commerce and 
17Economic Opportunity pursuant to an agreement with the 
18taxpayer under the Manufacturing Illinois Chips for Real 
19Opportunity (MICRO) Act for the taxable year. The credit or 
20credits may not reduce the taxpayer's obligation for any 
21payment due under this Section to less than zero. If the amount 
22of the credit or credits exceeds the total payments due under 
23this Section with respect to amounts withheld during the 
24quarterly reporting period, the excess may be carried forward 
25and applied against the taxpayer's liability under this 
26Section in the succeeding quarterly reporting period as 
 
 
10300HB4951sam002- 159 -LRB103 38094 HLH 74177 a


1allowed to be carried forward under paragraph (4) of Section 
2211 of this Act. The credit or credits shall be applied to the 
3earliest quarterly reporting period for which there is a tax 
4liability. If there are credits from more than one quarterly 
5reporting period that are available to offset a liability, the 
6earlier credit shall be applied first. Each employer who 
7deducts and withholds or is required to deduct and withhold 
8tax under this Act and who retains income tax withholdings 
9this subsection must make a return with respect to such taxes 
10and retained amounts in the form and manner that the 
11Department, by rule, requires and pay to the Department or to a 
12depositary designated by the Department those withheld taxes 
13not retained by the taxpayer. For purposes of this subsection, 
14the term taxpayer shall include taxpayer and members of the 
15taxpayer's unitary business group as defined under paragraph 
16(27) of subsection (a) of Section 1501 of this Act. This 
17Section is exempt from the provisions of Section 250 of this 
18Act.
19 (h) An employer may claim a credit against payments due 
20under this Section for amounts withheld during the first 
21calendar year ending after the date on which a tax credit 
22certificate was issued under Section 35 of the Small Business 
23Job Creation Tax Credit Act. The credit shall be equal to the 
24amount shown on the certificate, but may not reduce the 
25taxpayer's obligation for any payment due under this Section 
26to less than zero. If the amount of the credit exceeds the 
 
 
10300HB4951sam002- 160 -LRB103 38094 HLH 74177 a


1total payments due under this Section with respect to amounts 
2withheld during the calendar year, the excess may be carried 
3forward and applied against the taxpayer's liability under 
4this Section in the 5 succeeding calendar years. The credit 
5shall be applied to the earliest year for which there is a tax 
6liability. If there are credits from more than one calendar 
7year that are available to offset a liability, the earlier 
8credit shall be applied first. This Section is exempt from the 
9provisions of Section 250 of this Act. 
10 (i) Each employer with 50 or fewer full-time equivalent 
11employees during the reporting period may claim a credit 
12against the payments due under this Section for each qualified 
13employee in an amount equal to the maximum credit allowable. 
14The credit may be taken against payments due for reporting 
15periods that begin on or after January 1, 2020, and end on or 
16before December 31, 2027. An employer may not claim a credit 
17for an employee who has worked fewer than 90 consecutive days 
18immediately preceding the reporting period; however, such 
19credits may accrue during that 90-day period and be claimed 
20against payments under this Section for future reporting 
21periods after the employee has worked for the employer at 
22least 90 consecutive days. In no event may the credit exceed 
23the employer's liability for the reporting period. Each 
24employer who deducts and withholds or is required to deduct 
25and withhold tax under this Act and who retains income tax 
26withholdings under this subsection must make a return with 
 
 
10300HB4951sam002- 161 -LRB103 38094 HLH 74177 a


1respect to such taxes and retained amounts in the form and 
2manner that the Department, by rule, requires and pay to the 
3Department or to a depositary designated by the Department 
4those withheld taxes not retained by the employer. 
5 For each reporting period, the employer may not claim a 
6credit or credits for more employees than the number of 
7employees making less than the minimum or reduced wage for the 
8current calendar year during the last reporting period of the 
9preceding calendar year. Notwithstanding any other provision 
10of this subsection, an employer shall not be eligible for 
11credits for a reporting period unless the average wage paid by 
12the employer per employee for all employees making less than 
13$55,000 during the reporting period is greater than the 
14average wage paid by the employer per employee for all 
15employees making less than $55,000 during the same reporting 
16period of the prior calendar year. 
17 For purposes of this subsection (i): 
18 "Compensation paid in Illinois" has the meaning ascribed 
19to that term under Section 304(a)(2)(B) of this Act.
20 "Employer" and "employee" have the meaning ascribed to 
21those terms in the Minimum Wage Law, except that "employee" 
22also includes employees who work for an employer with fewer 
23than 4 employees. Employers that operate more than one 
24establishment pursuant to a franchise agreement or that 
25constitute members of a unitary business group shall aggregate 
26their employees for purposes of determining eligibility for 
 
 
10300HB4951sam002- 162 -LRB103 38094 HLH 74177 a


1the credit.
2 "Full-time equivalent employees" means the ratio of the 
3number of paid hours during the reporting period and the 
4number of working hours in that period.
5 "Maximum credit" means the percentage listed below of the 
6difference between the amount of compensation paid in Illinois 
7to employees who are paid not more than the required minimum 
8wage reduced by the amount of compensation paid in Illinois to 
9employees who were paid less than the current required minimum 
10wage during the reporting period prior to each increase in the 
11required minimum wage on January 1. If an employer pays an 
12employee more than the required minimum wage and that employee 
13previously earned less than the required minimum wage, the 
14employer may include the portion that does not exceed the 
15required minimum wage as compensation paid in Illinois to 
16employees who are paid not more than the required minimum 
17wage. 
18  (1) 25% for reporting periods beginning on or after 
19 January 1, 2020 and ending on or before December 31, 2020;
20  (2) 21% for reporting periods beginning on or after 
21 January 1, 2021 and ending on or before December 31, 2021;
22  (3) 17% for reporting periods beginning on or after 
23 January 1, 2022 and ending on or before December 31, 2022;
24  (4) 13% for reporting periods beginning on or after 
25 January 1, 2023 and ending on or before December 31, 2023;
26  (5) 9% for reporting periods beginning on or after 
 
 
10300HB4951sam002- 163 -LRB103 38094 HLH 74177 a


1 January 1, 2024 and ending on or before December 31, 2024;
2  (6) 5% for reporting periods beginning on or after 
3 January 1, 2025 and ending on or before December 31, 2025.
4 The amount computed under this subsection may continue to 
5be claimed for reporting periods beginning on or after January 
61, 2026 and: 
7  (A) ending on or before December 31, 2026 for 
8 employers with more than 5 employees; or
9  (B) ending on or before December 31, 2027 for 
10 employers with no more than 5 employees. 
11 "Qualified employee" means an employee who is paid not 
12more than the required minimum wage and has an average wage 
13paid per hour by the employer during the reporting period 
14equal to or greater than his or her average wage paid per hour 
15by the employer during each reporting period for the 
16immediately preceding 12 months. A new qualified employee is 
17deemed to have earned the required minimum wage in the 
18preceding reporting period.
19 "Reporting period" means the quarter for which a return is 
20required to be filed under subsection (b) of this Section. 
21 (j) For reporting periods beginning on or after January 1, 
222023, if a private employer grants all of its employees the 
23option of taking a paid leave of absence of at least 30 days 
24for the purpose of serving as an organ donor or bone marrow 
25donor, then the private employer may take a credit against the 
26payments due under this Section in an amount equal to the 
 
 
10300HB4951sam002- 164 -LRB103 38094 HLH 74177 a


1amount withheld under this Section with respect to wages paid 
2while the employee is on organ donation leave, not to exceed 
3$1,000 in withholdings for each employee who takes organ 
4donation leave. To be eligible for the credit, such a leave of 
5absence must be taken without loss of pay, vacation time, 
6compensatory time, personal days, or sick time for at least 
7the first 30 days of the leave of absence. The private employer 
8shall adopt rules governing organ donation leave, including 
9rules that (i) establish conditions and procedures for 
10requesting and approving leave and (ii) require medical 
11documentation of the proposed organ or bone marrow donation 
12before leave is approved by the private employer. A private 
13employer must provide, in the manner required by the 
14Department, documentation from the employee's medical 
15provider, which the private employer receives from the 
16employee, that verifies the employee's organ donation. The 
17private employer must also provide, in the manner required by 
18the Department, documentation that shows that a qualifying 
19organ donor leave policy was in place and offered to all 
20qualifying employees at the time the leave was taken. For the 
21private employer to receive the tax credit, the employee 
22taking organ donor leave must allow for the applicable medical 
23records to be disclosed to the Department. If the private 
24employer cannot provide the required documentation to the 
25Department, then the private employer is ineligible for the 
26credit under this Section. A private employer must also 
 
 
10300HB4951sam002- 165 -LRB103 38094 HLH 74177 a


1provide, in the form required by the Department, any 
2additional documentation or information required by the 
3Department to administer the credit under this Section. The 
4credit under this subsection (j) shall be taken within one 
5year after the date upon which the organ donation leave 
6begins. If the leave taken spans into a second tax year, the 
7employer qualifies for the allowable credit in the later of 
8the 2 years. If the amount of credit exceeds the tax liability 
9for the year, the excess may be carried and applied to the tax 
10liability for the 3 taxable years following the excess credit 
11year. The tax credit shall be applied to the earliest year for 
12which there is a tax liability. If there are credits for more 
13than one year that are available to offset liability, the 
14earlier credit shall be applied first. 
15 Nothing in this subsection (j) prohibits a private 
16employer from providing an unpaid leave of absence to its 
17employees for the purpose of serving as an organ donor or bone 
18marrow donor; however, if the employer's policy provides for 
19fewer than 30 days of paid leave for organ or bone marrow 
20donation, then the employer shall not be eligible for the 
21credit under this Section. 
22 As used in this subsection (j):
23 "Organ" means any biological tissue of the human body that 
24may be donated by a living donor, including, but not limited 
25to, the kidney, liver, lung, pancreas, intestine, bone, skin, 
26or any subpart of those organs. 
 
 
10300HB4951sam002- 166 -LRB103 38094 HLH 74177 a


1 "Organ donor" means a person from whose body an organ is 
2taken to be transferred to the body of another person. 
3 "Private employer" means a sole proprietorship, 
4corporation, partnership, limited liability company, or other 
5entity with one or more employees. "Private employer" does not 
6include a municipality, county, State agency, or other public 
7employer. 
8 This subsection (j) is exempt from the provisions of 
9Section 250 of this Act.
10 (k) A taxpayer who is issued a certificate under the Local 
11Journalism Sustainability Act for a taxable year shall be 
12allowed a credit against payments due under this Section as 
13provided in that Act. 
14(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; 
15102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, 
16Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff. 
172-3-23.)

18
ARTICLE 45.


19 Section 45-5. The Live Theater Production Tax Credit Act 
20is amended by changing Sections 10-10, 10-20, and 10-40 as 
21follows:

22 (35 ILCS 17/10-10)
23 Sec. 10-10. Definitions. As used in this Act:
 
 
10300HB4951sam002- 167 -LRB103 38094 HLH 74177 a


1 "Accredited theater production" means a for-profit live 
2stage presentation in a qualified production facility, as 
3defined in this Section, that is either (i) a pre-Broadway 
4production or (ii) a long-run production for which the 
5aggregate Illinois labor and marketing expenditures exceed 
6$100,000. For credits awarded under this Act on or after July 
71, 2022 in State Fiscal Year 2023, "accredited theater 
8production" also includes any commercial Broadway touring 
9show. For credits awarded under this Act on or after July 1, 
102024, "accredited theater production" also includes non-profit 
11theater productions. 
12 "Commercial Broadway touring show" means a production that 
13(i) is performed in a qualified production facility and plays 
14in more than 2 other markets in North America outside of 
15Illinois within 12 months of its Illinois presentation and 
16(ii) has Illinois production spending of not less than 
17$100,000, as shown on the applicant's application for the 
18credit. 
19 "Pre-Broadway production" means a live stage production 
20that, (i) in its original or adaptive version, is performed in 
21a qualified production facility with the goal of having a 
22presentation scheduled for Broadway's Theater District in New 
23York City within 12 months after its Illinois presentation and 
24(ii) has Illinois production spending of not less than 
25$100,000, as shown on the applicant's application for the 
26credit.
 
 
10300HB4951sam002- 168 -LRB103 38094 HLH 74177 a


1 "Long-run production" means a live stage production that 
2is performed in a qualified production facility for longer 
3than 8 weeks, with at least 6 performances per week, and 
4includes a production that spans the end of one tax year and 
5the commencement of a new tax year that, in combination, meets 
6the criteria set forth in this definition making it a long-run 
7production eligible for a theater tax credit award in each tax 
8year or portion thereof.
9 "Non-profit theater production" means a live stage 
10production that is at least 75 minutes in length with a written 
11script that (i) is produced by a 501(c)3 non-profit registered 
12in the State of Illinois for at least 5 years, (ii) has 
13Illinois production spending of not less than $10,000, as 
14shown on the applicant's application for the credit, and (iii) 
15has a minimum annual operating budget of $25,000 or more, as 
16shown on the applicant's application for the credit. 
17 "Accredited theater production certificate" means a 
18certificate issued by the Department certifying that the 
19production is an accredited theater production that meets the 
20guidelines of this Act.
21 "Applicant" means a taxpayer that is a theater producer, 
22owner, licensee, operator, or presenter that is presenting or 
23has presented a live stage presentation located within the 
24State of Illinois who:
25  (1) owns or licenses the theatrical rights of the 
26 stage presentation for the Illinois production period; or
 
 
10300HB4951sam002- 169 -LRB103 38094 HLH 74177 a


1  (2) has contracted or will contract directly with the 
2 owner or licensee of the theatrical rights or a person 
3 acting on behalf of the owner or licensee to provide live 
4 performances of the production.
5 An applicant that directly or indirectly owns, controls, 
6or operates multiple qualified production facilities shall be 
7presumed to be and considered for the purposes of this Act to 
8be a single applicant; provided, however, that as to each of 
9the applicant's qualified production facilities, the applicant 
10shall be eligible to separately and contemporaneously (i) 
11apply for and obtain accredited theater production 
12certificates, (ii) stage accredited theater productions, and 
13(iii) apply for and receive a tax credit award certificate for 
14each of the applicant's accredited theater productions 
15performed at each of the applicant's qualified production 
16facilities.
17 "Department" means the Department of Commerce and Economic 
18Opportunity.
19 "Director" means the Director of the Department.
20 "Illinois labor expenditure" means gross salary or wages 
21including, but not limited to, taxes, benefits, and any other 
22consideration incurred or paid to non-talent employees of the 
23applicant for services rendered to and on behalf of the 
24accredited theater production. To qualify as an Illinois labor 
25expenditure, the expenditure must be:
26  (1) incurred or paid by the applicant on or after the 
 
 
10300HB4951sam002- 170 -LRB103 38094 HLH 74177 a


1 effective date of the Act for services related to any 
2 portion of an accredited theater production from its 
3 pre-production stages, including, but not limited to, the 
4 writing of the script, casting, hiring of service 
5 providers, purchases from vendors, marketing, advertising, 
6 public relations, load in, rehearsals, performances, other 
7 accredited theater production related activities, and load 
8 out;
9  (2) directly attributable to the accredited theater 
10 production;
11  (3) limited to the first $100,000 of wages incurred or 
12 paid to each employee of an accredited theater production 
13 in each tax year;
14  (4) included in the federal income tax basis of the 
15 property;
16  (5) paid in the tax year for which the applicant is 
17 claiming the tax credit award, or no later than 60 days 
18 after the end of the tax year;
19  (6) paid to persons residing in Illinois at the time 
20 payments were made; and
21  (7) reasonable in the circumstances.
22 "Illinois production spending" means any and all expenses 
23directly or indirectly incurred relating to an accredited 
24theater production presented in any qualified production 
25facility of the applicant, including, but not limited to, 
26expenditures for:
 
 
10300HB4951sam002- 171 -LRB103 38094 HLH 74177 a


1  (1) national marketing, public relations, and the 
2 creation and placement of print, electronic, television, 
3 billboard, and other forms of advertising; and
4  (2) the construction and fabrication of scenic 
5 materials and elements; provided, however, that the 
6 maximum amount of expenditures attributable to the 
7 construction and fabrication of scenic materials and 
8 elements eligible for a tax credit award shall not exceed 
9 $500,000 per applicant per production in any single tax 
10 year.
11 "Qualified production facility" means a facility located 
12in the State in which live theatrical productions are, or are 
13intended to be, exclusively presented that contains at least 
14one stage, a seating capacity of 1,200 or more seats or, if the 
15live theater production is a non-profit theater production, a 
16seating capacity of 50 or more seats, and dressing rooms, 
17storage areas, and other ancillary amenities necessary for the 
18accredited theater production.
19 "Tax credit award" means the issuance to a taxpayer by the 
20Department of a tax credit award in conformance with Sections 
2110-40 and 10-45 of this Act.
22 "Tax year" means a calendar year for the period January 1 
23to and including December 31.
24(Source: P.A. 102-1112, eff. 12-21-22.)

25 (35 ILCS 17/10-20)
 
 
10300HB4951sam002- 172 -LRB103 38094 HLH 74177 a


1 Sec. 10-20. Tax credit award. Subject to the conditions 
2set forth in this Act, an applicant is entitled to a tax credit 
3award as approved by the Department for qualifying Illinois 
4labor expenditures and Illinois production spending for each 
5tax year in which the applicant is awarded an accredited 
6theater production certificate issued by the Department. The 
7amount of tax credits awarded pursuant to this Act shall not 
8exceed $2,000,000 in any State fiscal year ending on or before 
9June 30, 2022. The , except that the amount of tax credits 
10awarded pursuant to this Act for the State fiscal year ending 
11on June 30, 2023 or the State fiscal year ending on June 30, 
122024 shall not exceed $4,000,000. For the State fiscal year 
13ending on June 30, 2023 and the State fiscal year ending on 
14June 30, 2024, no more than $2,000,000 in credits may be 
15awarded in either of those fiscal years to accredited theater 
16productions that are not commercial Broadway touring shows, 
17and no more than $2,000,000 in credits may be awarded in either 
18of those fiscal years to commercial Broadway touring shows. 
19For State fiscal years ending on or after June 30, 2025, the 
20amount of tax credits awarded under this Act shall not exceed 
21$6,000,000, with no more than $2,000,000 in credits awarded 
22for long-run productions and pre-Broadway productions, no more 
23than $2,000,000 in credits awarded for commercial Broadway 
24touring shows, and no more than $2,000,000 in credits awarded 
25for non-profit theater productions. In the case of credits 
26awarded under this Act for non-profit theater productions, no 
 
 
10300HB4951sam002- 173 -LRB103 38094 HLH 74177 a


1more than $100,000 in credits may be awarded to any single 
2non-profit theater production. Credits shall be awarded on a 
3first-come, first-served basis. Notwithstanding the foregoing, 
4if the amount of credits applied for in any fiscal year exceeds 
5the amount authorized to be awarded under this Section, the 
6excess credit amount shall be awarded in the next fiscal year 
7in which credits remain available for award and shall be 
8treated as having been applied for on the first day of that 
9fiscal year. 
10(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)

11 (35 ILCS 17/10-40)
12 Sec. 10-40. Issuance of Tax Credit Award Certificate. 
13 (a) In order to qualify for a tax credit award under this 
14Act, an applicant must file an application for each accredited 
15theater production at each of the applicant's qualified 
16production facilities, on forms prescribed by the Department, 
17providing information necessary to calculate the tax credit 
18award and any additional information as reasonably required by 
19the Department.
20 (b) Upon satisfactory review of the application, the 
21Department shall issue a tax credit award certificate stating 
22the amount of the tax credit award to which the applicant is 
23entitled for that tax year and shall contemporaneously notify 
24the applicant and Illinois Department of Revenue in accordance 
25with Section 222 of the Illinois Income Tax Act or, if the 
 
 
10300HB4951sam002- 174 -LRB103 38094 HLH 74177 a


1applicant is a nonprofit theater production, subsection (k) of 
2Section 704A of the Illinois Income Tax Act, as applicable.
3(Source: P.A. 97-636, eff. 6-1-12.)

4 Section 45-10. The Illinois Income Tax Act is amended by 
5changing Sections 222 and 704A as follows:

6 (35 ILCS 5/222)
7 Sec. 222. Live theater production credit. 
8 (a) For tax years beginning on or after January 1, 2012 and 
9beginning prior to January 1, 2027, a taxpayer who has 
10received a tax credit award under the Live Theater Production 
11Tax Credit Act for a long-run production, a pre-Broadway 
12production, or a commercial Broadway touring show is entitled 
13to a credit against the taxes imposed under subsections (a) 
14and (b) of Section 201 of this Act in an amount determined 
15under that Act by the Department of Commerce and Economic 
16Opportunity.
17 (b) For taxable years ending before December 31, 2023, if 
18the taxpayer is a partnership, limited liability partnership, 
19limited liability company, or Subchapter S corporation, the 
20tax credit award is allowed to the partners, unit holders, or 
21shareholders in accordance with the determination of income 
22and distributive share of income under Sections 702 and 704 
23and Subchapter S of the Internal Revenue Code. For taxable 
24years ending on or after December 31, 2023, if the taxpayer is 
 
 
10300HB4951sam002- 175 -LRB103 38094 HLH 74177 a


1a partnership or Subchapter S corporation, then the provisions 
2of Section 251 apply.
3 (c) A sale, assignment, or transfer of the tax credit 
4award may be made by the taxpayer earning the credit within one 
5year after the credit is awarded in accordance with rules 
6adopted by the Department of Commerce and Economic 
7Opportunity. 
8 (d) The Department of Revenue, in cooperation with the 
9Department of Commerce and Economic Opportunity, shall adopt 
10rules to enforce and administer the provisions of this 
11Section. 
12 (e) The tax credit award may not be carried back. If the 
13amount of the credit exceeds the tax liability for the year, 
14the excess may be carried forward and applied to the tax 
15liability of the 5 tax years following the excess credit year. 
16The tax credit award shall be applied to the earliest year for 
17which there is a tax liability. If there are credits from more 
18than one tax year that are available to offset liability, the 
19earlier credit shall be applied first. In no event may a credit 
20under this Section reduce the taxpayer's liability to less 
21than zero. 
22(Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24.)

23 (35 ILCS 5/704A)
24 Sec. 704A. Employer's return and payment of tax withheld.
25 (a) In general, every employer who deducts and withholds 
 
 
10300HB4951sam002- 176 -LRB103 38094 HLH 74177 a


1or is required to deduct and withhold tax under this Act on or 
2after January 1, 2008 shall make those payments and returns as 
3provided in this Section.
4 (b) Returns. Every employer shall, in the form and manner 
5required by the Department, make returns with respect to taxes 
6withheld or required to be withheld under this Article 7 for 
7each quarter beginning on or after January 1, 2008, on or 
8before the last day of the first month following the close of 
9that quarter.
10 (c) Payments. With respect to amounts withheld or required 
11to be withheld on or after January 1, 2008:
12  (1) Semi-weekly payments. For each calendar year, each 
13 employer who withheld or was required to withhold more 
14 than $12,000 during the one-year period ending on June 30 
15 of the immediately preceding calendar year, payment must 
16 be made:
17   (A) on or before each Friday of the calendar year, 
18 for taxes withheld or required to be withheld on the 
19 immediately preceding Saturday, Sunday, Monday, or 
20 Tuesday;
21   (B) on or before each Wednesday of the calendar 
22 year, for taxes withheld or required to be withheld on 
23 the immediately preceding Wednesday, Thursday, or 
24 Friday.
25  Beginning with calendar year 2011, payments made under 
26 this paragraph (1) of subsection (c) must be made by 
 
 
10300HB4951sam002- 177 -LRB103 38094 HLH 74177 a


1 electronic funds transfer. 
2  (2) Semi-weekly payments. Any employer who withholds 
3 or is required to withhold more than $12,000 in any 
4 quarter of a calendar year is required to make payments on 
5 the dates set forth under item (1) of this subsection (c) 
6 for each remaining quarter of that calendar year and for 
7 the subsequent calendar year. 
8  (3) Monthly payments. Each employer, other than an 
9 employer described in items (1) or (2) of this subsection, 
10 shall pay to the Department, on or before the 15th day of 
11 each month the taxes withheld or required to be withheld 
12 during the immediately preceding month.
13  (4) Payments with returns. Each employer shall pay to 
14 the Department, on or before the due date for each return 
15 required to be filed under this Section, any tax withheld 
16 or required to be withheld during the period for which the 
17 return is due and not previously paid to the Department.
18 (d) Regulatory authority. The Department may, by rule:
19  (1) Permit employers, in lieu of the requirements of 
20 subsections (b) and (c), to file annual returns due on or 
21 before January 31 of the year for taxes withheld or 
22 required to be withheld during the previous calendar year 
23 and, if the aggregate amounts required to be withheld by 
24 the employer under this Article 7 (other than amounts 
25 required to be withheld under Section 709.5) do not exceed 
26 $1,000 for the previous calendar year, to pay the taxes 
 
 
10300HB4951sam002- 178 -LRB103 38094 HLH 74177 a


1 required to be shown on each such return no later than the 
2 due date for such return.
3  (2) Provide that any payment required to be made under 
4 subsection (c)(1) or (c)(2) is deemed to be timely to the 
5 extent paid by electronic funds transfer on or before the 
6 due date for deposit of federal income taxes withheld 
7 from, or federal employment taxes due with respect to, the 
8 wages from which the Illinois taxes were withheld.
9  (3) Designate one or more depositories to which 
10 payment of taxes required to be withheld under this 
11 Article 7 must be paid by some or all employers.
12  (4) Increase the threshold dollar amounts at which 
13 employers are required to make semi-weekly payments under 
14 subsection (c)(1) or (c)(2).
15 (e) Annual return and payment. Every employer who deducts 
16and withholds or is required to deduct and withhold tax from a 
17person engaged in domestic service employment, as that term is 
18defined in Section 3510 of the Internal Revenue Code, may 
19comply with the requirements of this Section with respect to 
20such employees by filing an annual return and paying the taxes 
21required to be deducted and withheld on or before the 15th day 
22of the fourth month following the close of the employer's 
23taxable year. The Department may allow the employer's return 
24to be submitted with the employer's individual income tax 
25return or to be submitted with a return due from the employer 
26under Section 1400.2 of the Unemployment Insurance Act.
 
 
10300HB4951sam002- 179 -LRB103 38094 HLH 74177 a


1 (f) Magnetic media and electronic filing. With respect to 
2taxes withheld in calendar years prior to 2017, any W-2 Form 
3that, under the Internal Revenue Code and regulations 
4promulgated thereunder, is required to be submitted to the 
5Internal Revenue Service on magnetic media or electronically 
6must also be submitted to the Department on magnetic media or 
7electronically for Illinois purposes, if required by the 
8Department.
9 With respect to taxes withheld in 2017 and subsequent 
10calendar years, the Department may, by rule, require that any 
11return (including any amended return) under this Section and 
12any W-2 Form that is required to be submitted to the Department 
13must be submitted on magnetic media or electronically. 
14 The due date for submitting W-2 Forms shall be as 
15prescribed by the Department by rule. 
16 (g) For amounts deducted or withheld after December 31, 
172009, a taxpayer who makes an election under subsection (f) of 
18Section 5-15 of the Economic Development for a Growing Economy 
19Tax Credit Act for a taxable year shall be allowed a credit 
20against payments due under this Section for amounts withheld 
21during the first calendar year beginning after the end of that 
22taxable year equal to the amount of the credit for the 
23incremental income tax attributable to full-time employees of 
24the taxpayer awarded to the taxpayer by the Department of 
25Commerce and Economic Opportunity under the Economic 
26Development for a Growing Economy Tax Credit Act for the 
 
 
10300HB4951sam002- 180 -LRB103 38094 HLH 74177 a


1taxable year and credits not previously claimed and allowed to 
2be carried forward under Section 211(4) of this Act as 
3provided in subsection (f) of Section 5-15 of the Economic 
4Development for a Growing Economy Tax Credit Act. The credit 
5or credits may not reduce the taxpayer's obligation for any 
6payment due under this Section to less than zero. If the amount 
7of the credit or credits exceeds the total payments due under 
8this Section with respect to amounts withheld during the 
9calendar year, the excess may be carried forward and applied 
10against the taxpayer's liability under this Section in the 
11succeeding calendar years as allowed to be carried forward 
12under paragraph (4) of Section 211 of this Act. The credit or 
13credits shall be applied to the earliest year for which there 
14is a tax liability. If there are credits from more than one 
15taxable year that are available to offset a liability, the 
16earlier credit shall be applied first. Each employer who 
17deducts and withholds or is required to deduct and withhold 
18tax under this Act and who retains income tax withholdings 
19under subsection (f) of Section 5-15 of the Economic 
20Development for a Growing Economy Tax Credit Act must make a 
21return with respect to such taxes and retained amounts in the 
22form and manner that the Department, by rule, requires and pay 
23to the Department or to a depositary designated by the 
24Department those withheld taxes not retained by the taxpayer. 
25For purposes of this subsection (g), the term taxpayer shall 
26include taxpayer and members of the taxpayer's unitary 
 
 
10300HB4951sam002- 181 -LRB103 38094 HLH 74177 a


1business group as defined under paragraph (27) of subsection 
2(a) of Section 1501 of this Act. This Section is exempt from 
3the provisions of Section 250 of this Act. No credit awarded 
4under the Economic Development for a Growing Economy Tax 
5Credit Act for agreements entered into on or after January 1, 
62015 may be credited against payments due under this Section.
7 (g-1) For amounts deducted or withheld after December 31, 
82024, a taxpayer who makes an election under the Reimagining 
9Energy and Vehicles in Illinois Act shall be allowed a credit 
10against payments due under this Section for amounts withheld 
11during the first quarterly reporting period beginning after 
12the certificate is issued equal to the portion of the REV 
13Illinois Credit attributable to the incremental income tax 
14attributable to new employees and retained employees as 
15certified by the Department of Commerce and Economic 
16Opportunity pursuant to an agreement with the taxpayer under 
17the Reimagining Energy and Vehicles in Illinois Act for the 
18taxable year. The credit or credits may not reduce the 
19taxpayer's obligation for any payment due under this Section 
20to less than zero. If the amount of the credit or credits 
21exceeds the total payments due under this Section with respect 
22to amounts withheld during the quarterly reporting period, the 
23excess may be carried forward and applied against the 
24taxpayer's liability under this Section in the succeeding 
25quarterly reporting period as allowed to be carried forward 
26under paragraph (4) of Section 211 of this Act. The credit or 
 
 
10300HB4951sam002- 182 -LRB103 38094 HLH 74177 a


1credits shall be applied to the earliest quarterly reporting 
2period for which there is a tax liability. If there are credits 
3from more than one quarterly reporting period that are 
4available to offset a liability, the earlier credit shall be 
5applied first. Each employer who deducts and withholds or is 
6required to deduct and withhold tax under this Act and who 
7retains income tax withholdings this subsection must make a 
8return with respect to such taxes and retained amounts in the 
9form and manner that the Department, by rule, requires and pay 
10to the Department or to a depositary designated by the 
11Department those withheld taxes not retained by the taxpayer. 
12For purposes of this subsection (g-1), the term taxpayer shall 
13include taxpayer and members of the taxpayer's unitary 
14business group as defined under paragraph (27) of subsection 
15(a) of Section 1501 of this Act. This Section is exempt from 
16the provisions of Section 250 of this Act. 
17 (g-2) For amounts deducted or withheld after December 31, 
182024, a taxpayer who makes an election under the Manufacturing 
19Illinois Chips for Real Opportunity (MICRO) Act shall be 
20allowed a credit against payments due under this Section for 
21amounts withheld during the first quarterly reporting period 
22beginning after the certificate is issued equal to the portion 
23of the MICRO Illinois Credit attributable to the incremental 
24income tax attributable to new employees and retained 
25employees as certified by the Department of Commerce and 
26Economic Opportunity pursuant to an agreement with the 
 
 
10300HB4951sam002- 183 -LRB103 38094 HLH 74177 a


1taxpayer under the Manufacturing Illinois Chips for Real 
2Opportunity (MICRO) Act for the taxable year. The credit or 
3credits may not reduce the taxpayer's obligation for any 
4payment due under this Section to less than zero. If the amount 
5of the credit or credits exceeds the total payments due under 
6this Section with respect to amounts withheld during the 
7quarterly reporting period, the excess may be carried forward 
8and applied against the taxpayer's liability under this 
9Section in the succeeding quarterly reporting period as 
10allowed to be carried forward under paragraph (4) of Section 
11211 of this Act. The credit or credits shall be applied to the 
12earliest quarterly reporting period for which there is a tax 
13liability. If there are credits from more than one quarterly 
14reporting period that are available to offset a liability, the 
15earlier credit shall be applied first. Each employer who 
16deducts and withholds or is required to deduct and withhold 
17tax under this Act and who retains income tax withholdings 
18this subsection must make a return with respect to such taxes 
19and retained amounts in the form and manner that the 
20Department, by rule, requires and pay to the Department or to a 
21depositary designated by the Department those withheld taxes 
22not retained by the taxpayer. For purposes of this subsection, 
23the term taxpayer shall include taxpayer and members of the 
24taxpayer's unitary business group as defined under paragraph 
25(27) of subsection (a) of Section 1501 of this Act. This 
26Section is exempt from the provisions of Section 250 of this 
 
 
10300HB4951sam002- 184 -LRB103 38094 HLH 74177 a


1Act.
2 (h) An employer may claim a credit against payments due 
3under this Section for amounts withheld during the first 
4calendar year ending after the date on which a tax credit 
5certificate was issued under Section 35 of the Small Business 
6Job Creation Tax Credit Act. The credit shall be equal to the 
7amount shown on the certificate, but may not reduce the 
8taxpayer's obligation for any payment due under this Section 
9to less than zero. If the amount of the credit exceeds the 
10total payments due under this Section with respect to amounts 
11withheld during the calendar year, the excess may be carried 
12forward and applied against the taxpayer's liability under 
13this Section in the 5 succeeding calendar years. The credit 
14shall be applied to the earliest year for which there is a tax 
15liability. If there are credits from more than one calendar 
16year that are available to offset a liability, the earlier 
17credit shall be applied first. This Section is exempt from the 
18provisions of Section 250 of this Act. 
19 (i) Each employer with 50 or fewer full-time equivalent 
20employees during the reporting period may claim a credit 
21against the payments due under this Section for each qualified 
22employee in an amount equal to the maximum credit allowable. 
23The credit may be taken against payments due for reporting 
24periods that begin on or after January 1, 2020, and end on or 
25before December 31, 2027. An employer may not claim a credit 
26for an employee who has worked fewer than 90 consecutive days 
 
 
10300HB4951sam002- 185 -LRB103 38094 HLH 74177 a


1immediately preceding the reporting period; however, such 
2credits may accrue during that 90-day period and be claimed 
3against payments under this Section for future reporting 
4periods after the employee has worked for the employer at 
5least 90 consecutive days. In no event may the credit exceed 
6the employer's liability for the reporting period. Each 
7employer who deducts and withholds or is required to deduct 
8and withhold tax under this Act and who retains income tax 
9withholdings under this subsection must make a return with 
10respect to such taxes and retained amounts in the form and 
11manner that the Department, by rule, requires and pay to the 
12Department or to a depositary designated by the Department 
13those withheld taxes not retained by the employer. 
14 For each reporting period, the employer may not claim a 
15credit or credits for more employees than the number of 
16employees making less than the minimum or reduced wage for the 
17current calendar year during the last reporting period of the 
18preceding calendar year. Notwithstanding any other provision 
19of this subsection, an employer shall not be eligible for 
20credits for a reporting period unless the average wage paid by 
21the employer per employee for all employees making less than 
22$55,000 during the reporting period is greater than the 
23average wage paid by the employer per employee for all 
24employees making less than $55,000 during the same reporting 
25period of the prior calendar year. 
26 For purposes of this subsection (i): 
 
 
10300HB4951sam002- 186 -LRB103 38094 HLH 74177 a


1 "Compensation paid in Illinois" has the meaning ascribed 
2to that term under Section 304(a)(2)(B) of this Act.
3 "Employer" and "employee" have the meaning ascribed to 
4those terms in the Minimum Wage Law, except that "employee" 
5also includes employees who work for an employer with fewer 
6than 4 employees. Employers that operate more than one 
7establishment pursuant to a franchise agreement or that 
8constitute members of a unitary business group shall aggregate 
9their employees for purposes of determining eligibility for 
10the credit.
11 "Full-time equivalent employees" means the ratio of the 
12number of paid hours during the reporting period and the 
13number of working hours in that period.
14 "Maximum credit" means the percentage listed below of the 
15difference between the amount of compensation paid in Illinois 
16to employees who are paid not more than the required minimum 
17wage reduced by the amount of compensation paid in Illinois to 
18employees who were paid less than the current required minimum 
19wage during the reporting period prior to each increase in the 
20required minimum wage on January 1. If an employer pays an 
21employee more than the required minimum wage and that employee 
22previously earned less than the required minimum wage, the 
23employer may include the portion that does not exceed the 
24required minimum wage as compensation paid in Illinois to 
25employees who are paid not more than the required minimum 
26wage. 
 
 
10300HB4951sam002- 187 -LRB103 38094 HLH 74177 a


1  (1) 25% for reporting periods beginning on or after 
2 January 1, 2020 and ending on or before December 31, 2020;
3  (2) 21% for reporting periods beginning on or after 
4 January 1, 2021 and ending on or before December 31, 2021;
5  (3) 17% for reporting periods beginning on or after 
6 January 1, 2022 and ending on or before December 31, 2022;
7  (4) 13% for reporting periods beginning on or after 
8 January 1, 2023 and ending on or before December 31, 2023;
9  (5) 9% for reporting periods beginning on or after 
10 January 1, 2024 and ending on or before December 31, 2024;
11  (6) 5% for reporting periods beginning on or after 
12 January 1, 2025 and ending on or before December 31, 2025.
13 The amount computed under this subsection may continue to 
14be claimed for reporting periods beginning on or after January 
151, 2026 and: 
16  (A) ending on or before December 31, 2026 for 
17 employers with more than 5 employees; or
18  (B) ending on or before December 31, 2027 for 
19 employers with no more than 5 employees. 
20 "Qualified employee" means an employee who is paid not 
21more than the required minimum wage and has an average wage 
22paid per hour by the employer during the reporting period 
23equal to or greater than his or her average wage paid per hour 
24by the employer during each reporting period for the 
25immediately preceding 12 months. A new qualified employee is 
26deemed to have earned the required minimum wage in the 
 
 
10300HB4951sam002- 188 -LRB103 38094 HLH 74177 a


1preceding reporting period.
2 "Reporting period" means the quarter for which a return is 
3required to be filed under subsection (b) of this Section. 
4 (j) For reporting periods beginning on or after January 1, 
52023, if a private employer grants all of its employees the 
6option of taking a paid leave of absence of at least 30 days 
7for the purpose of serving as an organ donor or bone marrow 
8donor, then the private employer may take a credit against the 
9payments due under this Section in an amount equal to the 
10amount withheld under this Section with respect to wages paid 
11while the employee is on organ donation leave, not to exceed 
12$1,000 in withholdings for each employee who takes organ 
13donation leave. To be eligible for the credit, such a leave of 
14absence must be taken without loss of pay, vacation time, 
15compensatory time, personal days, or sick time for at least 
16the first 30 days of the leave of absence. The private employer 
17shall adopt rules governing organ donation leave, including 
18rules that (i) establish conditions and procedures for 
19requesting and approving leave and (ii) require medical 
20documentation of the proposed organ or bone marrow donation 
21before leave is approved by the private employer. A private 
22employer must provide, in the manner required by the 
23Department, documentation from the employee's medical 
24provider, which the private employer receives from the 
25employee, that verifies the employee's organ donation. The 
26private employer must also provide, in the manner required by 
 
 
10300HB4951sam002- 189 -LRB103 38094 HLH 74177 a


1the Department, documentation that shows that a qualifying 
2organ donor leave policy was in place and offered to all 
3qualifying employees at the time the leave was taken. For the 
4private employer to receive the tax credit, the employee 
5taking organ donor leave must allow for the applicable medical 
6records to be disclosed to the Department. If the private 
7employer cannot provide the required documentation to the 
8Department, then the private employer is ineligible for the 
9credit under this Section. A private employer must also 
10provide, in the form required by the Department, any 
11additional documentation or information required by the 
12Department to administer the credit under this Section. The 
13credit under this subsection (j) shall be taken within one 
14year after the date upon which the organ donation leave 
15begins. If the leave taken spans into a second tax year, the 
16employer qualifies for the allowable credit in the later of 
17the 2 years. If the amount of credit exceeds the tax liability 
18for the year, the excess may be carried and applied to the tax 
19liability for the 3 taxable years following the excess credit 
20year. The tax credit shall be applied to the earliest year for 
21which there is a tax liability. If there are credits for more 
22than one year that are available to offset liability, the 
23earlier credit shall be applied first. 
24 Nothing in this subsection (j) prohibits a private 
25employer from providing an unpaid leave of absence to its 
26employees for the purpose of serving as an organ donor or bone 
 
 
10300HB4951sam002- 190 -LRB103 38094 HLH 74177 a


1marrow donor; however, if the employer's policy provides for 
2fewer than 30 days of paid leave for organ or bone marrow 
3donation, then the employer shall not be eligible for the 
4credit under this Section. 
5 As used in this subsection (j):
6 "Organ" means any biological tissue of the human body that 
7may be donated by a living donor, including, but not limited 
8to, the kidney, liver, lung, pancreas, intestine, bone, skin, 
9or any subpart of those organs. 
10 "Organ donor" means a person from whose body an organ is 
11taken to be transferred to the body of another person. 
12 "Private employer" means a sole proprietorship, 
13corporation, partnership, limited liability company, or other 
14entity with one or more employees. "Private employer" does not 
15include a municipality, county, State agency, or other public 
16employer. 
17 This subsection (j) is exempt from the provisions of 
18Section 250 of this Act.
19 (k) For reporting periods beginning on or after January 1, 
202025 and before January 1, 2027, an employer may claim a credit 
21against payments due under this Section for amounts withheld 
22during the first reporting period to occur after the date on 
23which a tax credit certificate is issued for a non-profit 
24theater production under Section 10 of the Live Theater 
25Production Tax Credit Act. The credit shall be equal to the 
26amount shown on the certificate, but may not reduce the 
 
 
10300HB4951sam002- 191 -LRB103 38094 HLH 74177 a


1taxpayer's obligation for any payment due under this Article 
2to less than zero. If the amount of the credit exceeds the 
3total amount due under this Article with respect to amounts 
4withheld during the first reporting period to occur after the 
5date on which a tax credit certificate is issued, the excess 
6may be carried forward and applied against the taxpayer's 
7liability under this Section for reporting periods that occur 
8in the 5 succeeding calendar years. The excess credit shall be 
9applied to the earliest reporting period for which there is a 
10payment due under this Article. If there are credits from more 
11than one reporting period that are available to offset a 
12liability, the earlier credit shall be applied first. The 
13Department of Revenue, in cooperation with the Department of 
14Commerce and Economic Opportunity, shall adopt rules to 
15enforce and administer the provisions of this subsection. 
16(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; 
17102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, 
18Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff. 
192-3-23.)

20
ARTICLE 50. 


21 Section 50-1. Short title. This Act may be cited as the 
22Music and Musicians Tax Credit and Jobs Act. References in 
23this Article to "this Act" mean this Article.

 
 
10300HB4951sam002- 192 -LRB103 38094 HLH 74177 a


1 Section 50-5. Purpose. The State's economy depends heavily 
2on music, professional musicians, music teachers, and 
3educators. Illinois is a cultural crown jewel of the United 
4States. Illinois and Chicago boast a robust history and 
5community of creative artists, writers, musicians, architects, 
6orchestras, live music and entertainment venues, civic operas, 
7recording studios, and universities. The COVID-19 pandemic and 
8the economic fallout that ensued brought on especially 
9difficult circumstances for the live entertainment industry at 
10large. Throughout the State, this has meant the closure of and 
11overall decrease in culturally engaging aspects of Illinois 
12cities from Cairo to Chicago.
13 According to the Americans for the Arts Action Fund, arts 
14and culture represent 3.1% of the State's gross domestic 
15product and 190,078 jobs. In fact, in 2020, Illinois arts and 
16culture was larger than the State's agriculture industry. In 
172015, nonprofit arts organizations in the State generated 
18$4,000,000,000 in economic activity that supported 111,068 
19jobs and generated $478,500,000 in State and local government 
20revenue. In Chicago specifically, nonprofit arts groups 
21generated $3,200,000,000 in total economic activity and 
22$336,500,000 in State and local government revenue. Audiences 
23exceeded 36,000,000 people. 
24 Yet, during the COVID-19 pandemic, the arts suffered. As a 
25result, Illinois arts and culture value added decreased by 9% 
26between 2019 and 2020 and employment decreased by 12%. 
 
 
10300HB4951sam002- 193 -LRB103 38094 HLH 74177 a


1Ultimately, $3,200,000,000 and 26,644 jobs were lost. Even as 
2live performances have resumed, audience sizes remain below 
3pre-pandemic levels. Regional theaters, local orchestras, 
4opera houses, and performing arts organizations are reporting 
5persistent drops in attendance.
6 It is the policy of this State to promote and encourage the 
7training and hiring of Illinois residents who represent the 
8diversity of the Illinois population through the creation and 
9implementation of training, education, and recruitment 
10programs organized in cooperation with Illinois colleges and 
11universities, labor organizations, and the commercial 
12for-profit music industry.

13 Section 50-10. Definitions. 
14 "Department" means the Department of Commerce and Economic 
15Opportunity.
16 "Expenditure in the State" means (i) an expenditure to 
17acquire, from a source within the State, property that is 
18subject to tax under the Use Tax Act, the Service Use Tax Act, 
19the Service Occupation Tax Act, or the Retailers' Occupation 
20Tax Act or (ii) an expenditure for compensation for services 
21performed within the State that is subject to State income tax 
22under the Illinois Income Tax Act.
23 "Illinois labor expenditure" means gross salary or wages, 
24including, but not limited to, taxes, benefits, and any other 
25consideration incurred or paid to artist employees of the 
 
 
10300HB4951sam002- 194 -LRB103 38094 HLH 74177 a


1applicant for services rendered to and on behalf of the 
2qualified music company, provided that the expenditure is:
3  (1) incurred or paid by the applicant on or after the 
4 effective date of this Act for services related to any 
5 portion of a qualified music company from rehearsals, 
6 performances, and any other qualified music company 
7 related activities;
8  (2) limited to the first $100,000 of wages incurred or 
9 paid to each employee of a qualified music production in 
10 each tax year;
11  (3) paid in the tax year for which the applicant is 
12 claiming the tax credit award;
13  (4) paid to persons residing in Illinois at the time 
14 payments were made; and
15  (5) reasonable under the circumstances.
16 "Qualified music company" means an entity that (i) is 
17authorized to do business in Illinois, (ii) is engaged 
18directly or indirectly in the production, distribution, or 
19promotion of music, (iii) is certified by the Department as 
20meeting the eligibility requirements of this Act, and (iv) has 
21executed a contract with the Department providing the terms 
22and conditions for its participation.
23 "Qualified music company payroll" or "QMC payroll" means 
24wages reported by the qualified music company in box 1 of each 
25W-2 form prepared for an employee of the qualified music 
26company who is an Illinois resident.
 
 
10300HB4951sam002- 195 -LRB103 38094 HLH 74177 a


1 "Resident copyright" means the copyright of a musical 
2composition written by an Illinois resident or owned by an 
3Illinois-domiciled music company, as evidenced by documents of 
4ownership, including, but not limited to, registration with 
5the United States Copyright Office.
6 "Sound recording" means a recording of music, poetry, or a 
7spoken-word performance made, in whole or in part, in 
8Illinois. "Sound recording" does not include the audio 
9portions of dialogue or words spoken and recorded as part of 
10television news coverage or athletic events.
11 "Sound recording production company" means a company 
12engaged in the business of producing sound recordings. "Sound 
13recording production company" does not include any person or 
14company, or any company owned, affiliated, or controlled, in 
15whole or in part, by any company or person, that is in default 
16on a loan made by the State or a loan guaranteed by the State, 
17nor which has ever declared bankruptcy under which an 
18obligation of the company or person to pay or repay public 
19funds or moneys was discharged as a part of the bankruptcy.
20 "State-certified production" means a sound recording 
21production, or a series of productions, including but not 
22limited to master and demonstration recordings, occurring over 
23the course of a 12-month period, and the base 
24production-related investment that is approved by the 
25Department within 180 days after receipt by the Department of 
26a complete application for initial certification of a 
 
 
10300HB4951sam002- 196 -LRB103 38094 HLH 74177 a


1production. If the production is not approved within 180 days, 
2the Department shall provide a written report to the Senate 
3Executive Committee and the House Executive Committee that 
4states the reason why the production has not been approved.
5 "Tax credit award" means the issuance to a taxpayer by the 
6Department of a tax credit award against the taxes imposed by 
7subsections (a) and (b) of Section 201 of the Illinois Income 
8Tax Act as provided in this Act.

9 Section 50-15. Powers of the Department. The Department, 
10in addition to those powers granted under the Civil 
11Administrative Code of Illinois, is granted and has all the 
12powers necessary or convenient to carry out and effectuate the 
13purposes and provisions of this Act, including, but not 
14limited to, the power and authority to:
15  (1) adopt rules that are necessary and appropriate for 
16 the administration of this Act; 
17  (2) establish forms for applications, notifications, 
18 contracts, or any other agreements with respect to tax 
19 credits under this Act and to accept applications for tax 
20 credits under this Act at any time during the year;
21  (3) assist applicants for tax credits under this Act 
22 to promote, foster, and support sound recording and live 
23 theater development and production and its related job 
24 creation or retention within the State;
25  (4) gather information and conduct inquiries, as 
 
 
10300HB4951sam002- 197 -LRB103 38094 HLH 74177 a


1 provided in this Act, required for the Department to 
2 comply with the provisions of this Act and, without 
3 limitation, to obtain information with respect to 
4 applicants for the purpose of making any designations or 
5 certifications necessary or desirable to assist the 
6 Department with any recommendation or guidance in the 
7 furtherance of the purposes of this Act and relating to 
8 applicants' participation in training, education, and 
9 recruitment programs that are organized in cooperation 
10 with Illinois colleges and universities or labor 
11 organizations designed to promote and encourage the 
12 training and hiring of Illinois residents who represent 
13 the diversity of the Illinois population;
14  (5) provide for sufficient personnel to permit 
15 administrative, staffing, operating, and related support 
16 required to adequately discharge the Department's duties 
17 and responsibilities under this Act from funds as may be 
18 appropriated by the General Assembly for the 
19 administration of this Act; and
20  (6) require that the applicant at all times keep 
21 proper books and records of accounts relating to the tax 
22 credit award, in accordance with generally accepted 
23 accounting principles consistently applied, and make those 
24 books and records available for reasonable Department 
25 inspection and audit, upon reasonable written request by 
26 the Department, during the applicant's normal business 
 
 
10300HB4951sam002- 198 -LRB103 38094 HLH 74177 a


1 hours. Any documents or data made available to the 
2 Department or received by the Department from the 
3 applicant by any agent, employee, officer, or service 
4 provider shall be deemed confidential and shall not 
5 constitute public records to the extent that the documents 
6 or data consist of commercial or financial information 
7 regarding the operation by the applicant of any theater or 
8 any accredited theater production or any recipient of any 
9 tax credit award under this Act.

10 Section 50-20. Application for certification of qualified 
11music company. Any applicant that operates a qualified music 
12company located in the State or is proposing to operate a 
13qualified music company in the State may apply to the 
14Department to have the qualified music company certified by 
15the Department as a qualified music company.

16 Section 50-25. Review of applications for qualified music 
17company certificates. 
18  (a) The Department shall issue a qualified music company 
19certificate to an applicant if it finds that a preponderance 
20of the following conditions exists:
21  (1) the applicant is engaged directly or indirectly in 
22 the production, distribution, and promotion of music;
23  (2) the applicant intends to make the expenditure in 
24 the State required for certification of the qualified 
 
 
10300HB4951sam002- 199 -LRB103 38094 HLH 74177 a


1 music company;
2  (3) the applicant's qualified music company is 
3 economically sound and will benefit the people of the 
4 State of Illinois by increasing opportunities for 
5 employment and will strengthen the economy of Illinois;
6  (4) the following requirements related to the 
7 implementation of a diversity plan have been met:
8   (A) the applicant has filed with the Department a 
9 diversity plan outlining specific goals for hiring 
10 Illinois labor expenditure eligible minority persons 
11 and women, as defined in the Business Enterprise for 
12 Minorities, Women, and Persons with Disabilities Act, 
13 and for using vendors receiving certification under 
14 the Business Enterprise for Minorities, Women, and 
15 Persons with Disabilities Act; 
16   (B) the Department has approved the plan as 
17 meeting the requirements established by the Department 
18 and verified that the applicant has met or made good 
19 faith efforts in achieving those goals; and 
20   (C) the Department has adopted any rules that are 
21 necessary to ensure compliance with the provisions set 
22 forth in this paragraph (4) and any rules that are 
23 necessary to show that the applicant's plan reflects 
24 the diversity of the population of this State;
25  (5) the applicant's qualified music company 
26 application indicates whether the applicant intends to 
 
 
10300HB4951sam002- 200 -LRB103 38094 HLH 74177 a


1 participate in training, education, and recruitment 
2 programs that are organized in cooperation with Illinois 
3 colleges and universities, labor organizations, and the 
4 holders of qualified music company certificates and are 
5 designed to promote and encourage the training and hiring 
6 of Illinois residents who represent the diversity of 
7 Illinois; and
8  (6) the tax credit award will result in an overall 
9 positive impact to the State, as determined by the 
10 Department using the best available data.
11 (b) If any of the provisions in this Section conflict with 
12any existing collective bargaining agreements, the terms and 
13conditions of those collective bargaining agreements shall 
14control.
15 (c) The Department shall act expeditiously regarding 
16approval of applications for qualified music companies so as 
17to accommodate the operations and needs of those companies.

18 Section 50-30. Training programs for skills in critical 
19demand. To accomplish the purposes of this Act, the Department 
20may use the training programs provided under Section 605-800 
21of the Department of Commerce and Economic Opportunity Law of 
22the Civil Administrative Code of Illinois.

23 Section 50-35. Issuance of tax credit award certificate.
24 (a) In order to qualify for a tax credit award under this 
 
 
10300HB4951sam002- 201 -LRB103 38094 HLH 74177 a


1Act, an applicant must file an application for each qualified 
2music company at each of the applicant's qualified facilities, 
3on forms prescribed by the Department, providing information 
4necessary to calculate the tax credit award and any additional 
5information as reasonably required by the Department.
6 (b) Upon satisfactory review of the application, the 
7Department shall issue a tax credit award certificate stating 
8the amount of the tax credit award to which the applicant is 
9entitled for that tax year and shall contemporaneously notify 
10the applicant and the Department of Revenue.
11 (c) For tax years beginning on or after January 1, 2025, a 
12taxpayer who has been awarded a tax credit under paragraph (b) 
13of this Section is entitled to a credit against the taxes 
14imposed under subsections (a) and (b) of Section 201 of the 
15Illinois Income Tax Act.

16 Section 50-40. Amount and payment of the tax credit award. 
17 (a) For taxable years beginning on or after January 1, 
182025, the Department may award tax credit awards to qualified 
19music companies. The award may not exceed 10% of the Illinois 
20labor expenditures for the State-certified production if the 
21QMC payroll of the qualified music company for the taxable 
22year does not exceed $150,000 or 15% of the Illinois labor 
23expenditures for the State-certified production if the QMC 
24payroll of the qualified music company for the taxable year 
25exceeds $150,000, plus all of the following:
 
 
10300HB4951sam002- 202 -LRB103 38094 HLH 74177 a


1  (1) an additional 15% of the Illinois labor 
2 expenditures for the State-certified production generated 
3 by the employment of Illinois residents in geographic 
4 areas of high poverty or high unemployment in each tax 
5 year, as determined by the Department; and
6  (2) an additional 7% of the Illinois labor 
7 expenditures for the State-certified production generated 
8 by the employment of individuals who are employed at a 
9 wage of no less than the general prevailing hourly rate as 
10 paid for work of a similar character in the locality in 
11 which the work is performed; and
12  (3) an additional 7% of the Illinois labor 
13 expenditures for the State-certified production incurred 
14 by a qualified music company and spent on post-production 
15 sound recording for television or film work completed in 
16 Illinois.
17 (b) To the extent that the base investment by a qualified 
18music company is expended on a sound recording production of a 
19resident copyright, the investor shall be allowed an 
20additional 10% increase in the base investment rate.
21 (c) The aggregate amount of credits certified for all 
22investors pursuant to this Section during any calendar year 
23shall not exceed $1,000,000. No more than $200,000 in tax 
24credits may be granted per calendar year for any single 
25qualified music company.
26 (d) A business is eligible for participation in the 
 
 
10300HB4951sam002- 203 -LRB103 38094 HLH 74177 a


1program if the business meets all of the following criteria:
2  (1) The business is engaged directly or indirectly in 
3 the production, distribution, and promotion of music.
4  (2) The business is approved by the Director of 
5 Commerce and Economic Opportunity.
6 (e) Upon approval of a tax credit award under this Act, the 
7Department shall issue a tax credit certificate to the 
8applicant.

9 Section 50-45. Qualified music program evaluation and 
10reports. 
11 (a) The Department's qualified music program tax credit 
12award evaluation must include:
13  (1) an assessment of the effectiveness of the program 
14 in creating and retaining new jobs in Illinois;
15  (2) an assessment of the revenue impact of the 
16 program;
17  (3) in the discretion of the Department, a review of 
18 the practices and experiences of other states or nations 
19 with similar programs; and
20  (4) an assessment of the overall success of the 
21 program. 
22The Department may make a recommendation to extend, modify, or 
23 not extend the program based on the evaluation.
24 (b) At the end of each fiscal quarter, the Department 
25shall submit to the General Assembly a report that includes, 
 
 
10300HB4951sam002- 204 -LRB103 38094 HLH 74177 a


1without limitation:
2  (1) an assessment of the economic impact of the 
3 program, including the number of jobs created and 
4 retained, and whether the job positions are entry level, 
5 management, vendor, or production related;
6  (2) the amount of qualified music company spending 
7 brought to Illinois, including the amount of spending and 
8 type of Illinois vendors hired in connection with a 
9 qualified music company; and
10  (3) a determination of whether those receiving 
11 qualifying Illinois labor expenditure salaries or wages 
12 reflect the geographic, racial and ethnic, gender, and 
13 income level diversity of the State of Illinois.
14 (c) At the end of each fiscal year, the Department shall 
15submit to the General Assembly a report that includes, without 
16limitation:
17  (1) the identification of each vendor that provided 
18 goods or services that were included in a qualified music 
19 company's Illinois spending;
20  (2) a statement of the amount paid to each identified 
21 vendor by the qualified music program and whether the 
22 vendor is a minority-owned or women-owned business as 
23 defined in Section 2 of the Business Enterprise for 
24 Minorities, Women, and Persons with Disabilities Act; and
25  (3) a description of the steps taken by the Department 
26 to encourage qualified music company to use vendors who 
 
 
10300HB4951sam002- 205 -LRB103 38094 HLH 74177 a


1 are minority-owned or women-owned businesses.

2 Section 50-50. Program terms and conditions. Any 
3documentary materials or data made available or received from 
4an applicant by any agent or employee of the Department are 
5confidential and are not public records to the extent that the 
6materials or data consist of commercial or financial 
7information regarding the operation of or the production of 
8the applicant or recipient of any tax credit award under this 
9Act.

10
ARTICLE 52. 


11 Section 52-3. The Freedom of Information Act is amended by 
12changing Section 7.5 as follows:

13 (5 ILCS 140/7.5)
14 (Text of Section before amendment by P.A. 103-472)
15 Sec. 7.5. Statutory exemptions. To the extent provided for 
16by the statutes referenced below, the following shall be 
17exempt from inspection and copying:
18  (a) All information determined to be confidential 
19 under Section 4002 of the Technology Advancement and 
20 Development Act.
21  (b) Library circulation and order records identifying 
22 library users with specific materials under the Library 
 
 
10300HB4951sam002- 206 -LRB103 38094 HLH 74177 a


1 Records Confidentiality Act.
2  (c) Applications, related documents, and medical 
3 records received by the Experimental Organ Transplantation 
4 Procedures Board and any and all documents or other 
5 records prepared by the Experimental Organ Transplantation 
6 Procedures Board or its staff relating to applications it 
7 has received.
8  (d) Information and records held by the Department of 
9 Public Health and its authorized representatives relating 
10 to known or suspected cases of sexually transmissible 
11 disease or any information the disclosure of which is 
12 restricted under the Illinois Sexually Transmissible 
13 Disease Control Act.
14  (e) Information the disclosure of which is exempted 
15 under Section 30 of the Radon Industry Licensing Act.
16  (f) Firm performance evaluations under Section 55 of 
17 the Architectural, Engineering, and Land Surveying 
18 Qualifications Based Selection Act.
19  (g) Information the disclosure of which is restricted 
20 and exempted under Section 50 of the Illinois Prepaid 
21 Tuition Act.
22  (h) Information the disclosure of which is exempted 
23 under the State Officials and Employees Ethics Act, and 
24 records of any lawfully created State or local inspector 
25 general's office that would be exempt if created or 
26 obtained by an Executive Inspector General's office under 
 
 
10300HB4951sam002- 207 -LRB103 38094 HLH 74177 a


1 that Act.
2  (i) Information contained in a local emergency energy 
3 plan submitted to a municipality in accordance with a 
4 local emergency energy plan ordinance that is adopted 
5 under Section 11-21.5-5 of the Illinois Municipal Code.
6  (j) Information and data concerning the distribution 
7 of surcharge moneys collected and remitted by carriers 
8 under the Emergency Telephone System Act.
9  (k) Law enforcement officer identification information 
10 or driver identification information compiled by a law 
11 enforcement agency or the Department of Transportation 
12 under Section 11-212 of the Illinois Vehicle Code.
13  (l) Records and information provided to a residential 
14 health care facility resident sexual assault and death 
15 review team or the Executive Council under the Abuse 
16 Prevention Review Team Act.
17  (m) Information provided to the predatory lending 
18 database created pursuant to Article 3 of the Residential 
19 Real Property Disclosure Act, except to the extent 
20 authorized under that Article.
21  (n) Defense budgets and petitions for certification of 
22 compensation and expenses for court appointed trial 
23 counsel as provided under Sections 10 and 15 of the 
24 Capital Crimes Litigation Act (repealed). This subsection 
25 (n) shall apply until the conclusion of the trial of the 
26 case, even if the prosecution chooses not to pursue the 
 
 
10300HB4951sam002- 208 -LRB103 38094 HLH 74177 a


1 death penalty prior to trial or sentencing.
2  (o) Information that is prohibited from being 
3 disclosed under Section 4 of the Illinois Health and 
4 Hazardous Substances Registry Act.
5  (p) Security portions of system safety program plans, 
6 investigation reports, surveys, schedules, lists, data, or 
7 information compiled, collected, or prepared by or for the 
8 Department of Transportation under Sections 2705-300 and 
9 2705-616 of the Department of Transportation Law of the 
10 Civil Administrative Code of Illinois, the Regional 
11 Transportation Authority under Section 2.11 of the 
12 Regional Transportation Authority Act, or the St. Clair 
13 County Transit District under the Bi-State Transit Safety 
14 Act (repealed). 
15  (q) Information prohibited from being disclosed by the 
16 Personnel Record Review Act. 
17  (r) Information prohibited from being disclosed by the 
18 Illinois School Student Records Act. 
19  (s) Information the disclosure of which is restricted 
20 under Section 5-108 of the Public Utilities Act. 
21  (t) (Blank). 
22  (u) Records and information provided to an independent 
23 team of experts under the Developmental Disability and 
24 Mental Health Safety Act (also known as Brian's Law). 
25  (v) Names and information of people who have applied 
26 for or received Firearm Owner's Identification Cards under 
 
 
10300HB4951sam002- 209 -LRB103 38094 HLH 74177 a


1 the Firearm Owners Identification Card Act or applied for 
2 or received a concealed carry license under the Firearm 
3 Concealed Carry Act, unless otherwise authorized by the 
4 Firearm Concealed Carry Act; and databases under the 
5 Firearm Concealed Carry Act, records of the Concealed 
6 Carry Licensing Review Board under the Firearm Concealed 
7 Carry Act, and law enforcement agency objections under the 
8 Firearm Concealed Carry Act. 
9  (v-5) Records of the Firearm Owner's Identification 
10 Card Review Board that are exempted from disclosure under 
11 Section 10 of the Firearm Owners Identification Card Act.
12  (w) Personally identifiable information which is 
13 exempted from disclosure under subsection (g) of Section 
14 19.1 of the Toll Highway Act.
15  (x) Information which is exempted from disclosure 
16 under Section 5-1014.3 of the Counties Code or Section 
17 8-11-21 of the Illinois Municipal Code. 
18  (y) Confidential information under the Adult 
19 Protective Services Act and its predecessor enabling 
20 statute, the Elder Abuse and Neglect Act, including 
21 information about the identity and administrative finding 
22 against any caregiver of a verified and substantiated 
23 decision of abuse, neglect, or financial exploitation of 
24 an eligible adult maintained in the Registry established 
25 under Section 7.5 of the Adult Protective Services Act. 
26  (z) Records and information provided to a fatality 
 
 
10300HB4951sam002- 210 -LRB103 38094 HLH 74177 a


1 review team or the Illinois Fatality Review Team Advisory 
2 Council under Section 15 of the Adult Protective Services 
3 Act. 
4  (aa) Information which is exempted from disclosure 
5 under Section 2.37 of the Wildlife Code. 
6  (bb) Information which is or was prohibited from 
7 disclosure by the Juvenile Court Act of 1987. 
8  (cc) Recordings made under the Law Enforcement 
9 Officer-Worn Body Camera Act, except to the extent 
10 authorized under that Act.
11  (dd) Information that is prohibited from being 
12 disclosed under Section 45 of the Condominium and Common 
13 Interest Community Ombudsperson Act. 
14  (ee) Information that is exempted from disclosure 
15 under Section 30.1 of the Pharmacy Practice Act. 
16  (ff) Information that is exempted from disclosure 
17 under the Revised Uniform Unclaimed Property Act. 
18  (gg) Information that is prohibited from being 
19 disclosed under Section 7-603.5 of the Illinois Vehicle 
20 Code. 
21  (hh) Records that are exempt from disclosure under 
22 Section 1A-16.7 of the Election Code. 
23  (ii) Information which is exempted from disclosure 
24 under Section 2505-800 of the Department of Revenue Law of 
25 the Civil Administrative Code of Illinois. 
26  (jj) Information and reports that are required to be 
 
 
10300HB4951sam002- 211 -LRB103 38094 HLH 74177 a


1 submitted to the Department of Labor by registering day 
2 and temporary labor service agencies but are exempt from 
3 disclosure under subsection (a-1) of Section 45 of the Day 
4 and Temporary Labor Services Act. 
5  (kk) Information prohibited from disclosure under the 
6 Seizure and Forfeiture Reporting Act. 
7  (ll) Information the disclosure of which is restricted 
8 and exempted under Section 5-30.8 of the Illinois Public 
9 Aid Code. 
10  (mm) Records that are exempt from disclosure under 
11 Section 4.2 of the Crime Victims Compensation Act. 
12  (nn) Information that is exempt from disclosure under 
13 Section 70 of the Higher Education Student Assistance Act. 
14  (oo) Communications, notes, records, and reports 
15 arising out of a peer support counseling session 
16 prohibited from disclosure under the First Responders 
17 Suicide Prevention Act. 
18  (pp) Names and all identifying information relating to 
19 an employee of an emergency services provider or law 
20 enforcement agency under the First Responders Suicide 
21 Prevention Act. 
22  (qq) Information and records held by the Department of 
23 Public Health and its authorized representatives collected 
24 under the Reproductive Health Act. 
25  (rr) Information that is exempt from disclosure under 
26 the Cannabis Regulation and Tax Act. 
 
 
10300HB4951sam002- 212 -LRB103 38094 HLH 74177 a


1  (ss) Data reported by an employer to the Department of 
2 Human Rights pursuant to Section 2-108 of the Illinois 
3 Human Rights Act.
4  (tt) Recordings made under the Children's Advocacy 
5 Center Act, except to the extent authorized under that 
6 Act. 
7  (uu) Information that is exempt from disclosure under 
8 Section 50 of the Sexual Assault Evidence Submission Act. 
9  (vv) Information that is exempt from disclosure under 
10 subsections (f) and (j) of Section 5-36 of the Illinois 
11 Public Aid Code. 
12  (ww) Information that is exempt from disclosure under 
13 Section 16.8 of the State Treasurer Act. 
14  (xx) Information that is exempt from disclosure or 
15 information that shall not be made public under the 
16 Illinois Insurance Code. 
17  (yy) Information prohibited from being disclosed under 
18 the Illinois Educational Labor Relations Act.
19  (zz) Information prohibited from being disclosed under 
20 the Illinois Public Labor Relations Act. 
21  (aaa) Information prohibited from being disclosed 
22 under Section 1-167 of the Illinois Pension Code. 
23  (bbb) Information that is prohibited from disclosure 
24 by the Illinois Police Training Act and the Illinois State 
25 Police Act. 
26  (ccc) Records exempt from disclosure under Section 
 
 
10300HB4951sam002- 213 -LRB103 38094 HLH 74177 a


1 2605-304 of the Illinois State Police Law of the Civil 
2 Administrative Code of Illinois. 
3  (ddd) Information prohibited from being disclosed 
4 under Section 35 of the Address Confidentiality for 
5 Victims of Domestic Violence, Sexual Assault, Human 
6 Trafficking, or Stalking Act. 
7  (eee) Information prohibited from being disclosed 
8 under subsection (b) of Section 75 of the Domestic 
9 Violence Fatality Review Act. 
10  (fff) Images from cameras under the Expressway Camera 
11 Act. This subsection (fff) is inoperative on and after 
12 July 1, 2025. 
13  (ggg) Information prohibited from disclosure under 
14 paragraph (3) of subsection (a) of Section 14 of the Nurse 
15 Agency Licensing Act. 
16  (hhh) Information submitted to the Illinois State 
17 Police in an affidavit or application for an assault 
18 weapon endorsement, assault weapon attachment endorsement, 
19 .50 caliber rifle endorsement, or .50 caliber cartridge 
20 endorsement under the Firearm Owners Identification Card 
21 Act. 
22  (iii) Data exempt from disclosure under Section 50 of 
23 the School Safety Drill Act. 
24  (jjj) (hhh) Information exempt from disclosure under 
25 Section 30 of the Insurance Data Security Law. 
26  (kkk) (iii) Confidential business information 
 
 
10300HB4951sam002- 214 -LRB103 38094 HLH 74177 a


1 prohibited from disclosure under Section 45 of the Paint 
2 Stewardship Act. 
3  (lll) (Reserved). 
4  (mmm) (iii) Information prohibited from being 
5 disclosed under subsection (e) of Section 1-129 of the 
6 Illinois Power Agency Act. 
7  (nnn) Materials received by the Department of Commerce 
8 and Economic Opportunity that are confidential under the 
9 Music and Musicians Tax Credit and Jobs Act. 
10(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; 
11102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. 
128-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; 
13102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. 
146-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, 
15eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; 
16revised 1-2-24.)

17 (Text of Section after amendment by P.A. 103-472)
18 Sec. 7.5. Statutory exemptions. To the extent provided for 
19by the statutes referenced below, the following shall be 
20exempt from inspection and copying:
21  (a) All information determined to be confidential 
22 under Section 4002 of the Technology Advancement and 
23 Development Act.
24  (b) Library circulation and order records identifying 
25 library users with specific materials under the Library 
 
 
10300HB4951sam002- 215 -LRB103 38094 HLH 74177 a


1 Records Confidentiality Act.
2  (c) Applications, related documents, and medical 
3 records received by the Experimental Organ Transplantation 
4 Procedures Board and any and all documents or other 
5 records prepared by the Experimental Organ Transplantation 
6 Procedures Board or its staff relating to applications it 
7 has received.
8  (d) Information and records held by the Department of 
9 Public Health and its authorized representatives relating 
10 to known or suspected cases of sexually transmissible 
11 disease or any information the disclosure of which is 
12 restricted under the Illinois Sexually Transmissible 
13 Disease Control Act.
14  (e) Information the disclosure of which is exempted 
15 under Section 30 of the Radon Industry Licensing Act.
16  (f) Firm performance evaluations under Section 55 of 
17 the Architectural, Engineering, and Land Surveying 
18 Qualifications Based Selection Act.
19  (g) Information the disclosure of which is restricted 
20 and exempted under Section 50 of the Illinois Prepaid 
21 Tuition Act.
22  (h) Information the disclosure of which is exempted 
23 under the State Officials and Employees Ethics Act, and 
24 records of any lawfully created State or local inspector 
25 general's office that would be exempt if created or 
26 obtained by an Executive Inspector General's office under 
 
 
10300HB4951sam002- 216 -LRB103 38094 HLH 74177 a


1 that Act.
2  (i) Information contained in a local emergency energy 
3 plan submitted to a municipality in accordance with a 
4 local emergency energy plan ordinance that is adopted 
5 under Section 11-21.5-5 of the Illinois Municipal Code.
6  (j) Information and data concerning the distribution 
7 of surcharge moneys collected and remitted by carriers 
8 under the Emergency Telephone System Act.
9  (k) Law enforcement officer identification information 
10 or driver identification information compiled by a law 
11 enforcement agency or the Department of Transportation 
12 under Section 11-212 of the Illinois Vehicle Code.
13  (l) Records and information provided to a residential 
14 health care facility resident sexual assault and death 
15 review team or the Executive Council under the Abuse 
16 Prevention Review Team Act.
17  (m) Information provided to the predatory lending 
18 database created pursuant to Article 3 of the Residential 
19 Real Property Disclosure Act, except to the extent 
20 authorized under that Article.
21  (n) Defense budgets and petitions for certification of 
22 compensation and expenses for court appointed trial 
23 counsel as provided under Sections 10 and 15 of the 
24 Capital Crimes Litigation Act (repealed). This subsection 
25 (n) shall apply until the conclusion of the trial of the 
26 case, even if the prosecution chooses not to pursue the 
 
 
10300HB4951sam002- 217 -LRB103 38094 HLH 74177 a


1 death penalty prior to trial or sentencing.
2  (o) Information that is prohibited from being 
3 disclosed under Section 4 of the Illinois Health and 
4 Hazardous Substances Registry Act.
5  (p) Security portions of system safety program plans, 
6 investigation reports, surveys, schedules, lists, data, or 
7 information compiled, collected, or prepared by or for the 
8 Department of Transportation under Sections 2705-300 and 
9 2705-616 of the Department of Transportation Law of the 
10 Civil Administrative Code of Illinois, the Regional 
11 Transportation Authority under Section 2.11 of the 
12 Regional Transportation Authority Act, or the St. Clair 
13 County Transit District under the Bi-State Transit Safety 
14 Act (repealed). 
15  (q) Information prohibited from being disclosed by the 
16 Personnel Record Review Act. 
17  (r) Information prohibited from being disclosed by the 
18 Illinois School Student Records Act. 
19  (s) Information the disclosure of which is restricted 
20 under Section 5-108 of the Public Utilities Act. 
21  (t) (Blank). 
22  (u) Records and information provided to an independent 
23 team of experts under the Developmental Disability and 
24 Mental Health Safety Act (also known as Brian's Law). 
25  (v) Names and information of people who have applied 
26 for or received Firearm Owner's Identification Cards under 
 
 
10300HB4951sam002- 218 -LRB103 38094 HLH 74177 a


1 the Firearm Owners Identification Card Act or applied for 
2 or received a concealed carry license under the Firearm 
3 Concealed Carry Act, unless otherwise authorized by the 
4 Firearm Concealed Carry Act; and databases under the 
5 Firearm Concealed Carry Act, records of the Concealed 
6 Carry Licensing Review Board under the Firearm Concealed 
7 Carry Act, and law enforcement agency objections under the 
8 Firearm Concealed Carry Act. 
9  (v-5) Records of the Firearm Owner's Identification 
10 Card Review Board that are exempted from disclosure under 
11 Section 10 of the Firearm Owners Identification Card Act.
12  (w) Personally identifiable information which is 
13 exempted from disclosure under subsection (g) of Section 
14 19.1 of the Toll Highway Act.
15  (x) Information which is exempted from disclosure 
16 under Section 5-1014.3 of the Counties Code or Section 
17 8-11-21 of the Illinois Municipal Code. 
18  (y) Confidential information under the Adult 
19 Protective Services Act and its predecessor enabling 
20 statute, the Elder Abuse and Neglect Act, including 
21 information about the identity and administrative finding 
22 against any caregiver of a verified and substantiated 
23 decision of abuse, neglect, or financial exploitation of 
24 an eligible adult maintained in the Registry established 
25 under Section 7.5 of the Adult Protective Services Act. 
26  (z) Records and information provided to a fatality 
 
 
10300HB4951sam002- 219 -LRB103 38094 HLH 74177 a


1 review team or the Illinois Fatality Review Team Advisory 
2 Council under Section 15 of the Adult Protective Services 
3 Act. 
4  (aa) Information which is exempted from disclosure 
5 under Section 2.37 of the Wildlife Code. 
6  (bb) Information which is or was prohibited from 
7 disclosure by the Juvenile Court Act of 1987. 
8  (cc) Recordings made under the Law Enforcement 
9 Officer-Worn Body Camera Act, except to the extent 
10 authorized under that Act.
11  (dd) Information that is prohibited from being 
12 disclosed under Section 45 of the Condominium and Common 
13 Interest Community Ombudsperson Act. 
14  (ee) Information that is exempted from disclosure 
15 under Section 30.1 of the Pharmacy Practice Act. 
16  (ff) Information that is exempted from disclosure 
17 under the Revised Uniform Unclaimed Property Act. 
18  (gg) Information that is prohibited from being 
19 disclosed under Section 7-603.5 of the Illinois Vehicle 
20 Code. 
21  (hh) Records that are exempt from disclosure under 
22 Section 1A-16.7 of the Election Code. 
23  (ii) Information which is exempted from disclosure 
24 under Section 2505-800 of the Department of Revenue Law of 
25 the Civil Administrative Code of Illinois. 
26  (jj) Information and reports that are required to be 
 
 
10300HB4951sam002- 220 -LRB103 38094 HLH 74177 a


1 submitted to the Department of Labor by registering day 
2 and temporary labor service agencies but are exempt from 
3 disclosure under subsection (a-1) of Section 45 of the Day 
4 and Temporary Labor Services Act. 
5  (kk) Information prohibited from disclosure under the 
6 Seizure and Forfeiture Reporting Act. 
7  (ll) Information the disclosure of which is restricted 
8 and exempted under Section 5-30.8 of the Illinois Public 
9 Aid Code. 
10  (mm) Records that are exempt from disclosure under 
11 Section 4.2 of the Crime Victims Compensation Act. 
12  (nn) Information that is exempt from disclosure under 
13 Section 70 of the Higher Education Student Assistance Act. 
14  (oo) Communications, notes, records, and reports 
15 arising out of a peer support counseling session 
16 prohibited from disclosure under the First Responders 
17 Suicide Prevention Act. 
18  (pp) Names and all identifying information relating to 
19 an employee of an emergency services provider or law 
20 enforcement agency under the First Responders Suicide 
21 Prevention Act. 
22  (qq) Information and records held by the Department of 
23 Public Health and its authorized representatives collected 
24 under the Reproductive Health Act. 
25  (rr) Information that is exempt from disclosure under 
26 the Cannabis Regulation and Tax Act. 
 
 
10300HB4951sam002- 221 -LRB103 38094 HLH 74177 a


1  (ss) Data reported by an employer to the Department of 
2 Human Rights pursuant to Section 2-108 of the Illinois 
3 Human Rights Act.
4  (tt) Recordings made under the Children's Advocacy 
5 Center Act, except to the extent authorized under that 
6 Act. 
7  (uu) Information that is exempt from disclosure under 
8 Section 50 of the Sexual Assault Evidence Submission Act. 
9  (vv) Information that is exempt from disclosure under 
10 subsections (f) and (j) of Section 5-36 of the Illinois 
11 Public Aid Code. 
12  (ww) Information that is exempt from disclosure under 
13 Section 16.8 of the State Treasurer Act. 
14  (xx) Information that is exempt from disclosure or 
15 information that shall not be made public under the 
16 Illinois Insurance Code. 
17  (yy) Information prohibited from being disclosed under 
18 the Illinois Educational Labor Relations Act.
19  (zz) Information prohibited from being disclosed under 
20 the Illinois Public Labor Relations Act. 
21  (aaa) Information prohibited from being disclosed 
22 under Section 1-167 of the Illinois Pension Code. 
23  (bbb) Information that is prohibited from disclosure 
24 by the Illinois Police Training Act and the Illinois State 
25 Police Act. 
26  (ccc) Records exempt from disclosure under Section 
 
 
10300HB4951sam002- 222 -LRB103 38094 HLH 74177 a


1 2605-304 of the Illinois State Police Law of the Civil 
2 Administrative Code of Illinois. 
3  (ddd) Information prohibited from being disclosed 
4 under Section 35 of the Address Confidentiality for 
5 Victims of Domestic Violence, Sexual Assault, Human 
6 Trafficking, or Stalking Act. 
7  (eee) Information prohibited from being disclosed 
8 under subsection (b) of Section 75 of the Domestic 
9 Violence Fatality Review Act. 
10  (fff) Images from cameras under the Expressway Camera 
11 Act. This subsection (fff) is inoperative on and after 
12 July 1, 2025. 
13  (ggg) Information prohibited from disclosure under 
14 paragraph (3) of subsection (a) of Section 14 of the Nurse 
15 Agency Licensing Act. 
16  (hhh) Information submitted to the Illinois State 
17 Police in an affidavit or application for an assault 
18 weapon endorsement, assault weapon attachment endorsement, 
19 .50 caliber rifle endorsement, or .50 caliber cartridge 
20 endorsement under the Firearm Owners Identification Card 
21 Act. 
22  (iii) Data exempt from disclosure under Section 50 of 
23 the School Safety Drill Act. 
24  (jjj) (hhh) Information exempt from disclosure under 
25 Section 30 of the Insurance Data Security Law. 
26  (kkk) (iii) Confidential business information 
 
 
10300HB4951sam002- 223 -LRB103 38094 HLH 74177 a


1 prohibited from disclosure under Section 45 of the Paint 
2 Stewardship Act. 
3  (lll) (iii) Data exempt from disclosure under Section 
4 2-3.196 of the School Code. 
5  (mmm) (iii) Information prohibited from being 
6 disclosed under subsection (e) of Section 1-129 of the 
7 Illinois Power Agency Act. 
8  (nnn) Materials received by the Department of Commerce 
9 and Economic Opportunity that are confidential under the 
10 Music and Musicians Tax Credit and Jobs Act. 
11(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; 
12102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. 
138-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; 
14102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. 
156-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, 
16eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; 
17103-580, eff. 12-8-23; revised 1-2-24.)

18 Section 52-5. The Illinois Income Tax Act is amended by 
19adding Section 241 as follows:

20 (35 ILCS 5/241 new)
21 Sec. 241. Music and Musicians Tax Credits and Jobs Act. 
22Taxpayers who have been awarded a credit under the Music and 
23Musicians Tax Credits and Jobs Act are entitled to a credit 
24against the taxes imposed by subsections (a) and (b) of 
 
 
10300HB4951sam002- 224 -LRB103 38094 HLH 74177 a


1Section 201 of this Act in an amount determined by the 
2Department of Commerce and Economic Opportunity under that 
3Act. The credit shall be claimed in the taxable year in which 
4the tax credit award certificate is issued, and the 
5certificate shall be attached to the return. If the taxpayer 
6is a partnership or Subchapter S corporation, the credit shall 
7be allowed to the partners or shareholders in accordance with 
8the provisions of Section 251.
9 The credit may not reduce the taxpayer's liability to less 
10than zero. If the amount of the credit exceeds the tax 
11liability for the year, the excess may be carried forward and 
12applied to the tax liability of the 5 taxable years following 
13the excess credit year. The credit shall be applied to the 
14earliest year for which there is a tax liability. If there are 
15credits from more than one tax year that are available to 
16offset a liability, the earlier credit shall be applied first. 

17
ARTICLE 55. 


18 Section 55-5. The Illinois Income Tax Act is amended by 
19changing Section 216 as follows:

20 (35 ILCS 5/216)
21 Sec. 216. Credit for wages paid to returning citizens 
22ex-felons.
23 (a) For each taxable year beginning on or after January 1, 
 
 
10300HB4951sam002- 225 -LRB103 38094 HLH 74177 a


12007, each taxpayer is entitled to a credit against the tax 
2imposed by subsections (a) and (b) of Section 201 of this Act 
3in an amount equal to 5% of qualified wages paid by the 
4taxpayer during the taxable year to one or more Illinois 
5residents who are qualified returning citizens ex-offenders. 
6For each taxable year beginning on or after January 1, 2025, 
7each taxpayer is entitled to a credit against the tax imposed 
8by subsections (a) and (b) of Section 201 of this Act in an 
9amount equal to 15% of qualified wages paid by the taxpayer 
10during the taxable year to one or more Illinois residents who 
11are qualified returning citizens. The total credit allowed to 
12a taxpayer with respect to each qualified returning citizen 
13ex-offender may not exceed $1,500 for all taxable years ending 
14on or before December 31, 2024. For taxable years ending on or 
15after December 31, 2025, the total credit allowed to a 
16taxpayer with respect to each qualified returning citizen may 
17not exceed $7,500. For taxable years ending on or after 
18December 31, 2025, the total amount in credit that may be 
19awarded under this Section may not exceed $1,000,000 per 
20taxable year. For taxable years ending before December 31, 
212023, for partners, shareholders of Subchapter S corporations, 
22and owners of limited liability companies, if the liability 
23company is treated as a partnership for purposes of federal 
24and State income taxation, there shall be allowed a credit 
25under this Section to be determined in accordance with the 
26determination of income and distributive share of income under 
 
 
10300HB4951sam002- 226 -LRB103 38094 HLH 74177 a


1Sections 702 and 704 and Subchapter S of the Internal Revenue 
2Code. For taxable years ending on or after December 31, 2023, 
3partners and shareholders of subchapter S corporations are 
4entitled to a credit under this Section as provided in Section 
5251. 
6 (b) For purposes of this Section, "qualified wages":
7  (1) includes only wages that are subject to federal 
8 unemployment tax under Section 3306 of the Internal 
9 Revenue Code, without regard to any dollar limitation 
10 contained in that Section; 
11  (2) does not include any amounts paid or incurred by 
12 an employer for any period to any qualified returning 
13 citizen ex-offender for whom the employer receives 
14 federally funded payments for on-the-job training of that 
15 qualified returning citizen ex-offender for that period; 
16 and 
17  (3) includes only wages attributable to service 
18 rendered during the one-year period beginning with the day 
19 the qualified returning citizen ex-offender begins work 
20 for the employer. 
21 If the taxpayer has received any payment from a program 
22established under Section 482(e)(1) of the federal Social 
23Security Act with respect to a qualified returning citizen 
24ex-offender, then, for purposes of calculating the credit 
25under this Section, the amount of the qualified wages paid to 
26that qualified ex-offender must be reduced by the amount of 
 
 
10300HB4951sam002- 227 -LRB103 38094 HLH 74177 a


1the payment. 
2 (c) For purposes of this Section, "qualified returning 
3citizen ex-offender" means any person who: 
4  (1) has been convicted of a crime in this State or of 
5 an offense in any other jurisdiction, not including any 
6 offense or attempted offense that would subject a person 
7 to registration under the Sex Offender Registration Act;
8  (2) was sentenced to a period of incarceration in an 
9 Illinois adult correctional center; and
10  (3) was hired by the taxpayer within 3 years after 
11 being released from an Illinois adult correctional center 
12 if the credit is claimed for a taxable year beginning on or 
13 before January 1, 2024, or was hired by the taxpayer 
14 within 5 years after being released from an Illinois adult 
15 correctional center if the credit is claimed for a taxable 
16 year beginning on or after January 1, 2025.
17 (d) In no event shall a credit under this Section reduce 
18the taxpayer's liability to less than zero. If the amount of 
19the credit exceeds the tax liability for the year, the excess 
20may be carried forward and applied to the tax liability of the 
215 taxable years following the excess credit year. The tax 
22credit shall be applied to the earliest year for which there is 
23a tax liability. If there are credits for more than one year 
24that are available to offset a liability, the earlier credit 
25shall be applied first.
26 (e) This Section is exempt from the provisions of Section 
 
 
10300HB4951sam002- 228 -LRB103 38094 HLH 74177 a


1250. 
2(Source: P.A. 103-396, eff. 1-1-24.)

3
ARTICLE 60. 


4 Section 60-5. The Illinois Income Tax Act is amended by 
5changing Section 234 as follows:

6 (35 ILCS 5/234)
7 Sec. 234. Volunteer emergency workers.
8 (a) For taxable years beginning on or after January 1, 
92023 and beginning prior to January 1, 2028, each individual 
10who (i) serves as a volunteer emergency worker for at least 9 
11months during the taxable year and (ii) does not receive 
12compensation for his or her services as a volunteer emergency 
13worker of more than $5,000 for the taxable year may apply to 
14the Department for a credit against the taxes imposed by 
15subsections (a) and (b) of Section 201. The amount of the 
16credit shall be $500 per eligible individual. If a taxpayer 
17described in this subsection (a) is a volunteer member of a 
18county or municipal emergency services and disaster agency 
19under the Illinois Emergency Management Agency Act, then the 
20taxpayer must serve as a volunteer emergency worker with the 
21county or municipal emergency services and disaster agency for 
22at least 100 hours during the taxable year. The aggregate 
23amount of all tax credits awarded by the Department under this 
 
 
10300HB4951sam002- 229 -LRB103 38094 HLH 74177 a


1Section in any calendar year may not exceed $5,000,000. 
2Credits shall be awarded on a first-come first-served basis.
3 (b) A credit under this Section may not reduce a 
4taxpayer's liability to less than zero.
5 (c) By January 24 of each year, the Office of the State 
6Fire Marshal shall provide the Department of Revenue an 
7electronic file with the names of volunteer emergency workers, 
8other than volunteer emergency workers who are volunteer 
9members of a county or municipal emergency services and 
10disaster agency under the Illinois Emergency Management Agency 
11Act, who (i) volunteered for at least 9 months during the 
12immediately preceding calendar year, (ii) did not receive 
13compensation for their services as a volunteer emergency 
14worker of more than $5,000 during the immediately preceding 
15calendar year, and (iii) are registered with the Office of the 
16State Fire Marshal as of January 12 of the current year as 
17meeting the requirements of items (i) and (ii) for the 
18immediately preceding calendar year. The chief of the fire 
19department, fire protection district, or fire protection 
20association shall be responsible for notifying the State Fire 
21Marshal of the volunteer emergency workers who met the 
22requirements of items (i) and (ii) during the immediately 
23preceding calendar year by January 12 of the current year. 
24Notification shall be required in the format required by the 
25State Fire Marshal. The chief of the fire department, fire 
26protection district, or fire protection association shall be 
 
 
10300HB4951sam002- 230 -LRB103 38094 HLH 74177 a


1responsible for the verification and accuracy of their 
2submission to the State Fire Marshal under this subsection.
3 By January 24, 2025, and by January 24 of each year 
4thereafter, the Illinois Emergency Management Agency and 
5Office of Homeland Security shall provide the Department of 
6Revenue an electronic file with the names of volunteer 
7emergency workers who (A) volunteered with a county or 
8municipal emergency services and disaster agency pursuant to 
9the Illinois Emergency Management Agency Act for at least 9 
10months during the immediately preceding calendar year, (B) did 
11not receive compensation for their services as a volunteer 
12emergency worker of more than $5,000 during the immediately 
13preceding calendar year, (C) volunteered with a county or 
14municipal emergency services and disaster agency pursuant to 
15the Illinois Emergency Management Agency Act for at least 100 
16hours during the immediately preceding calendar year, and (D) 
17are registered with the Illinois Emergency Management Agency 
18and Office of Homeland Security as of January 12 of the current 
19year as meeting the requirements of items (A), (B), and (C) for 
20the immediately preceding calendar year. The coordinator of 
21the emergency services and disaster agency shall be 
22responsible for notifying the Illinois Emergency Management 
23Agency and Office of Homeland Security of the volunteer 
24emergency workers who met the requirements of items (A), (B), 
25and (C) during the immediately preceding calendar year by 
26January 12 of the current year. Notification shall be in the 
 
 
10300HB4951sam002- 231 -LRB103 38094 HLH 74177 a


1format required by the Illinois Emergency Management Agency 
2and Office of Homeland Security. The coordinator of the 
3emergency services and disaster agency shall be responsible 
4for the verification and accuracy of their submission to the 
5Illinois Emergency Management Agency and Office of Homeland 
6Security under this subsection. 
7 (d) As used in this Section, "volunteer emergency worker" 
8means a person who serves as a member, other than on a 
9full-time career basis, of a fire department, fire protection 
10district, or fire protection association that has a Fire 
11Department Identification Number issued by the Office of the 
12State Fire Marshal and who does not serve as a member on a 
13full-time career basis for another fire department, fire 
14protection district, fire protection association, or 
15governmental entity. For taxable years beginning on or after 
16January 1, 2024, "volunteer emergency worker" also means a 
17person who is a volunteer member of a county or municipal 
18emergency services and disaster agency pursuant to the 
19Illinois Emergency Management Agency Act. 
20 (e) The Department shall adopt rules to implement and 
21administer this Section, including rules concerning 
22applications for the tax credit. 
23(Source: P.A. 103-9, eff. 6-7-23.)

24
ARTICLE 65. 


 
 
10300HB4951sam002- 232 -LRB103 38094 HLH 74177 a


1 Section 65-5. The Hotel Operators' Occupation Tax Act is 
2amended by changing Sections 2, 3, 4, 5, and 6 and by adding 
3Sections 3-2 and 3-3 as follows:

4 (35 ILCS 145/2) (from Ch. 120, par. 481b.32)
5 Sec. 2. Definitions. As used in this Act, unless the 
6context otherwise requires: 
7 (1) "Hotel" means any building or buildings in which the 
8public may, for a consideration, obtain living quarters, 
9sleeping or housekeeping accommodations. The term includes, 
10but is not limited to, inns, motels, tourist homes or courts, 
11lodging houses, rooming houses and apartment houses, retreat 
12centers, conference centers, and hunting lodges. For the 
13purposes of re-renters of hotel rooms only, "hotel" does not 
14include a short-term rental. 
15 (2) "Operator" means any person engaged in the business of 
16renting, leasing, or letting rooms in operating a hotel. 
17 (3) "Occupancy" means the use or possession, or the right 
18to the use or possession, of any room or rooms in a hotel for 
19any purpose, or the right to the use or possession of the 
20furnishings or to the services and accommodations accompanying 
21the use and possession of the room or rooms.
22 (4) "Room" or "rooms" means any living quarters, sleeping 
23or housekeeping accommodations.
24 (5) "Permanent resident" means any person who occupied or 
25has the right to occupy any room or rooms, regardless of 
 
 
10300HB4951sam002- 233 -LRB103 38094 HLH 74177 a


1whether or not it is the same room or rooms, in a hotel for at 
2least 30 consecutive days.
3 (6) "Rent" or "rental" means the consideration received 
4for occupancy, valued in money, whether received in money or 
5otherwise, including all receipts, cash, credits and property 
6or services of any kind or nature. "Rent" or "rental" includes 
7any fee, charge, or commission received from a guest by a 
8re-renter of hotel rooms specifically in connection with the 
9re-rental of hotel rooms, but does not include any fee, 
10charge, or commission received from a short-term rental by a 
11hosting platform. 
12 (7) "Department" means the Department of Revenue.
13 (8) "Person" means any natural individual, firm, 
14partnership, association, joint stock company, joint 
15adventure, public or private corporation, limited liability 
16company, or a receiver, executor, trustee, guardian or other 
17representative appointed by order of any court.
18 (9) "Re-renter of hotel rooms" means a person who is not 
19employed by the hotel operator but who, either directly or 
20indirectly, through agreements or arrangements with third 
21parties, collects or processes the payment of rent for a hotel 
22room located in this State and (i) obtains the right or 
23authority to grant control of, access to, or occupancy of a 
24hotel room in this State to a guest of the hotel or (ii) 
25facilitates the booking of a hotel room located in this State. 
26A person who obtains those rights or authorities is not 
 
 
10300HB4951sam002- 234 -LRB103 38094 HLH 74177 a


1considered a re-renter of a hotel room if the person operates 
2under a shared hotel brand with the operator. 
3 (10) "Hosting platform" or "platform" means a person who 
4provides an online application, software, website, or system 
5through which a short-term rental located in this State is 
6advertised or held out to the public as available to rent for 
7occupancy. For purposes of this definition, "short-term 
8rental" means an owner-occupied, tenant-occupied, or 
9non-owner-occupied dwelling, including, but not limited to, an 
10apartment, house, cottage, or condominium, located in this 
11State, where: (i) at least one room in the dwelling is rented 
12to an occupant for a period of less than 30 consecutive days; 
13and (ii) all accommodations are reserved in advance; provided, 
14however, that a dwelling shall be considered a single room if 
15rented as such. 
16 (11) "Shared hotel brand" means an identifying trademark 
17that a hotel operator is expressly licensed to operate under 
18in accordance with the terms of a hotel franchise or 
19management agreement 
20(Source: P.A. 100-213, eff. 8-18-17.)

21 (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
22 Sec. 3. Rate; exemptions. 
23 (a) A tax is imposed upon hotel operators persons engaged 
24in the business of renting, leasing or letting rooms in a hotel 
25at the rate of 5% of 94% of the gross rental receipts from 
 
 
10300HB4951sam002- 235 -LRB103 38094 HLH 74177 a


1engaging in business as a hotel operator such renting, leasing 
2or letting, excluding, however, from gross rental receipts, 
3the proceeds of such renting, leasing or letting hotel rooms 
4to permanent residents of a that hotel and proceeds from the 
5tax imposed under subsection (c) of Section 13 of the 
6Metropolitan Pier and Exposition Authority Act.
7 (b) There shall be imposed an additional tax upon hotel 
8operators persons engaged in the business of renting, leasing 
9or letting rooms in a hotel at the rate of 1% of 94% of the 
10gross rental receipts received by the hotel operator from 
11engaging in business as a hotel operator from such renting, 
12leasing or letting, excluding, however, from gross rental 
13receipts, the proceeds of such renting, leasing or letting to 
14permanent residents of that hotel and proceeds from the tax 
15imposed under subsection (c) of Section 13 of the Metropolitan 
16Pier and Exposition Authority Act.
17 (b-5) Beginning on July 1, 2024, if the renting, leasing, 
18or letting of a hotel room is done through a re-renter of hotel 
19rooms, then, subject to the provisions of Sections 3-2 and 
203-3, the re-renter is the hotel operator for the purposes of 
21the taxes under subsections (a) and (b). If the re-renter is 
22headquartered outside of this State and has no presence in 
23this State other than its business as a re-renter, conducted 
24remotely, then, subject to the provisions of Sections 3-2 and 
253-3, such re-renter is the hotel operator for the purposes of 
26the taxes under subsections (a) and (b) if it meets one of the 
 
 
10300HB4951sam002- 236 -LRB103 38094 HLH 74177 a


1following thresholds: 
2  (1) the cumulative gross receipts from rentals in 
3 Illinois by the re-renter of hotel rooms are $100,000 or 
4 more; or 
5  (2) the re-renter of hotel rooms cumulatively enters 
6 into 200 or more separate transactions for rentals in 
7 Illinois. 
8 A re-renter of hotel rooms who is headquartered outside of 
9this State and has no presence in this State other than its 
10business as a re-renter, conducted remotely, shall determine 
11on a quarterly basis, ending on the last day of March, June, 
12September, and December, whether he or she meets the threshold 
13of either paragraph (1) or (2) of this subsection (b-5) for the 
14preceding 12-month period. If such re-renter of hotel rooms 
15meets the threshold of either paragraph (1) or (2) for a 
1612-month period, he or she is subject to tax under this Act and 
17is required to remit the tax imposed under this Act and file 
18returns for the 12-month period beginning on the first day of 
19the next month after he or she determines that he or she meets 
20the threshold of paragraph (1) or (2). At the end of that 
2112-month period, such re-renter of hotel rooms shall determine 
22whether he or she continued to meet the threshold of either 
23paragraph (1) or (2) during the preceding 12-month period. If 
24he or she met the threshold in either paragraph (1) or (2) for 
25the preceding 12-month period, he or she is a hotel operator in 
26this State and is required to remit the tax imposed under this 
 
 
10300HB4951sam002- 237 -LRB103 38094 HLH 74177 a


1Act and file returns for the subsequent 12-month period. If, 
2at the end of a 12-month period during which such re-renter is 
3required to remit the tax imposed under this Act, the 
4re-renter determines that he or she did not meet the threshold 
5in either paragraph (1) or (2) during the preceding 12-month 
6period, he or she shall subsequently determine on a quarterly 
7basis, ending on the last day of March, June, September, and 
8December, whether he or she meets the threshold of either 
9paragraph (1) or (2) for the preceding 12-month period. 
10 (c) No funds received pursuant to this Act shall be used to 
11advertise for or otherwise promote new competition in the 
12hotel business.
13 (d) However, such tax is not imposed upon the privilege of 
14engaging in any business in Interstate Commerce or otherwise, 
15which business may not, under the Constitution and Statutes of 
16the United States, be made the subject of taxation by this 
17State. In addition, the tax is not imposed upon gross rental 
18receipts for which the hotel operator is prohibited from 
19obtaining reimbursement for the tax from the customer by 
20reason of a federal treaty.
21 (d-5) On and after July 1, 2017, the tax imposed by this 
22Act shall not apply to gross rental receipts received by an 
23entity that is organized and operated exclusively for 
24religious purposes and possesses an active Exemption 
25Identification Number issued by the Department pursuant to the 
26Retailers' Occupation Tax Act when acting as a hotel operator 
 
 
10300HB4951sam002- 238 -LRB103 38094 HLH 74177 a


1renting, leasing, or letting rooms: 
2  (1) in furtherance of the purposes for which it is 
3 organized; or 
4  (2) to entities that (i) are organized and operated 
5 exclusively for religious purposes, (ii) possess an active 
6 Exemption Identification Number issued by the Department 
7 pursuant to the Retailers' Occupation Tax Act, and (iii) 
8 rent the rooms in furtherance of the purposes for which 
9 they are organized. 
10 No gross rental receipts are exempt under paragraph (2) of 
11this subsection (d-5) unless the hotel operator obtains the 
12active Exemption Identification Number from the exclusively 
13religious entity to whom it is renting and maintains that 
14number in its books and records. Gross rental receipts from 
15all rentals other than those described in items (1) or (2) of 
16this subsection (d-5) are subject to the tax imposed by this 
17Act unless otherwise exempt under this Act. 
18 This subsection (d-5) is exempt from the sunset provisions 
19of Section 3-5 of this Act. 
20 (d-10) On and after July 1, 2023, the tax imposed by this 
21Act shall not apply to gross rental receipts received from the 
22renting, leasing, or letting of rooms to an entity that is 
23organized and operated exclusively by an organization 
24chartered by the United States Congress for the purpose of 
25providing disaster relief and that possesses an active 
26Exemption Identification Number issued by the Department 
 
 
10300HB4951sam002- 239 -LRB103 38094 HLH 74177 a


1pursuant to the Retailers' Occupation Tax Act if the renting, 
2leasing, or letting of the rooms is in furtherance of the 
3purposes for which the exempt organization is organized. This 
4subsection (d-10) is exempt from the sunset provisions of 
5Section 3-5 of this Act. 
6 (e) Persons subject to the tax imposed by this Act may 
7reimburse themselves for their tax liability under this Act by 
8separately stating such tax as an additional charge, which 
9charge may be stated in combination, in a single amount, with 
10any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the 
11Illinois Municipal Code, and Section 25.05-10 of "An Act to 
12revise the law in relation to counties".
13 (f) If any hotel operator collects an amount (however 
14designated) which purports to reimburse such operator for 
15hotel operators' occupation tax liability measured by receipts 
16which are not subject to hotel operators' occupation tax, or 
17if any hotel operator, in collecting an amount (however 
18designated) which purports to reimburse such operator for 
19hotel operators' occupation tax liability measured by receipts 
20which are subject to tax under this Act, collects more from the 
21guest or re-renter customer than the operators' hotel 
22operators' occupation tax liability in the transaction is, the 
23guest or re-renter, as applicable, customer shall have a legal 
24right to claim a refund of such amount from such operator. 
25However, if such amount is not refunded to the guest or 
26re-renter, as applicable, customer for any reason, the hotel 
 
 
10300HB4951sam002- 240 -LRB103 38094 HLH 74177 a


1operator is liable to pay such amount to the Department.
2(Source: P.A. 103-9, eff. 6-7-23.)

3 (35 ILCS 145/3-2 new)
4 Sec. 3-2. No resale exemption; tax incurred by re-renters 
5of hotel rooms. A hotel operator who rents, leases, or lets 
6rooms subject to tax under this Act to a re-renter of hotel 
7rooms incurs the tax under this Act on the gross rental 
8receipts it receives from that re-renter of hotel rooms and 
9cannot claim any resale exemption. In such situations, the 
10re-renter of hotel rooms incurs tax under this Act on its gross 
11rental receipts as provided in Section 3 of this Act.

12 (35 ILCS 145/3-3 new)
13 Sec. 3-3. Re-renter of hotel rooms; credit for tax 
14reimbursement. A re-renter of hotel rooms may take a credit 
15against the tax it incurs on the rental of a hotel room under 
16this Act for the amount it paid under subsection (e) of Section 
173 of this Act to a hotel operator as reimbursement for the tax 
18incurred under this Act for the rental of that room for the 
19purposes of re-rental.

20 (35 ILCS 145/4) (from Ch. 120, par. 481b.34)
21 Sec. 4. Books and records. Every operator shall keep 
22separate books or records of his business as an operator so as 
23to show the rents and occupancies taxable under this Act 
 
 
10300HB4951sam002- 241 -LRB103 38094 HLH 74177 a


1separately from his transactions not taxable under this Act. 
2If any operator fails to keep such separate books or records, 
3he shall be liable to tax at the rate designated in Section 3 
4hereof upon the entire proceeds from his business hotel. The 
5Department may adopt rules that establish requirements, 
6including record forms and formats, for records required to be 
7kept and maintained by taxpayers. For purposes of this 
8Section, "records" means all data maintained by the taxpayer, 
9including data on paper, microfilm, microfiche or any type of 
10machine-sensible data compilation.
11(Source: P.A. 88-480.)

12 (35 ILCS 145/5) (from Ch. 120, par. 481b.35)
13 Sec. 5. Certificate of registration; retailers' occupation 
14tax registration provisions apply. It shall be unlawful for 
15any person to engage in the business as a hotel operator of 
16renting, leasing or letting rooms in a hotel in this State 
17without a certificate of registration from the Department.
18 All of the provisions of Sections 2a and 2b of the 
19Retailers' Occupation Tax Act, in effect on the effective date 
20of this Act, as subsequently amended, shall apply to persons 
21in the business as hotel operators of renting, leasing or 
22letting rooms in a hotel in this State, to the same extent as 
23if such provisions were included herein.
24(Source: Laws 1961, p. 1728.)

 
 
10300HB4951sam002- 242 -LRB103 38094 HLH 74177 a


1 (35 ILCS 145/6) (from Ch. 120, par. 481b.36)
2 Sec. 6. Returns; allocation of proceeds Filing of returns 
3and distribution of revenue. Except as provided hereinafter in 
4this Section, on or before the last day of each calendar month, 
5every person engaged as a hotel operator in the business of 
6renting, leasing or letting rooms in a hotel in this State 
7during the preceding calendar month shall file a return with 
8the Department, stating:
9  1. The name of the operator;
10  2. His residence address and the address of his 
11 principal place of business and the address of the 
12 principal place of business (if that is a different 
13 address) from which he engages in the business as a hotel 
14 operator of renting, leasing or letting rooms in a hotel 
15 in this State (including, if required by the Department, 
16 the address of each hotel from which rental receipts were 
17 received);
18  3. Total amount of rental receipts received by him 
19 during the preceding calendar month from engaging in 
20 business as a hotel operator renting, leasing or letting 
21 rooms during such preceding calendar month;
22  4. Total amount of rental receipts received by him 
23 during the preceding calendar month from renting, leasing 
24 or letting rooms to permanent residents during such 
25 preceding calendar month;
26  5. Total amount of other exclusions from gross rental 
 
 
10300HB4951sam002- 243 -LRB103 38094 HLH 74177 a


1 receipts allowed by this Act;
2  6. Gross rental receipts which were received by him 
3 during the preceding calendar month and upon the basis of 
4 which the tax is imposed;
5  7. The amount of tax due;
6  8. Credit for any reimbursement of tax paid by a 
7 re-renter of hotel rooms to hotel operators for rentals 
8 purchased for re-rental, as provided in Section 3-3 of 
9 this Act; 
10  9. 8. Such other reasonable information as the 
11 Department may require.
12 If the operator's average monthly tax liability to the 
13Department does not exceed $200, the Department may authorize 
14his returns to be filed on a quarter annual basis, with the 
15return for January, February and March of a given year being 
16due by April 30 of such year; with the return for April, May 
17and June of a given year being due by July 31 of such year; 
18with the return for July, August and September of a given year 
19being due by October 31 of such year, and with the return for 
20October, November and December of a given year being due by 
21January 31 of the following year.
22 If the operator's average monthly tax liability to the 
23Department does not exceed $50, the Department may authorize 
24his returns to be filed on an annual basis, with the return for 
25a given year being due by January 31 of the following year.
26 Such quarter annual and annual returns, as to form and 
 
 
10300HB4951sam002- 244 -LRB103 38094 HLH 74177 a


1substance, shall be subject to the same requirements as 
2monthly returns.
3 Notwithstanding any other provision in this Act concerning 
4the time within which an operator may file his return, in the 
5case of any operator who ceases to engage in a kind of business 
6which makes him responsible for filing returns under this Act, 
7such operator shall file a final return under this Act with the 
8Department not more than 1 month after discontinuing such 
9business.
10 Where the same person has more than 1 business registered 
11with the Department under separate registrations under this 
12Act, such person shall not file each return that is due as a 
13single return covering all such registered businesses, but 
14shall file separate returns for each such registered business.
15 In his return, the operator shall determine the value of 
16any consideration other than money received by him in 
17connection with engaging in business as a hotel operator the 
18renting, leasing or letting of rooms in the course of his 
19business and he shall include such value in his return. Such 
20determination shall be subject to review and revision by the 
21Department in the manner hereinafter provided for the 
22correction of returns.
23 Where the operator is a corporation, the return filed on 
24behalf of such corporation shall be signed by the president, 
25vice-president, secretary or treasurer or by the properly 
26accredited agent of such corporation.
 
 
10300HB4951sam002- 245 -LRB103 38094 HLH 74177 a


1 The person filing the return herein provided for shall, at 
2the time of filing such return, pay to the Department the 
3amount of tax herein imposed. The operator filing the return 
4under this Section shall, at the time of filing such return, 
5pay to the Department the amount of tax imposed by this Act 
6less a discount of 2.1% or $25 per calendar year, whichever is 
7greater, which is allowed to reimburse the operator for the 
8expenses incurred in keeping records, preparing and filing 
9returns, remitting the tax and supplying data to the 
10Department on request.
11 If any payment provided for in this Section exceeds the 
12operator's liabilities under this Act, as shown on an original 
13return, the Department may authorize the operator to credit 
14such excess payment against liability subsequently to be 
15remitted to the Department under this Act, in accordance with 
16reasonable rules adopted by the Department. If the Department 
17subsequently determines that all or any part of the credit 
18taken was not actually due to the operator, the operator's 
19discount shall be reduced by an amount equal to the difference 
20between the discount as applied to the credit taken and that 
21actually due, and that operator shall be liable for penalties 
22and interest on such difference. 
23 There shall be deposited into the Build Illinois Fund in 
24the State Treasury for each State fiscal year 40% of the amount 
25of total net revenue from the tax imposed by subsection (a) of 
26Section 3. Of the remaining 60%: (i) $5,000,000 shall be 
 
 
10300HB4951sam002- 246 -LRB103 38094 HLH 74177 a


1deposited into the Illinois Sports Facilities Fund and 
2credited to the Subsidy Account each fiscal year by making 
3monthly deposits in the amount of 1/8 of $5,000,000 plus 
4cumulative deficiencies in such deposits for prior months, and 
5(ii) an amount equal to the then applicable Advance Amount 
6shall be deposited into the Illinois Sports Facilities Fund 
7and credited to the Advance Account each fiscal year by making 
8monthly deposits in the amount of 1/8 of the then applicable 
9Advance Amount plus any cumulative deficiencies in such 
10deposits for prior months. (The deposits of the then 
11applicable Advance Amount during each fiscal year shall be 
12treated as advances of funds to the Illinois Sports Facilities 
13Authority for its corporate purposes to the extent paid to the 
14Authority or its trustee and shall be repaid into the General 
15Revenue Fund in the State Treasury by the State Treasurer on 
16behalf of the Authority pursuant to Section 19 of the Illinois 
17Sports Facilities Authority Act, as amended. If in any fiscal 
18year the full amount of the then applicable Advance Amount is 
19not repaid into the General Revenue Fund, then the deficiency 
20shall be paid from the amount in the Local Government 
21Distributive Fund that would otherwise be allocated to the 
22City of Chicago under the State Revenue Sharing Act.)
23 For purposes of the foregoing paragraph, the term "Advance 
24Amount" means, for fiscal year 2002, $22,179,000, and for 
25subsequent fiscal years through fiscal year 2033, 105.615% of 
26the Advance Amount for the immediately preceding fiscal year, 
 
 
10300HB4951sam002- 247 -LRB103 38094 HLH 74177 a


1rounded up to the nearest $1,000.
2 Of the remaining 60% of the amount of total net revenue 
3beginning on August 1, 2011 through June 30, 2023, from the tax 
4imposed by subsection (a) of Section 3 after all required 
5deposits into the Illinois Sports Facilities Fund, an amount 
6equal to 8% of the net revenue realized from this Act during 
7the preceding month shall be deposited as follows: 18% of such 
8amount shall be deposited into the Chicago Travel Industry 
9Promotion Fund for the purposes described in subsection (n) of 
10Section 5 of the Metropolitan Pier and Exposition Authority 
11Act and the remaining 82% of such amount shall be deposited 
12into the Local Tourism Fund each month for purposes authorized 
13by Section 605-705 of the Department of Commerce and Economic 
14Opportunity Law. Beginning on August 1, 2011 and through June 
1530, 2023, an amount equal to 4.5% of the net revenue realized 
16from this Act during the preceding month shall be deposited as 
17follows: 55% of such amount shall be deposited into the 
18Chicago Travel Industry Promotion Fund for the purposes 
19described in subsection (n) of Section 5 of the Metropolitan 
20Pier and Exposition Authority Act and the remaining 45% of 
21such amount deposited into the International Tourism Fund for 
22the purposes authorized in Section 605-707 of the Department 
23of Commerce and Economic Opportunity Law. "Net revenue 
24realized" means the revenue collected by the State under this 
25Act less the amount paid out as refunds to taxpayers for 
26overpayment of liability under this Act.
 
 
10300HB4951sam002- 248 -LRB103 38094 HLH 74177 a


1 Beginning on July 1, 2023, of the remaining 60% of the 
2amount of total net revenue realized from the tax imposed 
3under subsection (a) of Section 3, after all required deposits 
4into the Illinois Sports Facilities Fund: 
5  (1) an amount equal to 8% of the net revenue realized 
6 under this Act for the preceding month shall be deposited 
7 as follows: 82% to the Local Tourism Fund and 18% to the 
8 Chicago Travel Industry Promotion Fund; and
9  (2) an amount equal to 4.5% of the net revenue 
10 realized under this Act for the preceding month shall be 
11 deposited as follows: 55% to the Chicago Travel Industry 
12 Promotion Fund and 45% to the International Tourism Fund. 
13 After making all these deposits, any remaining net revenue 
14realized from the tax imposed under subsection (a) of Section 
153 shall be deposited into the Tourism Promotion Fund in the 
16State Treasury. All moneys received by the Department from the 
17additional tax imposed under subsection (b) of Section 3 shall 
18be deposited into the Build Illinois Fund in the State 
19Treasury.
20 The Department may, upon separate written notice to a 
21taxpayer, require the taxpayer to prepare and file with the 
22Department on a form prescribed by the Department within not 
23less than 60 days after receipt of the notice an annual 
24information return for the tax year specified in the notice. 
25Such annual return to the Department shall include a statement 
26of gross receipts as shown by the operator's last State income 
 
 
10300HB4951sam002- 249 -LRB103 38094 HLH 74177 a


1tax return. If the total receipts of the business as reported 
2in the State income tax return do not agree with the gross 
3receipts reported to the Department for the same period, the 
4operator shall attach to his annual information return a 
5schedule showing a reconciliation of the 2 amounts and the 
6reasons for the difference. The operator's annual information 
7return to the Department shall also disclose payroll 
8information of the operator's business during the year covered 
9by such return and any additional reasonable information which 
10the Department deems would be helpful in determining the 
11accuracy of the monthly, quarterly or annual tax returns by 
12such operator as hereinbefore provided for in this Section.
13 If the annual information return required by this Section 
14is not filed when and as required the taxpayer shall be liable 
15for a penalty in an amount determined in accordance with 
16Section 3-4 of the Uniform Penalty and Interest Act until such 
17return is filed as required, the penalty to be assessed and 
18collected in the same manner as any other penalty provided for 
19in this Act.
20 The chief executive officer, proprietor, owner or highest 
21ranking manager shall sign the annual return to certify the 
22accuracy of the information contained therein. Any person who 
23willfully signs the annual return containing false or 
24inaccurate information shall be guilty of perjury and punished 
25accordingly. The annual return form prescribed by the 
26Department shall include a warning that the person signing the 
 
 
10300HB4951sam002- 250 -LRB103 38094 HLH 74177 a


1return may be liable for perjury.
2 The foregoing portion of this Section concerning the 
3filing of an annual information return shall not apply to an 
4operator who is not required to file an income tax return with 
5the United States Government.
6(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)

7 Section 65-10. The Illinois Municipal Code is amended by 
8changing Section 8-3-13 as follows:

9 (65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13)
10 Sec. 8-3-13. The corporate authorities of any municipality 
11containing 500,000 or more inhabitants may impose a tax prior 
12to July 1, 1969, upon all hotel operators persons engaged in 
13the municipality in the business of renting, leasing or 
14letting rooms in a hotel, as defined in the Hotel Operators' 
15Occupation Tax Act, at a rate not to exceed 1% of the gross 
16rental receipts from engaging in business as a hotel operator 
17the renting, leasing or letting, excluding, however, from 
18gross rental receipts, the proceeds of the renting, leasing or 
19letting of hotel rooms to permanent residents of a that hotel 
20and proceeds from the tax imposed under subsection (c) of 
21Section 13 of the Metropolitan Pier and Exposition Authority 
22Act.
23 The tax imposed by a municipality under this Section and 
24all civil penalties that may be assessed as an incident 
 
 
10300HB4951sam002- 251 -LRB103 38094 HLH 74177 a


1thereof shall be collected and enforced by the State 
2Department of Revenue. The certificate of registration that is 
3issued by the Department to a lessor under the Hotel 
4Operators' Occupation Tax Act shall permit the registrant to 
5engage in a business that is taxable under any ordinance or 
6resolution enacted under this Section without registering 
7separately with the Department under the ordinance or 
8resolution or under this Section. The Department shall have 
9full power to administer and enforce this Section; to collect 
10all taxes and penalties due hereunder; to dispose of taxes and 
11penalties so collected in the manner provided in this Section; 
12and to determine all rights to credit memoranda arising on 
13account of the erroneous payment of tax or penalty hereunder. 
14In the administration of and compliance with this Section, the 
15Department and persons who are subject to this Section shall 
16have the same rights, remedies, privileges, immunities, powers 
17and duties, and be subject to the same conditions, 
18restrictions, limitations, penalties and definitions of terms, 
19and employ the same modes of procedure, as are prescribed in 
20the Hotel Operators' Occupation Tax Act and the Uniform 
21Penalty and Interest Act, as fully as if the provisions 
22contained in those Acts were set forth herein.
23 Whenever the Department determines that a refund should be 
24made under this Section to a claimant instead of issuing a 
25credit memorandum, the Department shall notify the State 
26Comptroller, who shall cause the warrant to be drawn for the 
 
 
10300HB4951sam002- 252 -LRB103 38094 HLH 74177 a


1amount specified, and to the person named, in the notification 
2from the Department. The refund shall be paid by the State 
3Treasurer out of the Illinois tourism tax fund.
4 Persons subject to any tax imposed under authority granted 
5by this Section may reimburse themselves for their tax 
6liability for that tax by separately stating the tax as an 
7additional charge, which charge may be stated in combination, 
8in a single amount, with State tax imposed under the Hotel 
9Operators' Occupation Tax Act.
10 The Department shall forthwith pay over to the State 
11Treasurer, ex-officio, as trustee, all taxes and penalties 
12collected hereunder. On or before the 25th day of each 
13calendar month, the Department shall prepare and certify to 
14the Comptroller the disbursement of stated sums of money to 
15named municipalities from which lessors have paid taxes or 
16penalties hereunder to the Department during the second 
17preceding calendar month. The amount to be paid to each 
18municipality shall be the amount (not including credit 
19memoranda) collected hereunder during the second preceding 
20calendar month by the Department, and not including an amount 
21equal to the amount of refunds made during the second 
22preceding calendar month by the Department on behalf of the 
23municipality, less 4% of the balance, which sum shall be 
24retained by the State Treasurer to cover the costs incurred by 
25the Department in administering and enforcing the provisions 
26of this Section, as provided herein. The Department, at the 
 
 
10300HB4951sam002- 253 -LRB103 38094 HLH 74177 a


1time of each monthly disbursement to the municipalities, shall 
2prepare and certify to the Comptroller the amount so retained 
3by the State Treasurer, which shall be paid into the General 
4Revenue Fund of the State Treasury.
5 Within 10 days after receipt by the Comptroller of the 
6disbursement certification to the municipalities and the 
7General Revenue Fund provided for in this Section to be given 
8to the Comptroller by the Department, the Comptroller shall 
9cause the warrants to be drawn for the respective amounts in 
10accordance with the directions contained in the certification.
11 Nothing in this Section shall be construed to authorize a 
12municipality to impose a tax upon the privilege of engaging in 
13any business that, under the Constitution of the United 
14States, may not be made the subject of taxation by this State.
15 An ordinance or resolution imposing a tax hereunder or 
16effecting a change in the rate thereof shall be effective on 
17the first day of the calendar month next following the 
18expiration of the publication period provided in Section 1-2-4 
19in respect to municipalities governed by that Section.
20 The corporate authorities of any municipality that levies 
21a tax authorized by this Section shall transmit to the 
22Department of Revenue on or not later than 5 days after the 
23effective date of the ordinance or resolution a certified copy 
24of the ordinance or resolution imposing the tax; whereupon, 
25the Department of Revenue shall proceed to administer and 
26enforce this Section on behalf of the municipality as of the 
 
 
10300HB4951sam002- 254 -LRB103 38094 HLH 74177 a


1effective date of the ordinance or resolution. Upon a change 
2in rate of a tax levied hereunder, or upon the discontinuance 
3of the tax, the corporate authorities of the municipality 
4shall, on or not later than 5 days after the effective date of 
5the ordinance or resolution discontinuing the tax or effecting 
6a change in rate, transmit to the Department of Revenue a 
7certified copy of the ordinance or resolution effecting the 
8change or discontinuance. The amounts disbursed to any 
9municipality under this Section shall be expended by the 
10municipality solely to promote tourism, conventions and other 
11special events within that municipality or otherwise to 
12attract nonresidents to visit the municipality.
13 Any municipality receiving and disbursing money under this 
14Section shall report on or before the first Monday in January 
15of each year to the Advisory Committee of the Illinois Tourism 
16Promotion Fund, created by Section 12 of the Illinois 
17Promotion Act. The reports shall specify the purposes for 
18which the disbursements were made and shall contain detailed 
19amounts of all receipts and disbursements under this Section.
20 This Section may be cited as the Tourism, Conventions and 
21Other Special Events Promotion Act of 1967.
22(Source: P.A. 87-205; 87-733; 87-895.)

23 Section 65-15. The Metropolitan Pier and Exposition 
24Authority Act is amended by changing Section 13 as follows:

 
 
10300HB4951sam002- 255 -LRB103 38094 HLH 74177 a


1 (70 ILCS 210/13) (from Ch. 85, par. 1233)
2 Sec. 13. (a) The Authority shall not have power to levy 
3taxes for any purpose, except as provided in subsections (b), 
4(c), (d), (e), and (f).
5 (b) By ordinance the Authority shall, as soon as 
6practicable after July 1, 1992 (the effective date of Public 
7Act 87-733), impose a Metropolitan Pier and Exposition 
8Authority Retailers' Occupation Tax upon all persons engaged 
9in the business of selling tangible personal property at 
10retail within the territory described in this subsection at 
11the rate of 1.0% of the gross receipts (i) from the sale of 
12food, alcoholic beverages, and soft drinks sold for 
13consumption on the premises where sold and (ii) from the sale 
14of food, alcoholic beverages, and soft drinks sold for 
15consumption off the premises where sold by a retailer whose 
16principal source of gross receipts is from the sale of food, 
17alcoholic beverages, and soft drinks prepared for immediate 
18consumption.
19 The tax imposed under this subsection and all civil 
20penalties that may be assessed as an incident to that tax shall 
21be collected and enforced by the Illinois Department of 
22Revenue. The Department shall have full power to administer 
23and enforce this subsection, to collect all taxes and 
24penalties so collected in the manner provided in this 
25subsection, and to determine all rights to credit memoranda 
26arising on account of the erroneous payment of tax or penalty 
 
 
10300HB4951sam002- 256 -LRB103 38094 HLH 74177 a


1under this subsection. In the administration of and compliance 
2with this subsection, the Department and persons who are 
3subject to this subsection shall have the same rights, 
4remedies, privileges, immunities, powers, and duties, shall be 
5subject to the same conditions, restrictions, limitations, 
6penalties, exclusions, exemptions, and definitions of terms, 
7and shall employ the same modes of procedure applicable to 
8this Retailers' Occupation Tax as are prescribed in Sections 
91, 2 through 2-65 (in respect to all provisions of those 
10Sections other than the State rate of taxes), 2c, 2h, 2i, 3 
11(except as to the disposition of taxes and penalties 
12collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 
136b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until January 1, 1994, 
1413.5 of the Retailers' Occupation Tax Act, and, on and after 
15January 1, 1994, all applicable provisions of the Uniform 
16Penalty and Interest Act that are not inconsistent with this 
17Act, as fully as if provisions contained in those Sections of 
18the Retailers' Occupation Tax Act were set forth in this 
19subsection.
20 Persons subject to any tax imposed under the authority 
21granted in this subsection may reimburse themselves for their 
22seller's tax liability under this subsection by separately 
23stating that tax as an additional charge, which charge may be 
24stated in combination, in a single amount, with State taxes 
25that sellers are required to collect under the Use Tax Act, 
26pursuant to bracket schedules as the Department may prescribe. 
 
 
10300HB4951sam002- 257 -LRB103 38094 HLH 74177 a


1The retailer filing the return shall, at the time of filing the 
2return, pay to the Department the amount of tax imposed under 
3this subsection, less a discount of 1.75%, which is allowed to 
4reimburse the retailer for the expenses incurred in keeping 
5records, preparing and filing returns, remitting the tax, and 
6supplying data to the Department on request.
7 Whenever the Department determines that a refund should be 
8made under this subsection to a claimant instead of issuing a 
9credit memorandum, the Department shall notify the State 
10Comptroller, who shall cause a warrant to be drawn for the 
11amount specified and to the person named in the notification 
12from the Department. The refund shall be paid by the State 
13Treasurer out of the Metropolitan Pier and Exposition 
14Authority trust fund held by the State Treasurer as trustee 
15for the Authority.
16 Nothing in this subsection authorizes the Authority to 
17impose a tax upon the privilege of engaging in any business 
18that under the Constitution of the United States may not be 
19made the subject of taxation by this State.
20 The Department shall forthwith pay over to the State 
21Treasurer, ex officio, as trustee for the Authority, all taxes 
22and penalties collected under this subsection for deposit into 
23a trust fund held outside of the State Treasury. 
24 As soon as possible after the first day of each month, 
25beginning January 1, 2011, upon certification of the 
26Department of Revenue, the Comptroller shall order 
 
 
10300HB4951sam002- 258 -LRB103 38094 HLH 74177 a


1transferred, and the Treasurer shall transfer, to the STAR 
2Bonds Revenue Fund the local sales tax increment, as defined 
3in the Innovation Development and Economy Act, collected under 
4this subsection during the second preceding calendar month for 
5sales within a STAR bond district.
6 After the monthly transfer to the STAR Bonds Revenue Fund, 
7on or before the 25th day of each calendar month, the 
8Department shall prepare and certify to the Comptroller the 
9amounts to be paid under subsection (g) of this Section, which 
10shall be the amounts, not including credit memoranda, 
11collected under this subsection during the second preceding 
12calendar month by the Department, less any amounts determined 
13by the Department to be necessary for the payment of refunds, 
14less 1.5% of such balance, which sum shall be deposited by the 
15State Treasurer into the Tax Compliance and Administration 
16Fund in the State Treasury from which it shall be appropriated 
17to the Department to cover the costs of the Department in 
18administering and enforcing the provisions of this subsection, 
19and less any amounts that are transferred to the STAR Bonds 
20Revenue Fund. Within 10 days after receipt by the Comptroller 
21of the certification, the Comptroller shall cause the orders 
22to be drawn for the remaining amounts, and the Treasurer shall 
23administer those amounts as required in subsection (g).
24 A certificate of registration issued by the Illinois 
25Department of Revenue to a retailer under the Retailers' 
26Occupation Tax Act shall permit the registrant to engage in a 
 
 
10300HB4951sam002- 259 -LRB103 38094 HLH 74177 a


1business that is taxed under the tax imposed under this 
2subsection, and no additional registration shall be required 
3under the ordinance imposing the tax or under this subsection.
4 A certified copy of any ordinance imposing or 
5discontinuing any tax under this subsection or effecting a 
6change in the rate of that tax shall be filed with the 
7Department, whereupon the Department shall proceed to 
8administer and enforce this subsection on behalf of the 
9Authority as of the first day of the third calendar month 
10following the date of filing.
11 The tax authorized to be levied under this subsection may 
12be levied within all or any part of the following described 
13portions of the metropolitan area:
14  (1) that portion of the City of Chicago located within 
15 the following area: Beginning at the point of intersection 
16 of the Cook County - DuPage County line and York Road, then 
17 North along York Road to its intersection with Touhy 
18 Avenue, then east along Touhy Avenue to its intersection 
19 with the Northwest Tollway, then southeast along the 
20 Northwest Tollway to its intersection with Lee Street, 
21 then south along Lee Street to Higgins Road, then south 
22 and east along Higgins Road to its intersection with 
23 Mannheim Road, then south along Mannheim Road to its 
24 intersection with Irving Park Road, then west along Irving 
25 Park Road to its intersection with the Cook County - 
26 DuPage County line, then north and west along the county 
 
 
10300HB4951sam002- 260 -LRB103 38094 HLH 74177 a


1 line to the point of beginning; and
2  (2) that portion of the City of Chicago located within 
3 the following area: Beginning at the intersection of West 
4 55th Street with Central Avenue, then east along West 55th 
5 Street to its intersection with South Cicero Avenue, then 
6 south along South Cicero Avenue to its intersection with 
7 West 63rd Street, then west along West 63rd Street to its 
8 intersection with South Central Avenue, then north along 
9 South Central Avenue to the point of beginning; and
10  (3) that portion of the City of Chicago located within 
11 the following area: Beginning at the point 150 feet west 
12 of the intersection of the west line of North Ashland 
13 Avenue and the north line of West Diversey Avenue, then 
14 north 150 feet, then east along a line 150 feet north of 
15 the north line of West Diversey Avenue extended to the 
16 shoreline of Lake Michigan, then following the shoreline 
17 of Lake Michigan (including Navy Pier and all other 
18 improvements fixed to land, docks, or piers) to the point 
19 where the shoreline of Lake Michigan and the Adlai E. 
20 Stevenson Expressway extended east to that shoreline 
21 intersect, then west along the Adlai E. Stevenson 
22 Expressway to a point 150 feet west of the west line of 
23 South Ashland Avenue, then north along a line 150 feet 
24 west of the west line of South and North Ashland Avenue to 
25 the point of beginning.
26 The tax authorized to be levied under this subsection may 
 
 
10300HB4951sam002- 261 -LRB103 38094 HLH 74177 a


1also be levied on food, alcoholic beverages, and soft drinks 
2sold on boats and other watercraft departing from and 
3returning to the shoreline of Lake Michigan (including Navy 
4Pier and all other improvements fixed to land, docks, or 
5piers) described in item (3).
6 (c) By ordinance the Authority shall, as soon as 
7practicable after July 1, 1992 (the effective date of Public 
8Act 87-733), impose an occupation tax upon all hotel operators 
9persons engaged in the corporate limits of the City of Chicago 
10in the business of renting, leasing, or letting rooms in a 
11hotel, as defined in the Hotel Operators' Occupation Tax Act, 
12at a rate of 2.5% of the gross rental receipts from engaging in 
13business as a hotel operator the renting, leasing, or letting 
14of hotel rooms within the City of Chicago, excluding, however, 
15from gross rental receipts the proceeds of renting, leasing, 
16or letting of hotel rooms to permanent residents of a hotel, as 
17defined in that Act. Gross rental receipts shall not include 
18charges that are added on account of the liability arising 
19from any tax imposed by the State or any governmental agency on 
20the occupation of renting, leasing, or letting rooms in a 
21hotel.
22 The tax imposed by the Authority under this subsection and 
23all civil penalties that may be assessed as an incident to that 
24tax shall be collected and enforced by the Illinois Department 
25of Revenue. The certificate of registration that is issued by 
26the Department to a lessor under the Hotel Operators' 
 
 
10300HB4951sam002- 262 -LRB103 38094 HLH 74177 a


1Occupation Tax Act shall permit that registrant to engage in a 
2business that is taxable under any ordinance enacted under 
3this subsection without registering separately with the 
4Department under that ordinance or under this subsection. The 
5Department shall have full power to administer and enforce 
6this subsection, to collect all taxes and penalties due under 
7this subsection, to dispose of taxes and penalties so 
8collected in the manner provided in this subsection, and to 
9determine all rights to credit memoranda arising on account of 
10the erroneous payment of tax or penalty under this subsection. 
11In the administration of and compliance with this subsection, 
12the Department and persons who are subject to this subsection 
13shall have the same rights, remedies, privileges, immunities, 
14powers, and duties, shall be subject to the same conditions, 
15restrictions, limitations, penalties, and definitions of 
16terms, and shall employ the same modes of procedure as are 
17prescribed in the Hotel Operators' Occupation Tax Act (except 
18where that Act is inconsistent with this subsection), as fully 
19as if the provisions contained in the Hotel Operators' 
20Occupation Tax Act were set out in this subsection.
21 Whenever the Department determines that a refund should be 
22made under this subsection to a claimant instead of issuing a 
23credit memorandum, the Department shall notify the State 
24Comptroller, who shall cause a warrant to be drawn for the 
25amount specified and to the person named in the notification 
26from the Department. The refund shall be paid by the State 
 
 
10300HB4951sam002- 263 -LRB103 38094 HLH 74177 a


1Treasurer out of the Metropolitan Pier and Exposition 
2Authority trust fund held by the State Treasurer as trustee 
3for the Authority.
4 Persons subject to any tax imposed under the authority 
5granted in this subsection may reimburse themselves for their 
6tax liability for that tax by separately stating that tax as an 
7additional charge, which charge may be stated in combination, 
8in a single amount, with State taxes imposed under the Hotel 
9Operators' Occupation Tax Act, the municipal tax imposed under 
10Section 8-3-13 of the Illinois Municipal Code, and the tax 
11imposed under Section 19 of the Illinois Sports Facilities 
12Authority Act.
13 The person filing the return shall, at the time of filing 
14the return, pay to the Department the amount of tax, less a 
15discount of 2.1% or $25 per calendar year, whichever is 
16greater, which is allowed to reimburse the operator for the 
17expenses incurred in keeping records, preparing and filing 
18returns, remitting the tax, and supplying data to the 
19Department on request.
20 Except as otherwise provided in this paragraph, the 
21Department shall forthwith pay over to the State Treasurer, ex 
22officio, as trustee for the Authority, all taxes and penalties 
23collected under this subsection for deposit into a trust fund 
24held outside the State Treasury. On or before the 25th day of 
25each calendar month, the Department shall certify to the 
26Comptroller the amounts to be paid under subsection (g) of 
 
 
10300HB4951sam002- 264 -LRB103 38094 HLH 74177 a


1this Section, which shall be the amounts (not including credit 
2memoranda) collected under this subsection during the second 
3preceding calendar month by the Department, less any amounts 
4determined by the Department to be necessary for payment of 
5refunds, less 1.5% of the remainder, which the Department 
6shall transfer into the Tax Compliance and Administration 
7Fund. The Department, at the time of each monthly disbursement 
8to the Authority, shall prepare and certify to the State 
9Comptroller the amount to be transferred into the Tax 
10Compliance and Administration Fund under this subsection. 
11Within 10 days after receipt by the Comptroller of the 
12Department's certification, the Comptroller shall cause the 
13orders to be drawn for such amounts, and the Treasurer shall 
14administer the amounts distributed to the Authority as 
15required in subsection (g).
16 A certified copy of any ordinance imposing or 
17discontinuing a tax under this subsection or effecting a 
18change in the rate of that tax shall be filed with the Illinois 
19Department of Revenue, whereupon the Department shall proceed 
20to administer and enforce this subsection on behalf of the 
21Authority as of the first day of the third calendar month 
22following the date of filing.
23 (d) By ordinance the Authority shall, as soon as 
24practicable after July 1, 1992 (the effective date of Public 
25Act 87-733), impose a tax upon all persons engaged in the 
26business of renting automobiles in the metropolitan area at 
 
 
10300HB4951sam002- 265 -LRB103 38094 HLH 74177 a


1the rate of 6% of the gross receipts from that business, except 
2that no tax shall be imposed on the business of renting 
3automobiles for use as taxicabs or in livery service. The tax 
4imposed under this subsection and all civil penalties that may 
5be assessed as an incident to that tax shall be collected and 
6enforced by the Illinois Department of Revenue. The 
7certificate of registration issued by the Department to a 
8retailer under the Retailers' Occupation Tax Act or under the 
9Automobile Renting Occupation and Use Tax Act shall permit 
10that person to engage in a business that is taxable under any 
11ordinance enacted under this subsection without registering 
12separately with the Department under that ordinance or under 
13this subsection. The Department shall have full power to 
14administer and enforce this subsection, to collect all taxes 
15and penalties due under this subsection, to dispose of taxes 
16and penalties so collected in the manner provided in this 
17subsection, and to determine all rights to credit memoranda 
18arising on account of the erroneous payment of tax or penalty 
19under this subsection. In the administration of and compliance 
20with this subsection, the Department and persons who are 
21subject to this subsection shall have the same rights, 
22remedies, privileges, immunities, powers, and duties, be 
23subject to the same conditions, restrictions, limitations, 
24penalties, and definitions of terms, and employ the same modes 
25of procedure as are prescribed in Sections 2 and 3 (in respect 
26to all provisions of those Sections other than the State rate 
 
 
10300HB4951sam002- 266 -LRB103 38094 HLH 74177 a


1of tax; and in respect to the provisions of the Retailers' 
2Occupation Tax Act referred to in those Sections, except as to 
3the disposition of taxes and penalties collected, except for 
4the provision allowing retailers a deduction from the tax to 
5cover certain costs, and except that credit memoranda issued 
6under this subsection may not be used to discharge any State 
7tax liability) of the Automobile Renting Occupation and Use 
8Tax Act, as fully as if provisions contained in those Sections 
9of that Act were set forth in this subsection.
10 Persons subject to any tax imposed under the authority 
11granted in this subsection may reimburse themselves for their 
12tax liability under this subsection by separately stating that 
13tax as an additional charge, which charge may be stated in 
14combination, in a single amount, with State tax that sellers 
15are required to collect under the Automobile Renting 
16Occupation and Use Tax Act, pursuant to bracket schedules as 
17the Department may prescribe.
18 Whenever the Department determines that a refund should be 
19made under this subsection to a claimant instead of issuing a 
20credit memorandum, the Department shall notify the State 
21Comptroller, who shall cause a warrant to be drawn for the 
22amount specified and to the person named in the notification 
23from the Department. The refund shall be paid by the State 
24Treasurer out of the Metropolitan Pier and Exposition 
25Authority trust fund held by the State Treasurer as trustee 
26for the Authority.
 
 
10300HB4951sam002- 267 -LRB103 38094 HLH 74177 a


1 Except as otherwise provided in this paragraph, the 
2Department shall forthwith pay over to the State Treasurer, ex 
3officio, as trustee, all taxes and penalties collected under 
4this subsection for deposit into a trust fund held outside the 
5State Treasury. On or before the 25th day of each calendar 
6month, the Department shall certify to the Comptroller the 
7amounts to be paid under subsection (g) of this Section (not 
8including credit memoranda) collected under this subsection 
9during the second preceding calendar month by the Department, 
10less any amount determined by the Department to be necessary 
11for payment of refunds, less 1.5% of the remainder, which the 
12Department shall transfer into the Tax Compliance and 
13Administration Fund. The Department, at the time of each 
14monthly disbursement to the Authority, shall prepare and 
15certify to the State Comptroller the amount to be transferred 
16into the Tax Compliance and Administration Fund under this 
17subsection. Within 10 days after receipt by the Comptroller of 
18the Department's certification, the Comptroller shall cause 
19the orders to be drawn for such amounts, and the Treasurer 
20shall administer the amounts distributed to the Authority as 
21required in subsection (g).
22 Nothing in this subsection authorizes the Authority to 
23impose a tax upon the privilege of engaging in any business 
24that under the Constitution of the United States may not be 
25made the subject of taxation by this State.
26 A certified copy of any ordinance imposing or 
 
 
10300HB4951sam002- 268 -LRB103 38094 HLH 74177 a


1discontinuing a tax under this subsection or effecting a 
2change in the rate of that tax shall be filed with the Illinois 
3Department of Revenue, whereupon the Department shall proceed 
4to administer and enforce this subsection on behalf of the 
5Authority as of the first day of the third calendar month 
6following the date of filing.
7 (e) By ordinance the Authority shall, as soon as 
8practicable after July 1, 1992 (the effective date of Public 
9Act 87-733), impose a tax upon the privilege of using in the 
10metropolitan area an automobile that is rented from a rentor 
11outside Illinois and is titled or registered with an agency of 
12this State's government at a rate of 6% of the rental price of 
13that automobile, except that no tax shall be imposed on the 
14privilege of using automobiles rented for use as taxicabs or 
15in livery service. The tax shall be collected from persons 
16whose Illinois address for titling or registration purposes is 
17given as being in the metropolitan area. The tax shall be 
18collected by the Department of Revenue for the Authority. The 
19tax must be paid to the State or an exemption determination 
20must be obtained from the Department of Revenue before the 
21title or certificate of registration for the property may be 
22issued. The tax or proof of exemption may be transmitted to the 
23Department by way of the State agency with which or State 
24officer with whom the tangible personal property must be 
25titled or registered if the Department and that agency or 
26State officer determine that this procedure will expedite the 
 
 
10300HB4951sam002- 269 -LRB103 38094 HLH 74177 a


1processing of applications for title or registration.
2 The Department shall have full power to administer and 
3enforce this subsection, to collect all taxes, penalties, and 
4interest due under this subsection, to dispose of taxes, 
5penalties, and interest so collected in the manner provided in 
6this subsection, and to determine all rights to credit 
7memoranda or refunds arising on account of the erroneous 
8payment of tax, penalty, or interest under this subsection. In 
9the administration of and compliance with this subsection, the 
10Department and persons who are subject to this subsection 
11shall have the same rights, remedies, privileges, immunities, 
12powers, and duties, be subject to the same conditions, 
13restrictions, limitations, penalties, and definitions of 
14terms, and employ the same modes of procedure as are 
15prescribed in Sections 2 and 4 (except provisions pertaining 
16to the State rate of tax; and in respect to the provisions of 
17the Use Tax Act referred to in that Section, except provisions 
18concerning collection or refunding of the tax by retailers, 
19except the provisions of Section 19 pertaining to claims by 
20retailers, except the last paragraph concerning refunds, and 
21except that credit memoranda issued under this subsection may 
22not be used to discharge any State tax liability) of the 
23Automobile Renting Occupation and Use Tax Act, as fully as if 
24provisions contained in those Sections of that Act were set 
25forth in this subsection.
26 Whenever the Department determines that a refund should be 
 
 
10300HB4951sam002- 270 -LRB103 38094 HLH 74177 a


1made under this subsection to a claimant instead of issuing a 
2credit memorandum, the Department shall notify the State 
3Comptroller, who shall cause a warrant to be drawn for the 
4amount specified and to the person named in the notification 
5from the Department. The refund shall be paid by the State 
6Treasurer out of the Metropolitan Pier and Exposition 
7Authority trust fund held by the State Treasurer as trustee 
8for the Authority.
9 Except as otherwise provided in this paragraph, the 
10Department shall forthwith pay over to the State Treasurer, ex 
11officio, as trustee, all taxes, penalties, and interest 
12collected under this subsection for deposit into a trust fund 
13held outside the State Treasury. On or before the 25th day of 
14each calendar month, the Department shall certify to the State 
15Comptroller the amounts to be paid under subsection (g) of 
16this Section, which shall be the amounts (not including credit 
17memoranda) collected under this subsection during the second 
18preceding calendar month by the Department, less any amounts 
19determined by the Department to be necessary for payment of 
20refunds, less 1.5% of the remainder, which the Department 
21shall transfer into the Tax Compliance and Administration 
22Fund. The Department, at the time of each monthly disbursement 
23to the Authority, shall prepare and certify to the State 
24Comptroller the amount to be transferred into the Tax 
25Compliance and Administration Fund under this subsection. 
26Within 10 days after receipt by the State Comptroller of the 
 
 
10300HB4951sam002- 271 -LRB103 38094 HLH 74177 a


1Department's certification, the Comptroller shall cause the 
2orders to be drawn for such amounts, and the Treasurer shall 
3administer the amounts distributed to the Authority as 
4required in subsection (g).
5 A certified copy of any ordinance imposing or 
6discontinuing a tax or effecting a change in the rate of that 
7tax shall be filed with the Illinois Department of Revenue, 
8whereupon the Department shall proceed to administer and 
9enforce this subsection on behalf of the Authority as of the 
10first day of the third calendar month following the date of 
11filing.
12 (f) By ordinance the Authority shall, as soon as 
13practicable after July 1, 1992 (the effective date of Public 
14Act 87-733), impose an occupation tax on all persons, other 
15than a governmental agency, engaged in the business of 
16providing ground transportation for hire to passengers in the 
17metropolitan area at a rate of (i) $4 per taxi or livery 
18vehicle departure with passengers for hire from commercial 
19service airports in the metropolitan area, (ii) for each 
20departure with passengers for hire from a commercial service 
21airport in the metropolitan area in a bus or van operated by a 
22person other than a person described in item (iii): $18 per bus 
23or van with a capacity of 1-12 passengers, $36 per bus or van 
24with a capacity of 13-24 passengers, and $54 per bus or van 
25with a capacity of over 24 passengers, and (iii) for each 
26departure with passengers for hire from a commercial service 
 
 
10300HB4951sam002- 272 -LRB103 38094 HLH 74177 a


1airport in the metropolitan area in a bus or van operated by a 
2person regulated by the Interstate Commerce Commission or 
3Illinois Commerce Commission, operating scheduled service from 
4the airport, and charging fares on a per passenger basis: $2 
5per passenger for hire in each bus or van. The term "commercial 
6service airports" means those airports receiving scheduled 
7passenger service and enplaning more than 100,000 passengers 
8per year.
9 In the ordinance imposing the tax, the Authority may 
10provide for the administration and enforcement of the tax and 
11the collection of the tax from persons subject to the tax as 
12the Authority determines to be necessary or practicable for 
13the effective administration of the tax. The Authority may 
14enter into agreements as it deems appropriate with any 
15governmental agency providing for that agency to act as the 
16Authority's agent to collect the tax.
17 In the ordinance imposing the tax, the Authority may 
18designate a method or methods for persons subject to the tax to 
19reimburse themselves for the tax liability arising under the 
20ordinance (i) by separately stating the full amount of the tax 
21liability as an additional charge to passengers departing the 
22airports, (ii) by separately stating one-half of the tax 
23liability as an additional charge to both passengers departing 
24from and to passengers arriving at the airports, or (iii) by 
25some other method determined by the Authority.
26 All taxes, penalties, and interest collected under any 
 
 
10300HB4951sam002- 273 -LRB103 38094 HLH 74177 a


1ordinance adopted under this subsection, less any amounts 
2determined to be necessary for the payment of refunds and less 
3the taxes, penalties, and interest attributable to any 
4increase in the rate of tax authorized by Public Act 96-898, 
5shall be paid forthwith to the State Treasurer, ex officio, 
6for deposit into a trust fund held outside the State Treasury 
7and shall be administered by the State Treasurer as provided 
8in subsection (g) of this Section. All taxes, penalties, and 
9interest attributable to any increase in the rate of tax 
10authorized by Public Act 96-898 shall be paid by the State 
11Treasurer as follows: 25% for deposit into the Convention 
12Center Support Fund, to be used by the Village of Rosemont for 
13the repair, maintenance, and improvement of the Donald E. 
14Stephens Convention Center and for debt service on debt 
15instruments issued for those purposes by the village and 75% 
16to the Authority to be used for grants to an organization 
17meeting the qualifications set out in Section 5.6 of this Act, 
18provided the Metropolitan Pier and Exposition Authority has 
19entered into a marketing agreement with such an organization. 
20 (g) Amounts deposited from the proceeds of taxes imposed 
21by the Authority under subsections (b), (c), (d), (e), and (f) 
22of this Section and amounts deposited under Section 19 of the 
23Illinois Sports Facilities Authority Act shall be held in a 
24trust fund outside the State Treasury and, other than the 
25amounts transferred into the Tax Compliance and Administration 
26Fund under subsections (b), (c), (d), and (e), shall be 
 
 
10300HB4951sam002- 274 -LRB103 38094 HLH 74177 a


1administered by the Treasurer as follows: 
2  (1) An amount necessary for the payment of refunds 
3 with respect to those taxes shall be retained in the trust 
4 fund and used for those payments.
5  (2) On July 20 and on the 20th of each month 
6 thereafter, provided that the amount requested in the 
7 annual certificate of the Chairman of the Authority filed 
8 under Section 8.25f of the State Finance Act has been 
9 appropriated for payment to the Authority, 1/8 of the 
10 local tax transfer amount, together with any cumulative 
11 deficiencies in the amounts transferred into the McCormick 
12 Place Expansion Project Fund under this subparagraph (2) 
13 during the fiscal year for which the certificate has been 
14 filed, shall be transferred from the trust fund into the 
15 McCormick Place Expansion Project Fund in the State 
16 treasury until 100% of the local tax transfer amount has 
17 been so transferred. "Local tax transfer amount" shall 
18 mean the amount requested in the annual certificate, minus 
19 the reduction amount. "Reduction amount" shall mean $41.7 
20 million in fiscal year 2011, $36.7 million in fiscal year 
21 2012, $36.7 million in fiscal year 2013, $36.7 million in 
22 fiscal year 2014, and $31.7 million in each fiscal year 
23 thereafter until 2035, provided that the reduction amount 
24 shall be reduced by (i) the amount certified by the 
25 Authority to the State Comptroller and State Treasurer 
26 under Section 8.25 of the State Finance Act, as amended, 
 
 
10300HB4951sam002- 275 -LRB103 38094 HLH 74177 a


1 with respect to that fiscal year and (ii) in any fiscal 
2 year in which the amounts deposited in the trust fund 
3 under this Section exceed $343.3 million, exclusive of 
4 amounts set aside for refunds and for the reserve account, 
5 one dollar for each dollar of the deposits in the trust 
6 fund above $343.3 million with respect to that year, 
7 exclusive of amounts set aside for refunds and for the 
8 reserve account.
9  (3) On July 20, 2010, the Comptroller shall certify to 
10 the Governor, the Treasurer, and the Chairman of the 
11 Authority the 2010 deficiency amount, which means the 
12 cumulative amount of transfers that were due from the 
13 trust fund to the McCormick Place Expansion Project Fund 
14 in fiscal years 2008, 2009, and 2010 under Section 13(g) 
15 of this Act, as it existed prior to May 27, 2010 (the 
16 effective date of Public Act 96-898), but not made. On 
17 July 20, 2011 and on July 20 of each year through July 20, 
18 2014, the Treasurer shall calculate for the previous 
19 fiscal year the surplus revenues in the trust fund and pay 
20 that amount to the Authority. On July 20, 2015 and on July 
21 20 of each year thereafter to and including July 20, 2017, 
22 as long as bonds and notes issued under Section 13.2 or 
23 bonds and notes issued to refund those bonds and notes are 
24 outstanding, the Treasurer shall calculate for the 
25 previous fiscal year the surplus revenues in the trust 
26 fund and pay one-half of that amount to the State 
 
 
10300HB4951sam002- 276 -LRB103 38094 HLH 74177 a


1 Treasurer for deposit into the General Revenue Fund until 
2 the 2010 deficiency amount has been paid and shall pay the 
3 balance of the surplus revenues to the Authority. On July 
4 20, 2018 and on July 20 of each year thereafter, the 
5 Treasurer shall calculate for the previous fiscal year the 
6 surplus revenues in the trust fund and pay all of such 
7 surplus revenues to the State Treasurer for deposit into 
8 the General Revenue Fund until the 2010 deficiency amount 
9 has been paid. After the 2010 deficiency amount has been 
10 paid, the Treasurer shall pay the balance of the surplus 
11 revenues to the Authority. "Surplus revenues" means the 
12 amounts remaining in the trust fund on June 30 of the 
13 previous fiscal year (A) after the State Treasurer has set 
14 aside in the trust fund (i) amounts retained for refunds 
15 under subparagraph (1) and (ii) any amounts necessary to 
16 meet the reserve account amount and (B) after the State 
17 Treasurer has transferred from the trust fund to the 
18 General Revenue Fund 100% of any post-2010 deficiency 
19 amount. "Reserve account amount" means $15 million in 
20 fiscal year 2011 and $30 million in each fiscal year 
21 thereafter. The reserve account amount shall be set aside 
22 in the trust fund and used as a reserve to be transferred 
23 to the McCormick Place Expansion Project Fund in the event 
24 the proceeds of taxes imposed under this Section 13 are 
25 not sufficient to fund the transfer required in 
26 subparagraph (2). "Post-2010 deficiency amount" means any 
 
 
10300HB4951sam002- 277 -LRB103 38094 HLH 74177 a


1 deficiency in transfers from the trust fund to the 
2 McCormick Place Expansion Project Fund with respect to 
3 fiscal years 2011 and thereafter. It is the intention of 
4 this subparagraph (3) that no surplus revenues shall be 
5 paid to the Authority with respect to any year in which a 
6 post-2010 deficiency amount has not been satisfied by the 
7 Authority. 
8 Moneys received by the Authority as surplus revenues may 
9be used (i) for the purposes of paying debt service on the 
10bonds and notes issued by the Authority, including early 
11redemption of those bonds or notes, (ii) for the purposes of 
12repair, replacement, and improvement of the grounds, 
13buildings, and facilities of the Authority, and (iii) for the 
14corporate purposes of the Authority in fiscal years 2011 
15through 2015 in an amount not to exceed $20,000,000 annually 
16or $80,000,000 total, which amount shall be reduced $0.75 for 
17each dollar of the receipts of the Authority in that year from 
18any contract entered into with respect to naming rights at 
19McCormick Place under Section 5(m) of this Act. When bonds and 
20notes issued under Section 13.2, or bonds or notes issued to 
21refund those bonds and notes, are no longer outstanding, the 
22balance in the trust fund shall be paid to the Authority. 
23 (h) The ordinances imposing the taxes authorized by this 
24Section shall be repealed when bonds and notes issued under 
25Section 13.2 or bonds and notes issued to refund those bonds 
26and notes are no longer outstanding.
 
 
10300HB4951sam002- 278 -LRB103 38094 HLH 74177 a


1(Source: P.A. 100-23, Article 5, Section 5-35, eff. 7-6-17; 
2100-23, Article 35, Section 35-25, eff. 7-6-17; 100-587, eff. 
36-4-18; 100-863, eff. 8-14-18; 101-636, eff. 6-10-20.)

4 Section 65-20. The Illinois Sports Facilities Authority 
5Act is amended by changing Section 19 as follows:

6 (70 ILCS 3205/19) (from Ch. 85, par. 6019)
7 Sec. 19. Tax. The Authority may impose an occupation tax 
8upon all hotel operators persons engaged in the City of 
9Chicago in the business of renting, leasing or letting rooms 
10in a hotel, as defined in The Hotel Operators' Occupation Tax 
11Act, at a rate not to exceed 2% of the gross rental receipts 
12from engaging in business as a hotel operator the renting, 
13leasing or letting of hotel rooms located within the City of 
14Chicago, excluding, however, from gross rental receipts, the 
15proceeds of such renting, leasing or letting of hotel rooms to 
16permanent residents of a that hotel and proceeds from the tax 
17imposed under subsection (c) of Section 13 of the Metropolitan 
18Pier and Exposition Authority Act.
19 The tax imposed by the Authority pursuant to this Section 
20and all civil penalties that may be assessed as an incident 
21thereof shall be collected and enforced by the State 
22Department of Revenue. The certificate of registration which 
23is issued by the Department to a lessor under The Hotel 
24Operators' Occupation Tax Act shall permit such registrant to 
 
 
10300HB4951sam002- 279 -LRB103 38094 HLH 74177 a


1engage in a business which is taxable under any ordinance or 
2resolution enacted pursuant to this Section without 
3registering separately with the Department under such 
4ordinance or resolution or under this Section. The Department 
5shall have full power to administer and enforce this Section; 
6to collect all taxes and penalties due hereunder; to dispose 
7of taxes and penalties so collected in the manner provided in 
8this Section, and to determine all rights to credit memoranda, 
9arising on account of the erroneous payment of tax or penalty 
10hereunder. In the administration of, and compliance with, this 
11Section, the Department and persons who are subject to this 
12Section shall have the same rights, remedies, privileges, 
13immunities, powers and duties, and be subject to the same 
14conditions, restrictions, limitations, penalties and 
15definitions of terms, and employ the same modes of procedure, 
16as are prescribed in The Hotel Operators' Occupation Tax Act 
17(except where that Act is inconsistent herewith), as the same 
18is now or may hereafter be amended, as fully as if the 
19provisions contained in The Hotel Operators' Occupation Tax 
20Act were set forth herein.
21 Whenever the Department determines that a refund should be 
22made under this Section to a claimant instead of issuing a 
23credit memorandum, the Department shall notify the State 
24Comptroller, who shall cause the warrant to be drawn for the 
25amount specified, and to the person named, in such 
26notification from the Department. Such refund shall be paid by 
 
 
10300HB4951sam002- 280 -LRB103 38094 HLH 74177 a


1the State Treasurer out of the amounts held by the State 
2Treasurer as trustee for the Authority.
3 Persons subject to any tax imposed pursuant to authority 
4granted by this Section may reimburse themselves for their tax 
5liability for such tax by separately stating such tax as an 
6additional charge, which charge may be stated in combination, 
7in a single amount, with State tax imposed under The Hotel 
8Operators' Occupation Tax Act, the municipal tax imposed under 
9Section 8-3-13 of the Illinois Municipal Code, and the tax 
10imposed under Section 13 of the Metropolitan Pier and 
11Exposition Authority Act.
12 The Department shall forthwith pay over to the State 
13Treasurer, ex-officio, as trustee for the Authority, all taxes 
14and penalties collected hereunder for deposit in a trust fund 
15outside the State Treasury. On or before the 25th day of each 
16calendar month, the Department shall certify to the 
17Comptroller the amount to be paid to or on behalf of the 
18Authority from amounts collected hereunder by the Department, 
19and deposited into such trust fund during the second preceding 
20calendar month. The amount to be paid to or on behalf of the 
21Authority shall be the amount (not including credit memoranda) 
22collected hereunder during such second preceding calendar 
23month by the Department, less an amount equal to the amount of 
24refunds authorized during such second preceding calendar month 
25by the Department on behalf of the Authority, and less 4% of 
26such balance, which sum shall be retained by the State 
 
 
10300HB4951sam002- 281 -LRB103 38094 HLH 74177 a


1Treasurer to cover the costs incurred by the Department in 
2administering and enforcing the provisions of this Section, as 
3provided herein. Each such monthly certification by the 
4Department shall also certify to the Comptroller the amount to 
5be so retained by the State Treasurer for payment into the 
6General Revenue Fund of the State Treasury.
7 Each monthly certification by the Department shall 
8certify, of the amount paid to or on behalf of the Authority, 
9(i) the portion to be paid to the Authority, (ii) the portion 
10to be paid into the General Revenue Fund of the State Treasury 
11on behalf of the Authority as repayment of amounts advanced to 
12the Authority pursuant to appropriation from the Illinois 
13Sports Facilities Fund.
14 With respect to each State fiscal year, of the total 
15amount to be paid to or on behalf of the Authority, the 
16Department shall certify that payments shall first be made 
17directly to the Authority in an amount equal to any difference 
18between the annual amount certified by the Chairman of the 
19Authority pursuant to Section 8.25-4 of the State Finance Act 
20and the amount appropriated to the Authority from the Illinois 
21Sports Facilities Fund. Next, the Department shall certify 
22that payment shall be made into the General Revenue Fund of the 
23State Treasury in an amount equal to the difference between 
24(i) the lesser of (x) the amount appropriated from the 
25Illinois Sports Facilities Fund to the Authority and (y) the 
26annual amount certified by the Chairman of the Authority 
 
 
10300HB4951sam002- 282 -LRB103 38094 HLH 74177 a


1pursuant to Section 8.25-4 of the State Finance Act and (ii) 
2$10,000,000. The Department shall certify that all additional 
3amounts shall be paid to the Authority and used for its 
4corporate purposes.
5 Within 10 days after receipt, by the Comptroller, of the 
6Department's monthly certification of amounts to be paid to or 
7on behalf of the Authority and amounts to be paid into the 
8General Revenue Fund, the Comptroller shall cause the warrants 
9to be drawn for the respective amounts in accordance with the 
10directions contained in such certification.
11 Amounts collected by the Department and paid to the 
12Authority pursuant to this Section shall be used for the 
13corporate purposes of the Authority. On June 15, 1992 and on 
14each June 15 thereafter, the Authority shall repay to the 
15State Treasurer all amounts paid to it under this Section and 
16otherwise remaining available to the Authority after providing 
17for (i) payment of principal and interest on, and other 
18payments related to, its obligations issued or to be issued 
19under Section 13 of the Act, including any deposits required 
20to reserve funds created under any indenture or resolution 
21authorizing issuance of the obligations and payments to 
22providers of credit enhancement, (ii) payment of obligations 
23under the provisions of any management agreement with respect 
24to a facility or facilities owned by the Authority or of any 
25assistance agreement with respect to any facility for which 
26financial assistance is provided under this Act, and payment 
 
 
10300HB4951sam002- 283 -LRB103 38094 HLH 74177 a


1of other capital and operating expenses of the Authority, 
2including any deposits required to reserve funds created for 
3repair and replacement of capital assets and to meet the 
4obligations of the Authority under any management agreement or 
5assistance agreement. Amounts repaid by the Authority to the 
6State Treasurer hereunder shall be treated as repayment of 
7amounts deposited into the Illinois Sports Facilities Fund and 
8credited to the Subsidy Account and used for the corporate 
9purposes of the Authority. The State Treasurer shall deposit 
10$5,000,000 of the amount received into the General Revenue 
11Fund; thereafter, at the beginning of each fiscal year the 
12State Treasurer shall certify to the State Comptroller for all 
13prior fiscal years the cumulative amount of any deficiencies 
14in repayments to the City of Chicago of amounts in the Local 
15Government Distributive Fund that would otherwise have been 
16allocated to the City of Chicago under the State Revenue 
17Sharing Act but instead were paid into the General Revenue 
18Fund under Section 6 of the Hotel Operators' Occupation Tax 
19Act and that have not been reimbursed, and the Comptroller 
20shall, during the fiscal year at the beginning of which the 
21certification was made, cause warrants to be drawn from the 
22amount received for the repayment of that cumulative amount to 
23the City of Chicago until that cumulative amount has been 
24fully reimbursed; thereafter, the State Treasurer shall 
25deposit the balance of the amount received into the trust fund 
26established outside the State Treasury under subsection (g) of 
 
 
10300HB4951sam002- 284 -LRB103 38094 HLH 74177 a


1Section 13 of the Metropolitan Pier and Exposition Authority 
2Act.
3 Nothing in this Section shall be construed to authorize 
4the Authority to impose a tax upon the privilege of engaging in 
5any business which under the constitution of the United States 
6may not be made the subject of taxation by this State.
7 An ordinance or resolution imposing or discontinuing a tax 
8hereunder or effecting a change in the rate thereof shall be 
9effective on the first day of the second calendar month next 
10following the month in which the ordinance or resolution is 
11passed.
12 If the Authority levies a tax authorized by this Section 
13it shall transmit to the Department of Revenue not later than 5 
14days after the adoption of the ordinance or resolution a 
15certified copy of the ordinance or resolution imposing such 
16tax whereupon the Department of Revenue shall proceed to 
17administer and enforce this Section on behalf of the 
18Authority. Upon a change in rate of a tax levied hereunder, or 
19upon the discontinuance of the tax, the Authority shall not 
20later than 5 days after the effective date of the ordinance or 
21resolution discontinuing the tax or effecting a change in rate 
22transmit to the Department of Revenue a certified copy of the 
23ordinance or resolution effecting such change or 
24discontinuance.
25(Source: P.A. 91-935, eff. 6-1-01.)

 
 
10300HB4951sam002- 285 -LRB103 38094 HLH 74177 a


1
ARTICLE 70. 


2 Section 70-5. The Motor Fuel Tax Law is amended by 
3changing Section 2a as follows:

4 (35 ILCS 505/2a) (from Ch. 120, par. 418a)
5 Sec. 2a. Except as hereinafter provided, on and after 
6January 1, 1990 and before January 1, 2030 January 1, 2025, a 
7tax of three-tenths of a cent per gallon is imposed upon the 
8privilege of being a receiver in this State of fuel for sale or 
9use. Beginning January 1, 2021, this tax is not imposed on 
10sales of aviation fuel for so long as the revenue use 
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
12binding on the State. 
13 The tax shall be paid by the receiver in this State who 
14first sells or uses fuel. In the case of a sale, the tax shall 
15be stated as a separate item on the invoice.
16 For the purpose of the tax imposed by this Section, being a 
17receiver of "motor fuel" as defined by Section 1.1 of this Act, 
18and aviation fuels, home heating oil and kerosene, but 
19excluding liquified petroleum gases, is subject to tax without 
20regard to whether the fuel is intended to be used for operation 
21of motor vehicles on the public highways and waters. However, 
22no such tax shall be imposed upon the importation or receipt of 
23aviation fuels and kerosene at airports with over 300,000 
24operations per year, for years prior to 1991, and over 170,000 
 
 
10300HB4951sam002- 286 -LRB103 38094 HLH 74177 a


1operations per year beginning in 1991, located in a city of 
2more than 1,000,000 inhabitants for sale to or use by holders 
3of certificates of public convenience and necessity or foreign 
4air carrier permits, issued by the United States Department of 
5Transportation, and their air carrier affiliates, or upon the 
6importation or receipt of aviation fuels and kerosene at 
7facilities owned or leased by those certificate or permit 
8holders and used in their activities at an airport described 
9above. In addition, no such tax shall be imposed upon the 
10importation or receipt of diesel fuel or liquefied natural gas 
11sold to or used by a rail carrier registered pursuant to 
12Section 18c-7201 of the Illinois Vehicle Code or otherwise 
13recognized by the Illinois Commerce Commission as a rail 
14carrier, to the extent used directly in railroad operations. 
15In addition, no such tax shall be imposed when the sale is made 
16with delivery to a purchaser outside this State or when the 
17sale is made to a person holding a valid license as a receiver. 
18In addition, no tax shall be imposed upon diesel fuel or 
19liquefied natural gas consumed or used in the operation of 
20ships, barges, or vessels, that are used primarily in or for 
21the transportation of property in interstate commerce for hire 
22on rivers bordering on this State, if the diesel fuel or 
23liquefied natural gas is delivered by a licensed receiver to 
24the purchaser's barge, ship, or vessel while it is afloat upon 
25that bordering river. A specific notation thereof shall be 
26made on the invoices or sales slips covering each sale.
 
 
10300HB4951sam002- 287 -LRB103 38094 HLH 74177 a


1(Source: P.A. 100-9, eff. 7-1-17; 101-604, eff. 12-13-19.)

2 Section 70-10. The Environmental Impact Fee Law is amended 
3by changing Section 390 as follows:

4 (415 ILCS 125/390)
5 (Section scheduled to be repealed on January 1, 2025)
6 Sec. 390. Repeal. This Article is repealed on January 1, 
72030 January 1, 2025.
8(Source: P.A. 96-161, eff. 8-10-09.)

9
ARTICLE 75. 


10 Section 75-5. The Use Tax Act is amended by changing 
11Sections 2, 3, 3-5, 3-10, 3-55, and 9 and by adding Section 
121.05 as follows:

13 (35 ILCS 105/1.05 new)
14 Sec. 1.05. Legislative intent; leases. It is the intent of 
15the General Assembly in enacting this amendatory Act of the 
16103rd General Assembly to apply the tax imposed under this 
17Act, except as otherwise provided in this Act, to the 
18privilege of using in this State tangible personal property, 
19other than motor vehicles, watercraft, aircraft, and 
20semitrailers, as defined in Section 1-187 of the Illinois 
21Vehicle Code, that are required to be registered with an 
 
 
10300HB4951sam002- 288 -LRB103 38094 HLH 74177 a


1agency of this State, leased at retail from a retailer, for 
2leases in effect, entered into, or renewed on or after January 
31, 2025.

4 (35 ILCS 105/2) (from Ch. 120, par. 439.2)
5 Sec. 2. Definitions.
6 "Use" means the exercise by any person of any right or 
7power over tangible personal property incident to the 
8ownership of that property, or, on and after January 1, 2025, 
9incident to the possession or control of, the right to possess 
10or control, or a license to use that property through a lease, 
11except that it does not include the sale of such property in 
12any form as tangible personal property in the regular course 
13of business to the extent that such property is not first 
14subjected to a use for which it was purchased, and does not 
15include the use of such property by its owner for 
16demonstration purposes: Provided that the property purchased 
17is deemed to be purchased for the purpose of resale, despite 
18first being used, to the extent to which it is resold as an 
19ingredient of an intentionally produced product or by-product 
20of manufacturing. "Use" does not mean the demonstration use or 
21interim use of tangible personal property by a retailer before 
22he sells that tangible personal property. On and after January 
231, 2025, the lease of tangible personal property to a lessee by 
24a retailer who is subject to tax on lease receipts under this 
25amendatory Act of the 103rd General Assembly does not qualify 
 
 
10300HB4951sam002- 289 -LRB103 38094 HLH 74177 a


1as demonstration use or interim use of that property. For 
2watercraft or aircraft, if the period of demonstration use or 
3interim use by the retailer exceeds 18 months, the retailer 
4shall pay on the retailers' original cost price the tax 
5imposed by this Act, and no credit for that tax is permitted if 
6the watercraft or aircraft is subsequently sold by the 
7retailer. "Use" does not mean the physical incorporation of 
8tangible personal property, to the extent not first subjected 
9to a use for which it was purchased, as an ingredient or 
10constituent, into other tangible personal property (a) which 
11is sold in the regular course of business or (b) which the 
12person incorporating such ingredient or constituent therein 
13has undertaken at the time of such purchase to cause to be 
14transported in interstate commerce to destinations outside the 
15State of Illinois: Provided that the property purchased is 
16deemed to be purchased for the purpose of resale, despite 
17first being used, to the extent to which it is resold as an 
18ingredient of an intentionally produced product or by-product 
19of manufacturing.
20 "Lease" means a transfer of the possession or control of, 
21the right to possess or control, or a license to use, but not 
22title to, tangible personal property for a fixed or 
23indeterminate term for consideration, regardless of the name 
24by which the transaction is called. "Lease" does not include a 
25lease entered into merely as a security agreement that does 
26not involve a transfer of possession or control from the 
 
 
10300HB4951sam002- 290 -LRB103 38094 HLH 74177 a


1lessor to the lessee. 
2 On and after January 1, 2025, the term "sale", when used in 
3this Act, includes a lease. 
4 "Watercraft" means a Class 2, Class 3, or Class 4 
5watercraft as defined in Section 3-2 of the Boat Registration 
6and Safety Act, a personal watercraft, or any boat equipped 
7with an inboard motor.
8 "Purchase at retail" means the acquisition of the 
9ownership of, the or title to, the possession or control of, 
10the right to possess or control, or a license to use, tangible 
11personal property through a sale at retail.
12 "Purchaser" means anyone who, through a sale at retail, 
13acquires the ownership of, the title to, the possession or 
14control of, the right to possess or control, or a license to 
15use, tangible personal property for a valuable consideration.
16 "Sale at retail" means any transfer of the ownership of or 
17title to tangible personal property to a purchaser, for the 
18purpose of use, and not for the purpose of resale in any form 
19as tangible personal property to the extent not first 
20subjected to a use for which it was purchased, for a valuable 
21consideration: Provided that the property purchased is deemed 
22to be purchased for the purpose of resale, despite first being 
23used, to the extent to which it is resold as an ingredient of 
24an intentionally produced product or by-product of 
25manufacturing. For this purpose, slag produced as an incident 
26to manufacturing pig iron or steel and sold is considered to be 
 
 
10300HB4951sam002- 291 -LRB103 38094 HLH 74177 a


1an intentionally produced by-product of manufacturing. "Sale 
2at retail" includes any such transfer made for resale unless 
3made in compliance with Section 2c of the Retailers' 
4Occupation Tax Act, as incorporated by reference into Section 
512 of this Act. Transactions whereby the possession of the 
6property is transferred but the seller retains the title as 
7security for payment of the selling price are sales.
8 "Sale at retail" shall also be construed to include any 
9Illinois florist's sales transaction in which the purchase 
10order is received in Illinois by a florist and the sale is for 
11use or consumption, but the Illinois florist has a florist in 
12another state deliver the property to the purchaser or the 
13purchaser's donee in such other state.
14 Nonreusable tangible personal property that is used by 
15persons engaged in the business of operating a restaurant, 
16cafeteria, or drive-in is a sale for resale when it is 
17transferred to customers in the ordinary course of business as 
18part of the sale of food or beverages and is used to deliver, 
19package, or consume food or beverages, regardless of where 
20consumption of the food or beverages occurs. Examples of those 
21items include, but are not limited to nonreusable, paper and 
22plastic cups, plates, baskets, boxes, sleeves, buckets or 
23other containers, utensils, straws, placemats, napkins, doggie 
24bags, and wrapping or packaging materials that are transferred 
25to customers as part of the sale of food or beverages in the 
26ordinary course of business.
 
 
10300HB4951sam002- 292 -LRB103 38094 HLH 74177 a


1 The purchase, employment and transfer of such tangible 
2personal property as newsprint and ink for the primary purpose 
3of conveying news (with or without other information) is not a 
4purchase, use or sale of tangible personal property.
5 "Selling price" means the consideration for a sale valued 
6in money whether received in money or otherwise, including 
7cash, credits, property other than as hereinafter provided, 
8and services, but, prior to January 1, 2020 and beginning 
9again on January 1, 2022, not including the value of or credit 
10given for traded-in tangible personal property where the item 
11that is traded-in is of like kind and character as that which 
12is being sold; beginning January 1, 2020 and until January 1, 
132022, "selling price" includes the portion of the value of or 
14credit given for traded-in motor vehicles of the First 
15Division as defined in Section 1-146 of the Illinois Vehicle 
16Code of like kind and character as that which is being sold 
17that exceeds $10,000. "Selling price" shall be determined 
18without any deduction on account of the cost of the property 
19sold, the cost of materials used, labor or service cost or any 
20other expense whatsoever, but does not include interest or 
21finance charges which appear as separate items on the bill of 
22sale or sales contract nor charges that are added to prices by 
23sellers on account of the seller's tax liability under the 
24Retailers' Occupation Tax Act, or on account of the seller's 
25duty to collect, from the purchaser, the tax that is imposed by 
26this Act, or, except as otherwise provided with respect to any 
 
 
10300HB4951sam002- 293 -LRB103 38094 HLH 74177 a


1cigarette tax imposed by a home rule unit, on account of the 
2seller's tax liability under any local occupation tax 
3administered by the Department, or, except as otherwise 
4provided with respect to any cigarette tax imposed by a home 
5rule unit on account of the seller's duty to collect, from the 
6purchasers, the tax that is imposed under any local use tax 
7administered by the Department. Effective December 1, 1985, 
8"selling price" shall include charges that are added to prices 
9by sellers on account of the seller's tax liability under the 
10Cigarette Tax Act, on account of the seller's duty to collect, 
11from the purchaser, the tax imposed under the Cigarette Use 
12Tax Act, and on account of the seller's duty to collect, from 
13the purchaser, any cigarette tax imposed by a home rule unit.
14 The provisions of this paragraph, which provides only for 
15an alternative meaning of "selling price" with respect to the 
16sale of certain motor vehicles incident to the contemporaneous 
17lease of those motor vehicles, continue in effect and are not 
18changed by the tax on leases implemented by this amendatory 
19Act of the 103rd General Assembly. Notwithstanding any law to 
20the contrary, for any motor vehicle, as defined in Section 
211-146 of the Vehicle Code, that is sold on or after January 1, 
222015 for the purpose of leasing the vehicle for a defined 
23period that is longer than one year and (1) is a motor vehicle 
24of the second division that: (A) is a self-contained motor 
25vehicle designed or permanently converted to provide living 
26quarters for recreational, camping, or travel use, with direct 
 
 
10300HB4951sam002- 294 -LRB103 38094 HLH 74177 a


1walk through access to the living quarters from the driver's 
2seat; (B) is of the van configuration designed for the 
3transportation of not less than 7 nor more than 16 passengers; 
4or (C) has a gross vehicle weight rating of 8,000 pounds or 
5less or (2) is a motor vehicle of the first division, "selling 
6price" or "amount of sale" means the consideration received by 
7the lessor pursuant to the lease contract, including amounts 
8due at lease signing and all monthly or other regular payments 
9charged over the term of the lease. Also included in the 
10selling price is any amount received by the lessor from the 
11lessee for the leased vehicle that is not calculated at the 
12time the lease is executed, including, but not limited to, 
13excess mileage charges and charges for excess wear and tear. 
14For sales that occur in Illinois, with respect to any amount 
15received by the lessor from the lessee for the leased vehicle 
16that is not calculated at the time the lease is executed, the 
17lessor who purchased the motor vehicle does not incur the tax 
18imposed by the Use Tax Act on those amounts, and the retailer 
19who makes the retail sale of the motor vehicle to the lessor is 
20not required to collect the tax imposed by this Act or to pay 
21the tax imposed by the Retailers' Occupation Tax Act on those 
22amounts. However, the lessor who purchased the motor vehicle 
23assumes the liability for reporting and paying the tax on 
24those amounts directly to the Department in the same form 
25(Illinois Retailers' Occupation Tax, and local retailers' 
26occupation taxes, if applicable) in which the retailer would 
 
 
10300HB4951sam002- 295 -LRB103 38094 HLH 74177 a


1have reported and paid such tax if the retailer had accounted 
2for the tax to the Department. For amounts received by the 
3lessor from the lessee that are not calculated at the time the 
4lease is executed, the lessor must file the return and pay the 
5tax to the Department by the due date otherwise required by 
6this Act for returns other than transaction returns. If the 
7retailer is entitled under this Act to a discount for 
8collecting and remitting the tax imposed under this Act to the 
9Department with respect to the sale of the motor vehicle to the 
10lessor, then the right to the discount provided in this Act 
11shall be transferred to the lessor with respect to the tax paid 
12by the lessor for any amount received by the lessor from the 
13lessee for the leased vehicle that is not calculated at the 
14time the lease is executed; provided that the discount is only 
15allowed if the return is timely filed and for amounts timely 
16paid. The "selling price" of a motor vehicle that is sold on or 
17after January 1, 2015 for the purpose of leasing for a defined 
18period of longer than one year shall not be reduced by the 
19value of or credit given for traded-in tangible personal 
20property owned by the lessor, nor shall it be reduced by the 
21value of or credit given for traded-in tangible personal 
22property owned by the lessee, regardless of whether the 
23trade-in value thereof is assigned by the lessee to the 
24lessor. In the case of a motor vehicle that is sold for the 
25purpose of leasing for a defined period of longer than one 
26year, the sale occurs at the time of the delivery of the 
 
 
10300HB4951sam002- 296 -LRB103 38094 HLH 74177 a


1vehicle, regardless of the due date of any lease payments. A 
2lessor who incurs a Retailers' Occupation Tax liability on the 
3sale of a motor vehicle coming off lease may not take a credit 
4against that liability for the Use Tax the lessor paid upon the 
5purchase of the motor vehicle (or for any tax the lessor paid 
6with respect to any amount received by the lessor from the 
7lessee for the leased vehicle that was not calculated at the 
8time the lease was executed) if the selling price of the motor 
9vehicle at the time of purchase was calculated using the 
10definition of "selling price" as defined in this paragraph. 
11Notwithstanding any other provision of this Act to the 
12contrary, lessors shall file all returns and make all payments 
13required under this paragraph to the Department by electronic 
14means in the manner and form as required by the Department. 
15This paragraph does not apply to leases of motor vehicles for 
16which, at the time the lease is entered into, the term of the 
17lease is not a defined period, including leases with a defined 
18initial period with the option to continue the lease on a 
19month-to-month or other basis beyond the initial defined 
20period. 
21 The phrase "like kind and character" shall be liberally 
22construed (including but not limited to any form of motor 
23vehicle for any form of motor vehicle, or any kind of farm or 
24agricultural implement for any other kind of farm or 
25agricultural implement), while not including a kind of item 
26which, if sold at retail by that retailer, would be exempt from 
 
 
10300HB4951sam002- 297 -LRB103 38094 HLH 74177 a


1retailers' occupation tax and use tax as an isolated or 
2occasional sale.
3 "Department" means the Department of Revenue.
4 "Person" means any natural individual, firm, partnership, 
5association, joint stock company, joint adventure, public or 
6private corporation, limited liability company, or a receiver, 
7executor, trustee, guardian or other representative appointed 
8by order of any court.
9 "Retailer" means and includes every person engaged in the 
10business of making sales, including, on and after January 1, 
112025, leases, at retail as defined in this Section. With 
12respect to leases, a "retailer" also means a "lessor", except 
13as otherwise provided in this Act. 
14 A person who holds himself or herself out as being engaged 
15(or who habitually engages) in selling tangible personal 
16property at retail is a retailer hereunder with respect to 
17such sales (and not primarily in a service occupation) 
18notwithstanding the fact that such person designs and produces 
19such tangible personal property on special order for the 
20purchaser and in such a way as to render the property of value 
21only to such purchaser, if such tangible personal property so 
22produced on special order serves substantially the same 
23function as stock or standard items of tangible personal 
24property that are sold at retail.
25 A person whose activities are organized and conducted 
26primarily as a not-for-profit service enterprise, and who 
 
 
10300HB4951sam002- 298 -LRB103 38094 HLH 74177 a


1engages in selling tangible personal property at retail 
2(whether to the public or merely to members and their guests) 
3is a retailer with respect to such transactions, excepting 
4only a person organized and operated exclusively for 
5charitable, religious or educational purposes either (1), to 
6the extent of sales by such person to its members, students, 
7patients or inmates of tangible personal property to be used 
8primarily for the purposes of such person, or (2), to the 
9extent of sales by such person of tangible personal property 
10which is not sold or offered for sale by persons organized for 
11profit. The selling of school books and school supplies by 
12schools at retail to students is not "primarily for the 
13purposes of" the school which does such selling. This 
14paragraph does not apply to nor subject to taxation occasional 
15dinners, social or similar activities of a person organized 
16and operated exclusively for charitable, religious or 
17educational purposes, whether or not such activities are open 
18to the public.
19 A person who is the recipient of a grant or contract under 
20Title VII of the Older Americans Act of 1965 (P.L. 92-258) and 
21serves meals to participants in the federal Nutrition Program 
22for the Elderly in return for contributions established in 
23amount by the individual participant pursuant to a schedule of 
24suggested fees as provided for in the federal Act is not a 
25retailer under this Act with respect to such transactions.
26 Persons who engage in the business of transferring 
 
 
10300HB4951sam002- 299 -LRB103 38094 HLH 74177 a


1tangible personal property upon the redemption of trading 
2stamps are retailers hereunder when engaged in such business.
3 The isolated or occasional sale of tangible personal 
4property at retail by a person who does not hold himself out as 
5being engaged (or who does not habitually engage) in selling 
6such tangible personal property at retail or a sale through a 
7bulk vending machine does not make such person a retailer 
8hereunder. However, any person who is engaged in a business 
9which is not subject to the tax imposed by the Retailers' 
10Occupation Tax Act because of involving the sale of or a 
11contract to sell real estate or a construction contract to 
12improve real estate, but who, in the course of conducting such 
13business, transfers tangible personal property to users or 
14consumers in the finished form in which it was purchased, and 
15which does not become real estate, under any provision of a 
16construction contract or real estate sale or real estate sales 
17agreement entered into with some other person arising out of 
18or because of such nontaxable business, is a retailer to the 
19extent of the value of the tangible personal property so 
20transferred. If, in such transaction, a separate charge is 
21made for the tangible personal property so transferred, the 
22value of such property, for the purposes of this Act, is the 
23amount so separately charged, but not less than the cost of 
24such property to the transferor; if no separate charge is 
25made, the value of such property, for the purposes of this Act, 
26is the cost to the transferor of such tangible personal 
 
 
10300HB4951sam002- 300 -LRB103 38094 HLH 74177 a


1property.
2 "Retailer maintaining a place of business in this State", 
3or any like term, means and includes any of the following 
4retailers:
5  (1) A retailer having or maintaining within this 
6 State, directly or by a subsidiary, an office, 
7 distribution house, sales house, warehouse or other place 
8 of business, or any agent or other representative 
9 operating within this State under the authority of the 
10 retailer or its subsidiary, irrespective of whether such 
11 place of business or agent or other representative is 
12 located here permanently or temporarily, or whether such 
13 retailer or subsidiary is licensed to do business in this 
14 State. However, the ownership of property that is located 
15 at the premises of a printer with which the retailer has 
16 contracted for printing and that consists of the final 
17 printed product, property that becomes a part of the final 
18 printed product, or copy from which the printed product is 
19 produced shall not result in the retailer being deemed to 
20 have or maintain an office, distribution house, sales 
21 house, warehouse, or other place of business within this 
22 State.
23  (1.1) A retailer having a contract with a person 
24 located in this State under which the person, for a 
25 commission or other consideration based upon the sale of 
26 tangible personal property by the retailer, directly or 
 
 
10300HB4951sam002- 301 -LRB103 38094 HLH 74177 a


1 indirectly refers potential customers to the retailer by 
2 providing to the potential customers a promotional code or 
3 other mechanism that allows the retailer to track 
4 purchases referred by such persons. Examples of mechanisms 
5 that allow the retailer to track purchases referred by 
6 such persons include but are not limited to the use of a 
7 link on the person's Internet website, promotional codes 
8 distributed through the person's hand-delivered or mailed 
9 material, and promotional codes distributed by the person 
10 through radio or other broadcast media. The provisions of 
11 this paragraph (1.1) shall apply only if the cumulative 
12 gross receipts from sales of tangible personal property by 
13 the retailer to customers who are referred to the retailer 
14 by all persons in this State under such contracts exceed 
15 $10,000 during the preceding 4 quarterly periods ending on 
16 the last day of March, June, September, and December. A 
17 retailer meeting the requirements of this paragraph (1.1) 
18 shall be presumed to be maintaining a place of business in 
19 this State but may rebut this presumption by submitting 
20 proof that the referrals or other activities pursued 
21 within this State by such persons were not sufficient to 
22 meet the nexus standards of the United States Constitution 
23 during the preceding 4 quarterly periods.
24  (1.2) Beginning July 1, 2011, a retailer having a 
25 contract with a person located in this State under which:
26   (A) the retailer sells the same or substantially 
 
 
10300HB4951sam002- 302 -LRB103 38094 HLH 74177 a


1 similar line of products as the person located in this 
2 State and does so using an identical or substantially 
3 similar name, trade name, or trademark as the person 
4 located in this State; and
5   (B) the retailer provides a commission or other 
6 consideration to the person located in this State 
7 based upon the sale of tangible personal property by 
8 the retailer.
9  The provisions of this paragraph (1.2) shall apply 
10 only if the cumulative gross receipts from sales of 
11 tangible personal property by the retailer to customers in 
12 this State under all such contracts exceed $10,000 during 
13 the preceding 4 quarterly periods ending on the last day 
14 of March, June, September, and December.
15  (2) (Blank).
16  (3) (Blank).
17  (4) (Blank).
18  (5) (Blank).
19  (6) (Blank).
20  (7) (Blank).
21  (8) (Blank).
22  (9) Beginning October 1, 2018, a retailer making sales 
23 of tangible personal property to purchasers in Illinois 
24 from outside of Illinois if: 
25   (A) the cumulative gross receipts from sales of 
26 tangible personal property to purchasers in Illinois 
 
 
10300HB4951sam002- 303 -LRB103 38094 HLH 74177 a


1 are $100,000 or more; or 
2   (B) the retailer enters into 200 or more separate 
3 transactions for the sale of tangible personal 
4 property to purchasers in Illinois. 
5  The retailer shall determine on a quarterly basis, 
6 ending on the last day of March, June, September, and 
7 December, whether he or she meets the criteria of either 
8 subparagraph (A) or (B) of this paragraph (9) for the 
9 preceding 12-month period. If the retailer meets the 
10 threshold of either subparagraph (A) or (B) for a 12-month 
11 period, he or she is considered a retailer maintaining a 
12 place of business in this State and is required to collect 
13 and remit the tax imposed under this Act and file returns 
14 for one year. At the end of that one-year period, the 
15 retailer shall determine whether he or she met the 
16 threshold of either subparagraph (A) or (B) during the 
17 preceding 12-month period. If the retailer met the 
18 criteria in either subparagraph (A) or (B) for the 
19 preceding 12-month period, he or she is considered a 
20 retailer maintaining a place of business in this State and 
21 is required to collect and remit the tax imposed under 
22 this Act and file returns for the subsequent year. If at 
23 the end of a one-year period a retailer that was required 
24 to collect and remit the tax imposed under this Act 
25 determines that he or she did not meet the threshold in 
26 either subparagraph (A) or (B) during the preceding 
 
 
10300HB4951sam002- 304 -LRB103 38094 HLH 74177 a


1 12-month period, the retailer shall subsequently determine 
2 on a quarterly basis, ending on the last day of March, 
3 June, September, and December, whether he or she meets the 
4 threshold of either subparagraph (A) or (B) for the 
5 preceding 12-month period. 
6  Beginning January 1, 2020, neither the gross receipts 
7 from nor the number of separate transactions for sales of 
8 tangible personal property to purchasers in Illinois that 
9 a retailer makes through a marketplace facilitator and for 
10 which the retailer has received a certification from the 
11 marketplace facilitator pursuant to Section 2d of this Act 
12 shall be included for purposes of determining whether he 
13 or she has met the thresholds of this paragraph (9).
14  (10) Beginning January 1, 2020, a marketplace 
15 facilitator that meets a threshold set forth in subsection 
16 (b) of Section 2d of this Act.
17 "Bulk vending machine" means a vending machine, containing 
18unsorted confections, nuts, toys, or other items designed 
19primarily to be used or played with by children which, when a 
20coin or coins of a denomination not larger than $0.50 are 
21inserted, are dispensed in equal portions, at random and 
22without selection by the customer.
23(Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 1-1-20; 
24101-604, eff. 1-1-20; 102-353, eff. 1-1-22.)

25 (35 ILCS 105/3) (from Ch. 120, par. 439.3)
 
 
10300HB4951sam002- 305 -LRB103 38094 HLH 74177 a


1 Sec. 3. Tax imposed. A tax is imposed upon the privilege of 
2using in this State tangible personal property purchased, 
3which, on and after January 1, 2025, includes leased, at 
4retail from a retailer, including computer software, and 
5including photographs, negatives, and positives that are the 
6product of photoprocessing, but not including products of 
7photoprocessing produced for use in motion pictures for 
8commercial exhibition. Beginning January 1, 2001, prepaid 
9telephone calling arrangements shall be considered tangible 
10personal property subject to the tax imposed under this Act 
11regardless of the form in which those arrangements may be 
12embodied, transmitted, or fixed by any method now known or 
13hereafter developed. Purchases of (1) electricity delivered to 
14customers by wire; (2) natural or artificial gas that is 
15delivered to customers through pipes, pipelines, or mains; and 
16(3) water that is delivered to customers through pipes, 
17pipelines, or mains are not subject to tax under this Act. The 
18provisions of this amendatory Act of the 98th General Assembly 
19are declaratory of existing law as to the meaning and scope of 
20this Act. 
21 The imposition of the tax under this Act on the privilege 
22of using tangible personal property leased at retail applies 
23to leases of tangible personal property in effect, entered 
24into, or renewed on or after January 1, 2025. In the case of 
25leases, except as otherwise provided in this Act, the lessor, 
26in collecting the tax, may collect for each tax return period, 
 
 
10300HB4951sam002- 306 -LRB103 38094 HLH 74177 a


1only the tax applicable to that part of the selling price 
2actually received during such tax return period.
3 The inclusion of leases in the tax imposed under this Act 
4by this amendatory Act of the 103rd General Assembly does not, 
5however, extend to motor vehicles, watercraft, aircraft, and 
6semitrailers, as defined in Section 1-187 of the Illinois 
7Vehicle Code, that are required to be registered with an 
8agency of this State. The taxation of these items shall 
9continue in effect as prior to the effective date of the 
10changes made to this Section by this amendatory Act of the 
11103rd General Assembly (i.e. dealers owe retailers' occupation 
12tax, lessors owe use tax, and lessees are not subject to 
13retailers' occupation or use tax). 
14(Source: P.A. 98-583, eff. 1-1-14.)

15 (35 ILCS 105/3-5)
16 Sec. 3-5. Exemptions. Use, which, on and after January 1, 
172025, includes use by a lessee, of the following tangible 
18personal property is exempt from the tax imposed by this Act:
19 (1) Personal property purchased from a corporation, 
20society, association, foundation, institution, or 
21organization, other than a limited liability company, that is 
22organized and operated as a not-for-profit service enterprise 
23for the benefit of persons 65 years of age or older if the 
24personal property was not purchased by the enterprise for the 
25purpose of resale by the enterprise.
 
 
10300HB4951sam002- 307 -LRB103 38094 HLH 74177 a


1 (2) Personal property purchased by a not-for-profit 
2Illinois county fair association for use in conducting, 
3operating, or promoting the county fair.
4 (3) Personal property purchased by a not-for-profit arts 
5or cultural organization that establishes, by proof required 
6by the Department by rule, that it has received an exemption 
7under Section 501(c)(3) of the Internal Revenue Code and that 
8is organized and operated primarily for the presentation or 
9support of arts or cultural programming, activities, or 
10services. These organizations include, but are not limited to, 
11music and dramatic arts organizations such as symphony 
12orchestras and theatrical groups, arts and cultural service 
13organizations, local arts councils, visual arts organizations, 
14and media arts organizations. On and after July 1, 2001 (the 
15effective date of Public Act 92-35), however, an entity 
16otherwise eligible for this exemption shall not make tax-free 
17purchases unless it has an active identification number issued 
18by the Department.
19 (4) Except as otherwise provided in this Act, personal 
20property purchased by a governmental body, by a corporation, 
21society, association, foundation, or institution organized and 
22operated exclusively for charitable, religious, or educational 
23purposes, or by a not-for-profit corporation, society, 
24association, foundation, institution, or organization that has 
25no compensated officers or employees and that is organized and 
26operated primarily for the recreation of persons 55 years of 
 
 
10300HB4951sam002- 308 -LRB103 38094 HLH 74177 a


1age or older. A limited liability company may qualify for the 
2exemption under this paragraph only if the limited liability 
3company is organized and operated exclusively for educational 
4purposes. On and after July 1, 1987, however, no entity 
5otherwise eligible for this exemption shall make tax-free 
6purchases unless it has an active exemption identification 
7number issued by the Department.
8 (5) Until July 1, 2003, a passenger car that is a 
9replacement vehicle to the extent that the purchase price of 
10the car is subject to the Replacement Vehicle Tax.
11 (6) Until July 1, 2003 and beginning again on September 1, 
122004 through August 30, 2014, graphic arts machinery and 
13equipment, including repair and replacement parts, both new 
14and used, and including that manufactured on special order, 
15certified by the purchaser to be used primarily for graphic 
16arts production, and including machinery and equipment 
17purchased for lease. Equipment includes chemicals or chemicals 
18acting as catalysts but only if the chemicals or chemicals 
19acting as catalysts effect a direct and immediate change upon 
20a graphic arts product. Beginning on July 1, 2017, graphic 
21arts machinery and equipment is included in the manufacturing 
22and assembling machinery and equipment exemption under 
23paragraph (18). 
24 (7) Farm chemicals.
25 (8) Legal tender, currency, medallions, or gold or silver 
26coinage issued by the State of Illinois, the government of the 
 
 
10300HB4951sam002- 309 -LRB103 38094 HLH 74177 a


1United States of America, or the government of any foreign 
2country, and bullion.
3 (9) Personal property purchased from a teacher-sponsored 
4student organization affiliated with an elementary or 
5secondary school located in Illinois.
6 (10) A motor vehicle that is used for automobile renting, 
7as defined in the Automobile Renting Occupation and Use Tax 
8Act.
9 (11) Farm machinery and equipment, both new and used, 
10including that manufactured on special order, certified by the 
11purchaser to be used primarily for production agriculture or 
12State or federal agricultural programs, including individual 
13replacement parts for the machinery and equipment, including 
14machinery and equipment purchased for lease, and including 
15implements of husbandry defined in Section 1-130 of the 
16Illinois Vehicle Code, farm machinery and agricultural 
17chemical and fertilizer spreaders, and nurse wagons required 
18to be registered under Section 3-809 of the Illinois Vehicle 
19Code, but excluding other motor vehicles required to be 
20registered under the Illinois Vehicle Code. Horticultural 
21polyhouses or hoop houses used for propagating, growing, or 
22overwintering plants shall be considered farm machinery and 
23equipment under this item (11). Agricultural chemical tender 
24tanks and dry boxes shall include units sold separately from a 
25motor vehicle required to be licensed and units sold mounted 
26on a motor vehicle required to be licensed if the selling price 
 
 
10300HB4951sam002- 310 -LRB103 38094 HLH 74177 a


1of the tender is separately stated.
2 Farm machinery and equipment shall include precision 
3farming equipment that is installed or purchased to be 
4installed on farm machinery and equipment, including, but not 
5limited to, tractors, harvesters, sprayers, planters, seeders, 
6or spreaders. Precision farming equipment includes, but is not 
7limited to, soil testing sensors, computers, monitors, 
8software, global positioning and mapping systems, and other 
9such equipment.
10 Farm machinery and equipment also includes computers, 
11sensors, software, and related equipment used primarily in the 
12computer-assisted operation of production agriculture 
13facilities, equipment, and activities such as, but not limited 
14to, the collection, monitoring, and correlation of animal and 
15crop data for the purpose of formulating animal diets and 
16agricultural chemicals. 
17 Beginning on January 1, 2024, farm machinery and equipment 
18also includes electrical power generation equipment used 
19primarily for production agriculture. 
20 This item (11) is exempt from the provisions of Section 
213-90.
22 (12) Until June 30, 2013, fuel and petroleum products sold 
23to or used by an air common carrier, certified by the carrier 
24to be used for consumption, shipment, or storage in the 
25conduct of its business as an air common carrier, for a flight 
26destined for or returning from a location or locations outside 
 
 
10300HB4951sam002- 311 -LRB103 38094 HLH 74177 a


1the United States without regard to previous or subsequent 
2domestic stopovers.
3 Beginning July 1, 2013, fuel and petroleum products sold 
4to or used by an air carrier, certified by the carrier to be 
5used for consumption, shipment, or storage in the conduct of 
6its business as an air common carrier, for a flight that (i) is 
7engaged in foreign trade or is engaged in trade between the 
8United States and any of its possessions and (ii) transports 
9at least one individual or package for hire from the city of 
10origination to the city of final destination on the same 
11aircraft, without regard to a change in the flight number of 
12that aircraft. 
13 (13) Proceeds of mandatory service charges separately 
14stated on customers' bills for the purchase and consumption of 
15food and beverages purchased at retail from a retailer, to the 
16extent that the proceeds of the service charge are in fact 
17turned over as tips or as a substitute for tips to the 
18employees who participate directly in preparing, serving, 
19hosting or cleaning up the food or beverage function with 
20respect to which the service charge is imposed.
21 (14) Until July 1, 2003, oil field exploration, drilling, 
22and production equipment, including (i) rigs and parts of 
23rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) 
24pipe and tubular goods, including casing and drill strings, 
25(iii) pumps and pump-jack units, (iv) storage tanks and flow 
26lines, (v) any individual replacement part for oil field 
 
 
10300HB4951sam002- 312 -LRB103 38094 HLH 74177 a


1exploration, drilling, and production equipment, and (vi) 
2machinery and equipment purchased for lease; but excluding 
3motor vehicles required to be registered under the Illinois 
4Vehicle Code.
5 (15) Photoprocessing machinery and equipment, including 
6repair and replacement parts, both new and used, including 
7that manufactured on special order, certified by the purchaser 
8to be used primarily for photoprocessing, and including 
9photoprocessing machinery and equipment purchased for lease.
10 (16) Until July 1, 2028, coal and aggregate exploration, 
11mining, off-highway hauling, processing, maintenance, and 
12reclamation equipment, including replacement parts and 
13equipment, and including equipment purchased for lease, but 
14excluding motor vehicles required to be registered under the 
15Illinois Vehicle Code. The changes made to this Section by 
16Public Act 97-767 apply on and after July 1, 2003, but no claim 
17for credit or refund is allowed on or after August 16, 2013 
18(the effective date of Public Act 98-456) for such taxes paid 
19during the period beginning July 1, 2003 and ending on August 
2016, 2013 (the effective date of Public Act 98-456). 
21 (17) Until July 1, 2003, distillation machinery and 
22equipment, sold as a unit or kit, assembled or installed by the 
23retailer, certified by the user to be used only for the 
24production of ethyl alcohol that will be used for consumption 
25as motor fuel or as a component of motor fuel for the personal 
26use of the user, and not subject to sale or resale.
 
 
10300HB4951sam002- 313 -LRB103 38094 HLH 74177 a


1 (18) Manufacturing and assembling machinery and equipment 
2used primarily in the process of manufacturing or assembling 
3tangible personal property for wholesale or retail sale or 
4lease, whether that sale or lease is made directly by the 
5manufacturer or by some other person, whether the materials 
6used in the process are owned by the manufacturer or some other 
7person, or whether that sale or lease is made apart from or as 
8an incident to the seller's engaging in the service occupation 
9of producing machines, tools, dies, jigs, patterns, gauges, or 
10other similar items of no commercial value on special order 
11for a particular purchaser. The exemption provided by this 
12paragraph (18) includes production related tangible personal 
13property, as defined in Section 3-50, purchased on or after 
14July 1, 2019. The exemption provided by this paragraph (18) 
15does not include machinery and equipment used in (i) the 
16generation of electricity for wholesale or retail sale; (ii) 
17the generation or treatment of natural or artificial gas for 
18wholesale or retail sale that is delivered to customers 
19through pipes, pipelines, or mains; or (iii) the treatment of 
20water for wholesale or retail sale that is delivered to 
21customers through pipes, pipelines, or mains. The provisions 
22of Public Act 98-583 are declaratory of existing law as to the 
23meaning and scope of this exemption. Beginning on July 1, 
242017, the exemption provided by this paragraph (18) includes, 
25but is not limited to, graphic arts machinery and equipment, 
26as defined in paragraph (6) of this Section. 
 
 
10300HB4951sam002- 314 -LRB103 38094 HLH 74177 a


1 (19) Personal property delivered to a purchaser or 
2purchaser's donee inside Illinois when the purchase order for 
3that personal property was received by a florist located 
4outside Illinois who has a florist located inside Illinois 
5deliver the personal property.
6 (20) Semen used for artificial insemination of livestock 
7for direct agricultural production.
8 (21) Horses, or interests in horses, registered with and 
9meeting the requirements of any of the Arabian Horse Club 
10Registry of America, Appaloosa Horse Club, American Quarter 
11Horse Association, United States Trotting Association, or 
12Jockey Club, as appropriate, used for purposes of breeding or 
13racing for prizes. This item (21) is exempt from the 
14provisions of Section 3-90, and the exemption provided for 
15under this item (21) applies for all periods beginning May 30, 
161995, but no claim for credit or refund is allowed on or after 
17January 1, 2008 for such taxes paid during the period 
18beginning May 30, 2000 and ending on January 1, 2008. 
19 (22) Computers and communications equipment utilized for 
20any hospital purpose and equipment used in the diagnosis, 
21analysis, or treatment of hospital patients purchased by a 
22lessor who leases the equipment, under a lease of one year or 
23longer executed or in effect at the time the lessor would 
24otherwise be subject to the tax imposed by this Act, to a 
25hospital that has been issued an active tax exemption 
26identification number by the Department under Section 1g of 
 
 
10300HB4951sam002- 315 -LRB103 38094 HLH 74177 a


1the Retailers' Occupation Tax Act. If the equipment is leased 
2in a manner that does not qualify for this exemption or is used 
3in any other non-exempt manner, the lessor shall be liable for 
4the tax imposed under this Act or the Service Use Tax Act, as 
5the case may be, based on the fair market value of the property 
6at the time the non-qualifying use occurs. No lessor shall 
7collect or attempt to collect an amount (however designated) 
8that purports to reimburse that lessor for the tax imposed by 
9this Act or the Service Use Tax Act, as the case may be, if the 
10tax has not been paid by the lessor. If a lessor improperly 
11collects any such amount from the lessee, the lessee shall 
12have a legal right to claim a refund of that amount from the 
13lessor. If, however, that amount is not refunded to the lessee 
14for any reason, the lessor is liable to pay that amount to the 
15Department.
16 (23) Personal property purchased by a lessor who leases 
17the property, under a lease of one year or longer executed or 
18in effect at the time the lessor would otherwise be subject to 
19the tax imposed by this Act, to a governmental body that has 
20been issued an active sales tax exemption identification 
21number by the Department under Section 1g of the Retailers' 
22Occupation Tax Act. If the property is leased in a manner that 
23does not qualify for this exemption or used in any other 
24non-exempt manner, the lessor shall be liable for the tax 
25imposed under this Act or the Service Use Tax Act, as the case 
26may be, based on the fair market value of the property at the 
 
 
10300HB4951sam002- 316 -LRB103 38094 HLH 74177 a


1time the non-qualifying use occurs. No lessor shall collect or 
2attempt to collect an amount (however designated) that 
3purports to reimburse that lessor for the tax imposed by this 
4Act or the Service Use Tax Act, as the case may be, if the tax 
5has not been paid by the lessor. If a lessor improperly 
6collects any such amount from the lessee, the lessee shall 
7have a legal right to claim a refund of that amount from the 
8lessor. If, however, that amount is not refunded to the lessee 
9for any reason, the lessor is liable to pay that amount to the 
10Department.
11 (24) Beginning with taxable years ending on or after 
12December 31, 1995 and ending with taxable years ending on or 
13before December 31, 2004, personal property that is donated 
14for disaster relief to be used in a State or federally declared 
15disaster area in Illinois or bordering Illinois by a 
16manufacturer or retailer that is registered in this State to a 
17corporation, society, association, foundation, or institution 
18that has been issued a sales tax exemption identification 
19number by the Department that assists victims of the disaster 
20who reside within the declared disaster area.
21 (25) Beginning with taxable years ending on or after 
22December 31, 1995 and ending with taxable years ending on or 
23before December 31, 2004, personal property that is used in 
24the performance of infrastructure repairs in this State, 
25including, but not limited to, municipal roads and streets, 
26access roads, bridges, sidewalks, waste disposal systems, 
 
 
10300HB4951sam002- 317 -LRB103 38094 HLH 74177 a


1water and sewer line extensions, water distribution and 
2purification facilities, storm water drainage and retention 
3facilities, and sewage treatment facilities, resulting from a 
4State or federally declared disaster in Illinois or bordering 
5Illinois when such repairs are initiated on facilities located 
6in the declared disaster area within 6 months after the 
7disaster.
8 (26) Beginning July 1, 1999, game or game birds purchased 
9at a "game breeding and hunting preserve area" as that term is 
10used in the Wildlife Code. This paragraph is exempt from the 
11provisions of Section 3-90.
12 (27) A motor vehicle, as that term is defined in Section 
131-146 of the Illinois Vehicle Code, that is donated to a 
14corporation, limited liability company, society, association, 
15foundation, or institution that is determined by the 
16Department to be organized and operated exclusively for 
17educational purposes. For purposes of this exemption, "a 
18corporation, limited liability company, society, association, 
19foundation, or institution organized and operated exclusively 
20for educational purposes" means all tax-supported public 
21schools, private schools that offer systematic instruction in 
22useful branches of learning by methods common to public 
23schools and that compare favorably in their scope and 
24intensity with the course of study presented in tax-supported 
25schools, and vocational or technical schools or institutes 
26organized and operated exclusively to provide a course of 
 
 
10300HB4951sam002- 318 -LRB103 38094 HLH 74177 a


1study of not less than 6 weeks duration and designed to prepare 
2individuals to follow a trade or to pursue a manual, 
3technical, mechanical, industrial, business, or commercial 
4occupation.
5 (28) Beginning January 1, 2000, personal property, 
6including food, purchased through fundraising events for the 
7benefit of a public or private elementary or secondary school, 
8a group of those schools, or one or more school districts if 
9the events are sponsored by an entity recognized by the school 
10district that consists primarily of volunteers and includes 
11parents and teachers of the school children. This paragraph 
12does not apply to fundraising events (i) for the benefit of 
13private home instruction or (ii) for which the fundraising 
14entity purchases the personal property sold at the events from 
15another individual or entity that sold the property for the 
16purpose of resale by the fundraising entity and that profits 
17from the sale to the fundraising entity. This paragraph is 
18exempt from the provisions of Section 3-90.
19 (29) Beginning January 1, 2000 and through December 31, 
202001, new or used automatic vending machines that prepare and 
21serve hot food and beverages, including coffee, soup, and 
22other items, and replacement parts for these machines. 
23Beginning January 1, 2002 and through June 30, 2003, machines 
24and parts for machines used in commercial, coin-operated 
25amusement and vending business if a use or occupation tax is 
26paid on the gross receipts derived from the use of the 
 
 
10300HB4951sam002- 319 -LRB103 38094 HLH 74177 a


1commercial, coin-operated amusement and vending machines. This 
2paragraph is exempt from the provisions of Section 3-90.
3 (30) Beginning January 1, 2001 and through June 30, 2016, 
4food for human consumption that is to be consumed off the 
5premises where it is sold (other than alcoholic beverages, 
6soft drinks, and food that has been prepared for immediate 
7consumption) and prescription and nonprescription medicines, 
8drugs, medical appliances, and insulin, urine testing 
9materials, syringes, and needles used by diabetics, for human 
10use, when purchased for use by a person receiving medical 
11assistance under Article V of the Illinois Public Aid Code who 
12resides in a licensed long-term care facility, as defined in 
13the Nursing Home Care Act, or in a licensed facility as defined 
14in the ID/DD Community Care Act, the MC/DD Act, or the 
15Specialized Mental Health Rehabilitation Act of 2013.
16 (31) Beginning on August 2, 2001 (the effective date of 
17Public Act 92-227), computers and communications equipment 
18utilized for any hospital purpose and equipment used in the 
19diagnosis, analysis, or treatment of hospital patients 
20purchased by a lessor who leases the equipment, under a lease 
21of one year or longer executed or in effect at the time the 
22lessor would otherwise be subject to the tax imposed by this 
23Act, to a hospital that has been issued an active tax exemption 
24identification number by the Department under Section 1g of 
25the Retailers' Occupation Tax Act. If the equipment is leased 
26in a manner that does not qualify for this exemption or is used 
 
 
10300HB4951sam002- 320 -LRB103 38094 HLH 74177 a


1in any other nonexempt manner, the lessor shall be liable for 
2the tax imposed under this Act or the Service Use Tax Act, as 
3the case may be, based on the fair market value of the property 
4at the time the nonqualifying use occurs. No lessor shall 
5collect or attempt to collect an amount (however designated) 
6that purports to reimburse that lessor for the tax imposed by 
7this Act or the Service Use Tax Act, as the case may be, if the 
8tax has not been paid by the lessor. If a lessor improperly 
9collects any such amount from the lessee, the lessee shall 
10have a legal right to claim a refund of that amount from the 
11lessor. If, however, that amount is not refunded to the lessee 
12for any reason, the lessor is liable to pay that amount to the 
13Department. This paragraph is exempt from the provisions of 
14Section 3-90.
15 (32) Beginning on August 2, 2001 (the effective date of 
16Public Act 92-227), personal property purchased by a lessor 
17who leases the property, under a lease of one year or longer 
18executed or in effect at the time the lessor would otherwise be 
19subject to the tax imposed by this Act, to a governmental body 
20that has been issued an active sales tax exemption 
21identification number by the Department under Section 1g of 
22the Retailers' Occupation Tax Act. If the property is leased 
23in a manner that does not qualify for this exemption or used in 
24any other nonexempt manner, the lessor shall be liable for the 
25tax imposed under this Act or the Service Use Tax Act, as the 
26case may be, based on the fair market value of the property at 
 
 
10300HB4951sam002- 321 -LRB103 38094 HLH 74177 a


1the time the nonqualifying use occurs. No lessor shall collect 
2or attempt to collect an amount (however designated) that 
3purports to reimburse that lessor for the tax imposed by this 
4Act or the Service Use Tax Act, as the case may be, if the tax 
5has not been paid by the lessor. If a lessor improperly 
6collects any such amount from the lessee, the lessee shall 
7have a legal right to claim a refund of that amount from the 
8lessor. If, however, that amount is not refunded to the lessee 
9for any reason, the lessor is liable to pay that amount to the 
10Department. This paragraph is exempt from the provisions of 
11Section 3-90.
12 (33) On and after July 1, 2003 and through June 30, 2004, 
13the use in this State of motor vehicles of the second division 
14with a gross vehicle weight in excess of 8,000 pounds and that 
15are subject to the commercial distribution fee imposed under 
16Section 3-815.1 of the Illinois Vehicle Code. Beginning on 
17July 1, 2004 and through June 30, 2005, the use in this State 
18of motor vehicles of the second division: (i) with a gross 
19vehicle weight rating in excess of 8,000 pounds; (ii) that are 
20subject to the commercial distribution fee imposed under 
21Section 3-815.1 of the Illinois Vehicle Code; and (iii) that 
22are primarily used for commercial purposes. Through June 30, 
232005, this exemption applies to repair and replacement parts 
24added after the initial purchase of such a motor vehicle if 
25that motor vehicle is used in a manner that would qualify for 
26the rolling stock exemption otherwise provided for in this 
 
 
10300HB4951sam002- 322 -LRB103 38094 HLH 74177 a


1Act. For purposes of this paragraph, the term "used for 
2commercial purposes" means the transportation of persons or 
3property in furtherance of any commercial or industrial 
4enterprise, whether for-hire or not. 
5 (34) Beginning January 1, 2008, tangible personal property 
6used in the construction or maintenance of a community water 
7supply, as defined under Section 3.145 of the Environmental 
8Protection Act, that is operated by a not-for-profit 
9corporation that holds a valid water supply permit issued 
10under Title IV of the Environmental Protection Act. This 
11paragraph is exempt from the provisions of Section 3-90.
12 (35) Beginning January 1, 2010 and continuing through 
13December 31, 2029, materials, parts, equipment, components, 
14and furnishings incorporated into or upon an aircraft as part 
15of the modification, refurbishment, completion, replacement, 
16repair, or maintenance of the aircraft. This exemption 
17includes consumable supplies used in the modification, 
18refurbishment, completion, replacement, repair, and 
19maintenance of aircraft. However, until January 1, 2024, this 
20exemption excludes any materials, parts, equipment, 
21components, and consumable supplies used in the modification, 
22replacement, repair, and maintenance of aircraft engines or 
23power plants, whether such engines or power plants are 
24installed or uninstalled upon any such aircraft. "Consumable 
25supplies" include, but are not limited to, adhesive, tape, 
26sandpaper, general purpose lubricants, cleaning solution, 
 
 
10300HB4951sam002- 323 -LRB103 38094 HLH 74177 a


1latex gloves, and protective films. 
2 Beginning January 1, 2010 and continuing through December 
331, 2023, this exemption applies only to the use of qualifying 
4tangible personal property by persons who modify, refurbish, 
5complete, repair, replace, or maintain aircraft and who (i) 
6hold an Air Agency Certificate and are empowered to operate an 
7approved repair station by the Federal Aviation 
8Administration, (ii) have a Class IV Rating, and (iii) conduct 
9operations in accordance with Part 145 of the Federal Aviation 
10Regulations. From January 1, 2024 through December 31, 2029, 
11this exemption applies only to the use of qualifying tangible 
12personal property by: (A) persons who modify, refurbish, 
13complete, repair, replace, or maintain aircraft and who (i) 
14hold an Air Agency Certificate and are empowered to operate an 
15approved repair station by the Federal Aviation 
16Administration, (ii) have a Class IV Rating, and (iii) conduct 
17operations in accordance with Part 145 of the Federal Aviation 
18Regulations; and (B) persons who engage in the modification, 
19replacement, repair, and maintenance of aircraft engines or 
20power plants without regard to whether or not those persons 
21meet the qualifications of item (A). 
22 The exemption does not include aircraft operated by a 
23commercial air carrier providing scheduled passenger air 
24service pursuant to authority issued under Part 121 or Part 
25129 of the Federal Aviation Regulations. The changes made to 
26this paragraph (35) by Public Act 98-534 are declarative of 
 
 
10300HB4951sam002- 324 -LRB103 38094 HLH 74177 a


1existing law. It is the intent of the General Assembly that the 
2exemption under this paragraph (35) applies continuously from 
3January 1, 2010 through December 31, 2024; however, no claim 
4for credit or refund is allowed for taxes paid as a result of 
5the disallowance of this exemption on or after January 1, 2015 
6and prior to February 5, 2020 (the effective date of Public Act 
7101-629).
8 (36) Tangible personal property purchased by a 
9public-facilities corporation, as described in Section 
1011-65-10 of the Illinois Municipal Code, for purposes of 
11constructing or furnishing a municipal convention hall, but 
12only if the legal title to the municipal convention hall is 
13transferred to the municipality without any further 
14consideration by or on behalf of the municipality at the time 
15of the completion of the municipal convention hall or upon the 
16retirement or redemption of any bonds or other debt 
17instruments issued by the public-facilities corporation in 
18connection with the development of the municipal convention 
19hall. This exemption includes existing public-facilities 
20corporations as provided in Section 11-65-25 of the Illinois 
21Municipal Code. This paragraph is exempt from the provisions 
22of Section 3-90. 
23 (37) Beginning January 1, 2017 and through December 31, 
242026, menstrual pads, tampons, and menstrual cups. 
25 (38) Merchandise that is subject to the Rental Purchase 
26Agreement Occupation and Use Tax. The purchaser must certify 
 
 
10300HB4951sam002- 325 -LRB103 38094 HLH 74177 a


1that the item is purchased to be rented subject to a 
2rental-purchase rental purchase agreement, as defined in the 
3Rental-Purchase Rental Purchase Agreement Act, and provide 
4proof of registration under the Rental Purchase Agreement 
5Occupation and Use Tax Act. This paragraph is exempt from the 
6provisions of Section 3-90.
7 (39) Tangible personal property purchased by a purchaser 
8who is exempt from the tax imposed by this Act by operation of 
9federal law. This paragraph is exempt from the provisions of 
10Section 3-90.
11 (40) Qualified tangible personal property used in the 
12construction or operation of a data center that has been 
13granted a certificate of exemption by the Department of 
14Commerce and Economic Opportunity, whether that tangible 
15personal property is purchased by the owner, operator, or 
16tenant of the data center or by a contractor or subcontractor 
17of the owner, operator, or tenant. Data centers that would 
18have qualified for a certificate of exemption prior to January 
191, 2020 had Public Act 101-31 been in effect may apply for and 
20obtain an exemption for subsequent purchases of computer 
21equipment or enabling software purchased or leased to upgrade, 
22supplement, or replace computer equipment or enabling software 
23purchased or leased in the original investment that would have 
24qualified. 
25 The Department of Commerce and Economic Opportunity shall 
26grant a certificate of exemption under this item (40) to 
 
 
10300HB4951sam002- 326 -LRB103 38094 HLH 74177 a


1qualified data centers as defined by Section 605-1025 of the 
2Department of Commerce and Economic Opportunity Law of the 
3Civil Administrative Code of Illinois. 
4 For the purposes of this item (40): 
5  "Data center" means a building or a series of 
6 buildings rehabilitated or constructed to house working 
7 servers in one physical location or multiple sites within 
8 the State of Illinois. 
9  "Qualified tangible personal property" means: 
10 electrical systems and equipment; climate control and 
11 chilling equipment and systems; mechanical systems and 
12 equipment; monitoring and secure systems; emergency 
13 generators; hardware; computers; servers; data storage 
14 devices; network connectivity equipment; racks; cabinets; 
15 telecommunications cabling infrastructure; raised floor 
16 systems; peripheral components or systems; software; 
17 mechanical, electrical, or plumbing systems; battery 
18 systems; cooling systems and towers; temperature control 
19 systems; other cabling; and other data center 
20 infrastructure equipment and systems necessary to operate 
21 qualified tangible personal property, including fixtures; 
22 and component parts of any of the foregoing, including 
23 installation, maintenance, repair, refurbishment, and 
24 replacement of qualified tangible personal property to 
25 generate, transform, transmit, distribute, or manage 
26 electricity necessary to operate qualified tangible 
 
 
10300HB4951sam002- 327 -LRB103 38094 HLH 74177 a


1 personal property; and all other tangible personal 
2 property that is essential to the operations of a computer 
3 data center. The term "qualified tangible personal 
4 property" also includes building materials physically 
5 incorporated into in to the qualifying data center. To 
6 document the exemption allowed under this Section, the 
7 retailer must obtain from the purchaser a copy of the 
8 certificate of eligibility issued by the Department of 
9 Commerce and Economic Opportunity. 
10 This item (40) is exempt from the provisions of Section 
113-90. 
12 (41) Beginning July 1, 2022, breast pumps, breast pump 
13collection and storage supplies, and breast pump kits. This 
14item (41) is exempt from the provisions of Section 3-90. As 
15used in this item (41): 
16  "Breast pump" means an electrically controlled or 
17 manually controlled pump device designed or marketed to be 
18 used to express milk from a human breast during lactation, 
19 including the pump device and any battery, AC adapter, or 
20 other power supply unit that is used to power the pump 
21 device and is packaged and sold with the pump device at the 
22 time of sale. 
23  "Breast pump collection and storage supplies" means 
24 items of tangible personal property designed or marketed 
25 to be used in conjunction with a breast pump to collect 
26 milk expressed from a human breast and to store collected 
 
 
10300HB4951sam002- 328 -LRB103 38094 HLH 74177 a


1 milk until it is ready for consumption. 
2  "Breast pump collection and storage supplies" 
3 includes, but is not limited to: breast shields and breast 
4 shield connectors; breast pump tubes and tubing adapters; 
5 breast pump valves and membranes; backflow protectors and 
6 backflow protector adaptors; bottles and bottle caps 
7 specific to the operation of the breast pump; and breast 
8 milk storage bags. 
9  "Breast pump collection and storage supplies" does not 
10 include: (1) bottles and bottle caps not specific to the 
11 operation of the breast pump; (2) breast pump travel bags 
12 and other similar carrying accessories, including ice 
13 packs, labels, and other similar products; (3) breast pump 
14 cleaning supplies; (4) nursing bras, bra pads, breast 
15 shells, and other similar products; and (5) creams, 
16 ointments, and other similar products that relieve 
17 breastfeeding-related symptoms or conditions of the 
18 breasts or nipples, unless sold as part of a breast pump 
19 kit that is pre-packaged by the breast pump manufacturer 
20 or distributor. 
21  "Breast pump kit" means a kit that: (1) contains no 
22 more than a breast pump, breast pump collection and 
23 storage supplies, a rechargeable battery for operating the 
24 breast pump, a breastmilk cooler, bottle stands, ice 
25 packs, and a breast pump carrying case; and (2) is 
26 pre-packaged as a breast pump kit by the breast pump 
 
 
10300HB4951sam002- 329 -LRB103 38094 HLH 74177 a


1 manufacturer or distributor. 
2 (42) Tangible personal property sold by or on behalf of 
3the State Treasurer pursuant to the Revised Uniform Unclaimed 
4Property Act. This item (42) is exempt from the provisions of 
5Section 3-90. 
6 (43) Beginning on January 1, 2024, tangible personal 
7property purchased by an active duty member of the armed 
8forces of the United States who presents valid military 
9identification and purchases the property using a form of 
10payment where the federal government is the payor. The member 
11of the armed forces must complete, at the point of sale, a form 
12prescribed by the Department of Revenue documenting that the 
13transaction is eligible for the exemption under this 
14paragraph. Retailers must keep the form as documentation of 
15the exemption in their records for a period of not less than 6 
16years. "Armed forces of the United States" means the United 
17States Army, Navy, Air Force, Marine Corps, or Coast Guard. 
18This paragraph is exempt from the provisions of Section 3-90. 
19 (44) Use by the lessee of the following leased tangible 
20personal property:
21  (1) software transferred subject to a license that 
22 meets the following requirements:
23   (A) it is evidenced by a written agreement signed 
24 by the licensor and the customer;
25    (i) an electronic agreement in which the 
26 customer accepts the license by means of an 
 
 
10300HB4951sam002- 330 -LRB103 38094 HLH 74177 a


1 electronic signature that is verifiable and can be 
2 authenticated and is attached to or made part of 
3 the license will comply with this requirement;
4    (ii) a license agreement in which the customer 
5 electronically accepts the terms by clicking "I 
6 agree" does not comply with this requirement;
7   (B) it restricts the customer's duplication and 
8 use of the software;
9   (C) it prohibits the customer from licensing, 
10 sublicensing, or transferring the software to a third 
11 party (except to a related party) without the 
12 permission and continued control of the licensor;
13   (D) the licensor has a policy of providing another 
14 copy at minimal or no charge if the customer loses or 
15 damages the software, or of permitting the licensee to 
16 make and keep an archival copy, and such policy is 
17 either stated in the license agreement, supported by 
18 the licensor's books and records, or supported by a 
19 notarized statement made under penalties of perjury by 
20 the licensor; and
21   (E) the customer must destroy or return all copies 
22 of the software to the licensor at the end of the 
23 license period; this provision is deemed to be met, in 
24 the case of a perpetual license, without being set 
25 forth in the license agreement; and
26  (2) property that is subject to a tax on lease 
 
 
10300HB4951sam002- 331 -LRB103 38094 HLH 74177 a


1 receipts imposed by a home rule unit of local government 
2 if the ordinance imposing that tax was adopted prior to 
3 January 1, 2023. 
4(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, 
5Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, 
6eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, 
7Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5, 
8eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 
9revised 12-12-23.)

10 (35 ILCS 105/3-10)
11 Sec. 3-10. Rate of tax. Unless otherwise provided in this 
12Section, the tax imposed by this Act is at the rate of 6.25% of 
13either the selling price or the fair market value, if any, of 
14the tangible personal property, which, on and after January 1, 
152025, includes leases of tangible personal property. In all 
16cases where property functionally used or consumed is the same 
17as the property that was purchased at retail, then the tax is 
18imposed on the selling price of the property. In all cases 
19where property functionally used or consumed is a by-product 
20or waste product that has been refined, manufactured, or 
21produced from property purchased at retail, then the tax is 
22imposed on the lower of the fair market value, if any, of the 
23specific property so used in this State or on the selling price 
24of the property purchased at retail. For purposes of this 
25Section "fair market value" means the price at which property 
 
 
10300HB4951sam002- 332 -LRB103 38094 HLH 74177 a


1would change hands between a willing buyer and a willing 
2seller, neither being under any compulsion to buy or sell and 
3both having reasonable knowledge of the relevant facts. The 
4fair market value shall be established by Illinois sales by 
5the taxpayer of the same property as that functionally used or 
6consumed, or if there are no such sales by the taxpayer, then 
7comparable sales or purchases of property of like kind and 
8character in Illinois.
9 Beginning on July 1, 2000 and through December 31, 2000, 
10with respect to motor fuel, as defined in Section 1.1 of the 
11Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
12the Use Tax Act, the tax is imposed at the rate of 1.25%.
13 Beginning on August 6, 2010 through August 15, 2010, and 
14beginning again on August 5, 2022 through August 14, 2022, 
15with respect to sales tax holiday items as defined in Section 
163-6 of this Act, the tax is imposed at the rate of 1.25%. 
17 With respect to gasohol, the tax imposed by this Act 
18applies to (i) 70% of the proceeds of sales made on or after 
19January 1, 1990, and before July 1, 2003, (ii) 80% of the 
20proceeds of sales made on or after July 1, 2003 and on or 
21before July 1, 2017, (iii) 100% of the proceeds of sales made 
22after July 1, 2017 and prior to January 1, 2024, (iv) 90% of 
23the proceeds of sales made on or after January 1, 2024 and on 
24or before December 31, 2028, and (v) 100% of the proceeds of 
25sales made after December 31, 2028. If, at any time, however, 
26the tax under this Act on sales of gasohol is imposed at the 
 
 
10300HB4951sam002- 333 -LRB103 38094 HLH 74177 a


1rate of 1.25%, then the tax imposed by this Act applies to 100% 
2of the proceeds of sales of gasohol made during that time.
3 With respect to mid-range ethanol blends, the tax imposed 
4by this Act applies to (i) 80% of the proceeds of sales made on 
5or after January 1, 2024 and on or before December 31, 2028 and 
6(ii) 100% of the proceeds of sales made thereafter. If, at any 
7time, however, the tax under this Act on sales of mid-range 
8ethanol blends is imposed at the rate of 1.25%, then the tax 
9imposed by this Act applies to 100% of the proceeds of sales of 
10mid-range ethanol blends made during that time. 
11 With respect to majority blended ethanol fuel, the tax 
12imposed by this Act does not apply to the proceeds of sales 
13made on or after July 1, 2003 and on or before December 31, 
142028 but applies to 100% of the proceeds of sales made 
15thereafter.
16 With respect to biodiesel blends with no less than 1% and 
17no more than 10% biodiesel, the tax imposed by this Act applies 
18to (i) 80% of the proceeds of sales made on or after July 1, 
192003 and on or before December 31, 2018 and (ii) 100% of the 
20proceeds of sales made after December 31, 2018 and before 
21January 1, 2024. On and after January 1, 2024 and on or before 
22December 31, 2030, the taxation of biodiesel, renewable 
23diesel, and biodiesel blends shall be as provided in Section 
243-5.1. If, at any time, however, the tax under this Act on 
25sales of biodiesel blends with no less than 1% and no more than 
2610% biodiesel is imposed at the rate of 1.25%, then the tax 
 
 
10300HB4951sam002- 334 -LRB103 38094 HLH 74177 a


1imposed by this Act applies to 100% of the proceeds of sales of 
2biodiesel blends with no less than 1% and no more than 10% 
3biodiesel made during that time.
4 With respect to biodiesel and biodiesel blends with more 
5than 10% but no more than 99% biodiesel, the tax imposed by 
6this Act does not apply to the proceeds of sales made on or 
7after July 1, 2003 and on or before December 31, 2023. On and 
8after January 1, 2024 and on or before December 31, 2030, the 
9taxation of biodiesel, renewable diesel, and biodiesel blends 
10shall be as provided in Section 3-5.1.
11 Until July 1, 2022 and beginning again on July 1, 2023, 
12with respect to food for human consumption that is to be 
13consumed off the premises where it is sold (other than 
14alcoholic beverages, food consisting of or infused with adult 
15use cannabis, soft drinks, and food that has been prepared for 
16immediate consumption), the tax is imposed at the rate of 1%. 
17Beginning on July 1, 2022 and until July 1, 2023, with respect 
18to food for human consumption that is to be consumed off the 
19premises where it is sold (other than alcoholic beverages, 
20food consisting of or infused with adult use cannabis, soft 
21drinks, and food that has been prepared for immediate 
22consumption), the tax is imposed at the rate of 0%.
23 With respect to prescription and nonprescription 
24medicines, drugs, medical appliances, products classified as 
25Class III medical devices by the United States Food and Drug 
26Administration that are used for cancer treatment pursuant to 
 
 
10300HB4951sam002- 335 -LRB103 38094 HLH 74177 a


1a prescription, as well as any accessories and components 
2related to those devices, modifications to a motor vehicle for 
3the purpose of rendering it usable by a person with a 
4disability, and insulin, blood sugar testing materials, 
5syringes, and needles used by human diabetics, the tax is 
6imposed at the rate of 1%. For the purposes of this Section, 
7until September 1, 2009: the term "soft drinks" means any 
8complete, finished, ready-to-use, non-alcoholic drink, whether 
9carbonated or not, including, but not limited to, soda water, 
10cola, fruit juice, vegetable juice, carbonated water, and all 
11other preparations commonly known as soft drinks of whatever 
12kind or description that are contained in any closed or sealed 
13bottle, can, carton, or container, regardless of size; but 
14"soft drinks" does not include coffee, tea, non-carbonated 
15water, infant formula, milk or milk products as defined in the 
16Grade A Pasteurized Milk and Milk Products Act, or drinks 
17containing 50% or more natural fruit or vegetable juice.
18 Notwithstanding any other provisions of this Act, 
19beginning September 1, 2009, "soft drinks" means non-alcoholic 
20beverages that contain natural or artificial sweeteners. "Soft 
21drinks" does not include beverages that contain milk or milk 
22products, soy, rice or similar milk substitutes, or greater 
23than 50% of vegetable or fruit juice by volume.
24 Until August 1, 2009, and notwithstanding any other 
25provisions of this Act, "food for human consumption that is to 
26be consumed off the premises where it is sold" includes all 
 
 
10300HB4951sam002- 336 -LRB103 38094 HLH 74177 a


1food sold through a vending machine, except soft drinks and 
2food products that are dispensed hot from a vending machine, 
3regardless of the location of the vending machine. Beginning 
4August 1, 2009, and notwithstanding any other provisions of 
5this Act, "food for human consumption that is to be consumed 
6off the premises where it is sold" includes all food sold 
7through a vending machine, except soft drinks, candy, and food 
8products that are dispensed hot from a vending machine, 
9regardless of the location of the vending machine. 
10 Notwithstanding any other provisions of this Act, 
11beginning September 1, 2009, "food for human consumption that 
12is to be consumed off the premises where it is sold" does not 
13include candy. For purposes of this Section, "candy" means a 
14preparation of sugar, honey, or other natural or artificial 
15sweeteners in combination with chocolate, fruits, nuts or 
16other ingredients or flavorings in the form of bars, drops, or 
17pieces. "Candy" does not include any preparation that contains 
18flour or requires refrigeration. 
19 Notwithstanding any other provisions of this Act, 
20beginning September 1, 2009, "nonprescription medicines and 
21drugs" does not include grooming and hygiene products. For 
22purposes of this Section, "grooming and hygiene products" 
23includes, but is not limited to, soaps and cleaning solutions, 
24shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
25lotions and screens, unless those products are available by 
26prescription only, regardless of whether the products meet the 
 
 
10300HB4951sam002- 337 -LRB103 38094 HLH 74177 a


1definition of "over-the-counter-drugs". For the purposes of 
2this paragraph, "over-the-counter-drug" means a drug for human 
3use that contains a label that identifies the product as a drug 
4as required by 21 CFR 201.66. The "over-the-counter-drug" 
5label includes: 
6  (A) a "Drug Facts" panel; or
7  (B) a statement of the "active ingredient(s)" with a 
8 list of those ingredients contained in the compound, 
9 substance or preparation.
10 Beginning on January 1, 2014 (the effective date of Public 
11Act 98-122), "prescription and nonprescription medicines and 
12drugs" includes medical cannabis purchased from a registered 
13dispensing organization under the Compassionate Use of Medical 
14Cannabis Program Act. 
15 As used in this Section, "adult use cannabis" means 
16cannabis subject to tax under the Cannabis Cultivation 
17Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
18and does not include cannabis subject to tax under the 
19Compassionate Use of Medical Cannabis Program Act. 
20 If the property that is purchased at retail from a 
21retailer is acquired outside Illinois and used outside 
22Illinois before being brought to Illinois for use here and is 
23taxable under this Act, the "selling price" on which the tax is 
24computed shall be reduced by an amount that represents a 
25reasonable allowance for depreciation for the period of prior 
26out-of-state use. No depreciation is allowed in cases where 
 
 
10300HB4951sam002- 338 -LRB103 38094 HLH 74177 a


1the tax under this Act is imposed on lease receipts. 
2(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, 
3Section 20-5, eff. 4-19-22; 102-700, Article 60, Section 
460-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 
54-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)

6 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
7 Sec. 3-55. Multistate exemption. To prevent actual or 
8likely multistate taxation, the tax imposed by this Act does 
9not apply to the use of tangible personal property in this 
10State under the following circumstances:
11 (a) The use, in this State, of tangible personal property 
12acquired outside this State by a nonresident individual and 
13brought into this State by the individual for his or her own 
14use while temporarily within this State or while passing 
15through this State.
16 (b) (Blank).
17 (c) The use, in this State, by owners or , lessors, 
18lessees, or shippers of tangible personal property that is 
19utilized by interstate carriers for hire for use as rolling 
20stock moving in interstate commerce as long as so used by the 
21interstate carriers for hire, and equipment operated by a 
22telecommunications provider, licensed as a common carrier by 
23the Federal Communications Commission, which is permanently 
24installed in or affixed to aircraft moving in interstate 
25commerce.
 
 
10300HB4951sam002- 339 -LRB103 38094 HLH 74177 a


1 (d) The use, in this State, of tangible personal property 
2that is acquired outside this State and caused to be brought 
3into this State by a person who has already paid a tax in 
4another State in respect to the sale, purchase, or use of that 
5property, to the extent of the amount of the tax properly due 
6and paid in the other State.
7 (e) The temporary storage, in this State, of tangible 
8personal property that is acquired outside this State and 
9that, after being brought into this State and stored here 
10temporarily, is used solely outside this State or is 
11physically attached to or incorporated into other tangible 
12personal property that is used solely outside this State, or 
13is altered by converting, fabricating, manufacturing, 
14printing, processing, or shaping, and, as altered, is used 
15solely outside this State.
16 (f) The temporary storage in this State of building 
17materials and fixtures that are acquired either in this State 
18or outside this State by an Illinois registered combination 
19retailer and construction contractor, and that the purchaser 
20thereafter uses outside this State by incorporating that 
21property into real estate located outside this State.
22 (g) The use or purchase of tangible personal property by a 
23common carrier by rail or motor that receives the physical 
24possession of the property in Illinois, and that transports 
25the property, or shares with another common carrier in the 
26transportation of the property, out of Illinois on a standard 
 
 
10300HB4951sam002- 340 -LRB103 38094 HLH 74177 a


1uniform bill of lading showing the seller of the property as 
2the shipper or consignor of the property to a destination 
3outside Illinois, for use outside Illinois.
4 (h) Except as provided in subsection (h-1), the use, in 
5this State, of a motor vehicle that was sold in this State to a 
6nonresident, even though the motor vehicle is delivered to the 
7nonresident in this State, if the motor vehicle is not to be 
8titled in this State, and if a drive-away permit is issued to 
9the motor vehicle as provided in Section 3-603 of the Illinois 
10Vehicle Code or if the nonresident purchaser has vehicle 
11registration plates to transfer to the motor vehicle upon 
12returning to his or her home state. The issuance of the 
13drive-away permit or having the out-of-state registration 
14plates to be transferred shall be prima facie evidence that 
15the motor vehicle will not be titled in this State.
16 (h-1) The exemption under subsection (h) does not apply if 
17the state in which the motor vehicle will be titled does not 
18allow a reciprocal exemption for the use in that state of a 
19motor vehicle sold and delivered in that state to an Illinois 
20resident but titled in Illinois. The tax collected under this 
21Act on the sale of a motor vehicle in this State to a resident 
22of another state that does not allow a reciprocal exemption 
23shall be imposed at a rate equal to the state's rate of tax on 
24taxable property in the state in which the purchaser is a 
25resident, except that the tax shall not exceed the tax that 
26would otherwise be imposed under this Act. At the time of the 
 
 
10300HB4951sam002- 341 -LRB103 38094 HLH 74177 a


1sale, the purchaser shall execute a statement, signed under 
2penalty of perjury, of his or her intent to title the vehicle 
3in the state in which the purchaser is a resident within 30 
4days after the sale and of the fact of the payment to the State 
5of Illinois of tax in an amount equivalent to the state's rate 
6of tax on taxable property in his or her state of residence and 
7shall submit the statement to the appropriate tax collection 
8agency in his or her state of residence. In addition, the 
9retailer must retain a signed copy of the statement in his or 
10her records. Nothing in this subsection shall be construed to 
11require the removal of the vehicle from this state following 
12the filing of an intent to title the vehicle in the purchaser's 
13state of residence if the purchaser titles the vehicle in his 
14or her state of residence within 30 days after the date of 
15sale. The tax collected under this Act in accordance with this 
16subsection (h-1) shall be proportionately distributed as if 
17the tax were collected at the 6.25% general rate imposed under 
18this Act. 
19 (h-2) The following exemptions apply with respect to 
20certain aircraft:
21  (1) Beginning on July 1, 2007, no tax is imposed under 
22 this Act on the purchase of an aircraft, as defined in 
23 Section 3 of the Illinois Aeronautics Act, if all of the 
24 following conditions are met:
25   (A) the aircraft leaves this State within 15 days 
26 after the later of either the issuance of the final 
 
 
10300HB4951sam002- 342 -LRB103 38094 HLH 74177 a


1 billing for the purchase of the aircraft or the 
2 authorized approval for return to service, completion 
3 of the maintenance record entry, and completion of the 
4 test flight and ground test for inspection, as 
5 required by 14 C.F.R. 91.407;
6   (B) the aircraft is not based or registered in 
7 this State after the purchase of the aircraft; and
8   (C) the purchaser provides the Department with a 
9 signed and dated certification, on a form prescribed 
10 by the Department, certifying that the requirements of 
11 this item (1) are met. The certificate must also 
12 include the name and address of the purchaser, the 
13 address of the location where the aircraft is to be 
14 titled or registered, the address of the primary 
15 physical location of the aircraft, and other 
16 information that the Department may reasonably 
17 require.
18  (2) Beginning on July 1, 2007, no tax is imposed under 
19 this Act on the use of an aircraft, as defined in Section 3 
20 of the Illinois Aeronautics Act, that is temporarily 
21 located in this State for the purpose of a prepurchase 
22 evaluation if all of the following conditions are met:
23   (A) the aircraft is not based or registered in 
24 this State after the prepurchase evaluation; and
25   (B) the purchaser provides the Department with a 
26 signed and dated certification, on a form prescribed 
 
 
10300HB4951sam002- 343 -LRB103 38094 HLH 74177 a


1 by the Department, certifying that the requirements of 
2 this item (2) are met. The certificate must also 
3 include the name and address of the purchaser, the 
4 address of the location where the aircraft is to be 
5 titled or registered, the address of the primary 
6 physical location of the aircraft, and other 
7 information that the Department may reasonably 
8 require.
9  (3) Beginning on July 1, 2007, no tax is imposed under 
10 this Act on the use of an aircraft, as defined in Section 3 
11 of the Illinois Aeronautics Act, that is temporarily 
12 located in this State for the purpose of a post-sale 
13 customization if all of the following conditions are met:
14   (A) the aircraft leaves this State within 15 days 
15 after the authorized approval for return to service, 
16 completion of the maintenance record entry, and 
17 completion of the test flight and ground test for 
18 inspection, as required by 14 C.F.R. 91.407;
19   (B) the aircraft is not based or registered in 
20 this State either before or after the post-sale 
21 customization; and
22   (C) the purchaser provides the Department with a 
23 signed and dated certification, on a form prescribed 
24 by the Department, certifying that the requirements of 
25 this item (3) are met. The certificate must also 
26 include the name and address of the purchaser, the 
 
 
10300HB4951sam002- 344 -LRB103 38094 HLH 74177 a


1 address of the location where the aircraft is to be 
2 titled or registered, the address of the primary 
3 physical location of the aircraft, and other 
4 information that the Department may reasonably 
5 require.
6 If tax becomes due under this subsection (h-2) because of 
7the purchaser's use of the aircraft in this State, the 
8purchaser shall file a return with the Department and pay the 
9tax on the fair market value of the aircraft. This return and 
10payment of the tax must be made no later than 30 days after the 
11aircraft is used in a taxable manner in this State. The tax is 
12based on the fair market value of the aircraft on the date that 
13it is first used in a taxable manner in this State.
14 For purposes of this subsection (h-2):
15 "Based in this State" means hangared, stored, or otherwise 
16used, excluding post-sale customizations as defined in this 
17Section, for 10 or more days in each 12-month period 
18immediately following the date of the sale of the aircraft.
19 "Post-sale customization" means any improvement, 
20maintenance, or repair that is performed on an aircraft 
21following a transfer of ownership of the aircraft.
22 "Prepurchase evaluation" means an examination of an 
23aircraft to provide a potential purchaser with information 
24relevant to the potential purchase.
25 "Registered in this State" means an aircraft registered 
26with the Department of Transportation, Aeronautics Division, 
 
 
10300HB4951sam002- 345 -LRB103 38094 HLH 74177 a


1or titled or registered with the Federal Aviation 
2Administration to an address located in this State. 
3 This subsection (h-2) is exempt from the provisions of 
4Section 3-90. 
5 (i) Beginning July 1, 1999, the use, in this State, of fuel 
6acquired outside this State and brought into this State in the 
7fuel supply tanks of locomotives engaged in freight hauling 
8and passenger service for interstate commerce. This subsection 
9is exempt from the provisions of Section 3-90.
10 (j) Beginning on January 1, 2002 and through June 30, 
112016, the use of tangible personal property purchased from an 
12Illinois retailer by a taxpayer engaged in centralized 
13purchasing activities in Illinois who will, upon receipt of 
14the property in Illinois, temporarily store the property in 
15Illinois (i) for the purpose of subsequently transporting it 
16outside this State for use or consumption thereafter solely 
17outside this State or (ii) for the purpose of being processed, 
18fabricated, or manufactured into, attached to, or incorporated 
19into other tangible personal property to be transported 
20outside this State and thereafter used or consumed solely 
21outside this State. The Director of Revenue shall, pursuant to 
22rules adopted in accordance with the Illinois Administrative 
23Procedure Act, issue a permit to any taxpayer in good standing 
24with the Department who is eligible for the exemption under 
25this subsection (j). The permit issued under this subsection 
26(j) shall authorize the holder, to the extent and in the manner 
 
 
10300HB4951sam002- 346 -LRB103 38094 HLH 74177 a


1specified in the rules adopted under this Act, to purchase 
2tangible personal property from a retailer exempt from the 
3taxes imposed by this Act. Taxpayers shall maintain all 
4necessary books and records to substantiate the use and 
5consumption of all such tangible personal property outside of 
6the State of Illinois.
7(Source: P.A. 100-321, eff. 8-24-17.)

8 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
9 Sec. 9. Except as to motor vehicles, watercraft, aircraft, 
10and trailers that are required to be registered with an agency 
11of this State, each retailer required or authorized to collect 
12the tax imposed by this Act shall pay to the Department the 
13amount of such tax (except as otherwise provided) at the time 
14when he is required to file his return for the period during 
15which such tax was collected, less a discount of 2.1% prior to 
16January 1, 1990, and 1.75% on and after January 1, 1990, or $5 
17per calendar year, whichever is greater, which is allowed to 
18reimburse the retailer for expenses incurred in collecting the 
19tax, keeping records, preparing and filing returns, remitting 
20the tax and supplying data to the Department on request. When 
21determining the discount allowed under this Section, retailers 
22shall include the amount of tax that would have been due at the 
236.25% rate but for the 1.25% rate imposed on sales tax holiday 
24items under Public Act 102-700. The discount under this 
25Section is not allowed for the 1.25% portion of taxes paid on 
 
 
10300HB4951sam002- 347 -LRB103 38094 HLH 74177 a


1aviation fuel that is subject to the revenue use requirements 
2of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining 
3the discount allowed under this Section, retailers shall 
4include the amount of tax that would have been due at the 1% 
5rate but for the 0% rate imposed under Public Act 102-700. In 
6the case of retailers who report and pay the tax on a 
7transaction by transaction basis, as provided in this Section, 
8such discount shall be taken with each such tax remittance 
9instead of when such retailer files his periodic return. The 
10discount allowed under this Section is allowed only for 
11returns that are filed in the manner required by this Act. The 
12Department may disallow the discount for retailers whose 
13certificate of registration is revoked at the time the return 
14is filed, but only if the Department's decision to revoke the 
15certificate of registration has become final. A retailer need 
16not remit that part of any tax collected by him to the extent 
17that he is required to remit and does remit the tax imposed by 
18the Retailers' Occupation Tax Act, with respect to the sale of 
19the same property.
20 Where such tangible personal property is sold under a 
21conditional sales contract, or under any other form of sale 
22wherein the payment of the principal sum, or a part thereof, is 
23extended beyond the close of the period for which the return is 
24filed, the retailer, in collecting the tax (except as to motor 
25vehicles, watercraft, aircraft, and trailers that are required 
26to be registered with an agency of this State), may collect for 
 
 
10300HB4951sam002- 348 -LRB103 38094 HLH 74177 a


1each tax return period, only the tax applicable to that part of 
2the selling price actually received during such tax return 
3period.
4 In the case of leases, except as otherwise provided in 
5this Act, the lessor, in collecting the tax, may collect for 
6each tax return period, only the tax applicable to that part of 
7the selling price actually received during such tax return 
8period. 
9 Except as provided in this Section, on or before the 
10twentieth day of each calendar month, such retailer shall file 
11a return for the preceding calendar month. Such return shall 
12be filed on forms prescribed by the Department and shall 
13furnish such information as the Department may reasonably 
14require. The return shall include the gross receipts on food 
15for human consumption that is to be consumed off the premises 
16where it is sold (other than alcoholic beverages, food 
17consisting of or infused with adult use cannabis, soft drinks, 
18and food that has been prepared for immediate consumption) 
19which were received during the preceding calendar month, 
20quarter, or year, as appropriate, and upon which tax would 
21have been due but for the 0% rate imposed under Public Act 
22102-700. The return shall also include the amount of tax that 
23would have been due on food for human consumption that is to be 
24consumed off the premises where it is sold (other than 
25alcoholic beverages, food consisting of or infused with adult 
26use cannabis, soft drinks, and food that has been prepared for 
 
 
10300HB4951sam002- 349 -LRB103 38094 HLH 74177 a


1immediate consumption) but for the 0% rate imposed under 
2Public Act 102-700.
3 On and after January 1, 2018, except for returns required 
4to be filed prior to January 1, 2023 for motor vehicles, 
5watercraft, aircraft, and trailers that are required to be 
6registered with an agency of this State, with respect to 
7retailers whose annual gross receipts average $20,000 or more, 
8all returns required to be filed pursuant to this Act shall be 
9filed electronically. On and after January 1, 2023, with 
10respect to retailers whose annual gross receipts average 
11$20,000 or more, all returns required to be filed pursuant to 
12this Act, including, but not limited to, returns for motor 
13vehicles, watercraft, aircraft, and trailers that are required 
14to be registered with an agency of this State, shall be filed 
15electronically. Retailers who demonstrate that they do not 
16have access to the Internet or demonstrate hardship in filing 
17electronically may petition the Department to waive the 
18electronic filing requirement.
19 The Department may require returns to be filed on a 
20quarterly basis. If so required, a return for each calendar 
21quarter shall be filed on or before the twentieth day of the 
22calendar month following the end of such calendar quarter. The 
23taxpayer shall also file a return with the Department for each 
24of the first two months of each calendar quarter, on or before 
25the twentieth day of the following calendar month, stating:
26  1. The name of the seller;
 
 
10300HB4951sam002- 350 -LRB103 38094 HLH 74177 a


1  2. The address of the principal place of business from 
2 which he engages in the business of selling tangible 
3 personal property at retail in this State;
4  3. The total amount of taxable receipts received by 
5 him during the preceding calendar month from sales of 
6 tangible personal property by him during such preceding 
7 calendar month, including receipts from charge and time 
8 sales, but less all deductions allowed by law;
9  4. The amount of credit provided in Section 2d of this 
10 Act;
11  5. The amount of tax due;
12  5-5. The signature of the taxpayer; and
13  6. Such other reasonable information as the Department 
14 may require.
15 Each retailer required or authorized to collect the tax 
16imposed by this Act on aviation fuel sold at retail in this 
17State during the preceding calendar month shall, instead of 
18reporting and paying tax on aviation fuel as otherwise 
19required by this Section, report and pay such tax on a separate 
20aviation fuel tax return. The requirements related to the 
21return shall be as otherwise provided in this Section. 
22Notwithstanding any other provisions of this Act to the 
23contrary, retailers collecting tax on aviation fuel shall file 
24all aviation fuel tax returns and shall make all aviation fuel 
25tax payments by electronic means in the manner and form 
26required by the Department. For purposes of this Section, 
 
 
10300HB4951sam002- 351 -LRB103 38094 HLH 74177 a


1"aviation fuel" means jet fuel and aviation gasoline. 
2 If a taxpayer fails to sign a return within 30 days after 
3the proper notice and demand for signature by the Department, 
4the return shall be considered valid and any amount shown to be 
5due on the return shall be deemed assessed.
6 Notwithstanding any other provision of this Act to the 
7contrary, retailers subject to tax on cannabis shall file all 
8cannabis tax returns and shall make all cannabis tax payments 
9by electronic means in the manner and form required by the 
10Department.
11 Beginning October 1, 1993, a taxpayer who has an average 
12monthly tax liability of $150,000 or more shall make all 
13payments required by rules of the Department by electronic 
14funds transfer. Beginning October 1, 1994, a taxpayer who has 
15an average monthly tax liability of $100,000 or more shall 
16make all payments required by rules of the Department by 
17electronic funds transfer. Beginning October 1, 1995, a 
18taxpayer who has an average monthly tax liability of $50,000 
19or more shall make all payments required by rules of the 
20Department by electronic funds transfer. Beginning October 1, 
212000, a taxpayer who has an annual tax liability of $200,000 or 
22more shall make all payments required by rules of the 
23Department by electronic funds transfer. The term "annual tax 
24liability" shall be the sum of the taxpayer's liabilities 
25under this Act, and under all other State and local occupation 
26and use tax laws administered by the Department, for the 
 
 
10300HB4951sam002- 352 -LRB103 38094 HLH 74177 a


1immediately preceding calendar year. The term "average monthly 
2tax liability" means the sum of the taxpayer's liabilities 
3under this Act, and under all other State and local occupation 
4and use tax laws administered by the Department, for the 
5immediately preceding calendar year divided by 12. Beginning 
6on October 1, 2002, a taxpayer who has a tax liability in the 
7amount set forth in subsection (b) of Section 2505-210 of the 
8Department of Revenue Law shall make all payments required by 
9rules of the Department by electronic funds transfer.
10 Before August 1 of each year beginning in 1993, the 
11Department shall notify all taxpayers required to make 
12payments by electronic funds transfer. All taxpayers required 
13to make payments by electronic funds transfer shall make those 
14payments for a minimum of one year beginning on October 1.
15 Any taxpayer not required to make payments by electronic 
16funds transfer may make payments by electronic funds transfer 
17with the permission of the Department.
18 All taxpayers required to make payment by electronic funds 
19transfer and any taxpayers authorized to voluntarily make 
20payments by electronic funds transfer shall make those 
21payments in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to 
23effectuate a program of electronic funds transfer and the 
24requirements of this Section.
25 Before October 1, 2000, if the taxpayer's average monthly 
26tax liability to the Department under this Act, the Retailers' 
 
 
10300HB4951sam002- 353 -LRB103 38094 HLH 74177 a


1Occupation Tax Act, the Service Occupation Tax Act, the 
2Service Use Tax Act was $10,000 or more during the preceding 4 
3complete calendar quarters, he shall file a return with the 
4Department each month by the 20th day of the month next 
5following the month during which such tax liability is 
6incurred and shall make payments to the Department on or 
7before the 7th, 15th, 22nd and last day of the month during 
8which such liability is incurred. On and after October 1, 
92000, if the taxpayer's average monthly tax liability to the 
10Department under this Act, the Retailers' Occupation Tax Act, 
11the Service Occupation Tax Act, and the Service Use Tax Act was 
12$20,000 or more during the preceding 4 complete calendar 
13quarters, he shall file a return with the Department each 
14month by the 20th day of the month next following the month 
15during which such tax liability is incurred and shall make 
16payment to the Department on or before the 7th, 15th, 22nd and 
17last day of the month during which such liability is incurred. 
18If the month during which such tax liability is incurred began 
19prior to January 1, 1985, each payment shall be in an amount 
20equal to 1/4 of the taxpayer's actual liability for the month 
21or an amount set by the Department not to exceed 1/4 of the 
22average monthly liability of the taxpayer to the Department 
23for the preceding 4 complete calendar quarters (excluding the 
24month of highest liability and the month of lowest liability 
25in such 4 quarter period). If the month during which such tax 
26liability is incurred begins on or after January 1, 1985, and 
 
 
10300HB4951sam002- 354 -LRB103 38094 HLH 74177 a


1prior to January 1, 1987, each payment shall be in an amount 
2equal to 22.5% of the taxpayer's actual liability for the 
3month or 27.5% of the taxpayer's liability for the same 
4calendar month of the preceding year. If the month during 
5which such tax liability is incurred begins on or after 
6January 1, 1987, and prior to January 1, 1988, each payment 
7shall be in an amount equal to 22.5% of the taxpayer's actual 
8liability for the month or 26.25% of the taxpayer's liability 
9for the same calendar month of the preceding year. If the month 
10during which such tax liability is incurred begins on or after 
11January 1, 1988, and prior to January 1, 1989, or begins on or 
12after January 1, 1996, each payment shall be in an amount equal 
13to 22.5% of the taxpayer's actual liability for the month or 
1425% of the taxpayer's liability for the same calendar month of 
15the preceding year. If the month during which such tax 
16liability is incurred begins on or after January 1, 1989, and 
17prior to January 1, 1996, each payment shall be in an amount 
18equal to 22.5% of the taxpayer's actual liability for the 
19month or 25% of the taxpayer's liability for the same calendar 
20month of the preceding year or 100% of the taxpayer's actual 
21liability for the quarter monthly reporting period. The amount 
22of such quarter monthly payments shall be credited against the 
23final tax liability of the taxpayer's return for that month. 
24Before October 1, 2000, once applicable, the requirement of 
25the making of quarter monthly payments to the Department shall 
26continue until such taxpayer's average monthly liability to 
 
 
10300HB4951sam002- 355 -LRB103 38094 HLH 74177 a


1the Department during the preceding 4 complete calendar 
2quarters (excluding the month of highest liability and the 
3month of lowest liability) is less than $9,000, or until such 
4taxpayer's average monthly liability to the Department as 
5computed for each calendar quarter of the 4 preceding complete 
6calendar quarter period is less than $10,000. However, if a 
7taxpayer can show the Department that a substantial change in 
8the taxpayer's business has occurred which causes the taxpayer 
9to anticipate that his average monthly tax liability for the 
10reasonably foreseeable future will fall below the $10,000 
11threshold stated above, then such taxpayer may petition the 
12Department for change in such taxpayer's reporting status. On 
13and after October 1, 2000, once applicable, the requirement of 
14the making of quarter monthly payments to the Department shall 
15continue until such taxpayer's average monthly liability to 
16the Department during the preceding 4 complete calendar 
17quarters (excluding the month of highest liability and the 
18month of lowest liability) is less than $19,000 or until such 
19taxpayer's average monthly liability to the Department as 
20computed for each calendar quarter of the 4 preceding complete 
21calendar quarter period is less than $20,000. However, if a 
22taxpayer can show the Department that a substantial change in 
23the taxpayer's business has occurred which causes the taxpayer 
24to anticipate that his average monthly tax liability for the 
25reasonably foreseeable future will fall below the $20,000 
26threshold stated above, then such taxpayer may petition the 
 
 
10300HB4951sam002- 356 -LRB103 38094 HLH 74177 a


1Department for a change in such taxpayer's reporting status. 
2The Department shall change such taxpayer's reporting status 
3unless it finds that such change is seasonal in nature and not 
4likely to be long term. Quarter monthly payment status shall 
5be determined under this paragraph as if the rate reduction to 
61.25% in Public Act 102-700 on sales tax holiday items had not 
7occurred. For quarter monthly payments due on or after July 1, 
82023 and through June 30, 2024, "25% of the taxpayer's 
9liability for the same calendar month of the preceding year" 
10shall be determined as if the rate reduction to 1.25% in Public 
11Act 102-700 on sales tax holiday items had not occurred. 
12Quarter monthly payment status shall be determined under this 
13paragraph as if the rate reduction to 0% in Public Act 102-700 
14on food for human consumption that is to be consumed off the 
15premises where it is sold (other than alcoholic beverages, 
16food consisting of or infused with adult use cannabis, soft 
17drinks, and food that has been prepared for immediate 
18consumption) had not occurred. For quarter monthly payments 
19due under this paragraph on or after July 1, 2023 and through 
20June 30, 2024, "25% of the taxpayer's liability for the same 
21calendar month of the preceding year" shall be determined as 
22if the rate reduction to 0% in Public Act 102-700 had not 
23occurred. If any such quarter monthly payment is not paid at 
24the time or in the amount required by this Section, then the 
25taxpayer shall be liable for penalties and interest on the 
26difference between the minimum amount due and the amount of 
 
 
10300HB4951sam002- 357 -LRB103 38094 HLH 74177 a


1such quarter monthly payment actually and timely paid, except 
2insofar as the taxpayer has previously made payments for that 
3month to the Department in excess of the minimum payments 
4previously due as provided in this Section. The Department 
5shall make reasonable rules and regulations to govern the 
6quarter monthly payment amount and quarter monthly payment 
7dates for taxpayers who file on other than a calendar monthly 
8basis.
9 If any such payment provided for in this Section exceeds 
10the taxpayer's liabilities under this Act, the Retailers' 
11Occupation Tax Act, the Service Occupation Tax Act and the 
12Service Use Tax Act, as shown by an original monthly return, 
13the Department shall issue to the taxpayer a credit memorandum 
14no later than 30 days after the date of payment, which 
15memorandum may be submitted by the taxpayer to the Department 
16in payment of tax liability subsequently to be remitted by the 
17taxpayer to the Department or be assigned by the taxpayer to a 
18similar taxpayer under this Act, the Retailers' Occupation Tax 
19Act, the Service Occupation Tax Act or the Service Use Tax Act, 
20in accordance with reasonable rules and regulations to be 
21prescribed by the Department, except that if such excess 
22payment is shown on an original monthly return and is made 
23after December 31, 1986, no credit memorandum shall be issued, 
24unless requested by the taxpayer. If no such request is made, 
25the taxpayer may credit such excess payment against tax 
26liability subsequently to be remitted by the taxpayer to the 
 
 
10300HB4951sam002- 358 -LRB103 38094 HLH 74177 a


1Department under this Act, the Retailers' Occupation Tax Act, 
2the Service Occupation Tax Act or the Service Use Tax Act, in 
3accordance with reasonable rules and regulations prescribed by 
4the Department. If the Department subsequently determines that 
5all or any part of the credit taken was not actually due to the 
6taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall 
7be reduced by 2.1% or 1.75% of the difference between the 
8credit taken and that actually due, and the taxpayer shall be 
9liable for penalties and interest on such difference.
10 If the retailer is otherwise required to file a monthly 
11return and if the retailer's average monthly tax liability to 
12the Department does not exceed $200, the Department may 
13authorize his returns to be filed on a quarter annual basis, 
14with the return for January, February, and March of a given 
15year being due by April 20 of such year; with the return for 
16April, May and June of a given year being due by July 20 of 
17such year; with the return for July, August and September of a 
18given year being due by October 20 of such year, and with the 
19return for October, November and December of a given year 
20being due by January 20 of the following year.
21 If the retailer is otherwise required to file a monthly or 
22quarterly return and if the retailer's average monthly tax 
23liability to the Department does not exceed $50, the 
24Department may authorize his returns to be filed on an annual 
25basis, with the return for a given year being due by January 20 
26of the following year.
 
 
10300HB4951sam002- 359 -LRB103 38094 HLH 74177 a


1 Such quarter annual and annual returns, as to form and 
2substance, shall be subject to the same requirements as 
3monthly returns.
4 Notwithstanding any other provision in this Act concerning 
5the time within which a retailer may file his return, in the 
6case of any retailer who ceases to engage in a kind of business 
7which makes him responsible for filing returns under this Act, 
8such retailer shall file a final return under this Act with the 
9Department not more than one month after discontinuing such 
10business.
11 In addition, with respect to motor vehicles, watercraft, 
12aircraft, and trailers that are required to be registered with 
13an agency of this State, except as otherwise provided in this 
14Section, every retailer selling this kind of tangible personal 
15property shall file, with the Department, upon a form to be 
16prescribed and supplied by the Department, a separate return 
17for each such item of tangible personal property which the 
18retailer sells, except that if, in the same transaction, (i) a 
19retailer of aircraft, watercraft, motor vehicles or trailers 
20transfers more than one aircraft, watercraft, motor vehicle or 
21trailer to another aircraft, watercraft, motor vehicle or 
22trailer retailer for the purpose of resale or (ii) a retailer 
23of aircraft, watercraft, motor vehicles, or trailers transfers 
24more than one aircraft, watercraft, motor vehicle, or trailer 
25to a purchaser for use as a qualifying rolling stock as 
26provided in Section 3-55 of this Act, then that seller may 
 
 
10300HB4951sam002- 360 -LRB103 38094 HLH 74177 a


1report the transfer of all the aircraft, watercraft, motor 
2vehicles or trailers involved in that transaction to the 
3Department on the same uniform invoice-transaction reporting 
4return form. For purposes of this Section, "watercraft" means 
5a Class 2, Class 3, or Class 4 watercraft as defined in Section 
63-2 of the Boat Registration and Safety Act, a personal 
7watercraft, or any boat equipped with an inboard motor.
8 In addition, with respect to motor vehicles, watercraft, 
9aircraft, and trailers that are required to be registered with 
10an agency of this State, every person who is engaged in the 
11business of leasing or renting such items and who, in 
12connection with such business, sells any such item to a 
13retailer for the purpose of resale is, notwithstanding any 
14other provision of this Section to the contrary, authorized to 
15meet the return-filing requirement of this Act by reporting 
16the transfer of all the aircraft, watercraft, motor vehicles, 
17or trailers transferred for resale during a month to the 
18Department on the same uniform invoice-transaction reporting 
19return form on or before the 20th of the month following the 
20month in which the transfer takes place. Notwithstanding any 
21other provision of this Act to the contrary, all returns filed 
22under this paragraph must be filed by electronic means in the 
23manner and form as required by the Department. 
24 The transaction reporting return in the case of motor 
25vehicles or trailers that are required to be registered with 
26an agency of this State, shall be the same document as the 
 
 
10300HB4951sam002- 361 -LRB103 38094 HLH 74177 a


1Uniform Invoice referred to in Section 5-402 of the Illinois 
2Vehicle Code and must show the name and address of the seller; 
3the name and address of the purchaser; the amount of the 
4selling price including the amount allowed by the retailer for 
5traded-in property, if any; the amount allowed by the retailer 
6for the traded-in tangible personal property, if any, to the 
7extent to which Section 2 of this Act allows an exemption for 
8the value of traded-in property; the balance payable after 
9deducting such trade-in allowance from the total selling 
10price; the amount of tax due from the retailer with respect to 
11such transaction; the amount of tax collected from the 
12purchaser by the retailer on such transaction (or satisfactory 
13evidence that such tax is not due in that particular instance, 
14if that is claimed to be the fact); the place and date of the 
15sale; a sufficient identification of the property sold; such 
16other information as is required in Section 5-402 of the 
17Illinois Vehicle Code, and such other information as the 
18Department may reasonably require.
19 The transaction reporting return in the case of watercraft 
20and aircraft must show the name and address of the seller; the 
21name and address of the purchaser; the amount of the selling 
22price including the amount allowed by the retailer for 
23traded-in property, if any; the amount allowed by the retailer 
24for the traded-in tangible personal property, if any, to the 
25extent to which Section 2 of this Act allows an exemption for 
26the value of traded-in property; the balance payable after 
 
 
10300HB4951sam002- 362 -LRB103 38094 HLH 74177 a


1deducting such trade-in allowance from the total selling 
2price; the amount of tax due from the retailer with respect to 
3such transaction; the amount of tax collected from the 
4purchaser by the retailer on such transaction (or satisfactory 
5evidence that such tax is not due in that particular instance, 
6if that is claimed to be the fact); the place and date of the 
7sale, a sufficient identification of the property sold, and 
8such other information as the Department may reasonably 
9require.
10 Such transaction reporting return shall be filed not later 
11than 20 days after the date of delivery of the item that is 
12being sold, but may be filed by the retailer at any time sooner 
13than that if he chooses to do so. The transaction reporting 
14return and tax remittance or proof of exemption from the tax 
15that is imposed by this Act may be transmitted to the 
16Department by way of the State agency with which, or State 
17officer with whom, the tangible personal property must be 
18titled or registered (if titling or registration is required) 
19if the Department and such agency or State officer determine 
20that this procedure will expedite the processing of 
21applications for title or registration.
22 With each such transaction reporting return, the retailer 
23shall remit the proper amount of tax due (or shall submit 
24satisfactory evidence that the sale is not taxable if that is 
25the case), to the Department or its agents, whereupon the 
26Department shall issue, in the purchaser's name, a tax receipt 
 
 
10300HB4951sam002- 363 -LRB103 38094 HLH 74177 a


1(or a certificate of exemption if the Department is satisfied 
2that the particular sale is tax exempt) which such purchaser 
3may submit to the agency with which, or State officer with 
4whom, he must title or register the tangible personal property 
5that is involved (if titling or registration is required) in 
6support of such purchaser's application for an Illinois 
7certificate or other evidence of title or registration to such 
8tangible personal property.
9 No retailer's failure or refusal to remit tax under this 
10Act precludes a user, who has paid the proper tax to the 
11retailer, from obtaining his certificate of title or other 
12evidence of title or registration (if titling or registration 
13is required) upon satisfying the Department that such user has 
14paid the proper tax (if tax is due) to the retailer. The 
15Department shall adopt appropriate rules to carry out the 
16mandate of this paragraph.
17 If the user who would otherwise pay tax to the retailer 
18wants the transaction reporting return filed and the payment 
19of tax or proof of exemption made to the Department before the 
20retailer is willing to take these actions and such user has not 
21paid the tax to the retailer, such user may certify to the fact 
22of such delay by the retailer, and may (upon the Department 
23being satisfied of the truth of such certification) transmit 
24the information required by the transaction reporting return 
25and the remittance for tax or proof of exemption directly to 
26the Department and obtain his tax receipt or exemption 
 
 
10300HB4951sam002- 364 -LRB103 38094 HLH 74177 a


1determination, in which event the transaction reporting return 
2and tax remittance (if a tax payment was required) shall be 
3credited by the Department to the proper retailer's account 
4with the Department, but without the 2.1% or 1.75% discount 
5provided for in this Section being allowed. When the user pays 
6the tax directly to the Department, he shall pay the tax in the 
7same amount and in the same form in which it would be remitted 
8if the tax had been remitted to the Department by the retailer.
9 Where a retailer collects the tax with respect to the 
10selling price of tangible personal property which he sells and 
11the purchaser thereafter returns such tangible personal 
12property and the retailer refunds the selling price thereof to 
13the purchaser, such retailer shall also refund, to the 
14purchaser, the tax so collected from the purchaser. When 
15filing his return for the period in which he refunds such tax 
16to the purchaser, the retailer may deduct the amount of the tax 
17so refunded by him to the purchaser from any other use tax 
18which such retailer may be required to pay or remit to the 
19Department, as shown by such return, if the amount of the tax 
20to be deducted was previously remitted to the Department by 
21such retailer. If the retailer has not previously remitted the 
22amount of such tax to the Department, he is entitled to no 
23deduction under this Act upon refunding such tax to the 
24purchaser.
25 Any retailer filing a return under this Section shall also 
26include (for the purpose of paying tax thereon) the total tax 
 
 
10300HB4951sam002- 365 -LRB103 38094 HLH 74177 a


1covered by such return upon the selling price of tangible 
2personal property purchased by him at retail from a retailer, 
3but as to which the tax imposed by this Act was not collected 
4from the retailer filing such return, and such retailer shall 
5remit the amount of such tax to the Department when filing such 
6return.
7 If experience indicates such action to be practicable, the 
8Department may prescribe and furnish a combination or joint 
9return which will enable retailers, who are required to file 
10returns hereunder and also under the Retailers' Occupation Tax 
11Act, to furnish all the return information required by both 
12Acts on the one form.
13 Where the retailer has more than one business registered 
14with the Department under separate registration under this 
15Act, such retailer may not file each return that is due as a 
16single return covering all such registered businesses, but 
17shall file separate returns for each such registered business.
18 Beginning January 1, 1990, each month the Department shall 
19pay into the State and Local Sales Tax Reform Fund, a special 
20fund in the State Treasury which is hereby created, the net 
21revenue realized for the preceding month from the 1% tax 
22imposed under this Act.
23 Beginning January 1, 1990, each month the Department shall 
24pay into the County and Mass Transit District Fund 4% of the 
25net revenue realized for the preceding month from the 6.25% 
26general rate on the selling price of tangible personal 
 
 
10300HB4951sam002- 366 -LRB103 38094 HLH 74177 a


1property which is purchased outside Illinois at retail from a 
2retailer and which is titled or registered by an agency of this 
3State's government.
4 Beginning January 1, 1990, each month the Department shall 
5pay into the State and Local Sales Tax Reform Fund, a special 
6fund in the State Treasury, 20% of the net revenue realized for 
7the preceding month from the 6.25% general rate on the selling 
8price of tangible personal property, other than (i) tangible 
9personal property which is purchased outside Illinois at 
10retail from a retailer and which is titled or registered by an 
11agency of this State's government and (ii) aviation fuel sold 
12on or after December 1, 2019. This exception for aviation fuel 
13only applies for so long as the revenue use requirements of 49 
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
15 For aviation fuel sold on or after December 1, 2019, each 
16month the Department shall pay into the State Aviation Program 
17Fund 20% of the net revenue realized for the preceding month 
18from the 6.25% general rate on the selling price of aviation 
19fuel, less an amount estimated by the Department to be 
20required for refunds of the 20% portion of the tax on aviation 
21fuel under this Act, which amount shall be deposited into the 
22Aviation Fuel Sales Tax Refund Fund. The Department shall only 
23pay moneys into the State Aviation Program Fund and the 
24Aviation Fuels Sales Tax Refund Fund under this Act for so long 
25as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
26U.S.C. 47133 are binding on the State. 
 
 
10300HB4951sam002- 367 -LRB103 38094 HLH 74177 a


1 Beginning August 1, 2000, each month the Department shall 
2pay into the State and Local Sales Tax Reform Fund 100% of the 
3net revenue realized for the preceding month from the 1.25% 
4rate on the selling price of motor fuel and gasohol. If, in any 
5month, the tax on sales tax holiday items, as defined in 
6Section 3-6, is imposed at the rate of 1.25%, then the 
7Department shall pay 100% of the net revenue realized for that 
8month from the 1.25% rate on the selling price of sales tax 
9holiday items into the State and Local Sales Tax Reform Fund.
10 Beginning January 1, 1990, each month the Department shall 
11pay into the Local Government Tax Fund 16% of the net revenue 
12realized for the preceding month from the 6.25% general rate 
13on the selling price of tangible personal property which is 
14purchased outside Illinois at retail from a retailer and which 
15is titled or registered by an agency of this State's 
16government.
17 Beginning October 1, 2009, each month the Department shall 
18pay into the Capital Projects Fund an amount that is equal to 
19an amount estimated by the Department to represent 80% of the 
20net revenue realized for the preceding month from the sale of 
21candy, grooming and hygiene products, and soft drinks that had 
22been taxed at a rate of 1% prior to September 1, 2009 but that 
23are now taxed at 6.25%. 
24 Beginning July 1, 2011, each month the Department shall 
25pay into the Clean Air Act Permit Fund 80% of the net revenue 
26realized for the preceding month from the 6.25% general rate 
 
 
10300HB4951sam002- 368 -LRB103 38094 HLH 74177 a


1on the selling price of sorbents used in Illinois in the 
2process of sorbent injection as used to comply with the 
3Environmental Protection Act or the federal Clean Air Act, but 
4the total payment into the Clean Air Act Permit Fund under this 
5Act and the Retailers' Occupation Tax Act shall not exceed 
6$2,000,000 in any fiscal year. 
7 Beginning July 1, 2013, each month the Department shall 
8pay into the Underground Storage Tank Fund from the proceeds 
9collected under this Act, the Service Use Tax Act, the Service 
10Occupation Tax Act, and the Retailers' Occupation Tax Act an 
11amount equal to the average monthly deficit in the Underground 
12Storage Tank Fund during the prior year, as certified annually 
13by the Illinois Environmental Protection Agency, but the total 
14payment into the Underground Storage Tank Fund under this Act, 
15the Service Use Tax Act, the Service Occupation Tax Act, and 
16the Retailers' Occupation Tax Act shall not exceed $18,000,000 
17in any State fiscal year. As used in this paragraph, the 
18"average monthly deficit" shall be equal to the difference 
19between the average monthly claims for payment by the fund and 
20the average monthly revenues deposited into the fund, 
21excluding payments made pursuant to this paragraph. 
22 Beginning July 1, 2015, of the remainder of the moneys 
23received by the Department under this Act, the Service Use Tax 
24Act, the Service Occupation Tax Act, and the Retailers' 
25Occupation Tax Act, each month the Department shall deposit 
26$500,000 into the State Crime Laboratory Fund. 
 
 
10300HB4951sam002- 369 -LRB103 38094 HLH 74177 a


1 Of the remainder of the moneys received by the Department 
2pursuant to this Act, (a) 1.75% thereof shall be paid into the 
3Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
4and after July 1, 1989, 3.8% thereof shall be paid into the 
5Build Illinois Fund; provided, however, that if in any fiscal 
6year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
7may be, of the moneys received by the Department and required 
8to be paid into the Build Illinois Fund pursuant to Section 3 
9of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
10Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
11Service Occupation Tax Act, such Acts being hereinafter called 
12the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
13may be, of moneys being hereinafter called the "Tax Act 
14Amount", and (2) the amount transferred to the Build Illinois 
15Fund from the State and Local Sales Tax Reform Fund shall be 
16less than the Annual Specified Amount (as defined in Section 3 
17of the Retailers' Occupation Tax Act), an amount equal to the 
18difference shall be immediately paid into the Build Illinois 
19Fund from other moneys received by the Department pursuant to 
20the Tax Acts; and further provided, that if on the last 
21business day of any month the sum of (1) the Tax Act Amount 
22required to be deposited into the Build Illinois Bond Account 
23in the Build Illinois Fund during such month and (2) the amount 
24transferred during such month to the Build Illinois Fund from 
25the State and Local Sales Tax Reform Fund shall have been less 
26than 1/12 of the Annual Specified Amount, an amount equal to 
 
 
10300HB4951sam002- 370 -LRB103 38094 HLH 74177 a


1the difference shall be immediately paid into the Build 
2Illinois Fund from other moneys received by the Department 
3pursuant to the Tax Acts; and, further provided, that in no 
4event shall the payments required under the preceding proviso 
5result in aggregate payments into the Build Illinois Fund 
6pursuant to this clause (b) for any fiscal year in excess of 
7the greater of (i) the Tax Act Amount or (ii) the Annual 
8Specified Amount for such fiscal year; and, further provided, 
9that the amounts payable into the Build Illinois Fund under 
10this clause (b) shall be payable only until such time as the 
11aggregate amount on deposit under each trust indenture 
12securing Bonds issued and outstanding pursuant to the Build 
13Illinois Bond Act is sufficient, taking into account any 
14future investment income, to fully provide, in accordance with 
15such indenture, for the defeasance of or the payment of the 
16principal of, premium, if any, and interest on the Bonds 
17secured by such indenture and on any Bonds expected to be 
18issued thereafter and all fees and costs payable with respect 
19thereto, all as certified by the Director of the Bureau of the 
20Budget (now Governor's Office of Management and Budget). If on 
21the last business day of any month in which Bonds are 
22outstanding pursuant to the Build Illinois Bond Act, the 
23aggregate of the moneys deposited in the Build Illinois Bond 
24Account in the Build Illinois Fund in such month shall be less 
25than the amount required to be transferred in such month from 
26the Build Illinois Bond Account to the Build Illinois Bond 
 
 
10300HB4951sam002- 371 -LRB103 38094 HLH 74177 a


1Retirement and Interest Fund pursuant to Section 13 of the 
2Build Illinois Bond Act, an amount equal to such deficiency 
3shall be immediately paid from other moneys received by the 
4Department pursuant to the Tax Acts to the Build Illinois 
5Fund; provided, however, that any amounts paid to the Build 
6Illinois Fund in any fiscal year pursuant to this sentence 
7shall be deemed to constitute payments pursuant to clause (b) 
8of the preceding sentence and shall reduce the amount 
9otherwise payable for such fiscal year pursuant to clause (b) 
10of the preceding sentence. The moneys received by the 
11Department pursuant to this Act and required to be deposited 
12into the Build Illinois Fund are subject to the pledge, claim 
13and charge set forth in Section 12 of the Build Illinois Bond 
14Act.
15 Subject to payment of amounts into the Build Illinois Fund 
16as provided in the preceding paragraph or in any amendment 
17thereto hereafter enacted, the following specified monthly 
18installment of the amount requested in the certificate of the 
19Chairman of the Metropolitan Pier and Exposition Authority 
20provided under Section 8.25f of the State Finance Act, but not 
21in excess of the sums designated as "Total Deposit", shall be 
22deposited in the aggregate from collections under Section 9 of 
23the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
249 of the Service Occupation Tax Act, and Section 3 of the 
25Retailers' Occupation Tax Act into the McCormick Place 
26Expansion Project Fund in the specified fiscal years.
 
 
10300HB4951sam002- 372 -LRB103 38094 HLH 74177 a


1Fiscal YearTotal Deposit
21993         $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000
262017199,000,000
 
 
10300HB4951sam002- 373 -LRB103 38094 HLH 74177 a


       
12018210,000,000
22019221,000,000
32020233,000,000
42021300,000,000
52022300,000,000
62023300,000,000
72024 300,000,000
82025 300,000,000
92026 300,000,000
102027 375,000,000
112028 375,000,000
122029 375,000,000
132030 375,000,000
142031 375,000,000
152032 375,000,000
162033 375,000,000 
172034375,000,000
182035375,000,000
192036450,000,000
20and  
21each fiscal year
22thereafter that bonds
23are outstanding under
24Section 13.2 of the
25Metropolitan Pier and
26Exposition Authority Act,
 
 
10300HB4951sam002- 374 -LRB103 38094 HLH 74177 a


1but not after fiscal year 2060.
2 Beginning July 20, 1993 and in each month of each fiscal 
3year thereafter, one-eighth of the amount requested in the 
4certificate of the Chairman of the Metropolitan Pier and 
5Exposition Authority for that fiscal year, less the amount 
6deposited into the McCormick Place Expansion Project Fund by 
7the State Treasurer in the respective month under subsection 
8(g) of Section 13 of the Metropolitan Pier and Exposition 
9Authority Act, plus cumulative deficiencies in the deposits 
10required under this Section for previous months and years, 
11shall be deposited into the McCormick Place Expansion Project 
12Fund, until the full amount requested for the fiscal year, but 
13not in excess of the amount specified above as "Total 
14Deposit", has been deposited.
15 Subject to payment of amounts into the Capital Projects 
16Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
17and the McCormick Place Expansion Project Fund pursuant to the 
18preceding paragraphs or in any amendments thereto hereafter 
19enacted, for aviation fuel sold on or after December 1, 2019, 
20the Department shall each month deposit into the Aviation Fuel 
21Sales Tax Refund Fund an amount estimated by the Department to 
22be required for refunds of the 80% portion of the tax on 
23aviation fuel under this Act. The Department shall only 
24deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
25under this paragraph for so long as the revenue use 
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
 
 
10300HB4951sam002- 375 -LRB103 38094 HLH 74177 a


1binding on the State. 
2 Subject to payment of amounts into the Build Illinois Fund 
3and the McCormick Place Expansion Project Fund pursuant to the 
4preceding paragraphs or in any amendments thereto hereafter 
5enacted, beginning July 1, 1993 and ending on September 30, 
62013, the Department shall each month pay into the Illinois 
7Tax Increment Fund 0.27% of 80% of the net revenue realized for 
8the preceding month from the 6.25% general rate on the selling 
9price of tangible personal property.
10 Subject to payment of amounts into the Build Illinois 
11Fund, the McCormick Place Expansion Project Fund, the Illinois 
12Tax Increment Fund, and the Energy Infrastructure Fund 
13pursuant to the preceding paragraphs or in any amendments to 
14this Section hereafter enacted, beginning on the first day of 
15the first calendar month to occur on or after August 26, 2014 
16(the effective date of Public Act 98-1098), each month, from 
17the collections made under Section 9 of the Use Tax Act, 
18Section 9 of the Service Use Tax Act, Section 9 of the Service 
19Occupation Tax Act, and Section 3 of the Retailers' Occupation 
20Tax Act, the Department shall pay into the Tax Compliance and 
21Administration Fund, to be used, subject to appropriation, to 
22fund additional auditors and compliance personnel at the 
23Department of Revenue, an amount equal to 1/12 of 5% of 80% of 
24the cash receipts collected during the preceding fiscal year 
25by the Audit Bureau of the Department under the Use Tax Act, 
26the Service Use Tax Act, the Service Occupation Tax Act, the 
 
 
10300HB4951sam002- 376 -LRB103 38094 HLH 74177 a


1Retailers' Occupation Tax Act, and associated local occupation 
2and use taxes administered by the Department. 
3 Subject to payments of amounts into the Build Illinois 
4Fund, the McCormick Place Expansion Project Fund, the Illinois 
5Tax Increment Fund, and the Tax Compliance and Administration 
6Fund as provided in this Section, beginning on July 1, 2018 the 
7Department shall pay each month into the Downstate Public 
8Transportation Fund the moneys required to be so paid under 
9Section 2-3 of the Downstate Public Transportation Act.
10 Subject to successful execution and delivery of a 
11public-private agreement between the public agency and private 
12entity and completion of the civic build, beginning on July 1, 
132023, of the remainder of the moneys received by the 
14Department under the Use Tax Act, the Service Use Tax Act, the 
15Service Occupation Tax Act, and this Act, the Department shall 
16deposit the following specified deposits in the aggregate from 
17collections under the Use Tax Act, the Service Use Tax Act, the 
18Service Occupation Tax Act, and the Retailers' Occupation Tax 
19Act, as required under Section 8.25g of the State Finance Act 
20for distribution consistent with the Public-Private 
21Partnership for Civic and Transit Infrastructure Project Act. 
22The moneys received by the Department pursuant to this Act and 
23required to be deposited into the Civic and Transit 
24Infrastructure Fund are subject to the pledge, claim, and 
25charge set forth in Section 25-55 of the Public-Private 
26Partnership for Civic and Transit Infrastructure Project Act. 
 
 
10300HB4951sam002- 377 -LRB103 38094 HLH 74177 a


1As used in this paragraph, "civic build", "private entity", 
2"public-private agreement", and "public agency" have the 
3meanings provided in Section 25-10 of the Public-Private 
4Partnership for Civic and Transit Infrastructure Project Act. 
5  Fiscal Year............................Total Deposit 
6  2024....................................$200,000,000 
7  2025....................................$206,000,000 
8  2026....................................$212,200,000 
9  2027....................................$218,500,000 
10  2028....................................$225,100,000 
11  2029....................................$288,700,000 
12  2030....................................$298,900,000 
13  2031....................................$309,300,000 
14  2032....................................$320,100,000 
15  2033....................................$331,200,000 
16  2034....................................$341,200,000 
17  2035....................................$351,400,000 
18  2036....................................$361,900,000 
19  2037....................................$372,800,000 
20  2038....................................$384,000,000 
21  2039....................................$395,500,000 
22  2040....................................$407,400,000 
23  2041....................................$419,600,000 
24  2042....................................$432,200,000 
25  2043....................................$445,100,000 
26 Beginning July 1, 2021 and until July 1, 2022, subject to 
 
 
10300HB4951sam002- 378 -LRB103 38094 HLH 74177 a


1the payment of amounts into the State and Local Sales Tax 
2Reform Fund, the Build Illinois Fund, the McCormick Place 
3Expansion Project Fund, the Illinois Tax Increment Fund, and 
4the Tax Compliance and Administration Fund as provided in this 
5Section, the Department shall pay each month into the Road 
6Fund the amount estimated to represent 16% of the net revenue 
7realized from the taxes imposed on motor fuel and gasohol. 
8Beginning July 1, 2022 and until July 1, 2023, subject to the 
9payment of amounts into the State and Local Sales Tax Reform 
10Fund, the Build Illinois Fund, the McCormick Place Expansion 
11Project Fund, the Illinois Tax Increment Fund, and the Tax 
12Compliance and Administration Fund as provided in this 
13Section, the Department shall pay each month into the Road 
14Fund the amount estimated to represent 32% of the net revenue 
15realized from the taxes imposed on motor fuel and gasohol. 
16Beginning July 1, 2023 and until July 1, 2024, subject to the 
17payment of amounts into the State and Local Sales Tax Reform 
18Fund, the Build Illinois Fund, the McCormick Place Expansion 
19Project Fund, the Illinois Tax Increment Fund, and the Tax 
20Compliance and Administration Fund as provided in this 
21Section, the Department shall pay each month into the Road 
22Fund the amount estimated to represent 48% of the net revenue 
23realized from the taxes imposed on motor fuel and gasohol. 
24Beginning July 1, 2024 and until July 1, 2025, subject to the 
25payment of amounts into the State and Local Sales Tax Reform 
26Fund, the Build Illinois Fund, the McCormick Place Expansion 
 
 
10300HB4951sam002- 379 -LRB103 38094 HLH 74177 a


1Project Fund, the Illinois Tax Increment Fund, and the Tax 
2Compliance and Administration Fund as provided in this 
3Section, the Department shall pay each month into the Road 
4Fund the amount estimated to represent 64% of the net revenue 
5realized from the taxes imposed on motor fuel and gasohol. 
6Beginning on July 1, 2025, subject to the payment of amounts 
7into the State and Local Sales Tax Reform Fund, the Build 
8Illinois Fund, the McCormick Place Expansion Project Fund, the 
9Illinois Tax Increment Fund, and the Tax Compliance and 
10Administration Fund as provided in this Section, the 
11Department shall pay each month into the Road Fund the amount 
12estimated to represent 80% of the net revenue realized from 
13the taxes imposed on motor fuel and gasohol. As used in this 
14paragraph "motor fuel" has the meaning given to that term in 
15Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
16meaning given to that term in Section 3-40 of this Act.
17 Of the remainder of the moneys received by the Department 
18pursuant to this Act, 75% thereof shall be paid into the State 
19Treasury and 25% shall be reserved in a special account and 
20used only for the transfer to the Common School Fund as part of 
21the monthly transfer from the General Revenue Fund in 
22accordance with Section 8a of the State Finance Act.
23 As soon as possible after the first day of each month, upon 
24certification of the Department of Revenue, the Comptroller 
25shall order transferred and the Treasurer shall transfer from 
26the General Revenue Fund to the Motor Fuel Tax Fund an amount 
 
 
10300HB4951sam002- 380 -LRB103 38094 HLH 74177 a


1equal to 1.7% of 80% of the net revenue realized under this Act 
2for the second preceding month. Beginning April 1, 2000, this 
3transfer is no longer required and shall not be made.
4 Net revenue realized for a month shall be the revenue 
5collected by the State pursuant to this Act, less the amount 
6paid out during that month as refunds to taxpayers for 
7overpayment of liability.
8 For greater simplicity of administration, manufacturers, 
9importers and wholesalers whose products are sold at retail in 
10Illinois by numerous retailers, and who wish to do so, may 
11assume the responsibility for accounting and paying to the 
12Department all tax accruing under this Act with respect to 
13such sales, if the retailers who are affected do not make 
14written objection to the Department to this arrangement.
15(Source: P.A. 102-700, Article 60, Section 60-15, eff. 
164-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; 
17102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. 
187-28-23.)

19 Section 75-10. The Service Use Tax Act is amended by 
20changing Sections 2, 3, 3-5, 3-10, and 9 and by adding Section 
211.05 as follows:

22 (35 ILCS 110/1.05 new)
23 Sec. 1.05. Legislative intent; leases. It is the intent of 
24the General Assembly in enacting this amendatory Act of the 
 
 
10300HB4951sam002- 381 -LRB103 38094 HLH 74177 a


1103rd General Assembly to apply the tax imposed under this 
2Act, except as otherwise provided in this Act, to the 
3privilege of using tangible personal property, other than 
4motor vehicles, watercraft, aircraft, and semitrailers, as 
5defined in Section 1-187 of the Illinois Vehicle Code, that 
6are required to be registered with an agency of this State, 
7transferred by lease, as an incident of a purchase of service, 
8for leases in effect, entered into, or renewed on or after 
9January 1, 2025.

10 (35 ILCS 110/2) (from Ch. 120, par. 439.32)
11 Sec. 2. Definitions.  In this Act: 
12 "Use" means the exercise by any person of any right or 
13power over tangible personal property incident to the 
14ownership of that property, or, on and after January 1, 2025, 
15incident to the possession or control of, the right to possess 
16or control, or a license to use that property through a lease, 
17but does not include the sale or use for demonstration by him 
18of that property in any form as tangible personal property in 
19the regular course of business. "Use" does not mean the 
20interim use of tangible personal property. On and after 
21January 1, 2025, the lease of tangible personal property to a 
22lessee by a serviceman who is subject to tax on lease receipts 
23under this amendatory Act of the 103rd General Assembly does 
24not qualify as demonstration use or interim use of that 
25property. "Use" does not mean nor the physical incorporation 
 
 
10300HB4951sam002- 382 -LRB103 38094 HLH 74177 a


1of tangible personal property, as an ingredient or 
2constituent, into other tangible personal property, (a) which 
3is sold in the regular course of business or (b) which the 
4person incorporating such ingredient or constituent therein 
5has undertaken at the time of such purchase to cause to be 
6transported in interstate commerce to destinations outside the 
7State of Illinois.
8 "Lease" means a transfer of the possession or control of, 
9the right to possess or control, or a license to use, but not 
10title to, tangible personal property for a fixed or 
11indeterminate term for consideration, regardless of the name 
12by which the transaction is called. "Lease" does not include a 
13lease entered into merely as a security agreement that does 
14not involve a transfer of possession from the lessor to the 
15lessee.
16 On and after January 1, 2025, the term "sale", when used in 
17this Act with respect to tangible personal property, includes 
18a lease. 
19 "Purchased from a serviceman" means the acquisition of the 
20ownership of, the or title to, the possession or control of, 
21the right to possess or control, or a license to use, tangible 
22personal property through a sale of service.
23 "Purchaser" means any person who, through a sale of 
24service, acquires the ownership of, the or title to, the 
25possession or control of, the right to possess or control, or a 
26license to use, any tangible personal property.
 
 
10300HB4951sam002- 383 -LRB103 38094 HLH 74177 a


1 "Cost price" means the consideration paid by the 
2serviceman for a purchase, including, on and after January 1, 
32025, a lease, valued in money, whether paid in money or 
4otherwise, including cash, credits and services, and shall be 
5determined without any deduction on account of the supplier's 
6cost of the property sold or on account of any other expense 
7incurred by the supplier. When a serviceman contracts out part 
8or all of the services required in his sale of service, it 
9shall be presumed that the cost price to the serviceman of the 
10property transferred to him or her by his or her subcontractor 
11is equal to 50% of the subcontractor's charges to the 
12serviceman in the absence of proof of the consideration paid 
13by the subcontractor for the purchase of such property.
14 "Selling price" means the consideration for a sale, 
15including, on and after January 1, 2025, a lease, valued in 
16money whether received in money or otherwise, including cash, 
17credits and service, and shall be determined without any 
18deduction on account of the serviceman's cost of the property 
19sold, the cost of materials used, labor or service cost or any 
20other expense whatsoever, but does not include interest or 
21finance charges which appear as separate items on the bill of 
22sale or sales contract nor charges that are added to prices by 
23sellers on account of the seller's duty to collect, from the 
24purchaser, the tax that is imposed by this Act.
25 "Department" means the Department of Revenue.
26 "Person" means any natural individual, firm, partnership, 
 
 
10300HB4951sam002- 384 -LRB103 38094 HLH 74177 a


1association, joint stock company, joint venture, public or 
2private corporation, limited liability company, and any 
3receiver, executor, trustee, guardian or other representative 
4appointed by order of any court.
5 "Sale of service" means any transaction except:
6  (1) a retail sale of tangible personal property 
7 taxable under the Retailers' Occupation Tax Act or under 
8 the Use Tax Act.
9  (2) a sale of tangible personal property for the 
10 purpose of resale made in compliance with Section 2c of 
11 the Retailers' Occupation Tax Act.
12  (3) except as hereinafter provided, a sale or transfer 
13 of tangible personal property as an incident to the 
14 rendering of service for or by any governmental body, or 
15 for or by any corporation, society, association, 
16 foundation or institution organized and operated 
17 exclusively for charitable, religious or educational 
18 purposes or any not-for-profit corporation, society, 
19 association, foundation, institution or organization which 
20 has no compensated officers or employees and which is 
21 organized and operated primarily for the recreation of 
22 persons 55 years of age or older. A limited liability 
23 company may qualify for the exemption under this paragraph 
24 only if the limited liability company is organized and 
25 operated exclusively for educational purposes.
26  (4) (blank).
 
 
10300HB4951sam002- 385 -LRB103 38094 HLH 74177 a


1  (4a) a sale or transfer of tangible personal property 
2 as an incident to the rendering of service for owners or , 
3 lessors, lessees, or shippers of tangible personal 
4 property which is utilized by interstate carriers for hire 
5 for use as rolling stock moving in interstate commerce so 
6 long as so used by interstate carriers for hire, and 
7 equipment operated by a telecommunications provider, 
8 licensed as a common carrier by the Federal Communications 
9 Commission, which is permanently installed in or affixed 
10 to aircraft moving in interstate commerce.
11  (4a-5) on and after July 1, 2003 and through June 30, 
12 2004, a sale or transfer of a motor vehicle of the second 
13 division with a gross vehicle weight in excess of 8,000 
14 pounds as an incident to the rendering of service if that 
15 motor vehicle is subject to the commercial distribution 
16 fee imposed under Section 3-815.1 of the Illinois Vehicle 
17 Code. Beginning on July 1, 2004 and through June 30, 2005, 
18 the use in this State of motor vehicles of the second 
19 division: (i) with a gross vehicle weight rating in excess 
20 of 8,000 pounds; (ii) that are subject to the commercial 
21 distribution fee imposed under Section 3-815.1 of the 
22 Illinois Vehicle Code; and (iii) that are primarily used 
23 for commercial purposes. Through June 30, 2005, this 
24 exemption applies to repair and replacement parts added 
25 after the initial purchase of such a motor vehicle if that 
26 motor vehicle is used in a manner that would qualify for 
 
 
10300HB4951sam002- 386 -LRB103 38094 HLH 74177 a


1 the rolling stock exemption otherwise provided for in this 
2 Act. For purposes of this paragraph, "used for commercial 
3 purposes" means the transportation of persons or property 
4 in furtherance of any commercial or industrial enterprise 
5 whether for-hire or not. 
6  (5) a sale or transfer of machinery and equipment used 
7 primarily in the process of the manufacturing or 
8 assembling, either in an existing, an expanded or a new 
9 manufacturing facility, of tangible personal property for 
10 wholesale or retail sale or lease, whether such sale or 
11 lease is made directly by the manufacturer or by some 
12 other person, whether the materials used in the process 
13 are owned by the manufacturer or some other person, or 
14 whether such sale or lease is made apart from or as an 
15 incident to the seller's engaging in a service occupation 
16 and the applicable tax is a Service Use Tax or Service 
17 Occupation Tax, rather than Use Tax or Retailers' 
18 Occupation Tax. The exemption provided by this paragraph 
19 (5) includes production related tangible personal 
20 property, as defined in Section 3-50 of the Use Tax Act, 
21 purchased on or after July 1, 2019. The exemption provided 
22 by this paragraph (5) does not include machinery and 
23 equipment used in (i) the generation of electricity for 
24 wholesale or retail sale; (ii) the generation or treatment 
25 of natural or artificial gas for wholesale or retail sale 
26 that is delivered to customers through pipes, pipelines, 
 
 
10300HB4951sam002- 387 -LRB103 38094 HLH 74177 a


1 or mains; or (iii) the treatment of water for wholesale or 
2 retail sale that is delivered to customers through pipes, 
3 pipelines, or mains. The provisions of Public Act 98-583 
4 are declaratory of existing law as to the meaning and 
5 scope of this exemption. The exemption under this 
6 paragraph (5) is exempt from the provisions of Section 
7 3-75. 
8  (5a) the repairing, reconditioning or remodeling, for 
9 a common carrier by rail, of tangible personal property 
10 which belongs to such carrier for hire, and as to which 
11 such carrier receives the physical possession of the 
12 repaired, reconditioned or remodeled item of tangible 
13 personal property in Illinois, and which such carrier 
14 transports, or shares with another common carrier in the 
15 transportation of such property, out of Illinois on a 
16 standard uniform bill of lading showing the person who 
17 repaired, reconditioned or remodeled the property to a 
18 destination outside Illinois, for use outside Illinois.
19  (5b) a sale or transfer of tangible personal property 
20 which is produced by the seller thereof on special order 
21 in such a way as to have made the applicable tax the 
22 Service Occupation Tax or the Service Use Tax, rather than 
23 the Retailers' Occupation Tax or the Use Tax, for an 
24 interstate carrier by rail which receives the physical 
25 possession of such property in Illinois, and which 
26 transports such property, or shares with another common 
 
 
10300HB4951sam002- 388 -LRB103 38094 HLH 74177 a


1 carrier in the transportation of such property, out of 
2 Illinois on a standard uniform bill of lading showing the 
3 seller of the property as the shipper or consignor of such 
4 property to a destination outside Illinois, for use 
5 outside Illinois.
6  (6) until July 1, 2003, a sale or transfer of 
7 distillation machinery and equipment, sold as a unit or 
8 kit and assembled or installed by the retailer, which 
9 machinery and equipment is certified by the user to be 
10 used only for the production of ethyl alcohol that will be 
11 used for consumption as motor fuel or as a component of 
12 motor fuel for the personal use of such user and not 
13 subject to sale or resale.
14  (7) at the election of any serviceman not required to 
15 be otherwise registered as a retailer under Section 2a of 
16 the Retailers' Occupation Tax Act, made for each fiscal 
17 year sales of service in which the aggregate annual cost 
18 price of tangible personal property transferred as an 
19 incident to the sales of service is less than 35%, or 75% 
20 in the case of servicemen transferring prescription drugs 
21 or servicemen engaged in graphic arts production, of the 
22 aggregate annual total gross receipts from all sales of 
23 service. The purchase of such tangible personal property 
24 by the serviceman shall be subject to tax under the 
25 Retailers' Occupation Tax Act and the Use Tax Act. 
26 However, if a primary serviceman who has made the election 
 
 
10300HB4951sam002- 389 -LRB103 38094 HLH 74177 a


1 described in this paragraph subcontracts service work to a 
2 secondary serviceman who has also made the election 
3 described in this paragraph, the primary serviceman does 
4 not incur a Use Tax liability if the secondary serviceman 
5 (i) has paid or will pay Use Tax on his or her cost price 
6 of any tangible personal property transferred to the 
7 primary serviceman and (ii) certifies that fact in writing 
8 to the primary serviceman.
9 Tangible personal property transferred incident to the 
10completion of a maintenance agreement is exempt from the tax 
11imposed pursuant to this Act.
12 Exemption (5) also includes machinery and equipment used 
13in the general maintenance or repair of such exempt machinery 
14and equipment or for in-house manufacture of exempt machinery 
15and equipment. On and after July 1, 2017, exemption (5) also 
16includes graphic arts machinery and equipment, as defined in 
17paragraph (5) of Section 3-5. The machinery and equipment 
18exemption does not include machinery and equipment used in (i) 
19the generation of electricity for wholesale or retail sale; 
20(ii) the generation or treatment of natural or artificial gas 
21for wholesale or retail sale that is delivered to customers 
22through pipes, pipelines, or mains; or (iii) the treatment of 
23water for wholesale or retail sale that is delivered to 
24customers through pipes, pipelines, or mains. The provisions 
25of Public Act 98-583 are declaratory of existing law as to the 
26meaning and scope of this exemption. For the purposes of 
 
 
10300HB4951sam002- 390 -LRB103 38094 HLH 74177 a


1exemption (5), each of these terms shall have the following 
2meanings: (1) "manufacturing process" shall mean the 
3production of any article of tangible personal property, 
4whether such article is a finished product or an article for 
5use in the process of manufacturing or assembling a different 
6article of tangible personal property, by procedures commonly 
7regarded as manufacturing, processing, fabricating, or 
8refining which changes some existing material or materials 
9into a material with a different form, use or name. In relation 
10to a recognized integrated business composed of a series of 
11operations which collectively constitute manufacturing, or 
12individually constitute manufacturing operations, the 
13manufacturing process shall be deemed to commence with the 
14first operation or stage of production in the series, and 
15shall not be deemed to end until the completion of the final 
16product in the last operation or stage of production in the 
17series; and further, for purposes of exemption (5), 
18photoprocessing is deemed to be a manufacturing process of 
19tangible personal property for wholesale or retail sale; (2) 
20"assembling process" shall mean the production of any article 
21of tangible personal property, whether such article is a 
22finished product or an article for use in the process of 
23manufacturing or assembling a different article of tangible 
24personal property, by the combination of existing materials in 
25a manner commonly regarded as assembling which results in a 
26material of a different form, use or name; (3) "machinery" 
 
 
10300HB4951sam002- 391 -LRB103 38094 HLH 74177 a


1shall mean major mechanical machines or major components of 
2such machines contributing to a manufacturing or assembling 
3process; and (4) "equipment" shall include any independent 
4device or tool separate from any machinery but essential to an 
5integrated manufacturing or assembly process; including 
6computers used primarily in a manufacturer's computer assisted 
7design, computer assisted manufacturing (CAD/CAM) system; or 
8any subunit or assembly comprising a component of any 
9machinery or auxiliary, adjunct or attachment parts of 
10machinery, such as tools, dies, jigs, fixtures, patterns and 
11molds; or any parts which require periodic replacement in the 
12course of normal operation; but shall not include hand tools. 
13Equipment includes chemicals or chemicals acting as catalysts 
14but only if the chemicals or chemicals acting as catalysts 
15effect a direct and immediate change upon a product being 
16manufactured or assembled for wholesale or retail sale or 
17lease. The purchaser of such machinery and equipment who has 
18an active resale registration number shall furnish such number 
19to the seller at the time of purchase. The purchaser of such 
20machinery and equipment and tools without an active resale 
21registration number shall prepare a certificate of exemption 
22stating facts establishing the exemption, which certificate 
23shall be available to the Department for inspection or audit. 
24The Department shall prescribe the form of the certificate.
25 Any informal rulings, opinions or letters issued by the 
26Department in response to an inquiry or request for any 
 
 
10300HB4951sam002- 392 -LRB103 38094 HLH 74177 a


1opinion from any person regarding the coverage and 
2applicability of exemption (5) to specific devices shall be 
3published, maintained as a public record, and made available 
4for public inspection and copying. If the informal ruling, 
5opinion or letter contains trade secrets or other confidential 
6information, where possible the Department shall delete such 
7information prior to publication. Whenever such informal 
8rulings, opinions, or letters contain any policy of general 
9applicability, the Department shall formulate and adopt such 
10policy as a rule in accordance with the provisions of the 
11Illinois Administrative Procedure Act.
12 On and after July 1, 1987, no entity otherwise eligible 
13under exemption (3) of this Section shall make tax-free 
14purchases unless it has an active exemption identification 
15number issued by the Department.
16 The purchase, employment and transfer of such tangible 
17personal property as newsprint and ink for the primary purpose 
18of conveying news (with or without other information) is not a 
19purchase, use or sale of service or of tangible personal 
20property within the meaning of this Act.
21 "Serviceman" means any person who is engaged in the 
22occupation of making sales of service.
23 "Sale at retail" means "sale at retail" as defined in the 
24Retailers' Occupation Tax Act, which, on and after January 1, 
252025, is defined to include leases.
26 "Supplier" means any person who makes sales of tangible 
 
 
10300HB4951sam002- 393 -LRB103 38094 HLH 74177 a


1personal property to servicemen for the purpose of resale as 
2an incident to a sale of service.
3 "Serviceman maintaining a place of business in this 
4State", or any like term, means and includes any serviceman:
5  (1) having or maintaining within this State, directly 
6 or by a subsidiary, an office, distribution house, sales 
7 house, warehouse or other place of business, or any agent 
8 or other representative operating within this State under 
9 the authority of the serviceman or its subsidiary, 
10 irrespective of whether such place of business or agent or 
11 other representative is located here permanently or 
12 temporarily, or whether such serviceman or subsidiary is 
13 licensed to do business in this State;
14  (1.1) having a contract with a person located in this 
15 State under which the person, for a commission or other 
16 consideration based on the sale of service by the 
17 serviceman, directly or indirectly refers potential 
18 customers to the serviceman by providing to the potential 
19 customers a promotional code or other mechanism that 
20 allows the serviceman to track purchases referred by such 
21 persons. Examples of mechanisms that allow the serviceman 
22 to track purchases referred by such persons include but 
23 are not limited to the use of a link on the person's 
24 Internet website, promotional codes distributed through 
25 the person's hand-delivered or mailed material, and 
26 promotional codes distributed by the person through radio 
 
 
10300HB4951sam002- 394 -LRB103 38094 HLH 74177 a


1 or other broadcast media. The provisions of this paragraph 
2 (1.1) shall apply only if the cumulative gross receipts 
3 from sales of service by the serviceman to customers who 
4 are referred to the serviceman by all persons in this 
5 State under such contracts exceed $10,000 during the 
6 preceding 4 quarterly periods ending on the last day of 
7 March, June, September, and December; a serviceman meeting 
8 the requirements of this paragraph (1.1) shall be presumed 
9 to be maintaining a place of business in this State but may 
10 rebut this presumption by submitting proof that the 
11 referrals or other activities pursued within this State by 
12 such persons were not sufficient to meet the nexus 
13 standards of the United States Constitution during the 
14 preceding 4 quarterly periods; 
15  (1.2) beginning July 1, 2011, having a contract with a 
16 person located in this State under which:
17   (A) the serviceman sells the same or substantially 
18 similar line of services as the person located in this 
19 State and does so using an identical or substantially 
20 similar name, trade name, or trademark as the person 
21 located in this State; and
22   (B) the serviceman provides a commission or other 
23 consideration to the person located in this State 
24 based upon the sale of services by the serviceman.
25 The provisions of this paragraph (1.2) shall apply only if 
26 the cumulative gross receipts from sales of service by the 
 
 
10300HB4951sam002- 395 -LRB103 38094 HLH 74177 a


1 serviceman to customers in this State under all such 
2 contracts exceed $10,000 during the preceding 4 quarterly 
3 periods ending on the last day of March, June, September, 
4 and December; 
5  (2) soliciting orders for tangible personal property 
6 by means of a telecommunication or television shopping 
7 system (which utilizes toll free numbers) which is 
8 intended by the retailer to be broadcast by cable 
9 television or other means of broadcasting, to consumers 
10 located in this State;
11  (3) pursuant to a contract with a broadcaster or 
12 publisher located in this State, soliciting orders for 
13 tangible personal property by means of advertising which 
14 is disseminated primarily to consumers located in this 
15 State and only secondarily to bordering jurisdictions;
16  (4) soliciting orders for tangible personal property 
17 by mail if the solicitations are substantial and recurring 
18 and if the retailer benefits from any banking, financing, 
19 debt collection, telecommunication, or marketing 
20 activities occurring in this State or benefits from the 
21 location in this State of authorized installation, 
22 servicing, or repair facilities;
23  (5) being owned or controlled by the same interests 
24 which own or control any retailer engaging in business in 
25 the same or similar line of business in this State;
26  (6) having a franchisee or licensee operating under 
 
 
10300HB4951sam002- 396 -LRB103 38094 HLH 74177 a


1 its trade name if the franchisee or licensee is required 
2 to collect the tax under this Section;
3  (7) pursuant to a contract with a cable television 
4 operator located in this State, soliciting orders for 
5 tangible personal property by means of advertising which 
6 is transmitted or distributed over a cable television 
7 system in this State;
8  (8) engaging in activities in Illinois, which 
9 activities in the state in which the supply business 
10 engaging in such activities is located would constitute 
11 maintaining a place of business in that state; or
12  (9) beginning October 1, 2018, making sales of service 
13 to purchasers in Illinois from outside of Illinois if: 
14   (A) the cumulative gross receipts from sales of 
15 service to purchasers in Illinois are $100,000 or 
16 more; or 
17   (B) the serviceman enters into 200 or more 
18 separate transactions for sales of service to 
19 purchasers in Illinois. 
20  The serviceman shall determine on a quarterly basis, 
21 ending on the last day of March, June, September, and 
22 December, whether he or she meets the criteria of either 
23 subparagraph (A) or (B) of this paragraph (9) for the 
24 preceding 12-month period. If the serviceman meets the 
25 criteria of either subparagraph (A) or (B) for a 12-month 
26 period, he or she is considered a serviceman maintaining a 
 
 
10300HB4951sam002- 397 -LRB103 38094 HLH 74177 a


1 place of business in this State and is required to collect 
2 and remit the tax imposed under this Act and file returns 
3 for one year. At the end of that one-year period, the 
4 serviceman shall determine whether the serviceman met the 
5 criteria of either subparagraph (A) or (B) during the 
6 preceding 12-month period. If the serviceman met the 
7 criteria in either subparagraph (A) or (B) for the 
8 preceding 12-month period, he or she is considered a 
9 serviceman maintaining a place of business in this State 
10 and is required to collect and remit the tax imposed under 
11 this Act and file returns for the subsequent year. If at 
12 the end of a one-year period a serviceman that was 
13 required to collect and remit the tax imposed under this 
14 Act determines that he or she did not meet the criteria in 
15 either subparagraph (A) or (B) during the preceding 
16 12-month period, the serviceman subsequently shall 
17 determine on a quarterly basis, ending on the last day of 
18 March, June, September, and December, whether he or she 
19 meets the criteria of either subparagraph (A) or (B) for 
20 the preceding 12-month period.
21  Beginning January 1, 2020, neither the gross receipts 
22 from nor the number of separate transactions for sales of 
23 service to purchasers in Illinois that a serviceman makes 
24 through a marketplace facilitator and for which the 
25 serviceman has received a certification from the 
26 marketplace facilitator pursuant to Section 2d of this Act 
 
 
10300HB4951sam002- 398 -LRB103 38094 HLH 74177 a


1 shall be included for purposes of determining whether he 
2 or she has met the thresholds of this paragraph (9).
3  (10) Beginning January 1, 2020, a marketplace 
4 facilitator, as defined in Section 2d of this Act. 
5(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 
6100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article 
710, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section 
825-10, eff. 6-5-19; 101-604, eff. 12-13-19.)

9 (35 ILCS 110/3) (from Ch. 120, par. 439.33)
10 Sec. 3. Tax imposed. A tax is imposed upon the privilege of 
11using in this State real or tangible personal property 
12acquired, which, on and after January 1, 2025, includes 
13tangible personal property acquired through a lease, as an 
14incident to the purchase of a service from a serviceman, 
15including computer software, and including photographs, 
16negatives, and positives that are the product of 
17photoprocessing, but not including products of photoprocessing 
18produced for use in motion pictures for public commercial 
19exhibition. Beginning January 1, 2001, prepaid telephone 
20calling arrangements shall be considered tangible personal 
21property subject to the tax imposed under this Act regardless 
22of the form in which those arrangements may be embodied, 
23transmitted, or fixed by any method now known or hereafter 
24developed. Purchases of (1) electricity delivered to customers 
25by wire; (2) natural or artificial gas that is delivered to 
 
 
10300HB4951sam002- 399 -LRB103 38094 HLH 74177 a


1customers through pipes, pipelines, or mains; and (3) water 
2that is delivered to customers through pipes, pipelines, or 
3mains are not subject to tax under this Act. The provisions of 
4this amendatory Act of the 98th General Assembly are 
5declaratory of existing law as to the meaning and scope of this 
6Act. 
7 The imposition of the tax under this Act on leases applies 
8to leases of tangible personal property in effect, entered 
9into, or renewed on or after January 1, 2025. In the case of 
10leases, except as otherwise provided in this Act, the 
11serviceman who is a lessor, in collecting the tax, may collect 
12for each tax return period only the tax applicable to that part 
13of the selling price actually received during such tax return 
14period. 
15(Source: P.A. 98-583, eff. 1-1-14.)

16 (35 ILCS 110/3-5)
17 Sec. 3-5. Exemptions. Use of the following tangible 
18personal property is exempt from the tax imposed by this Act:
19 (1) Personal property purchased from a corporation, 
20society, association, foundation, institution, or 
21organization, other than a limited liability company, that is 
22organized and operated as a not-for-profit service enterprise 
23for the benefit of persons 65 years of age or older if the 
24personal property was not purchased by the enterprise for the 
25purpose of resale by the enterprise.
 
 
10300HB4951sam002- 400 -LRB103 38094 HLH 74177 a


1 (2) Personal property purchased by a non-profit Illinois 
2county fair association for use in conducting, operating, or 
3promoting the county fair.
4 (3) Personal property purchased by a not-for-profit arts 
5or cultural organization that establishes, by proof required 
6by the Department by rule, that it has received an exemption 
7under Section 501(c)(3) of the Internal Revenue Code and that 
8is organized and operated primarily for the presentation or 
9support of arts or cultural programming, activities, or 
10services. These organizations include, but are not limited to, 
11music and dramatic arts organizations such as symphony 
12orchestras and theatrical groups, arts and cultural service 
13organizations, local arts councils, visual arts organizations, 
14and media arts organizations. On and after July 1, 2001 (the 
15effective date of Public Act 92-35), however, an entity 
16otherwise eligible for this exemption shall not make tax-free 
17purchases unless it has an active identification number issued 
18by the Department.
19 (4) Legal tender, currency, medallions, or gold or silver 
20coinage issued by the State of Illinois, the government of the 
21United States of America, or the government of any foreign 
22country, and bullion.
23 (5) Until July 1, 2003 and beginning again on September 1, 
242004 through August 30, 2014, graphic arts machinery and 
25equipment, including repair and replacement parts, both new 
26and used, and including that manufactured on special order or 
 
 
10300HB4951sam002- 401 -LRB103 38094 HLH 74177 a


1purchased for lease, certified by the purchaser to be used 
2primarily for graphic arts production. Equipment includes 
3chemicals or chemicals acting as catalysts but only if the 
4chemicals or chemicals acting as catalysts effect a direct and 
5immediate change upon a graphic arts product. Beginning on 
6July 1, 2017, graphic arts machinery and equipment is included 
7in the manufacturing and assembling machinery and equipment 
8exemption under Section 2 of this Act.
9 (6) Personal property purchased from a teacher-sponsored 
10student organization affiliated with an elementary or 
11secondary school located in Illinois.
12 (7) Farm machinery and equipment, both new and used, 
13including that manufactured on special order, certified by the 
14purchaser to be used primarily for production agriculture or 
15State or federal agricultural programs, including individual 
16replacement parts for the machinery and equipment, including 
17machinery and equipment purchased for lease, and including 
18implements of husbandry defined in Section 1-130 of the 
19Illinois Vehicle Code, farm machinery and agricultural 
20chemical and fertilizer spreaders, and nurse wagons required 
21to be registered under Section 3-809 of the Illinois Vehicle 
22Code, but excluding other motor vehicles required to be 
23registered under the Illinois Vehicle Code. Horticultural 
24polyhouses or hoop houses used for propagating, growing, or 
25overwintering plants shall be considered farm machinery and 
26equipment under this item (7). Agricultural chemical tender 
 
 
10300HB4951sam002- 402 -LRB103 38094 HLH 74177 a


1tanks and dry boxes shall include units sold separately from a 
2motor vehicle required to be licensed and units sold mounted 
3on a motor vehicle required to be licensed if the selling price 
4of the tender is separately stated.
5 Farm machinery and equipment shall include precision 
6farming equipment that is installed or purchased to be 
7installed on farm machinery and equipment, including, but not 
8limited to, tractors, harvesters, sprayers, planters, seeders, 
9or spreaders. Precision farming equipment includes, but is not 
10limited to, soil testing sensors, computers, monitors, 
11software, global positioning and mapping systems, and other 
12such equipment.
13 Farm machinery and equipment also includes computers, 
14sensors, software, and related equipment used primarily in the 
15computer-assisted operation of production agriculture 
16facilities, equipment, and activities such as, but not limited 
17to, the collection, monitoring, and correlation of animal and 
18crop data for the purpose of formulating animal diets and 
19agricultural chemicals. 
20 Beginning on January 1, 2024, farm machinery and equipment 
21also includes electrical power generation equipment used 
22primarily for production agriculture. 
23 This item (7) is exempt from the provisions of Section 
243-75.
25 (8) Until June 30, 2013, fuel and petroleum products sold 
26to or used by an air common carrier, certified by the carrier 
 
 
10300HB4951sam002- 403 -LRB103 38094 HLH 74177 a


1to be used for consumption, shipment, or storage in the 
2conduct of its business as an air common carrier, for a flight 
3destined for or returning from a location or locations outside 
4the United States without regard to previous or subsequent 
5domestic stopovers.
6 Beginning July 1, 2013, fuel and petroleum products sold 
7to or used by an air carrier, certified by the carrier to be 
8used for consumption, shipment, or storage in the conduct of 
9its business as an air common carrier, for a flight that (i) is 
10engaged in foreign trade or is engaged in trade between the 
11United States and any of its possessions and (ii) transports 
12at least one individual or package for hire from the city of 
13origination to the city of final destination on the same 
14aircraft, without regard to a change in the flight number of 
15that aircraft. 
16 (9) Proceeds of mandatory service charges separately 
17stated on customers' bills for the purchase and consumption of 
18food and beverages acquired as an incident to the purchase of a 
19service from a serviceman, to the extent that the proceeds of 
20the service charge are in fact turned over as tips or as a 
21substitute for tips to the employees who participate directly 
22in preparing, serving, hosting or cleaning up the food or 
23beverage function with respect to which the service charge is 
24imposed.
25 (10) Until July 1, 2003, oil field exploration, drilling, 
26and production equipment, including (i) rigs and parts of 
 
 
10300HB4951sam002- 404 -LRB103 38094 HLH 74177 a


1rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) 
2pipe and tubular goods, including casing and drill strings, 
3(iii) pumps and pump-jack units, (iv) storage tanks and flow 
4lines, (v) any individual replacement part for oil field 
5exploration, drilling, and production equipment, and (vi) 
6machinery and equipment purchased for lease; but excluding 
7motor vehicles required to be registered under the Illinois 
8Vehicle Code.
9 (11) Proceeds from the sale of photoprocessing machinery 
10and equipment, including repair and replacement parts, both 
11new and used, including that manufactured on special order, 
12certified by the purchaser to be used primarily for 
13photoprocessing, and including photoprocessing machinery and 
14equipment purchased for lease.
15 (12) Until July 1, 2028, coal and aggregate exploration, 
16mining, off-highway hauling, processing, maintenance, and 
17reclamation equipment, including replacement parts and 
18equipment, and including equipment purchased for lease, but 
19excluding motor vehicles required to be registered under the 
20Illinois Vehicle Code. The changes made to this Section by 
21Public Act 97-767 apply on and after July 1, 2003, but no claim 
22for credit or refund is allowed on or after August 16, 2013 
23(the effective date of Public Act 98-456) for such taxes paid 
24during the period beginning July 1, 2003 and ending on August 
2516, 2013 (the effective date of Public Act 98-456).
26 (13) Semen used for artificial insemination of livestock 
 
 
10300HB4951sam002- 405 -LRB103 38094 HLH 74177 a


1for direct agricultural production.
2 (14) Horses, or interests in horses, registered with and 
3meeting the requirements of any of the Arabian Horse Club 
4Registry of America, Appaloosa Horse Club, American Quarter 
5Horse Association, United States Trotting Association, or 
6Jockey Club, as appropriate, used for purposes of breeding or 
7racing for prizes. This item (14) is exempt from the 
8provisions of Section 3-75, and the exemption provided for 
9under this item (14) applies for all periods beginning May 30, 
101995, but no claim for credit or refund is allowed on or after 
11January 1, 2008 (the effective date of Public Act 95-88) for 
12such taxes paid during the period beginning May 30, 2000 and 
13ending on January 1, 2008 (the effective date of Public Act 
1495-88).
15 (15) Computers and communications equipment utilized for 
16any hospital purpose and equipment used in the diagnosis, 
17analysis, or treatment of hospital patients purchased by a 
18lessor who leases the equipment, under a lease of one year or 
19longer executed or in effect at the time the lessor would 
20otherwise be subject to the tax imposed by this Act, to a 
21hospital that has been issued an active tax exemption 
22identification number by the Department under Section 1g of 
23the Retailers' Occupation Tax Act. If the equipment is leased 
24in a manner that does not qualify for this exemption or is used 
25in any other non-exempt manner, the lessor shall be liable for 
26the tax imposed under this Act or the Use Tax Act, as the case 
 
 
10300HB4951sam002- 406 -LRB103 38094 HLH 74177 a


1may be, based on the fair market value of the property at the 
2time the non-qualifying use occurs. No lessor shall collect or 
3attempt to collect an amount (however designated) that 
4purports to reimburse that lessor for the tax imposed by this 
5Act or the Use Tax Act, as the case may be, if the tax has not 
6been paid by the lessor. If a lessor improperly collects any 
7such amount from the lessee, the lessee shall have a legal 
8right to claim a refund of that amount from the lessor. If, 
9however, that amount is not refunded to the lessee for any 
10reason, the lessor is liable to pay that amount to the 
11Department.
12 (16) Personal property purchased by a lessor who leases 
13the property, under a lease of one year or longer executed or 
14in effect at the time the lessor would otherwise be subject to 
15the tax imposed by this Act, to a governmental body that has 
16been issued an active tax exemption identification number by 
17the Department under Section 1g of the Retailers' Occupation 
18Tax Act. If the property is leased in a manner that does not 
19qualify for this exemption or is used in any other non-exempt 
20manner, the lessor shall be liable for the tax imposed under 
21this Act or the Use Tax Act, as the case may be, based on the 
22fair market value of the property at the time the 
23non-qualifying use occurs. No lessor shall collect or attempt 
24to collect an amount (however designated) that purports to 
25reimburse that lessor for the tax imposed by this Act or the 
26Use Tax Act, as the case may be, if the tax has not been paid 
 
 
10300HB4951sam002- 407 -LRB103 38094 HLH 74177 a


1by the lessor. If a lessor improperly collects any such amount 
2from the lessee, the lessee shall have a legal right to claim a 
3refund of that amount from the lessor. If, however, that 
4amount is not refunded to the lessee for any reason, the lessor 
5is liable to pay that amount to the Department.
6 (17) Beginning with taxable years ending on or after 
7December 31, 1995 and ending with taxable years ending on or 
8before December 31, 2004, personal property that is donated 
9for disaster relief to be used in a State or federally declared 
10disaster area in Illinois or bordering Illinois by a 
11manufacturer or retailer that is registered in this State to a 
12corporation, society, association, foundation, or institution 
13that has been issued a sales tax exemption identification 
14number by the Department that assists victims of the disaster 
15who reside within the declared disaster area.
16 (18) Beginning with taxable years ending on or after 
17December 31, 1995 and ending with taxable years ending on or 
18before December 31, 2004, personal property that is used in 
19the performance of infrastructure repairs in this State, 
20including, but not limited to, municipal roads and streets, 
21access roads, bridges, sidewalks, waste disposal systems, 
22water and sewer line extensions, water distribution and 
23purification facilities, storm water drainage and retention 
24facilities, and sewage treatment facilities, resulting from a 
25State or federally declared disaster in Illinois or bordering 
26Illinois when such repairs are initiated on facilities located 
 
 
10300HB4951sam002- 408 -LRB103 38094 HLH 74177 a


1in the declared disaster area within 6 months after the 
2disaster.
3 (19) Beginning July 1, 1999, game or game birds purchased 
4at a "game breeding and hunting preserve area" as that term is 
5used in the Wildlife Code. This paragraph is exempt from the 
6provisions of Section 3-75.
7 (20) A motor vehicle, as that term is defined in Section 
81-146 of the Illinois Vehicle Code, that is donated to a 
9corporation, limited liability company, society, association, 
10foundation, or institution that is determined by the 
11Department to be organized and operated exclusively for 
12educational purposes. For purposes of this exemption, "a 
13corporation, limited liability company, society, association, 
14foundation, or institution organized and operated exclusively 
15for educational purposes" means all tax-supported public 
16schools, private schools that offer systematic instruction in 
17useful branches of learning by methods common to public 
18schools and that compare favorably in their scope and 
19intensity with the course of study presented in tax-supported 
20schools, and vocational or technical schools or institutes 
21organized and operated exclusively to provide a course of 
22study of not less than 6 weeks duration and designed to prepare 
23individuals to follow a trade or to pursue a manual, 
24technical, mechanical, industrial, business, or commercial 
25occupation.
26 (21) Beginning January 1, 2000, personal property, 
 
 
10300HB4951sam002- 409 -LRB103 38094 HLH 74177 a


1including food, purchased through fundraising events for the 
2benefit of a public or private elementary or secondary school, 
3a group of those schools, or one or more school districts if 
4the events are sponsored by an entity recognized by the school 
5district that consists primarily of volunteers and includes 
6parents and teachers of the school children. This paragraph 
7does not apply to fundraising events (i) for the benefit of 
8private home instruction or (ii) for which the fundraising 
9entity purchases the personal property sold at the events from 
10another individual or entity that sold the property for the 
11purpose of resale by the fundraising entity and that profits 
12from the sale to the fundraising entity. This paragraph is 
13exempt from the provisions of Section 3-75.
14 (22) Beginning January 1, 2000 and through December 31, 
152001, new or used automatic vending machines that prepare and 
16serve hot food and beverages, including coffee, soup, and 
17other items, and replacement parts for these machines. 
18Beginning January 1, 2002 and through June 30, 2003, machines 
19and parts for machines used in commercial, coin-operated 
20amusement and vending business if a use or occupation tax is 
21paid on the gross receipts derived from the use of the 
22commercial, coin-operated amusement and vending machines. This 
23paragraph is exempt from the provisions of Section 3-75.
24 (23) Beginning August 23, 2001 and through June 30, 2016, 
25food for human consumption that is to be consumed off the 
26premises where it is sold (other than alcoholic beverages, 
 
 
10300HB4951sam002- 410 -LRB103 38094 HLH 74177 a


1soft drinks, and food that has been prepared for immediate 
2consumption) and prescription and nonprescription medicines, 
3drugs, medical appliances, and insulin, urine testing 
4materials, syringes, and needles used by diabetics, for human 
5use, when purchased for use by a person receiving medical 
6assistance under Article V of the Illinois Public Aid Code who 
7resides in a licensed long-term care facility, as defined in 
8the Nursing Home Care Act, or in a licensed facility as defined 
9in the ID/DD Community Care Act, the MC/DD Act, or the 
10Specialized Mental Health Rehabilitation Act of 2013.
11 (24) Beginning on August 2, 2001 (the effective date of 
12Public Act 92-227), computers and communications equipment 
13utilized for any hospital purpose and equipment used in the 
14diagnosis, analysis, or treatment of hospital patients 
15purchased by a lessor who leases the equipment, under a lease 
16of one year or longer executed or in effect at the time the 
17lessor would otherwise be subject to the tax imposed by this 
18Act, to a hospital that has been issued an active tax exemption 
19identification number by the Department under Section 1g of 
20the Retailers' Occupation Tax Act. If the equipment is leased 
21in a manner that does not qualify for this exemption or is used 
22in any other nonexempt manner, the lessor shall be liable for 
23the tax imposed under this Act or the Use Tax Act, as the case 
24may be, based on the fair market value of the property at the 
25time the nonqualifying use occurs. No lessor shall collect or 
26attempt to collect an amount (however designated) that 
 
 
10300HB4951sam002- 411 -LRB103 38094 HLH 74177 a


1purports to reimburse that lessor for the tax imposed by this 
2Act or the Use Tax Act, as the case may be, if the tax has not 
3been paid by the lessor. If a lessor improperly collects any 
4such amount from the lessee, the lessee shall have a legal 
5right to claim a refund of that amount from the lessor. If, 
6however, that amount is not refunded to the lessee for any 
7reason, the lessor is liable to pay that amount to the 
8Department. This paragraph is exempt from the provisions of 
9Section 3-75.
10 (25) Beginning on August 2, 2001 (the effective date of 
11Public Act 92-227), personal property purchased by a lessor 
12who leases the property, under a lease of one year or longer 
13executed or in effect at the time the lessor would otherwise be 
14subject to the tax imposed by this Act, to a governmental body 
15that has been issued an active tax exemption identification 
16number by the Department under Section 1g of the Retailers' 
17Occupation Tax Act. If the property is leased in a manner that 
18does not qualify for this exemption or is used in any other 
19nonexempt manner, the lessor shall be liable for the tax 
20imposed under this Act or the Use Tax Act, as the case may be, 
21based on the fair market value of the property at the time the 
22nonqualifying use occurs. No lessor shall collect or attempt 
23to collect an amount (however designated) that purports to 
24reimburse that lessor for the tax imposed by this Act or the 
25Use Tax Act, as the case may be, if the tax has not been paid 
26by the lessor. If a lessor improperly collects any such amount 
 
 
10300HB4951sam002- 412 -LRB103 38094 HLH 74177 a


1from the lessee, the lessee shall have a legal right to claim a 
2refund of that amount from the lessor. If, however, that 
3amount is not refunded to the lessee for any reason, the lessor 
4is liable to pay that amount to the Department. This paragraph 
5is exempt from the provisions of Section 3-75.
6 (26) Beginning January 1, 2008, tangible personal property 
7used in the construction or maintenance of a community water 
8supply, as defined under Section 3.145 of the Environmental 
9Protection Act, that is operated by a not-for-profit 
10corporation that holds a valid water supply permit issued 
11under Title IV of the Environmental Protection Act. This 
12paragraph is exempt from the provisions of Section 3-75. 
13 (27) Beginning January 1, 2010 and continuing through 
14December 31, 2029, materials, parts, equipment, components, 
15and furnishings incorporated into or upon an aircraft as part 
16of the modification, refurbishment, completion, replacement, 
17repair, or maintenance of the aircraft. This exemption 
18includes consumable supplies used in the modification, 
19refurbishment, completion, replacement, repair, and 
20maintenance of aircraft. However, until January 1, 2024, this 
21exemption excludes any materials, parts, equipment, 
22components, and consumable supplies used in the modification, 
23replacement, repair, and maintenance of aircraft engines or 
24power plants, whether such engines or power plants are 
25installed or uninstalled upon any such aircraft. "Consumable 
26supplies" include, but are not limited to, adhesive, tape, 
 
 
10300HB4951sam002- 413 -LRB103 38094 HLH 74177 a


1sandpaper, general purpose lubricants, cleaning solution, 
2latex gloves, and protective films. 
3 Beginning January 1, 2010 and continuing through December 
431, 2023, this exemption applies only to the use of qualifying 
5tangible personal property transferred incident to the 
6modification, refurbishment, completion, replacement, repair, 
7or maintenance of aircraft by persons who (i) hold an Air 
8Agency Certificate and are empowered to operate an approved 
9repair station by the Federal Aviation Administration, (ii) 
10have a Class IV Rating, and (iii) conduct operations in 
11accordance with Part 145 of the Federal Aviation Regulations. 
12From January 1, 2024 through December 31, 2029, this exemption 
13applies only to the use of qualifying tangible personal 
14property by: (A) persons who modify, refurbish, complete, 
15repair, replace, or maintain aircraft and who (i) hold an Air 
16Agency Certificate and are empowered to operate an approved 
17repair station by the Federal Aviation Administration, (ii) 
18have a Class IV Rating, and (iii) conduct operations in 
19accordance with Part 145 of the Federal Aviation Regulations; 
20and (B) persons who engage in the modification, replacement, 
21repair, and maintenance of aircraft engines or power plants 
22without regard to whether or not those persons meet the 
23qualifications of item (A).
24 The exemption does not include aircraft operated by a 
25commercial air carrier providing scheduled passenger air 
26service pursuant to authority issued under Part 121 or Part 
 
 
10300HB4951sam002- 414 -LRB103 38094 HLH 74177 a


1129 of the Federal Aviation Regulations. The changes made to 
2this paragraph (27) by Public Act 98-534 are declarative of 
3existing law. It is the intent of the General Assembly that the 
4exemption under this paragraph (27) applies continuously from 
5January 1, 2010 through December 31, 2024; however, no claim 
6for credit or refund is allowed for taxes paid as a result of 
7the disallowance of this exemption on or after January 1, 2015 
8and prior to February 5, 2020 (the effective date of Public Act 
9101-629).
10 (28) Tangible personal property purchased by a 
11public-facilities corporation, as described in Section 
1211-65-10 of the Illinois Municipal Code, for purposes of 
13constructing or furnishing a municipal convention hall, but 
14only if the legal title to the municipal convention hall is 
15transferred to the municipality without any further 
16consideration by or on behalf of the municipality at the time 
17of the completion of the municipal convention hall or upon the 
18retirement or redemption of any bonds or other debt 
19instruments issued by the public-facilities corporation in 
20connection with the development of the municipal convention 
21hall. This exemption includes existing public-facilities 
22corporations as provided in Section 11-65-25 of the Illinois 
23Municipal Code. This paragraph is exempt from the provisions 
24of Section 3-75. 
25 (29) Beginning January 1, 2017 and through December 31, 
262026, menstrual pads, tampons, and menstrual cups. 
 
 
10300HB4951sam002- 415 -LRB103 38094 HLH 74177 a


1 (30) Tangible personal property transferred to a purchaser 
2who is exempt from the tax imposed by this Act by operation of 
3federal law. This paragraph is exempt from the provisions of 
4Section 3-75. 
5 (31) Qualified tangible personal property used in the 
6construction or operation of a data center that has been 
7granted a certificate of exemption by the Department of 
8Commerce and Economic Opportunity, whether that tangible 
9personal property is purchased by the owner, operator, or 
10tenant of the data center or by a contractor or subcontractor 
11of the owner, operator, or tenant. Data centers that would 
12have qualified for a certificate of exemption prior to January 
131, 2020 had Public Act 101-31 been in effect, may apply for and 
14obtain an exemption for subsequent purchases of computer 
15equipment or enabling software purchased or leased to upgrade, 
16supplement, or replace computer equipment or enabling software 
17purchased or leased in the original investment that would have 
18qualified. 
19 The Department of Commerce and Economic Opportunity shall 
20grant a certificate of exemption under this item (31) to 
21qualified data centers as defined by Section 605-1025 of the 
22Department of Commerce and Economic Opportunity Law of the 
23Civil Administrative Code of Illinois. 
24 For the purposes of this item (31): 
25  "Data center" means a building or a series of 
26 buildings rehabilitated or constructed to house working 
 
 
10300HB4951sam002- 416 -LRB103 38094 HLH 74177 a


1 servers in one physical location or multiple sites within 
2 the State of Illinois. 
3  "Qualified tangible personal property" means: 
4 electrical systems and equipment; climate control and 
5 chilling equipment and systems; mechanical systems and 
6 equipment; monitoring and secure systems; emergency 
7 generators; hardware; computers; servers; data storage 
8 devices; network connectivity equipment; racks; cabinets; 
9 telecommunications cabling infrastructure; raised floor 
10 systems; peripheral components or systems; software; 
11 mechanical, electrical, or plumbing systems; battery 
12 systems; cooling systems and towers; temperature control 
13 systems; other cabling; and other data center 
14 infrastructure equipment and systems necessary to operate 
15 qualified tangible personal property, including fixtures; 
16 and component parts of any of the foregoing, including 
17 installation, maintenance, repair, refurbishment, and 
18 replacement of qualified tangible personal property to 
19 generate, transform, transmit, distribute, or manage 
20 electricity necessary to operate qualified tangible 
21 personal property; and all other tangible personal 
22 property that is essential to the operations of a computer 
23 data center. The term "qualified tangible personal 
24 property" also includes building materials physically 
25 incorporated into in to the qualifying data center. To 
26 document the exemption allowed under this Section, the 
 
 
10300HB4951sam002- 417 -LRB103 38094 HLH 74177 a


1 retailer must obtain from the purchaser a copy of the 
2 certificate of eligibility issued by the Department of 
3 Commerce and Economic Opportunity. 
4 This item (31) is exempt from the provisions of Section 
53-75. 
6 (32) Beginning July 1, 2022, breast pumps, breast pump 
7collection and storage supplies, and breast pump kits. This 
8item (32) is exempt from the provisions of Section 3-75. As 
9used in this item (32): 
10  "Breast pump" means an electrically controlled or 
11 manually controlled pump device designed or marketed to be 
12 used to express milk from a human breast during lactation, 
13 including the pump device and any battery, AC adapter, or 
14 other power supply unit that is used to power the pump 
15 device and is packaged and sold with the pump device at the 
16 time of sale. 
17  "Breast pump collection and storage supplies" means 
18 items of tangible personal property designed or marketed 
19 to be used in conjunction with a breast pump to collect 
20 milk expressed from a human breast and to store collected 
21 milk until it is ready for consumption. 
22  "Breast pump collection and storage supplies" 
23 includes, but is not limited to: breast shields and breast 
24 shield connectors; breast pump tubes and tubing adapters; 
25 breast pump valves and membranes; backflow protectors and 
26 backflow protector adaptors; bottles and bottle caps 
 
 
10300HB4951sam002- 418 -LRB103 38094 HLH 74177 a


1 specific to the operation of the breast pump; and breast 
2 milk storage bags. 
3  "Breast pump collection and storage supplies" does not 
4 include: (1) bottles and bottle caps not specific to the 
5 operation of the breast pump; (2) breast pump travel bags 
6 and other similar carrying accessories, including ice 
7 packs, labels, and other similar products; (3) breast pump 
8 cleaning supplies; (4) nursing bras, bra pads, breast 
9 shells, and other similar products; and (5) creams, 
10 ointments, and other similar products that relieve 
11 breastfeeding-related symptoms or conditions of the 
12 breasts or nipples, unless sold as part of a breast pump 
13 kit that is pre-packaged by the breast pump manufacturer 
14 or distributor. 
15  "Breast pump kit" means a kit that: (1) contains no 
16 more than a breast pump, breast pump collection and 
17 storage supplies, a rechargeable battery for operating the 
18 breast pump, a breastmilk cooler, bottle stands, ice 
19 packs, and a breast pump carrying case; and (2) is 
20 pre-packaged as a breast pump kit by the breast pump 
21 manufacturer or distributor. 
22 (33) Tangible personal property sold by or on behalf of 
23the State Treasurer pursuant to the Revised Uniform Unclaimed 
24Property Act. This item (33) is exempt from the provisions of 
25Section 3-75. 
26 (34) Beginning on January 1, 2024, tangible personal 
 
 
10300HB4951sam002- 419 -LRB103 38094 HLH 74177 a


1property purchased by an active duty member of the armed 
2forces of the United States who presents valid military 
3identification and purchases the property using a form of 
4payment where the federal government is the payor. The member 
5of the armed forces must complete, at the point of sale, a form 
6prescribed by the Department of Revenue documenting that the 
7transaction is eligible for the exemption under this 
8paragraph. Retailers must keep the form as documentation of 
9the exemption in their records for a period of not less than 6 
10years. "Armed forces of the United States" means the United 
11States Army, Navy, Air Force, Marine Corps, or Coast Guard. 
12This paragraph is exempt from the provisions of Section 3-75. 
13 (35) Use by a lessee of the following leased tangible 
14personal property:
15  (1) software transferred subject to a license that 
16 meets the following requirements:
17   (A) it is evidenced by a written agreement signed 
18 by the licensor and the customer;
19    (i) an electronic agreement in which the 
20 customer accepts the license by means of an 
21 electronic signature that is verifiable and can be 
22 authenticated and is attached to or made part of 
23 the license will comply with this requirement;
24    (ii) a license agreement in which the customer 
25 electronically accepts the terms by clicking "I 
26 agree" does not comply with this requirement;
 
 
10300HB4951sam002- 420 -LRB103 38094 HLH 74177 a


1   (B) it restricts the customer's duplication and 
2 use of the software;
3   (C) it prohibits the customer from licensing, 
4 sublicensing, or transferring the software to a third 
5 party (except to a related party) without the 
6 permission and continued control of the licensor;
7   (D) the licensor has a policy of providing another 
8 copy at minimal or no charge if the customer loses or 
9 damages the software, or of permitting the licensee to 
10 make and keep an archival copy, and such policy is 
11 either stated in the license agreement, supported by 
12 the licensor's books and records, or supported by a 
13 notarized statement made under penalties of perjury by 
14 the licensor; and
15   (E) the customer must destroy or return all copies 
16 of the software to the licensor at the end of the 
17 license period; this provision is deemed to be met, in 
18 the case of a perpetual license, without being set 
19 forth in the license agreement; and
20  (2) property that is subject to a tax on lease 
21 receipts imposed by a home rule unit of local government 
22 if the ordinance imposing that tax was adopted prior to 
23 January 1, 2023. 
24(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, 
25Section 70-10, eff. 4-19-22; 102-700, Article 75, Section 
2675-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, 
 
 
10300HB4951sam002- 421 -LRB103 38094 HLH 74177 a


1Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10, 
2eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 
3revised 12-12-23.)

4 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
5 Sec. 3-10. Rate of tax. Unless otherwise provided in this 
6Section, the tax imposed by this Act is at the rate of 6.25% of 
7the selling price of tangible personal property transferred, 
8including, on and after January 1, 2025, transferred by lease, 
9as an incident to the sale of service, but, for the purpose of 
10computing this tax, in no event shall the selling price be less 
11than the cost price of the property to the serviceman.
12 Beginning on July 1, 2000 and through December 31, 2000, 
13with respect to motor fuel, as defined in Section 1.1 of the 
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16 With respect to gasohol, as defined in the Use Tax Act, the 
17tax imposed by this Act applies to (i) 70% of the selling price 
18of property transferred as an incident to the sale of service 
19on or after January 1, 1990, and before July 1, 2003, (ii) 80% 
20of the selling price of property transferred as an incident to 
21the sale of service on or after July 1, 2003 and on or before 
22July 1, 2017, (iii) 100% of the selling price of property 
23transferred as an incident to the sale of service after July 1, 
242017 and before January 1, 2024, (iv) 90% of the selling price 
25of property transferred as an incident to the sale of service 
 
 
10300HB4951sam002- 422 -LRB103 38094 HLH 74177 a


1on or after January 1, 2024 and on or before December 31, 2028, 
2and (v) 100% of the selling price of property transferred as an 
3incident to the sale of service after December 31, 2028. If, at 
4any time, however, the tax under this Act on sales of gasohol, 
5as defined in the Use Tax Act, is imposed at the rate of 1.25%, 
6then the tax imposed by this Act applies to 100% of the 
7proceeds of sales of gasohol made during that time.
8 With respect to mid-range ethanol blends, as defined in 
9Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
10applies to (i) 80% of the selling price of property 
11transferred as an incident to the sale of service on or after 
12January 1, 2024 and on or before December 31, 2028 and (ii) 
13100% of the selling price of property transferred as an 
14incident to the sale of service after December 31, 2028. If, at 
15any time, however, the tax under this Act on sales of mid-range 
16ethanol blends is imposed at the rate of 1.25%, then the tax 
17imposed by this Act applies to 100% of the selling price of 
18mid-range ethanol blends transferred as an incident to the 
19sale of service during that time.
20 With respect to majority blended ethanol fuel, as defined 
21in the Use Tax Act, the tax imposed by this Act does not apply 
22to the selling price of property transferred as an incident to 
23the sale of service on or after July 1, 2003 and on or before 
24December 31, 2028 but applies to 100% of the selling price 
25thereafter.
26 With respect to biodiesel blends, as defined in the Use 
 
 
10300HB4951sam002- 423 -LRB103 38094 HLH 74177 a


1Tax Act, with no less than 1% and no more than 10% biodiesel, 
2the tax imposed by this Act applies to (i) 80% of the selling 
3price of property transferred as an incident to the sale of 
4service on or after July 1, 2003 and on or before December 31, 
52018 and (ii) 100% of the proceeds of the selling price after 
6December 31, 2018 and before January 1, 2024. On and after 
7January 1, 2024 and on or before December 31, 2030, the 
8taxation of biodiesel, renewable diesel, and biodiesel blends 
9shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
10at any time, however, the tax under this Act on sales of 
11biodiesel blends, as defined in the Use Tax Act, with no less 
12than 1% and no more than 10% biodiesel is imposed at the rate 
13of 1.25%, then the tax imposed by this Act applies to 100% of 
14the proceeds of sales of biodiesel blends with no less than 1% 
15and no more than 10% biodiesel made during that time.
16 With respect to biodiesel, as defined in the Use Tax Act, 
17and biodiesel blends, as defined in the Use Tax Act, with more 
18than 10% but no more than 99% biodiesel, the tax imposed by 
19this Act does not apply to the proceeds of the selling price of 
20property transferred as an incident to the sale of service on 
21or after July 1, 2003 and on or before December 31, 2023. On 
22and after January 1, 2024 and on or before December 31, 2030, 
23the taxation of biodiesel, renewable diesel, and biodiesel 
24blends shall be as provided in Section 3-5.1 of the Use Tax 
25Act.
26 At the election of any registered serviceman made for each 
 
 
10300HB4951sam002- 424 -LRB103 38094 HLH 74177 a


1fiscal year, sales of service in which the aggregate annual 
2cost price of tangible personal property transferred as an 
3incident to the sales of service is less than 35%, or 75% in 
4the case of servicemen transferring prescription drugs or 
5servicemen engaged in graphic arts production, of the 
6aggregate annual total gross receipts from all sales of 
7service, the tax imposed by this Act shall be based on the 
8serviceman's cost price of the tangible personal property 
9transferred as an incident to the sale of those services.
10 Until July 1, 2022 and beginning again on July 1, 2023, the 
11tax shall be imposed at the rate of 1% on food prepared for 
12immediate consumption and transferred incident to a sale of 
13service subject to this Act or the Service Occupation Tax Act 
14by an entity licensed under the Hospital Licensing Act, the 
15Nursing Home Care Act, the Assisted Living and Shared Housing 
16Act, the ID/DD Community Care Act, the MC/DD Act, the 
17Specialized Mental Health Rehabilitation Act of 2013, or the 
18Child Care Act of 1969, or an entity that holds a permit issued 
19pursuant to the Life Care Facilities Act. Until July 1, 2022 
20and beginning again on July 1, 2023, the tax shall also be 
21imposed at the rate of 1% on food for human consumption that is 
22to be consumed off the premises where it is sold (other than 
23alcoholic beverages, food consisting of or infused with adult 
24use cannabis, soft drinks, and food that has been prepared for 
25immediate consumption and is not otherwise included in this 
26paragraph). 
 
 
10300HB4951sam002- 425 -LRB103 38094 HLH 74177 a


1 Beginning on July 1, 2022 and until July 1, 2023, the tax 
2shall be imposed at the rate of 0% on food prepared for 
3immediate consumption and transferred incident to a sale of 
4service subject to this Act or the Service Occupation Tax Act 
5by an entity licensed under the Hospital Licensing Act, the 
6Nursing Home Care Act, the Assisted Living and Shared Housing 
7Act, the ID/DD Community Care Act, the MC/DD Act, the 
8Specialized Mental Health Rehabilitation Act of 2013, or the 
9Child Care Act of 1969, or an entity that holds a permit issued 
10pursuant to the Life Care Facilities Act. Beginning on July 1, 
112022 and until July 1, 2023, the tax shall also be imposed at 
12the rate of 0% on food for human consumption that is to be 
13consumed off the premises where it is sold (other than 
14alcoholic beverages, food consisting of or infused with adult 
15use cannabis, soft drinks, and food that has been prepared for 
16immediate consumption and is not otherwise included in this 
17paragraph). 
18 The tax shall also be imposed at the rate of 1% on 
19prescription and nonprescription medicines, drugs, medical 
20appliances, products classified as Class III medical devices 
21by the United States Food and Drug Administration that are 
22used for cancer treatment pursuant to a prescription, as well 
23as any accessories and components related to those devices, 
24modifications to a motor vehicle for the purpose of rendering 
25it usable by a person with a disability, and insulin, blood 
26sugar testing materials, syringes, and needles used by human 
 
 
10300HB4951sam002- 426 -LRB103 38094 HLH 74177 a


1diabetics. For the purposes of this Section, until September 
21, 2009: the term "soft drinks" means any complete, finished, 
3ready-to-use, non-alcoholic drink, whether carbonated or not, 
4including, but not limited to, soda water, cola, fruit juice, 
5vegetable juice, carbonated water, and all other preparations 
6commonly known as soft drinks of whatever kind or description 
7that are contained in any closed or sealed bottle, can, 
8carton, or container, regardless of size; but "soft drinks" 
9does not include coffee, tea, non-carbonated water, infant 
10formula, milk or milk products as defined in the Grade A 
11Pasteurized Milk and Milk Products Act, or drinks containing 
1250% or more natural fruit or vegetable juice.
13 Notwithstanding any other provisions of this Act, 
14beginning September 1, 2009, "soft drinks" means non-alcoholic 
15beverages that contain natural or artificial sweeteners. "Soft 
16drinks" does not include beverages that contain milk or milk 
17products, soy, rice or similar milk substitutes, or greater 
18than 50% of vegetable or fruit juice by volume.
19 Until August 1, 2009, and notwithstanding any other 
20provisions of this Act, "food for human consumption that is to 
21be consumed off the premises where it is sold" includes all 
22food sold through a vending machine, except soft drinks and 
23food products that are dispensed hot from a vending machine, 
24regardless of the location of the vending machine. Beginning 
25August 1, 2009, and notwithstanding any other provisions of 
26this Act, "food for human consumption that is to be consumed 
 
 
10300HB4951sam002- 427 -LRB103 38094 HLH 74177 a


1off the premises where it is sold" includes all food sold 
2through a vending machine, except soft drinks, candy, and food 
3products that are dispensed hot from a vending machine, 
4regardless of the location of the vending machine. 
5 Notwithstanding any other provisions of this Act, 
6beginning September 1, 2009, "food for human consumption that 
7is to be consumed off the premises where it is sold" does not 
8include candy. For purposes of this Section, "candy" means a 
9preparation of sugar, honey, or other natural or artificial 
10sweeteners in combination with chocolate, fruits, nuts or 
11other ingredients or flavorings in the form of bars, drops, or 
12pieces. "Candy" does not include any preparation that contains 
13flour or requires refrigeration. 
14 Notwithstanding any other provisions of this Act, 
15beginning September 1, 2009, "nonprescription medicines and 
16drugs" does not include grooming and hygiene products. For 
17purposes of this Section, "grooming and hygiene products" 
18includes, but is not limited to, soaps and cleaning solutions, 
19shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
20lotions and screens, unless those products are available by 
21prescription only, regardless of whether the products meet the 
22definition of "over-the-counter-drugs". For the purposes of 
23this paragraph, "over-the-counter-drug" means a drug for human 
24use that contains a label that identifies the product as a drug 
25as required by 21 CFR 201.66. The "over-the-counter-drug" 
26label includes: 
 
 
10300HB4951sam002- 428 -LRB103 38094 HLH 74177 a


1  (A) a "Drug Facts" panel; or
2  (B) a statement of the "active ingredient(s)" with a 
3 list of those ingredients contained in the compound, 
4 substance or preparation.
5 Beginning on January 1, 2014 (the effective date of Public 
6Act 98-122), "prescription and nonprescription medicines and 
7drugs" includes medical cannabis purchased from a registered 
8dispensing organization under the Compassionate Use of Medical 
9Cannabis Program Act. 
10 As used in this Section, "adult use cannabis" means 
11cannabis subject to tax under the Cannabis Cultivation 
12Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
13and does not include cannabis subject to tax under the 
14Compassionate Use of Medical Cannabis Program Act. 
15 If the property that is acquired from a serviceman is 
16acquired outside Illinois and used outside Illinois before 
17being brought to Illinois for use here and is taxable under 
18this Act, the "selling price" on which the tax is computed 
19shall be reduced by an amount that represents a reasonable 
20allowance for depreciation for the period of prior 
21out-of-state use. No depreciation is allowed in cases where 
22the tax under this Act is imposed on lease receipts. 
23(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 
24102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, 
25Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; 
26103-154, eff. 6-30-23.)

 
 
10300HB4951sam002- 429 -LRB103 38094 HLH 74177 a


1 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
2 Sec. 9. Each serviceman required or authorized to collect 
3the tax herein imposed shall pay to the Department the amount 
4of such tax (except as otherwise provided) at the time when he 
5is required to file his return for the period during which such 
6tax was collected, less a discount of 2.1% prior to January 1, 
71990 and 1.75% on and after January 1, 1990, or $5 per calendar 
8year, whichever is greater, which is allowed to reimburse the 
9serviceman for expenses incurred in collecting the tax, 
10keeping records, preparing and filing returns, remitting the 
11tax and supplying data to the Department on request. When 
12determining the discount allowed under this Section, 
13servicemen shall include the amount of tax that would have 
14been due at the 1% rate but for the 0% rate imposed under this 
15amendatory Act of the 102nd General Assembly. The discount 
16under this Section is not allowed for the 1.25% portion of 
17taxes paid on aviation fuel that is subject to the revenue use 
18requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The 
19discount allowed under this Section is allowed only for 
20returns that are filed in the manner required by this Act. The 
21Department may disallow the discount for servicemen whose 
22certificate of registration is revoked at the time the return 
23is filed, but only if the Department's decision to revoke the 
24certificate of registration has become final. A serviceman 
25need not remit that part of any tax collected by him to the 
 
 
10300HB4951sam002- 430 -LRB103 38094 HLH 74177 a


1extent that he is required to pay and does pay the tax imposed 
2by the Service Occupation Tax Act with respect to his sale of 
3service involving the incidental transfer by him of the same 
4property.
5 Except as provided hereinafter in this Section, on or 
6before the twentieth day of each calendar month, such 
7serviceman shall file a return for the preceding calendar 
8month in accordance with reasonable Rules and Regulations to 
9be promulgated by the Department. Such return shall be filed 
10on a form prescribed by the Department and shall contain such 
11information as the Department may reasonably require. The 
12return shall include the gross receipts which were received 
13during the preceding calendar month or quarter on the 
14following items upon which tax would have been due but for the 
150% rate imposed under this amendatory Act of the 102nd General 
16Assembly: (i) food for human consumption that is to be 
17consumed off the premises where it is sold (other than 
18alcoholic beverages, food consisting of or infused with adult 
19use cannabis, soft drinks, and food that has been prepared for 
20immediate consumption); and (ii) food prepared for immediate 
21consumption and transferred incident to a sale of service 
22subject to this Act or the Service Occupation Tax Act by an 
23entity licensed under the Hospital Licensing Act, the Nursing 
24Home Care Act, the Assisted Living and Shared Housing Act, the 
25ID/DD Community Care Act, the MC/DD Act, the Specialized 
26Mental Health Rehabilitation Act of 2013, or the Child Care 
 
 
10300HB4951sam002- 431 -LRB103 38094 HLH 74177 a


1Act of 1969, or an entity that holds a permit issued pursuant 
2to the Life Care Facilities Act. The return shall also include 
3the amount of tax that would have been due on the items listed 
4in the previous sentence but for the 0% rate imposed under this 
5amendatory Act of the 102nd General Assembly. 
6 In the case of leases, except as otherwise provided in 
7this Act, the lessor, in collecting the tax, may collect for 
8each tax return period, only the tax applicable to that part of 
9the selling price actually received during such tax return 
10period. 
11 On and after January 1, 2018, with respect to servicemen 
12whose annual gross receipts average $20,000 or more, all 
13returns required to be filed pursuant to this Act shall be 
14filed electronically. Servicemen who demonstrate that they do 
15not have access to the Internet or demonstrate hardship in 
16filing electronically may petition the Department to waive the 
17electronic filing requirement. 
18 The Department may require returns to be filed on a 
19quarterly basis. If so required, a return for each calendar 
20quarter shall be filed on or before the twentieth day of the 
21calendar month following the end of such calendar quarter. The 
22taxpayer shall also file a return with the Department for each 
23of the first two months of each calendar quarter, on or before 
24the twentieth day of the following calendar month, stating:
25  1. The name of the seller;
26  2. The address of the principal place of business from 
 
 
10300HB4951sam002- 432 -LRB103 38094 HLH 74177 a


1 which he engages in business as a serviceman in this 
2 State;
3  3. The total amount of taxable receipts received by 
4 him during the preceding calendar month, including 
5 receipts from charge and time sales, but less all 
6 deductions allowed by law;
7  4. The amount of credit provided in Section 2d of this 
8 Act;
9  5. The amount of tax due;
10  5-5. The signature of the taxpayer; and
11  6. Such other reasonable information as the Department 
12 may require.
13 Each serviceman required or authorized to collect the tax 
14imposed by this Act on aviation fuel transferred as an 
15incident of a sale of service in this State during the 
16preceding calendar month shall, instead of reporting and 
17paying tax on aviation fuel as otherwise required by this 
18Section, report and pay such tax on a separate aviation fuel 
19tax return. The requirements related to the return shall be as 
20otherwise provided in this Section. Notwithstanding any other 
21provisions of this Act to the contrary, servicemen collecting 
22tax on aviation fuel shall file all aviation fuel tax returns 
23and shall make all aviation fuel tax payments by electronic 
24means in the manner and form required by the Department. For 
25purposes of this Section, "aviation fuel" means jet fuel and 
26aviation gasoline. 
 
 
10300HB4951sam002- 433 -LRB103 38094 HLH 74177 a


1 If a taxpayer fails to sign a return within 30 days after 
2the proper notice and demand for signature by the Department, 
3the return shall be considered valid and any amount shown to be 
4due on the return shall be deemed assessed.
5 Notwithstanding any other provision of this Act to the 
6contrary, servicemen subject to tax on cannabis shall file all 
7cannabis tax returns and shall make all cannabis tax payments 
8by electronic means in the manner and form required by the 
9Department.
10 Beginning October 1, 1993, a taxpayer who has an average 
11monthly tax liability of $150,000 or more shall make all 
12payments required by rules of the Department by electronic 
13funds transfer. Beginning October 1, 1994, a taxpayer who has 
14an average monthly tax liability of $100,000 or more shall 
15make all payments required by rules of the Department by 
16electronic funds transfer. Beginning October 1, 1995, a 
17taxpayer who has an average monthly tax liability of $50,000 
18or more shall make all payments required by rules of the 
19Department by electronic funds transfer. Beginning October 1, 
202000, a taxpayer who has an annual tax liability of $200,000 or 
21more shall make all payments required by rules of the 
22Department by electronic funds transfer. The term "annual tax 
23liability" shall be the sum of the taxpayer's liabilities 
24under this Act, and under all other State and local occupation 
25and use tax laws administered by the Department, for the 
26immediately preceding calendar year. The term "average monthly 
 
 
10300HB4951sam002- 434 -LRB103 38094 HLH 74177 a


1tax liability" means the sum of the taxpayer's liabilities 
2under this Act, and under all other State and local occupation 
3and use tax laws administered by the Department, for the 
4immediately preceding calendar year divided by 12. Beginning 
5on October 1, 2002, a taxpayer who has a tax liability in the 
6amount set forth in subsection (b) of Section 2505-210 of the 
7Department of Revenue Law shall make all payments required by 
8rules of the Department by electronic funds transfer.
9 Before August 1 of each year beginning in 1993, the 
10Department shall notify all taxpayers required to make 
11payments by electronic funds transfer. All taxpayers required 
12to make payments by electronic funds transfer shall make those 
13payments for a minimum of one year beginning on October 1.
14 Any taxpayer not required to make payments by electronic 
15funds transfer may make payments by electronic funds transfer 
16with the permission of the Department.
17 All taxpayers required to make payment by electronic funds 
18transfer and any taxpayers authorized to voluntarily make 
19payments by electronic funds transfer shall make those 
20payments in the manner authorized by the Department.
21 The Department shall adopt such rules as are necessary to 
22effectuate a program of electronic funds transfer and the 
23requirements of this Section.
24 If the serviceman is otherwise required to file a monthly 
25return and if the serviceman's average monthly tax liability 
26to the Department does not exceed $200, the Department may 
 
 
10300HB4951sam002- 435 -LRB103 38094 HLH 74177 a


1authorize his returns to be filed on a quarter annual basis, 
2with the return for January, February and March of a given year 
3being due by April 20 of such year; with the return for April, 
4May and June of a given year being due by July 20 of such year; 
5with the return for July, August and September of a given year 
6being due by October 20 of such year, and with the return for 
7October, November and December of a given year being due by 
8January 20 of the following year.
9 If the serviceman is otherwise required to file a monthly 
10or quarterly return and if the serviceman's average monthly 
11tax liability to the Department does not exceed $50, the 
12Department may authorize his returns to be filed on an annual 
13basis, with the return for a given year being due by January 20 
14of the following year.
15 Such quarter annual and annual returns, as to form and 
16substance, shall be subject to the same requirements as 
17monthly returns.
18 Notwithstanding any other provision in this Act concerning 
19the time within which a serviceman may file his return, in the 
20case of any serviceman who ceases to engage in a kind of 
21business which makes him responsible for filing returns under 
22this Act, such serviceman shall file a final return under this 
23Act with the Department not more than 1 month after 
24discontinuing such business.
25 Where a serviceman collects the tax with respect to the 
26selling price of property which he sells and the purchaser 
 
 
10300HB4951sam002- 436 -LRB103 38094 HLH 74177 a


1thereafter returns such property and the serviceman refunds 
2the selling price thereof to the purchaser, such serviceman 
3shall also refund, to the purchaser, the tax so collected from 
4the purchaser. When filing his return for the period in which 
5he refunds such tax to the purchaser, the serviceman may 
6deduct the amount of the tax so refunded by him to the 
7purchaser from any other Service Use Tax, Service Occupation 
8Tax, retailers' occupation tax or use tax which such 
9serviceman may be required to pay or remit to the Department, 
10as shown by such return, provided that the amount of the tax to 
11be deducted shall previously have been remitted to the 
12Department by such serviceman. If the serviceman shall not 
13previously have remitted the amount of such tax to the 
14Department, he shall be entitled to no deduction hereunder 
15upon refunding such tax to the purchaser.
16 Any serviceman filing a return hereunder shall also 
17include the total tax upon the selling price of tangible 
18personal property purchased for use by him as an incident to a 
19sale of service, and such serviceman shall remit the amount of 
20such tax to the Department when filing such return.
21 If experience indicates such action to be practicable, the 
22Department may prescribe and furnish a combination or joint 
23return which will enable servicemen, who are required to file 
24returns hereunder and also under the Service Occupation Tax 
25Act, to furnish all the return information required by both 
26Acts on the one form.
 
 
10300HB4951sam002- 437 -LRB103 38094 HLH 74177 a


1 Where the serviceman has more than one business registered 
2with the Department under separate registration hereunder, 
3such serviceman shall not file each return that is due as a 
4single return covering all such registered businesses, but 
5shall file separate returns for each such registered business.
6 Beginning January 1, 1990, each month the Department shall 
7pay into the State and Local Tax Reform Fund, a special fund in 
8the State Treasury, the net revenue realized for the preceding 
9month from the 1% tax imposed under this Act.
10 Beginning January 1, 1990, each month the Department shall 
11pay into the State and Local Sales Tax Reform Fund 20% of the 
12net revenue realized for the preceding month from the 6.25% 
13general rate on transfers of tangible personal property, other 
14than (i) tangible personal property which is purchased outside 
15Illinois at retail from a retailer and which is titled or 
16registered by an agency of this State's government and (ii) 
17aviation fuel sold on or after December 1, 2019. This 
18exception for aviation fuel only applies for so long as the 
19revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
2047133 are binding on the State.
21 For aviation fuel sold on or after December 1, 2019, each 
22month the Department shall pay into the State Aviation Program 
23Fund 20% of the net revenue realized for the preceding month 
24from the 6.25% general rate on the selling price of aviation 
25fuel, less an amount estimated by the Department to be 
26required for refunds of the 20% portion of the tax on aviation 
 
 
10300HB4951sam002- 438 -LRB103 38094 HLH 74177 a


1fuel under this Act, which amount shall be deposited into the 
2Aviation Fuel Sales Tax Refund Fund. The Department shall only 
3pay moneys into the State Aviation Program Fund and the 
4Aviation Fuel Sales Tax Refund Fund under this Act for so long 
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
6U.S.C. 47133 are binding on the State. 
7 Beginning August 1, 2000, each month the Department shall 
8pay into the State and Local Sales Tax Reform Fund 100% of the 
9net revenue realized for the preceding month from the 1.25% 
10rate on the selling price of motor fuel and gasohol.
11 Beginning October 1, 2009, each month the Department shall 
12pay into the Capital Projects Fund an amount that is equal to 
13an amount estimated by the Department to represent 80% of the 
14net revenue realized for the preceding month from the sale of 
15candy, grooming and hygiene products, and soft drinks that had 
16been taxed at a rate of 1% prior to September 1, 2009 but that 
17are now taxed at 6.25%. 
18 Beginning July 1, 2013, each month the Department shall 
19pay into the Underground Storage Tank Fund from the proceeds 
20collected under this Act, the Use Tax Act, the Service 
21Occupation Tax Act, and the Retailers' Occupation Tax Act an 
22amount equal to the average monthly deficit in the Underground 
23Storage Tank Fund during the prior year, as certified annually 
24by the Illinois Environmental Protection Agency, but the total 
25payment into the Underground Storage Tank Fund under this Act, 
26the Use Tax Act, the Service Occupation Tax Act, and the 
 
 
10300HB4951sam002- 439 -LRB103 38094 HLH 74177 a


1Retailers' Occupation Tax Act shall not exceed $18,000,000 in 
2any State fiscal year. As used in this paragraph, the "average 
3monthly deficit" shall be equal to the difference between the 
4average monthly claims for payment by the fund and the average 
5monthly revenues deposited into the fund, excluding payments 
6made pursuant to this paragraph. 
7 Beginning July 1, 2015, of the remainder of the moneys 
8received by the Department under the Use Tax Act, this Act, the 
9Service Occupation Tax Act, and the Retailers' Occupation Tax 
10Act, each month the Department shall deposit $500,000 into the 
11State Crime Laboratory Fund. 
12 Of the remainder of the moneys received by the Department 
13pursuant to this Act, (a) 1.75% thereof shall be paid into the 
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
15and after July 1, 1989, 3.8% thereof shall be paid into the 
16Build Illinois Fund; provided, however, that if in any fiscal 
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
18may be, of the moneys received by the Department and required 
19to be paid into the Build Illinois Fund pursuant to Section 3 
20of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
21Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
22Service Occupation Tax Act, such Acts being hereinafter called 
23the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
24may be, of moneys being hereinafter called the "Tax Act 
25Amount", and (2) the amount transferred to the Build Illinois 
26Fund from the State and Local Sales Tax Reform Fund shall be 
 
 
10300HB4951sam002- 440 -LRB103 38094 HLH 74177 a


1less than the Annual Specified Amount (as defined in Section 3 
2of the Retailers' Occupation Tax Act), an amount equal to the 
3difference shall be immediately paid into the Build Illinois 
4Fund from other moneys received by the Department pursuant to 
5the Tax Acts; and further provided, that if on the last 
6business day of any month the sum of (1) the Tax Act Amount 
7required to be deposited into the Build Illinois Bond Account 
8in the Build Illinois Fund during such month and (2) the amount 
9transferred during such month to the Build Illinois Fund from 
10the State and Local Sales Tax Reform Fund shall have been less 
11than 1/12 of the Annual Specified Amount, an amount equal to 
12the difference shall be immediately paid into the Build 
13Illinois Fund from other moneys received by the Department 
14pursuant to the Tax Acts; and, further provided, that in no 
15event shall the payments required under the preceding proviso 
16result in aggregate payments into the Build Illinois Fund 
17pursuant to this clause (b) for any fiscal year in excess of 
18the greater of (i) the Tax Act Amount or (ii) the Annual 
19Specified Amount for such fiscal year; and, further provided, 
20that the amounts payable into the Build Illinois Fund under 
21this clause (b) shall be payable only until such time as the 
22aggregate amount on deposit under each trust indenture 
23securing Bonds issued and outstanding pursuant to the Build 
24Illinois Bond Act is sufficient, taking into account any 
25future investment income, to fully provide, in accordance with 
26such indenture, for the defeasance of or the payment of the 
 
 
10300HB4951sam002- 441 -LRB103 38094 HLH 74177 a


1principal of, premium, if any, and interest on the Bonds 
2secured by such indenture and on any Bonds expected to be 
3issued thereafter and all fees and costs payable with respect 
4thereto, all as certified by the Director of the Bureau of the 
5Budget (now Governor's Office of Management and Budget). If on 
6the last business day of any month in which Bonds are 
7outstanding pursuant to the Build Illinois Bond Act, the 
8aggregate of the moneys deposited in the Build Illinois Bond 
9Account in the Build Illinois Fund in such month shall be less 
10than the amount required to be transferred in such month from 
11the Build Illinois Bond Account to the Build Illinois Bond 
12Retirement and Interest Fund pursuant to Section 13 of the 
13Build Illinois Bond Act, an amount equal to such deficiency 
14shall be immediately paid from other moneys received by the 
15Department pursuant to the Tax Acts to the Build Illinois 
16Fund; provided, however, that any amounts paid to the Build 
17Illinois Fund in any fiscal year pursuant to this sentence 
18shall be deemed to constitute payments pursuant to clause (b) 
19of the preceding sentence and shall reduce the amount 
20otherwise payable for such fiscal year pursuant to clause (b) 
21of the preceding sentence. The moneys received by the 
22Department pursuant to this Act and required to be deposited 
23into the Build Illinois Fund are subject to the pledge, claim 
24and charge set forth in Section 12 of the Build Illinois Bond 
25Act.
26 Subject to payment of amounts into the Build Illinois Fund 
 
 
10300HB4951sam002- 442 -LRB103 38094 HLH 74177 a


1as provided in the preceding paragraph or in any amendment 
2thereto hereafter enacted, the following specified monthly 
3installment of the amount requested in the certificate of the 
4Chairman of the Metropolitan Pier and Exposition Authority 
5provided under Section 8.25f of the State Finance Act, but not 
6in excess of the sums designated as "Total Deposit", shall be 
7deposited in the aggregate from collections under Section 9 of 
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
99 of the Service Occupation Tax Act, and Section 3 of the 
10Retailers' Occupation Tax Act into the McCormick Place 
11Expansion Project Fund in the specified fiscal years.

12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000
 
 
10300HB4951sam002- 443 -LRB103 38094 HLH 74177 a


12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021300,000,000 
172022300,000,000
182023300,000,000
192024 300,000,000
202025 300,000,000
212026 300,000,000
222027 375,000,000
232028 375,000,000
242029 375,000,000
252030 375,000,000
262031 375,000,000
 
 
10300HB4951sam002- 444 -LRB103 38094 HLH 74177 a


       
12032 375,000,000
22033 375,000,000
32034375,000,000
42035375,000,000
52036450,000,000
6and 
7each fiscal year
8thereafter that bonds
9are outstanding under
10Section 13.2 of the
11Metropolitan Pier and
12Exposition Authority Act,
13but not after fiscal year 2060.
14 Beginning July 20, 1993 and in each month of each fiscal 
15year thereafter, one-eighth of the amount requested in the 
16certificate of the Chairman of the Metropolitan Pier and 
17Exposition Authority for that fiscal year, less the amount 
18deposited into the McCormick Place Expansion Project Fund by 
19the State Treasurer in the respective month under subsection 
20(g) of Section 13 of the Metropolitan Pier and Exposition 
21Authority Act, plus cumulative deficiencies in the deposits 
22required under this Section for previous months and years, 
23shall be deposited into the McCormick Place Expansion Project 
24Fund, until the full amount requested for the fiscal year, but 
25not in excess of the amount specified above as "Total 
26Deposit", has been deposited.
 
 
10300HB4951sam002- 445 -LRB103 38094 HLH 74177 a


1 Subject to payment of amounts into the Capital Projects 
2Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
3and the McCormick Place Expansion Project Fund pursuant to the 
4preceding paragraphs or in any amendments thereto hereafter 
5enacted, for aviation fuel sold on or after December 1, 2019, 
6the Department shall each month deposit into the Aviation Fuel 
7Sales Tax Refund Fund an amount estimated by the Department to 
8be required for refunds of the 80% portion of the tax on 
9aviation fuel under this Act. The Department shall only 
10deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
11under this paragraph for so long as the revenue use 
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
13binding on the State. 
14 Subject to payment of amounts into the Build Illinois Fund 
15and the McCormick Place Expansion Project Fund pursuant to the 
16preceding paragraphs or in any amendments thereto hereafter 
17enacted, beginning July 1, 1993 and ending on September 30, 
182013, the Department shall each month pay into the Illinois 
19Tax Increment Fund 0.27% of 80% of the net revenue realized for 
20the preceding month from the 6.25% general rate on the selling 
21price of tangible personal property.
22 Subject to payment of amounts into the Build Illinois 
23Fund, the McCormick Place Expansion Project Fund, the Illinois 
24Tax Increment Fund, pursuant to the preceding paragraphs or in 
25any amendments to this Section hereafter enacted, beginning on 
26the first day of the first calendar month to occur on or after 
 
 
10300HB4951sam002- 446 -LRB103 38094 HLH 74177 a


1August 26, 2014 (the effective date of Public Act 98-1098), 
2each month, from the collections made under Section 9 of the 
3Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of 
4the Service Occupation Tax Act, and Section 3 of the 
5Retailers' Occupation Tax Act, the Department shall pay into 
6the Tax Compliance and Administration Fund, to be used, 
7subject to appropriation, to fund additional auditors and 
8compliance personnel at the Department of Revenue, an amount 
9equal to 1/12 of 5% of 80% of the cash receipts collected 
10during the preceding fiscal year by the Audit Bureau of the 
11Department under the Use Tax Act, the Service Use Tax Act, the 
12Service Occupation Tax Act, the Retailers' Occupation Tax Act, 
13and associated local occupation and use taxes administered by 
14the Department. 
15 Subject to payments of amounts into the Build Illinois 
16Fund, the McCormick Place Expansion Project Fund, the Illinois 
17Tax Increment Fund, and the Tax Compliance and Administration 
18Fund as provided in this Section, beginning on July 1, 2018 the 
19Department shall pay each month into the Downstate Public 
20Transportation Fund the moneys required to be so paid under 
21Section 2-3 of the Downstate Public Transportation Act.
22 Subject to successful execution and delivery of a 
23public-private agreement between the public agency and private 
24entity and completion of the civic build, beginning on July 1, 
252023, of the remainder of the moneys received by the 
26Department under the Use Tax Act, the Service Use Tax Act, the 
 
 
10300HB4951sam002- 447 -LRB103 38094 HLH 74177 a


1Service Occupation Tax Act, and this Act, the Department shall 
2deposit the following specified deposits in the aggregate from 
3collections under the Use Tax Act, the Service Use Tax Act, the 
4Service Occupation Tax Act, and the Retailers' Occupation Tax 
5Act, as required under Section 8.25g of the State Finance Act 
6for distribution consistent with the Public-Private 
7Partnership for Civic and Transit Infrastructure Project Act. 
8The moneys received by the Department pursuant to this Act and 
9required to be deposited into the Civic and Transit 
10Infrastructure Fund are subject to the pledge, claim, and 
11charge set forth in Section 25-55 of the Public-Private 
12Partnership for Civic and Transit Infrastructure Project Act. 
13As used in this paragraph, "civic build", "private entity", 
14"public-private agreement", and "public agency" have the 
15meanings provided in Section 25-10 of the Public-Private 
16Partnership for Civic and Transit Infrastructure Project Act. 
17  Fiscal Year............................Total Deposit 
18  2024....................................$200,000,000 
19  2025....................................$206,000,000 
20  2026....................................$212,200,000 
21  2027....................................$218,500,000 
22  2028....................................$225,100,000 
23  2029....................................$288,700,000 
24  2030....................................$298,900,000 
25  2031....................................$309,300,000 
26  2032....................................$320,100,000 
 
 
10300HB4951sam002- 448 -LRB103 38094 HLH 74177 a


1  2033....................................$331,200,000 
2  2034....................................$341,200,000 
3  2035....................................$351,400,000 
4  2036....................................$361,900,000 
5  2037....................................$372,800,000 
6  2038....................................$384,000,000 
7  2039....................................$395,500,000 
8  2040....................................$407,400,000 
9  2041....................................$419,600,000 
10  2042....................................$432,200,000 
11  2043....................................$445,100,000 
12 Beginning July 1, 2021 and until July 1, 2022, subject to 
13the payment of amounts into the State and Local Sales Tax 
14Reform Fund, the Build Illinois Fund, the McCormick Place 
15Expansion Project Fund, the Energy Infrastructure Fund, and 
16the Tax Compliance and Administration Fund as provided in this 
17Section, the Department shall pay each month into the Road 
18Fund the amount estimated to represent 16% of the net revenue 
19realized from the taxes imposed on motor fuel and gasohol. 
20Beginning July 1, 2022 and until July 1, 2023, subject to the 
21payment of amounts into the State and Local Sales Tax Reform 
22Fund, the Build Illinois Fund, the McCormick Place Expansion 
23Project Fund, the Illinois Tax Increment Fund, and the Tax 
24Compliance and Administration Fund as provided in this 
25Section, the Department shall pay each month into the Road 
26Fund the amount estimated to represent 32% of the net revenue 
 
 
10300HB4951sam002- 449 -LRB103 38094 HLH 74177 a


1realized from the taxes imposed on motor fuel and gasohol. 
2Beginning July 1, 2023 and until July 1, 2024, subject to the 
3payment of amounts into the State and Local Sales Tax Reform 
4Fund, the Build Illinois Fund, the McCormick Place Expansion 
5Project Fund, the Illinois Tax Increment Fund, and the Tax 
6Compliance and Administration Fund as provided in this 
7Section, the Department shall pay each month into the Road 
8Fund the amount estimated to represent 48% of the net revenue 
9realized from the taxes imposed on motor fuel and gasohol. 
10Beginning July 1, 2024 and until July 1, 2025, subject to the 
11payment of amounts into the State and Local Sales Tax Reform 
12Fund, the Build Illinois Fund, the McCormick Place Expansion 
13Project Fund, the Illinois Tax Increment Fund, and the Tax 
14Compliance and Administration Fund as provided in this 
15Section, the Department shall pay each month into the Road 
16Fund the amount estimated to represent 64% of the net revenue 
17realized from the taxes imposed on motor fuel and gasohol. 
18Beginning on July 1, 2025, subject to the payment of amounts 
19into the State and Local Sales Tax Reform Fund, the Build 
20Illinois Fund, the McCormick Place Expansion Project Fund, the 
21Illinois Tax Increment Fund, and the Tax Compliance and 
22Administration Fund as provided in this Section, the 
23Department shall pay each month into the Road Fund the amount 
24estimated to represent 80% of the net revenue realized from 
25the taxes imposed on motor fuel and gasohol. As used in this 
26paragraph "motor fuel" has the meaning given to that term in 
 
 
10300HB4951sam002- 450 -LRB103 38094 HLH 74177 a


1Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
2meaning given to that term in Section 3-40 of the Use Tax Act. 
3 Of the remainder of the moneys received by the Department 
4pursuant to this Act, 75% thereof shall be paid into the 
5General Revenue Fund of the State Treasury and 25% shall be 
6reserved in a special account and used only for the transfer to 
7the Common School Fund as part of the monthly transfer from the 
8General Revenue Fund in accordance with Section 8a of the 
9State Finance Act.
10 As soon as possible after the first day of each month, upon 
11certification of the Department of Revenue, the Comptroller 
12shall order transferred and the Treasurer shall transfer from 
13the General Revenue Fund to the Motor Fuel Tax Fund an amount 
14equal to 1.7% of 80% of the net revenue realized under this Act 
15for the second preceding month. Beginning April 1, 2000, this 
16transfer is no longer required and shall not be made.
17 Net revenue realized for a month shall be the revenue 
18collected by the State pursuant to this Act, less the amount 
19paid out during that month as refunds to taxpayers for 
20overpayment of liability.
21(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)

22 Section 75-15. The Service Occupation Tax Act is amended 
23by changing Sections 2, 3, 3-5, and 3-10 and by adding Section 
241.05 as follows:

 
 
10300HB4951sam002- 451 -LRB103 38094 HLH 74177 a


1 (35 ILCS 115/1.05 new)
2 Sec. 1.05. Legislative intent; leases. It is the intent of 
3the General Assembly in enacting this amendatory Act of the 
4103rd General Assembly to apply the tax imposed under this 
5Act, except as otherwise provided in this Act, to persons 
6engaged in the business of making sales of service (referred 
7to as "servicemen") on all tangible personal property, other 
8than motor vehicles, watercraft, aircraft, and semitrailers, 
9as defined in Section 1-187 of the Illinois Vehicle Code, that 
10are required to be registered with an agency of this State, 
11transferred by lease, as an incident of a sale of service, for 
12leases in effect, entered into, or renewed on or after January 
131, 2025.

14 (35 ILCS 115/2) (from Ch. 120, par. 439.102)
15 Sec. 2. In this Act: 
16 "Transfer" means any transfer of the title to property or 
17of the ownership of property whether or not the transferor 
18retains title as security for the payment of amounts due him 
19from the transferee. On and after January 1, 2025, "transfer" 
20also means any transfer of the possession or control of, the 
21right to possess or control, or a license to use, but not title 
22to, tangible personal property. 
23 "Lease" means a transfer of the possession or control of, 
24the right to possess or control, or a license to use, but not 
25title to, tangible personal property for a fixed or 
 
 
10300HB4951sam002- 452 -LRB103 38094 HLH 74177 a


1indeterminate term for consideration, regardless of the name 
2by which the transaction is called. "Lease" does not include a 
3lease entered into merely as a security agreement that does 
4not involve a transfer of possession or control from the 
5lessor to the lessee. 
6 On and after January 1, 2025, the term "sale", when used in 
7this Act with respect to tangible personal property, includes 
8a lease. 
9 "Cost Price" means the consideration paid by the 
10serviceman for a purchase, including, on and after January 1, 
112025, a lease, valued in money, whether paid in money or 
12otherwise, including cash, credits and services, and shall be 
13determined without any deduction on account of the supplier's 
14cost of the property sold or on account of any other expense 
15incurred by the supplier. When a serviceman contracts out part 
16or all of the services required in his sale of service, it 
17shall be presumed that the cost price to the serviceman of the 
18property transferred to him by his or her subcontractor is 
19equal to 50% of the subcontractor's charges to the serviceman 
20in the absence of proof of the consideration paid by the 
21subcontractor for the purchase of such property.
22 "Department" means the Department of Revenue.
23 "Person" means any natural individual, firm, partnership, 
24association, joint stock company, joint venture, public or 
25private corporation, limited liability company, and any 
26receiver, executor, trustee, guardian or other representative 
 
 
10300HB4951sam002- 453 -LRB103 38094 HLH 74177 a


1appointed by order of any court.
2 "Sale of Service" means any transaction except:
3 (a) A retail sale of tangible personal property taxable 
4under the Retailers' Occupation Tax Act or under the Use Tax 
5Act.
6 (b) A sale of tangible personal property for the purpose 
7of resale made in compliance with Section 2c of the Retailers' 
8Occupation Tax Act.
9 (c) Except as hereinafter provided, a sale or transfer of 
10tangible personal property as an incident to the rendering of 
11service for or by any governmental body or for or by any 
12corporation, society, association, foundation or institution 
13organized and operated exclusively for charitable, religious 
14or educational purposes or any not-for-profit corporation, 
15society, association, foundation, institution or organization 
16which has no compensated officers or employees and which is 
17organized and operated primarily for the recreation of persons 
1855 years of age or older. A limited liability company may 
19qualify for the exemption under this paragraph only if the 
20limited liability company is organized and operated 
21exclusively for educational purposes.
22 (d) (Blank).
23 (d-1) A sale or transfer of tangible personal property as 
24an incident to the rendering of service for owners or , 
25lessors, lessees, or shippers of tangible personal property 
26which is utilized by interstate carriers for hire for use as 
 
 
10300HB4951sam002- 454 -LRB103 38094 HLH 74177 a


1rolling stock moving in interstate commerce, and equipment 
2operated by a telecommunications provider, licensed as a 
3common carrier by the Federal Communications Commission, which 
4is permanently installed in or affixed to aircraft moving in 
5interstate commerce.
6 (d-1.1) On and after July 1, 2003 and through June 30, 
72004, a sale or transfer of a motor vehicle of the second 
8division with a gross vehicle weight in excess of 8,000 pounds 
9as an incident to the rendering of service if that motor 
10vehicle is subject to the commercial distribution fee imposed 
11under Section 3-815.1 of the Illinois Vehicle Code. Beginning 
12on July 1, 2004 and through June 30, 2005, the use in this 
13State of motor vehicles of the second division: (i) with a 
14gross vehicle weight rating in excess of 8,000 pounds; (ii) 
15that are subject to the commercial distribution fee imposed 
16under Section 3-815.1 of the Illinois Vehicle Code; and (iii) 
17that are primarily used for commercial purposes. Through June 
1830, 2005, this exemption applies to repair and replacement 
19parts added after the initial purchase of such a motor vehicle 
20if that motor vehicle is used in a manner that would qualify 
21for the rolling stock exemption otherwise provided for in this 
22Act. For purposes of this paragraph, "used for commercial 
23purposes" means the transportation of persons or property in 
24furtherance of any commercial or industrial enterprise whether 
25for-hire or not. 
26 (d-2) The repairing, reconditioning or remodeling, for a 
 
 
10300HB4951sam002- 455 -LRB103 38094 HLH 74177 a


1common carrier by rail, of tangible personal property which 
2belongs to such carrier for hire, and as to which such carrier 
3receives the physical possession of the repaired, 
4reconditioned or remodeled item of tangible personal property 
5in Illinois, and which such carrier transports, or shares with 
6another common carrier in the transportation of such property, 
7out of Illinois on a standard uniform bill of lading showing 
8the person who repaired, reconditioned or remodeled the 
9property as the shipper or consignor of such property to a 
10destination outside Illinois, for use outside Illinois.
11 (d-3) A sale or transfer of tangible personal property 
12which is produced by the seller thereof on special order in 
13such a way as to have made the applicable tax the Service 
14Occupation Tax or the Service Use Tax, rather than the 
15Retailers' Occupation Tax or the Use Tax, for an interstate 
16carrier by rail which receives the physical possession of such 
17property in Illinois, and which transports such property, or 
18shares with another common carrier in the transportation of 
19such property, out of Illinois on a standard uniform bill of 
20lading showing the seller of the property as the shipper or 
21consignor of such property to a destination outside Illinois, 
22for use outside Illinois.
23 (d-4) Until January 1, 1997, a sale, by a registered 
24serviceman paying tax under this Act to the Department, of 
25special order printed materials delivered outside Illinois and 
26which are not returned to this State, if delivery is made by 
 
 
10300HB4951sam002- 456 -LRB103 38094 HLH 74177 a


1the seller or agent of the seller, including an agent who 
2causes the product to be delivered outside Illinois by a 
3common carrier or the U.S. postal service.
4 (e) A sale or transfer of machinery and equipment used 
5primarily in the process of the manufacturing or assembling, 
6either in an existing, an expanded or a new manufacturing 
7facility, of tangible personal property for wholesale or 
8retail sale or lease, whether such sale or lease is made 
9directly by the manufacturer or by some other person, whether 
10the materials used in the process are owned by the 
11manufacturer or some other person, or whether such sale or 
12lease is made apart from or as an incident to the seller's 
13engaging in a service occupation and the applicable tax is a 
14Service Occupation Tax or Service Use Tax, rather than 
15Retailers' Occupation Tax or Use Tax. The exemption provided 
16by this paragraph (e) includes production related tangible 
17personal property, as defined in Section 3-50 of the Use Tax 
18Act, purchased on or after July 1, 2019. The exemption 
19provided by this paragraph (e) does not include machinery and 
20equipment used in (i) the generation of electricity for 
21wholesale or retail sale; (ii) the generation or treatment of 
22natural or artificial gas for wholesale or retail sale that is 
23delivered to customers through pipes, pipelines, or mains; or 
24(iii) the treatment of water for wholesale or retail sale that 
25is delivered to customers through pipes, pipelines, or mains. 
26The provisions of Public Act 98-583 are declaratory of 
 
 
10300HB4951sam002- 457 -LRB103 38094 HLH 74177 a


1existing law as to the meaning and scope of this exemption. The 
2exemption under this subsection (e) is exempt from the 
3provisions of Section 3-75. 
4 (f) Until July 1, 2003, the sale or transfer of 
5distillation machinery and equipment, sold as a unit or kit 
6and assembled or installed by the retailer, which machinery 
7and equipment is certified by the user to be used only for the 
8production of ethyl alcohol that will be used for consumption 
9as motor fuel or as a component of motor fuel for the personal 
10use of such user and not subject to sale or resale.
11 (g) At the election of any serviceman not required to be 
12otherwise registered as a retailer under Section 2a of the 
13Retailers' Occupation Tax Act, made for each fiscal year sales 
14of service in which the aggregate annual cost price of 
15tangible personal property transferred as an incident to the 
16sales of service is less than 35% (75% in the case of 
17servicemen transferring prescription drugs or servicemen 
18engaged in graphic arts production) of the aggregate annual 
19total gross receipts from all sales of service. The purchase 
20of such tangible personal property by the serviceman shall be 
21subject to tax under the Retailers' Occupation Tax Act and the 
22Use Tax Act. However, if a primary serviceman who has made the 
23election described in this paragraph subcontracts service work 
24to a secondary serviceman who has also made the election 
25described in this paragraph, the primary serviceman does not 
26incur a Use Tax liability if the secondary serviceman (i) has 
 
 
10300HB4951sam002- 458 -LRB103 38094 HLH 74177 a


1paid or will pay Use Tax on his or her cost price of any 
2tangible personal property transferred to the primary 
3serviceman and (ii) certifies that fact in writing to the 
4primary serviceman.
5 Tangible personal property transferred incident to the 
6completion of a maintenance agreement is exempt from the tax 
7imposed pursuant to this Act.
8 Exemption (e) also includes machinery and equipment used 
9in the general maintenance or repair of such exempt machinery 
10and equipment or for in-house manufacture of exempt machinery 
11and equipment. On and after July 1, 2017, exemption (e) also 
12includes graphic arts machinery and equipment, as defined in 
13paragraph (5) of Section 3-5. The machinery and equipment 
14exemption does not include machinery and equipment used in (i) 
15the generation of electricity for wholesale or retail sale; 
16(ii) the generation or treatment of natural or artificial gas 
17for wholesale or retail sale that is delivered to customers 
18through pipes, pipelines, or mains; or (iii) the treatment of 
19water for wholesale or retail sale that is delivered to 
20customers through pipes, pipelines, or mains. The provisions 
21of Public Act 98-583 are declaratory of existing law as to the 
22meaning and scope of this exemption. For the purposes of 
23exemption (e), each of these terms shall have the following 
24meanings: (1) "manufacturing process" shall mean the 
25production of any article of tangible personal property, 
26whether such article is a finished product or an article for 
 
 
10300HB4951sam002- 459 -LRB103 38094 HLH 74177 a


1use in the process of manufacturing or assembling a different 
2article of tangible personal property, by procedures commonly 
3regarded as manufacturing, processing, fabricating, or 
4refining which changes some existing material or materials 
5into a material with a different form, use or name. In relation 
6to a recognized integrated business composed of a series of 
7operations which collectively constitute manufacturing, or 
8individually constitute manufacturing operations, the 
9manufacturing process shall be deemed to commence with the 
10first operation or stage of production in the series, and 
11shall not be deemed to end until the completion of the final 
12product in the last operation or stage of production in the 
13series; and further for purposes of exemption (e), 
14photoprocessing is deemed to be a manufacturing process of 
15tangible personal property for wholesale or retail sale; (2) 
16"assembling process" shall mean the production of any article 
17of tangible personal property, whether such article is a 
18finished product or an article for use in the process of 
19manufacturing or assembling a different article of tangible 
20personal property, by the combination of existing materials in 
21a manner commonly regarded as assembling which results in a 
22material of a different form, use or name; (3) "machinery" 
23shall mean major mechanical machines or major components of 
24such machines contributing to a manufacturing or assembling 
25process; and (4) "equipment" shall include any independent 
26device or tool separate from any machinery but essential to an 
 
 
10300HB4951sam002- 460 -LRB103 38094 HLH 74177 a


1integrated manufacturing or assembly process; including 
2computers used primarily in a manufacturer's computer assisted 
3design, computer assisted manufacturing (CAD/CAM) system; or 
4any subunit or assembly comprising a component of any 
5machinery or auxiliary, adjunct or attachment parts of 
6machinery, such as tools, dies, jigs, fixtures, patterns and 
7molds; or any parts which require periodic replacement in the 
8course of normal operation; but shall not include hand tools. 
9Equipment includes chemicals or chemicals acting as catalysts 
10but only if the chemicals or chemicals acting as catalysts 
11effect a direct and immediate change upon a product being 
12manufactured or assembled for wholesale or retail sale or 
13lease. The purchaser of such machinery and equipment who has 
14an active resale registration number shall furnish such number 
15to the seller at the time of purchase. The purchaser of such 
16machinery and equipment and tools without an active resale 
17registration number shall furnish to the seller a certificate 
18of exemption stating facts establishing the exemption, which 
19certificate shall be available to the Department for 
20inspection or audit.
21 Except as provided in Section 2d of this Act, the rolling 
22stock exemption applies to rolling stock used by an interstate 
23carrier for hire, even just between points in Illinois, if 
24such rolling stock transports, for hire, persons whose 
25journeys or property whose shipments originate or terminate 
26outside Illinois.
 
 
10300HB4951sam002- 461 -LRB103 38094 HLH 74177 a


1 Any informal rulings, opinions or letters issued by the 
2Department in response to an inquiry or request for any 
3opinion from any person regarding the coverage and 
4applicability of exemption (e) to specific devices shall be 
5published, maintained as a public record, and made available 
6for public inspection and copying. If the informal ruling, 
7opinion or letter contains trade secrets or other confidential 
8information, where possible the Department shall delete such 
9information prior to publication. Whenever such informal 
10rulings, opinions, or letters contain any policy of general 
11applicability, the Department shall formulate and adopt such 
12policy as a rule in accordance with the provisions of the 
13Illinois Administrative Procedure Act.
14 On and after July 1, 1987, no entity otherwise eligible 
15under exemption (c) of this Section shall make tax-free 
16purchases unless it has an active exemption identification 
17number issued by the Department.
18 "Serviceman" means any person who is engaged in the 
19occupation of making sales of service.
20 "Sale at Retail" means "sale at retail" as defined in the 
21Retailers' Occupation Tax Act, which, on and after January 1, 
222025, is defined to include leases.
23 "Supplier" means any person who makes sales of tangible 
24personal property to servicemen for the purpose of resale as 
25an incident to a sale of service.
26(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 
 
 
10300HB4951sam002- 462 -LRB103 38094 HLH 74177 a


1100-863, eff. 8-14-18; 101-9, eff. 6-5-19; 101-604, eff. 
212-13-19.)

3 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
4 Sec. 3. Tax imposed. A tax is imposed upon all persons 
5engaged in the business of making sales of service (referred 
6to as "servicemen") on all tangible personal property 
7transferred, including, on and after January 1, 2025, 
8transferred by lease, as an incident of a sale of service, 
9including computer software, and including photographs, 
10negatives, and positives that are the product of 
11photoprocessing, but not including products of photoprocessing 
12produced for use in motion pictures for public commercial 
13exhibition. Beginning January 1, 2001, prepaid telephone 
14calling arrangements shall be considered tangible personal 
15property subject to the tax imposed under this Act regardless 
16of the form in which those arrangements may be embodied, 
17transmitted, or fixed by any method now known or hereafter 
18developed. Sales of (1) electricity delivered to customers by 
19wire; (2) natural or artificial gas that is delivered to 
20customers through pipes, pipelines, or mains; and (3) water 
21that is delivered to customers through pipes, pipelines, or 
22mains are not subject to tax under this Act. The provisions of 
23this amendatory Act of the 98th General Assembly are 
24declaratory of existing law as to the meaning and scope of this 
25Act. 
 
 
10300HB4951sam002- 463 -LRB103 38094 HLH 74177 a


1 The imposition of the tax under this Act on tangible 
2personal property transferred by lease by persons engaged in 
3the business of making sales of service applies to leases in 
4effect, entered into, or renewed on or after January 1, 2025. 
5In the case of leases, except as otherwise provided in this 
6Act, the serviceman who is a lessor must remit for each tax 
7return period only the tax applicable to that part of the 
8selling price actually received during such tax return period. 
9(Source: P.A. 98-583, eff. 1-1-14.)

10 (35 ILCS 115/3-5)
11 Sec. 3-5. Exemptions. The following tangible personal 
12property is exempt from the tax imposed by this Act:
13 (1) Personal property sold by a corporation, society, 
14association, foundation, institution, or organization, other 
15than a limited liability company, that is organized and 
16operated as a not-for-profit service enterprise for the 
17benefit of persons 65 years of age or older if the personal 
18property was not purchased by the enterprise for the purpose 
19of resale by the enterprise.
20 (2) Personal property purchased by a not-for-profit 
21Illinois county fair association for use in conducting, 
22operating, or promoting the county fair.
23 (3) Personal property purchased by any not-for-profit arts 
24or cultural organization that establishes, by proof required 
25by the Department by rule, that it has received an exemption 
 
 
10300HB4951sam002- 464 -LRB103 38094 HLH 74177 a


1under Section 501(c)(3) of the Internal Revenue Code and that 
2is organized and operated primarily for the presentation or 
3support of arts or cultural programming, activities, or 
4services. These organizations include, but are not limited to, 
5music and dramatic arts organizations such as symphony 
6orchestras and theatrical groups, arts and cultural service 
7organizations, local arts councils, visual arts organizations, 
8and media arts organizations. On and after July 1, 2001 (the 
9effective date of Public Act 92-35), however, an entity 
10otherwise eligible for this exemption shall not make tax-free 
11purchases unless it has an active identification number issued 
12by the Department.
13 (4) Legal tender, currency, medallions, or gold or silver 
14coinage issued by the State of Illinois, the government of the 
15United States of America, or the government of any foreign 
16country, and bullion.
17 (5) Until July 1, 2003 and beginning again on September 1, 
182004 through August 30, 2014, graphic arts machinery and 
19equipment, including repair and replacement parts, both new 
20and used, and including that manufactured on special order or 
21purchased for lease, certified by the purchaser to be used 
22primarily for graphic arts production. Equipment includes 
23chemicals or chemicals acting as catalysts but only if the 
24chemicals or chemicals acting as catalysts effect a direct and 
25immediate change upon a graphic arts product. Beginning on 
26July 1, 2017, graphic arts machinery and equipment is included 
 
 
10300HB4951sam002- 465 -LRB103 38094 HLH 74177 a


1in the manufacturing and assembling machinery and equipment 
2exemption under Section 2 of this Act.
3 (6) Personal property sold by a teacher-sponsored student 
4organization affiliated with an elementary or secondary school 
5located in Illinois.
6 (7) Farm machinery and equipment, both new and used, 
7including that manufactured on special order, certified by the 
8purchaser to be used primarily for production agriculture or 
9State or federal agricultural programs, including individual 
10replacement parts for the machinery and equipment, including 
11machinery and equipment purchased for lease, and including 
12implements of husbandry defined in Section 1-130 of the 
13Illinois Vehicle Code, farm machinery and agricultural 
14chemical and fertilizer spreaders, and nurse wagons required 
15to be registered under Section 3-809 of the Illinois Vehicle 
16Code, but excluding other motor vehicles required to be 
17registered under the Illinois Vehicle Code. Horticultural 
18polyhouses or hoop houses used for propagating, growing, or 
19overwintering plants shall be considered farm machinery and 
20equipment under this item (7). Agricultural chemical tender 
21tanks and dry boxes shall include units sold separately from a 
22motor vehicle required to be licensed and units sold mounted 
23on a motor vehicle required to be licensed if the selling price 
24of the tender is separately stated.
25 Farm machinery and equipment shall include precision 
26farming equipment that is installed or purchased to be 
 
 
10300HB4951sam002- 466 -LRB103 38094 HLH 74177 a


1installed on farm machinery and equipment, including, but not 
2limited to, tractors, harvesters, sprayers, planters, seeders, 
3or spreaders. Precision farming equipment includes, but is not 
4limited to, soil testing sensors, computers, monitors, 
5software, global positioning and mapping systems, and other 
6such equipment.
7 Farm machinery and equipment also includes computers, 
8sensors, software, and related equipment used primarily in the 
9computer-assisted operation of production agriculture 
10facilities, equipment, and activities such as, but not limited 
11to, the collection, monitoring, and correlation of animal and 
12crop data for the purpose of formulating animal diets and 
13agricultural chemicals. 
14 Beginning on January 1, 2024, farm machinery and equipment 
15also includes electrical power generation equipment used 
16primarily for production agriculture. 
17 This item (7) is exempt from the provisions of Section 
183-55.
19 (8) Until June 30, 2013, fuel and petroleum products sold 
20to or used by an air common carrier, certified by the carrier 
21to be used for consumption, shipment, or storage in the 
22conduct of its business as an air common carrier, for a flight 
23destined for or returning from a location or locations outside 
24the United States without regard to previous or subsequent 
25domestic stopovers.
26 Beginning July 1, 2013, fuel and petroleum products sold 
 
 
10300HB4951sam002- 467 -LRB103 38094 HLH 74177 a


1to or used by an air carrier, certified by the carrier to be 
2used for consumption, shipment, or storage in the conduct of 
3its business as an air common carrier, for a flight that (i) is 
4engaged in foreign trade or is engaged in trade between the 
5United States and any of its possessions and (ii) transports 
6at least one individual or package for hire from the city of 
7origination to the city of final destination on the same 
8aircraft, without regard to a change in the flight number of 
9that aircraft. 
10 (9) Proceeds of mandatory service charges separately 
11stated on customers' bills for the purchase and consumption of 
12food and beverages, to the extent that the proceeds of the 
13service charge are in fact turned over as tips or as a 
14substitute for tips to the employees who participate directly 
15in preparing, serving, hosting or cleaning up the food or 
16beverage function with respect to which the service charge is 
17imposed.
18 (10) Until July 1, 2003, oil field exploration, drilling, 
19and production equipment, including (i) rigs and parts of 
20rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) 
21pipe and tubular goods, including casing and drill strings, 
22(iii) pumps and pump-jack units, (iv) storage tanks and flow 
23lines, (v) any individual replacement part for oil field 
24exploration, drilling, and production equipment, and (vi) 
25machinery and equipment purchased for lease; but excluding 
26motor vehicles required to be registered under the Illinois 
 
 
10300HB4951sam002- 468 -LRB103 38094 HLH 74177 a


1Vehicle Code.
2 (11) Photoprocessing machinery and equipment, including 
3repair and replacement parts, both new and used, including 
4that manufactured on special order, certified by the purchaser 
5to be used primarily for photoprocessing, and including 
6photoprocessing machinery and equipment purchased for lease.
7 (12) Until July 1, 2028, coal and aggregate exploration, 
8mining, off-highway hauling, processing, maintenance, and 
9reclamation equipment, including replacement parts and 
10equipment, and including equipment purchased for lease, but 
11excluding motor vehicles required to be registered under the 
12Illinois Vehicle Code. The changes made to this Section by 
13Public Act 97-767 apply on and after July 1, 2003, but no claim 
14for credit or refund is allowed on or after August 16, 2013 
15(the effective date of Public Act 98-456) for such taxes paid 
16during the period beginning July 1, 2003 and ending on August 
1716, 2013 (the effective date of Public Act 98-456).
18 (13) Beginning January 1, 1992 and through June 30, 2016, 
19food for human consumption that is to be consumed off the 
20premises where it is sold (other than alcoholic beverages, 
21soft drinks and food that has been prepared for immediate 
22consumption) and prescription and non-prescription medicines, 
23drugs, medical appliances, and insulin, urine testing 
24materials, syringes, and needles used by diabetics, for human 
25use, when purchased for use by a person receiving medical 
26assistance under Article V of the Illinois Public Aid Code who 
 
 
10300HB4951sam002- 469 -LRB103 38094 HLH 74177 a


1resides in a licensed long-term care facility, as defined in 
2the Nursing Home Care Act, or in a licensed facility as defined 
3in the ID/DD Community Care Act, the MC/DD Act, or the 
4Specialized Mental Health Rehabilitation Act of 2013.
5 (14) Semen used for artificial insemination of livestock 
6for direct agricultural production.
7 (15) Horses, or interests in horses, registered with and 
8meeting the requirements of any of the Arabian Horse Club 
9Registry of America, Appaloosa Horse Club, American Quarter 
10Horse Association, United States Trotting Association, or 
11Jockey Club, as appropriate, used for purposes of breeding or 
12racing for prizes. This item (15) is exempt from the 
13provisions of Section 3-55, and the exemption provided for 
14under this item (15) applies for all periods beginning May 30, 
151995, but no claim for credit or refund is allowed on or after 
16January 1, 2008 (the effective date of Public Act 95-88) for 
17such taxes paid during the period beginning May 30, 2000 and 
18ending on January 1, 2008 (the effective date of Public Act 
1995-88).
20 (16) Computers and communications equipment utilized for 
21any hospital purpose and equipment used in the diagnosis, 
22analysis, or treatment of hospital patients sold to a lessor 
23who leases the equipment, under a lease of one year or longer 
24executed or in effect at the time of the purchase, to a 
25hospital that has been issued an active tax exemption 
26identification number by the Department under Section 1g of 
 
 
10300HB4951sam002- 470 -LRB103 38094 HLH 74177 a


1the Retailers' Occupation Tax Act.
2 (17) Personal property sold to a lessor who leases the 
3property, under a lease of one year or longer executed or in 
4effect at the time of the purchase, to a governmental body that 
5has been issued an active tax exemption identification number 
6by the Department under Section 1g of the Retailers' 
7Occupation Tax Act.
8 (18) Beginning with taxable years ending on or after 
9December 31, 1995 and ending with taxable years ending on or 
10before December 31, 2004, personal property that is donated 
11for disaster relief to be used in a State or federally declared 
12disaster area in Illinois or bordering Illinois by a 
13manufacturer or retailer that is registered in this State to a 
14corporation, society, association, foundation, or institution 
15that has been issued a sales tax exemption identification 
16number by the Department that assists victims of the disaster 
17who reside within the declared disaster area.
18 (19) Beginning with taxable years ending on or after 
19December 31, 1995 and ending with taxable years ending on or 
20before December 31, 2004, personal property that is used in 
21the performance of infrastructure repairs in this State, 
22including, but not limited to, municipal roads and streets, 
23access roads, bridges, sidewalks, waste disposal systems, 
24water and sewer line extensions, water distribution and 
25purification facilities, storm water drainage and retention 
26facilities, and sewage treatment facilities, resulting from a 
 
 
10300HB4951sam002- 471 -LRB103 38094 HLH 74177 a


1State or federally declared disaster in Illinois or bordering 
2Illinois when such repairs are initiated on facilities located 
3in the declared disaster area within 6 months after the 
4disaster.
5 (20) Beginning July 1, 1999, game or game birds sold at a 
6"game breeding and hunting preserve area" as that term is used 
7in the Wildlife Code. This paragraph is exempt from the 
8provisions of Section 3-55.
9 (21) A motor vehicle, as that term is defined in Section 
101-146 of the Illinois Vehicle Code, that is donated to a 
11corporation, limited liability company, society, association, 
12foundation, or institution that is determined by the 
13Department to be organized and operated exclusively for 
14educational purposes. For purposes of this exemption, "a 
15corporation, limited liability company, society, association, 
16foundation, or institution organized and operated exclusively 
17for educational purposes" means all tax-supported public 
18schools, private schools that offer systematic instruction in 
19useful branches of learning by methods common to public 
20schools and that compare favorably in their scope and 
21intensity with the course of study presented in tax-supported 
22schools, and vocational or technical schools or institutes 
23organized and operated exclusively to provide a course of 
24study of not less than 6 weeks duration and designed to prepare 
25individuals to follow a trade or to pursue a manual, 
26technical, mechanical, industrial, business, or commercial 
 
 
10300HB4951sam002- 472 -LRB103 38094 HLH 74177 a


1occupation.
2 (22) Beginning January 1, 2000, personal property, 
3including food, purchased through fundraising events for the 
4benefit of a public or private elementary or secondary school, 
5a group of those schools, or one or more school districts if 
6the events are sponsored by an entity recognized by the school 
7district that consists primarily of volunteers and includes 
8parents and teachers of the school children. This paragraph 
9does not apply to fundraising events (i) for the benefit of 
10private home instruction or (ii) for which the fundraising 
11entity purchases the personal property sold at the events from 
12another individual or entity that sold the property for the 
13purpose of resale by the fundraising entity and that profits 
14from the sale to the fundraising entity. This paragraph is 
15exempt from the provisions of Section 3-55.
16 (23) Beginning January 1, 2000 and through December 31, 
172001, new or used automatic vending machines that prepare and 
18serve hot food and beverages, including coffee, soup, and 
19other items, and replacement parts for these machines. 
20Beginning January 1, 2002 and through June 30, 2003, machines 
21and parts for machines used in commercial, coin-operated 
22amusement and vending business if a use or occupation tax is 
23paid on the gross receipts derived from the use of the 
24commercial, coin-operated amusement and vending machines. This 
25paragraph is exempt from the provisions of Section 3-55.
26 (24) Beginning on August 2, 2001 (the effective date of 
 
 
10300HB4951sam002- 473 -LRB103 38094 HLH 74177 a


1Public Act 92-227), computers and communications equipment 
2utilized for any hospital purpose and equipment used in the 
3diagnosis, analysis, or treatment of hospital patients sold to 
4a lessor who leases the equipment, under a lease of one year or 
5longer executed or in effect at the time of the purchase, to a 
6hospital that has been issued an active tax exemption 
7identification number by the Department under Section 1g of 
8the Retailers' Occupation Tax Act. This paragraph is exempt 
9from the provisions of Section 3-55.
10 (25) Beginning on August 2, 2001 (the effective date of 
11Public Act 92-227), personal property sold to a lessor who 
12leases the property, under a lease of one year or longer 
13executed or in effect at the time of the purchase, to a 
14governmental body that has been issued an active tax exemption 
15identification number by the Department under Section 1g of 
16the Retailers' Occupation Tax Act. This paragraph is exempt 
17from the provisions of Section 3-55.
18 (26) Beginning on January 1, 2002 and through June 30, 
192016, tangible personal property purchased from an Illinois 
20retailer by a taxpayer engaged in centralized purchasing 
21activities in Illinois who will, upon receipt of the property 
22in Illinois, temporarily store the property in Illinois (i) 
23for the purpose of subsequently transporting it outside this 
24State for use or consumption thereafter solely outside this 
25State or (ii) for the purpose of being processed, fabricated, 
26or manufactured into, attached to, or incorporated into other 
 
 
10300HB4951sam002- 474 -LRB103 38094 HLH 74177 a


1tangible personal property to be transported outside this 
2State and thereafter used or consumed solely outside this 
3State. The Director of Revenue shall, pursuant to rules 
4adopted in accordance with the Illinois Administrative 
5Procedure Act, issue a permit to any taxpayer in good standing 
6with the Department who is eligible for the exemption under 
7this paragraph (26). The permit issued under this paragraph 
8(26) shall authorize the holder, to the extent and in the 
9manner specified in the rules adopted under this Act, to 
10purchase tangible personal property from a retailer exempt 
11from the taxes imposed by this Act. Taxpayers shall maintain 
12all necessary books and records to substantiate the use and 
13consumption of all such tangible personal property outside of 
14the State of Illinois.
15 (27) Beginning January 1, 2008, tangible personal property 
16used in the construction or maintenance of a community water 
17supply, as defined under Section 3.145 of the Environmental 
18Protection Act, that is operated by a not-for-profit 
19corporation that holds a valid water supply permit issued 
20under Title IV of the Environmental Protection Act. This 
21paragraph is exempt from the provisions of Section 3-55. 
22 (28) Tangible personal property sold to a 
23public-facilities corporation, as described in Section 
2411-65-10 of the Illinois Municipal Code, for purposes of 
25constructing or furnishing a municipal convention hall, but 
26only if the legal title to the municipal convention hall is 
 
 
10300HB4951sam002- 475 -LRB103 38094 HLH 74177 a


1transferred to the municipality without any further 
2consideration by or on behalf of the municipality at the time 
3of the completion of the municipal convention hall or upon the 
4retirement or redemption of any bonds or other debt 
5instruments issued by the public-facilities corporation in 
6connection with the development of the municipal convention 
7hall. This exemption includes existing public-facilities 
8corporations as provided in Section 11-65-25 of the Illinois 
9Municipal Code. This paragraph is exempt from the provisions 
10of Section 3-55. 
11 (29) Beginning January 1, 2010 and continuing through 
12December 31, 2029, materials, parts, equipment, components, 
13and furnishings incorporated into or upon an aircraft as part 
14of the modification, refurbishment, completion, replacement, 
15repair, or maintenance of the aircraft. This exemption 
16includes consumable supplies used in the modification, 
17refurbishment, completion, replacement, repair, and 
18maintenance of aircraft. However, until January 1, 2024, this 
19exemption excludes any materials, parts, equipment, 
20components, and consumable supplies used in the modification, 
21replacement, repair, and maintenance of aircraft engines or 
22power plants, whether such engines or power plants are 
23installed or uninstalled upon any such aircraft. "Consumable 
24supplies" include, but are not limited to, adhesive, tape, 
25sandpaper, general purpose lubricants, cleaning solution, 
26latex gloves, and protective films. 
 
 
10300HB4951sam002- 476 -LRB103 38094 HLH 74177 a


1 Beginning January 1, 2010 and continuing through December 
231, 2023, this exemption applies only to the transfer of 
3qualifying tangible personal property incident to the 
4modification, refurbishment, completion, replacement, repair, 
5or maintenance of an aircraft by persons who (i) hold an Air 
6Agency Certificate and are empowered to operate an approved 
7repair station by the Federal Aviation Administration, (ii) 
8have a Class IV Rating, and (iii) conduct operations in 
9accordance with Part 145 of the Federal Aviation Regulations. 
10The exemption does not include aircraft operated by a 
11commercial air carrier providing scheduled passenger air 
12service pursuant to authority issued under Part 121 or Part 
13129 of the Federal Aviation Regulations. From January 1, 2024 
14through December 31, 2029, this exemption applies only to the 
15use of qualifying tangible personal property by: (A) persons 
16who modify, refurbish, complete, repair, replace, or maintain 
17aircraft and who (i) hold an Air Agency Certificate and are 
18empowered to operate an approved repair station by the Federal 
19Aviation Administration, (ii) have a Class IV Rating, and 
20(iii) conduct operations in accordance with Part 145 of the 
21Federal Aviation Regulations; and (B) persons who engage in 
22the modification, replacement, repair, and maintenance of 
23aircraft engines or power plants without regard to whether or 
24not those persons meet the qualifications of item (A).
25 The changes made to this paragraph (29) by Public Act 
2698-534 are declarative of existing law. It is the intent of the 
 
 
10300HB4951sam002- 477 -LRB103 38094 HLH 74177 a


1General Assembly that the exemption under this paragraph (29) 
2applies continuously from January 1, 2010 through December 31, 
32024; however, no claim for credit or refund is allowed for 
4taxes paid as a result of the disallowance of this exemption on 
5or after January 1, 2015 and prior to February 5, 2020 (the 
6effective date of Public Act 101-629).
7 (30) Beginning January 1, 2017 and through December 31, 
82026, menstrual pads, tampons, and menstrual cups. 
9 (31) Tangible personal property transferred to a purchaser 
10who is exempt from tax by operation of federal law. This 
11paragraph is exempt from the provisions of Section 3-55. 
12 (32) Qualified tangible personal property used in the 
13construction or operation of a data center that has been 
14granted a certificate of exemption by the Department of 
15Commerce and Economic Opportunity, whether that tangible 
16personal property is purchased by the owner, operator, or 
17tenant of the data center or by a contractor or subcontractor 
18of the owner, operator, or tenant. Data centers that would 
19have qualified for a certificate of exemption prior to January 
201, 2020 had Public Act 101-31 been in effect, may apply for and 
21obtain an exemption for subsequent purchases of computer 
22equipment or enabling software purchased or leased to upgrade, 
23supplement, or replace computer equipment or enabling software 
24purchased or leased in the original investment that would have 
25qualified. 
26 The Department of Commerce and Economic Opportunity shall 
 
 
10300HB4951sam002- 478 -LRB103 38094 HLH 74177 a


1grant a certificate of exemption under this item (32) to 
2qualified data centers as defined by Section 605-1025 of the 
3Department of Commerce and Economic Opportunity Law of the 
4Civil Administrative Code of Illinois. 
5 For the purposes of this item (32): 
6  "Data center" means a building or a series of 
7 buildings rehabilitated or constructed to house working 
8 servers in one physical location or multiple sites within 
9 the State of Illinois. 
10  "Qualified tangible personal property" means: 
11 electrical systems and equipment; climate control and 
12 chilling equipment and systems; mechanical systems and 
13 equipment; monitoring and secure systems; emergency 
14 generators; hardware; computers; servers; data storage 
15 devices; network connectivity equipment; racks; cabinets; 
16 telecommunications cabling infrastructure; raised floor 
17 systems; peripheral components or systems; software; 
18 mechanical, electrical, or plumbing systems; battery 
19 systems; cooling systems and towers; temperature control 
20 systems; other cabling; and other data center 
21 infrastructure equipment and systems necessary to operate 
22 qualified tangible personal property, including fixtures; 
23 and component parts of any of the foregoing, including 
24 installation, maintenance, repair, refurbishment, and 
25 replacement of qualified tangible personal property to 
26 generate, transform, transmit, distribute, or manage 
 
 
10300HB4951sam002- 479 -LRB103 38094 HLH 74177 a


1 electricity necessary to operate qualified tangible 
2 personal property; and all other tangible personal 
3 property that is essential to the operations of a computer 
4 data center. The term "qualified tangible personal 
5 property" also includes building materials physically 
6 incorporated into in to the qualifying data center. To 
7 document the exemption allowed under this Section, the 
8 retailer must obtain from the purchaser a copy of the 
9 certificate of eligibility issued by the Department of 
10 Commerce and Economic Opportunity. 
11 This item (32) is exempt from the provisions of Section 
123-55. 
13 (33) Beginning July 1, 2022, breast pumps, breast pump 
14collection and storage supplies, and breast pump kits. This 
15item (33) is exempt from the provisions of Section 3-55. As 
16used in this item (33): 
17  "Breast pump" means an electrically controlled or 
18 manually controlled pump device designed or marketed to be 
19 used to express milk from a human breast during lactation, 
20 including the pump device and any battery, AC adapter, or 
21 other power supply unit that is used to power the pump 
22 device and is packaged and sold with the pump device at the 
23 time of sale. 
24  "Breast pump collection and storage supplies" means 
25 items of tangible personal property designed or marketed 
26 to be used in conjunction with a breast pump to collect 
 
 
10300HB4951sam002- 480 -LRB103 38094 HLH 74177 a


1 milk expressed from a human breast and to store collected 
2 milk until it is ready for consumption. 
3  "Breast pump collection and storage supplies" 
4 includes, but is not limited to: breast shields and breast 
5 shield connectors; breast pump tubes and tubing adapters; 
6 breast pump valves and membranes; backflow protectors and 
7 backflow protector adaptors; bottles and bottle caps 
8 specific to the operation of the breast pump; and breast 
9 milk storage bags. 
10  "Breast pump collection and storage supplies" does not 
11 include: (1) bottles and bottle caps not specific to the 
12 operation of the breast pump; (2) breast pump travel bags 
13 and other similar carrying accessories, including ice 
14 packs, labels, and other similar products; (3) breast pump 
15 cleaning supplies; (4) nursing bras, bra pads, breast 
16 shells, and other similar products; and (5) creams, 
17 ointments, and other similar products that relieve 
18 breastfeeding-related symptoms or conditions of the 
19 breasts or nipples, unless sold as part of a breast pump 
20 kit that is pre-packaged by the breast pump manufacturer 
21 or distributor. 
22  "Breast pump kit" means a kit that: (1) contains no 
23 more than a breast pump, breast pump collection and 
24 storage supplies, a rechargeable battery for operating the 
25 breast pump, a breastmilk cooler, bottle stands, ice 
26 packs, and a breast pump carrying case; and (2) is 
 
 
10300HB4951sam002- 481 -LRB103 38094 HLH 74177 a


1 pre-packaged as a breast pump kit by the breast pump 
2 manufacturer or distributor. 
3 (34) Tangible personal property sold by or on behalf of 
4the State Treasurer pursuant to the Revised Uniform Unclaimed 
5Property Act. This item (34) is exempt from the provisions of 
6Section 3-55.
7 (35) Beginning on January 1, 2024, tangible personal 
8property purchased by an active duty member of the armed 
9forces of the United States who presents valid military 
10identification and purchases the property using a form of 
11payment where the federal government is the payor. The member 
12of the armed forces must complete, at the point of sale, a form 
13prescribed by the Department of Revenue documenting that the 
14transaction is eligible for the exemption under this 
15paragraph. Retailers must keep the form as documentation of 
16the exemption in their records for a period of not less than 6 
17years. "Armed forces of the United States" means the United 
18States Army, Navy, Air Force, Marine Corps, or Coast Guard. 
19This paragraph is exempt from the provisions of Section 3-55. 
20 (36) The lease of the following tangible personal 
21property:
22  (1) computer software transferred subject to a license 
23 that meets the following requirements:
24   (A) it is evidenced by a written agreement signed 
25 by the licensor and the customer;
26    (i) an electronic agreement in which the 
 
 
10300HB4951sam002- 482 -LRB103 38094 HLH 74177 a


1 customer accepts the license by means of an 
2 electronic signature that is verifiable and can be 
3 authenticated and is attached to or made part of 
4 the license will comply with this requirement;
5    (ii) a license agreement in which the customer 
6 electronically accepts the terms by clicking "I 
7 agree" does not comply with this requirement;
8   (B) it restricts the customer's duplication and 
9 use of the software;
10   (C) it prohibits the customer from licensing, 
11 sublicensing, or transferring the software to a third 
12 party (except to a related party) without the 
13 permission and continued control of the licensor;
14   (D) the licensor has a policy of providing another 
15 copy at minimal or no charge if the customer loses or 
16 damages the software, or of permitting the licensee to 
17 make and keep an archival copy, and such policy is 
18 either stated in the license agreement, supported by 
19 the licensor's books and records, or supported by a 
20 notarized statement made under penalties of perjury by 
21 the licensor; and
22   (E) the customer must destroy or return all copies 
23 of the software to the licensor at the end of the 
24 license period; this provision is deemed to be met, in 
25 the case of a perpetual license, without being set 
26 forth in the license agreement; and
 
 
10300HB4951sam002- 483 -LRB103 38094 HLH 74177 a


1  (2) property that is subject to a tax on lease 
2 receipts imposed by a home rule unit of local government 
3 if the ordinance imposing that tax was adopted prior to 
4 January 1, 2023. 
5(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, 
6Section 70-15, eff. 4-19-22; 102-700, Article 75, Section 
775-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, 
8Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15, 
9eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; 
10revised 12-12-23.)

11 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
12 Sec. 3-10. Rate of tax. Unless otherwise provided in this 
13Section, the tax imposed by this Act is at the rate of 6.25% of 
14the "selling price", as defined in Section 2 of the Service Use 
15Tax Act, of the tangible personal property, including, on and 
16after January 1, 2025, tangible personal property transferred 
17by lease. For the purpose of computing this tax, in no event 
18shall the "selling price" be less than the cost price to the 
19serviceman of the tangible personal property transferred. The 
20selling price of each item of tangible personal property 
21transferred as an incident of a sale of service may be shown as 
22a distinct and separate item on the serviceman's billing to 
23the service customer. If the selling price is not so shown, the 
24selling price of the tangible personal property is deemed to 
25be 50% of the serviceman's entire billing to the service 
 
 
10300HB4951sam002- 484 -LRB103 38094 HLH 74177 a


1customer. When, however, a serviceman contracts to design, 
2develop, and produce special order machinery or equipment, the 
3tax imposed by this Act shall be based on the serviceman's cost 
4price of the tangible personal property transferred incident 
5to the completion of the contract.
6 Beginning on July 1, 2000 and through December 31, 2000, 
7with respect to motor fuel, as defined in Section 1.1 of the 
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10 With respect to gasohol, as defined in the Use Tax Act, the 
11tax imposed by this Act shall apply to (i) 70% of the cost 
12price of property transferred as an incident to the sale of 
13service on or after January 1, 1990, and before July 1, 2003, 
14(ii) 80% of the selling price of property transferred as an 
15incident to the sale of service on or after July 1, 2003 and on 
16or before July 1, 2017, (iii) 100% of the selling price of 
17property transferred as an incident to the sale of service 
18after July 1, 2017 and prior to January 1, 2024, (iv) 90% of 
19the selling price of property transferred as an incident to 
20the sale of service on or after January 1, 2024 and on or 
21before December 31, 2028, and (v) 100% of the selling price of 
22property transferred as an incident to the sale of service 
23after December 31, 2028. If, at any time, however, the tax 
24under this Act on sales of gasohol, as defined in the Use Tax 
25Act, is imposed at the rate of 1.25%, then the tax imposed by 
26this Act applies to 100% of the proceeds of sales of gasohol 
 
 
10300HB4951sam002- 485 -LRB103 38094 HLH 74177 a


1made during that time.
2 With respect to mid-range ethanol blends, as defined in 
3Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
4applies to (i) 80% of the selling price of property 
5transferred as an incident to the sale of service on or after 
6January 1, 2024 and on or before December 31, 2028 and (ii) 
7100% of the selling price of property transferred as an 
8incident to the sale of service after December 31, 2028. If, at 
9any time, however, the tax under this Act on sales of mid-range 
10ethanol blends is imposed at the rate of 1.25%, then the tax 
11imposed by this Act applies to 100% of the selling price of 
12mid-range ethanol blends transferred as an incident to the 
13sale of service during that time. 
14 With respect to majority blended ethanol fuel, as defined 
15in the Use Tax Act, the tax imposed by this Act does not apply 
16to the selling price of property transferred as an incident to 
17the sale of service on or after July 1, 2003 and on or before 
18December 31, 2028 but applies to 100% of the selling price 
19thereafter.
20 With respect to biodiesel blends, as defined in the Use 
21Tax Act, with no less than 1% and no more than 10% biodiesel, 
22the tax imposed by this Act applies to (i) 80% of the selling 
23price of property transferred as an incident to the sale of 
24service on or after July 1, 2003 and on or before December 31, 
252018 and (ii) 100% of the proceeds of the selling price after 
26December 31, 2018 and before January 1, 2024. On and after 
 
 
10300HB4951sam002- 486 -LRB103 38094 HLH 74177 a


1January 1, 2024 and on or before December 31, 2030, the 
2taxation of biodiesel, renewable diesel, and biodiesel blends 
3shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
4at any time, however, the tax under this Act on sales of 
5biodiesel blends, as defined in the Use Tax Act, with no less 
6than 1% and no more than 10% biodiesel is imposed at the rate 
7of 1.25%, then the tax imposed by this Act applies to 100% of 
8the proceeds of sales of biodiesel blends with no less than 1% 
9and no more than 10% biodiesel made during that time.
10 With respect to biodiesel, as defined in the Use Tax Act, 
11and biodiesel blends, as defined in the Use Tax Act, with more 
12than 10% but no more than 99% biodiesel material, the tax 
13imposed by this Act does not apply to the proceeds of the 
14selling price of property transferred as an incident to the 
15sale of service on or after July 1, 2003 and on or before 
16December 31, 2023. On and after January 1, 2024 and on or 
17before December 31, 2030, the taxation of biodiesel, renewable 
18diesel, and biodiesel blends shall be as provided in Section 
193-5.1 of the Use Tax Act.
20 At the election of any registered serviceman made for each 
21fiscal year, sales of service in which the aggregate annual 
22cost price of tangible personal property transferred as an 
23incident to the sales of service is less than 35%, or 75% in 
24the case of servicemen transferring prescription drugs or 
25servicemen engaged in graphic arts production, of the 
26aggregate annual total gross receipts from all sales of 
 
 
10300HB4951sam002- 487 -LRB103 38094 HLH 74177 a


1service, the tax imposed by this Act shall be based on the 
2serviceman's cost price of the tangible personal property 
3transferred incident to the sale of those services.
4 Until July 1, 2022 and beginning again on July 1, 2023, the 
5tax shall be imposed at the rate of 1% on food prepared for 
6immediate consumption and transferred incident to a sale of 
7service subject to this Act or the Service Use Tax Act by an 
8entity licensed under the Hospital Licensing Act, the Nursing 
9Home Care Act, the Assisted Living and Shared Housing Act, the 
10ID/DD Community Care Act, the MC/DD Act, the Specialized 
11Mental Health Rehabilitation Act of 2013, or the Child Care 
12Act of 1969, or an entity that holds a permit issued pursuant 
13to the Life Care Facilities Act. Until July 1, 2022 and 
14beginning again on July 1, 2023, the tax shall also be imposed 
15at the rate of 1% on food for human consumption that is to be 
16consumed off the premises where it is sold (other than 
17alcoholic beverages, food consisting of or infused with adult 
18use cannabis, soft drinks, and food that has been prepared for 
19immediate consumption and is not otherwise included in this 
20paragraph).
21 Beginning on July 1, 2022 and until July 1, 2023, the tax 
22shall be imposed at the rate of 0% on food prepared for 
23immediate consumption and transferred incident to a sale of 
24service subject to this Act or the Service Use Tax Act by an 
25entity licensed under the Hospital Licensing Act, the Nursing 
26Home Care Act, the Assisted Living and Shared Housing Act, the 
 
 
10300HB4951sam002- 488 -LRB103 38094 HLH 74177 a


1ID/DD Community Care Act, the MC/DD Act, the Specialized 
2Mental Health Rehabilitation Act of 2013, or the Child Care 
3Act of 1969, or an entity that holds a permit issued pursuant 
4to the Life Care Facilities Act. Beginning July 1, 2022 and 
5until July 1, 2023, the tax shall also be imposed at the rate 
6of 0% on food for human consumption that is to be consumed off 
7the premises where it is sold (other than alcoholic beverages, 
8food consisting of or infused with adult use cannabis, soft 
9drinks, and food that has been prepared for immediate 
10consumption and is not otherwise included in this paragraph). 
11 The tax shall also be imposed at the rate of 1% on 
12prescription and nonprescription medicines, drugs, medical 
13appliances, products classified as Class III medical devices 
14by the United States Food and Drug Administration that are 
15used for cancer treatment pursuant to a prescription, as well 
16as any accessories and components related to those devices, 
17modifications to a motor vehicle for the purpose of rendering 
18it usable by a person with a disability, and insulin, blood 
19sugar testing materials, syringes, and needles used by human 
20diabetics. For the purposes of this Section, until September 
211, 2009: the term "soft drinks" means any complete, finished, 
22ready-to-use, non-alcoholic drink, whether carbonated or not, 
23including, but not limited to, soda water, cola, fruit juice, 
24vegetable juice, carbonated water, and all other preparations 
25commonly known as soft drinks of whatever kind or description 
26that are contained in any closed or sealed can, carton, or 
 
 
10300HB4951sam002- 489 -LRB103 38094 HLH 74177 a


1container, regardless of size; but "soft drinks" does not 
2include coffee, tea, non-carbonated water, infant formula, 
3milk or milk products as defined in the Grade A Pasteurized 
4Milk and Milk Products Act, or drinks containing 50% or more 
5natural fruit or vegetable juice.
6 Notwithstanding any other provisions of this Act, 
7beginning September 1, 2009, "soft drinks" means non-alcoholic 
8beverages that contain natural or artificial sweeteners. "Soft 
9drinks" does not include beverages that contain milk or milk 
10products, soy, rice or similar milk substitutes, or greater 
11than 50% of vegetable or fruit juice by volume.
12 Until August 1, 2009, and notwithstanding any other 
13provisions of this Act, "food for human consumption that is to 
14be consumed off the premises where it is sold" includes all 
15food sold through a vending machine, except soft drinks and 
16food products that are dispensed hot from a vending machine, 
17regardless of the location of the vending machine. Beginning 
18August 1, 2009, and notwithstanding any other provisions of 
19this Act, "food for human consumption that is to be consumed 
20off the premises where it is sold" includes all food sold 
21through a vending machine, except soft drinks, candy, and food 
22products that are dispensed hot from a vending machine, 
23regardless of the location of the vending machine. 
24 Notwithstanding any other provisions of this Act, 
25beginning September 1, 2009, "food for human consumption that 
26is to be consumed off the premises where it is sold" does not 
 
 
10300HB4951sam002- 490 -LRB103 38094 HLH 74177 a


1include candy. For purposes of this Section, "candy" means a 
2preparation of sugar, honey, or other natural or artificial 
3sweeteners in combination with chocolate, fruits, nuts or 
4other ingredients or flavorings in the form of bars, drops, or 
5pieces. "Candy" does not include any preparation that contains 
6flour or requires refrigeration. 
7 Notwithstanding any other provisions of this Act, 
8beginning September 1, 2009, "nonprescription medicines and 
9drugs" does not include grooming and hygiene products. For 
10purposes of this Section, "grooming and hygiene products" 
11includes, but is not limited to, soaps and cleaning solutions, 
12shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
13lotions and screens, unless those products are available by 
14prescription only, regardless of whether the products meet the 
15definition of "over-the-counter-drugs". For the purposes of 
16this paragraph, "over-the-counter-drug" means a drug for human 
17use that contains a label that identifies the product as a drug 
18as required by 21 CFR 201.66. The "over-the-counter-drug" 
19label includes: 
20  (A) a "Drug Facts" panel; or
21  (B) a statement of the "active ingredient(s)" with a 
22 list of those ingredients contained in the compound, 
23 substance or preparation.
24 Beginning on January 1, 2014 (the effective date of Public 
25Act 98-122), "prescription and nonprescription medicines and 
26drugs" includes medical cannabis purchased from a registered 
 
 
10300HB4951sam002- 491 -LRB103 38094 HLH 74177 a


1dispensing organization under the Compassionate Use of Medical 
2Cannabis Program Act. 
3 As used in this Section, "adult use cannabis" means 
4cannabis subject to tax under the Cannabis Cultivation 
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
6and does not include cannabis subject to tax under the 
7Compassionate Use of Medical Cannabis Program Act. 
8(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 
9102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, 
10Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; 
11103-154, eff. 6-30-23.)

12 Section 75-20. The Retailers' Occupation Tax Act is 
13amended by changing the title of the Act, by changing Sections 
141, 2, 2-5, 2-10, 2-12, 2a, 2c, and 3, and by adding Section 
151.05 as follows:

16 (35 ILCS 120/Act title)
17 An Act in relation to a tax upon persons engaged in the 
18business of selling, including leasing, tangible personal 
19property.

20 (35 ILCS 120/1) (from Ch. 120, par. 440)
21 Sec. 1. Definitions. "Sale at retail" means any transfer 
22of the ownership of, the or title to, the possession or control 
23of, the right to possess or control, or a license to use 
 
 
10300HB4951sam002- 492 -LRB103 38094 HLH 74177 a


1tangible personal property to a purchaser, for the purpose of 
2use or consumption, and not for the purpose of resale in any 
3form as tangible personal property to the extent not first 
4subjected to a use for which it was purchased, for a valuable 
5consideration: Provided that the property purchased is deemed 
6to be purchased for the purpose of resale, despite first being 
7used, to the extent to which it is resold as an ingredient of 
8an intentionally produced product or byproduct of 
9manufacturing. For this purpose, slag produced as an incident 
10to manufacturing pig iron or steel and sold is considered to be 
11an intentionally produced byproduct of manufacturing. 
12Transactions whereby the possession of the property is 
13transferred but the seller retains the title as security for 
14payment of the selling price shall be deemed to be sales.
15 "Sale at retail" shall be construed to include any 
16transfer of the ownership of, the or title to, the possession 
17or control of, the right to possess or control, or a license to 
18use tangible personal property to a purchaser, for use or 
19consumption by any other person to whom such purchaser may 
20transfer the tangible personal property without a valuable 
21consideration, and to include any transfer, whether made for 
22or without a valuable consideration, for resale in any form as 
23tangible personal property unless made in compliance with 
24Section 2c of this Act.
25 Sales of tangible personal property, which property, to 
26the extent not first subjected to a use for which it was 
 
 
10300HB4951sam002- 493 -LRB103 38094 HLH 74177 a


1purchased, as an ingredient or constituent, goes into and 
2forms a part of tangible personal property subsequently the 
3subject of a "Sale at retail", are not sales at retail as 
4defined in this Act: Provided that the property purchased is 
5deemed to be purchased for the purpose of resale, despite 
6first being used, to the extent to which it is resold as an 
7ingredient of an intentionally produced product or byproduct 
8of manufacturing.
9 "Sale at retail" shall be construed to include any 
10Illinois florist's sales transaction in which the purchase 
11order is received in Illinois by a florist and the sale is for 
12use or consumption, but the Illinois florist has a florist in 
13another state deliver the property to the purchaser or the 
14purchaser's donee in such other state.
15 Nonreusable tangible personal property that is used by 
16persons engaged in the business of operating a restaurant, 
17cafeteria, or drive-in is a sale for resale when it is 
18transferred to customers in the ordinary course of business as 
19part of the sale of food or beverages and is used to deliver, 
20package, or consume food or beverages, regardless of where 
21consumption of the food or beverages occurs. Examples of those 
22items include, but are not limited to nonreusable, paper and 
23plastic cups, plates, baskets, boxes, sleeves, buckets or 
24other containers, utensils, straws, placemats, napkins, doggie 
25bags, and wrapping or packaging materials that are transferred 
26to customers as part of the sale of food or beverages in the 
 
 
10300HB4951sam002- 494 -LRB103 38094 HLH 74177 a


1ordinary course of business.
2 The purchase, employment and transfer of such tangible 
3personal property as newsprint and ink for the primary purpose 
4of conveying news (with or without other information) is not a 
5purchase, use or sale of tangible personal property.
6 A person whose activities are organized and conducted 
7primarily as a not-for-profit service enterprise, and who 
8engages in selling tangible personal property at retail 
9(whether to the public or merely to members and their guests) 
10is engaged in the business of selling tangible personal 
11property at retail with respect to such transactions, 
12excepting only a person organized and operated exclusively for 
13charitable, religious or educational purposes either (1), to 
14the extent of sales by such person to its members, students, 
15patients or inmates of tangible personal property to be used 
16primarily for the purposes of such person, or (2), to the 
17extent of sales by such person of tangible personal property 
18which is not sold or offered for sale by persons organized for 
19profit. The selling of school books and school supplies by 
20schools at retail to students is not "primarily for the 
21purposes of" the school which does such selling. The 
22provisions of this paragraph shall not apply to nor subject to 
23taxation occasional dinners, socials or similar activities of 
24a person organized and operated exclusively for charitable, 
25religious or educational purposes, whether or not such 
26activities are open to the public.
 
 
10300HB4951sam002- 495 -LRB103 38094 HLH 74177 a


1 A person who is the recipient of a grant or contract under 
2Title VII of the Older Americans Act of 1965 (P.L. 92-258) and 
3serves meals to participants in the federal Nutrition Program 
4for the Elderly in return for contributions established in 
5amount by the individual participant pursuant to a schedule of 
6suggested fees as provided for in the federal Act is not 
7engaged in the business of selling tangible personal property 
8at retail with respect to such transactions.
9 "Lease" means a transfer of the possession or control of, 
10the right to possess or control, or a license to use, but not 
11title to, tangible personal property for a fixed or 
12indeterminate term for consideration, regardless of the name 
13by which the transaction is called. "Lease" does not include a 
14lease entered into merely as a security agreement that does 
15not involve a transfer of possession or control from the 
16lessor to the lessee. 
17 On and after January 1, 2025, the term "sale", when used in 
18this Act, includes a lease. 
19 "Purchaser" means anyone who, through a sale at retail, 
20acquires the ownership of, the or title to, the possession or 
21control of, the right to possess or control, or a license to 
22use tangible personal property for a valuable consideration.
23 "Reseller of motor fuel" means any person engaged in the 
24business of selling or delivering or transferring title of 
25motor fuel to another person other than for use or 
26consumption. No person shall act as a reseller of motor fuel 
 
 
10300HB4951sam002- 496 -LRB103 38094 HLH 74177 a


1within this State without first being registered as a reseller 
2pursuant to Section 2c or a retailer pursuant to Section 2a.
3 "Selling price" or the "amount of sale" means the 
4consideration for a sale valued in money whether received in 
5money or otherwise, including cash, credits, property, other 
6than as hereinafter provided, and services, but, prior to 
7January 1, 2020 and beginning again on January 1, 2022, not 
8including the value of or credit given for traded-in tangible 
9personal property where the item that is traded-in is of like 
10kind and character as that which is being sold; beginning 
11January 1, 2020 and until January 1, 2022, "selling price" 
12includes the portion of the value of or credit given for 
13traded-in motor vehicles of the First Division as defined in 
14Section 1-146 of the Illinois Vehicle Code of like kind and 
15character as that which is being sold that exceeds $10,000. 
16"Selling price" shall be determined without any deduction on 
17account of the cost of the property sold, the cost of materials 
18used, labor or service cost or any other expense whatsoever, 
19but does not include charges that are added to prices by 
20sellers on account of the seller's tax liability under this 
21Act, or on account of the seller's duty to collect, from the 
22purchaser, the tax that is imposed by the Use Tax Act, or, 
23except as otherwise provided with respect to any cigarette tax 
24imposed by a home rule unit, on account of the seller's tax 
25liability under any local occupation tax administered by the 
26Department, or, except as otherwise provided with respect to 
 
 
10300HB4951sam002- 497 -LRB103 38094 HLH 74177 a


1any cigarette tax imposed by a home rule unit on account of the 
2seller's duty to collect, from the purchasers, the tax that is 
3imposed under any local use tax administered by the 
4Department. Effective December 1, 1985, "selling price" shall 
5include charges that are added to prices by sellers on account 
6of the seller's tax liability under the Cigarette Tax Act, on 
7account of the sellers' duty to collect, from the purchaser, 
8the tax imposed under the Cigarette Use Tax Act, and on account 
9of the seller's duty to collect, from the purchaser, any 
10cigarette tax imposed by a home rule unit.
11 The provisions of this paragraph, which provides only for 
12an alternative meaning of "selling price" with respect to the 
13sale of certain motor vehicles incident to the contemporaneous 
14lease of those motor vehicles, continue in effect and are not 
15changed by the tax on leases implemented by this amendatory 
16Act of the 103rd General Assembly. Notwithstanding any law to 
17the contrary, for any motor vehicle, as defined in Section 
181-146 of the Vehicle Code, that is sold on or after January 1, 
192015 for the purpose of leasing the vehicle for a defined 
20period that is longer than one year and (1) is a motor vehicle 
21of the second division that: (A) is a self-contained motor 
22vehicle designed or permanently converted to provide living 
23quarters for recreational, camping, or travel use, with direct 
24walk through access to the living quarters from the driver's 
25seat; (B) is of the van configuration designed for the 
26transportation of not less than 7 nor more than 16 passengers; 
 
 
10300HB4951sam002- 498 -LRB103 38094 HLH 74177 a


1or (C) has a gross vehicle weight rating of 8,000 pounds or 
2less or (2) is a motor vehicle of the first division, "selling 
3price" or "amount of sale" means the consideration received by 
4the lessor pursuant to the lease contract, including amounts 
5due at lease signing and all monthly or other regular payments 
6charged over the term of the lease. Also included in the 
7selling price is any amount received by the lessor from the 
8lessee for the leased vehicle that is not calculated at the 
9time the lease is executed, including, but not limited to, 
10excess mileage charges and charges for excess wear and tear. 
11For sales that occur in Illinois, with respect to any amount 
12received by the lessor from the lessee for the leased vehicle 
13that is not calculated at the time the lease is executed, the 
14lessor who purchased the motor vehicle does not incur the tax 
15imposed by the Use Tax Act on those amounts, and the retailer 
16who makes the retail sale of the motor vehicle to the lessor is 
17not required to collect the tax imposed by the Use Tax Act or 
18to pay the tax imposed by this Act on those amounts. However, 
19the lessor who purchased the motor vehicle assumes the 
20liability for reporting and paying the tax on those amounts 
21directly to the Department in the same form (Illinois 
22Retailers' Occupation Tax, and local retailers' occupation 
23taxes, if applicable) in which the retailer would have 
24reported and paid such tax if the retailer had accounted for 
25the tax to the Department. For amounts received by the lessor 
26from the lessee that are not calculated at the time the lease 
 
 
10300HB4951sam002- 499 -LRB103 38094 HLH 74177 a


1is executed, the lessor must file the return and pay the tax to 
2the Department by the due date otherwise required by this Act 
3for returns other than transaction returns. If the retailer is 
4entitled under this Act to a discount for collecting and 
5remitting the tax imposed under this Act to the Department 
6with respect to the sale of the motor vehicle to the lessor, 
7then the right to the discount provided in this Act shall be 
8transferred to the lessor with respect to the tax paid by the 
9lessor for any amount received by the lessor from the lessee 
10for the leased vehicle that is not calculated at the time the 
11lease is executed; provided that the discount is only allowed 
12if the return is timely filed and for amounts timely paid. The 
13"selling price" of a motor vehicle that is sold on or after 
14January 1, 2015 for the purpose of leasing for a defined period 
15of longer than one year shall not be reduced by the value of or 
16credit given for traded-in tangible personal property owned by 
17the lessor, nor shall it be reduced by the value of or credit 
18given for traded-in tangible personal property owned by the 
19lessee, regardless of whether the trade-in value thereof is 
20assigned by the lessee to the lessor. In the case of a motor 
21vehicle that is sold for the purpose of leasing for a defined 
22period of longer than one year, the sale occurs at the time of 
23the delivery of the vehicle, regardless of the due date of any 
24lease payments. A lessor who incurs a Retailers' Occupation 
25Tax liability on the sale of a motor vehicle coming off lease 
26may not take a credit against that liability for the Use Tax 
 
 
10300HB4951sam002- 500 -LRB103 38094 HLH 74177 a


1the lessor paid upon the purchase of the motor vehicle (or for 
2any tax the lessor paid with respect to any amount received by 
3the lessor from the lessee for the leased vehicle that was not 
4calculated at the time the lease was executed) if the selling 
5price of the motor vehicle at the time of purchase was 
6calculated using the definition of "selling price" as defined 
7in this paragraph. Notwithstanding any other provision of this 
8Act to the contrary, lessors shall file all returns and make 
9all payments required under this paragraph to the Department 
10by electronic means in the manner and form as required by the 
11Department. This paragraph does not apply to leases of motor 
12vehicles for which, at the time the lease is entered into, the 
13term of the lease is not a defined period, including leases 
14with a defined initial period with the option to continue the 
15lease on a month-to-month or other basis beyond the initial 
16defined period. 
17 The phrase "like kind and character" shall be liberally 
18construed (including but not limited to any form of motor 
19vehicle for any form of motor vehicle, or any kind of farm or 
20agricultural implement for any other kind of farm or 
21agricultural implement), while not including a kind of item 
22which, if sold at retail by that retailer, would be exempt from 
23retailers' occupation tax and use tax as an isolated or 
24occasional sale.
25 "Gross receipts" from the sales of tangible personal 
26property at retail means the total selling price or the amount 
 
 
10300HB4951sam002- 501 -LRB103 38094 HLH 74177 a


1of such sales, as hereinbefore defined. In the case of charge 
2and time sales, the amount thereof shall be included only as 
3and when payments are received by the seller. In the case of 
4leases, except as otherwise provided in this Act, the amount 
5thereof shall be included only as and when gross receipts are 
6received by the lessor. Receipts or other consideration 
7derived by a seller from the sale, transfer or assignment of 
8accounts receivable to a wholly owned subsidiary will not be 
9deemed payments prior to the time the purchaser makes payment 
10on such accounts.
11 "Department" means the Department of Revenue.
12 "Person" means any natural individual, firm, partnership, 
13association, joint stock company, joint adventure, public or 
14private corporation, limited liability company, or a receiver, 
15executor, trustee, guardian or other representative appointed 
16by order of any court.
17 The isolated or occasional sale of tangible personal 
18property at retail by a person who does not hold himself out as 
19being engaged (or who does not habitually engage) in selling 
20such tangible personal property at retail, or a sale through a 
21bulk vending machine, does not constitute engaging in a 
22business of selling such tangible personal property at retail 
23within the meaning of this Act; provided that any person who is 
24engaged in a business which is not subject to the tax imposed 
25by this Act because of involving the sale of or a contract to 
26sell real estate or a construction contract to improve real 
 
 
10300HB4951sam002- 502 -LRB103 38094 HLH 74177 a


1estate or a construction contract to engineer, install, and 
2maintain an integrated system of products, but who, in the 
3course of conducting such business, transfers tangible 
4personal property to users or consumers in the finished form 
5in which it was purchased, and which does not become real 
6estate or was not engineered and installed, under any 
7provision of a construction contract or real estate sale or 
8real estate sales agreement entered into with some other 
9person arising out of or because of such nontaxable business, 
10is engaged in the business of selling tangible personal 
11property at retail to the extent of the value of the tangible 
12personal property so transferred. If, in such a transaction, a 
13separate charge is made for the tangible personal property so 
14transferred, the value of such property, for the purpose of 
15this Act, shall be the amount so separately charged, but not 
16less than the cost of such property to the transferor; if no 
17separate charge is made, the value of such property, for the 
18purposes of this Act, is the cost to the transferor of such 
19tangible personal property. Construction contracts for the 
20improvement of real estate consisting of engineering, 
21installation, and maintenance of voice, data, video, security, 
22and all telecommunication systems do not constitute engaging 
23in a business of selling tangible personal property at retail 
24within the meaning of this Act if they are sold at one 
25specified contract price.
26 A person who holds himself or herself out as being engaged 
 
 
10300HB4951sam002- 503 -LRB103 38094 HLH 74177 a


1(or who habitually engages) in selling tangible personal 
2property at retail is a person engaged in the business of 
3selling tangible personal property at retail hereunder with 
4respect to such sales (and not primarily in a service 
5occupation) notwithstanding the fact that such person designs 
6and produces such tangible personal property on special order 
7for the purchaser and in such a way as to render the property 
8of value only to such purchaser, if such tangible personal 
9property so produced on special order serves substantially the 
10same function as stock or standard items of tangible personal 
11property that are sold at retail.
12 Persons who engage in the business of transferring 
13tangible personal property upon the redemption of trading 
14stamps are engaged in the business of selling such property at 
15retail and shall be liable for and shall pay the tax imposed by 
16this Act on the basis of the retail value of the property 
17transferred upon redemption of such stamps.
18 "Bulk vending machine" means a vending machine, containing 
19unsorted confections, nuts, toys, or other items designed 
20primarily to be used or played with by children which, when a 
21coin or coins of a denomination not larger than $0.50 are 
22inserted, are dispensed in equal portions, at random and 
23without selection by the customer.
24 "Remote retailer" means a retailer that does not maintain 
25within this State, directly or by a subsidiary, an office, 
26distribution house, sales house, warehouse or other place of 
 
 
10300HB4951sam002- 504 -LRB103 38094 HLH 74177 a


1business, or any agent or other representative operating 
2within this State under the authority of the retailer or its 
3subsidiary, irrespective of whether such place of business or 
4agent is located here permanently or temporarily or whether 
5such retailer or subsidiary is licensed to do business in this 
6State. 
7 "Marketplace" means a physical or electronic place, forum, 
8platform, application, or other method by which a marketplace 
9seller sells or offers to sell items. 
10 "Marketplace facilitator" means a person who, pursuant to 
11an agreement with an unrelated third-party marketplace seller, 
12directly or indirectly through one or more affiliates 
13facilitates a retail sale by an unrelated third party 
14marketplace seller by: 
15  (1) listing or advertising for sale by the marketplace 
16 seller in a marketplace, tangible personal property that 
17 is subject to tax under this Act; and 
18  (2) either directly or indirectly, through agreements 
19 or arrangements with third parties, collecting payment 
20 from the customer and transmitting that payment to the 
21 marketplace seller regardless of whether the marketplace 
22 facilitator receives compensation or other consideration 
23 in exchange for its services. 
24 A person who provides advertising services, including 
25listing products for sale, is not considered a marketplace 
26facilitator, so long as the advertising service platform or 
 
 
10300HB4951sam002- 505 -LRB103 38094 HLH 74177 a


1forum does not engage, directly or indirectly through one or 
2more affiliated persons, in the activities described in 
3paragraph (2) of this definition of "marketplace facilitator". 
4 "Marketplace facilitator" does not include any person 
5licensed under the Auction License Act. This exemption does 
6not apply to any person who is an Internet auction listing 
7service, as defined by the Auction License Act. 
8 "Marketplace seller" means a person that makes sales 
9through a marketplace operated by an unrelated third party 
10marketplace facilitator. 
11(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20; 
12102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff. 
135-13-22.)

14 (35 ILCS 120/1.05 new)
15 Sec. 1.05. Legislative intent; leases. It is the intent of 
16the General Assembly in enacting this amendatory Act of the 
17103rd General Assembly to apply the tax imposed under this 
18Act, except as otherwise provided in this Act, to persons 
19engaged in the business of leasing at retail tangible personal 
20property, other than motor vehicles, watercraft, aircraft, and 
21semitrailers, as defined in Section 1-187 of the Illinois 
22Vehicle Code, that are required to be registered with an 
23agency of this State, leased at retail from a retailer, for 
24leases in effect, entered into, or renewed on or after January 
251, 2025.

 
 
10300HB4951sam002- 506 -LRB103 38094 HLH 74177 a


1 (35 ILCS 120/2) (from Ch. 120, par. 441)
2 Sec. 2. Tax imposed.  
3 (a) A tax is imposed upon persons engaged in the business 
4of selling at retail, which, on and after January 1, 2025, 
5includes leasing, tangible personal property, including 
6computer software, and including photographs, negatives, and 
7positives that are the product of photoprocessing, but not 
8including products of photoprocessing produced for use in 
9motion pictures for public commercial exhibition. Beginning 
10January 1, 2001, prepaid telephone calling arrangements shall 
11be considered tangible personal property subject to the tax 
12imposed under this Act regardless of the form in which those 
13arrangements may be embodied, transmitted, or fixed by any 
14method now known or hereafter developed. 
15 The imposition of the tax under this Act on persons 
16engaged in the business of leasing tangible personal property 
17applies to leases in effect, entered into, or renewed on or 
18after January 1, 2025. In the case of leases, except as 
19otherwise provided in this Act, the lessor must remit, for 
20each tax return period, only the tax applicable to that part of 
21the selling price actually received during such tax return 
22period. 
23 The inclusion of leases in the tax imposed under this Act 
24by this amendatory Act of the 103rd General Assembly does not, 
25however, extend to motor vehicles, watercraft, aircraft, and 
 
 
10300HB4951sam002- 507 -LRB103 38094 HLH 74177 a


1semitrailers, as defined in Section 1-187 of the Illinois 
2Vehicle Code, that are required to be registered with an 
3agency of this State. The taxation of these items shall 
4continue in effect as prior to the effective date of the 
5changes made to this Section by this amendatory Act of the 
6103rd General Assembly (i.e., dealers owe retailers' 
7occupation tax, lessors owe use tax, and lessees are not 
8subject to retailers' occupation or use tax). 
9 Sales of (1) electricity delivered to customers by wire; 
10(2) natural or artificial gas that is delivered to customers 
11through pipes, pipelines, or mains; and (3) water that is 
12delivered to customers through pipes, pipelines, or mains are 
13not subject to tax under this Act. The provisions of this 
14amendatory Act of the 98th General Assembly are declaratory of 
15existing law as to the meaning and scope of this Act. 
16 (b) Beginning on January 1, 2021, a remote retailer is 
17engaged in the occupation of selling at retail in Illinois for 
18purposes of this Act, if: 
19  (1) the cumulative gross receipts from sales of 
20 tangible personal property to purchasers in Illinois are 
21 $100,000 or more; or 
22  (2) the retailer enters into 200 or more separate 
23 transactions for the sale of tangible personal property to 
24 purchasers in Illinois. 
25 Remote retailers that meet or exceed the threshold in 
26either paragraph (1) or (2) above shall be liable for all 
 
 
10300HB4951sam002- 508 -LRB103 38094 HLH 74177 a


1applicable State retailers' and locally imposed retailers' 
2occupation taxes administered by the Department on all retail 
3sales to Illinois purchasers. 
4 The remote retailer shall determine on a quarterly basis, 
5ending on the last day of March, June, September, and 
6December, whether he or she meets the criteria of either 
7paragraph (1) or (2) of this subsection for the preceding 
812-month period. If the retailer meets the criteria of either 
9paragraph (1) or (2) for a 12-month period, he or she is 
10considered a retailer maintaining a place of business in this 
11State and is required to collect and remit the tax imposed 
12under this Act and all retailers' occupation tax imposed by 
13local taxing jurisdictions in Illinois, provided such local 
14taxes are administered by the Department, and to file all 
15applicable returns for one year. At the end of that one-year 
16period, the retailer shall determine whether the retailer met 
17the criteria of either paragraph (1) or (2) for the preceding 
1812-month period. If the retailer met the criteria in either 
19paragraph (1) or (2) for the preceding 12-month period, he or 
20she is considered a retailer maintaining a place of business 
21in this State and is required to collect and remit all 
22applicable State and local retailers' occupation taxes and 
23file returns for the subsequent year. If, at the end of a 
24one-year period, a retailer that was required to collect and 
25remit the tax imposed under this Act determines that he or she 
26did not meet the criteria in either paragraph (1) or (2) during 
 
 
10300HB4951sam002- 509 -LRB103 38094 HLH 74177 a


1the preceding 12-month period, then the retailer shall 
2subsequently determine on a quarterly basis, ending on the 
3last day of March, June, September, and December, whether he 
4or she meets the criteria of either paragraph (1) or (2) for 
5the preceding 12-month period. 
6 (b-5) For the purposes of this Section, neither the gross 
7receipts from nor the number of separate transactions for 
8sales of tangible personal property to purchasers in Illinois 
9that a remote retailer makes through a marketplace facilitator 
10shall be included for the purposes of determining whether he 
11or she has met the thresholds of subsection (b) of this Section 
12so long as the remote retailer has received certification from 
13the marketplace facilitator that the marketplace facilitator 
14is legally responsible for payment of tax on such sales. 
15 (b-10) A remote retailer required to collect taxes imposed 
16under the Use Tax Act on retail sales made to Illinois 
17purchasers shall be liable to the Department for such taxes, 
18except when the remote retailer is relieved of the duty to 
19remit such taxes by virtue of having paid to the Department 
20taxes imposed by this Act in accordance with this Section upon 
21his or her gross receipts from such sales. 
22 (c) Marketplace facilitators engaged in the business of 
23selling at retail tangible personal property in Illinois. 
24Beginning January 1, 2021, a marketplace facilitator is 
25engaged in the occupation of selling at retail tangible 
26personal property in Illinois for purposes of this Act if, 
 
 
10300HB4951sam002- 510 -LRB103 38094 HLH 74177 a


1during the previous 12-month period: 
2  (1) the cumulative gross receipts from sales of 
3 tangible personal property on its own behalf or on behalf 
4 of marketplace sellers to purchasers in Illinois equals 
5 $100,000 or more; or 
6  (2) the marketplace facilitator enters into 200 or 
7 more separate transactions on its own behalf or on behalf 
8 of marketplace sellers for the sale of tangible personal 
9 property to purchasers in Illinois, regardless of whether 
10 the marketplace facilitator or marketplace sellers for 
11 whom such sales are facilitated are registered as 
12 retailers in this State. 
13 A marketplace facilitator who meets either paragraph (1) 
14or (2) of this subsection is required to remit the applicable 
15State retailers' occupation taxes under this Act and local 
16retailers' occupation taxes administered by the Department on 
17all taxable sales of tangible personal property made by the 
18marketplace facilitator or facilitated for marketplace sellers 
19to customers in this State. A marketplace facilitator selling 
20or facilitating the sale of tangible personal property to 
21customers in this State is subject to all applicable 
22procedures and requirements of this Act. 
23 The marketplace facilitator shall determine on a quarterly 
24basis, ending on the last day of March, June, September, and 
25December, whether he or she meets the criteria of either 
26paragraph (1) or (2) of this subsection for the preceding 
 
 
10300HB4951sam002- 511 -LRB103 38094 HLH 74177 a


112-month period. If the marketplace facilitator meets the 
2criteria of either paragraph (1) or (2) for a 12-month period, 
3he or she is considered a retailer maintaining a place of 
4business in this State and is required to remit the tax imposed 
5under this Act and all retailers' occupation tax imposed by 
6local taxing jurisdictions in Illinois, provided such local 
7taxes are administered by the Department, and to file all 
8applicable returns for one year. At the end of that one-year 
9period, the marketplace facilitator shall determine whether it 
10met the criteria of either paragraph (1) or (2) for the 
11preceding 12-month period. If the marketplace facilitator met 
12the criteria in either paragraph (1) or (2) for the preceding 
1312-month period, it is considered a retailer maintaining a 
14place of business in this State and is required to collect and 
15remit all applicable State and local retailers' occupation 
16taxes and file returns for the subsequent year. If at the end 
17of a one-year period a marketplace facilitator that was 
18required to collect and remit the tax imposed under this Act 
19determines that he or she did not meet the criteria in either 
20paragraph (1) or (2) during the preceding 12-month period, the 
21marketplace facilitator shall subsequently determine on a 
22quarterly basis, ending on the last day of March, June, 
23September, and December, whether he or she meets the criteria 
24of either paragraph (1) or (2) for the preceding 12-month 
25period. 
26 A marketplace facilitator shall be entitled to any 
 
 
10300HB4951sam002- 512 -LRB103 38094 HLH 74177 a


1credits, deductions, or adjustments to the sales price 
2otherwise provided to the marketplace seller, in addition to 
3any such adjustments provided directly to the marketplace 
4facilitator. This Section pertains to, but is not limited to, 
5adjustments such as discounts, coupons, and rebates. In 
6addition, a marketplace facilitator shall be entitled to the 
7retailers' discount provided in Section 3 of the Retailers' 
8Occupation Tax Act on all marketplace sales, and the 
9marketplace seller shall not include sales made through a 
10marketplace facilitator when computing any retailers' discount 
11on remaining sales. Marketplace facilitators shall report and 
12remit the applicable State and local retailers' occupation 
13taxes on sales facilitated for marketplace sellers separately 
14from any sales or use tax collected on taxable retail sales 
15made directly by the marketplace facilitator or its 
16affiliates. 
17 The marketplace facilitator is liable for the remittance 
18of all applicable State retailers' occupation taxes under this 
19Act and local retailers' occupation taxes administered by the 
20Department on sales through the marketplace and is subject to 
21audit on all such sales. The Department shall not audit 
22marketplace sellers for their marketplace sales where a 
23marketplace facilitator remitted the applicable State and 
24local retailers' occupation taxes unless the marketplace 
25facilitator seeks relief as a result of incorrect information 
26provided to the marketplace facilitator by a marketplace 
 
 
10300HB4951sam002- 513 -LRB103 38094 HLH 74177 a


1seller as set forth in this Section. The marketplace 
2facilitator shall not be held liable for tax on any sales made 
3by a marketplace seller that take place outside of the 
4marketplace and which are not a part of any agreement between a 
5marketplace facilitator and a marketplace seller. In addition, 
6marketplace facilitators shall not be held liable to State and 
7local governments of Illinois for having charged and remitted 
8an incorrect amount of State and local retailers' occupation 
9tax if, at the time of the sale, the tax is computed based on 
10erroneous data provided by the State in database files on tax 
11rates, boundaries, or taxing jurisdictions or incorrect 
12information provided to the marketplace facilitator by the 
13marketplace seller. 
14 (d) A marketplace facilitator shall: 
15  (1) certify to each marketplace seller that the 
16 marketplace facilitator assumes the rights and duties of a 
17 retailer under this Act with respect to sales made by the 
18 marketplace seller through the marketplace; and 
19  (2) remit taxes imposed by this Act as required by 
20 this Act for sales made through the marketplace. 
21 (e) A marketplace seller shall retain books and records 
22for all sales made through a marketplace in accordance with 
23the requirements of this Act. 
24 (f) A marketplace facilitator is subject to audit on all 
25marketplace sales for which it is considered to be the 
26retailer, but shall not be liable for tax or subject to audit 
 
 
10300HB4951sam002- 514 -LRB103 38094 HLH 74177 a


1on sales made by marketplace sellers outside of the 
2marketplace. 
3 (g) A marketplace facilitator required to collect taxes 
4imposed under the Use Tax Act on marketplace sales made to 
5Illinois purchasers shall be liable to the Department for such 
6taxes, except when the marketplace facilitator is relieved of 
7the duty to remit such taxes by virtue of having paid to the 
8Department taxes imposed by this Act in accordance with this 
9Section upon his or her gross receipts from such sales. 
10 (h) Nothing in this Section shall allow the Department to 
11collect retailers' occupation taxes from both the marketplace 
12facilitator and marketplace seller on the same transaction. 
13 (i) If, for any reason, the Department is prohibited from 
14enforcing the marketplace facilitator's duty under this Act to 
15remit taxes pursuant to this Section, the duty to remit such 
16taxes remains with the marketplace seller. 
17 (j) Nothing in this Section affects the obligation of any 
18consumer to remit use tax for any taxable transaction for 
19which a certified service provider acting on behalf of a 
20remote retailer or a marketplace facilitator does not collect 
21and remit the appropriate tax. 
22 (k) Nothing in this Section shall allow the Department to 
23collect the retailers' occupation tax from both the 
24marketplace facilitator and the marketplace seller. 
25(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)

 
 
10300HB4951sam002- 515 -LRB103 38094 HLH 74177 a


1 (35 ILCS 120/2-5)
2 Sec. 2-5. Exemptions. Gross receipts from proceeds from 
3the sale, which, on and after January 1, 2025, includes the 
4lease, of the following tangible personal property are exempt 
5from the tax imposed by this Act:
6  (1) Farm chemicals.
7  (2) Farm machinery and equipment, both new and used, 
8 including that manufactured on special order, certified by 
9 the purchaser to be used primarily for production 
10 agriculture or State or federal agricultural programs, 
11 including individual replacement parts for the machinery 
12 and equipment, including machinery and equipment purchased 
13 for lease, and including implements of husbandry defined 
14 in Section 1-130 of the Illinois Vehicle Code, farm 
15 machinery and agricultural chemical and fertilizer 
16 spreaders, and nurse wagons required to be registered 
17 under Section 3-809 of the Illinois Vehicle Code, but 
18 excluding other motor vehicles required to be registered 
19 under the Illinois Vehicle Code. Horticultural polyhouses 
20 or hoop houses used for propagating, growing, or 
21 overwintering plants shall be considered farm machinery 
22 and equipment under this item (2). Agricultural chemical 
23 tender tanks and dry boxes shall include units sold 
24 separately from a motor vehicle required to be licensed 
25 and units sold mounted on a motor vehicle required to be 
26 licensed, if the selling price of the tender is separately 
 
 
10300HB4951sam002- 516 -LRB103 38094 HLH 74177 a


1 stated.
2  Farm machinery and equipment shall include precision 
3 farming equipment that is installed or purchased to be 
4 installed on farm machinery and equipment including, but 
5 not limited to, tractors, harvesters, sprayers, planters, 
6 seeders, or spreaders. Precision farming equipment 
7 includes, but is not limited to, soil testing sensors, 
8 computers, monitors, software, global positioning and 
9 mapping systems, and other such equipment.
10  Farm machinery and equipment also includes computers, 
11 sensors, software, and related equipment used primarily in 
12 the computer-assisted operation of production agriculture 
13 facilities, equipment, and activities such as, but not 
14 limited to, the collection, monitoring, and correlation of 
15 animal and crop data for the purpose of formulating animal 
16 diets and agricultural chemicals. 
17  Beginning on January 1, 2024, farm machinery and 
18 equipment also includes electrical power generation 
19 equipment used primarily for production agriculture. 
20  This item (2) is exempt from the provisions of Section 
21 2-70.
22  (3) Until July 1, 2003, distillation machinery and 
23 equipment, sold as a unit or kit, assembled or installed 
24 by the retailer, certified by the user to be used only for 
25 the production of ethyl alcohol that will be used for 
26 consumption as motor fuel or as a component of motor fuel 
 
 
10300HB4951sam002- 517 -LRB103 38094 HLH 74177 a


1 for the personal use of the user, and not subject to sale 
2 or resale.
3  (4) Until July 1, 2003 and beginning again September 
4 1, 2004 through August 30, 2014, graphic arts machinery 
5 and equipment, including repair and replacement parts, 
6 both new and used, and including that manufactured on 
7 special order or purchased for lease, certified by the 
8 purchaser to be used primarily for graphic arts 
9 production. Equipment includes chemicals or chemicals 
10 acting as catalysts but only if the chemicals or chemicals 
11 acting as catalysts effect a direct and immediate change 
12 upon a graphic arts product. Beginning on July 1, 2017, 
13 graphic arts machinery and equipment is included in the 
14 manufacturing and assembling machinery and equipment 
15 exemption under paragraph (14).
16  (5) A motor vehicle that is used for automobile 
17 renting, as defined in the Automobile Renting Occupation 
18 and Use Tax Act. This paragraph is exempt from the 
19 provisions of Section 2-70.
20  (6) Personal property sold by a teacher-sponsored 
21 student organization affiliated with an elementary or 
22 secondary school located in Illinois.
23  (7) Until July 1, 2003, proceeds of that portion of 
24 the selling price of a passenger car the sale of which is 
25 subject to the Replacement Vehicle Tax.
26  (8) Personal property sold to an Illinois county fair 
 
 
10300HB4951sam002- 518 -LRB103 38094 HLH 74177 a


1 association for use in conducting, operating, or promoting 
2 the county fair.
3  (9) Personal property sold to a not-for-profit arts or 
4 cultural organization that establishes, by proof required 
5 by the Department by rule, that it has received an 
6 exemption under Section 501(c)(3) of the Internal Revenue 
7 Code and that is organized and operated primarily for the 
8 presentation or support of arts or cultural programming, 
9 activities, or services. These organizations include, but 
10 are not limited to, music and dramatic arts organizations 
11 such as symphony orchestras and theatrical groups, arts 
12 and cultural service organizations, local arts councils, 
13 visual arts organizations, and media arts organizations. 
14 On and after July 1, 2001 (the effective date of Public Act 
15 92-35), however, an entity otherwise eligible for this 
16 exemption shall not make tax-free purchases unless it has 
17 an active identification number issued by the Department.
18  (10) Personal property sold by a corporation, society, 
19 association, foundation, institution, or organization, 
20 other than a limited liability company, that is organized 
21 and operated as a not-for-profit service enterprise for 
22 the benefit of persons 65 years of age or older if the 
23 personal property was not purchased by the enterprise for 
24 the purpose of resale by the enterprise.
25  (11) Except as otherwise provided in this Section, 
26 personal property sold to a governmental body, to a 
 
 
10300HB4951sam002- 519 -LRB103 38094 HLH 74177 a


1 corporation, society, association, foundation, or 
2 institution organized and operated exclusively for 
3 charitable, religious, or educational purposes, or to a 
4 not-for-profit corporation, society, association, 
5 foundation, institution, or organization that has no 
6 compensated officers or employees and that is organized 
7 and operated primarily for the recreation of persons 55 
8 years of age or older. A limited liability company may 
9 qualify for the exemption under this paragraph only if the 
10 limited liability company is organized and operated 
11 exclusively for educational purposes. On and after July 1, 
12 1987, however, no entity otherwise eligible for this 
13 exemption shall make tax-free purchases unless it has an 
14 active identification number issued by the Department.
15  (12) (Blank).
16  (12-5) On and after July 1, 2003 and through June 30, 
17 2004, motor vehicles of the second division with a gross 
18 vehicle weight in excess of 8,000 pounds that are subject 
19 to the commercial distribution fee imposed under Section 
20 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 
21 2004 and through June 30, 2005, the use in this State of 
22 motor vehicles of the second division: (i) with a gross 
23 vehicle weight rating in excess of 8,000 pounds; (ii) that 
24 are subject to the commercial distribution fee imposed 
25 under Section 3-815.1 of the Illinois Vehicle Code; and 
26 (iii) that are primarily used for commercial purposes. 
 
 
10300HB4951sam002- 520 -LRB103 38094 HLH 74177 a


1 Through June 30, 2005, this exemption applies to repair 
2 and replacement parts added after the initial purchase of 
3 such a motor vehicle if that motor vehicle is used in a 
4 manner that would qualify for the rolling stock exemption 
5 otherwise provided for in this Act. For purposes of this 
6 paragraph, "used for commercial purposes" means the 
7 transportation of persons or property in furtherance of 
8 any commercial or industrial enterprise whether for-hire 
9 or not. 
10  (13) Proceeds from sales to owners or , lessors, 
11 lessees, or shippers of tangible personal property that is 
12 utilized by interstate carriers for hire for use as 
13 rolling stock moving in interstate commerce and equipment 
14 operated by a telecommunications provider, licensed as a 
15 common carrier by the Federal Communications Commission, 
16 which is permanently installed in or affixed to aircraft 
17 moving in interstate commerce.
18  (14) Machinery and equipment that will be used by the 
19 purchaser, or a lessee of the purchaser, primarily in the 
20 process of manufacturing or assembling tangible personal 
21 property for wholesale or retail sale or lease, whether 
22 the sale or lease is made directly by the manufacturer or 
23 by some other person, whether the materials used in the 
24 process are owned by the manufacturer or some other 
25 person, or whether the sale or lease is made apart from or 
26 as an incident to the seller's engaging in the service 
 
 
10300HB4951sam002- 521 -LRB103 38094 HLH 74177 a


1 occupation of producing machines, tools, dies, jigs, 
2 patterns, gauges, or other similar items of no commercial 
3 value on special order for a particular purchaser. The 
4 exemption provided by this paragraph (14) does not include 
5 machinery and equipment used in (i) the generation of 
6 electricity for wholesale or retail sale; (ii) the 
7 generation or treatment of natural or artificial gas for 
8 wholesale or retail sale that is delivered to customers 
9 through pipes, pipelines, or mains; or (iii) the treatment 
10 of water for wholesale or retail sale that is delivered to 
11 customers through pipes, pipelines, or mains. The 
12 provisions of Public Act 98-583 are declaratory of 
13 existing law as to the meaning and scope of this 
14 exemption. Beginning on July 1, 2017, the exemption 
15 provided by this paragraph (14) includes, but is not 
16 limited to, graphic arts machinery and equipment, as 
17 defined in paragraph (4) of this Section.
18  (15) Proceeds of mandatory service charges separately 
19 stated on customers' bills for purchase and consumption of 
20 food and beverages, to the extent that the proceeds of the 
21 service charge are in fact turned over as tips or as a 
22 substitute for tips to the employees who participate 
23 directly in preparing, serving, hosting or cleaning up the 
24 food or beverage function with respect to which the 
25 service charge is imposed. 
26  (16) Tangible personal property sold to a purchaser if 
 
 
10300HB4951sam002- 522 -LRB103 38094 HLH 74177 a


1 the purchaser is exempt from use tax by operation of 
2 federal law. This paragraph is exempt from the provisions 
3 of Section 2-70. 
4  (17) Tangible personal property sold to a common 
5 carrier by rail or motor that receives the physical 
6 possession of the property in Illinois and that transports 
7 the property, or shares with another common carrier in the 
8 transportation of the property, out of Illinois on a 
9 standard uniform bill of lading showing the seller of the 
10 property as the shipper or consignor of the property to a 
11 destination outside Illinois, for use outside Illinois.
12  (18) Legal tender, currency, medallions, or gold or 
13 silver coinage issued by the State of Illinois, the 
14 government of the United States of America, or the 
15 government of any foreign country, and bullion.
16  (19) Until July 1, 2003, oil field exploration, 
17 drilling, and production equipment, including (i) rigs and 
18 parts of rigs, rotary rigs, cable tool rigs, and workover 
19 rigs, (ii) pipe and tubular goods, including casing and 
20 drill strings, (iii) pumps and pump-jack units, (iv) 
21 storage tanks and flow lines, (v) any individual 
22 replacement part for oil field exploration, drilling, and 
23 production equipment, and (vi) machinery and equipment 
24 purchased for lease; but excluding motor vehicles required 
25 to be registered under the Illinois Vehicle Code.
26  (20) Photoprocessing machinery and equipment, 
 
 
10300HB4951sam002- 523 -LRB103 38094 HLH 74177 a


1 including repair and replacement parts, both new and used, 
2 including that manufactured on special order, certified by 
3 the purchaser to be used primarily for photoprocessing, 
4 and including photoprocessing machinery and equipment 
5 purchased for lease.
6  (21) Until July 1, 2028, coal and aggregate 
7 exploration, mining, off-highway hauling, processing, 
8 maintenance, and reclamation equipment, including 
9 replacement parts and equipment, and including equipment 
10 purchased for lease, but excluding motor vehicles required 
11 to be registered under the Illinois Vehicle Code. The 
12 changes made to this Section by Public Act 97-767 apply on 
13 and after July 1, 2003, but no claim for credit or refund 
14 is allowed on or after August 16, 2013 (the effective date 
15 of Public Act 98-456) for such taxes paid during the 
16 period beginning July 1, 2003 and ending on August 16, 
17 2013 (the effective date of Public Act 98-456).
18  (22) Until June 30, 2013, fuel and petroleum products 
19 sold to or used by an air carrier, certified by the carrier 
20 to be used for consumption, shipment, or storage in the 
21 conduct of its business as an air common carrier, for a 
22 flight destined for or returning from a location or 
23 locations outside the United States without regard to 
24 previous or subsequent domestic stopovers.
25  Beginning July 1, 2013, fuel and petroleum products 
26 sold to or used by an air carrier, certified by the carrier 
 
 
10300HB4951sam002- 524 -LRB103 38094 HLH 74177 a


1 to be used for consumption, shipment, or storage in the 
2 conduct of its business as an air common carrier, for a 
3 flight that (i) is engaged in foreign trade or is engaged 
4 in trade between the United States and any of its 
5 possessions and (ii) transports at least one individual or 
6 package for hire from the city of origination to the city 
7 of final destination on the same aircraft, without regard 
8 to a change in the flight number of that aircraft. 
9  (23) A transaction in which the purchase order is 
10 received by a florist who is located outside Illinois, but 
11 who has a florist located in Illinois deliver the property 
12 to the purchaser or the purchaser's donee in Illinois.
13  (24) Fuel consumed or used in the operation of ships, 
14 barges, or vessels that are used primarily in or for the 
15 transportation of property or the conveyance of persons 
16 for hire on rivers bordering on this State if the fuel is 
17 delivered by the seller to the purchaser's barge, ship, or 
18 vessel while it is afloat upon that bordering river.
19  (25) Except as provided in item (25-5) of this 
20 Section, a motor vehicle sold in this State to a 
21 nonresident even though the motor vehicle is delivered to 
22 the nonresident in this State, if the motor vehicle is not 
23 to be titled in this State, and if a drive-away permit is 
24 issued to the motor vehicle as provided in Section 3-603 
25 of the Illinois Vehicle Code or if the nonresident 
26 purchaser has vehicle registration plates to transfer to 
 
 
10300HB4951sam002- 525 -LRB103 38094 HLH 74177 a


1 the motor vehicle upon returning to his or her home state. 
2 The issuance of the drive-away permit or having the 
3 out-of-state registration plates to be transferred is 
4 prima facie evidence that the motor vehicle will not be 
5 titled in this State.
6  (25-5) The exemption under item (25) does not apply if 
7 the state in which the motor vehicle will be titled does 
8 not allow a reciprocal exemption for a motor vehicle sold 
9 and delivered in that state to an Illinois resident but 
10 titled in Illinois. The tax collected under this Act on 
11 the sale of a motor vehicle in this State to a resident of 
12 another state that does not allow a reciprocal exemption 
13 shall be imposed at a rate equal to the state's rate of tax 
14 on taxable property in the state in which the purchaser is 
15 a resident, except that the tax shall not exceed the tax 
16 that would otherwise be imposed under this Act. At the 
17 time of the sale, the purchaser shall execute a statement, 
18 signed under penalty of perjury, of his or her intent to 
19 title the vehicle in the state in which the purchaser is a 
20 resident within 30 days after the sale and of the fact of 
21 the payment to the State of Illinois of tax in an amount 
22 equivalent to the state's rate of tax on taxable property 
23 in his or her state of residence and shall submit the 
24 statement to the appropriate tax collection agency in his 
25 or her state of residence. In addition, the retailer must 
26 retain a signed copy of the statement in his or her 
 
 
10300HB4951sam002- 526 -LRB103 38094 HLH 74177 a


1 records. Nothing in this item shall be construed to 
2 require the removal of the vehicle from this state 
3 following the filing of an intent to title the vehicle in 
4 the purchaser's state of residence if the purchaser titles 
5 the vehicle in his or her state of residence within 30 days 
6 after the date of sale. The tax collected under this Act in 
7 accordance with this item (25-5) shall be proportionately 
8 distributed as if the tax were collected at the 6.25% 
9 general rate imposed under this Act. 
10  (25-7) Beginning on July 1, 2007, no tax is imposed 
11 under this Act on the sale of an aircraft, as defined in 
12 Section 3 of the Illinois Aeronautics Act, if all of the 
13 following conditions are met:
14   (1) the aircraft leaves this State within 15 days 
15 after the later of either the issuance of the final 
16 billing for the sale of the aircraft, or the 
17 authorized approval for return to service, completion 
18 of the maintenance record entry, and completion of the 
19 test flight and ground test for inspection, as 
20 required by 14 CFR 91.407;
21   (2) the aircraft is not based or registered in 
22 this State after the sale of the aircraft; and
23   (3) the seller retains in his or her books and 
24 records and provides to the Department a signed and 
25 dated certification from the purchaser, on a form 
26 prescribed by the Department, certifying that the 
 
 
10300HB4951sam002- 527 -LRB103 38094 HLH 74177 a


1 requirements of this item (25-7) are met. The 
2 certificate must also include the name and address of 
3 the purchaser, the address of the location where the 
4 aircraft is to be titled or registered, the address of 
5 the primary physical location of the aircraft, and 
6 other information that the Department may reasonably 
7 require.
8  For purposes of this item (25-7):
9  "Based in this State" means hangared, stored, or 
10 otherwise used, excluding post-sale customizations as 
11 defined in this Section, for 10 or more days in each 
12 12-month period immediately following the date of the sale 
13 of the aircraft.
14  "Registered in this State" means an aircraft 
15 registered with the Department of Transportation, 
16 Aeronautics Division, or titled or registered with the 
17 Federal Aviation Administration to an address located in 
18 this State.
19  This paragraph (25-7) is exempt from the provisions of 
20 Section 2-70. 
21  (26) Semen used for artificial insemination of 
22 livestock for direct agricultural production.
23  (27) Horses, or interests in horses, registered with 
24 and meeting the requirements of any of the Arabian Horse 
25 Club Registry of America, Appaloosa Horse Club, American 
26 Quarter Horse Association, United States Trotting 
 
 
10300HB4951sam002- 528 -LRB103 38094 HLH 74177 a


1 Association, or Jockey Club, as appropriate, used for 
2 purposes of breeding or racing for prizes. This item (27) 
3 is exempt from the provisions of Section 2-70, and the 
4 exemption provided for under this item (27) applies for 
5 all periods beginning May 30, 1995, but no claim for 
6 credit or refund is allowed on or after January 1, 2008 
7 (the effective date of Public Act 95-88) for such taxes 
8 paid during the period beginning May 30, 2000 and ending 
9 on January 1, 2008 (the effective date of Public Act 
10 95-88).
11  (28) Computers and communications equipment utilized 
12 for any hospital purpose and equipment used in the 
13 diagnosis, analysis, or treatment of hospital patients 
14 sold to a lessor who leases the equipment, under a lease of 
15 one year or longer executed or in effect at the time of the 
16 purchase, to a hospital that has been issued an active tax 
17 exemption identification number by the Department under 
18 Section 1g of this Act.
19  (29) Personal property sold to a lessor who leases the 
20 property, under a lease of one year or longer executed or 
21 in effect at the time of the purchase, to a governmental 
22 body that has been issued an active tax exemption 
23 identification number by the Department under Section 1g 
24 of this Act.
25  (30) Beginning with taxable years ending on or after 
26 December 31, 1995 and ending with taxable years ending on 
 
 
10300HB4951sam002- 529 -LRB103 38094 HLH 74177 a


1 or before December 31, 2004, personal property that is 
2 donated for disaster relief to be used in a State or 
3 federally declared disaster area in Illinois or bordering 
4 Illinois by a manufacturer or retailer that is registered 
5 in this State to a corporation, society, association, 
6 foundation, or institution that has been issued a sales 
7 tax exemption identification number by the Department that 
8 assists victims of the disaster who reside within the 
9 declared disaster area.
10  (31) Beginning with taxable years ending on or after 
11 December 31, 1995 and ending with taxable years ending on 
12 or before December 31, 2004, personal property that is 
13 used in the performance of infrastructure repairs in this 
14 State, including, but not limited to, municipal roads and 
15 streets, access roads, bridges, sidewalks, waste disposal 
16 systems, water and sewer line extensions, water 
17 distribution and purification facilities, storm water 
18 drainage and retention facilities, and sewage treatment 
19 facilities, resulting from a State or federally declared 
20 disaster in Illinois or bordering Illinois when such 
21 repairs are initiated on facilities located in the 
22 declared disaster area within 6 months after the disaster.
23  (32) Beginning July 1, 1999, game or game birds sold 
24 at a "game breeding and hunting preserve area" as that 
25 term is used in the Wildlife Code. This paragraph is 
26 exempt from the provisions of Section 2-70.
 
 
10300HB4951sam002- 530 -LRB103 38094 HLH 74177 a


1  (33) A motor vehicle, as that term is defined in 
2 Section 1-146 of the Illinois Vehicle Code, that is 
3 donated to a corporation, limited liability company, 
4 society, association, foundation, or institution that is 
5 determined by the Department to be organized and operated 
6 exclusively for educational purposes. For purposes of this 
7 exemption, "a corporation, limited liability company, 
8 society, association, foundation, or institution organized 
9 and operated exclusively for educational purposes" means 
10 all tax-supported public schools, private schools that 
11 offer systematic instruction in useful branches of 
12 learning by methods common to public schools and that 
13 compare favorably in their scope and intensity with the 
14 course of study presented in tax-supported schools, and 
15 vocational or technical schools or institutes organized 
16 and operated exclusively to provide a course of study of 
17 not less than 6 weeks duration and designed to prepare 
18 individuals to follow a trade or to pursue a manual, 
19 technical, mechanical, industrial, business, or commercial 
20 occupation.
21  (34) Beginning January 1, 2000, personal property, 
22 including food, purchased through fundraising events for 
23 the benefit of a public or private elementary or secondary 
24 school, a group of those schools, or one or more school 
25 districts if the events are sponsored by an entity 
26 recognized by the school district that consists primarily 
 
 
10300HB4951sam002- 531 -LRB103 38094 HLH 74177 a


1 of volunteers and includes parents and teachers of the 
2 school children. This paragraph does not apply to 
3 fundraising events (i) for the benefit of private home 
4 instruction or (ii) for which the fundraising entity 
5 purchases the personal property sold at the events from 
6 another individual or entity that sold the property for 
7 the purpose of resale by the fundraising entity and that 
8 profits from the sale to the fundraising entity. This 
9 paragraph is exempt from the provisions of Section 2-70.
10  (35) Beginning January 1, 2000 and through December 
11 31, 2001, new or used automatic vending machines that 
12 prepare and serve hot food and beverages, including 
13 coffee, soup, and other items, and replacement parts for 
14 these machines. Beginning January 1, 2002 and through June 
15 30, 2003, machines and parts for machines used in 
16 commercial, coin-operated amusement and vending business 
17 if a use or occupation tax is paid on the gross receipts 
18 derived from the use of the commercial, coin-operated 
19 amusement and vending machines. This paragraph is exempt 
20 from the provisions of Section 2-70.
21  (35-5) Beginning August 23, 2001 and through June 30, 
22 2016, food for human consumption that is to be consumed 
23 off the premises where it is sold (other than alcoholic 
24 beverages, soft drinks, and food that has been prepared 
25 for immediate consumption) and prescription and 
26 nonprescription medicines, drugs, medical appliances, and 
 
 
10300HB4951sam002- 532 -LRB103 38094 HLH 74177 a


1 insulin, urine testing materials, syringes, and needles 
2 used by diabetics, for human use, when purchased for use 
3 by a person receiving medical assistance under Article V 
4 of the Illinois Public Aid Code who resides in a licensed 
5 long-term care facility, as defined in the Nursing Home 
6 Care Act, or a licensed facility as defined in the ID/DD 
7 Community Care Act, the MC/DD Act, or the Specialized 
8 Mental Health Rehabilitation Act of 2013.
9  (36) Beginning August 2, 2001, computers and 
10 communications equipment utilized for any hospital purpose 
11 and equipment used in the diagnosis, analysis, or 
12 treatment of hospital patients sold to a lessor who leases 
13 the equipment, under a lease of one year or longer 
14 executed or in effect at the time of the purchase, to a 
15 hospital that has been issued an active tax exemption 
16 identification number by the Department under Section 1g 
17 of this Act. This paragraph is exempt from the provisions 
18 of Section 2-70.
19  (37) Beginning August 2, 2001, personal property sold 
20 to a lessor who leases the property, under a lease of one 
21 year or longer executed or in effect at the time of the 
22 purchase, to a governmental body that has been issued an 
23 active tax exemption identification number by the 
24 Department under Section 1g of this Act. This paragraph is 
25 exempt from the provisions of Section 2-70.
26  (38) Beginning on January 1, 2002 and through June 30, 
 
 
10300HB4951sam002- 533 -LRB103 38094 HLH 74177 a


1 2016, tangible personal property purchased from an 
2 Illinois retailer by a taxpayer engaged in centralized 
3 purchasing activities in Illinois who will, upon receipt 
4 of the property in Illinois, temporarily store the 
5 property in Illinois (i) for the purpose of subsequently 
6 transporting it outside this State for use or consumption 
7 thereafter solely outside this State or (ii) for the 
8 purpose of being processed, fabricated, or manufactured 
9 into, attached to, or incorporated into other tangible 
10 personal property to be transported outside this State and 
11 thereafter used or consumed solely outside this State. The 
12 Director of Revenue shall, pursuant to rules adopted in 
13 accordance with the Illinois Administrative Procedure Act, 
14 issue a permit to any taxpayer in good standing with the 
15 Department who is eligible for the exemption under this 
16 paragraph (38). The permit issued under this paragraph 
17 (38) shall authorize the holder, to the extent and in the 
18 manner specified in the rules adopted under this Act, to 
19 purchase tangible personal property from a retailer exempt 
20 from the taxes imposed by this Act. Taxpayers shall 
21 maintain all necessary books and records to substantiate 
22 the use and consumption of all such tangible personal 
23 property outside of the State of Illinois.
24  (39) Beginning January 1, 2008, tangible personal 
25 property used in the construction or maintenance of a 
26 community water supply, as defined under Section 3.145 of 
 
 
10300HB4951sam002- 534 -LRB103 38094 HLH 74177 a


1 the Environmental Protection Act, that is operated by a 
2 not-for-profit corporation that holds a valid water supply 
3 permit issued under Title IV of the Environmental 
4 Protection Act. This paragraph is exempt from the 
5 provisions of Section 2-70. 
6  (40) Beginning January 1, 2010 and continuing through 
7 December 31, 2029, materials, parts, equipment, 
8 components, and furnishings incorporated into or upon an 
9 aircraft as part of the modification, refurbishment, 
10 completion, replacement, repair, or maintenance of the 
11 aircraft. This exemption includes consumable supplies used 
12 in the modification, refurbishment, completion, 
13 replacement, repair, and maintenance of aircraft. However, 
14 until January 1, 2024, this exemption excludes any 
15 materials, parts, equipment, components, and consumable 
16 supplies used in the modification, replacement, repair, 
17 and maintenance of aircraft engines or power plants, 
18 whether such engines or power plants are installed or 
19 uninstalled upon any such aircraft. "Consumable supplies" 
20 include, but are not limited to, adhesive, tape, 
21 sandpaper, general purpose lubricants, cleaning solution, 
22 latex gloves, and protective films. 
23  Beginning January 1, 2010 and continuing through 
24 December 31, 2023, this exemption applies only to the sale 
25 of qualifying tangible personal property to persons who 
26 modify, refurbish, complete, replace, or maintain an 
 
 
10300HB4951sam002- 535 -LRB103 38094 HLH 74177 a


1 aircraft and who (i) hold an Air Agency Certificate and 
2 are empowered to operate an approved repair station by the 
3 Federal Aviation Administration, (ii) have a Class IV 
4 Rating, and (iii) conduct operations in accordance with 
5 Part 145 of the Federal Aviation Regulations. The 
6 exemption does not include aircraft operated by a 
7 commercial air carrier providing scheduled passenger air 
8 service pursuant to authority issued under Part 121 or 
9 Part 129 of the Federal Aviation Regulations. From January 
10 1, 2024 through December 31, 2029, this exemption applies 
11 only to the use of qualifying tangible personal property 
12 by: (A) persons who modify, refurbish, complete, repair, 
13 replace, or maintain aircraft and who (i) hold an Air 
14 Agency Certificate and are empowered to operate an 
15 approved repair station by the Federal Aviation 
16 Administration, (ii) have a Class IV Rating, and (iii) 
17 conduct operations in accordance with Part 145 of the 
18 Federal Aviation Regulations; and (B) persons who engage 
19 in the modification, replacement, repair, and maintenance 
20 of aircraft engines or power plants without regard to 
21 whether or not those persons meet the qualifications of 
22 item (A).
23  The changes made to this paragraph (40) by Public Act 
24 98-534 are declarative of existing law. It is the intent 
25 of the General Assembly that the exemption under this 
26 paragraph (40) applies continuously from January 1, 2010 
 
 
10300HB4951sam002- 536 -LRB103 38094 HLH 74177 a


1 through December 31, 2024; however, no claim for credit or 
2 refund is allowed for taxes paid as a result of the 
3 disallowance of this exemption on or after January 1, 2015 
4 and prior to February 5, 2020 (the effective date of 
5 Public Act 101-629).
6  (41) Tangible personal property sold to a 
7 public-facilities corporation, as described in Section 
8 11-65-10 of the Illinois Municipal Code, for purposes of 
9 constructing or furnishing a municipal convention hall, 
10 but only if the legal title to the municipal convention 
11 hall is transferred to the municipality without any 
12 further consideration by or on behalf of the municipality 
13 at the time of the completion of the municipal convention 
14 hall or upon the retirement or redemption of any bonds or 
15 other debt instruments issued by the public-facilities 
16 corporation in connection with the development of the 
17 municipal convention hall. This exemption includes 
18 existing public-facilities corporations as provided in 
19 Section 11-65-25 of the Illinois Municipal Code. This 
20 paragraph is exempt from the provisions of Section 2-70. 
21  (42) Beginning January 1, 2017 and through December 
22 31, 2026, menstrual pads, tampons, and menstrual cups. 
23  (43) Merchandise that is subject to the Rental 
24 Purchase Agreement Occupation and Use Tax. The purchaser 
25 must certify that the item is purchased to be rented 
26 subject to a rental-purchase rental purchase agreement, as 
 
 
10300HB4951sam002- 537 -LRB103 38094 HLH 74177 a


1 defined in the Rental-Purchase Rental Purchase Agreement 
2 Act, and provide proof of registration under the Rental 
3 Purchase Agreement Occupation and Use Tax Act. This 
4 paragraph is exempt from the provisions of Section 2-70.
5  (44) Qualified tangible personal property used in the 
6 construction or operation of a data center that has been 
7 granted a certificate of exemption by the Department of 
8 Commerce and Economic Opportunity, whether that tangible 
9 personal property is purchased by the owner, operator, or 
10 tenant of the data center or by a contractor or 
11 subcontractor of the owner, operator, or tenant. Data 
12 centers that would have qualified for a certificate of 
13 exemption prior to January 1, 2020 had Public Act 101-31 
14 been in effect, may apply for and obtain an exemption for 
15 subsequent purchases of computer equipment or enabling 
16 software purchased or leased to upgrade, supplement, or 
17 replace computer equipment or enabling software purchased 
18 or leased in the original investment that would have 
19 qualified. 
20  The Department of Commerce and Economic Opportunity 
21 shall grant a certificate of exemption under this item 
22 (44) to qualified data centers as defined by Section 
23 605-1025 of the Department of Commerce and Economic 
24 Opportunity Law of the Civil Administrative Code of 
25 Illinois. 
26  For the purposes of this item (44): 
 
 
10300HB4951sam002- 538 -LRB103 38094 HLH 74177 a


1   "Data center" means a building or a series of 
2 buildings rehabilitated or constructed to house 
3 working servers in one physical location or multiple 
4 sites within the State of Illinois. 
5   "Qualified tangible personal property" means: 
6 electrical systems and equipment; climate control and 
7 chilling equipment and systems; mechanical systems and 
8 equipment; monitoring and secure systems; emergency 
9 generators; hardware; computers; servers; data storage 
10 devices; network connectivity equipment; racks; 
11 cabinets; telecommunications cabling infrastructure; 
12 raised floor systems; peripheral components or 
13 systems; software; mechanical, electrical, or plumbing 
14 systems; battery systems; cooling systems and towers; 
15 temperature control systems; other cabling; and other 
16 data center infrastructure equipment and systems 
17 necessary to operate qualified tangible personal 
18 property, including fixtures; and component parts of 
19 any of the foregoing, including installation, 
20 maintenance, repair, refurbishment, and replacement of 
21 qualified tangible personal property to generate, 
22 transform, transmit, distribute, or manage electricity 
23 necessary to operate qualified tangible personal 
24 property; and all other tangible personal property 
25 that is essential to the operations of a computer data 
26 center. The term "qualified tangible personal 
 
 
10300HB4951sam002- 539 -LRB103 38094 HLH 74177 a


1 property" also includes building materials physically 
2 incorporated into the qualifying data center. To 
3 document the exemption allowed under this Section, the 
4 retailer must obtain from the purchaser a copy of the 
5 certificate of eligibility issued by the Department of 
6 Commerce and Economic Opportunity. 
7  This item (44) is exempt from the provisions of 
8 Section 2-70. 
9  (45) Beginning January 1, 2020 and through December 
10 31, 2020, sales of tangible personal property made by a 
11 marketplace seller over a marketplace for which tax is due 
12 under this Act but for which use tax has been collected and 
13 remitted to the Department by a marketplace facilitator 
14 under Section 2d of the Use Tax Act are exempt from tax 
15 under this Act. A marketplace seller claiming this 
16 exemption shall maintain books and records demonstrating 
17 that the use tax on such sales has been collected and 
18 remitted by a marketplace facilitator. Marketplace sellers 
19 that have properly remitted tax under this Act on such 
20 sales may file a claim for credit as provided in Section 6 
21 of this Act. No claim is allowed, however, for such taxes 
22 for which a credit or refund has been issued to the 
23 marketplace facilitator under the Use Tax Act, or for 
24 which the marketplace facilitator has filed a claim for 
25 credit or refund under the Use Tax Act. 
26  (46) Beginning July 1, 2022, breast pumps, breast pump 
 
 
10300HB4951sam002- 540 -LRB103 38094 HLH 74177 a


1 collection and storage supplies, and breast pump kits. 
2 This item (46) is exempt from the provisions of Section 
3 2-70. As used in this item (46): 
4  "Breast pump" means an electrically controlled or 
5 manually controlled pump device designed or marketed to be 
6 used to express milk from a human breast during lactation, 
7 including the pump device and any battery, AC adapter, or 
8 other power supply unit that is used to power the pump 
9 device and is packaged and sold with the pump device at the 
10 time of sale. 
11  "Breast pump collection and storage supplies" means 
12 items of tangible personal property designed or marketed 
13 to be used in conjunction with a breast pump to collect 
14 milk expressed from a human breast and to store collected 
15 milk until it is ready for consumption. 
16  "Breast pump collection and storage supplies" 
17 includes, but is not limited to: breast shields and breast 
18 shield connectors; breast pump tubes and tubing adapters; 
19 breast pump valves and membranes; backflow protectors and 
20 backflow protector adaptors; bottles and bottle caps 
21 specific to the operation of the breast pump; and breast 
22 milk storage bags. 
23  "Breast pump collection and storage supplies" does not 
24 include: (1) bottles and bottle caps not specific to the 
25 operation of the breast pump; (2) breast pump travel bags 
26 and other similar carrying accessories, including ice 
 
 
10300HB4951sam002- 541 -LRB103 38094 HLH 74177 a


1 packs, labels, and other similar products; (3) breast pump 
2 cleaning supplies; (4) nursing bras, bra pads, breast 
3 shells, and other similar products; and (5) creams, 
4 ointments, and other similar products that relieve 
5 breastfeeding-related symptoms or conditions of the 
6 breasts or nipples, unless sold as part of a breast pump 
7 kit that is pre-packaged by the breast pump manufacturer 
8 or distributor. 
9  "Breast pump kit" means a kit that: (1) contains no 
10 more than a breast pump, breast pump collection and 
11 storage supplies, a rechargeable battery for operating the 
12 breast pump, a breastmilk cooler, bottle stands, ice 
13 packs, and a breast pump carrying case; and (2) is 
14 pre-packaged as a breast pump kit by the breast pump 
15 manufacturer or distributor. 
16  (47) Tangible personal property sold by or on behalf 
17 of the State Treasurer pursuant to the Revised Uniform 
18 Unclaimed Property Act. This item (47) is exempt from the 
19 provisions of Section 2-70. 
20  (48) Beginning on January 1, 2024, tangible personal 
21 property purchased by an active duty member of the armed 
22 forces of the United States who presents valid military 
23 identification and purchases the property using a form of 
24 payment where the federal government is the payor. The 
25 member of the armed forces must complete, at the point of 
26 sale, a form prescribed by the Department of Revenue 
 
 
10300HB4951sam002- 542 -LRB103 38094 HLH 74177 a


1 documenting that the transaction is eligible for the 
2 exemption under this paragraph. Retailers must keep the 
3 form as documentation of the exemption in their records 
4 for a period of not less than 6 years. "Armed forces of the 
5 United States" means the United States Army, Navy, Air 
6 Force, Marine Corps, or Coast Guard. This paragraph is 
7 exempt from the provisions of Section 2-70. 
8  (49) Gross receipts from the lease of the following 
9 tangible personal property:
10   (1) computer software transferred subject to a 
11 license that meets the following requirements:
12    (A) it is evidenced by a written agreement 
13 signed by the licensor and the customer;
14     (i) an electronic agreement in which the 
15 customer accepts the license by means of an 
16 electronic signature that is verifiable and 
17 can be authenticated and is attached to or 
18 made part of the license will comply with this 
19 requirement;
20     (ii) a license agreement in which the 
21 customer electronically accepts the terms by 
22 clicking "I agree" does not comply with this 
23 requirement;
24    (B) it restricts the customer's duplication 
25 and use of the software;
26    (C) it prohibits the customer from licensing, 
 
 
10300HB4951sam002- 543 -LRB103 38094 HLH 74177 a


1 sublicensing, or transferring the software to a 
2 third party (except to a related party) without 
3 the permission and continued control of the 
4 licensor;
5    (D) the licensor has a policy of providing 
6 another copy at minimal or no charge if the 
7 customer loses or damages the software, or of 
8 permitting the licensee to make and keep an 
9 archival copy, and such policy is either stated in 
10 the license agreement, supported by the licensor's 
11 books and records, or supported by a notarized 
12 statement made under penalties of perjury by the 
13 licensor; and
14    (E) the customer must destroy or return all 
15 copies of the software to the licensor at the end 
16 of the license period; this provision is deemed to 
17 be met, in the case of a perpetual license, 
18 without being set forth in the license agreement; 
19 and
20   (2) property that is subject to a tax on lease 
21 receipts imposed by a home rule unit of local 
22 government if the ordinance imposing that tax was 
23 adopted prior to January 1, 2023. 
24(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 
25102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, 
26Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 
 
 
10300HB4951sam002- 544 -LRB103 38094 HLH 74177 a


15-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 
25-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff. 
36-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised 
412-12-23.)

5 (35 ILCS 120/2-10)
6 Sec. 2-10. Rate of tax. Unless otherwise provided in this 
7Section, the tax imposed by this Act is at the rate of 6.25% of 
8gross receipts from sales, which, on and after January 1, 
92025, includes leases, of tangible personal property made in 
10the course of business.
11 Beginning on July 1, 2000 and through December 31, 2000, 
12with respect to motor fuel, as defined in Section 1.1 of the 
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of 
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15 Beginning on August 6, 2010 through August 15, 2010, and 
16beginning again on August 5, 2022 through August 14, 2022, 
17with respect to sales tax holiday items as defined in Section 
182-8 of this Act, the tax is imposed at the rate of 1.25%. 
19 Within 14 days after July 1, 2000 (the effective date of 
20Public Act 91-872), each retailer of motor fuel and gasohol 
21shall cause the following notice to be posted in a prominently 
22visible place on each retail dispensing device that is used to 
23dispense motor fuel or gasohol in the State of Illinois: "As of 
24July 1, 2000, the State of Illinois has eliminated the State's 
25share of sales tax on motor fuel and gasohol through December 
 
 
10300HB4951sam002- 545 -LRB103 38094 HLH 74177 a


131, 2000. The price on this pump should reflect the 
2elimination of the tax." The notice shall be printed in bold 
3print on a sign that is no smaller than 4 inches by 8 inches. 
4The sign shall be clearly visible to customers. Any retailer 
5who fails to post or maintain a required sign through December 
631, 2000 is guilty of a petty offense for which the fine shall 
7be $500 per day per each retail premises where a violation 
8occurs.
9 With respect to gasohol, as defined in the Use Tax Act, the 
10tax imposed by this Act applies to (i) 70% of the proceeds of 
11sales made on or after January 1, 1990, and before July 1, 
122003, (ii) 80% of the proceeds of sales made on or after July 
131, 2003 and on or before July 1, 2017, (iii) 100% of the 
14proceeds of sales made after July 1, 2017 and prior to January 
151, 2024, (iv) 90% of the proceeds of sales made on or after 
16January 1, 2024 and on or before December 31, 2028, and (v) 
17100% of the proceeds of sales made after December 31, 2028. If, 
18at any time, however, the tax under this Act on sales of 
19gasohol, as defined in the Use Tax Act, is imposed at the rate 
20of 1.25%, then the tax imposed by this Act applies to 100% of 
21the proceeds of sales of gasohol made during that time.
22 With respect to mid-range ethanol blends, as defined in 
23Section 3-44.3 of the Use Tax Act, the tax imposed by this Act 
24applies to (i) 80% of the proceeds of sales made on or after 
25January 1, 2024 and on or before December 31, 2028 and (ii) 
26100% of the proceeds of sales made after December 31, 2028. If, 
 
 
10300HB4951sam002- 546 -LRB103 38094 HLH 74177 a


1at any time, however, the tax under this Act on sales of 
2mid-range ethanol blends is imposed at the rate of 1.25%, then 
3the tax imposed by this Act applies to 100% of the proceeds of 
4sales of mid-range ethanol blends made during that time. 
5 With respect to majority blended ethanol fuel, as defined 
6in the Use Tax Act, the tax imposed by this Act does not apply 
7to the proceeds of sales made on or after July 1, 2003 and on 
8or before December 31, 2028 but applies to 100% of the proceeds 
9of sales made thereafter.
10 With respect to biodiesel blends, as defined in the Use 
11Tax Act, with no less than 1% and no more than 10% biodiesel, 
12the tax imposed by this Act applies to (i) 80% of the proceeds 
13of sales made on or after July 1, 2003 and on or before 
14December 31, 2018 and (ii) 100% of the proceeds of sales made 
15after December 31, 2018 and before January 1, 2024. On and 
16after January 1, 2024 and on or before December 31, 2030, the 
17taxation of biodiesel, renewable diesel, and biodiesel blends 
18shall be as provided in Section 3-5.1 of the Use Tax Act. If, 
19at any time, however, the tax under this Act on sales of 
20biodiesel blends, as defined in the Use Tax Act, with no less 
21than 1% and no more than 10% biodiesel is imposed at the rate 
22of 1.25%, then the tax imposed by this Act applies to 100% of 
23the proceeds of sales of biodiesel blends with no less than 1% 
24and no more than 10% biodiesel made during that time.
25 With respect to biodiesel, as defined in the Use Tax Act, 
26and biodiesel blends, as defined in the Use Tax Act, with more 
 
 
10300HB4951sam002- 547 -LRB103 38094 HLH 74177 a


1than 10% but no more than 99% biodiesel, the tax imposed by 
2this Act does not apply to the proceeds of sales made on or 
3after July 1, 2003 and on or before December 31, 2023. On and 
4after January 1, 2024 and on or before December 31, 2030, the 
5taxation of biodiesel, renewable diesel, and biodiesel blends 
6shall be as provided in Section 3-5.1 of the Use Tax Act. 
7 Until July 1, 2022 and beginning again on July 1, 2023, 
8with respect to food for human consumption that is to be 
9consumed off the premises where it is sold (other than 
10alcoholic beverages, food consisting of or infused with adult 
11use cannabis, soft drinks, and food that has been prepared for 
12immediate consumption), the tax is imposed at the rate of 1%. 
13Beginning July 1, 2022 and until July 1, 2023, with respect to 
14food for human consumption that is to be consumed off the 
15premises where it is sold (other than alcoholic beverages, 
16food consisting of or infused with adult use cannabis, soft 
17drinks, and food that has been prepared for immediate 
18consumption), the tax is imposed at the rate of 0%. 
19 With respect to prescription and nonprescription 
20medicines, drugs, medical appliances, products classified as 
21Class III medical devices by the United States Food and Drug 
22Administration that are used for cancer treatment pursuant to 
23a prescription, as well as any accessories and components 
24related to those devices, modifications to a motor vehicle for 
25the purpose of rendering it usable by a person with a 
26disability, and insulin, blood sugar testing materials, 
 
 
10300HB4951sam002- 548 -LRB103 38094 HLH 74177 a


1syringes, and needles used by human diabetics, the tax is 
2imposed at the rate of 1%. For the purposes of this Section, 
3until September 1, 2009: the term "soft drinks" means any 
4complete, finished, ready-to-use, non-alcoholic drink, whether 
5carbonated or not, including, but not limited to, soda water, 
6cola, fruit juice, vegetable juice, carbonated water, and all 
7other preparations commonly known as soft drinks of whatever 
8kind or description that are contained in any closed or sealed 
9bottle, can, carton, or container, regardless of size; but 
10"soft drinks" does not include coffee, tea, non-carbonated 
11water, infant formula, milk or milk products as defined in the 
12Grade A Pasteurized Milk and Milk Products Act, or drinks 
13containing 50% or more natural fruit or vegetable juice.
14 Notwithstanding any other provisions of this Act, 
15beginning September 1, 2009, "soft drinks" means non-alcoholic 
16beverages that contain natural or artificial sweeteners. "Soft 
17drinks" does not include beverages that contain milk or milk 
18products, soy, rice or similar milk substitutes, or greater 
19than 50% of vegetable or fruit juice by volume.
20 Until August 1, 2009, and notwithstanding any other 
21provisions of this Act, "food for human consumption that is to 
22be consumed off the premises where it is sold" includes all 
23food sold through a vending machine, except soft drinks and 
24food products that are dispensed hot from a vending machine, 
25regardless of the location of the vending machine. Beginning 
26August 1, 2009, and notwithstanding any other provisions of 
 
 
10300HB4951sam002- 549 -LRB103 38094 HLH 74177 a


1this Act, "food for human consumption that is to be consumed 
2off the premises where it is sold" includes all food sold 
3through a vending machine, except soft drinks, candy, and food 
4products that are dispensed hot from a vending machine, 
5regardless of the location of the vending machine. 
6 Notwithstanding any other provisions of this Act, 
7beginning September 1, 2009, "food for human consumption that 
8is to be consumed off the premises where it is sold" does not 
9include candy. For purposes of this Section, "candy" means a 
10preparation of sugar, honey, or other natural or artificial 
11sweeteners in combination with chocolate, fruits, nuts or 
12other ingredients or flavorings in the form of bars, drops, or 
13pieces. "Candy" does not include any preparation that contains 
14flour or requires refrigeration. 
15 Notwithstanding any other provisions of this Act, 
16beginning September 1, 2009, "nonprescription medicines and 
17drugs" does not include grooming and hygiene products. For 
18purposes of this Section, "grooming and hygiene products" 
19includes, but is not limited to, soaps and cleaning solutions, 
20shampoo, toothpaste, mouthwash, antiperspirants, and sun tan 
21lotions and screens, unless those products are available by 
22prescription only, regardless of whether the products meet the 
23definition of "over-the-counter-drugs". For the purposes of 
24this paragraph, "over-the-counter-drug" means a drug for human 
25use that contains a label that identifies the product as a drug 
26as required by 21 CFR 201.66. The "over-the-counter-drug" 
 
 
10300HB4951sam002- 550 -LRB103 38094 HLH 74177 a


1label includes: 
2  (A) a "Drug Facts" panel; or
3  (B) a statement of the "active ingredient(s)" with a 
4 list of those ingredients contained in the compound, 
5 substance or preparation.
6 Beginning on January 1, 2014 (the effective date of Public 
7Act 98-122), "prescription and nonprescription medicines and 
8drugs" includes medical cannabis purchased from a registered 
9dispensing organization under the Compassionate Use of Medical 
10Cannabis Program Act. 
11 As used in this Section, "adult use cannabis" means 
12cannabis subject to tax under the Cannabis Cultivation 
13Privilege Tax Law and the Cannabis Purchaser Excise Tax Law 
14and does not include cannabis subject to tax under the 
15Compassionate Use of Medical Cannabis Program Act. 
16(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, 
17Section 20-20, eff. 4-19-22; 102-700, Article 60, Section 
1860-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 
194-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)

20 (35 ILCS 120/2-12)
21 Sec. 2-12. Location where retailer is deemed to be engaged 
22in the business of selling. The purpose of this Section is to 
23specify where a retailer is deemed to be engaged in the 
24business of selling tangible personal property for the 
25purposes of this Act, the Use Tax Act, the Service Use Tax Act, 
 
 
10300HB4951sam002- 551 -LRB103 38094 HLH 74177 a


1and the Service Occupation Tax Act, and for the purpose of 
2collecting any other local retailers' occupation tax 
3administered by the Department. This Section applies only with 
4respect to the particular selling activities described in the 
5following paragraphs. The provisions of this Section are not 
6intended to, and shall not be interpreted to, affect where a 
7retailer is deemed to be engaged in the business of selling 
8with respect to any activity that is not specifically 
9described in the following paragraphs.
10  (1) If a purchaser who is present at the retailer's 
11 place of business, having no prior commitment to the 
12 retailer, agrees to purchase and makes payment for 
13 tangible personal property at the retailer's place of 
14 business, then the transaction shall be deemed an 
15 over-the-counter sale occurring at the retailer's same 
16 place of business where the purchaser was present and made 
17 payment for that tangible personal property if the 
18 retailer regularly stocks the purchased tangible personal 
19 property or similar tangible personal property in the 
20 quantity, or similar quantity, for sale at the retailer's 
21 same place of business and then either (i) the purchaser 
22 takes possession of the tangible personal property at the 
23 same place of business or (ii) the retailer delivers or 
24 arranges for the tangible personal property to be 
25 delivered to the purchaser. 
26  (2) If a purchaser, having no prior commitment to the 
 
 
10300HB4951sam002- 552 -LRB103 38094 HLH 74177 a


1 retailer, agrees to purchase tangible personal property 
2 and makes payment over the phone, in writing, or via the 
3 Internet and takes possession of the tangible personal 
4 property at the retailer's place of business, then the 
5 sale shall be deemed to have occurred at the retailer's 
6 place of business where the purchaser takes possession of 
7 the property if the retailer regularly stocks the item or 
8 similar items in the quantity, or similar quantities, 
9 purchased by the purchaser. 
10  (3) A retailer is deemed to be engaged in the business 
11 of selling food, beverages, or other tangible personal 
12 property through a vending machine at the location where 
13 the vending machine is located at the time the sale is made 
14 if (i) the vending machine is a device operated by coin, 
15 currency, credit card, token, coupon or similar device; 
16 (2) the food, beverage or other tangible personal property 
17 is contained within the vending machine and dispensed from 
18 the vending machine; and (3) the purchaser takes 
19 possession of the purchased food, beverage or other 
20 tangible personal property immediately. 
21  (4) Minerals. A producer of coal or other mineral 
22 mined in Illinois is deemed to be engaged in the business 
23 of selling at the place where the coal or other mineral 
24 mined in Illinois is extracted from the earth. With 
25 respect to minerals (i) the term "extracted from the 
26 earth" means the location at which the coal or other 
 
 
10300HB4951sam002- 553 -LRB103 38094 HLH 74177 a


1 mineral is extracted from the mouth of the mine, and (ii) a 
2 "mineral" includes not only coal, but also oil, sand, 
3 stone taken from a quarry, gravel and any other thing 
4 commonly regarded as a mineral and extracted from the 
5 earth. This paragraph does not apply to coal or another 
6 mineral when it is delivered or shipped by the seller to 
7 the purchaser at a point outside Illinois so that the sale 
8 is exempt under the United States Constitution as a sale 
9 in interstate or foreign commerce. 
10  (5) A retailer selling tangible personal property to a 
11 nominal lessee or bailee pursuant to a lease with a dollar 
12 or other nominal option to purchase is engaged in the 
13 business of selling at the location where the property is 
14 first delivered to the lessee or bailee for its intended 
15 use. 
16  (5.5) Lease transactions. The lease of tangible 
17 personal property that is subject to the tax on leases 
18 under this amendatory Act of the 103rd General Assembly is 
19 sourced as follows:
20   (i) For a lease that requires recurring periodic 
21 payments and for which the property is delivered to 
22 the lessee by the lessor, each periodic payment is 
23 sourced to the primary property location for each 
24 period covered by the payment. The primary property 
25 location shall be as indicated by an address for the 
26 property provided by the lessee that is available to 
 
 
10300HB4951sam002- 554 -LRB103 38094 HLH 74177 a


1 the lessor from its records maintained in the ordinary 
2 course of business, when use of this address does not 
3 constitute bad faith. The property location is not 
4 altered by intermittent use at different locations, 
5 such as use of business property that accompanies 
6 employees on business trips and service calls.
7   (ii) For all other leases, including a lease that 
8 does not require recurring periodic payments and any 
9 lease for which the lessee takes possession of the 
10 property at the lessor's place of business, the 
11 payment is sourced as otherwise provided under this 
12 Act for sales at retail other than leases. 
13  (6) Beginning on January 1, 2021, a remote retailer 
14 making retail sales of tangible personal property that 
15 meet or exceed the thresholds established in paragraph (1) 
16 or (2) of subsection (b) of Section 2 of this Act is 
17 engaged in the business of selling at the Illinois 
18 location to which the tangible personal property is 
19 shipped or delivered or at which possession is taken by 
20 the purchaser. 
21  (7) Beginning January 1, 2021, a marketplace 
22 facilitator facilitating sales of tangible personal 
23 property that meet or exceed one of the thresholds 
24 established in paragraph (1) or (2) of subsection (c) of 
25 Section 2 of this Act is deemed to be engaged in the 
26 business of selling at the Illinois location to which the 
 
 
10300HB4951sam002- 555 -LRB103 38094 HLH 74177 a


1 tangible personal property is shipped or delivered or at 
2 which possession is taken by the purchaser when the sale 
3 is made by a marketplace seller on the marketplace 
4 facilitator's marketplace. 
5(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)

6 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
7 Sec. 2a. Registration of retailers. It is unlawful for any 
8person to engage in the business of selling, which, on and 
9after January 1, 2025, includes leasing, tangible personal 
10property at retail in this State without a certificate of 
11registration from the Department. Application for a 
12certificate of registration shall be made to the Department 
13upon forms furnished by it. Each such application shall be 
14signed and verified and shall state: (1) the name and social 
15security number of the applicant; (2) the address of his 
16principal place of business; (3) the address of the principal 
17place of business from which he engages in the business of 
18selling tangible personal property at retail in this State and 
19the addresses of all other places of business, if any 
20(enumerating such addresses, if any, in a separate list 
21attached to and made a part of the application), from which he 
22engages in the business of selling tangible personal property 
23at retail in this State; (4) the name and address of the person 
24or persons who will be responsible for filing returns and 
25payment of taxes due under this Act; (5) in the case of a 
 
 
10300HB4951sam002- 556 -LRB103 38094 HLH 74177 a


1publicly traded corporation, the name and title of the Chief 
2Financial Officer, Chief Operating Officer, and any other 
3officer or employee with responsibility for preparing tax 
4returns under this Act, and, in the case of all other 
5corporations, the name, title, and social security number of 
6each corporate officer; (6) in the case of a limited liability 
7company, the name, social security number, and FEIN number of 
8each manager and member; and (7) such other information as the 
9Department may reasonably require. The application shall 
10contain an acceptance of responsibility signed by the person 
11or persons who will be responsible for filing returns and 
12payment of the taxes due under this Act. If the applicant will 
13sell tangible personal property at retail through vending 
14machines, his application to register shall indicate the 
15number of vending machines to be so operated. If requested by 
16the Department at any time, that person shall verify the total 
17number of vending machines he or she uses in his or her 
18business of selling tangible personal property at retail.
19 The Department shall provide by rule for an expedited 
20business registration process for remote retailers required to 
21register and file under subsection (b) of Section 2 who use a 
22certified service provider to file their returns under this 
23Act. Such expedited registration process shall allow the 
24Department to register a taxpayer based upon the same 
25registration information required by the Streamlined Sales Tax 
26Governing Board for states participating in the Streamlined 
 
 
10300HB4951sam002- 557 -LRB103 38094 HLH 74177 a


1Sales Tax Project. 
2 The Department may deny a certificate of registration to 
3any applicant if a person who is named as the owner, a partner, 
4a manager or member of a limited liability company, or a 
5corporate officer of the applicant on the application for the 
6certificate of registration is or has been named as the owner, 
7a partner, a manager or member of a limited liability company, 
8or a corporate officer on the application for the certificate 
9of registration of another retailer that (i) is in default for 
10moneys due under this Act or any other tax or fee Act 
11administered by the Department or (ii) fails to file any 
12return, on or before the due date prescribed for filing that 
13return (including any extensions of time granted by the 
14Department), that the retailer is required to file under this 
15Act or any other tax or fee Act administered by the Department. 
16For purposes of this paragraph only, in determining whether a 
17person is in default for moneys due, the Department shall 
18include only amounts established as a final liability within 
19the 23 years prior to the date of the Department's notice of 
20denial of a certificate of registration. 
21 The Department may require an applicant for a certificate 
22of registration hereunder to, at the time of filing such 
23application, furnish a bond from a surety company authorized 
24to do business in the State of Illinois, or an irrevocable bank 
25letter of credit or a bond signed by 2 personal sureties who 
26have filed, with the Department, sworn statements disclosing 
 
 
10300HB4951sam002- 558 -LRB103 38094 HLH 74177 a


1net assets equal to at least 3 times the amount of the bond to 
2be required of such applicant, or a bond secured by an 
3assignment of a bank account or certificate of deposit, stocks 
4or bonds, conditioned upon the applicant paying to the State 
5of Illinois all moneys becoming due under this Act and under 
6any other State tax law or municipal or county tax ordinance or 
7resolution under which the certificate of registration that is 
8issued to the applicant under this Act will permit the 
9applicant to engage in business without registering separately 
10under such other law, ordinance or resolution. In making a 
11determination as to whether to require a bond or other 
12security, the Department shall take into consideration whether 
13the owner, any partner, any manager or member of a limited 
14liability company, or a corporate officer of the applicant is 
15or has been the owner, a partner, a manager or member of a 
16limited liability company, or a corporate officer of another 
17retailer that is in default for moneys due under this Act or 
18any other tax or fee Act administered by the Department; and 
19whether the owner, any partner, any manager or member of a 
20limited liability company, or a corporate officer of the 
21applicant is or has been the owner, a partner, a manager or 
22member of a limited liability company, or a corporate officer 
23of another retailer whose certificate of registration has been 
24revoked within the previous 5 years under this Act or any other 
25tax or fee Act administered by the Department. If a bond or 
26other security is required, the Department shall fix the 
 
 
10300HB4951sam002- 559 -LRB103 38094 HLH 74177 a


1amount of the bond or other security, taking into 
2consideration the amount of money expected to become due from 
3the applicant under this Act and under any other State tax law 
4or municipal or county tax ordinance or resolution under which 
5the certificate of registration that is issued to the 
6applicant under this Act will permit the applicant to engage 
7in business without registering separately under such other 
8law, ordinance, or resolution. The amount of security required 
9by the Department shall be such as, in its opinion, will 
10protect the State of Illinois against failure to pay the 
11amount which may become due from the applicant under this Act 
12and under any other State tax law or municipal or county tax 
13ordinance or resolution under which the certificate of 
14registration that is issued to the applicant under this Act 
15will permit the applicant to engage in business without 
16registering separately under such other law, ordinance or 
17resolution, but the amount of the security required by the 
18Department shall not exceed three times the amount of the 
19applicant's average monthly tax liability, or $50,000.00, 
20whichever amount is lower.
21 No certificate of registration under this Act shall be 
22issued by the Department until the applicant provides the 
23Department with satisfactory security, if required, as herein 
24provided for.
25 Upon receipt of the application for certificate of 
26registration in proper form, and upon approval by the 
 
 
10300HB4951sam002- 560 -LRB103 38094 HLH 74177 a


1Department of the security furnished by the applicant, if 
2required, the Department shall issue to such applicant a 
3certificate of registration which shall permit the person to 
4whom it is issued to engage in the business of selling tangible 
5personal property at retail in this State. The certificate of 
6registration shall be conspicuously displayed at the place of 
7business which the person so registered states in his 
8application to be the principal place of business from which 
9he engages in the business of selling tangible personal 
10property at retail in this State.
11 No certificate of registration issued prior to July 1, 
122017 to a taxpayer who files returns required by this Act on a 
13monthly basis or renewed prior to July 1, 2017 by a taxpayer 
14who files returns required by this Act on a monthly basis shall 
15be valid after the expiration of 5 years from the date of its 
16issuance or last renewal. No certificate of registration 
17issued on or after July 1, 2017 to a taxpayer who files returns 
18required by this Act on a monthly basis or renewed on or after 
19July 1, 2017 by a taxpayer who files returns required by this 
20Act on a monthly basis shall be valid after the expiration of 
21one year from the date of its issuance or last renewal. The 
22expiration date of a sub-certificate of registration shall be 
23that of the certificate of registration to which the 
24sub-certificate relates. Prior to July 1, 2017, a certificate 
25of registration shall automatically be renewed, subject to 
26revocation as provided by this Act, for an additional 5 years 
 
 
10300HB4951sam002- 561 -LRB103 38094 HLH 74177 a


1from the date of its expiration unless otherwise notified by 
2the Department as provided by this paragraph. On and after 
3July 1, 2017, a certificate of registration shall 
4automatically be renewed, subject to revocation as provided by 
5this Act, for an additional one year from the date of its 
6expiration unless otherwise notified by the Department as 
7provided by this paragraph. 
8 Where a taxpayer to whom a certificate of registration is 
9issued under this Act is in default to the State of Illinois 
10for delinquent returns or for moneys due under this Act or any 
11other State tax law or municipal or county ordinance 
12administered or enforced by the Department, the Department 
13shall, not less than 60 days before the expiration date of such 
14certificate of registration, give notice to the taxpayer to 
15whom the certificate was issued of the account period of the 
16delinquent returns, the amount of tax, penalty and interest 
17due and owing from the taxpayer, and that the certificate of 
18registration shall not be automatically renewed upon its 
19expiration date unless the taxpayer, on or before the date of 
20expiration, has filed and paid the delinquent returns or paid 
21the defaulted amount in full. A taxpayer to whom such a notice 
22is issued shall be deemed an applicant for renewal. The 
23Department shall promulgate regulations establishing 
24procedures for taxpayers who file returns on a monthly basis 
25but desire and qualify to change to a quarterly or yearly 
26filing basis and will no longer be subject to renewal under 
 
 
10300HB4951sam002- 562 -LRB103 38094 HLH 74177 a


1this Section, and for taxpayers who file returns on a yearly or 
2quarterly basis but who desire or are required to change to a 
3monthly filing basis and will be subject to renewal under this 
4Section.
5 The Department may in its discretion approve renewal by an 
6applicant who is in default if, at the time of application for 
7renewal, the applicant files all of the delinquent returns or 
8pays to the Department such percentage of the defaulted amount 
9as may be determined by the Department and agrees in writing to 
10waive all limitations upon the Department for collection of 
11the remaining defaulted amount to the Department over a period 
12not to exceed 5 years from the date of renewal of the 
13certificate; however, no renewal application submitted by an 
14applicant who is in default shall be approved if the 
15immediately preceding renewal by the applicant was conditioned 
16upon the installment payment agreement described in this 
17Section. The payment agreement herein provided for shall be in 
18addition to and not in lieu of the security that may be 
19required by this Section of a taxpayer who is no longer 
20considered a prior continuous compliance taxpayer. The 
21execution of the payment agreement as provided in this Act 
22shall not toll the accrual of interest at the statutory rate.
23 The Department may suspend a certificate of registration 
24if the Department finds that the person to whom the 
25certificate of registration has been issued knowingly sold 
26contraband cigarettes. 
 
 
10300HB4951sam002- 563 -LRB103 38094 HLH 74177 a


1 A certificate of registration issued under this Act more 
2than 5 years before January 1, 1990 (the effective date of 
3Public Act 86-383) shall expire and be subject to the renewal 
4provisions of this Section on the next anniversary of the date 
5of issuance of such certificate which occurs more than 6 
6months after January 1, 1990 (the effective date of Public Act 
786-383). A certificate of registration issued less than 5 
8years before January 1, 1990 (the effective date of Public Act 
986-383) shall expire and be subject to the renewal provisions 
10of this Section on the 5th anniversary of the issuance of the 
11certificate.
12 If the person so registered states that he operates other 
13places of business from which he engages in the business of 
14selling tangible personal property at retail in this State, 
15the Department shall furnish him with a sub-certificate of 
16registration for each such place of business, and the 
17applicant shall display the appropriate sub-certificate of 
18registration at each such place of business. All 
19sub-certificates of registration shall bear the same 
20registration number as that appearing upon the certificate of 
21registration to which such sub-certificates relate.
22 If the applicant will sell tangible personal property at 
23retail through vending machines, the Department shall furnish 
24him with a sub-certificate of registration for each such 
25vending machine, and the applicant shall display the 
26appropriate sub-certificate of registration on each such 
 
 
10300HB4951sam002- 564 -LRB103 38094 HLH 74177 a


1vending machine by attaching the sub-certificate of 
2registration to a conspicuous part of such vending machine. If 
3a person who is registered to sell tangible personal property 
4at retail through vending machines adds an additional vending 
5machine or additional vending machines to the number of 
6vending machines he or she uses in his or her business of 
7selling tangible personal property at retail, he or she shall 
8notify the Department, on a form prescribed by the Department, 
9to request an additional sub-certificate or additional 
10sub-certificates of registration, as applicable. With each 
11such request, the applicant shall report the number of 
12sub-certificates of registration he or she is requesting as 
13well as the total number of vending machines from which he or 
14she makes retail sales. 
15 Where the same person engages in 2 or more businesses of 
16selling tangible personal property at retail in this State, 
17which businesses are substantially different in character or 
18engaged in under different trade names or engaged in under 
19other substantially dissimilar circumstances (so that it is 
20more practicable, from an accounting, auditing or bookkeeping 
21standpoint, for such businesses to be separately registered), 
22the Department may require or permit such person (subject to 
23the same requirements concerning the furnishing of security as 
24those that are provided for hereinbefore in this Section as to 
25each application for a certificate of registration) to apply 
26for and obtain a separate certificate of registration for each 
 
 
10300HB4951sam002- 565 -LRB103 38094 HLH 74177 a


1such business or for any of such businesses, under a single 
2certificate of registration supplemented by related 
3sub-certificates of registration.
4 Any person who is registered under the Retailers' 
5Occupation Tax Act as of March 8, 1963, and who, during the 
63-year period immediately prior to March 8, 1963, or during a 
7continuous 3-year period part of which passed immediately 
8before and the remainder of which passes immediately after 
9March 8, 1963, has been so registered continuously and who is 
10determined by the Department not to have been either 
11delinquent or deficient in the payment of tax liability during 
12that period under this Act or under any other State tax law or 
13municipal or county tax ordinance or resolution under which 
14the certificate of registration that is issued to the 
15registrant under this Act will permit the registrant to engage 
16in business without registering separately under such other 
17law, ordinance or resolution, shall be considered to be a 
18Prior Continuous Compliance taxpayer. Also any taxpayer who 
19has, as verified by the Department, faithfully and 
20continuously complied with the condition of his bond or other 
21security under the provisions of this Act for a period of 3 
22consecutive years shall be considered to be a Prior Continuous 
23Compliance taxpayer.
24 Every Prior Continuous Compliance taxpayer shall be exempt 
25from all requirements under this Act concerning the furnishing 
26of a bond or other security as a condition precedent to his 
 
 
10300HB4951sam002- 566 -LRB103 38094 HLH 74177 a


1being authorized to engage in the business of selling tangible 
2personal property at retail in this State. This exemption 
3shall continue for each such taxpayer until such time as he may 
4be determined by the Department to be delinquent in the filing 
5of any returns, or is determined by the Department (either 
6through the Department's issuance of a final assessment which 
7has become final under the Act, or by the taxpayer's filing of 
8a return which admits tax that is not paid to be due) to be 
9delinquent or deficient in the paying of any tax under this Act 
10or under any other State tax law or municipal or county tax 
11ordinance or resolution under which the certificate of 
12registration that is issued to the registrant under this Act 
13will permit the registrant to engage in business without 
14registering separately under such other law, ordinance or 
15resolution, at which time that taxpayer shall become subject 
16to all the financial responsibility requirements of this Act 
17and, as a condition of being allowed to continue to engage in 
18the business of selling tangible personal property at retail, 
19may be required to post bond or other acceptable security with 
20the Department covering liability which such taxpayer may 
21thereafter incur. Any taxpayer who fails to pay an admitted or 
22established liability under this Act may also be required to 
23post bond or other acceptable security with this Department 
24guaranteeing the payment of such admitted or established 
25liability.
26 No certificate of registration shall be issued to any 
 
 
10300HB4951sam002- 567 -LRB103 38094 HLH 74177 a


1person who is in default to the State of Illinois for moneys 
2due under this Act or under any other State tax law or 
3municipal or county tax ordinance or resolution under which 
4the certificate of registration that is issued to the 
5applicant under this Act will permit the applicant to engage 
6in business without registering separately under such other 
7law, ordinance or resolution.
8 Any person aggrieved by any decision of the Department 
9under this Section may, within 20 days after notice of such 
10decision, protest and request a hearing, whereupon the 
11Department shall give notice to such person of the time and 
12place fixed for such hearing and shall hold a hearing in 
13conformity with the provisions of this Act and then issue its 
14final administrative decision in the matter to such person. In 
15the absence of such a protest within 20 days, the Department's 
16decision shall become final without any further determination 
17being made or notice given.
18 With respect to security other than bonds (upon which the 
19Department may sue in the event of a forfeiture), if the 
20taxpayer fails to pay, when due, any amount whose payment such 
21security guarantees, the Department shall, after such 
22liability is admitted by the taxpayer or established by the 
23Department through the issuance of a final assessment that has 
24become final under the law, convert the security which that 
25taxpayer has furnished into money for the State, after first 
26giving the taxpayer at least 10 days' written notice, by 
 
 
10300HB4951sam002- 568 -LRB103 38094 HLH 74177 a


1registered or certified mail, to pay the liability or forfeit 
2such security to the Department. If the security consists of 
3stocks or bonds or other securities which are listed on a 
4public exchange, the Department shall sell such securities 
5through such public exchange. If the security consists of an 
6irrevocable bank letter of credit, the Department shall 
7convert the security in the manner provided for in the Uniform 
8Commercial Code. If the security consists of a bank 
9certificate of deposit, the Department shall convert the 
10security into money by demanding and collecting the amount of 
11such bank certificate of deposit from the bank which issued 
12such certificate. If the security consists of a type of stocks 
13or other securities which are not listed on a public exchange, 
14the Department shall sell such security to the highest and 
15best bidder after giving at least 10 days' notice of the date, 
16time and place of the intended sale by publication in the 
17"State Official Newspaper". If the Department realizes more 
18than the amount of such liability from the security, plus the 
19expenses incurred by the Department in converting the security 
20into money, the Department shall pay such excess to the 
21taxpayer who furnished such security, and the balance shall be 
22paid into the State Treasury.
23 The Department shall discharge any surety and shall 
24release and return any security deposited, assigned, pledged 
25or otherwise provided to it by a taxpayer under this Section 
26within 30 days after:
 
 
10300HB4951sam002- 569 -LRB103 38094 HLH 74177 a


1  (1) such taxpayer becomes a Prior Continuous 
2 Compliance taxpayer; or
3  (2) such taxpayer has ceased to collect receipts on 
4 which he is required to remit tax to the Department, has 
5 filed a final tax return, and has paid to the Department an 
6 amount sufficient to discharge his remaining tax 
7 liability, as determined by the Department, under this Act 
8 and under every other State tax law or municipal or county 
9 tax ordinance or resolution under which the certificate of 
10 registration issued under this Act permits the registrant 
11 to engage in business without registering separately under 
12 such other law, ordinance or resolution. The Department 
13 shall make a final determination of the taxpayer's 
14 outstanding tax liability as expeditiously as possible 
15 after his final tax return has been filed; if the 
16 Department cannot make such final determination within 45 
17 days after receiving the final tax return, within such 
18 period it shall so notify the taxpayer, stating its 
19 reasons therefor.
20(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)

21 (35 ILCS 120/2c) (from Ch. 120, par. 441c)
22 Sec. 2c. Resales of tangible personal property. If the 
23purchaser is not registered with the Department as a taxpayer, 
24but claims to be a reseller of the tangible personal property 
25in such a way that such resales are not taxable under this Act 
 
 
10300HB4951sam002- 570 -LRB103 38094 HLH 74177 a


1or under some other tax law which the Department may 
2administer, such purchaser (except in the case of an 
3out-of-State purchaser who will always resell and deliver the 
4property to his customers outside Illinois) shall apply to the 
5Department for a resale number. Such applicant shall state 
6facts which will show the Department why such applicant is not 
7liable for tax under this Act or under some other tax law which 
8the Department may administer on any of his resales and shall 
9furnish such additional information as the Department may 
10reasonably require.
11 Upon approval of the application, the Department shall 
12assign a resale number to the applicant and shall certify such 
13number to him. The Department may cancel any such number which 
14is obtained through misrepresentation, or which is used to 
15make a purchase tax-free when the purchase in fact is not a 
16purchase for resale, or which no longer applies because of the 
17purchaser's having discontinued the making of tax exempt 
18resales of the property.
19 The Department may restrict the use of the number to one 
20year at a time or to some other definite period if the 
21Department finds it impracticable or otherwise inadvisable to 
22issue such numbers for indefinite periods.
23 Except as provided hereinabove in this Section, a sale 
24shall be made tax-free on the ground of being a sale for resale 
25if the purchaser has an active registration number or resale 
26number from the Department and furnishes that number to the 
 
 
10300HB4951sam002- 571 -LRB103 38094 HLH 74177 a


1seller in connection with certifying to the seller that any 
2sale to such purchaser is nontaxable because of being a sale 
3for resale. On and after January 1, 2025, a sale to a lessor of 
4tangible personal property who is subject to the tax on leases 
5implemented by this amendatory Act of the 103rd General 
6Assembly, for the purpose of leasing that property, shall be 
7made tax-free on the ground of being a sale for resale, 
8provided the other provisions of this paragraph are met. 
9 Failure to present an active registration number or resale 
10number and a certification to the seller that a sale is for 
11resale creates a presumption that a sale is not for resale. 
12This presumption may be rebutted by other evidence that all of 
13the seller's sales are sale for resale, or that a particular 
14sale is a sale for resale.
15(Source: P.A. 83-1463.)

16 (35 ILCS 120/3) (from Ch. 120, par. 442)
17 Sec. 3. Except as provided in this Section, on or before 
18the twentieth day of each calendar month, every person engaged 
19in the business of selling, which, on and after January 1, 
202025, includes leasing, tangible personal property at retail 
21in this State during the preceding calendar month shall file a 
22return with the Department, stating:
23  1. The name of the seller;
24  2. His residence address and the address of his 
25 principal place of business and the address of the 
 
 
10300HB4951sam002- 572 -LRB103 38094 HLH 74177 a


1 principal place of business (if that is a different 
2 address) from which he engages in the business of selling 
3 tangible personal property at retail in this State;
4  3. Total amount of receipts received by him during the 
5 preceding calendar month or quarter, as the case may be, 
6 from sales of tangible personal property, and from 
7 services furnished, by him during such preceding calendar 
8 month or quarter;
9  4. Total amount received by him during the preceding 
10 calendar month or quarter on charge and time sales of 
11 tangible personal property, and from services furnished, 
12 by him prior to the month or quarter for which the return 
13 is filed;
14  5. Deductions allowed by law;
15  6. Gross receipts which were received by him during 
16 the preceding calendar month or quarter and upon the basis 
17 of which the tax is imposed, including gross receipts on 
18 food for human consumption that is to be consumed off the 
19 premises where it is sold (other than alcoholic beverages, 
20 food consisting of or infused with adult use cannabis, 
21 soft drinks, and food that has been prepared for immediate 
22 consumption) which were received during the preceding 
23 calendar month or quarter and upon which tax would have 
24 been due but for the 0% rate imposed under Public Act 
25 102-700;
26  7. The amount of credit provided in Section 2d of this 
 
 
10300HB4951sam002- 573 -LRB103 38094 HLH 74177 a


1 Act;
2  8. The amount of tax due, including the amount of tax 
3 that would have been due on food for human consumption 
4 that is to be consumed off the premises where it is sold 
5 (other than alcoholic beverages, food consisting of or 
6 infused with adult use cannabis, soft drinks, and food 
7 that has been prepared for immediate consumption) but for 
8 the 0% rate imposed under Public Act 102-700;
9  9. The signature of the taxpayer; and
10  10. Such other reasonable information as the 
11 Department may require.
12 In the case of leases, except as otherwise provided in 
13this Act, the lessor must remit for each tax return period only 
14the tax applicable to that part of the selling price actually 
15received during such tax return period. 
16 On and after January 1, 2018, except for returns required 
17to be filed prior to January 1, 2023 for motor vehicles, 
18watercraft, aircraft, and trailers that are required to be 
19registered with an agency of this State, with respect to 
20retailers whose annual gross receipts average $20,000 or more, 
21all returns required to be filed pursuant to this Act shall be 
22filed electronically. On and after January 1, 2023, with 
23respect to retailers whose annual gross receipts average 
24$20,000 or more, all returns required to be filed pursuant to 
25this Act, including, but not limited to, returns for motor 
26vehicles, watercraft, aircraft, and trailers that are required 
 
 
10300HB4951sam002- 574 -LRB103 38094 HLH 74177 a


1to be registered with an agency of this State, shall be filed 
2electronically. Retailers who demonstrate that they do not 
3have access to the Internet or demonstrate hardship in filing 
4electronically may petition the Department to waive the 
5electronic filing requirement. 
6 If a taxpayer fails to sign a return within 30 days after 
7the proper notice and demand for signature by the Department, 
8the return shall be considered valid and any amount shown to be 
9due on the return shall be deemed assessed.
10 Each return shall be accompanied by the statement of 
11prepaid tax issued pursuant to Section 2e for which credit is 
12claimed.
13 Prior to October 1, 2003, and on and after September 1, 
142004, a retailer may accept a Manufacturer's Purchase Credit 
15certification from a purchaser in satisfaction of Use Tax as 
16provided in Section 3-85 of the Use Tax Act if the purchaser 
17provides the appropriate documentation as required by Section 
183-85 of the Use Tax Act. A Manufacturer's Purchase Credit 
19certification, accepted by a retailer prior to October 1, 2003 
20and on and after September 1, 2004 as provided in Section 3-85 
21of the Use Tax Act, may be used by that retailer to satisfy 
22Retailers' Occupation Tax liability in the amount claimed in 
23the certification, not to exceed 6.25% of the receipts subject 
24to tax from a qualifying purchase. A Manufacturer's Purchase 
25Credit reported on any original or amended return filed under 
26this Act after October 20, 2003 for reporting periods prior to 
 
 
10300HB4951sam002- 575 -LRB103 38094 HLH 74177 a


1September 1, 2004 shall be disallowed. Manufacturer's Purchase 
2Credit reported on annual returns due on or after January 1, 
32005 will be disallowed for periods prior to September 1, 
42004. No Manufacturer's Purchase Credit may be used after 
5September 30, 2003 through August 31, 2004 to satisfy any tax 
6liability imposed under this Act, including any audit 
7liability.
8 Beginning on July 1, 2023 and through December 31, 2032, a 
9retailer may accept a Sustainable Aviation Fuel Purchase 
10Credit certification from an air common carrier-purchaser in 
11satisfaction of Use Tax on aviation fuel as provided in 
12Section 3-87 of the Use Tax Act if the purchaser provides the 
13appropriate documentation as required by Section 3-87 of the 
14Use Tax Act. A Sustainable Aviation Fuel Purchase Credit 
15certification accepted by a retailer in accordance with this 
16paragraph may be used by that retailer to satisfy Retailers' 
17Occupation Tax liability (but not in satisfaction of penalty 
18or interest) in the amount claimed in the certification, not 
19to exceed 6.25% of the receipts subject to tax from a sale of 
20aviation fuel. In addition, for a sale of aviation fuel to 
21qualify to earn the Sustainable Aviation Fuel Purchase Credit, 
22retailers must retain in their books and records a 
23certification from the producer of the aviation fuel that the 
24aviation fuel sold by the retailer and for which a sustainable 
25aviation fuel purchase credit was earned meets the definition 
26of sustainable aviation fuel under Section 3-87 of the Use Tax 
 
 
10300HB4951sam002- 576 -LRB103 38094 HLH 74177 a


1Act. The documentation must include detail sufficient for the 
2Department to determine the number of gallons of sustainable 
3aviation fuel sold. 
4 The Department may require returns to be filed on a 
5quarterly basis. If so required, a return for each calendar 
6quarter shall be filed on or before the twentieth day of the 
7calendar month following the end of such calendar quarter. The 
8taxpayer shall also file a return with the Department for each 
9of the first 2 two months of each calendar quarter, on or 
10before the twentieth day of the following calendar month, 
11stating:
12  1. The name of the seller;
13  2. The address of the principal place of business from 
14 which he engages in the business of selling tangible 
15 personal property at retail in this State;
16  3. The total amount of taxable receipts received by 
17 him during the preceding calendar month from sales of 
18 tangible personal property by him during such preceding 
19 calendar month, including receipts from charge and time 
20 sales, but less all deductions allowed by law;
21  4. The amount of credit provided in Section 2d of this 
22 Act;
23  5. The amount of tax due; and
24  6. Such other reasonable information as the Department 
25 may require.
26 Every person engaged in the business of selling aviation 
 
 
10300HB4951sam002- 577 -LRB103 38094 HLH 74177 a


1fuel at retail in this State during the preceding calendar 
2month shall, instead of reporting and paying tax as otherwise 
3required by this Section, report and pay such tax on a separate 
4aviation fuel tax return. The requirements related to the 
5return shall be as otherwise provided in this Section. 
6Notwithstanding any other provisions of this Act to the 
7contrary, retailers selling aviation fuel shall file all 
8aviation fuel tax returns and shall make all aviation fuel tax 
9payments by electronic means in the manner and form required 
10by the Department. For purposes of this Section, "aviation 
11fuel" means jet fuel and aviation gasoline. 
12 Beginning on October 1, 2003, any person who is not a 
13licensed distributor, importing distributor, or manufacturer, 
14as defined in the Liquor Control Act of 1934, but is engaged in 
15the business of selling, at retail, alcoholic liquor shall 
16file a statement with the Department of Revenue, in a format 
17and at a time prescribed by the Department, showing the total 
18amount paid for alcoholic liquor purchased during the 
19preceding month and such other information as is reasonably 
20required by the Department. The Department may adopt rules to 
21require that this statement be filed in an electronic or 
22telephonic format. Such rules may provide for exceptions from 
23the filing requirements of this paragraph. For the purposes of 
24this paragraph, the term "alcoholic liquor" shall have the 
25meaning prescribed in the Liquor Control Act of 1934.
26 Beginning on October 1, 2003, every distributor, importing 
 
 
10300HB4951sam002- 578 -LRB103 38094 HLH 74177 a


1distributor, and manufacturer of alcoholic liquor as defined 
2in the Liquor Control Act of 1934, shall file a statement with 
3the Department of Revenue, no later than the 10th day of the 
4month for the preceding month during which transactions 
5occurred, by electronic means, showing the total amount of 
6gross receipts from the sale of alcoholic liquor sold or 
7distributed during the preceding month to purchasers; 
8identifying the purchaser to whom it was sold or distributed; 
9the purchaser's tax registration number; and such other 
10information reasonably required by the Department. A 
11distributor, importing distributor, or manufacturer of 
12alcoholic liquor must personally deliver, mail, or provide by 
13electronic means to each retailer listed on the monthly 
14statement a report containing a cumulative total of that 
15distributor's, importing distributor's, or manufacturer's 
16total sales of alcoholic liquor to that retailer no later than 
17the 10th day of the month for the preceding month during which 
18the transaction occurred. The distributor, importing 
19distributor, or manufacturer shall notify the retailer as to 
20the method by which the distributor, importing distributor, or 
21manufacturer will provide the sales information. If the 
22retailer is unable to receive the sales information by 
23electronic means, the distributor, importing distributor, or 
24manufacturer shall furnish the sales information by personal 
25delivery or by mail. For purposes of this paragraph, the term 
26"electronic means" includes, but is not limited to, the use of 
 
 
10300HB4951sam002- 579 -LRB103 38094 HLH 74177 a


1a secure Internet website, e-mail, or facsimile.
2 If a total amount of less than $1 is payable, refundable or 
3creditable, such amount shall be disregarded if it is less 
4than 50 cents and shall be increased to $1 if it is 50 cents or 
5more.
6 Notwithstanding any other provision of this Act to the 
7contrary, retailers subject to tax on cannabis shall file all 
8cannabis tax returns and shall make all cannabis tax payments 
9by electronic means in the manner and form required by the 
10Department.
11 Beginning October 1, 1993, a taxpayer who has an average 
12monthly tax liability of $150,000 or more shall make all 
13payments required by rules of the Department by electronic 
14funds transfer. Beginning October 1, 1994, a taxpayer who has 
15an average monthly tax liability of $100,000 or more shall 
16make all payments required by rules of the Department by 
17electronic funds transfer. Beginning October 1, 1995, a 
18taxpayer who has an average monthly tax liability of $50,000 
19or more shall make all payments required by rules of the 
20Department by electronic funds transfer. Beginning October 1, 
212000, a taxpayer who has an annual tax liability of $200,000 or 
22more shall make all payments required by rules of the 
23Department by electronic funds transfer. The term "annual tax 
24liability" shall be the sum of the taxpayer's liabilities 
25under this Act, and under all other State and local occupation 
26and use tax laws administered by the Department, for the 
 
 
10300HB4951sam002- 580 -LRB103 38094 HLH 74177 a


1immediately preceding calendar year. The term "average monthly 
2tax liability" shall be the sum of the taxpayer's liabilities 
3under this Act, and under all other State and local occupation 
4and use tax laws administered by the Department, for the 
5immediately preceding calendar year divided by 12. Beginning 
6on October 1, 2002, a taxpayer who has a tax liability in the 
7amount set forth in subsection (b) of Section 2505-210 of the 
8Department of Revenue Law shall make all payments required by 
9rules of the Department by electronic funds transfer.
10 Before August 1 of each year beginning in 1993, the 
11Department shall notify all taxpayers required to make 
12payments by electronic funds transfer. All taxpayers required 
13to make payments by electronic funds transfer shall make those 
14payments for a minimum of one year beginning on October 1.
15 Any taxpayer not required to make payments by electronic 
16funds transfer may make payments by electronic funds transfer 
17with the permission of the Department.
18 All taxpayers required to make payment by electronic funds 
19transfer and any taxpayers authorized to voluntarily make 
20payments by electronic funds transfer shall make those 
21payments in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to 
23effectuate a program of electronic funds transfer and the 
24requirements of this Section.
25 Any amount which is required to be shown or reported on any 
26return or other document under this Act shall, if such amount 
 
 
10300HB4951sam002- 581 -LRB103 38094 HLH 74177 a


1is not a whole-dollar amount, be increased to the nearest 
2whole-dollar amount in any case where the fractional part of a 
3dollar is 50 cents or more, and decreased to the nearest 
4whole-dollar amount where the fractional part of a dollar is 
5less than 50 cents.
6 If the retailer is otherwise required to file a monthly 
7return and if the retailer's average monthly tax liability to 
8the Department does not exceed $200, the Department may 
9authorize his returns to be filed on a quarter annual basis, 
10with the return for January, February, and March of a given 
11year being due by April 20 of such year; with the return for 
12April, May, and June of a given year being due by July 20 of 
13such year; with the return for July, August, and September of a 
14given year being due by October 20 of such year, and with the 
15return for October, November, and December of a given year 
16being due by January 20 of the following year.
17 If the retailer is otherwise required to file a monthly or 
18quarterly return and if the retailer's average monthly tax 
19liability with the Department does not exceed $50, the 
20Department may authorize his returns to be filed on an annual 
21basis, with the return for a given year being due by January 20 
22of the following year.
23 Such quarter annual and annual returns, as to form and 
24substance, shall be subject to the same requirements as 
25monthly returns.
26 Notwithstanding any other provision in this Act concerning 
 
 
10300HB4951sam002- 582 -LRB103 38094 HLH 74177 a


1the time within which a retailer may file his return, in the 
2case of any retailer who ceases to engage in a kind of business 
3which makes him responsible for filing returns under this Act, 
4such retailer shall file a final return under this Act with the 
5Department not more than one month after discontinuing such 
6business.
7 Where the same person has more than one business 
8registered with the Department under separate registrations 
9under this Act, such person may not file each return that is 
10due as a single return covering all such registered 
11businesses, but shall file separate returns for each such 
12registered business.
13 In addition, with respect to motor vehicles, watercraft, 
14aircraft, and trailers that are required to be registered with 
15an agency of this State, except as otherwise provided in this 
16Section, every retailer selling this kind of tangible personal 
17property shall file, with the Department, upon a form to be 
18prescribed and supplied by the Department, a separate return 
19for each such item of tangible personal property which the 
20retailer sells, except that if, in the same transaction, (i) a 
21retailer of aircraft, watercraft, motor vehicles, or trailers 
22transfers more than one aircraft, watercraft, motor vehicle, 
23or trailer to another aircraft, watercraft, motor vehicle 
24retailer, or trailer retailer for the purpose of resale or 
25(ii) a retailer of aircraft, watercraft, motor vehicles, or 
26trailers transfers more than one aircraft, watercraft, motor 
 
 
10300HB4951sam002- 583 -LRB103 38094 HLH 74177 a


1vehicle, or trailer to a purchaser for use as a qualifying 
2rolling stock as provided in Section 2-5 of this Act, then that 
3seller may report the transfer of all aircraft, watercraft, 
4motor vehicles, or trailers involved in that transaction to 
5the Department on the same uniform invoice-transaction 
6reporting return form. For purposes of this Section, 
7"watercraft" means a Class 2, Class 3, or Class 4 watercraft as 
8defined in Section 3-2 of the Boat Registration and Safety 
9Act, a personal watercraft, or any boat equipped with an 
10inboard motor.
11 In addition, with respect to motor vehicles, watercraft, 
12aircraft, and trailers that are required to be registered with 
13an agency of this State, every person who is engaged in the 
14business of leasing or renting such items and who, in 
15connection with such business, sells any such item to a 
16retailer for the purpose of resale is, notwithstanding any 
17other provision of this Section to the contrary, authorized to 
18meet the return-filing requirement of this Act by reporting 
19the transfer of all the aircraft, watercraft, motor vehicles, 
20or trailers transferred for resale during a month to the 
21Department on the same uniform invoice-transaction reporting 
22return form on or before the 20th of the month following the 
23month in which the transfer takes place. Notwithstanding any 
24other provision of this Act to the contrary, all returns filed 
25under this paragraph must be filed by electronic means in the 
26manner and form as required by the Department. 
 
 
10300HB4951sam002- 584 -LRB103 38094 HLH 74177 a


1 Any retailer who sells only motor vehicles, watercraft, 
2aircraft, or trailers that are required to be registered with 
3an agency of this State, so that all retailers' occupation tax 
4liability is required to be reported, and is reported, on such 
5transaction reporting returns and who is not otherwise 
6required to file monthly or quarterly returns, need not file 
7monthly or quarterly returns. However, those retailers shall 
8be required to file returns on an annual basis.
9 The transaction reporting return, in the case of motor 
10vehicles or trailers that are required to be registered with 
11an agency of this State, shall be the same document as the 
12Uniform Invoice referred to in Section 5-402 of the Illinois 
13Vehicle Code and must show the name and address of the seller; 
14the name and address of the purchaser; the amount of the 
15selling price including the amount allowed by the retailer for 
16traded-in property, if any; the amount allowed by the retailer 
17for the traded-in tangible personal property, if any, to the 
18extent to which Section 1 of this Act allows an exemption for 
19the value of traded-in property; the balance payable after 
20deducting such trade-in allowance from the total selling 
21price; the amount of tax due from the retailer with respect to 
22such transaction; the amount of tax collected from the 
23purchaser by the retailer on such transaction (or satisfactory 
24evidence that such tax is not due in that particular instance, 
25if that is claimed to be the fact); the place and date of the 
26sale; a sufficient identification of the property sold; such 
 
 
10300HB4951sam002- 585 -LRB103 38094 HLH 74177 a


1other information as is required in Section 5-402 of the 
2Illinois Vehicle Code, and such other information as the 
3Department may reasonably require.
4 The transaction reporting return in the case of watercraft 
5or aircraft must show the name and address of the seller; the 
6name and address of the purchaser; the amount of the selling 
7price including the amount allowed by the retailer for 
8traded-in property, if any; the amount allowed by the retailer 
9for the traded-in tangible personal property, if any, to the 
10extent to which Section 1 of this Act allows an exemption for 
11the value of traded-in property; the balance payable after 
12deducting such trade-in allowance from the total selling 
13price; the amount of tax due from the retailer with respect to 
14such transaction; the amount of tax collected from the 
15purchaser by the retailer on such transaction (or satisfactory 
16evidence that such tax is not due in that particular instance, 
17if that is claimed to be the fact); the place and date of the 
18sale, a sufficient identification of the property sold, and 
19such other information as the Department may reasonably 
20require.
21 Such transaction reporting return shall be filed not later 
22than 20 days after the day of delivery of the item that is 
23being sold, but may be filed by the retailer at any time sooner 
24than that if he chooses to do so. The transaction reporting 
25return and tax remittance or proof of exemption from the 
26Illinois use tax may be transmitted to the Department by way of 
 
 
10300HB4951sam002- 586 -LRB103 38094 HLH 74177 a


1the State agency with which, or State officer with whom the 
2tangible personal property must be titled or registered (if 
3titling or registration is required) if the Department and 
4such agency or State officer determine that this procedure 
5will expedite the processing of applications for title or 
6registration.
7 With each such transaction reporting return, the retailer 
8shall remit the proper amount of tax due (or shall submit 
9satisfactory evidence that the sale is not taxable if that is 
10the case), to the Department or its agents, whereupon the 
11Department shall issue, in the purchaser's name, a use tax 
12receipt (or a certificate of exemption if the Department is 
13satisfied that the particular sale is tax exempt) which such 
14purchaser may submit to the agency with which, or State 
15officer with whom, he must title or register the tangible 
16personal property that is involved (if titling or registration 
17is required) in support of such purchaser's application for an 
18Illinois certificate or other evidence of title or 
19registration to such tangible personal property.
20 No retailer's failure or refusal to remit tax under this 
21Act precludes a user, who has paid the proper tax to the 
22retailer, from obtaining his certificate of title or other 
23evidence of title or registration (if titling or registration 
24is required) upon satisfying the Department that such user has 
25paid the proper tax (if tax is due) to the retailer. The 
26Department shall adopt appropriate rules to carry out the 
 
 
10300HB4951sam002- 587 -LRB103 38094 HLH 74177 a


1mandate of this paragraph.
2 If the user who would otherwise pay tax to the retailer 
3wants the transaction reporting return filed and the payment 
4of the tax or proof of exemption made to the Department before 
5the retailer is willing to take these actions and such user has 
6not paid the tax to the retailer, such user may certify to the 
7fact of such delay by the retailer and may (upon the Department 
8being satisfied of the truth of such certification) transmit 
9the information required by the transaction reporting return 
10and the remittance for tax or proof of exemption directly to 
11the Department and obtain his tax receipt or exemption 
12determination, in which event the transaction reporting return 
13and tax remittance (if a tax payment was required) shall be 
14credited by the Department to the proper retailer's account 
15with the Department, but without the 2.1% or 1.75% discount 
16provided for in this Section being allowed. When the user pays 
17the tax directly to the Department, he shall pay the tax in the 
18same amount and in the same form in which it would be remitted 
19if the tax had been remitted to the Department by the retailer.
20 Refunds made by the seller during the preceding return 
21period to purchasers, on account of tangible personal property 
22returned to the seller, shall be allowed as a deduction under 
23subdivision 5 of his monthly or quarterly return, as the case 
24may be, in case the seller had theretofore included the 
25receipts from the sale of such tangible personal property in a 
26return filed by him and had paid the tax imposed by this Act 
 
 
10300HB4951sam002- 588 -LRB103 38094 HLH 74177 a


1with respect to such receipts.
2 Where the seller is a corporation, the return filed on 
3behalf of such corporation shall be signed by the president, 
4vice-president, secretary, or treasurer or by the properly 
5accredited agent of such corporation.
6 Where the seller is a limited liability company, the 
7return filed on behalf of the limited liability company shall 
8be signed by a manager, member, or properly accredited agent 
9of the limited liability company.
10 Except as provided in this Section, the retailer filing 
11the return under this Section shall, at the time of filing such 
12return, pay to the Department the amount of tax imposed by this 
13Act less a discount of 2.1% prior to January 1, 1990 and 1.75% 
14on and after January 1, 1990, or $5 per calendar year, 
15whichever is greater, which is allowed to reimburse the 
16retailer for the expenses incurred in keeping records, 
17preparing and filing returns, remitting the tax and supplying 
18data to the Department on request. On and after January 1, 
192021, a certified service provider, as defined in the Leveling 
20the Playing Field for Illinois Retail Act, filing the return 
21under this Section on behalf of a remote retailer shall, at the 
22time of such return, pay to the Department the amount of tax 
23imposed by this Act less a discount of 1.75%. A remote retailer 
24using a certified service provider to file a return on its 
25behalf, as provided in the Leveling the Playing Field for 
26Illinois Retail Act, is not eligible for the discount. When 
 
 
10300HB4951sam002- 589 -LRB103 38094 HLH 74177 a


1determining the discount allowed under this Section, retailers 
2shall include the amount of tax that would have been due at the 
31% rate but for the 0% rate imposed under Public Act 102-700. 
4When determining the discount allowed under this Section, 
5retailers shall include the amount of tax that would have been 
6due at the 6.25% rate but for the 1.25% rate imposed on sales 
7tax holiday items under Public Act 102-700. The discount under 
8this Section is not allowed for the 1.25% portion of taxes paid 
9on aviation fuel that is subject to the revenue use 
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any 
11prepayment made pursuant to Section 2d of this Act shall be 
12included in the amount on which such 2.1% or 1.75% discount is 
13computed. In the case of retailers who report and pay the tax 
14on a transaction by transaction basis, as provided in this 
15Section, such discount shall be taken with each such tax 
16remittance instead of when such retailer files his periodic 
17return. The discount allowed under this Section is allowed 
18only for returns that are filed in the manner required by this 
19Act. The Department may disallow the discount for retailers 
20whose certificate of registration is revoked at the time the 
21return is filed, but only if the Department's decision to 
22revoke the certificate of registration has become final. 
23 Before October 1, 2000, if the taxpayer's average monthly 
24tax liability to the Department under this Act, the Use Tax 
25Act, the Service Occupation Tax Act, and the Service Use Tax 
26Act, excluding any liability for prepaid sales tax to be 
 
 
10300HB4951sam002- 590 -LRB103 38094 HLH 74177 a


1remitted in accordance with Section 2d of this Act, was 
2$10,000 or more during the preceding 4 complete calendar 
3quarters, he shall file a return with the Department each 
4month by the 20th day of the month next following the month 
5during which such tax liability is incurred and shall make 
6payments to the Department on or before the 7th, 15th, 22nd and 
7last day of the month during which such liability is incurred. 
8On and after October 1, 2000, if the taxpayer's average 
9monthly tax liability to the Department under this Act, the 
10Use Tax Act, the Service Occupation Tax Act, and the Service 
11Use Tax Act, excluding any liability for prepaid sales tax to 
12be remitted in accordance with Section 2d of this Act, was 
13$20,000 or more during the preceding 4 complete calendar 
14quarters, he shall file a return with the Department each 
15month by the 20th day of the month next following the month 
16during which such tax liability is incurred and shall make 
17payment to the Department on or before the 7th, 15th, 22nd and 
18last day of the month during which such liability is incurred. 
19If the month during which such tax liability is incurred began 
20prior to January 1, 1985, each payment shall be in an amount 
21equal to 1/4 of the taxpayer's actual liability for the month 
22or an amount set by the Department not to exceed 1/4 of the 
23average monthly liability of the taxpayer to the Department 
24for the preceding 4 complete calendar quarters (excluding the 
25month of highest liability and the month of lowest liability 
26in such 4 quarter period). If the month during which such tax 
 
 
10300HB4951sam002- 591 -LRB103 38094 HLH 74177 a


1liability is incurred begins on or after January 1, 1985 and 
2prior to January 1, 1987, each payment shall be in an amount 
3equal to 22.5% of the taxpayer's actual liability for the 
4month or 27.5% of the taxpayer's liability for the same 
5calendar month of the preceding year. If the month during 
6which such tax liability is incurred begins on or after 
7January 1, 1987 and prior to January 1, 1988, each payment 
8shall be in an amount equal to 22.5% of the taxpayer's actual 
9liability for the month or 26.25% of the taxpayer's liability 
10for the same calendar month of the preceding year. If the month 
11during which such tax liability is incurred begins on or after 
12January 1, 1988, and prior to January 1, 1989, or begins on or 
13after January 1, 1996, each payment shall be in an amount equal 
14to 22.5% of the taxpayer's actual liability for the month or 
1525% of the taxpayer's liability for the same calendar month of 
16the preceding year. If the month during which such tax 
17liability is incurred begins on or after January 1, 1989, and 
18prior to January 1, 1996, each payment shall be in an amount 
19equal to 22.5% of the taxpayer's actual liability for the 
20month or 25% of the taxpayer's liability for the same calendar 
21month of the preceding year or 100% of the taxpayer's actual 
22liability for the quarter monthly reporting period. The amount 
23of such quarter monthly payments shall be credited against the 
24final tax liability of the taxpayer's return for that month. 
25Before October 1, 2000, once applicable, the requirement of 
26the making of quarter monthly payments to the Department by 
 
 
10300HB4951sam002- 592 -LRB103 38094 HLH 74177 a


1taxpayers having an average monthly tax liability of $10,000 
2or more as determined in the manner provided above shall 
3continue until such taxpayer's average monthly liability to 
4the Department during the preceding 4 complete calendar 
5quarters (excluding the month of highest liability and the 
6month of lowest liability) is less than $9,000, or until such 
7taxpayer's average monthly liability to the Department as 
8computed for each calendar quarter of the 4 preceding complete 
9calendar quarter period is less than $10,000. However, if a 
10taxpayer can show the Department that a substantial change in 
11the taxpayer's business has occurred which causes the taxpayer 
12to anticipate that his average monthly tax liability for the 
13reasonably foreseeable future will fall below the $10,000 
14threshold stated above, then such taxpayer may petition the 
15Department for a change in such taxpayer's reporting status. 
16On and after October 1, 2000, once applicable, the requirement 
17of the making of quarter monthly payments to the Department by 
18taxpayers having an average monthly tax liability of $20,000 
19or more as determined in the manner provided above shall 
20continue until such taxpayer's average monthly liability to 
21the Department during the preceding 4 complete calendar 
22quarters (excluding the month of highest liability and the 
23month of lowest liability) is less than $19,000 or until such 
24taxpayer's average monthly liability to the Department as 
25computed for each calendar quarter of the 4 preceding complete 
26calendar quarter period is less than $20,000. However, if a 
 
 
10300HB4951sam002- 593 -LRB103 38094 HLH 74177 a


1taxpayer can show the Department that a substantial change in 
2the taxpayer's business has occurred which causes the taxpayer 
3to anticipate that his average monthly tax liability for the 
4reasonably foreseeable future will fall below the $20,000 
5threshold stated above, then such taxpayer may petition the 
6Department for a change in such taxpayer's reporting status. 
7The Department shall change such taxpayer's reporting status 
8unless it finds that such change is seasonal in nature and not 
9likely to be long term. Quarter monthly payment status shall 
10be determined under this paragraph as if the rate reduction to 
110% in Public Act 102-700 on food for human consumption that is 
12to be consumed off the premises where it is sold (other than 
13alcoholic beverages, food consisting of or infused with adult 
14use cannabis, soft drinks, and food that has been prepared for 
15immediate consumption) had not occurred. For quarter monthly 
16payments due under this paragraph on or after July 1, 2023 and 
17through June 30, 2024, "25% of the taxpayer's liability for 
18the same calendar month of the preceding year" shall be 
19determined as if the rate reduction to 0% in Public Act 102-700 
20had not occurred. Quarter monthly payment status shall be 
21determined under this paragraph as if the rate reduction to 
221.25% in Public Act 102-700 on sales tax holiday items had not 
23occurred. For quarter monthly payments due on or after July 1, 
242023 and through June 30, 2024, "25% of the taxpayer's 
25liability for the same calendar month of the preceding year" 
26shall be determined as if the rate reduction to 1.25% in Public 
 
 
10300HB4951sam002- 594 -LRB103 38094 HLH 74177 a


1Act 102-700 on sales tax holiday items had not occurred. If any 
2such quarter monthly payment is not paid at the time or in the 
3amount required by this Section, then the taxpayer shall be 
4liable for penalties and interest on the difference between 
5the minimum amount due as a payment and the amount of such 
6quarter monthly payment actually and timely paid, except 
7insofar as the taxpayer has previously made payments for that 
8month to the Department in excess of the minimum payments 
9previously due as provided in this Section. The Department 
10shall make reasonable rules and regulations to govern the 
11quarter monthly payment amount and quarter monthly payment 
12dates for taxpayers who file on other than a calendar monthly 
13basis.
14 The provisions of this paragraph apply before October 1, 
152001. Without regard to whether a taxpayer is required to make 
16quarter monthly payments as specified above, any taxpayer who 
17is required by Section 2d of this Act to collect and remit 
18prepaid taxes and has collected prepaid taxes which average in 
19excess of $25,000 per month during the preceding 2 complete 
20calendar quarters, shall file a return with the Department as 
21required by Section 2f and shall make payments to the 
22Department on or before the 7th, 15th, 22nd and last day of the 
23month during which such liability is incurred. If the month 
24during which such tax liability is incurred began prior to 
25September 1, 1985 (the effective date of Public Act 84-221), 
26each payment shall be in an amount not less than 22.5% of the 
 
 
10300HB4951sam002- 595 -LRB103 38094 HLH 74177 a


1taxpayer's actual liability under Section 2d. If the month 
2during which such tax liability is incurred begins on or after 
3January 1, 1986, each payment shall be in an amount equal to 
422.5% of the taxpayer's actual liability for the month or 
527.5% of the taxpayer's liability for the same calendar month 
6of the preceding calendar year. If the month during which such 
7tax liability is incurred begins on or after January 1, 1987, 
8each payment shall be in an amount equal to 22.5% of the 
9taxpayer's actual liability for the month or 26.25% of the 
10taxpayer's liability for the same calendar month of the 
11preceding year. The amount of such quarter monthly payments 
12shall be credited against the final tax liability of the 
13taxpayer's return for that month filed under this Section or 
14Section 2f, as the case may be. Once applicable, the 
15requirement of the making of quarter monthly payments to the 
16Department pursuant to this paragraph shall continue until 
17such taxpayer's average monthly prepaid tax collections during 
18the preceding 2 complete calendar quarters is $25,000 or less. 
19If any such quarter monthly payment is not paid at the time or 
20in the amount required, the taxpayer shall be liable for 
21penalties and interest on such difference, except insofar as 
22the taxpayer has previously made payments for that month in 
23excess of the minimum payments previously due.
24 The provisions of this paragraph apply on and after 
25October 1, 2001. Without regard to whether a taxpayer is 
26required to make quarter monthly payments as specified above, 
 
 
10300HB4951sam002- 596 -LRB103 38094 HLH 74177 a


1any taxpayer who is required by Section 2d of this Act to 
2collect and remit prepaid taxes and has collected prepaid 
3taxes that average in excess of $20,000 per month during the 
4preceding 4 complete calendar quarters shall file a return 
5with the Department as required by Section 2f and shall make 
6payments to the Department on or before the 7th, 15th, 22nd, 
7and last day of the month during which the liability is 
8incurred. Each payment shall be in an amount equal to 22.5% of 
9the taxpayer's actual liability for the month or 25% of the 
10taxpayer's liability for the same calendar month of the 
11preceding year. The amount of the quarter monthly payments 
12shall be credited against the final tax liability of the 
13taxpayer's return for that month filed under this Section or 
14Section 2f, as the case may be. Once applicable, the 
15requirement of the making of quarter monthly payments to the 
16Department pursuant to this paragraph shall continue until the 
17taxpayer's average monthly prepaid tax collections during the 
18preceding 4 complete calendar quarters (excluding the month of 
19highest liability and the month of lowest liability) is less 
20than $19,000 or until such taxpayer's average monthly 
21liability to the Department as computed for each calendar 
22quarter of the 4 preceding complete calendar quarters is less 
23than $20,000. If any such quarter monthly payment is not paid 
24at the time or in the amount required, the taxpayer shall be 
25liable for penalties and interest on such difference, except 
26insofar as the taxpayer has previously made payments for that 
 
 
10300HB4951sam002- 597 -LRB103 38094 HLH 74177 a


1month in excess of the minimum payments previously due.
2 If any payment provided for in this Section exceeds the 
3taxpayer's liabilities under this Act, the Use Tax Act, the 
4Service Occupation Tax Act, and the Service Use Tax Act, as 
5shown on an original monthly return, the Department shall, if 
6requested by the taxpayer, issue to the taxpayer a credit 
7memorandum no later than 30 days after the date of payment. The 
8credit evidenced by such credit memorandum may be assigned by 
9the taxpayer to a similar taxpayer under this Act, the Use Tax 
10Act, the Service Occupation Tax Act, or the Service Use Tax 
11Act, in accordance with reasonable rules and regulations to be 
12prescribed by the Department. If no such request is made, the 
13taxpayer may credit such excess payment against tax liability 
14subsequently to be remitted to the Department under this Act, 
15the Use Tax Act, the Service Occupation Tax Act, or the Service 
16Use Tax Act, in accordance with reasonable rules and 
17regulations prescribed by the Department. If the Department 
18subsequently determined that all or any part of the credit 
19taken was not actually due to the taxpayer, the taxpayer's 
202.1% and 1.75% vendor's discount shall be reduced by 2.1% or 
211.75% of the difference between the credit taken and that 
22actually due, and that taxpayer shall be liable for penalties 
23and interest on such difference.
24 If a retailer of motor fuel is entitled to a credit under 
25Section 2d of this Act which exceeds the taxpayer's liability 
26to the Department under this Act for the month for which the 
 
 
10300HB4951sam002- 598 -LRB103 38094 HLH 74177 a


1taxpayer is filing a return, the Department shall issue the 
2taxpayer a credit memorandum for the excess.
3 Beginning January 1, 1990, each month the Department shall 
4pay into the Local Government Tax Fund, a special fund in the 
5State treasury which is hereby created, the net revenue 
6realized for the preceding month from the 1% tax imposed under 
7this Act.
8 Beginning January 1, 1990, each month the Department shall 
9pay into the County and Mass Transit District Fund, a special 
10fund in the State treasury which is hereby created, 4% of the 
11net revenue realized for the preceding month from the 6.25% 
12general rate other than aviation fuel sold on or after 
13December 1, 2019. This exception for aviation fuel only 
14applies for so long as the revenue use requirements of 49 
15U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
16 Beginning August 1, 2000, each month the Department shall 
17pay into the County and Mass Transit District Fund 20% of the 
18net revenue realized for the preceding month from the 1.25% 
19rate on the selling price of motor fuel and gasohol. If, in any 
20month, the tax on sales tax holiday items, as defined in 
21Section 2-8, is imposed at the rate of 1.25%, then the 
22Department shall pay 20% of the net revenue realized for that 
23month from the 1.25% rate on the selling price of sales tax 
24holiday items into the County and Mass Transit District Fund.
25 Beginning January 1, 1990, each month the Department shall 
26pay into the Local Government Tax Fund 16% of the net revenue 
 
 
10300HB4951sam002- 599 -LRB103 38094 HLH 74177 a


1realized for the preceding month from the 6.25% general rate 
2on the selling price of tangible personal property other than 
3aviation fuel sold on or after December 1, 2019. This 
4exception for aviation fuel only applies for so long as the 
5revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
647133 are binding on the State.
7 For aviation fuel sold on or after December 1, 2019, each 
8month the Department shall pay into the State Aviation Program 
9Fund 20% of the net revenue realized for the preceding month 
10from the 6.25% general rate on the selling price of aviation 
11fuel, less an amount estimated by the Department to be 
12required for refunds of the 20% portion of the tax on aviation 
13fuel under this Act, which amount shall be deposited into the 
14Aviation Fuel Sales Tax Refund Fund. The Department shall only 
15pay moneys into the State Aviation Program Fund and the 
16Aviation Fuel Sales Tax Refund Fund under this Act for so long 
17as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
18U.S.C. 47133 are binding on the State. 
19 Beginning August 1, 2000, each month the Department shall 
20pay into the Local Government Tax Fund 80% of the net revenue 
21realized for the preceding month from the 1.25% rate on the 
22selling price of motor fuel and gasohol. If, in any month, the 
23tax on sales tax holiday items, as defined in Section 2-8, is 
24imposed at the rate of 1.25%, then the Department shall pay 80% 
25of the net revenue realized for that month from the 1.25% rate 
26on the selling price of sales tax holiday items into the Local 
 
 
10300HB4951sam002- 600 -LRB103 38094 HLH 74177 a


1Government Tax Fund.
2 Beginning October 1, 2009, each month the Department shall 
3pay into the Capital Projects Fund an amount that is equal to 
4an amount estimated by the Department to represent 80% of the 
5net revenue realized for the preceding month from the sale of 
6candy, grooming and hygiene products, and soft drinks that had 
7been taxed at a rate of 1% prior to September 1, 2009 but that 
8are now taxed at 6.25%. 
9 Beginning July 1, 2011, each month the Department shall 
10pay into the Clean Air Act Permit Fund 80% of the net revenue 
11realized for the preceding month from the 6.25% general rate 
12on the selling price of sorbents used in Illinois in the 
13process of sorbent injection as used to comply with the 
14Environmental Protection Act or the federal Clean Air Act, but 
15the total payment into the Clean Air Act Permit Fund under this 
16Act and the Use Tax Act shall not exceed $2,000,000 in any 
17fiscal year. 
18 Beginning July 1, 2013, each month the Department shall 
19pay into the Underground Storage Tank Fund from the proceeds 
20collected under this Act, the Use Tax Act, the Service Use Tax 
21Act, and the Service Occupation Tax Act an amount equal to the 
22average monthly deficit in the Underground Storage Tank Fund 
23during the prior year, as certified annually by the Illinois 
24Environmental Protection Agency, but the total payment into 
25the Underground Storage Tank Fund under this Act, the Use Tax 
26Act, the Service Use Tax Act, and the Service Occupation Tax 
 
 
10300HB4951sam002- 601 -LRB103 38094 HLH 74177 a


1Act shall not exceed $18,000,000 in any State fiscal year. As 
2used in this paragraph, the "average monthly deficit" shall be 
3equal to the difference between the average monthly claims for 
4payment by the fund and the average monthly revenues deposited 
5into the fund, excluding payments made pursuant to this 
6paragraph. 
7 Beginning July 1, 2015, of the remainder of the moneys 
8received by the Department under the Use Tax Act, the Service 
9Use Tax Act, the Service Occupation Tax Act, and this Act, each 
10month the Department shall deposit $500,000 into the State 
11Crime Laboratory Fund. 
12 Of the remainder of the moneys received by the Department 
13pursuant to this Act, (a) 1.75% thereof shall be paid into the 
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
15and after July 1, 1989, 3.8% thereof shall be paid into the 
16Build Illinois Fund; provided, however, that if in any fiscal 
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
18may be, of the moneys received by the Department and required 
19to be paid into the Build Illinois Fund pursuant to this Act, 
20Section 9 of the Use Tax Act, Section 9 of the Service Use Tax 
21Act, and Section 9 of the Service Occupation Tax Act, such Acts 
22being hereinafter called the "Tax Acts" and such aggregate of 
232.2% or 3.8%, as the case may be, of moneys being hereinafter 
24called the "Tax Act Amount", and (2) the amount transferred to 
25the Build Illinois Fund from the State and Local Sales Tax 
26Reform Fund shall be less than the Annual Specified Amount (as 
 
 
10300HB4951sam002- 602 -LRB103 38094 HLH 74177 a


1hereinafter defined), an amount equal to the difference shall 
2be immediately paid into the Build Illinois Fund from other 
3moneys received by the Department pursuant to the Tax Acts; 
4the "Annual Specified Amount" means the amounts specified 
5below for fiscal years 1986 through 1993:
6Fiscal YearAnnual Specified Amount
71986$54,800,000
81987$76,650,000
91988$80,480,000
101989$88,510,000
111990$115,330,000
121991$145,470,000
131992$182,730,000
141993$206,520,000;
15and means the Certified Annual Debt Service Requirement (as 
16defined in Section 13 of the Build Illinois Bond Act) or the 
17Tax Act Amount, whichever is greater, for fiscal year 1994 and 
18each fiscal year thereafter; and further provided, that if on 
19the last business day of any month the sum of (1) the Tax Act 
20Amount required to be deposited into the Build Illinois Bond 
21Account in the Build Illinois Fund during such month and (2) 
22the amount transferred to the Build Illinois Fund from the 
23State and Local Sales Tax Reform Fund shall have been less than 
241/12 of the Annual Specified Amount, an amount equal to the 
25difference shall be immediately paid into the Build Illinois 
26Fund from other moneys received by the Department pursuant to 
 
 
10300HB4951sam002- 603 -LRB103 38094 HLH 74177 a


1the Tax Acts; and, further provided, that in no event shall the 
2payments required under the preceding proviso result in 
3aggregate payments into the Build Illinois Fund pursuant to 
4this clause (b) for any fiscal year in excess of the greater of 
5(i) the Tax Act Amount or (ii) the Annual Specified Amount for 
6such fiscal year. The amounts payable into the Build Illinois 
7Fund under clause (b) of the first sentence in this paragraph 
8shall be payable only until such time as the aggregate amount 
9on deposit under each trust indenture securing Bonds issued 
10and outstanding pursuant to the Build Illinois Bond Act is 
11sufficient, taking into account any future investment income, 
12to fully provide, in accordance with such indenture, for the 
13defeasance of or the payment of the principal of, premium, if 
14any, and interest on the Bonds secured by such indenture and on 
15any Bonds expected to be issued thereafter and all fees and 
16costs payable with respect thereto, all as certified by the 
17Director of the Bureau of the Budget (now Governor's Office of 
18Management and Budget). If on the last business day of any 
19month in which Bonds are outstanding pursuant to the Build 
20Illinois Bond Act, the aggregate of moneys deposited in the 
21Build Illinois Bond Account in the Build Illinois Fund in such 
22month shall be less than the amount required to be transferred 
23in such month from the Build Illinois Bond Account to the Build 
24Illinois Bond Retirement and Interest Fund pursuant to Section 
2513 of the Build Illinois Bond Act, an amount equal to such 
26deficiency shall be immediately paid from other moneys 
 
 
10300HB4951sam002- 604 -LRB103 38094 HLH 74177 a


1received by the Department pursuant to the Tax Acts to the 
2Build Illinois Fund; provided, however, that any amounts paid 
3to the Build Illinois Fund in any fiscal year pursuant to this 
4sentence shall be deemed to constitute payments pursuant to 
5clause (b) of the first sentence of this paragraph and shall 
6reduce the amount otherwise payable for such fiscal year 
7pursuant to that clause (b). The moneys received by the 
8Department pursuant to this Act and required to be deposited 
9into the Build Illinois Fund are subject to the pledge, claim 
10and charge set forth in Section 12 of the Build Illinois Bond 
11Act.
12 Subject to payment of amounts into the Build Illinois Fund 
13as provided in the preceding paragraph or in any amendment 
14thereto hereafter enacted, the following specified monthly 
15installment of the amount requested in the certificate of the 
16Chairman of the Metropolitan Pier and Exposition Authority 
17provided under Section 8.25f of the State Finance Act, but not 
18in excess of sums designated as "Total Deposit", shall be 
19deposited in the aggregate from collections under Section 9 of 
20the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
219 of the Service Occupation Tax Act, and Section 3 of the 
22Retailers' Occupation Tax Act into the McCormick Place 
23Expansion Project Fund in the specified fiscal years.
24Fiscal YearTotal Deposit
251993         $0
261994 53,000,000
 
 
10300HB4951sam002- 605 -LRB103 38094 HLH 74177 a


11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000
 
 
10300HB4951sam002- 606 -LRB103 38094 HLH 74177 a


       
12021300,000,000
22022300,000,000
32023300,000,000
42024 300,000,000
52025 300,000,000
62026 300,000,000
72027 375,000,000
82028 375,000,000
92029 375,000,000
102030 375,000,000
112031 375,000,000
122032 375,000,000
132033375,000,000
142034375,000,000
152035375,000,000
162036450,000,000
17and 
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25 Beginning July 20, 1993 and in each month of each fiscal 
26year thereafter, one-eighth of the amount requested in the 
 
 
10300HB4951sam002- 607 -LRB103 38094 HLH 74177 a


1certificate of the Chairman of the Metropolitan Pier and 
2Exposition Authority for that fiscal year, less the amount 
3deposited into the McCormick Place Expansion Project Fund by 
4the State Treasurer in the respective month under subsection 
5(g) of Section 13 of the Metropolitan Pier and Exposition 
6Authority Act, plus cumulative deficiencies in the deposits 
7required under this Section for previous months and years, 
8shall be deposited into the McCormick Place Expansion Project 
9Fund, until the full amount requested for the fiscal year, but 
10not in excess of the amount specified above as "Total 
11Deposit", has been deposited.
12 Subject to payment of amounts into the Capital Projects 
13Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
14and the McCormick Place Expansion Project Fund pursuant to the 
15preceding paragraphs or in any amendments thereto hereafter 
16enacted, for aviation fuel sold on or after December 1, 2019, 
17the Department shall each month deposit into the Aviation Fuel 
18Sales Tax Refund Fund an amount estimated by the Department to 
19be required for refunds of the 80% portion of the tax on 
20aviation fuel under this Act. The Department shall only 
21deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
22under this paragraph for so long as the revenue use 
23requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
24binding on the State. 
25 Subject to payment of amounts into the Build Illinois Fund 
26and the McCormick Place Expansion Project Fund pursuant to the 
 
 
10300HB4951sam002- 608 -LRB103 38094 HLH 74177 a


1preceding paragraphs or in any amendments thereto hereafter 
2enacted, beginning July 1, 1993 and ending on September 30, 
32013, the Department shall each month pay into the Illinois 
4Tax Increment Fund 0.27% of 80% of the net revenue realized for 
5the preceding month from the 6.25% general rate on the selling 
6price of tangible personal property.
7 Subject to payment of amounts into the Build Illinois 
8Fund, the McCormick Place Expansion Project Fund, and the 
9Illinois Tax Increment Fund pursuant to the preceding 
10paragraphs or in any amendments to this Section hereafter 
11enacted, beginning on the first day of the first calendar 
12month to occur on or after August 26, 2014 (the effective date 
13of Public Act 98-1098), each month, from the collections made 
14under Section 9 of the Use Tax Act, Section 9 of the Service 
15Use Tax Act, Section 9 of the Service Occupation Tax Act, and 
16Section 3 of the Retailers' Occupation Tax Act, the Department 
17shall pay into the Tax Compliance and Administration Fund, to 
18be used, subject to appropriation, to fund additional auditors 
19and compliance personnel at the Department of Revenue, an 
20amount equal to 1/12 of 5% of 80% of the cash receipts 
21collected during the preceding fiscal year by the Audit Bureau 
22of the Department under the Use Tax Act, the Service Use Tax 
23Act, the Service Occupation Tax Act, the Retailers' Occupation 
24Tax Act, and associated local occupation and use taxes 
25administered by the Department. 
26 Subject to payments of amounts into the Build Illinois 
 
 
10300HB4951sam002- 609 -LRB103 38094 HLH 74177 a


1Fund, the McCormick Place Expansion Project Fund, the Illinois 
2Tax Increment Fund, the Energy Infrastructure Fund, and the 
3Tax Compliance and Administration Fund as provided in this 
4Section, beginning on July 1, 2018 the Department shall pay 
5each month into the Downstate Public Transportation Fund the 
6moneys required to be so paid under Section 2-3 of the 
7Downstate Public Transportation Act.
8 Subject to successful execution and delivery of a 
9public-private agreement between the public agency and private 
10entity and completion of the civic build, beginning on July 1, 
112023, of the remainder of the moneys received by the 
12Department under the Use Tax Act, the Service Use Tax Act, the 
13Service Occupation Tax Act, and this Act, the Department shall 
14deposit the following specified deposits in the aggregate from 
15collections under the Use Tax Act, the Service Use Tax Act, the 
16Service Occupation Tax Act, and the Retailers' Occupation Tax 
17Act, as required under Section 8.25g of the State Finance Act 
18for distribution consistent with the Public-Private 
19Partnership for Civic and Transit Infrastructure Project Act. 
20The moneys received by the Department pursuant to this Act and 
21required to be deposited into the Civic and Transit 
22Infrastructure Fund are subject to the pledge, claim and 
23charge set forth in Section 25-55 of the Public-Private 
24Partnership for Civic and Transit Infrastructure Project Act. 
25As used in this paragraph, "civic build", "private entity", 
26"public-private agreement", and "public agency" have the 
 
 
10300HB4951sam002- 610 -LRB103 38094 HLH 74177 a


1meanings provided in Section 25-10 of the Public-Private 
2Partnership for Civic and Transit Infrastructure Project Act. 
3  Fiscal Year.............................Total Deposit
4  2024.....................................$200,000,000
5  2025....................................$206,000,000 
6  2026....................................$212,200,000 
7  2027....................................$218,500,000 
8  2028....................................$225,100,000 
9  2029....................................$288,700,000 
10  2030....................................$298,900,000 
11  2031....................................$309,300,000 
12  2032....................................$320,100,000 
13  2033....................................$331,200,000 
14  2034....................................$341,200,000 
15  2035....................................$351,400,000 
16  2036....................................$361,900,000 
17  2037....................................$372,800,000 
18  2038....................................$384,000,000 
19  2039....................................$395,500,000 
20  2040....................................$407,400,000 
21  2041....................................$419,600,000 
22  2042....................................$432,200,000 
23  2043....................................$445,100,000 
24 Beginning July 1, 2021 and until July 1, 2022, subject to 
25the payment of amounts into the County and Mass Transit 
26District Fund, the Local Government Tax Fund, the Build 
 
 
10300HB4951sam002- 611 -LRB103 38094 HLH 74177 a


1Illinois Fund, the McCormick Place Expansion Project Fund, the 
2Illinois Tax Increment Fund, and the Tax Compliance and 
3Administration Fund as provided in this Section, the 
4Department shall pay each month into the Road Fund the amount 
5estimated to represent 16% of the net revenue realized from 
6the taxes imposed on motor fuel and gasohol. Beginning July 1, 
72022 and until July 1, 2023, subject to the payment of amounts 
8into the County and Mass Transit District Fund, the Local 
9Government Tax Fund, the Build Illinois Fund, the McCormick 
10Place Expansion Project Fund, the Illinois Tax Increment Fund, 
11and the Tax Compliance and Administration Fund as provided in 
12this Section, the Department shall pay each month into the 
13Road Fund the amount estimated to represent 32% of the net 
14revenue realized from the taxes imposed on motor fuel and 
15gasohol. Beginning July 1, 2023 and until July 1, 2024, 
16subject to the payment of amounts into the County and Mass 
17Transit District Fund, the Local Government Tax Fund, the 
18Build Illinois Fund, the McCormick Place Expansion Project 
19Fund, the Illinois Tax Increment Fund, and the Tax Compliance 
20and Administration Fund as provided in this Section, the 
21Department shall pay each month into the Road Fund the amount 
22estimated to represent 48% of the net revenue realized from 
23the taxes imposed on motor fuel and gasohol. Beginning July 1, 
242024 and until July 1, 2025, subject to the payment of amounts 
25into the County and Mass Transit District Fund, the Local 
26Government Tax Fund, the Build Illinois Fund, the McCormick 
 
 
10300HB4951sam002- 612 -LRB103 38094 HLH 74177 a


1Place Expansion Project Fund, the Illinois Tax Increment Fund, 
2and the Tax Compliance and Administration Fund as provided in 
3this Section, the Department shall pay each month into the 
4Road Fund the amount estimated to represent 64% of the net 
5revenue realized from the taxes imposed on motor fuel and 
6gasohol. Beginning on July 1, 2025, subject to the payment of 
7amounts into the County and Mass Transit District Fund, the 
8Local Government Tax Fund, the Build Illinois Fund, the 
9McCormick Place Expansion Project Fund, the Illinois Tax 
10Increment Fund, and the Tax Compliance and Administration Fund 
11as provided in this Section, the Department shall pay each 
12month into the Road Fund the amount estimated to represent 80% 
13of the net revenue realized from the taxes imposed on motor 
14fuel and gasohol. As used in this paragraph "motor fuel" has 
15the meaning given to that term in Section 1.1 of the Motor Fuel 
16Tax Law, and "gasohol" has the meaning given to that term in 
17Section 3-40 of the Use Tax Act.
18 Of the remainder of the moneys received by the Department 
19pursuant to this Act, 75% thereof shall be paid into the State 
20treasury and 25% shall be reserved in a special account and 
21used only for the transfer to the Common School Fund as part of 
22the monthly transfer from the General Revenue Fund in 
23accordance with Section 8a of the State Finance Act.
24 The Department may, upon separate written notice to a 
25taxpayer, require the taxpayer to prepare and file with the 
26Department on a form prescribed by the Department within not 
 
 
10300HB4951sam002- 613 -LRB103 38094 HLH 74177 a


1less than 60 days after receipt of the notice an annual 
2information return for the tax year specified in the notice. 
3Such annual return to the Department shall include a statement 
4of gross receipts as shown by the retailer's last federal 
5Federal income tax return. If the total receipts of the 
6business as reported in the federal Federal income tax return 
7do not agree with the gross receipts reported to the 
8Department of Revenue for the same period, the retailer shall 
9attach to his annual return a schedule showing a 
10reconciliation of the 2 amounts and the reasons for the 
11difference. The retailer's annual return to the Department 
12shall also disclose the cost of goods sold by the retailer 
13during the year covered by such return, opening and closing 
14inventories of such goods for such year, costs of goods used 
15from stock or taken from stock and given away by the retailer 
16during such year, payroll information of the retailer's 
17business during such year and any additional reasonable 
18information which the Department deems would be helpful in 
19determining the accuracy of the monthly, quarterly, or annual 
20returns filed by such retailer as provided for in this 
21Section.
22 If the annual information return required by this Section 
23is not filed when and as required, the taxpayer shall be liable 
24as follows:
25  (i) Until January 1, 1994, the taxpayer shall be 
26 liable for a penalty equal to 1/6 of 1% of the tax due from 
 
 
10300HB4951sam002- 614 -LRB103 38094 HLH 74177 a


1 such taxpayer under this Act during the period to be 
2 covered by the annual return for each month or fraction of 
3 a month until such return is filed as required, the 
4 penalty to be assessed and collected in the same manner as 
5 any other penalty provided for in this Act.
6  (ii) On and after January 1, 1994, the taxpayer shall 
7 be liable for a penalty as described in Section 3-4 of the 
8 Uniform Penalty and Interest Act.
9 The chief executive officer, proprietor, owner, or highest 
10ranking manager shall sign the annual return to certify the 
11accuracy of the information contained therein. Any person who 
12willfully signs the annual return containing false or 
13inaccurate information shall be guilty of perjury and punished 
14accordingly. The annual return form prescribed by the 
15Department shall include a warning that the person signing the 
16return may be liable for perjury.
17 The provisions of this Section concerning the filing of an 
18annual information return do not apply to a retailer who is not 
19required to file an income tax return with the United States 
20Government.
21 As soon as possible after the first day of each month, upon 
22certification of the Department of Revenue, the Comptroller 
23shall order transferred and the Treasurer shall transfer from 
24the General Revenue Fund to the Motor Fuel Tax Fund an amount 
25equal to 1.7% of 80% of the net revenue realized under this Act 
26for the second preceding month. Beginning April 1, 2000, this 
 
 
10300HB4951sam002- 615 -LRB103 38094 HLH 74177 a


1transfer is no longer required and shall not be made.
2 Net revenue realized for a month shall be the revenue 
3collected by the State pursuant to this Act, less the amount 
4paid out during that month as refunds to taxpayers for 
5overpayment of liability.
6 For greater simplicity of administration, manufacturers, 
7importers and wholesalers whose products are sold at retail in 
8Illinois by numerous retailers, and who wish to do so, may 
9assume the responsibility for accounting and paying to the 
10Department all tax accruing under this Act with respect to 
11such sales, if the retailers who are affected do not make 
12written objection to the Department to this arrangement.
13 Any person who promotes, organizes, or provides retail 
14selling space for concessionaires or other types of sellers at 
15the Illinois State Fair, DuQuoin State Fair, county fairs, 
16local fairs, art shows, flea markets, and similar exhibitions 
17or events, including any transient merchant as defined by 
18Section 2 of the Transient Merchant Act of 1987, is required to 
19file a report with the Department providing the name of the 
20merchant's business, the name of the person or persons engaged 
21in merchant's business, the permanent address and Illinois 
22Retailers Occupation Tax Registration Number of the merchant, 
23the dates and location of the event, and other reasonable 
24information that the Department may require. The report must 
25be filed not later than the 20th day of the month next 
26following the month during which the event with retail sales 
 
 
10300HB4951sam002- 616 -LRB103 38094 HLH 74177 a


1was held. Any person who fails to file a report required by 
2this Section commits a business offense and is subject to a 
3fine not to exceed $250.
4 Any person engaged in the business of selling tangible 
5personal property at retail as a concessionaire or other type 
6of seller at the Illinois State Fair, county fairs, art shows, 
7flea markets, and similar exhibitions or events, or any 
8transient merchants, as defined by Section 2 of the Transient 
9Merchant Act of 1987, may be required to make a daily report of 
10the amount of such sales to the Department and to make a daily 
11payment of the full amount of tax due. The Department shall 
12impose this requirement when it finds that there is a 
13significant risk of loss of revenue to the State at such an 
14exhibition or event. Such a finding shall be based on evidence 
15that a substantial number of concessionaires or other sellers 
16who are not residents of Illinois will be engaging in the 
17business of selling tangible personal property at retail at 
18the exhibition or event, or other evidence of a significant 
19risk of loss of revenue to the State. The Department shall 
20notify concessionaires and other sellers affected by the 
21imposition of this requirement. In the absence of notification 
22by the Department, the concessionaires and other sellers shall 
23file their returns as otherwise required in this Section.
24(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, 
25Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 
2665-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 
 
 
10300HB4951sam002- 617 -LRB103 38094 HLH 74177 a


11-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, 
2eff. 7-28-23; revised 9-27-23.)

3 Section 75-25. The Innovation Development and Economy Act 
4is amended by changing Section 31 as follows:

5 (50 ILCS 470/31)
6 Sec. 31. STAR bond occupation taxes. 
7 (a) If the corporate authorities of a political 
8subdivision have established a STAR bond district and have 
9elected to impose a tax by ordinance pursuant to subsection 
10(b) or (c) of this Section, each year after the date of the 
11adoption of the ordinance and until all STAR bond project 
12costs and all political subdivision obligations financing the 
13STAR bond project costs, if any, have been paid in accordance 
14with the STAR bond project plans, but in no event longer than 
15the maximum maturity date of the last of the STAR bonds issued 
16for projects in the STAR bond district, all amounts generated 
17by the retailers' occupation tax and service occupation tax 
18shall be collected and the tax shall be enforced by the 
19Department of Revenue in the same manner as all retailers' 
20occupation taxes and service occupation taxes imposed in the 
21political subdivision imposing the tax. The corporate 
22authorities of the political subdivision shall deposit the 
23proceeds of the taxes imposed under subsections (b) and (c) 
24into either (i) a special fund held by the corporate 
 
 
10300HB4951sam002- 618 -LRB103 38094 HLH 74177 a


1authorities of the political subdivision called the STAR Bonds 
2Tax Allocation Fund for the purpose of paying STAR bond 
3project costs and obligations incurred in the payment of those 
4costs if such taxes are designated as pledged STAR revenues by 
5resolution or ordinance of the political subdivision or (ii) 
6the political subdivision's general corporate fund if such 
7taxes are not designated as pledged STAR revenues by 
8resolution or ordinance.
9 The tax imposed under this Section by a municipality may 
10be imposed only on the portion of a STAR bond district that is 
11within the boundaries of the municipality. For any part of a 
12STAR bond district that lies outside of the boundaries of that 
13municipality, the municipality in which the other part of the 
14STAR bond district lies (or the county, in cases where a 
15portion of the STAR bond district lies in the unincorporated 
16area of a county) is authorized to impose the tax under this 
17Section on that part of the STAR bond district.
18 (b) The corporate authorities of a political subdivision 
19that has established a STAR bond district under this Act may, 
20by ordinance or resolution, impose a STAR Bond Retailers' 
21Occupation Tax upon all persons engaged in the business of 
22selling tangible personal property, other than an item of 
23tangible personal property titled or registered with an agency 
24of this State's government, at retail in the STAR bond 
25district at a rate not to exceed 1% of the gross receipts from 
26the sales made in the course of that business, to be imposed 
 
 
10300HB4951sam002- 619 -LRB103 38094 HLH 74177 a


1only in 0.25% increments. The tax may not be imposed on 
2tangible personal property taxed at the 1% rate under the 
3Retailers' Occupation Tax Act (or at the 0% rate imposed under 
4this amendatory Act of the 102nd General Assembly). Beginning 
5December 1, 2019 and through December 31, 2020, this tax is not 
6imposed on sales of aviation fuel unless the tax revenue is 
7expended for airport-related purposes. If the District does 
8not have an airport-related purpose to which aviation fuel tax 
9revenue is dedicated, then aviation fuel is excluded from the 
10tax. The municipality must comply with the certification 
11requirements for airport-related purposes under Section 2-22 
12of the Retailers' Occupation Tax Act. For purposes of this 
13Act, "airport-related purposes" has the meaning ascribed in 
14Section 6z-20.2 of the State Finance Act. Beginning January 1, 
152021, this tax is not imposed on sales of aviation fuel for so 
16long as the revenue use requirements of 49 U.S.C. 47107(b) and 
1749 U.S.C. 47133 are binding on the District.
18 The tax imposed under this subsection and all civil 
19penalties that may be assessed as an incident thereof shall be 
20collected and enforced by the Department of Revenue. The 
21certificate of registration that is issued by the Department 
22to a retailer under the Retailers' Occupation Tax Act shall 
23permit the retailer to engage in a business that is taxable 
24under any ordinance or resolution enacted pursuant to this 
25subsection without registering separately with the Department 
26under such ordinance or resolution or under this subsection. 
 
 
10300HB4951sam002- 620 -LRB103 38094 HLH 74177 a


1The Department of Revenue shall have full power to administer 
2and enforce this subsection, to collect all taxes and 
3penalties due under this subsection in the manner hereinafter 
4provided, and to determine all rights to credit memoranda 
5arising on account of the erroneous payment of tax or penalty 
6under this subsection. In the administration of, and 
7compliance with, this subsection, the Department and persons 
8who are subject to this subsection shall have the same rights, 
9remedies, privileges, immunities, powers, and duties, and be 
10subject to the same conditions, restrictions, limitations, 
11penalties, exclusions, exemptions, and definitions of terms 
12and employ the same modes of procedure, as are prescribed in 
13Sections 1, 1a through 1o, 2 through 2-65 (in respect to all 
14provisions therein other than the State rate of tax), 2c 
15through 2h, 3 (except as to the disposition of taxes and 
16penalties collected, and except that the retailer's discount 
17is not allowed for taxes paid on aviation fuel that are subject 
18to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
19U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 
205l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the 
21Retailers' Occupation Tax Act and all provisions of the 
22Uniform Penalty and Interest Act, as fully as if those 
23provisions were set forth herein.
24 If a tax is imposed under this subsection (b), a tax shall 
25also be imposed under subsection (c) of this Section.
26 (c) If a tax has been imposed under subsection (b), a STAR 
 
 
10300HB4951sam002- 621 -LRB103 38094 HLH 74177 a


1Bond Service Occupation Tax shall also be imposed upon all 
2persons engaged, in the STAR bond district, in the business of 
3making sales of service, who, as an incident to making those 
4sales of service, transfer tangible personal property within 
5the STAR bond district, either in the form of tangible 
6personal property or in the form of real estate as an incident 
7to a sale of service. The tax shall be imposed at the same rate 
8as the tax imposed in subsection (b) and shall not exceed 1% of 
9the selling price of tangible personal property so transferred 
10within the STAR bond district, to be imposed only in 0.25% 
11increments. The tax may not be imposed on tangible personal 
12property taxed at the 1% rate under the Service Occupation Tax 
13Act (or at the 0% rate imposed under this amendatory Act of the 
14102nd General Assembly). Beginning December 1, 2019 and 
15through December 31, 2020, this tax is not imposed on sales of 
16aviation fuel unless the tax revenue is expended for 
17airport-related purposes. If the District does not have an 
18airport-related purpose to which aviation fuel tax revenue is 
19dedicated, then aviation fuel is excluded from the tax. The 
20municipality must comply with the certification requirements 
21for airport-related purposes under Section 2-22 of the 
22Retailers' Occupation Tax Act. For purposes of this Act, 
23"airport-related purposes" has the meaning ascribed in Section 
246z-20.2 of the State Finance Act. Beginning January 1, 2021, 
25this tax is not imposed on sales of aviation fuel for so long 
26as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
 
 
10300HB4951sam002- 622 -LRB103 38094 HLH 74177 a


1U.S.C. 47133 are binding on the District.
2 The tax imposed under this subsection and all civil 
3penalties that may be assessed as an incident thereof shall be 
4collected and enforced by the Department of Revenue. The 
5certificate of registration that is issued by the Department 
6to a retailer under the Retailers' Occupation Tax Act or under 
7the Service Occupation Tax Act shall permit the registrant to 
8engage in a business that is taxable under any ordinance or 
9resolution enacted pursuant to this subsection without 
10registering separately with the Department under that 
11ordinance or resolution or under this subsection. The 
12Department of Revenue shall have full power to administer and 
13enforce this subsection, to collect all taxes and penalties 
14due under this subsection, to dispose of taxes and penalties 
15so collected in the manner hereinafter provided, and to 
16determine all rights to credit memoranda arising on account of 
17the erroneous payment of tax or penalty under this subsection. 
18In the administration of, and compliance with this subsection, 
19the Department and persons who are subject to this subsection 
20shall have the same rights, remedies, privileges, immunities, 
21powers, and duties, and be subject to the same conditions, 
22restrictions, limitations, penalties, exclusions, exemptions, 
23and definitions of terms and employ the same modes of 
24procedure as are prescribed in Sections 2, 2a through 2d, 3 
25through 3-50 (in respect to all provisions therein other than 
26the State rate of tax), 4 (except that the reference to the 
 
 
10300HB4951sam002- 623 -LRB103 38094 HLH 74177 a


1State shall be to the STAR bond district), 5, 7, 8 (except that 
2the jurisdiction to which the tax shall be a debt to the extent 
3indicated in that Section 8 shall be the political 
4subdivision), 9 (except as to the disposition of taxes and 
5penalties collected, and except that the returned merchandise 
6credit for this tax may not be taken against any State tax, and 
7except that the retailer's discount is not allowed for taxes 
8paid on aviation fuel that are subject to the revenue use 
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 
1011, 12 (except the reference therein to Section 2b of the 
11Retailers' Occupation Tax Act), 13 (except that any reference 
12to the State shall mean the political subdivision), the first 
13paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of 
14the Service Occupation Tax Act and all provisions of the 
15Uniform Penalty and Interest Act, as fully as if those 
16provisions were set forth herein.
17 If a tax is imposed under this subsection (c), a tax shall 
18also be imposed under subsection (b) of this Section.
19 (c-5) If, on January 1, 2025, a unit of local government 
20has in effect a tax under this Section, or if, after January 1, 
212025, a unit of local government imposes a tax under this 
22Section, then that tax applies to leases of tangible personal 
23property in effect, entered into, or renewed on or after that 
24date in the same manner as the tax under this Section and in 
25accordance with the changes made by this amendatory Act of the 
26103rd General Assembly. 
 
 
10300HB4951sam002- 624 -LRB103 38094 HLH 74177 a


1 (d) Persons subject to any tax imposed under this Section 
2may reimburse themselves for their seller's tax liability 
3under this Section by separately stating the tax as an 
4additional charge, which charge may be stated in combination, 
5in a single amount, with State taxes that sellers are required 
6to collect under the Use Tax Act, in accordance with such 
7bracket schedules as the Department may prescribe.
8 Whenever the Department determines that a refund should be 
9made under this Section to a claimant instead of issuing a 
10credit memorandum, the Department shall notify the State 
11Comptroller, who shall cause the order to be drawn for the 
12amount specified and to the person named in the notification 
13from the Department. The refund shall be paid by the State 
14Treasurer out of the STAR Bond Retailers' Occupation Tax Fund 
15or the Local Government Aviation Trust Fund, as appropriate.
16 Except as otherwise provided in this paragraph, the 
17Department shall immediately pay over to the State Treasurer, 
18ex officio, as trustee, all taxes, penalties, and interest 
19collected under this Section for deposit into the STAR Bond 
20Retailers' Occupation Tax Fund. Taxes and penalties collected 
21on aviation fuel sold on or after December 1, 2019, shall be 
22immediately paid over by the Department to the State 
23Treasurer, ex officio, as trustee, for deposit into the Local 
24Government Aviation Trust Fund. The Department shall only pay 
25moneys into the Local Government Aviation Trust Fund under 
26this Section for so long as the revenue use requirements of 49 
 
 
10300HB4951sam002- 625 -LRB103 38094 HLH 74177 a


1U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
2District. On or before the 25th day of each calendar month, the 
3Department shall prepare and certify to the Comptroller the 
4disbursement of stated sums of money to named political 
5subdivisions from the STAR Bond Retailers' Occupation Tax 
6Fund, the political subdivisions to be those from which 
7retailers have paid taxes or penalties under this Section to 
8the Department during the second preceding calendar month. The 
9amount to be paid to each political subdivision shall be the 
10amount (not including credit memoranda and not including taxes 
11and penalties collected on aviation fuel sold on or after 
12December 1, 2019) collected under this Section during the 
13second preceding calendar month by the Department plus an 
14amount the Department determines is necessary to offset any 
15amounts that were erroneously paid to a different taxing body, 
16and not including an amount equal to the amount of refunds made 
17during the second preceding calendar month by the Department, 
18less 3% of that amount, which shall be deposited into the Tax 
19Compliance and Administration Fund and shall be used by the 
20Department, subject to appropriation, to cover the costs of 
21the Department in administering and enforcing the provisions 
22of this Section, on behalf of such political subdivision, and 
23not including any amount that the Department determines is 
24necessary to offset any amounts that were payable to a 
25different taxing body but were erroneously paid to the 
26political subdivision. Within 10 days after receipt by the 
 
 
10300HB4951sam002- 626 -LRB103 38094 HLH 74177 a


1Comptroller of the disbursement certification to the political 
2subdivisions provided for in this Section to be given to the 
3Comptroller by the Department, the Comptroller shall cause the 
4orders to be drawn for the respective amounts in accordance 
5with the directions contained in the certification. The 
6proceeds of the tax paid to political subdivisions under this 
7Section shall be deposited into either (i) the STAR Bonds Tax 
8Allocation Fund by the political subdivision if the political 
9subdivision has designated them as pledged STAR revenues by 
10resolution or ordinance or (ii) the political subdivision's 
11general corporate fund if the political subdivision has not 
12designated them as pledged STAR revenues.
13 An ordinance or resolution imposing or discontinuing the 
14tax under this Section or effecting a change in the rate 
15thereof shall either (i) be adopted and a certified copy 
16thereof filed with the Department on or before the first day of 
17April, whereupon the Department, if all other requirements of 
18this Section are met, shall proceed to administer and enforce 
19this Section as of the first day of July next following the 
20adoption and filing; or (ii) be adopted and a certified copy 
21thereof filed with the Department on or before the first day of 
22October, whereupon, if all other requirements of this Section 
23are met, the Department shall proceed to administer and 
24enforce this Section as of the first day of January next 
25following the adoption and filing.
26 The Department of Revenue shall not administer or enforce 
 
 
10300HB4951sam002- 627 -LRB103 38094 HLH 74177 a


1an ordinance imposing, discontinuing, or changing the rate of 
2the tax under this Section until the political subdivision 
3also provides, in the manner prescribed by the Department, the 
4boundaries of the STAR bond district and each address in the 
5STAR bond district in such a way that the Department can 
6determine by its address whether a business is located in the 
7STAR bond district. The political subdivision must provide 
8this boundary and address information to the Department on or 
9before April 1 for administration and enforcement of the tax 
10under this Section by the Department beginning on the 
11following July 1 and on or before October 1 for administration 
12and enforcement of the tax under this Section by the 
13Department beginning on the following January 1. The 
14Department of Revenue shall not administer or enforce any 
15change made to the boundaries of a STAR bond district or any 
16address change, addition, or deletion until the political 
17subdivision reports the boundary change or address change, 
18addition, or deletion to the Department in the manner 
19prescribed by the Department. The political subdivision must 
20provide this boundary change or address change, addition, or 
21deletion information to the Department on or before April 1 
22for administration and enforcement by the Department of the 
23change, addition, or deletion beginning on the following July 
241 and on or before October 1 for administration and 
25enforcement by the Department of the change, addition, or 
26deletion beginning on the following January 1. The retailers 
 
 
10300HB4951sam002- 628 -LRB103 38094 HLH 74177 a


1in the STAR bond district shall be responsible for charging 
2the tax imposed under this Section. If a retailer is 
3incorrectly included or excluded from the list of those 
4required to collect the tax under this Section, both the 
5Department of Revenue and the retailer shall be held harmless 
6if they reasonably relied on information provided by the 
7political subdivision.
8 A political subdivision that imposes the tax under this 
9Section must submit to the Department of Revenue any other 
10information as the Department may require that is necessary 
11for the administration and enforcement of the tax.
12 When certifying the amount of a monthly disbursement to a 
13political subdivision under this Section, the Department shall 
14increase or decrease the amount by an amount necessary to 
15offset any misallocation of previous disbursements. The offset 
16amount shall be the amount erroneously disbursed within the 
17previous 6 months from the time a misallocation is discovered.
18 Nothing in this Section shall be construed to authorize 
19the political subdivision to impose a tax upon the privilege 
20of engaging in any business which under the Constitution of 
21the United States may not be made the subject of taxation by 
22this State.
23 (e) When STAR bond project costs, including, without 
24limitation, all political subdivision obligations financing 
25STAR bond project costs, have been paid, any surplus funds 
26then remaining in the STAR Bonds Tax Allocation Fund shall be 
 
 
10300HB4951sam002- 629 -LRB103 38094 HLH 74177 a


1distributed to the treasurer of the political subdivision for 
2deposit into the political subdivision's general corporate 
3fund. Upon payment of all STAR bond project costs and 
4retirement of obligations, but in no event later than the 
5maximum maturity date of the last of the STAR bonds issued in 
6the STAR bond district, the political subdivision shall adopt 
7an ordinance immediately rescinding the taxes imposed pursuant 
8to this Section and file a certified copy of the ordinance with 
9the Department in the form and manner as described in this 
10Section.
11(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; 
12102-700, eff. 4-19-22.)

13 Section 75-30. The Counties Code is amended by changing 
14Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, and 5-1008.5 as 
15follows:

16 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
17 Sec. 5-1006. Home Rule County Retailers' Occupation Tax 
18Law. Any county that is a home rule unit may impose a tax upon 
19all persons engaged in the business of selling tangible 
20personal property, other than an item of tangible personal 
21property titled or registered with an agency of this State's 
22government, at retail in the county on the gross receipts from 
23such sales made in the course of their business. If imposed, 
24this tax shall only be imposed in 1/4% increments. On and after 
 
 
10300HB4951sam002- 630 -LRB103 38094 HLH 74177 a


1September 1, 1991, this additional tax may not be imposed on 
2tangible personal property taxed at the 1% rate under the 
3Retailers' Occupation Tax Act (or at the 0% rate imposed under 
4this amendatory Act of the 102nd General Assembly). Beginning 
5December 1, 2019, this tax is not imposed on sales of aviation 
6fuel unless the tax revenue is expended for airport-related 
7purposes. If the county does not have an airport-related 
8purpose to which it dedicates aviation fuel tax revenue, then 
9aviation fuel is excluded from the tax. The county must comply 
10with the certification requirements for airport-related 
11purposes under Section 2-22 of the Retailers' Occupation Tax 
12Act. For purposes of this Section, "airport-related purposes" 
13has the meaning ascribed in Section 6z-20.2 of the State 
14Finance Act. This exclusion for aviation fuel only applies for 
15so long as the revenue use requirements of 49 U.S.C. 47107(b) 
16and 49 U.S.C. 47133 are binding on the county. The changes made 
17to this Section by this amendatory Act of the 101st General 
18Assembly are a denial and limitation of home rule powers and 
19functions under subsection (g) of Section 6 of Article VII of 
20the Illinois Constitution. 
21 If, on January 1, 2025, a unit of local government has in 
22effect a tax under this Section, or if, after January 1, 2025, 
23a unit of local government imposes a tax under this Section, 
24then that tax applies to leases of tangible personal property 
25in effect, entered into, or renewed on or after that date in 
26the same manner as the tax under this Section and in accordance 
 
 
10300HB4951sam002- 631 -LRB103 38094 HLH 74177 a


1with the changes made by this amendatory Act of the 103rd 
2General Assembly. 
3 The tax imposed by a home rule county pursuant to this 
4Section and all civil penalties that may be assessed as an 
5incident thereof shall be collected and enforced by the State 
6Department of Revenue. The certificate of registration that is 
7issued by the Department to a retailer under the Retailers' 
8Occupation Tax Act shall permit the retailer to engage in a 
9business that is taxable under any ordinance or resolution 
10enacted pursuant to this Section without registering 
11separately with the Department under such ordinance or 
12resolution or under this Section. The Department shall have 
13full power to administer and enforce this Section; to collect 
14all taxes and penalties due hereunder; to dispose of taxes and 
15penalties so collected in the manner hereinafter provided; and 
16to determine all rights to credit memoranda arising on account 
17of the erroneous payment of tax or penalty hereunder. In the 
18administration of, and compliance with, this Section, the 
19Department and persons who are subject to this Section shall 
20have the same rights, remedies, privileges, immunities, powers 
21and duties, and be subject to the same conditions, 
22restrictions, limitations, penalties and definitions of terms, 
23and employ the same modes of procedure, as are prescribed in 
24Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 
252-65 (in respect to all provisions therein other than the 
26State rate of tax), 3 (except as to the disposition of taxes 
 
 
10300HB4951sam002- 632 -LRB103 38094 HLH 74177 a


1and penalties collected, and except that the retailer's 
2discount is not allowed for taxes paid on aviation fuel that 
3are subject to the revenue use requirements of 49 U.S.C. 
447107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 
55g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 
6and 13 of the Retailers' Occupation Tax Act and Section 3-7 of 
7the Uniform Penalty and Interest Act, as fully as if those 
8provisions were set forth herein.
9 No tax may be imposed by a home rule county pursuant to 
10this Section unless the county also imposes a tax at the same 
11rate pursuant to Section 5-1007.
12 Persons subject to any tax imposed pursuant to the 
13authority granted in this Section may reimburse themselves for 
14their seller's tax liability hereunder by separately stating 
15such tax as an additional charge, which charge may be stated in 
16combination, in a single amount, with State tax which sellers 
17are required to collect under the Use Tax Act, pursuant to such 
18bracket schedules as the Department may prescribe.
19 Whenever the Department determines that a refund should be 
20made under this Section to a claimant instead of issuing a 
21credit memorandum, the Department shall notify the State 
22Comptroller, who shall cause the order to be drawn for the 
23amount specified and to the person named in the notification 
24from the Department. The refund shall be paid by the State 
25Treasurer out of the home rule county retailers' occupation 
26tax fund or the Local Government Aviation Trust Fund, as 
 
 
10300HB4951sam002- 633 -LRB103 38094 HLH 74177 a


1appropriate.
2 Except as otherwise provided in this paragraph, the 
3Department shall forthwith pay over to the State Treasurer, ex 
4officio, as trustee, all taxes and penalties collected 
5hereunder for deposit into the Home Rule County Retailers' 
6Occupation Tax Fund. Taxes and penalties collected on aviation 
7fuel sold on or after December 1, 2019, shall be immediately 
8paid over by the Department to the State Treasurer, ex 
9officio, as trustee, for deposit into the Local Government 
10Aviation Trust Fund. The Department shall only pay moneys into 
11the Local Government Aviation Trust Fund under this Section 
12for so long as the revenue use requirements of 49 U.S.C. 
1347107(b) and 49 U.S.C. 47133 are binding on the county. 
14 As soon as possible after the first day of each month, 
15beginning January 1, 2011, upon certification of the 
16Department of Revenue, the Comptroller shall order 
17transferred, and the Treasurer shall transfer, to the STAR 
18Bonds Revenue Fund the local sales tax increment, as defined 
19in the Innovation Development and Economy Act, collected under 
20this Section during the second preceding calendar month for 
21sales within a STAR bond district.
22 After the monthly transfer to the STAR Bonds Revenue Fund, 
23on or before the 25th day of each calendar month, the 
24Department shall prepare and certify to the Comptroller the 
25disbursement of stated sums of money to named counties, the 
26counties to be those from which retailers have paid taxes or 
 
 
10300HB4951sam002- 634 -LRB103 38094 HLH 74177 a


1penalties hereunder to the Department during the second 
2preceding calendar month. The amount to be paid to each county 
3shall be the amount (not including credit memoranda and not 
4including taxes and penalties collected on aviation fuel sold 
5on or after December 1, 2019) collected hereunder during the 
6second preceding calendar month by the Department plus an 
7amount the Department determines is necessary to offset any 
8amounts that were erroneously paid to a different taxing body, 
9and not including an amount equal to the amount of refunds made 
10during the second preceding calendar month by the Department 
11on behalf of such county, and not including any amount which 
12the Department determines is necessary to offset any amounts 
13which were payable to a different taxing body but were 
14erroneously paid to the county, and not including any amounts 
15that are transferred to the STAR Bonds Revenue Fund, less 1.5% 
16of the remainder, which the Department shall transfer into the 
17Tax Compliance and Administration Fund. The Department, at the 
18time of each monthly disbursement to the counties, shall 
19prepare and certify to the State Comptroller the amount to be 
20transferred into the Tax Compliance and Administration Fund 
21under this Section. Within 10 days after receipt, by the 
22Comptroller, of the disbursement certification to the counties 
23and the Tax Compliance and Administration Fund provided for in 
24this Section to be given to the Comptroller by the Department, 
25the Comptroller shall cause the orders to be drawn for the 
26respective amounts in accordance with the directions contained 
 
 
10300HB4951sam002- 635 -LRB103 38094 HLH 74177 a


1in the certification. 
2 In addition to the disbursement required by the preceding 
3paragraph, an allocation shall be made in March of each year to 
4each county that received more than $500,000 in disbursements 
5under the preceding paragraph in the preceding calendar year. 
6The allocation shall be in an amount equal to the average 
7monthly distribution made to each such county under the 
8preceding paragraph during the preceding calendar year 
9(excluding the 2 months of highest receipts). The distribution 
10made in March of each year subsequent to the year in which an 
11allocation was made pursuant to this paragraph and the 
12preceding paragraph shall be reduced by the amount allocated 
13and disbursed under this paragraph in the preceding calendar 
14year. The Department shall prepare and certify to the 
15Comptroller for disbursement the allocations made in 
16accordance with this paragraph.
17 For the purpose of determining the local governmental unit 
18whose tax is applicable, a retail sale by a producer of coal or 
19other mineral mined in Illinois is a sale at retail at the 
20place where the coal or other mineral mined in Illinois is 
21extracted from the earth. This paragraph does not apply to 
22coal or other mineral when it is delivered or shipped by the 
23seller to the purchaser at a point outside Illinois so that the 
24sale is exempt under the United States Constitution as a sale 
25in interstate or foreign commerce.
26 Nothing in this Section shall be construed to authorize a 
 
 
10300HB4951sam002- 636 -LRB103 38094 HLH 74177 a


1county to impose a tax upon the privilege of engaging in any 
2business which under the Constitution of the United States may 
3not be made the subject of taxation by this State.
4 An ordinance or resolution imposing or discontinuing a tax 
5hereunder or effecting a change in the rate thereof shall be 
6adopted and a certified copy thereof filed with the Department 
7on or before the first day of June, whereupon the Department 
8shall proceed to administer and enforce this Section as of the 
9first day of September next following such adoption and 
10filing. Beginning January 1, 1992, an ordinance or resolution 
11imposing or discontinuing the tax hereunder or effecting a 
12change in the rate thereof shall be adopted and a certified 
13copy thereof filed with the Department on or before the first 
14day of July, whereupon the Department shall proceed to 
15administer and enforce this Section as of the first day of 
16October next following such adoption and filing. Beginning 
17January 1, 1993, an ordinance or resolution imposing or 
18discontinuing the tax hereunder or effecting a change in the 
19rate thereof shall be adopted and a certified copy thereof 
20filed with the Department on or before the first day of 
21October, whereupon the Department shall proceed to administer 
22and enforce this Section as of the first day of January next 
23following such adoption and filing. Beginning April 1, 1998, 
24an ordinance or resolution imposing or discontinuing the tax 
25hereunder or effecting a change in the rate thereof shall 
26either (i) be adopted and a certified copy thereof filed with 
 
 
10300HB4951sam002- 637 -LRB103 38094 HLH 74177 a


1the Department on or before the first day of April, whereupon 
2the Department shall proceed to administer and enforce this 
3Section as of the first day of July next following the adoption 
4and filing; or (ii) be adopted and a certified copy thereof 
5filed with the Department on or before the first day of 
6October, whereupon the Department shall proceed to administer 
7and enforce this Section as of the first day of January next 
8following the adoption and filing.
9 When certifying the amount of a monthly disbursement to a 
10county under this Section, the Department shall increase or 
11decrease such amount by an amount necessary to offset any 
12misallocation of previous disbursements. The offset amount 
13shall be the amount erroneously disbursed within the previous 
146 months from the time a misallocation is discovered.
15 This Section shall be known and may be cited as the Home 
16Rule County Retailers' Occupation Tax Law.
17(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
18101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

19 (55 ILCS 5/5-1006.5)
20 Sec. 5-1006.5. Special County Retailers' Occupation Tax 
21For Public Safety, Public Facilities, Mental Health, Substance 
22Abuse, or Transportation.
23 (a) The county board of any county may impose a tax upon 
24all persons engaged in the business of selling tangible 
25personal property, other than personal property titled or 
 
 
10300HB4951sam002- 638 -LRB103 38094 HLH 74177 a


1registered with an agency of this State's government, at 
2retail in the county on the gross receipts from the sales made 
3in the course of business to provide revenue to be used 
4exclusively for public safety, public facility, mental health, 
5substance abuse, or transportation purposes in that county 
6(except as otherwise provided in this Section), if a 
7proposition for the tax has been submitted to the electors of 
8that county and approved by a majority of those voting on the 
9question. If imposed, this tax shall be imposed only in 
10one-quarter percent increments. By resolution, the county 
11board may order the proposition to be submitted at any 
12election. If the tax is imposed for transportation purposes 
13for expenditures for public highways or as authorized under 
14the Illinois Highway Code, the county board must publish 
15notice of the existence of its long-range highway 
16transportation plan as required or described in Section 5-301 
17of the Illinois Highway Code and must make the plan publicly 
18available prior to approval of the ordinance or resolution 
19imposing the tax. If the tax is imposed for transportation 
20purposes for expenditures for passenger rail transportation, 
21the county board must publish notice of the existence of its 
22long-range passenger rail transportation plan and must make 
23the plan publicly available prior to approval of the ordinance 
24or resolution imposing the tax. 
25 If a tax is imposed for public facilities purposes, then 
26the name of the project may be included in the proposition at 
 
 
10300HB4951sam002- 639 -LRB103 38094 HLH 74177 a


1the discretion of the county board as determined in the 
2enabling resolution. For example, the "XXX Nursing Home" or 
3the "YYY Museum". 
4 The county clerk shall certify the question to the proper 
5election authority, who shall submit the proposition at an 
6election in accordance with the general election law.
7  (1) The proposition for public safety purposes shall 
8 be in substantially the following form:
9  "To pay for public safety purposes, shall (name of 
10 county) be authorized to impose an increase on its share 
11 of local sales taxes by (insert rate)?"
12  As additional information on the ballot below the 
13 question shall appear the following:
14  "This would mean that a consumer would pay an 
15 additional (insert amount) in sales tax for every $100 of 
16 tangible personal property bought at retail." 
17  The county board may also opt to establish a sunset 
18 provision at which time the additional sales tax would 
19 cease being collected, if not terminated earlier by a vote 
20 of the county board. If the county board votes to include a 
21 sunset provision, the proposition for public safety 
22 purposes shall be in substantially the following form:
23  "To pay for public safety purposes, shall (name of 
24 county) be authorized to impose an increase on its share 
25 of local sales taxes by (insert rate) for a period not to 
26 exceed (insert number of years)?"
 
 
10300HB4951sam002- 640 -LRB103 38094 HLH 74177 a


1  As additional information on the ballot below the 
2 question shall appear the following:
3  "This would mean that a consumer would pay an 
4 additional (insert amount) in sales tax for every $100 of 
5 tangible personal property bought at retail. If imposed, 
6 the additional tax would cease being collected at the end 
7 of (insert number of years), if not terminated earlier by 
8 a vote of the county board." 
9  For the purposes of the paragraph, "public safety 
10 purposes" means crime prevention, detention, fire 
11 fighting, police, medical, ambulance, or other emergency 
12 services.
13  Votes shall be recorded as "Yes" or "No".
14  Beginning on the January 1 or July 1, whichever is 
15 first, that occurs not less than 30 days after May 31, 2015 
16 (the effective date of Public Act 99-4), Adams County may 
17 impose a public safety retailers' occupation tax and 
18 service occupation tax at the rate of 0.25%, as provided 
19 in the referendum approved by the voters on April 7, 2015, 
20 notwithstanding the omission of the additional information 
21 that is otherwise required to be printed on the ballot 
22 below the question pursuant to this item (1). 
23  (2) The proposition for transportation purposes shall 
24 be in substantially the following form:
25  "To pay for improvements to roads and other 
26 transportation purposes, shall (name of county) be 
 
 
10300HB4951sam002- 641 -LRB103 38094 HLH 74177 a


1 authorized to impose an increase on its share of local 
2 sales taxes by (insert rate)?"
3  As additional information on the ballot below the 
4 question shall appear the following:
5  "This would mean that a consumer would pay an 
6 additional (insert amount) in sales tax for every $100 of 
7 tangible personal property bought at retail." 
8  The county board may also opt to establish a sunset 
9 provision at which time the additional sales tax would 
10 cease being collected, if not terminated earlier by a vote 
11 of the county board. If the county board votes to include a 
12 sunset provision, the proposition for transportation 
13 purposes shall be in substantially the following form:
14  "To pay for road improvements and other transportation 
15 purposes, shall (name of county) be authorized to impose 
16 an increase on its share of local sales taxes by (insert 
17 rate) for a period not to exceed (insert number of 
18 years)?"
19  As additional information on the ballot below the 
20 question shall appear the following:
21  "This would mean that a consumer would pay an 
22 additional (insert amount) in sales tax for every $100 of 
23 tangible personal property bought at retail. If imposed, 
24 the additional tax would cease being collected at the end 
25 of (insert number of years), if not terminated earlier by 
26 a vote of the county board." 
 
 
10300HB4951sam002- 642 -LRB103 38094 HLH 74177 a


1  For the purposes of this paragraph, transportation 
2 purposes means construction, maintenance, operation, and 
3 improvement of public highways, any other purpose for 
4 which a county may expend funds under the Illinois Highway 
5 Code, and passenger rail transportation.
6  The votes shall be recorded as "Yes" or "No".
7  (3) The proposition for public facilities purposes 
8 shall be in substantially the following form: 
9  "To pay for public facilities purposes, shall (name of 
10 county) be authorized to impose an increase on its share 
11 of local sales taxes by (insert rate)?" 
12  As additional information on the ballot below the 
13 question shall appear the following: 
14  "This would mean that a consumer would pay an 
15 additional (insert amount) in sales tax for every $100 of 
16 tangible personal property bought at retail." 
17  The county board may also opt to establish a sunset 
18 provision at which time the additional sales tax would 
19 cease being collected, if not terminated earlier by a vote 
20 of the county board. If the county board votes to include a 
21 sunset provision, the proposition for public facilities 
22 purposes shall be in substantially the following form: 
23  "To pay for public facilities purposes, shall (name of 
24 county) be authorized to impose an increase on its share 
25 of local sales taxes by (insert rate) for a period not to 
26 exceed (insert number of years)?" 
 
 
10300HB4951sam002- 643 -LRB103 38094 HLH 74177 a


1  As additional information on the ballot below the 
2 question shall appear the following: 
3  "This would mean that a consumer would pay an 
4 additional (insert amount) in sales tax for every $100 of 
5 tangible personal property bought at retail. If imposed, 
6 the additional tax would cease being collected at the end 
7 of (insert number of years), if not terminated earlier by 
8 a vote of the county board." 
9  For purposes of this Section, "public facilities 
10 purposes" means the acquisition, development, 
11 construction, reconstruction, rehabilitation, 
12 improvement, financing, architectural planning, and 
13 installation of capital facilities consisting of 
14 buildings, structures, and durable equipment and for the 
15 acquisition and improvement of real property and interest 
16 in real property required, or expected to be required, in 
17 connection with the public facilities, for use by the 
18 county for the furnishing of governmental services to its 
19 citizens, including, but not limited to, museums and 
20 nursing homes. 
21  The votes shall be recorded as "Yes" or "No". 
22  (4) The proposition for mental health purposes shall 
23 be in substantially the following form:
24  "To pay for mental health purposes, shall (name of 
25 county) be authorized to impose an increase on its share 
26 of local sales taxes by (insert rate)?"
 
 
10300HB4951sam002- 644 -LRB103 38094 HLH 74177 a


1  As additional information on the ballot below the 
2 question shall appear the following:
3  "This would mean that a consumer would pay an 
4 additional (insert amount) in sales tax for every $100 of 
5 tangible personal property bought at retail."
6  The county board may also opt to establish a sunset 
7 provision at which time the additional sales tax would 
8 cease being collected, if not terminated earlier by a vote 
9 of the county board. If the county board votes to include a 
10 sunset provision, the proposition for public facilities 
11 purposes shall be in substantially the following form:
12  "To pay for mental health purposes, shall (name of 
13 county) be authorized to impose an increase on its share 
14 of local sales taxes by (insert rate) for a period not to 
15 exceed (insert number of years)?"
16  As additional information on the ballot below the 
17 question shall appear the following:
18  "This would mean that a consumer would pay an 
19 additional (insert amount) in sales tax for every $100 of 
20 tangible personal property bought at retail. If imposed, 
21 the additional tax would cease being collected at the end 
22 of (insert number of years), if not terminated earlier by 
23 a vote of the county board."
24  The votes shall be recorded as "Yes" or "No". 
25  (5) The proposition for substance abuse purposes shall 
26 be in substantially the following form:
 
 
10300HB4951sam002- 645 -LRB103 38094 HLH 74177 a


1  "To pay for substance abuse purposes, shall (name of 
2 county) be authorized to impose an increase on its share 
3 of local sales taxes by (insert rate)?"
4  As additional information on the ballot below the 
5 question shall appear the following:
6  "This would mean that a consumer would pay an 
7 additional (insert amount) in sales tax for every $100 of 
8 tangible personal property bought at retail."
9  The county board may also opt to establish a sunset 
10 provision at which time the additional sales tax would 
11 cease being collected, if not terminated earlier by a vote 
12 of the county board. If the county board votes to include a 
13 sunset provision, the proposition for public facilities 
14 purposes shall be in substantially the following form:
15  "To pay for substance abuse purposes, shall (name of 
16 county) be authorized to impose an increase on its share 
17 of local sales taxes by (insert rate) for a period not to 
18 exceed (insert number of years)?"
19  As additional information on the ballot below the 
20 question shall appear the following:
21  "This would mean that a consumer would pay an 
22 additional (insert amount) in sales tax for every $100 of 
23 tangible personal property bought at retail. If imposed, 
24 the additional tax would cease being collected at the end 
25 of (insert number of years), if not terminated earlier by 
26 a vote of the county board."
 
 
10300HB4951sam002- 646 -LRB103 38094 HLH 74177 a


1  The votes shall be recorded as "Yes" or "No". 
2 If a majority of the electors voting on the proposition 
3vote in favor of it, the county may impose the tax. A county 
4may not submit more than one proposition authorized by this 
5Section to the electors at any one time.
6 This additional tax may not be imposed on tangible 
7personal property taxed at the 1% rate under the Retailers' 
8Occupation Tax Act (or at the 0% rate imposed under this 
9amendatory Act of the 102nd General Assembly). Beginning 
10December 1, 2019 and through December 31, 2020, this tax is not 
11imposed on sales of aviation fuel unless the tax revenue is 
12expended for airport-related purposes. If the county does not 
13have an airport-related purpose to which it dedicates aviation 
14fuel tax revenue, then aviation fuel is excluded from the tax. 
15The county must comply with the certification requirements for 
16airport-related purposes under Section 2-22 of the Retailers' 
17Occupation Tax Act. For purposes of this Section, 
18"airport-related purposes" has the meaning ascribed in Section 
196z-20.2 of the State Finance Act. Beginning January 1, 2021, 
20this tax is not imposed on sales of aviation fuel for so long 
21as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
22U.S.C. 47133 are binding on the county. The tax imposed by a 
23county under this Section and all civil penalties that may be 
24assessed as an incident of the tax shall be collected and 
25enforced by the Illinois Department of Revenue and deposited 
26into a special fund created for that purpose. The certificate 
 
 
10300HB4951sam002- 647 -LRB103 38094 HLH 74177 a


1of registration that is issued by the Department to a retailer 
2under the Retailers' Occupation Tax Act shall permit the 
3retailer to engage in a business that is taxable without 
4registering separately with the Department under an ordinance 
5or resolution under this Section. The Department has full 
6power to administer and enforce this Section, to collect all 
7taxes and penalties due under this Section, to dispose of 
8taxes and penalties so collected in the manner provided in 
9this Section, and to determine all rights to credit memoranda 
10arising on account of the erroneous payment of a tax or penalty 
11under this Section. In the administration of and compliance 
12with this Section, the Department and persons who are subject 
13to this Section shall (i) have the same rights, remedies, 
14privileges, immunities, powers, and duties, (ii) be subject to 
15the same conditions, restrictions, limitations, penalties, and 
16definitions of terms, and (iii) employ the same modes of 
17procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 
181f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all 
19provisions contained in those Sections other than the State 
20rate of tax), 2a, 2b, 2c, 3 (except provisions relating to 
21transaction returns and quarter monthly payments, and except 
22that the retailer's discount is not allowed for taxes paid on 
23aviation fuel that are deposited into the Local Government 
24Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 
255j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 
26of the Retailers' Occupation Tax Act and Section 3-7 of the 
 
 
10300HB4951sam002- 648 -LRB103 38094 HLH 74177 a


1Uniform Penalty and Interest Act as if those provisions were 
2set forth in this Section.
3 Persons subject to any tax imposed under the authority 
4granted in this Section may reimburse themselves for their 
5sellers' tax liability by separately stating the tax as an 
6additional charge, which charge may be stated in combination, 
7in a single amount, with State tax which sellers are required 
8to collect under the Use Tax Act, pursuant to such bracketed 
9schedules as the Department may prescribe.
10 Whenever the Department determines that a refund should be 
11made under this Section to a claimant instead of issuing a 
12credit memorandum, the Department shall notify the State 
13Comptroller, who shall cause the order to be drawn for the 
14amount specified and to the person named in the notification 
15from the Department. The refund shall be paid by the State 
16Treasurer out of the County Public Safety, Public Facilities, 
17Mental Health, Substance Abuse, or Transportation Retailers' 
18Occupation Tax Fund or the Local Government Aviation Trust 
19Fund, as appropriate. 
20 (b) If a tax has been imposed under subsection (a), a 
21service occupation tax shall also be imposed at the same rate 
22upon all persons engaged, in the county, in the business of 
23making sales of service, who, as an incident to making those 
24sales of service, transfer tangible personal property within 
25the county as an incident to a sale of service. This tax may 
26not be imposed on tangible personal property taxed at the 1% 
 
 
10300HB4951sam002- 649 -LRB103 38094 HLH 74177 a


1rate under the Service Occupation Tax Act (or at the 0% rate 
2imposed under this amendatory Act of the 102nd General 
3Assembly). Beginning December 1, 2019 and through December 31, 
42020, this tax is not imposed on sales of aviation fuel unless 
5the tax revenue is expended for airport-related purposes. If 
6the county does not have an airport-related purpose to which 
7it dedicates aviation fuel tax revenue, then aviation fuel is 
8excluded from the tax. The county must comply with the 
9certification requirements for airport-related purposes under 
10Section 2-22 of the Retailers' Occupation Tax Act. For 
11purposes of this Section, "airport-related purposes" has the 
12meaning ascribed in Section 6z-20.2 of the State Finance Act. 
13Beginning January 1, 2021, this tax is not imposed on sales of 
14aviation fuel for so long as the revenue use requirements of 49 
15U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. 
16The tax imposed under this subsection and all civil penalties 
17that may be assessed as an incident thereof shall be collected 
18and enforced by the Department of Revenue. The Department has 
19full power to administer and enforce this subsection; to 
20collect all taxes and penalties due hereunder; to dispose of 
21taxes and penalties so collected in the manner hereinafter 
22provided; and to determine all rights to credit memoranda 
23arising on account of the erroneous payment of tax or penalty 
24hereunder. In the administration of and compliance with this 
25subsection, the Department and persons who are subject to this 
26paragraph shall (i) have the same rights, remedies, 
 
 
10300HB4951sam002- 650 -LRB103 38094 HLH 74177 a


1privileges, immunities, powers, and duties, (ii) be subject to 
2the same conditions, restrictions, limitations, penalties, 
3exclusions, exemptions, and definitions of terms, and (iii) 
4employ the same modes of procedure as are prescribed in 
5Sections 2 (except that the reference to State in the 
6definition of supplier maintaining a place of business in this 
7State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in 
8respect to all provisions therein other than the State rate of 
9tax), 4 (except that the reference to the State shall be to the 
10county), 5, 7, 8 (except that the jurisdiction to which the tax 
11shall be a debt to the extent indicated in that Section 8 shall 
12be the county), 9 (except as to the disposition of taxes and 
13penalties collected, and except that the retailer's discount 
14is not allowed for taxes paid on aviation fuel that are 
15deposited into the Local Government Aviation Trust Fund), 10, 
1611, 12 (except the reference therein to Section 2b of the 
17Retailers' Occupation Tax Act), 13 (except that any reference 
18to the State shall mean the county), Section 15, 16, 17, 18, 
1919, and 20 of the Service Occupation Tax Act, and Section 3-7 
20of the Uniform Penalty and Interest Act, as fully as if those 
21provisions were set forth herein.
22 Persons subject to any tax imposed under the authority 
23granted in this subsection may reimburse themselves for their 
24serviceman's tax liability by separately stating the tax as an 
25additional charge, which charge may be stated in combination, 
26in a single amount, with State tax that servicemen are 
 
 
10300HB4951sam002- 651 -LRB103 38094 HLH 74177 a


1authorized to collect under the Service Use Tax Act, in 
2accordance with such bracket schedules as the Department may 
3prescribe.
4 Whenever the Department determines that a refund should be 
5made under this subsection to a claimant instead of issuing a 
6credit memorandum, the Department shall notify the State 
7Comptroller, who shall cause the warrant to be drawn for the 
8amount specified, and to the person named, in the notification 
9from the Department. The refund shall be paid by the State 
10Treasurer out of the County Public Safety, Public Facilities, 
11Mental Health, Substance Abuse, or Transportation Retailers' 
12Occupation Fund or the Local Government Aviation Trust Fund, 
13as appropriate.
14 Nothing in this subsection shall be construed to authorize 
15the county to impose a tax upon the privilege of engaging in 
16any business which under the Constitution of the United States 
17may not be made the subject of taxation by the State.
18 (b-5) If, on January 1, 2025, a unit of local government 
19has in effect a tax under this Section, or if, after January 1, 
202025, a unit of local government imposes a tax under this 
21Section, then that tax applies to leases of tangible personal 
22property in effect, entered into, or renewed on or after that 
23date in the same manner as the tax under this Section and in 
24accordance with the changes made by this amendatory Act of the 
25103rd General Assembly. 
26 (c) Except as otherwise provided in this paragraph, the 
 
 
10300HB4951sam002- 652 -LRB103 38094 HLH 74177 a


1Department shall immediately pay over to the State Treasurer, 
2ex officio, as trustee, all taxes and penalties collected 
3under this Section to be deposited into the County Public 
4Safety, Public Facilities, Mental Health, Substance Abuse, or 
5Transportation Retailers' Occupation Tax Fund, which shall be 
6an unappropriated trust fund held outside of the State 
7treasury. Taxes and penalties collected on aviation fuel sold 
8on or after December 1, 2019 and through December 31, 2020, 
9shall be immediately paid over by the Department to the State 
10Treasurer, ex officio, as trustee, for deposit into the Local 
11Government Aviation Trust Fund. The Department shall only pay 
12moneys into the Local Government Aviation Trust Fund under 
13this Act for so long as the revenue use requirements of 49 
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. 
15 As soon as possible after the first day of each month, 
16beginning January 1, 2011, upon certification of the 
17Department of Revenue, the Comptroller shall order 
18transferred, and the Treasurer shall transfer, to the STAR 
19Bonds Revenue Fund the local sales tax increment, as defined 
20in the Innovation Development and Economy Act, collected under 
21this Section during the second preceding calendar month for 
22sales within a STAR bond district. 
23 After the monthly transfer to the STAR Bonds Revenue Fund, 
24on or before the 25th day of each calendar month, the 
25Department shall prepare and certify to the Comptroller the 
26disbursement of stated sums of money to the counties from 
 
 
10300HB4951sam002- 653 -LRB103 38094 HLH 74177 a


1which retailers have paid taxes or penalties to the Department 
2during the second preceding calendar month. The amount to be 
3paid to each county, and deposited by the county into its 
4special fund created for the purposes of this Section, shall 
5be the amount (not including credit memoranda and not 
6including taxes and penalties collected on aviation fuel sold 
7on or after December 1, 2019 and through December 31, 2020) 
8collected under this Section during the second preceding 
9calendar month by the Department plus an amount the Department 
10determines is necessary to offset any amounts that were 
11erroneously paid to a different taxing body, and not including 
12(i) an amount equal to the amount of refunds made during the 
13second preceding calendar month by the Department on behalf of 
14the county, (ii) any amount that the Department determines is 
15necessary to offset any amounts that were payable to a 
16different taxing body but were erroneously paid to the county, 
17(iii) any amounts that are transferred to the STAR Bonds 
18Revenue Fund, and (iv) 1.5% of the remainder, which shall be 
19transferred into the Tax Compliance and Administration Fund. 
20The Department, at the time of each monthly disbursement to 
21the counties, shall prepare and certify to the State 
22Comptroller the amount to be transferred into the Tax 
23Compliance and Administration Fund under this subsection. 
24Within 10 days after receipt by the Comptroller of the 
25disbursement certification to the counties and the Tax 
26Compliance and Administration Fund provided for in this 
 
 
10300HB4951sam002- 654 -LRB103 38094 HLH 74177 a


1Section to be given to the Comptroller by the Department, the 
2Comptroller shall cause the orders to be drawn for the 
3respective amounts in accordance with directions contained in 
4the certification.
5 In addition to the disbursement required by the preceding 
6paragraph, an allocation shall be made in March of each year to 
7each county that received more than $500,000 in disbursements 
8under the preceding paragraph in the preceding calendar year. 
9The allocation shall be in an amount equal to the average 
10monthly distribution made to each such county under the 
11preceding paragraph during the preceding calendar year 
12(excluding the 2 months of highest receipts). The distribution 
13made in March of each year subsequent to the year in which an 
14allocation was made pursuant to this paragraph and the 
15preceding paragraph shall be reduced by the amount allocated 
16and disbursed under this paragraph in the preceding calendar 
17year. The Department shall prepare and certify to the 
18Comptroller for disbursement the allocations made in 
19accordance with this paragraph.
20 (d) For the purpose of determining the local governmental 
21unit whose tax is applicable, a retail sale by a producer of 
22coal or another mineral mined in Illinois is a sale at retail 
23at the place where the coal or other mineral mined in Illinois 
24is extracted from the earth. This paragraph does not apply to 
25coal or another mineral when it is delivered or shipped by the 
26seller to the purchaser at a point outside Illinois so that the 
 
 
10300HB4951sam002- 655 -LRB103 38094 HLH 74177 a


1sale is exempt under the United States Constitution as a sale 
2in interstate or foreign commerce.
3 (e) Nothing in this Section shall be construed to 
4authorize a county to impose a tax upon the privilege of 
5engaging in any business that under the Constitution of the 
6United States may not be made the subject of taxation by this 
7State.
8 (e-5) If a county imposes a tax under this Section, the 
9county board may, by ordinance, discontinue or lower the rate 
10of the tax. If the county board lowers the tax rate or 
11discontinues the tax, a referendum must be held in accordance 
12with subsection (a) of this Section in order to increase the 
13rate of the tax or to reimpose the discontinued tax.
14 (f) Beginning April 1, 1998 and through December 31, 2013, 
15the results of any election authorizing a proposition to 
16impose a tax under this Section or effecting a change in the 
17rate of tax, or any ordinance lowering the rate or 
18discontinuing the tax, shall be certified by the county clerk 
19and filed with the Illinois Department of Revenue either (i) 
20on or before the first day of April, whereupon the Department 
21shall proceed to administer and enforce the tax as of the first 
22day of July next following the filing; or (ii) on or before the 
23first day of October, whereupon the Department shall proceed 
24to administer and enforce the tax as of the first day of 
25January next following the filing.
26 Beginning January 1, 2014, the results of any election 
 
 
10300HB4951sam002- 656 -LRB103 38094 HLH 74177 a


1authorizing a proposition to impose a tax under this Section 
2or effecting an increase in the rate of tax, along with the 
3ordinance adopted to impose the tax or increase the rate of the 
4tax, or any ordinance adopted to lower the rate or discontinue 
5the tax, shall be certified by the county clerk and filed with 
6the Illinois Department of Revenue either (i) on or before the 
7first day of May, whereupon the Department shall proceed to 
8administer and enforce the tax as of the first day of July next 
9following the adoption and filing; or (ii) on or before the 
10first day of October, whereupon the Department shall proceed 
11to administer and enforce the tax as of the first day of 
12January next following the adoption and filing. 
13 (g) When certifying the amount of a monthly disbursement 
14to a county under this Section, the Department shall increase 
15or decrease the amounts by an amount necessary to offset any 
16miscalculation of previous disbursements. The offset amount 
17shall be the amount erroneously disbursed within the previous 
186 months from the time a miscalculation is discovered.
19 (g-5) Every county authorized to levy a tax under this 
20Section shall, before it levies such tax, establish a 7-member 
21mental health board, which shall have the same powers and 
22duties and be constituted in the same manner as a community 
23mental health board established under the Community Mental 
24Health Act. Proceeds of the tax under this Section that are 
25earmarked for mental health or substance abuse purposes shall 
26be deposited into a special county occupation tax fund for 
 
 
10300HB4951sam002- 657 -LRB103 38094 HLH 74177 a


1mental health and substance abuse. The 7-member mental health 
2board established under this subsection shall administer the 
3special county occupation tax fund for mental health and 
4substance abuse in the same manner as the community mental 
5health board administers the community mental health fund 
6under the Community Mental Health Act. 
7 (h) This Section may be cited as the "Special County 
8Occupation Tax For Public Safety, Public Facilities, Mental 
9Health, Substance Abuse, or Transportation Law".
10 (i) For purposes of this Section, "public safety" 
11includes, but is not limited to, crime prevention, detention, 
12fire fighting, police, medical, ambulance, or other emergency 
13services. The county may share tax proceeds received under 
14this Section for public safety purposes, including proceeds 
15received before August 4, 2009 (the effective date of Public 
16Act 96-124), with any fire protection district located in the 
17county. For the purposes of this Section, "transportation" 
18includes, but is not limited to, the construction, 
19maintenance, operation, and improvement of public highways, 
20any other purpose for which a county may expend funds under the 
21Illinois Highway Code, and passenger rail transportation. For 
22the purposes of this Section, "public facilities purposes" 
23includes, but is not limited to, the acquisition, development, 
24construction, reconstruction, rehabilitation, improvement, 
25financing, architectural planning, and installation of capital 
26facilities consisting of buildings, structures, and durable 
 
 
10300HB4951sam002- 658 -LRB103 38094 HLH 74177 a


1equipment and for the acquisition and improvement of real 
2property and interest in real property required, or expected 
3to be required, in connection with the public facilities, for 
4use by the county for the furnishing of governmental services 
5to its citizens, including, but not limited to, museums and 
6nursing homes.
7 (j) The Department may promulgate rules to implement 
8Public Act 95-1002 only to the extent necessary to apply the 
9existing rules for the Special County Retailers' Occupation 
10Tax for Public Safety to this new purpose for public 
11facilities. 
12(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
13101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff. 
141-1-22; 102-700, eff. 4-19-22.)

15 (55 ILCS 5/5-1006.7)
16 Sec. 5-1006.7. School facility and resources occupation 
17taxes.
18 (a) In any county, a tax shall be imposed upon all persons 
19engaged in the business of selling tangible personal property, 
20other than personal property titled or registered with an 
21agency of this State's government, at retail in the county on 
22the gross receipts from the sales made in the course of 
23business to provide revenue to be used exclusively for (i) 
24school facility purposes (except as otherwise provided in this 
25Section), (ii) school resource officers and mental health 
 
 
10300HB4951sam002- 659 -LRB103 38094 HLH 74177 a


1professionals, or (iii) school facility purposes, school 
2resource officers, and mental health professionals if a 
3proposition for the tax has been submitted to the electors of 
4that county and approved by a majority of those voting on the 
5question as provided in subsection (c). The tax under this 
6Section shall be imposed only in one-quarter percent 
7increments and may not exceed 1%.
8 This additional tax may not be imposed on tangible 
9personal property taxed at the 1% rate under the Retailers' 
10Occupation Tax Act (or at the 0% rate imposed under Public Act 
11102-700). Beginning December 1, 2019 and through December 31, 
122020, this tax is not imposed on sales of aviation fuel unless 
13the tax revenue is expended for airport-related purposes. If 
14the county does not have an airport-related purpose to which 
15it dedicates aviation fuel tax revenue, then aviation fuel is 
16excluded from the tax. The county must comply with the 
17certification requirements for airport-related purposes under 
18Section 2-22 of the Retailers' Occupation Tax Act. For 
19purposes of this Section, "airport-related purposes" has the 
20meaning ascribed in Section 6z-20.2 of the State Finance Act. 
21Beginning January 1, 2021, this tax is not imposed on sales of 
22aviation fuel for so long as the revenue use requirements of 49 
23U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. 
24The Department of Revenue has full power to administer and 
25enforce this subsection, to collect all taxes and penalties 
26due under this subsection, to dispose of taxes and penalties 
 
 
10300HB4951sam002- 660 -LRB103 38094 HLH 74177 a


1so collected in the manner provided in this subsection, and to 
2determine all rights to credit memoranda arising on account of 
3the erroneous payment of a tax or penalty under this 
4subsection. The Department shall deposit all taxes and 
5penalties collected under this subsection into a special fund 
6created for that purpose.
7 In the administration of and compliance with this 
8subsection, the Department and persons who are subject to this 
9subsection (i) have the same rights, remedies, privileges, 
10immunities, powers, and duties, (ii) are subject to the same 
11conditions, restrictions, limitations, penalties, and 
12definitions of terms, and (iii) shall employ the same modes of 
13procedure as are set forth in Sections 1 through 1o, 2 through 
142-70 (in respect to all provisions contained in those Sections 
15other than the State rate of tax), 2a through 2h, 3 (except as 
16to the disposition of taxes and penalties collected, and 
17except that the retailer's discount is not allowed for taxes 
18paid on aviation fuel that are subject to the revenue use 
19requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 
205a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 
216d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' 
22Occupation Tax Act and all provisions of the Uniform Penalty 
23and Interest Act as if those provisions were set forth in this 
24subsection.
25 The certificate of registration that is issued by the 
26Department to a retailer under the Retailers' Occupation Tax 
 
 
10300HB4951sam002- 661 -LRB103 38094 HLH 74177 a


1Act permits the retailer to engage in a business that is 
2taxable without registering separately with the Department 
3under an ordinance or resolution under this subsection.
4 Persons subject to any tax imposed under the authority 
5granted in this subsection may reimburse themselves for their 
6seller's tax liability by separately stating that tax as an 
7additional charge, which may be stated in combination, in a 
8single amount, with State tax that sellers are required to 
9collect under the Use Tax Act, pursuant to any bracketed 
10schedules set forth by the Department.
11 (b) If a tax has been imposed under subsection (a), then a 
12service occupation tax must also be imposed at the same rate 
13upon all persons engaged, in the county, in the business of 
14making sales of service, who, as an incident to making those 
15sales of service, transfer tangible personal property within 
16the county as an incident to a sale of service.
17 This tax may not be imposed on tangible personal property 
18taxed at the 1% rate under the Service Occupation Tax Act (or 
19at the 0% rate imposed under Public Act 102-700). Beginning 
20December 1, 2019 and through December 31, 2020, this tax is not 
21imposed on sales of aviation fuel unless the tax revenue is 
22expended for airport-related purposes. If the county does not 
23have an airport-related purpose to which it dedicates aviation 
24fuel tax revenue, then aviation fuel is excluded from the tax. 
25The county must comply with the certification requirements for 
26airport-related purposes under Section 2-22 of the Retailers' 
 
 
10300HB4951sam002- 662 -LRB103 38094 HLH 74177 a


1Occupation Tax Act. For purposes of this Section, 
2"airport-related purposes" has the meaning ascribed in Section 
36z-20.2 of the State Finance Act. Beginning January 1, 2021, 
4this tax is not imposed on sales of aviation fuel for so long 
5as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
6U.S.C. 47133 are binding on the county.
7 The tax imposed under this subsection and all civil 
8penalties that may be assessed as an incident thereof shall be 
9collected and enforced by the Department and deposited into a 
10special fund created for that purpose. The Department has full 
11power to administer and enforce this subsection, to collect 
12all taxes and penalties due under this subsection, to dispose 
13of taxes and penalties so collected in the manner provided in 
14this subsection, and to determine all rights to credit 
15memoranda arising on account of the erroneous payment of a tax 
16or penalty under this subsection.
17 In the administration of and compliance with this 
18subsection, the Department and persons who are subject to this 
19subsection shall (i) have the same rights, remedies, 
20privileges, immunities, powers and duties, (ii) be subject to 
21the same conditions, restrictions, limitations, penalties and 
22definition of terms, and (iii) employ the same modes of 
23procedure as are set forth in Sections 2 (except that that 
24reference to State in the definition of supplier maintaining a 
25place of business in this State means the county), 2a through 
262d, 3 through 3-50 (in respect to all provisions contained in 
 
 
10300HB4951sam002- 663 -LRB103 38094 HLH 74177 a


1those Sections other than the State rate of tax), 4 (except 
2that the reference to the State shall be to the county), 5, 7, 
38 (except that the jurisdiction to which the tax is a debt to 
4the extent indicated in that Section 8 is the county), 9 
5(except as to the disposition of taxes and penalties 
6collected, and except that the retailer's discount is not 
7allowed for taxes paid on aviation fuel that are subject to the 
8revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
947133), 10, 11, 12 (except the reference therein to Section 2b 
10of the Retailers' Occupation Tax Act), 13 (except that any 
11reference to the State means the county), 15, 16, 17, 18, 19, 
12and 20 of the Service Occupation Tax Act and all provisions of 
13the Uniform Penalty and Interest Act, as fully as if those 
14provisions were set forth herein.
15 Persons subject to any tax imposed under the authority 
16granted in this subsection may reimburse themselves for their 
17serviceman's tax liability by separately stating the tax as an 
18additional charge, which may be stated in combination, in a 
19single amount, with State tax that servicemen are authorized 
20to collect under the Service Use Tax Act, pursuant to any 
21bracketed schedules set forth by the Department.
22 (b-5) If, on January 1, 2025, a unit of local government 
23has in effect a tax under this Section, or if, after January 1, 
242025, a unit of local government imposes a tax under this 
25Section, then that tax applies to leases of tangible personal 
26property in effect, entered into, or renewed on or after that 
 
 
10300HB4951sam002- 664 -LRB103 38094 HLH 74177 a


1date in the same manner as the tax under this Section and in 
2accordance with the changes made by this amendatory Act of the 
3103rd General Assembly. 
4 (c) The tax under this Section may not be imposed until the 
5question of imposing the tax has been submitted to the 
6electors of the county at a regular election and approved by a 
7majority of the electors voting on the question. For all 
8regular elections held prior to August 23, 2011 (the effective 
9date of Public Act 97-542), upon a resolution by the county 
10board or a resolution by school district boards that represent 
11at least 51% of the student enrollment within the county, the 
12county board must certify the question to the proper election 
13authority in accordance with the Election Code.
14 For all regular elections held prior to August 23, 2011 
15(the effective date of Public Act 97-542), the election 
16authority must submit the question in substantially the 
17following form:
18  Shall (name of county) be authorized to impose a 
19 retailers' occupation tax and a service occupation tax 
20 (commonly referred to as a "sales tax") at a rate of 
21 (insert rate) to be used exclusively for school facility 
22 purposes?
23 The election authority must record the votes as "Yes" or 
24"No".
25 If a majority of the electors voting on the question vote 
26in the affirmative, then the county may, thereafter, impose 
 
 
10300HB4951sam002- 665 -LRB103 38094 HLH 74177 a


1the tax.
2 For all regular elections held on or after August 23, 2011 
3(the effective date of Public Act 97-542), the regional 
4superintendent of schools for the county must, upon receipt of 
5a resolution or resolutions of school district boards that 
6represent more than 50% of the student enrollment within the 
7county, certify the question to the proper election authority 
8for submission to the electors of the county at the next 
9regular election at which the question lawfully may be 
10submitted to the electors, all in accordance with the Election 
11Code.
12 For all regular elections held on or after August 23, 2011 
13(the effective date of Public Act 97-542) and before August 
1423, 2019 (the effective date of Public Act 101-455), the 
15election authority must submit the question in substantially 
16the following form:
17  Shall a retailers' occupation tax and a service 
18 occupation tax (commonly referred to as a "sales tax") be 
19 imposed in (name of county) at a rate of (insert rate) to 
20 be used exclusively for school facility purposes?
21 The election authority must record the votes as "Yes" or 
22"No".
23 If a majority of the electors voting on the question vote 
24in the affirmative, then the tax shall be imposed at the rate 
25set forth in the question. 
26 For all regular elections held on or after August 23, 2019 
 
 
10300HB4951sam002- 666 -LRB103 38094 HLH 74177 a


1(the effective date of Public Act 101-455), the election 
2authority must submit the question as follows:
3  (1) If the referendum is to expand the use of revenues 
4 from a currently imposed tax exclusively for school 
5 facility purposes to include school resource officers and 
6 mental health professionals, the question shall be in 
7 substantially the following form:
8   In addition to school facility purposes, shall 
9 (name of county) school districts be authorized to use 
10 revenues from the tax commonly referred to as the 
11 school facility sales tax that is currently imposed in 
12 (name of county) at a rate of (insert rate) for school 
13 resource officers and mental health professionals?
14  (2) If the referendum is to increase the rate of a tax 
15 currently imposed exclusively for school facility purposes 
16 at less than 1% and dedicate the additional revenues for 
17 school resource officers and mental health professionals, 
18 the question shall be in substantially the following form:
19   Shall the tax commonly referred to as the school 
20 facility sales tax that is currently imposed in (name 
21 of county) at the rate of (insert rate) be increased to 
22 a rate of (insert rate) with the additional revenues 
23 used exclusively for school resource officers and 
24 mental health professionals?
25  (3) If the referendum is to impose a tax in a county 
26 that has not previously imposed a tax under this Section 
 
 
10300HB4951sam002- 667 -LRB103 38094 HLH 74177 a


1 exclusively for school facility purposes, the question 
2 shall be in substantially the following form:
3   Shall a retailers' occupation tax and a service 
4 occupation tax (commonly referred to as a sales tax) 
5 be imposed in (name of county) at a rate of (insert 
6 rate) to be used exclusively for school facility 
7 purposes?
8  (4) If the referendum is to impose a tax in a county 
9 that has not previously imposed a tax under this Section 
10 exclusively for school resource officers and mental health 
11 professionals, the question shall be in substantially the 
12 following form:
13   Shall a retailers' occupation tax and a service 
14 occupation tax (commonly referred to as a sales tax) 
15 be imposed in (name of county) at a rate of (insert 
16 rate) to be used exclusively for school resource 
17 officers and mental health professionals?
18  (5) If the referendum is to impose a tax in a county 
19 that has not previously imposed a tax under this Section 
20 exclusively for school facility purposes, school resource 
21 officers, and mental health professionals, the question 
22 shall be in substantially the following form:
23   Shall a retailers' occupation tax and a service 
24 occupation tax (commonly referred to as a sales tax) 
25 be imposed in (name of county) at a rate of (insert 
26 rate) to be used exclusively for school facility 
 
 
10300HB4951sam002- 668 -LRB103 38094 HLH 74177 a


1 purposes, school resource officers, and mental health 
2 professionals?
3 The election authority must record the votes as "Yes" or 
4"No".
5 If a majority of the electors voting on the question vote 
6in the affirmative, then the tax shall be imposed at the rate 
7set forth in the question.
8 For the purposes of this subsection (c), "enrollment" 
9means the head count of the students residing in the county on 
10the last school day of September of each year, which must be 
11reported on the Illinois State Board of Education Public 
12School Fall Enrollment/Housing Report. 
13 (d) Except as otherwise provided, the Department shall 
14immediately pay over to the State Treasurer, ex officio, as 
15trustee, all taxes and penalties collected under this Section 
16to be deposited into the School Facility Occupation Tax Fund, 
17which shall be an unappropriated trust fund held outside the 
18State treasury. Taxes and penalties collected on aviation fuel 
19sold on or after December 1, 2019 and through December 31, 
202020, shall be immediately paid over by the Department to the 
21State Treasurer, ex officio, as trustee, for deposit into the 
22Local Government Aviation Trust Fund. The Department shall 
23only pay moneys into the Local Government Aviation Trust Fund 
24under this Section for so long as the revenue use requirements 
25of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
26county.
 
 
10300HB4951sam002- 669 -LRB103 38094 HLH 74177 a


1 On or before the 25th day of each calendar month, the 
2Department shall prepare and certify to the Comptroller the 
3disbursement of stated sums of money to the regional 
4superintendents of schools in counties from which retailers or 
5servicemen have paid taxes or penalties to the Department 
6during the second preceding calendar month. The amount to be 
7paid to each regional superintendent of schools and disbursed 
8to him or her in accordance with Section 3-14.31 of the School 
9Code, is equal to the amount (not including credit memoranda 
10and not including taxes and penalties collected on aviation 
11fuel sold on or after December 1, 2019 and through December 31, 
122020) collected from the county under this Section during the 
13second preceding calendar month by the Department, (i) less 2% 
14of that amount (except the amount collected on aviation fuel 
15sold on or after December 1, 2019 and through December 31, 
162020), of which 50% shall be deposited into the Tax Compliance 
17and Administration Fund and shall be used by the Department, 
18subject to appropriation, to cover the costs of the Department 
19in administering and enforcing the provisions of this Section, 
20on behalf of the county, and 50% shall be distributed to the 
21regional superintendent of schools to cover the costs in 
22administering and enforcing the provisions of this Section; 
23(ii) plus an amount that the Department determines is 
24necessary to offset any amounts that were erroneously paid to 
25a different taxing body; (iii) less an amount equal to the 
26amount of refunds made during the second preceding calendar 
 
 
10300HB4951sam002- 670 -LRB103 38094 HLH 74177 a


1month by the Department on behalf of the county; and (iv) less 
2any amount that the Department determines is necessary to 
3offset any amounts that were payable to a different taxing 
4body but were erroneously paid to the county. When certifying 
5the amount of a monthly disbursement to a regional 
6superintendent of schools under this Section, the Department 
7shall increase or decrease the amounts by an amount necessary 
8to offset any miscalculation of previous disbursements within 
9the previous 6 months from the time a miscalculation is 
10discovered.
11 Within 10 days after receipt by the Comptroller from the 
12Department of the disbursement certification to the regional 
13superintendents of the schools provided for in this Section, 
14the Comptroller shall cause the orders to be drawn for the 
15respective amounts in accordance with directions contained in 
16the certification.
17 If the Department determines that a refund should be made 
18under this Section to a claimant instead of issuing a credit 
19memorandum, then the Department shall notify the Comptroller, 
20who shall cause the order to be drawn for the amount specified 
21and to the person named in the notification from the 
22Department. The refund shall be paid by the Treasurer out of 
23the School Facility Occupation Tax Fund or the Local 
24Government Aviation Trust Fund, as appropriate. 
25 (e) For the purposes of determining the local governmental 
26unit whose tax is applicable, a retail sale by a producer of 
 
 
10300HB4951sam002- 671 -LRB103 38094 HLH 74177 a


1coal or another mineral mined in Illinois is a sale at retail 
2at the place where the coal or other mineral mined in Illinois 
3is extracted from the earth. This subsection does not apply to 
4coal or another mineral when it is delivered or shipped by the 
5seller to the purchaser at a point outside Illinois so that the 
6sale is exempt under the United States Constitution as a sale 
7in interstate or foreign commerce.
8 (f) Nothing in this Section may be construed to authorize 
9a tax to be imposed upon the privilege of engaging in any 
10business that under the Constitution of the United States may 
11not be made the subject of taxation by this State.
12 (g) If a county board imposes a tax under this Section 
13pursuant to a referendum held before August 23, 2011 (the 
14effective date of Public Act 97-542) at a rate below the rate 
15set forth in the question approved by a majority of electors of 
16that county voting on the question as provided in subsection 
17(c), then the county board may, by ordinance, increase the 
18rate of the tax up to the rate set forth in the question 
19approved by a majority of electors of that county voting on the 
20question as provided in subsection (c). If a county board 
21imposes a tax under this Section pursuant to a referendum held 
22before August 23, 2011 (the effective date of Public Act 
2397-542), then the board may, by ordinance, discontinue or 
24reduce the rate of the tax. If a tax is imposed under this 
25Section pursuant to a referendum held on or after August 23, 
262011 (the effective date of Public Act 97-542) and before 
 
 
10300HB4951sam002- 672 -LRB103 38094 HLH 74177 a


1August 23, 2019 (the effective date of Public Act 101-455), 
2then the county board may reduce or discontinue the tax, but 
3only in accordance with subsection (h-5) of this Section. If a 
4tax is imposed under this Section pursuant to a referendum 
5held on or after August 23, 2019 (the effective date of Public 
6Act 101-455), then the county board may reduce or discontinue 
7the tax, but only in accordance with subsection (h-10). If, 
8however, a school board issues bonds that are secured by the 
9proceeds of the tax under this Section, then the county board 
10may not reduce the tax rate or discontinue the tax if that rate 
11reduction or discontinuance would adversely affect the school 
12board's ability to pay the principal and interest on those 
13bonds as they become due or necessitate the extension of 
14additional property taxes to pay the principal and interest on 
15those bonds. If the county board reduces the tax rate or 
16discontinues the tax, then a referendum must be held in 
17accordance with subsection (c) of this Section in order to 
18increase the rate of the tax or to reimpose the discontinued 
19tax. 
20 Until January 1, 2014, the results of any election that 
21imposes, reduces, or discontinues a tax under this Section 
22must be certified by the election authority, and any ordinance 
23that increases or lowers the rate or discontinues the tax must 
24be certified by the county clerk and, in each case, filed with 
25the Illinois Department of Revenue either (i) on or before the 
26first day of April, whereupon the Department shall proceed to 
 
 
10300HB4951sam002- 673 -LRB103 38094 HLH 74177 a


1administer and enforce the tax or change in the rate as of the 
2first day of July next following the filing; or (ii) on or 
3before the first day of October, whereupon the Department 
4shall proceed to administer and enforce the tax or change in 
5the rate as of the first day of January next following the 
6filing.
7 Beginning January 1, 2014, the results of any election 
8that imposes, reduces, or discontinues a tax under this 
9Section must be certified by the election authority, and any 
10ordinance that increases or lowers the rate or discontinues 
11the tax must be certified by the county clerk and, in each 
12case, filed with the Illinois Department of Revenue either (i) 
13on or before the first day of May, whereupon the Department 
14shall proceed to administer and enforce the tax or change in 
15the rate as of the first day of July next following the filing; 
16or (ii) on or before the first day of October, whereupon the 
17Department shall proceed to administer and enforce the tax or 
18change in the rate as of the first day of January next 
19following the filing. 
20 (h) For purposes of this Section, "school facility 
21purposes" means (i) the acquisition, development, 
22construction, reconstruction, rehabilitation, improvement, 
23financing, architectural planning, and installation of capital 
24facilities consisting of buildings, structures, and durable 
25equipment and for the acquisition and improvement of real 
26property and interest in real property required, or expected 
 
 
10300HB4951sam002- 674 -LRB103 38094 HLH 74177 a


1to be required, in connection with the capital facilities and 
2(ii) the payment of bonds or other obligations heretofore or 
3hereafter issued, including bonds or other obligations 
4heretofore or hereafter issued to refund or to continue to 
5refund bonds or other obligations issued, for school facility 
6purposes, provided that the taxes levied to pay those bonds 
7are abated by the amount of the taxes imposed under this 
8Section that are used to pay those bonds. "School facility 
9purposes" also includes fire prevention, safety, energy 
10conservation, accessibility, school security, and specified 
11repair purposes set forth under Section 17-2.11 of the School 
12Code.
13 (h-5) A county board in a county where a tax has been 
14imposed under this Section pursuant to a referendum held on or 
15after August 23, 2011 (the effective date of Public Act 
1697-542) and before August 23, 2019 (the effective date of 
17Public Act 101-455) may, by ordinance or resolution, submit to 
18the voters of the county the question of reducing or 
19discontinuing the tax. In the ordinance or resolution, the 
20county board shall certify the question to the proper election 
21authority in accordance with the Election Code. The election 
22authority must submit the question in substantially the 
23following form:
24  Shall the school facility retailers' occupation tax 
25 and service occupation tax (commonly referred to as the 
26 "school facility sales tax") currently imposed in (name of 
 
 
10300HB4951sam002- 675 -LRB103 38094 HLH 74177 a


1 county) at a rate of (insert rate) be (reduced to (insert 
2 rate))(discontinued)?
3If a majority of the electors voting on the question vote in 
4the affirmative, then, subject to the provisions of subsection 
5(g) of this Section, the tax shall be reduced or discontinued 
6as set forth in the question. 
7 (h-10) A county board in a county where a tax has been 
8imposed under this Section pursuant to a referendum held on or 
9after August 23, 2019 (the effective date of Public Act 
10101-455) may, by ordinance or resolution, submit to the voters 
11of the county the question of reducing or discontinuing the 
12tax. In the ordinance or resolution, the county board shall 
13certify the question to the proper election authority in 
14accordance with the Election Code. The election authority must 
15submit the question in substantially the following form:
16  Shall the school facility and resources retailers' 
17 occupation tax and service occupation tax (commonly 
18 referred to as the school facility and resources sales 
19 tax) currently imposed in (name of county) at a rate of 
20 (insert rate) be (reduced to (insert rate)) 
21 (discontinued)?
22 The election authority must record the votes as "Yes" or 
23"No". 
24 If a majority of the electors voting on the question vote 
25in the affirmative, then, subject to the provisions of 
26subsection (g) of this Section, the tax shall be reduced or 
 
 
10300HB4951sam002- 676 -LRB103 38094 HLH 74177 a


1discontinued as set forth in the question. 
2 (i) This Section does not apply to Cook County.
3 (j) This Section may be cited as the County School 
4Facility and Resources Occupation Tax Law. 
5(Source: P.A. 102-700, eff. 4-19-22; 102-1062, eff. 7-1-22; 
6103-154, eff. 6-30-23.)

7 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
8 Sec. 5-1007. Home Rule County Service Occupation Tax Law. 
9The corporate authorities of a home rule county may impose a 
10tax upon all persons engaged, in such county, in the business 
11of making sales of service at the same rate of tax imposed 
12pursuant to Section 5-1006 of the selling price of all 
13tangible personal property transferred by such servicemen 
14either in the form of tangible personal property or in the form 
15of real estate as an incident to a sale of service. If imposed, 
16such tax shall only be imposed in 1/4% increments. On and after 
17September 1, 1991, this additional tax may not be imposed on 
18tangible personal property taxed at the 1% rate under the 
19Service Occupation Tax Act (or at the 0% rate imposed under 
20this amendatory Act of the 102nd General Assembly). Beginning 
21December 1, 2019, this tax is not imposed on sales of aviation 
22fuel unless the tax revenue is expended for airport-related 
23purposes. If the county does not have an airport-related 
24purpose to which it dedicates aviation fuel tax revenue, then 
25aviation fuel is excluded from the tax. The county must comply 
 
 
10300HB4951sam002- 677 -LRB103 38094 HLH 74177 a


1with the certification requirements for airport-related 
2purposes under Section 2-22 of the Retailers' Occupation Tax 
3Act. For purposes of this Section, "airport-related purposes" 
4has the meaning ascribed in Section 6z-20.2 of the State 
5Finance Act. This exclusion for aviation fuel only applies for 
6so long as the revenue use requirements of 49 U.S.C. 47107(b) 
7and 49 U.S.C. 47133 are binding on the county. The changes made 
8to this Section by this amendatory Act of the 101st General 
9Assembly are a denial and limitation of home rule powers and 
10functions under subsection (g) of Section 6 of Article VII of 
11the Illinois Constitution. The tax imposed by a home rule 
12county pursuant to this Section and all civil penalties that 
13may be assessed as an incident thereof shall be collected and 
14enforced by the State Department of Revenue. The certificate 
15of registration which is issued by the Department to a 
16retailer under the Retailers' Occupation Tax Act or under the 
17Service Occupation Tax Act shall permit such registrant to 
18engage in a business which is taxable under any ordinance or 
19resolution enacted pursuant to this Section without 
20registering separately with the Department under such 
21ordinance or resolution or under this Section. The Department 
22shall have full power to administer and enforce this Section; 
23to collect all taxes and penalties due hereunder; to dispose 
24of taxes and penalties so collected in the manner hereinafter 
25provided; and to determine all rights to credit memoranda 
26arising on account of the erroneous payment of tax or penalty 
 
 
10300HB4951sam002- 678 -LRB103 38094 HLH 74177 a


1hereunder. In the administration of, and compliance with, this 
2Section the Department and persons who are subject to this 
3Section shall have the same rights, remedies, privileges, 
4immunities, powers and duties, and be subject to the same 
5conditions, restrictions, limitations, penalties and 
6definitions of terms, and employ the same modes of procedure, 
7as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 
8respect to all provisions therein other than the State rate of 
9tax), 4 (except that the reference to the State shall be to the 
10taxing county), 5, 7, 8 (except that the jurisdiction to which 
11the tax shall be a debt to the extent indicated in that Section 
128 shall be the taxing county), 9 (except as to the disposition 
13of taxes and penalties collected, and except that the returned 
14merchandise credit for this county tax may not be taken 
15against any State tax, and except that the retailer's discount 
16is not allowed for taxes paid on aviation fuel that are subject 
17to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
18U.S.C. 47133), 10, 11, 12 (except the reference therein to 
19Section 2b of the Retailers' Occupation Tax Act), 13 (except 
20that any reference to the State shall mean the taxing county), 
21the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the 
22Service Occupation Tax Act and Section 3-7 of the Uniform 
23Penalty and Interest Act, as fully as if those provisions were 
24set forth herein.
25 No tax may be imposed by a home rule county pursuant to 
26this Section unless such county also imposes a tax at the same 
 
 
10300HB4951sam002- 679 -LRB103 38094 HLH 74177 a


1rate pursuant to Section 5-1006.
2 If, on January 1, 2025, a unit of local government has in 
3effect a tax under this Section, or if, after January 1, 2025, 
4a unit of local government imposes a tax under this Section, 
5then that tax applies to leases of tangible personal property 
6in effect, entered into, or renewed on or after that date in 
7the same manner as the tax under this Section and in accordance 
8with the changes made by this amendatory Act of the 103rd 
9General Assembly. 
10 Persons subject to any tax imposed pursuant to the 
11authority granted in this Section may reimburse themselves for 
12their serviceman's tax liability hereunder by separately 
13stating such tax as an additional charge, which charge may be 
14stated in combination, in a single amount, with State tax 
15which servicemen are authorized to collect under the Service 
16Use Tax Act, pursuant to such bracket schedules as the 
17Department may prescribe.
18 Whenever the Department determines that a refund should be 
19made under this Section to a claimant instead of issuing 
20credit memorandum, the Department shall notify the State 
21Comptroller, who shall cause the order to be drawn for the 
22amount specified, and to the person named, in such 
23notification from the Department. Such refund shall be paid by 
24the State Treasurer out of the home rule county retailers' 
25occupation tax fund or the Local Government Aviation Trust 
26Fund, as appropriate.
 
 
10300HB4951sam002- 680 -LRB103 38094 HLH 74177 a


1 Except as otherwise provided in this paragraph, the 
2Department shall forthwith pay over to the State Treasurer, ex 
3officio, as trustee, all taxes and penalties collected 
4hereunder for deposit into the Home Rule County Retailers' 
5Occupation Tax Fund. Taxes and penalties collected on aviation 
6fuel sold on or after December 1, 2019, shall be immediately 
7paid over by the Department to the State Treasurer, ex 
8officio, as trustee, for deposit into the Local Government 
9Aviation Trust Fund. The Department shall only pay moneys into 
10the Local Government Aviation Trust Fund under this Section 
11for so long as the revenue use requirements of 49 U.S.C. 
1247107(b) and 49 U.S.C. 47133 are binding on the county. 
13 As soon as possible after the first day of each month, 
14beginning January 1, 2011, upon certification of the 
15Department of Revenue, the Comptroller shall order 
16transferred, and the Treasurer shall transfer, to the STAR 
17Bonds Revenue Fund the local sales tax increment, as defined 
18in the Innovation Development and Economy Act, collected under 
19this Section during the second preceding calendar month for 
20sales within a STAR bond district.
21 After the monthly transfer to the STAR Bonds Revenue Fund, 
22on or before the 25th day of each calendar month, the 
23Department shall prepare and certify to the Comptroller the 
24disbursement of stated sums of money to named counties, the 
25counties to be those from which suppliers and servicemen have 
26paid taxes or penalties hereunder to the Department during the 
 
 
10300HB4951sam002- 681 -LRB103 38094 HLH 74177 a


1second preceding calendar month. The amount to be paid to each 
2county shall be the amount (not including credit memoranda and 
3not including taxes and penalties collected on aviation fuel 
4sold on or after December 1, 2019) collected hereunder during 
5the second preceding calendar month by the Department, and not 
6including an amount equal to the amount of refunds made during 
7the second preceding calendar month by the Department on 
8behalf of such county, and not including any amounts that are 
9transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
10remainder, which the Department shall transfer into the Tax 
11Compliance and Administration Fund. The Department, at the 
12time of each monthly disbursement to the counties, shall 
13prepare and certify to the State Comptroller the amount to be 
14transferred into the Tax Compliance and Administration Fund 
15under this Section. Within 10 days after receipt, by the 
16Comptroller, of the disbursement certification to the counties 
17and the Tax Compliance and Administration Fund provided for in 
18this Section to be given to the Comptroller by the Department, 
19the Comptroller shall cause the orders to be drawn for the 
20respective amounts in accordance with the directions contained 
21in such certification.
22 In addition to the disbursement required by the preceding 
23paragraph, an allocation shall be made in each year to each 
24county which received more than $500,000 in disbursements 
25under the preceding paragraph in the preceding calendar year. 
26The allocation shall be in an amount equal to the average 
 
 
10300HB4951sam002- 682 -LRB103 38094 HLH 74177 a


1monthly distribution made to each such county under the 
2preceding paragraph during the preceding calendar year 
3(excluding the 2 months of highest receipts). The distribution 
4made in March of each year subsequent to the year in which an 
5allocation was made pursuant to this paragraph and the 
6preceding paragraph shall be reduced by the amount allocated 
7and disbursed under this paragraph in the preceding calendar 
8year. The Department shall prepare and certify to the 
9Comptroller for disbursement the allocations made in 
10accordance with this paragraph.
11 Nothing in this Section shall be construed to authorize a 
12county to impose a tax upon the privilege of engaging in any 
13business which under the Constitution of the United States may 
14not be made the subject of taxation by this State.
15 An ordinance or resolution imposing or discontinuing a tax 
16hereunder or effecting a change in the rate thereof shall be 
17adopted and a certified copy thereof filed with the Department 
18on or before the first day of June, whereupon the Department 
19shall proceed to administer and enforce this Section as of the 
20first day of September next following such adoption and 
21filing. Beginning January 1, 1992, an ordinance or resolution 
22imposing or discontinuing the tax hereunder or effecting a 
23change in the rate thereof shall be adopted and a certified 
24copy thereof filed with the Department on or before the first 
25day of July, whereupon the Department shall proceed to 
26administer and enforce this Section as of the first day of 
 
 
10300HB4951sam002- 683 -LRB103 38094 HLH 74177 a


1October next following such adoption and filing. Beginning 
2January 1, 1993, an ordinance or resolution imposing or 
3discontinuing the tax hereunder or effecting a change in the 
4rate thereof shall be adopted and a certified copy thereof 
5filed with the Department on or before the first day of 
6October, whereupon the Department shall proceed to administer 
7and enforce this Section as of the first day of January next 
8following such adoption and filing. Beginning April 1, 1998, 
9an ordinance or resolution imposing or discontinuing the tax 
10hereunder or effecting a change in the rate thereof shall 
11either (i) be adopted and a certified copy thereof filed with 
12the Department on or before the first day of April, whereupon 
13the Department shall proceed to administer and enforce this 
14Section as of the first day of July next following the adoption 
15and filing; or (ii) be adopted and a certified copy thereof 
16filed with the Department on or before the first day of 
17October, whereupon the Department shall proceed to administer 
18and enforce this Section as of the first day of January next 
19following the adoption and filing.
20 This Section shall be known and may be cited as the Home 
21Rule County Service Occupation Tax Law.
22(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
23101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

24 (55 ILCS 5/5-1008.5)
25 Sec. 5-1008.5. Use and occupation taxes. 
 
 
10300HB4951sam002- 684 -LRB103 38094 HLH 74177 a


1 (a) The Rock Island County Board may adopt a resolution 
2that authorizes a referendum on the question of whether the 
3county shall be authorized to impose a retailers' occupation 
4tax, a service occupation tax, and a use tax at a rate of 1/4 
5of 1% on behalf of the economic development activities of Rock 
6Island County and communities located within the county. The 
7county board shall certify the question to the proper election 
8authorities who shall submit the question to the voters of the 
9county at the next regularly scheduled election in accordance 
10with the general election law. The question shall be in 
11substantially the following form: 
12  Shall Rock Island County be authorized to impose a 
13 retailers' occupation tax, a service occupation tax, and a 
14 use tax at the rate of 1/4 of 1% for the sole purpose of 
15 economic development activities, including creation and 
16 retention of job opportunities, support of affordable 
17 housing opportunities, and enhancement of quality of life 
18 improvements?
19 Votes shall be recorded as "yes" or "no". If a majority of 
20all votes cast on the proposition are in favor of the 
21proposition, the county is authorized to impose the tax.
22 (b) The county shall impose the retailers' occupation tax 
23upon all persons engaged in the business of selling tangible 
24personal property at retail in the county, at the rate 
25approved by referendum, on the gross receipts from the sales 
26made in the course of those businesses within the county. This 
 
 
10300HB4951sam002- 685 -LRB103 38094 HLH 74177 a


1additional tax may not be imposed on tangible personal 
2property taxed at the 1% rate under the Retailers' Occupation 
3Tax Act. Beginning December 1, 2019, this tax is not imposed on 
4sales of aviation fuel unless the tax revenue is expended for 
5airport-related purposes. If the county does not have an 
6airport-related purpose to which it dedicates aviation fuel 
7tax revenue, then aviation fuel is excluded from the tax. The 
8county must comply with the certification requirements for 
9airport-related purposes under Section 2-22 of the Retailers' 
10Occupation Tax Act. For purposes of this Section, 
11"airport-related purposes" has the meaning ascribed in Section 
126z-20.2 of the State Finance Act. This exclusion for aviation 
13fuel only applies for so long as the revenue use requirements 
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
15county. The tax imposed under this Section and all civil 
16penalties that may be assessed as an incident of the tax shall 
17be collected and enforced by the Department of Revenue. The 
18Department has full power to administer and enforce this 
19Section; to collect all taxes and penalties so collected in 
20the manner provided in this Section; and to determine all 
21rights to credit memoranda arising on account of the erroneous 
22payment of tax or penalty under this Section. In the 
23administration of, and compliance with, this Section, the 
24Department and persons who are subject to this Section shall 
25(i) have the same rights, remedies, privileges, immunities, 
26powers and duties, (ii) be subject to the same conditions, 
 
 
10300HB4951sam002- 686 -LRB103 38094 HLH 74177 a


1restrictions, limitations, penalties, exclusions, exemptions, 
2and definitions of terms, and (iii) employ the same modes of 
3procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 
41e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to 
5all provisions other than the State rate of tax), 2-15 through 
62-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and 
7penalties collected and provisions related to quarter monthly 
8payments, and except that the retailer's discount is not 
9allowed for taxes paid on aviation fuel that are subject to the 
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
1147133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 
126a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' 
13Occupation Tax Act and Section 3-7 of the Uniform Penalty and 
14Interest Act, as fully as if those provisions were set forth in 
15this subsection.
16 Persons subject to any tax imposed under this subsection 
17may reimburse themselves for their seller's tax liability by 
18separately stating the tax as an additional charge, which 
19charge may be stated in combination, in a single amount, with 
20State taxes that sellers are required to collect, in 
21accordance with bracket schedules prescribed by the 
22Department.
23 Whenever the Department determines that a refund should be 
24made under this subsection to a claimant instead of issuing a 
25credit memorandum, the Department shall notify the State 
26Comptroller, who shall cause the warrant to be drawn for the 
 
 
10300HB4951sam002- 687 -LRB103 38094 HLH 74177 a


1amount specified, and to the person named, in the notification 
2from the Department. The refund shall be paid by the State 
3Treasurer out of the tax fund referenced under paragraph (g) 
4of this Section or the Local Government Aviation Trust Fund, 
5as appropriate.
6 If a tax is imposed under this subsection (b), a tax shall 
7also be imposed at the same rate under subsections (c) and (d) 
8of this Section.
9 For the purpose of determining whether a tax authorized 
10under this Section is applicable, a retail sale, by a producer 
11of coal or another mineral mined in Illinois, is a sale at 
12retail at the place where the coal or other mineral mined in 
13Illinois is extracted from the earth. This paragraph does not 
14apply to coal or another mineral when it is delivered or 
15shipped by the seller to the purchaser at a point outside 
16Illinois so that the sale is exempt under the federal 
17Constitution as a sale in interstate or foreign commerce.
18 Nothing in this Section shall be construed to authorize 
19the county to impose a tax upon the privilege of engaging in 
20any business that under the Constitution of the United States 
21may not be made the subject of taxation by this State.
22 (c) If a tax has been imposed under subsection (b), a 
23service occupation tax shall also be imposed at the same rate 
24upon all persons engaged, in the county, in the business of 
25making sales of service, who, as an incident to making those 
26sales of service, transfer tangible personal property within 
 
 
10300HB4951sam002- 688 -LRB103 38094 HLH 74177 a


1the county as an incident to a sale of service. This additional 
2tax may not be imposed on tangible personal property taxed at 
3the 1% rate under the Service Occupation Tax Act. Beginning 
4December 1, 2019, this tax is not imposed on sales of aviation 
5fuel unless the tax revenue is expended for airport-related 
6purposes. If the county does not have an airport-related 
7purpose to which it dedicates aviation fuel tax revenue, then 
8aviation fuel is excluded from the tax. The county must comply 
9with the certification requirements for airport-related 
10purposes under Section 2-22 of the Retailers' Occupation Tax 
11Act. For purposes of this Section, "airport-related purposes" 
12has the meaning ascribed in Section 6z-20.2 of the State 
13Finance Act. This exclusion for aviation fuel only applies for 
14so long as the revenue use requirements of 49 U.S.C. 47107(b) 
15and 49 U.S.C. 47133 are binding on the county. The tax imposed 
16under this subsection and all civil penalties that may be 
17assessed as an incident of the tax shall be collected and 
18enforced by the Department of Revenue. The Department has full 
19power to administer and enforce this paragraph; to collect all 
20taxes and penalties due under this Section; to dispose of 
21taxes and penalties so collected in the manner provided in 
22this Section; and to determine all rights to credit memoranda 
23arising on account of the erroneous payment of tax or penalty 
24under this Section. In the administration of, and compliance 
25with this paragraph, the Department and persons who are 
26subject to this paragraph shall (i) have the same rights, 
 
 
10300HB4951sam002- 689 -LRB103 38094 HLH 74177 a


1remedies, privileges, immunities, powers, and duties, (ii) be 
2subject to the same conditions, restrictions, limitations, 
3penalties, exclusions, exemptions, and definitions of terms, 
4and (iii) employ the same modes of procedure as are prescribed 
5in Sections 2 (except that the reference to State in the 
6definition of supplier maintaining a place of business in this 
7State shall mean the county), 2a, 2b, 3 through 3-55 (in 
8respect to all provisions other than the State rate of tax), 4 
9(except that the reference to the State shall be to the 
10county), 5, 7, 8 (except that the jurisdiction to which the tax 
11shall be a debt to the extent indicated in that Section 8 shall 
12be the county), 9 (except as to the disposition of taxes and 
13penalties collected, and except that the returned merchandise 
14credit for this tax may not be taken against any State tax, and 
15except that the retailer's discount is not allowed for taxes 
16paid on aviation fuel that are subject to the revenue use 
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, 
1812 (except the reference to Section 2b of the Retailers' 
19Occupation Tax Act), 13 (except that any reference to the 
20State shall mean the county), 15, 16, 17, 18, 19 and 20 of the 
21Service Occupation Tax Act and Section 3-7 of the Uniform 
22Penalty and Interest Act, as fully as if those provisions were 
23set forth in this subsection.
24 Persons subject to any tax imposed under the authority 
25granted in this subsection may reimburse themselves for their 
26serviceman's tax liability by separately stating the tax as an 
 
 
10300HB4951sam002- 690 -LRB103 38094 HLH 74177 a


1additional charge, which charge may be stated in combination, 
2in a single amount, with State tax that servicemen are 
3authorized to collect under the Service Use Tax Act, in 
4accordance with bracket schedules prescribed by the 
5Department.
6 Whenever the Department determines that a refund should be 
7made under this subsection to a claimant instead of issuing a 
8credit memorandum, the Department shall notify the State 
9Comptroller, who shall cause the warrant to be drawn for the 
10amount specified, and to the person named, in the notification 
11from the Department. The refund shall be paid by the State 
12Treasurer out of the tax fund referenced under paragraph (g) 
13of this Section or the Local Government Aviation Trust Fund, 
14as appropriate.
15 Nothing in this paragraph shall be construed to authorize 
16the county to impose a tax upon the privilege of engaging in 
17any business that under the Constitution of the United States 
18may not be made the subject of taxation by the State.
19 (c-5) If, on January 1, 2025, a unit of local government 
20has in effect a tax under this Section, or if, after January 1, 
212025, a unit of local government imposes a tax under this 
22Section, then that tax applies to leases of tangible personal 
23property in effect, entered into, or renewed on or after that 
24date in the same manner as the tax under this Section and in 
25accordance with the changes made by this amendatory Act of the 
26103rd General Assembly. 
 
 
10300HB4951sam002- 691 -LRB103 38094 HLH 74177 a


1 (d) If a tax has been imposed under subsection (b), a use 
2tax shall also be imposed at the same rate upon the privilege 
3of using, in the county, any item of tangible personal 
4property that is purchased outside the county at retail from a 
5retailer, and that is titled or registered at a location 
6within the county with an agency of this State's government. 
7"Selling price" is defined as in the Use Tax Act. The tax shall 
8be collected from persons whose Illinois address for titling 
9or registration purposes is given as being in the county. The 
10tax shall be collected by the Department of Revenue for the 
11county. The tax must be paid to the State, or an exemption 
12determination must be obtained from the Department of Revenue, 
13before the title or certificate of registration for the 
14property may be issued. The tax or proof of exemption may be 
15transmitted to the Department by way of the State agency with 
16which, or the State officer with whom, the tangible personal 
17property must be titled or registered if the Department and 
18the State agency or State officer determine that this 
19procedure will expedite the processing of applications for 
20title or registration.
21 The Department has full power to administer and enforce 
22this paragraph; to collect all taxes, penalties, and interest 
23due under this Section; to dispose of taxes, penalties, and 
24interest so collected in the manner provided in this Section; 
25and to determine all rights to credit memoranda or refunds 
26arising on account of the erroneous payment of tax, penalty, 
 
 
10300HB4951sam002- 692 -LRB103 38094 HLH 74177 a


1or interest under this Section. In the administration of, and 
2compliance with, this subsection, the Department and persons 
3who are subject to this paragraph shall (i) have the same 
4rights, remedies, privileges, immunities, powers, and duties, 
5(ii) be subject to the same conditions, restrictions, 
6limitations, penalties, exclusions, exemptions, and 
7definitions of terms, and (iii) employ the same modes of 
8procedure as are prescribed in Sections 2 (except the 
9definition of "retailer maintaining a place of business in 
10this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 
114, 6, 7, 8 (except that the jurisdiction to which the tax shall 
12be a debt to the extent indicated in that Section 8 shall be 
13the county), 9 (except provisions relating to quarter monthly 
14payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 
15of the Use Tax Act and Section 3-7 of the Uniform Penalty and 
16Interest Act, that are not inconsistent with this paragraph, 
17as fully as if those provisions were set forth in this 
18subsection.
19 Whenever the Department determines that a refund should be 
20made under this subsection to a claimant instead of issuing a 
21credit memorandum, the Department shall notify the State 
22Comptroller, who shall cause the order to be drawn for the 
23amount specified, and to the person named, in the notification 
24from the Department. The refund shall be paid by the State 
25Treasurer out of the tax fund referenced under paragraph (g) 
26of this Section.
 
 
10300HB4951sam002- 693 -LRB103 38094 HLH 74177 a


1 (e) A certificate of registration issued by the State 
2Department of Revenue to a retailer under the Retailers' 
3Occupation Tax Act or under the Service Occupation Tax Act 
4shall permit the registrant to engage in a business that is 
5taxed under the tax imposed under paragraphs (b), (c), or (d) 
6of this Section and no additional registration shall be 
7required. A certificate issued under the Use Tax Act or the 
8Service Use Tax Act shall be applicable with regard to any tax 
9imposed under paragraph (c) of this Section.
10 (f) The results of any election authorizing a proposition 
11to impose a tax under this Section or effecting a change in the 
12rate of tax shall be certified by the proper election 
13authorities and filed with the Illinois Department on or 
14before the first day of October. In addition, an ordinance 
15imposing, discontinuing, or effecting a change in the rate of 
16tax under this Section shall be adopted and a certified copy of 
17the ordinance filed with the Department on or before the first 
18day of October. After proper receipt of the certifications, 
19the Department shall proceed to administer and enforce this 
20Section as of the first day of January next following the 
21adoption and filing.
22 (g) Except as otherwise provided in paragraph (g-2), the 
23Department of Revenue shall, upon collecting any taxes and 
24penalties as provided in this Section, pay the taxes and 
25penalties over to the State Treasurer as trustee for the 
26county. The taxes and penalties shall be held in a trust fund 
 
 
10300HB4951sam002- 694 -LRB103 38094 HLH 74177 a


1outside the State Treasury. On or before the 25th day of each 
2calendar month, the Department of Revenue shall prepare and 
3certify to the Comptroller of the State of Illinois the amount 
4to be paid to the county, which shall be the balance in the 
5fund, less any amount determined by the Department to be 
6necessary for the payment of refunds. Within 10 days after 
7receipt by the Comptroller of the certification of the amount 
8to be paid to the county, the Comptroller shall cause an order 
9to be drawn for payment for the amount in accordance with the 
10directions contained in the certification. Amounts received 
11from the tax imposed under this Section shall be used only for 
12the economic development activities of the county and 
13communities located within the county.
14 (g-2) Taxes and penalties collected on aviation fuel sold 
15on or after December 1, 2019, shall be immediately paid over by 
16the Department to the State Treasurer, ex officio, as trustee, 
17for deposit into the Local Government Aviation Trust Fund. The 
18Department shall only pay moneys into the Local Government 
19Aviation Trust Fund under this Section for so long as the 
20revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
2147133 are binding on the county. 
22 (h) When certifying the amount of a monthly disbursement 
23to the county under this Section, the Department shall 
24increase or decrease the amounts by an amount necessary to 
25offset any miscalculation of previous disbursements. The 
26offset amount shall be the amount erroneously disbursed within 
 
 
10300HB4951sam002- 695 -LRB103 38094 HLH 74177 a


1the previous 6 months from the time a miscalculation is 
2discovered.
3 (i) This Section may be cited as the Rock Island County Use 
4and Occupation Tax Law.
5(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 
6101-604, eff. 12-13-19.)

7 Section 75-35. The Illinois Municipal Code is amended by 
8changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6, 
98-11-1.7, and 11-74.3-6 as follows:

10 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
11 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax 
12Act. The corporate authorities of a home rule municipality may 
13impose a tax upon all persons engaged in the business of 
14selling tangible personal property, other than an item of 
15tangible personal property titled or registered with an agency 
16of this State's government, at retail in the municipality on 
17the gross receipts from these sales made in the course of such 
18business. If imposed, the tax shall only be imposed in 1/4% 
19increments. On and after September 1, 1991, this additional 
20tax may not be imposed on tangible personal property taxed at 
21the 1% rate under the Retailers' Occupation Tax Act (or at the 
220% rate imposed under this amendatory Act of the 102nd General 
23Assembly). Beginning December 1, 2019, this tax is not imposed 
24on sales of aviation fuel unless the tax revenue is expended 
 
 
10300HB4951sam002- 696 -LRB103 38094 HLH 74177 a


1for airport-related purposes. If a municipality does not have 
2an airport-related purpose to which it dedicates aviation fuel 
3tax revenue, then aviation fuel is excluded from the tax. Each 
4municipality must comply with the certification requirements 
5for airport-related purposes under Section 2-22 of the 
6Retailers' Occupation Tax Act. For purposes of this Section, 
7"airport-related purposes" has the meaning ascribed in Section 
86z-20.2 of the State Finance Act. This exclusion for aviation 
9fuel only applies for so long as the revenue use requirements 
10of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
11municipality. The changes made to this Section by this 
12amendatory Act of the 101st General Assembly are a denial and 
13limitation of home rule powers and functions under subsection 
14(g) of Section 6 of Article VII of the Illinois Constitution. 
15The tax imposed by a home rule municipality under this Section 
16and all civil penalties that may be assessed as an incident of 
17the tax shall be collected and enforced by the State 
18Department of Revenue. The certificate of registration that is 
19issued by the Department to a retailer under the Retailers' 
20Occupation Tax Act shall permit the retailer to engage in a 
21business that is taxable under any ordinance or resolution 
22enacted pursuant to this Section without registering 
23separately with the Department under such ordinance or 
24resolution or under this Section. The Department shall have 
25full power to administer and enforce this Section; to collect 
26all taxes and penalties due hereunder; to dispose of taxes and 
 
 
10300HB4951sam002- 697 -LRB103 38094 HLH 74177 a


1penalties so collected in the manner hereinafter provided; and 
2to determine all rights to credit memoranda arising on account 
3of the erroneous payment of tax or penalty hereunder. In the 
4administration of, and compliance with, this Section the 
5Department and persons who are subject to this Section shall 
6have the same rights, remedies, privileges, immunities, powers 
7and duties, and be subject to the same conditions, 
8restrictions, limitations, penalties and definitions of terms, 
9and employ the same modes of procedure, as are prescribed in 
10Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 
11(in respect to all provisions therein other than the State 
12rate of tax), 2c, 3 (except as to the disposition of taxes and 
13penalties collected, and except that the retailer's discount 
14is not allowed for taxes paid on aviation fuel that are subject 
15to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
16U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 
175k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the 
18Retailers' Occupation Tax Act and Section 3-7 of the Uniform 
19Penalty and Interest Act, as fully as if those provisions were 
20set forth herein.
21 No tax may be imposed by a home rule municipality under 
22this Section unless the municipality also imposes a tax at the 
23same rate under Section 8-11-5 of this Act.
24 If, on January 1, 2025, a unit of local government has in 
25effect a tax under this Section, or if, after January 1, 2025, 
26a unit of local government imposes a tax under this Section, 
 
 
10300HB4951sam002- 698 -LRB103 38094 HLH 74177 a


1then that tax applies to leases of tangible personal property 
2in effect, entered into, or renewed on or after that date in 
3the same manner as the tax under this Section and in accordance 
4with the changes made by this amendatory Act of the 103rd 
5General Assembly. 
6 Persons subject to any tax imposed under the authority 
7granted in this Section may reimburse themselves for their 
8seller's tax liability hereunder by separately stating that 
9tax as an additional charge, which charge may be stated in 
10combination, in a single amount, with State tax which sellers 
11are required to collect under the Use Tax Act, pursuant to such 
12bracket schedules as the Department may prescribe.
13 Whenever the Department determines that a refund should be 
14made under this Section to a claimant instead of issuing a 
15credit memorandum, the Department shall notify the State 
16Comptroller, who shall cause the order to be drawn for the 
17amount specified and to the person named in the notification 
18from the Department. The refund shall be paid by the State 
19Treasurer out of the home rule municipal retailers' occupation 
20tax fund or the Local Government Aviation Trust Fund, as 
21appropriate.
22 Except as otherwise provided in this paragraph, the 
23Department shall immediately pay over to the State Treasurer, 
24ex officio, as trustee, all taxes and penalties collected 
25hereunder for deposit into the Home Rule Municipal Retailers' 
26Occupation Tax Fund. Taxes and penalties collected on aviation 
 
 
10300HB4951sam002- 699 -LRB103 38094 HLH 74177 a


1fuel sold on or after December 1, 2019, shall be immediately 
2paid over by the Department to the State Treasurer, ex 
3officio, as trustee, for deposit into the Local Government 
4Aviation Trust Fund. The Department shall only pay moneys into 
5the Local Government Aviation Trust Fund under this Section 
6for so long as the revenue use requirements of 49 U.S.C. 
747107(b) and 49 U.S.C. 47133 are binding on the State. 
8 As soon as possible after the first day of each month, 
9beginning January 1, 2011, upon certification of the 
10Department of Revenue, the Comptroller shall order 
11transferred, and the Treasurer shall transfer, to the STAR 
12Bonds Revenue Fund the local sales tax increment, as defined 
13in the Innovation Development and Economy Act, collected under 
14this Section during the second preceding calendar month for 
15sales within a STAR bond district.
16 After the monthly transfer to the STAR Bonds Revenue Fund, 
17on or before the 25th day of each calendar month, the 
18Department shall prepare and certify to the Comptroller the 
19disbursement of stated sums of money to named municipalities, 
20the municipalities to be those from which retailers have paid 
21taxes or penalties hereunder to the Department during the 
22second preceding calendar month. The amount to be paid to each 
23municipality shall be the amount (not including credit 
24memoranda and not including taxes and penalties collected on 
25aviation fuel sold on or after December 1, 2019) collected 
26hereunder during the second preceding calendar month by the 
 
 
10300HB4951sam002- 700 -LRB103 38094 HLH 74177 a


1Department plus an amount the Department determines is 
2necessary to offset any amounts that were erroneously paid to 
3a different taxing body, and not including an amount equal to 
4the amount of refunds made during the second preceding 
5calendar month by the Department on behalf of such 
6municipality, and not including any amount that the Department 
7determines is necessary to offset any amounts that were 
8payable to a different taxing body but were erroneously paid 
9to the municipality, and not including any amounts that are 
10transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
11remainder, which the Department shall transfer into the Tax 
12Compliance and Administration Fund. The Department, at the 
13time of each monthly disbursement to the municipalities, shall 
14prepare and certify to the State Comptroller the amount to be 
15transferred into the Tax Compliance and Administration Fund 
16under this Section. Within 10 days after receipt by the 
17Comptroller of the disbursement certification to the 
18municipalities and the Tax Compliance and Administration Fund 
19provided for in this Section to be given to the Comptroller by 
20the Department, the Comptroller shall cause the orders to be 
21drawn for the respective amounts in accordance with the 
22directions contained in the certification.
23 In addition to the disbursement required by the preceding 
24paragraph and in order to mitigate delays caused by 
25distribution procedures, an allocation shall, if requested, be 
26made within 10 days after January 14, 1991, and in November of 
 
 
10300HB4951sam002- 701 -LRB103 38094 HLH 74177 a


11991 and each year thereafter, to each municipality that 
2received more than $500,000 during the preceding fiscal year, 
3(July 1 through June 30) whether collected by the municipality 
4or disbursed by the Department as required by this Section. 
5Within 10 days after January 14, 1991, participating 
6municipalities shall notify the Department in writing of their 
7intent to participate. In addition, for the initial 
8distribution, participating municipalities shall certify to 
9the Department the amounts collected by the municipality for 
10each month under its home rule occupation and service 
11occupation tax during the period July 1, 1989 through June 30, 
121990. The allocation within 10 days after January 14, 1991, 
13shall be in an amount equal to the monthly average of these 
14amounts, excluding the 2 months of highest receipts. The 
15monthly average for the period of July 1, 1990 through June 30, 
161991 will be determined as follows: the amounts collected by 
17the municipality under its home rule occupation and service 
18occupation tax during the period of July 1, 1990 through 
19September 30, 1990, plus amounts collected by the Department 
20and paid to such municipality through June 30, 1991, excluding 
21the 2 months of highest receipts. The monthly average for each 
22subsequent period of July 1 through June 30 shall be an amount 
23equal to the monthly distribution made to each such 
24municipality under the preceding paragraph during this period, 
25excluding the 2 months of highest receipts. The distribution 
26made in November 1991 and each year thereafter under this 
 
 
10300HB4951sam002- 702 -LRB103 38094 HLH 74177 a


1paragraph and the preceding paragraph shall be reduced by the 
2amount allocated and disbursed under this paragraph in the 
3preceding period of July 1 through June 30. The Department 
4shall prepare and certify to the Comptroller for disbursement 
5the allocations made in accordance with this paragraph.
6 For the purpose of determining the local governmental unit 
7whose tax is applicable, a retail sale by a producer of coal or 
8other mineral mined in Illinois is a sale at retail at the 
9place where the coal or other mineral mined in Illinois is 
10extracted from the earth. This paragraph does not apply to 
11coal or other mineral when it is delivered or shipped by the 
12seller to the purchaser at a point outside Illinois so that the 
13sale is exempt under the United States Constitution as a sale 
14in interstate or foreign commerce.
15 Nothing in this Section shall be construed to authorize a 
16municipality to impose a tax upon the privilege of engaging in 
17any business which under the Constitution of the United States 
18may not be made the subject of taxation by this State.
19 An ordinance or resolution imposing or discontinuing a tax 
20hereunder or effecting a change in the rate thereof shall be 
21adopted and a certified copy thereof filed with the Department 
22on or before the first day of June, whereupon the Department 
23shall proceed to administer and enforce this Section as of the 
24first day of September next following the adoption and filing. 
25Beginning January 1, 1992, an ordinance or resolution imposing 
26or discontinuing the tax hereunder or effecting a change in 
 
 
10300HB4951sam002- 703 -LRB103 38094 HLH 74177 a


1the rate thereof shall be adopted and a certified copy thereof 
2filed with the Department on or before the first day of July, 
3whereupon the Department shall proceed to administer and 
4enforce this Section as of the first day of October next 
5following such adoption and filing. Beginning January 1, 1993, 
6an ordinance or resolution imposing or discontinuing the tax 
7hereunder or effecting a change in the rate thereof shall be 
8adopted and a certified copy thereof filed with the Department 
9on or before the first day of October, whereupon the 
10Department shall proceed to administer and enforce this 
11Section as of the first day of January next following the 
12adoption and filing. However, a municipality located in a 
13county with a population in excess of 3,000,000 that elected 
14to become a home rule unit at the general primary election in 
151994 may adopt an ordinance or resolution imposing the tax 
16under this Section and file a certified copy of the ordinance 
17or resolution with the Department on or before July 1, 1994. 
18The Department shall then proceed to administer and enforce 
19this Section as of October 1, 1994. Beginning April 1, 1998, an 
20ordinance or resolution imposing or discontinuing the tax 
21hereunder or effecting a change in the rate thereof shall 
22either (i) be adopted and a certified copy thereof filed with 
23the Department on or before the first day of April, whereupon 
24the Department shall proceed to administer and enforce this 
25Section as of the first day of July next following the adoption 
26and filing; or (ii) be adopted and a certified copy thereof 
 
 
10300HB4951sam002- 704 -LRB103 38094 HLH 74177 a


1filed with the Department on or before the first day of 
2October, whereupon the Department shall proceed to administer 
3and enforce this Section as of the first day of January next 
4following the adoption and filing.
5 When certifying the amount of a monthly disbursement to a 
6municipality under this Section, the Department shall increase 
7or decrease the amount by an amount necessary to offset any 
8misallocation of previous disbursements. The offset amount 
9shall be the amount erroneously disbursed within the previous 
106 months from the time a misallocation is discovered.
11 Any unobligated balance remaining in the Municipal 
12Retailers' Occupation Tax Fund on December 31, 1989, which 
13fund was abolished by Public Act 85-1135, and all receipts of 
14municipal tax as a result of audits of liability periods prior 
15to January 1, 1990, shall be paid into the Local Government Tax 
16Fund for distribution as provided by this Section prior to the 
17enactment of Public Act 85-1135. All receipts of municipal tax 
18as a result of an assessment not arising from an audit, for 
19liability periods prior to January 1, 1990, shall be paid into 
20the Local Government Tax Fund for distribution before July 1, 
211990, as provided by this Section prior to the enactment of 
22Public Act 85-1135; and on and after July 1, 1990, all such 
23receipts shall be distributed as provided in Section 6z-18 of 
24the State Finance Act.
25 As used in this Section, "municipal" and "municipality" 
26means a city, village or incorporated town, including an 
 
 
10300HB4951sam002- 705 -LRB103 38094 HLH 74177 a


1incorporated town that has superseded a civil township.
2 This Section shall be known and may be cited as the Home 
3Rule Municipal Retailers' Occupation Tax Act.
4(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
5101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

6 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
7 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 
8Occupation Tax Act. The corporate authorities of a non-home 
9rule municipality may impose a tax upon all persons engaged in 
10the business of selling tangible personal property, other than 
11on an item of tangible personal property which is titled and 
12registered by an agency of this State's Government, at retail 
13in the municipality for expenditure on public infrastructure 
14or for property tax relief or both as defined in Section 
158-11-1.2 if approved by referendum as provided in Section 
168-11-1.1, of the gross receipts from such sales made in the 
17course of such business. If the tax is approved by referendum 
18on or after July 14, 2010 (the effective date of Public Act 
1996-1057), the corporate authorities of a non-home rule 
20municipality may, until July 1, 2030, use the proceeds of the 
21tax for expenditure on municipal operations, in addition to or 
22in lieu of any expenditure on public infrastructure or for 
23property tax relief. The tax imposed may not be more than 1% 
24and may be imposed only in 1/4% increments. The tax may not be 
25imposed on tangible personal property taxed at the 1% rate 
 
 
10300HB4951sam002- 706 -LRB103 38094 HLH 74177 a


1under the Retailers' Occupation Tax Act (or at the 0% rate 
2imposed under this amendatory Act of the 102nd General 
3Assembly). Beginning December 1, 2019, this tax is not imposed 
4on sales of aviation fuel unless the tax revenue is expended 
5for airport-related purposes. If a municipality does not have 
6an airport-related purpose to which it dedicates aviation fuel 
7tax revenue, then aviation fuel is excluded from the tax. Each 
8municipality must comply with the certification requirements 
9for airport-related purposes under Section 2-22 of the 
10Retailers' Occupation Tax Act. For purposes of this Section, 
11"airport-related purposes" has the meaning ascribed in Section 
126z-20.2 of the State Finance Act. This exclusion for aviation 
13fuel only applies for so long as the revenue use requirements 
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
15municipality. The tax imposed by a municipality pursuant to 
16this Section and all civil penalties that may be assessed as an 
17incident thereof shall be collected and enforced by the State 
18Department of Revenue. The certificate of registration which 
19is issued by the Department to a retailer under the Retailers' 
20Occupation Tax Act shall permit such retailer to engage in a 
21business which is taxable under any ordinance or resolution 
22enacted pursuant to this Section without registering 
23separately with the Department under such ordinance or 
24resolution or under this Section. The Department shall have 
25full power to administer and enforce this Section; to collect 
26all taxes and penalties due hereunder; to dispose of taxes and 
 
 
10300HB4951sam002- 707 -LRB103 38094 HLH 74177 a


1penalties so collected in the manner hereinafter provided, and 
2to determine all rights to credit memoranda, arising on 
3account of the erroneous payment of tax or penalty hereunder. 
4In the administration of, and compliance with, this Section, 
5the Department and persons who are subject to this Section 
6shall have the same rights, remedies, privileges, immunities, 
7powers and duties, and be subject to the same conditions, 
8restrictions, limitations, penalties and definitions of terms, 
9and employ the same modes of procedure, as are prescribed in 
10Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in 
11respect to all provisions therein other than the State rate of 
12tax), 2c, 3 (except as to the disposition of taxes and 
13penalties collected, and except that the retailer's discount 
14is not allowed for taxes paid on aviation fuel that are subject 
15to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
16U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 
175k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the 
18Retailers' Occupation Tax Act and Section 3-7 of the Uniform 
19Penalty and Interest Act as fully as if those provisions were 
20set forth herein.
21 No municipality may impose a tax under this Section unless 
22the municipality also imposes a tax at the same rate under 
23Section 8-11-1.4 of this Code.
24 If, on January 1, 2025, a unit of local government has in 
25effect a tax under this Section, or if, after January 1, 2025, 
26a unit of local government imposes a tax under this Section, 
 
 
10300HB4951sam002- 708 -LRB103 38094 HLH 74177 a


1then that tax applies to leases of tangible personal property 
2in effect, entered into, or renewed on or after that date in 
3the same manner as the tax under this Section and in accordance 
4with the changes made by this amendatory Act of the 103rd 
5General Assembly. 
6 Persons subject to any tax imposed pursuant to the 
7authority granted in this Section may reimburse themselves for 
8their seller's tax liability hereunder by separately stating 
9such tax as an additional charge, which charge may be stated in 
10combination, in a single amount, with State tax which sellers 
11are required to collect under the Use Tax Act, pursuant to such 
12bracket schedules as the Department may prescribe.
13 Whenever the Department determines that a refund should be 
14made under this Section to a claimant instead of issuing a 
15credit memorandum, the Department shall notify the State 
16Comptroller, who shall cause the order to be drawn for the 
17amount specified, and to the person named, in such 
18notification from the Department. Such refund shall be paid by 
19the State Treasurer out of the non-home rule municipal 
20retailers' occupation tax fund or the Local Government 
21Aviation Trust Fund, as appropriate.
22 Except as otherwise provided, the Department shall 
23forthwith pay over to the State Treasurer, ex officio, as 
24trustee, all taxes and penalties collected hereunder for 
25deposit into the Non-Home Rule Municipal Retailers' Occupation 
26Tax Fund. Taxes and penalties collected on aviation fuel sold 
 
 
10300HB4951sam002- 709 -LRB103 38094 HLH 74177 a


1on or after December 1, 2019, shall be immediately paid over by 
2the Department to the State Treasurer, ex officio, as trustee, 
3for deposit into the Local Government Aviation Trust Fund. The 
4Department shall only pay moneys into the Local Government 
5Aviation Trust Fund under this Section for so long as the 
6revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
747133 are binding on the municipality. 
8 As soon as possible after the first day of each month, 
9beginning January 1, 2011, upon certification of the 
10Department of Revenue, the Comptroller shall order 
11transferred, and the Treasurer shall transfer, to the STAR 
12Bonds Revenue Fund the local sales tax increment, as defined 
13in the Innovation Development and Economy Act, collected under 
14this Section during the second preceding calendar month for 
15sales within a STAR bond district.
16 After the monthly transfer to the STAR Bonds Revenue Fund, 
17on or before the 25th day of each calendar month, the 
18Department shall prepare and certify to the Comptroller the 
19disbursement of stated sums of money to named municipalities, 
20the municipalities to be those from which retailers have paid 
21taxes or penalties hereunder to the Department during the 
22second preceding calendar month. The amount to be paid to each 
23municipality shall be the amount (not including credit 
24memoranda and not including taxes and penalties collected on 
25aviation fuel sold on or after December 1, 2019) collected 
26hereunder during the second preceding calendar month by the 
 
 
10300HB4951sam002- 710 -LRB103 38094 HLH 74177 a


1Department plus an amount the Department determines is 
2necessary to offset any amounts which were erroneously paid to 
3a different taxing body, and not including an amount equal to 
4the amount of refunds made during the second preceding 
5calendar month by the Department on behalf of such 
6municipality, and not including any amount which the 
7Department determines is necessary to offset any amounts which 
8were payable to a different taxing body but were erroneously 
9paid to the municipality, and not including any amounts that 
10are transferred to the STAR Bonds Revenue Fund, less 1.5% of 
11the remainder, which the Department shall transfer into the 
12Tax Compliance and Administration Fund. The Department, at the 
13time of each monthly disbursement to the municipalities, shall 
14prepare and certify to the State Comptroller the amount to be 
15transferred into the Tax Compliance and Administration Fund 
16under this Section. Within 10 days after receipt, by the 
17Comptroller, of the disbursement certification to the 
18municipalities and the Tax Compliance and Administration Fund 
19provided for in this Section to be given to the Comptroller by 
20the Department, the Comptroller shall cause the orders to be 
21drawn for the respective amounts in accordance with the 
22directions contained in such certification.
23 For the purpose of determining the local governmental unit 
24whose tax is applicable, a retail sale, by a producer of coal 
25or other mineral mined in Illinois, is a sale at retail at the 
26place where the coal or other mineral mined in Illinois is 
 
 
10300HB4951sam002- 711 -LRB103 38094 HLH 74177 a


1extracted from the earth. This paragraph does not apply to 
2coal or other mineral when it is delivered or shipped by the 
3seller to the purchaser at a point outside Illinois so that the 
4sale is exempt under the Federal Constitution as a sale in 
5interstate or foreign commerce.
6 Nothing in this Section shall be construed to authorize a 
7municipality to impose a tax upon the privilege of engaging in 
8any business which under the constitution of the United States 
9may not be made the subject of taxation by this State.
10 When certifying the amount of a monthly disbursement to a 
11municipality under this Section, the Department shall increase 
12or decrease such amount by an amount necessary to offset any 
13misallocation of previous disbursements. The offset amount 
14shall be the amount erroneously disbursed within the previous 
156 months from the time a misallocation is discovered.
16 The Department of Revenue shall implement Public Act 
1791-649 so as to collect the tax on and after January 1, 2002.
18 As used in this Section, "municipal" and "municipality" 
19mean a city, village, or incorporated town, including an 
20incorporated town which has superseded a civil township.
21 This Section shall be known and may be cited as the 
22Non-Home Rule Municipal Retailers' Occupation Tax Act.
23(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20; 
24101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 
254-19-22.)

 
 
10300HB4951sam002- 712 -LRB103 38094 HLH 74177 a


1 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
2 Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation 
3Tax Act. The corporate authorities of a non-home rule 
4municipality may impose a tax upon all persons engaged, in 
5such municipality, in the business of making sales of service 
6for expenditure on public infrastructure or for property tax 
7relief or both as defined in Section 8-11-1.2 if approved by 
8referendum as provided in Section 8-11-1.1, of the selling 
9price of all tangible personal property transferred by such 
10servicemen either in the form of tangible personal property or 
11in the form of real estate as an incident to a sale of service. 
12If the tax is approved by referendum on or after July 14, 2010 
13(the effective date of Public Act 96-1057), the corporate 
14authorities of a non-home rule municipality may, until 
15December 31, 2030, use the proceeds of the tax for expenditure 
16on municipal operations, in addition to or in lieu of any 
17expenditure on public infrastructure or for property tax 
18relief. The tax imposed may not be more than 1% and may be 
19imposed only in 1/4% increments. The tax may not be imposed on 
20tangible personal property taxed at the 1% rate under the 
21Service Occupation Tax Act (or at the 0% rate imposed under 
22this amendatory Act of the 102nd General Assembly). Beginning 
23December 1, 2019, this tax is not imposed on sales of aviation 
24fuel unless the tax revenue is expended for airport-related 
25purposes. If a municipality does not have an airport-related 
26purpose to which it dedicates aviation fuel tax revenue, then 
 
 
10300HB4951sam002- 713 -LRB103 38094 HLH 74177 a


1aviation fuel is excluded from the tax. Each municipality must 
2comply with the certification requirements for airport-related 
3purposes under Section 2-22 of the Retailers' Occupation Tax 
4Act. For purposes of this Section, "airport-related purposes" 
5has the meaning ascribed in Section 6z-20.2 of the State 
6Finance Act. This exclusion for aviation fuel only applies for 
7so long as the revenue use requirements of 49 U.S.C. 47107(b) 
8and 49 U.S.C. 47133 are binding on the municipality. The tax 
9imposed by a municipality pursuant to this Section and all 
10civil penalties that may be assessed as an incident thereof 
11shall be collected and enforced by the State Department of 
12Revenue. The certificate of registration which is issued by 
13the Department to a retailer under the Retailers' Occupation 
14Tax Act or under the Service Occupation Tax Act shall permit 
15such registrant to engage in a business which is taxable under 
16any ordinance or resolution enacted pursuant to this Section 
17without registering separately with the Department under such 
18ordinance or resolution or under this Section. The Department 
19shall have full power to administer and enforce this Section; 
20to collect all taxes and penalties due hereunder; to dispose 
21of taxes and penalties so collected in the manner hereinafter 
22provided, and to determine all rights to credit memoranda 
23arising on account of the erroneous payment of tax or penalty 
24hereunder. In the administration of, and compliance with, this 
25Section the Department and persons who are subject to this 
26Section shall have the same rights, remedies, privileges, 
 
 
10300HB4951sam002- 714 -LRB103 38094 HLH 74177 a


1immunities, powers and duties, and be subject to the same 
2conditions, restrictions, limitations, penalties and 
3definitions of terms, and employ the same modes of procedure, 
4as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 
5respect to all provisions therein other than the State rate of 
6tax), 4 (except that the reference to the State shall be to the 
7taxing municipality), 5, 7, 8 (except that the jurisdiction to 
8which the tax shall be a debt to the extent indicated in that 
9Section 8 shall be the taxing municipality), 9 (except as to 
10the disposition of taxes and penalties collected, and except 
11that the returned merchandise credit for this municipal tax 
12may not be taken against any State tax, and except that the 
13retailer's discount is not allowed for taxes paid on aviation 
14fuel that are subject to the revenue use requirements of 49 
15U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the 
16reference therein to Section 2b of the Retailers' Occupation 
17Tax Act), 13 (except that any reference to the State shall mean 
18the taxing municipality), the first paragraph of Section 15, 
1916, 17, 18, 19 and 20 of the Service Occupation Tax Act and 
20Section 3-7 of the Uniform Penalty and Interest Act, as fully 
21as if those provisions were set forth herein.
22 No municipality may impose a tax under this Section unless 
23the municipality also imposes a tax at the same rate under 
24Section 8-11-1.3 of this Code.
25 If, on January 1, 2025, a unit of local government has in 
26effect a tax under this Section, or if, after January 1, 2025, 
 
 
10300HB4951sam002- 715 -LRB103 38094 HLH 74177 a


1a unit of local government imposes a tax under this Section, 
2then that tax applies to leases of tangible personal property 
3in effect, entered into, or renewed on or after that date in 
4the same manner as the tax under this Section and in accordance 
5with the changes made by this amendatory Act of the 103rd 
6General Assembly. 
7 Persons subject to any tax imposed pursuant to the 
8authority granted in this Section may reimburse themselves for 
9their serviceman's tax liability hereunder by separately 
10stating such tax as an additional charge, which charge may be 
11stated in combination, in a single amount, with State tax 
12which servicemen are authorized to collect under the Service 
13Use Tax Act, pursuant to such bracket schedules as the 
14Department may prescribe.
15 Whenever the Department determines that a refund should be 
16made under this Section to a claimant instead of issuing 
17credit memorandum, the Department shall notify the State 
18Comptroller, who shall cause the order to be drawn for the 
19amount specified, and to the person named, in such 
20notification from the Department. Such refund shall be paid by 
21the State Treasurer out of the municipal retailers' occupation 
22tax fund or the Local Government Aviation Trust Fund, as 
23appropriate.
24 Except as otherwise provided in this paragraph, the 
25Department shall forthwith pay over to the State Treasurer, ex 
26officio, as trustee, all taxes and penalties collected 
 
 
10300HB4951sam002- 716 -LRB103 38094 HLH 74177 a


1hereunder for deposit into the municipal retailers' occupation 
2tax fund. Taxes and penalties collected on aviation fuel sold 
3on or after December 1, 2019, shall be immediately paid over by 
4the Department to the State Treasurer, ex officio, as trustee, 
5for deposit into the Local Government Aviation Trust Fund. The 
6Department shall only pay moneys into the Local Government 
7Aviation Trust Fund under this Section for so long as the 
8revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
947133 are binding on the municipality. 
10 As soon as possible after the first day of each month, 
11beginning January 1, 2011, upon certification of the 
12Department of Revenue, the Comptroller shall order 
13transferred, and the Treasurer shall transfer, to the STAR 
14Bonds Revenue Fund the local sales tax increment, as defined 
15in the Innovation Development and Economy Act, collected under 
16this Section during the second preceding calendar month for 
17sales within a STAR bond district.
18 After the monthly transfer to the STAR Bonds Revenue Fund, 
19on or before the 25th day of each calendar month, the 
20Department shall prepare and certify to the Comptroller the 
21disbursement of stated sums of money to named municipalities, 
22the municipalities to be those from which suppliers and 
23servicemen have paid taxes or penalties hereunder to the 
24Department during the second preceding calendar month. The 
25amount to be paid to each municipality shall be the amount (not 
26including credit memoranda and not including taxes and 
 
 
10300HB4951sam002- 717 -LRB103 38094 HLH 74177 a


1penalties collected on aviation fuel sold on or after December 
21, 2019) collected hereunder during the second preceding 
3calendar month by the Department, and not including an amount 
4equal to the amount of refunds made during the second 
5preceding calendar month by the Department on behalf of such 
6municipality, and not including any amounts that are 
7transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
8remainder, which the Department shall transfer into the Tax 
9Compliance and Administration Fund. The Department, at the 
10time of each monthly disbursement to the municipalities, shall 
11prepare and certify to the State Comptroller the amount to be 
12transferred into the Tax Compliance and Administration Fund 
13under this Section. Within 10 days after receipt, by the 
14Comptroller, of the disbursement certification to the 
15municipalities, the General Revenue Fund, and the Tax 
16Compliance and Administration Fund provided for in this 
17Section to be given to the Comptroller by the Department, the 
18Comptroller shall cause the orders to be drawn for the 
19respective amounts in accordance with the directions contained 
20in such certification.
21 The Department of Revenue shall implement Public Act 
2291-649 so as to collect the tax on and after January 1, 2002.
23 Nothing in this Section shall be construed to authorize a 
24municipality to impose a tax upon the privilege of engaging in 
25any business which under the constitution of the United States 
26may not be made the subject of taxation by this State.
 
 
10300HB4951sam002- 718 -LRB103 38094 HLH 74177 a


1 As used in this Section, "municipal" or "municipality" 
2means or refers to a city, village or incorporated town, 
3including an incorporated town which has superseded a civil 
4township.
5 This Section shall be known and may be cited as the 
6"Non-Home Rule Municipal Service Occupation Tax Act".
7(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)

8 (65 ILCS 5/8-11-1.6)
9 Sec. 8-11-1.6. Non-home rule municipal retailers' 
10occupation tax; municipalities between 20,000 and 25,000. The 
11corporate authorities of a non-home rule municipality with a 
12population of more than 20,000 but less than 25,000 that has, 
13prior to January 1, 1987, established a Redevelopment Project 
14Area that has been certified as a State Sales Tax Boundary and 
15has issued bonds or otherwise incurred indebtedness to pay for 
16costs in excess of $5,000,000, which is secured in part by a 
17tax increment allocation fund, in accordance with the 
18provisions of Division 11-74.4 of this Code may, by passage of 
19an ordinance, impose a tax upon all persons engaged in the 
20business of selling tangible personal property, other than on 
21an item of tangible personal property that is titled and 
22registered by an agency of this State's Government, at retail 
23in the municipality. This tax may not be imposed on tangible 
24personal property taxed at the 1% rate under the Retailers' 
25Occupation Tax Act (or at the 0% rate imposed under this 
 
 
10300HB4951sam002- 719 -LRB103 38094 HLH 74177 a


1amendatory Act of the 102nd General Assembly). Beginning 
2December 1, 2019, this tax is not imposed on sales of aviation 
3fuel unless the tax revenue is expended for airport-related 
4purposes. If a municipality does not have an airport-related 
5purpose to which it dedicates aviation fuel tax revenue, then 
6aviation fuel is excluded from the tax. Each municipality must 
7comply with the certification requirements for airport-related 
8purposes under Section 2-22 of the Retailers' Occupation Tax 
9Act. For purposes of this Section, "airport-related purposes" 
10has the meaning ascribed in Section 6z-20.2 of the State 
11Finance Act. This exclusion for aviation fuel only applies for 
12so long as the revenue use requirements of 49 U.S.C. 47107(b) 
13and 49 U.S.C. 47133 are binding on the municipality. If 
14imposed, the tax shall only be imposed in .25% increments of 
15the gross receipts from such sales made in the course of 
16business. Any tax imposed by a municipality under this Section 
17and all civil penalties that may be assessed as an incident 
18thereof shall be collected and enforced by the State 
19Department of Revenue. An ordinance imposing a tax hereunder 
20or effecting a change in the rate thereof shall be adopted and 
21a certified copy thereof filed with the Department on or 
22before the first day of October, whereupon the Department 
23shall proceed to administer and enforce this Section as of the 
24first day of January next following such adoption and filing. 
25The certificate of registration that is issued by the 
26Department to a retailer under the Retailers' Occupation Tax 
 
 
10300HB4951sam002- 720 -LRB103 38094 HLH 74177 a


1Act shall permit the retailer to engage in a business that is 
2taxable under any ordinance or resolution enacted under this 
3Section without registering separately with the Department 
4under the ordinance or resolution or under this Section. The 
5Department shall have full power to administer and enforce 
6this Section, to collect all taxes and penalties due 
7hereunder, to dispose of taxes and penalties so collected in 
8the manner hereinafter provided, and to determine all rights 
9to credit memoranda, arising on account of the erroneous 
10payment of tax or penalty hereunder. In the administration of, 
11and compliance with this Section, the Department and persons 
12who are subject to this Section shall have the same rights, 
13remedies, privileges, immunities, powers, and duties, and be 
14subject to the same conditions, restrictions, limitations, 
15penalties, and definitions of terms, and employ the same modes 
16of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, 
171e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions 
18therein other than the State rate of tax), 2c, 3 (except as to 
19the disposition of taxes and penalties collected, and except 
20that the retailer's discount is not allowed for taxes paid on 
21aviation fuel that are subject to the revenue use requirements 
22of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 
235d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 
2410, 11, 12 and 13 of the Retailers' Occupation Tax Act and 
25Section 3-7 of the Uniform Penalty and Interest Act as fully as 
26if those provisions were set forth herein.
 
 
10300HB4951sam002- 721 -LRB103 38094 HLH 74177 a


1 A tax may not be imposed by a municipality under this 
2Section unless the municipality also imposes a tax at the same 
3rate under Section 8-11-1.7 of this Act.
4 If, on January 1, 2025, a unit of local government has in 
5effect a tax under this Section, or if, after January 1, 2025, 
6a unit of local government imposes a tax under this Section, 
7then that tax applies to leases of tangible personal property 
8in effect, entered into, or renewed on or after that date in 
9the same manner as the tax under this Section and in accordance 
10with the changes made by this amendatory Act of the 103rd 
11General Assembly. 
12 Persons subject to any tax imposed under the authority 
13granted in this Section may reimburse themselves for their 
14seller's tax liability hereunder by separately stating the tax 
15as an additional charge, which charge may be stated in 
16combination, in a single amount, with State tax which sellers 
17are required to collect under the Use Tax Act, pursuant to such 
18bracket schedules as the Department may prescribe.
19 Whenever the Department determines that a refund should be 
20made under this Section to a claimant, instead of issuing a 
21credit memorandum, the Department shall notify the State 
22Comptroller, who shall cause the order to be drawn for the 
23amount specified, and to the person named in the notification 
24from the Department. The refund shall be paid by the State 
25Treasurer out of the Non-Home Rule Municipal Retailers' 
26Occupation Tax Fund, which is hereby created or the Local 
 
 
10300HB4951sam002- 722 -LRB103 38094 HLH 74177 a


1Government Aviation Trust Fund, as appropriate.
2 Except as otherwise provided in this paragraph, the 
3Department shall forthwith pay over to the State Treasurer, ex 
4officio, as trustee, all taxes and penalties collected 
5hereunder for deposit into the Non-Home Rule Municipal 
6Retailers' Occupation Tax Fund. Taxes and penalties collected 
7on aviation fuel sold on or after December 1, 2019, shall be 
8immediately paid over by the Department to the State 
9Treasurer, ex officio, as trustee, for deposit into the Local 
10Government Aviation Trust Fund. The Department shall only pay 
11moneys into the Local Government Aviation Trust Fund under 
12this Section for so long as the revenue use requirements of 49 
13U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
14municipality. 
15 As soon as possible after the first day of each month, 
16beginning January 1, 2011, upon certification of the 
17Department of Revenue, the Comptroller shall order 
18transferred, and the Treasurer shall transfer, to the STAR 
19Bonds Revenue Fund the local sales tax increment, as defined 
20in the Innovation Development and Economy Act, collected under 
21this Section during the second preceding calendar month for 
22sales within a STAR bond district.
23 After the monthly transfer to the STAR Bonds Revenue Fund, 
24on or before the 25th day of each calendar month, the 
25Department shall prepare and certify to the Comptroller the 
26disbursement of stated sums of money to named municipalities, 
 
 
10300HB4951sam002- 723 -LRB103 38094 HLH 74177 a


1the municipalities to be those from which retailers have paid 
2taxes or penalties hereunder to the Department during the 
3second preceding calendar month. The amount to be paid to each 
4municipality shall be the amount (not including credit 
5memoranda and not including taxes and penalties collected on 
6aviation fuel sold on or after December 1, 2019) collected 
7hereunder during the second preceding calendar month by the 
8Department plus an amount the Department determines is 
9necessary to offset any amounts that were erroneously paid to 
10a different taxing body, and not including an amount equal to 
11the amount of refunds made during the second preceding 
12calendar month by the Department on behalf of the 
13municipality, and not including any amount that the Department 
14determines is necessary to offset any amounts that were 
15payable to a different taxing body but were erroneously paid 
16to the municipality, and not including any amounts that are 
17transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
18remainder, which the Department shall transfer into the Tax 
19Compliance and Administration Fund. The Department, at the 
20time of each monthly disbursement to the municipalities, shall 
21prepare and certify to the State Comptroller the amount to be 
22transferred into the Tax Compliance and Administration Fund 
23under this Section. Within 10 days after receipt by the 
24Comptroller of the disbursement certification to the 
25municipalities and the Tax Compliance and Administration Fund 
26provided for in this Section to be given to the Comptroller by 
 
 
10300HB4951sam002- 724 -LRB103 38094 HLH 74177 a


1the Department, the Comptroller shall cause the orders to be 
2drawn for the respective amounts in accordance with the 
3directions contained in the certification.
4 For the purpose of determining the local governmental unit 
5whose tax is applicable, a retail sale by a producer of coal or 
6other mineral mined in Illinois is a sale at retail at the 
7place where the coal or other mineral mined in Illinois is 
8extracted from the earth. This paragraph does not apply to 
9coal or other mineral when it is delivered or shipped by the 
10seller to the purchaser at a point outside Illinois so that the 
11sale is exempt under the federal Constitution as a sale in 
12interstate or foreign commerce.
13 Nothing in this Section shall be construed to authorize a 
14municipality to impose a tax upon the privilege of engaging in 
15any business which under the constitution of the United States 
16may not be made the subject of taxation by this State.
17 When certifying the amount of a monthly disbursement to a 
18municipality under this Section, the Department shall increase 
19or decrease the amount by an amount necessary to offset any 
20misallocation of previous disbursements. The offset amount 
21shall be the amount erroneously disbursed within the previous 
226 months from the time a misallocation is discovered.
23 As used in this Section, "municipal" and "municipality" 
24means a city, village, or incorporated town, including an 
25incorporated town that has superseded a civil township.
26(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
 
 
10300HB4951sam002- 725 -LRB103 38094 HLH 74177 a


1101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

2 (65 ILCS 5/8-11-1.7)
3 Sec. 8-11-1.7. Non-home rule municipal service occupation 
4tax; municipalities between 20,000 and 25,000. The corporate 
5authorities of a non-home rule municipality with a population 
6of more than 20,000 but less than 25,000 as determined by the 
7last preceding decennial census that has, prior to January 1, 
81987, established a Redevelopment Project Area that has been 
9certified as a State Sales Tax Boundary and has issued bonds or 
10otherwise incurred indebtedness to pay for costs in excess of 
11$5,000,000, which is secured in part by a tax increment 
12allocation fund, in accordance with the provisions of Division 
1311-74.4 of this Code may, by passage of an ordinance, impose a 
14tax upon all persons engaged in the municipality in the 
15business of making sales of service. If imposed, the tax shall 
16only be imposed in .25% increments of the selling price of all 
17tangible personal property transferred by such servicemen 
18either in the form of tangible personal property or in the form 
19of real estate as an incident to a sale of service. This tax 
20may not be imposed on tangible personal property taxed at the 
211% rate under the Service Occupation Tax Act (or at the 0% rate 
22imposed under this amendatory Act of the 102nd General 
23Assembly). Beginning December 1, 2019, this tax is not imposed 
24on sales of aviation fuel unless the tax revenue is expended 
25for airport-related purposes. If a municipality does not have 
 
 
10300HB4951sam002- 726 -LRB103 38094 HLH 74177 a


1an airport-related purpose to which it dedicates aviation fuel 
2tax revenue, then aviation fuel is excluded from the tax. Each 
3municipality must comply with the certification requirements 
4for airport-related purposes under Section 2-22 of the 
5Retailers' Occupation Tax Act. For purposes of this Section, 
6"airport-related purposes" has the meaning ascribed in Section 
76z-20.2 of the State Finance Act. This exclusion for aviation 
8fuel only applies for so long as the revenue use requirements 
9of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
10municipality. The tax imposed by a municipality under this 
11Section and all civil penalties that may be assessed as an 
12incident thereof shall be collected and enforced by the State 
13Department of Revenue. An ordinance imposing a tax hereunder 
14or effecting a change in the rate thereof shall be adopted and 
15a certified copy thereof filed with the Department on or 
16before the first day of October, whereupon the Department 
17shall proceed to administer and enforce this Section as of the 
18first day of January next following such adoption and filing. 
19The certificate of registration that is issued by the 
20Department to a retailer under the Retailers' Occupation Tax 
21Act or under the Service Occupation Tax Act shall permit the 
22registrant to engage in a business that is taxable under any 
23ordinance or resolution enacted under this Section without 
24registering separately with the Department under the ordinance 
25or resolution or under this Section. The Department shall have 
26full power to administer and enforce this Section, to collect 
 
 
10300HB4951sam002- 727 -LRB103 38094 HLH 74177 a


1all taxes and penalties due hereunder, to dispose of taxes and 
2penalties so collected in a manner hereinafter provided, and 
3to determine all rights to credit memoranda arising on account 
4of the erroneous payment of tax or penalty hereunder. In the 
5administration of and compliance with this Section, the 
6Department and persons who are subject to this Section shall 
7have the same rights, remedies, privileges, immunities, 
8powers, and duties, and be subject to the same conditions, 
9restrictions, limitations, penalties and definitions of terms, 
10and employ the same modes of procedure, as are prescribed in 
11Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all 
12provisions therein other than the State rate of tax), 4 
13(except that the reference to the State shall be to the taxing 
14municipality), 5, 7, 8 (except that the jurisdiction to which 
15the tax shall be a debt to the extent indicated in that Section 
168 shall be the taxing municipality), 9 (except as to the 
17disposition of taxes and penalties collected, and except that 
18the returned merchandise credit for this municipal tax may not 
19be taken against any State tax, and except that the retailer's 
20discount is not allowed for taxes paid on aviation fuel that 
21are subject to the revenue use requirements of 49 U.S.C. 
2247107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the 
23reference therein to Section 2b of the Retailers' Occupation 
24Tax Act), 13 (except that any reference to the State shall mean 
25the taxing municipality), the first paragraph of Sections 15, 
2616, 17, 18, 19, and 20 of the Service Occupation Tax Act and 
 
 
10300HB4951sam002- 728 -LRB103 38094 HLH 74177 a


1Section 3-7 of the Uniform Penalty and Interest Act, as fully 
2as if those provisions were set forth herein.
3 A tax may not be imposed by a municipality under this 
4Section unless the municipality also imposes a tax at the same 
5rate under Section 8-11-1.6 of this Act.
6 If, on January 1, 2025, a unit of local government has in 
7effect a tax under this Section, or if, after January 1, 2025, 
8a unit of local government imposes a tax under this Section, 
9then that tax applies to leases of tangible personal property 
10in effect, entered into, or renewed on or after that date in 
11the same manner as the tax under this Section and in accordance 
12with the changes made by this amendatory Act of the 103rd 
13General Assembly. 
14 Person subject to any tax imposed under the authority 
15granted in this Section may reimburse themselves for their 
16servicemen's tax liability hereunder by separately stating the 
17tax as an additional charge, which charge may be stated in 
18combination, in a single amount, with State tax that 
19servicemen are authorized to collect under the Service Use Tax 
20Act, under such bracket schedules as the Department may 
21prescribe.
22 Whenever the Department determines that a refund should be 
23made under this Section to a claimant instead of issuing 
24credit memorandum, the Department shall notify the State 
25Comptroller, who shall cause the order to be drawn for the 
26amount specified, and to the person named, in such 
 
 
10300HB4951sam002- 729 -LRB103 38094 HLH 74177 a


1notification from the Department. The refund shall be paid by 
2the State Treasurer out of the Non-Home Rule Municipal 
3Retailers' Occupation Tax Fund or the Local Government 
4Aviation Trust Fund, as appropriate.
5 Except as otherwise provided in this paragraph, the 
6Department shall forthwith pay over to the State Treasurer, ex 
7officio, as trustee, all taxes and penalties collected 
8hereunder for deposit into the Non-Home Rule Municipal 
9Retailers' Occupation Tax Fund. Taxes and penalties collected 
10on aviation fuel sold on or after December 1, 2019, shall be 
11immediately paid over by the Department to the State 
12Treasurer, ex officio, as trustee, for deposit into the Local 
13Government Aviation Trust Fund. The Department shall only pay 
14moneys into the Local Government Aviation Trust Fund under 
15this Section for so long as the revenue use requirements of 49 
16U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
17Municipality. 
18 As soon as possible after the first day of each month, 
19beginning January 1, 2011, upon certification of the 
20Department of Revenue, the Comptroller shall order 
21transferred, and the Treasurer shall transfer, to the STAR 
22Bonds Revenue Fund the local sales tax increment, as defined 
23in the Innovation Development and Economy Act, collected under 
24this Section during the second preceding calendar month for 
25sales within a STAR bond district.
26 After the monthly transfer to the STAR Bonds Revenue Fund, 
 
 
10300HB4951sam002- 730 -LRB103 38094 HLH 74177 a


1on or before the 25th day of each calendar month, the 
2Department shall prepare and certify to the Comptroller the 
3disbursement of stated sums of money to named municipalities, 
4the municipalities to be those from which suppliers and 
5servicemen have paid taxes or penalties hereunder to the 
6Department during the second preceding calendar month. The 
7amount to be paid to each municipality shall be the amount (not 
8including credit memoranda and not including taxes and 
9penalties collected on aviation fuel sold on or after December 
101, 2019) collected hereunder during the second preceding 
11calendar month by the Department, and not including an amount 
12equal to the amount of refunds made during the second 
13preceding calendar month by the Department on behalf of such 
14municipality, and not including any amounts that are 
15transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
16remainder, which the Department shall transfer into the Tax 
17Compliance and Administration Fund. The Department, at the 
18time of each monthly disbursement to the municipalities, shall 
19prepare and certify to the State Comptroller the amount to be 
20transferred into the Tax Compliance and Administration Fund 
21under this Section. Within 10 days after receipt by the 
22Comptroller of the disbursement certification to the 
23municipalities, the Tax Compliance and Administration Fund, 
24and the General Revenue Fund, provided for in this Section to 
25be given to the Comptroller by the Department, the Comptroller 
26shall cause the orders to be drawn for the respective amounts 
 
 
10300HB4951sam002- 731 -LRB103 38094 HLH 74177 a


1in accordance with the directions contained in the 
2certification.
3 When certifying the amount of a monthly disbursement to a 
4municipality under this Section, the Department shall increase 
5or decrease the amount by an amount necessary to offset any 
6misallocation of previous disbursements. The offset amount 
7shall be the amount erroneously disbursed within the previous 
86 months from the time a misallocation is discovered.
9 Nothing in this Section shall be construed to authorize a 
10municipality to impose a tax upon the privilege of engaging in 
11any business which under the constitution of the United States 
12may not be made the subject of taxation by this State.
13(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
14101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

15 (65 ILCS 5/11-74.3-6)
16 Sec. 11-74.3-6. Business district revenue and obligations; 
17business district tax allocation fund.
18 (a) If the corporate authorities of a municipality have 
19approved a business district plan, have designated a business 
20district, and have elected to impose a tax by ordinance 
21pursuant to subsection (10) or (11) of Section 11-74.3-3, then 
22each year after the date of the approval of the ordinance but 
23terminating upon the date all business district project costs 
24and all obligations paying or reimbursing business district 
25project costs, if any, have been paid, but in no event later 
 
 
10300HB4951sam002- 732 -LRB103 38094 HLH 74177 a


1than the dissolution date, all amounts generated by the 
2retailers' occupation tax and service occupation tax shall be 
3collected and the tax shall be enforced by the Department of 
4Revenue in the same manner as all retailers' occupation taxes 
5and service occupation taxes imposed in the municipality 
6imposing the tax and all amounts generated by the hotel 
7operators' occupation tax shall be collected and the tax shall 
8be enforced by the municipality in the same manner as all hotel 
9operators' occupation taxes imposed in the municipality 
10imposing the tax. The corporate authorities of the 
11municipality shall deposit the proceeds of the taxes imposed 
12under subsections (10) and (11) of Section 11-74.3-3 into a 
13special fund of the municipality called the "[Name of] 
14Business District Tax Allocation Fund" for the purpose of 
15paying or reimbursing business district project costs and 
16obligations incurred in the payment of those costs.
17 (b) The corporate authorities of a municipality that has 
18designated a business district under this Law may, by 
19ordinance, impose a Business District Retailers' Occupation 
20Tax upon all persons engaged in the business of selling 
21tangible personal property, other than an item of tangible 
22personal property titled or registered with an agency of this 
23State's government, at retail in the business district at a 
24rate not to exceed 1% of the gross receipts from the sales made 
25in the course of such business, to be imposed only in 0.25% 
26increments. The tax may not be imposed on tangible personal 
 
 
10300HB4951sam002- 733 -LRB103 38094 HLH 74177 a


1property taxed at the rate of 1% under the Retailers' 
2Occupation Tax Act (or at the 0% rate imposed under this 
3amendatory Act of the 102nd General Assembly). Beginning 
4December 1, 2019 and through December 31, 2020, this tax is not 
5imposed on sales of aviation fuel unless the tax revenue is 
6expended for airport-related purposes. If the District does 
7not have an airport-related purpose to which it dedicates 
8aviation fuel tax revenue, then aviation fuel is excluded from 
9the tax. Each municipality must comply with the certification 
10requirements for airport-related purposes under Section 2-22 
11of the Retailers' Occupation Tax Act. For purposes of this 
12Section, "airport-related purposes" has the meaning ascribed 
13in Section 6z-20.2 of the State Finance Act. Beginning January 
141, 2021, this tax is not imposed on sales of aviation fuel for 
15so long as the revenue use requirements of 49 U.S.C. 47107(b) 
16and 49 U.S.C. 47133 are binding on the District.
17 The tax imposed under this subsection and all civil 
18penalties that may be assessed as an incident thereof shall be 
19collected and enforced by the Department of Revenue. The 
20certificate of registration that is issued by the Department 
21to a retailer under the Retailers' Occupation Tax Act shall 
22permit the retailer to engage in a business that is taxable 
23under any ordinance or resolution enacted pursuant to this 
24subsection without registering separately with the Department 
25under such ordinance or resolution or under this subsection. 
26The Department of Revenue shall have full power to administer 
 
 
10300HB4951sam002- 734 -LRB103 38094 HLH 74177 a


1and enforce this subsection; to collect all taxes and 
2penalties due under this subsection in the manner hereinafter 
3provided; and to determine all rights to credit memoranda 
4arising on account of the erroneous payment of tax or penalty 
5under this subsection. In the administration of, and 
6compliance with, this subsection, the Department and persons 
7who are subject to this subsection shall have the same rights, 
8remedies, privileges, immunities, powers and duties, and be 
9subject to the same conditions, restrictions, limitations, 
10penalties, exclusions, exemptions, and definitions of terms 
11and employ the same modes of procedure, as are prescribed in 
12Sections 1, 1a through 1o, 2 through 2-65 (in respect to all 
13provisions therein other than the State rate of tax), 2c 
14through 2h, 3 (except as to the disposition of taxes and 
15penalties collected, and except that the retailer's discount 
16is not allowed for taxes paid on aviation fuel that are subject 
17to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
18U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 
196a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers' 
20Occupation Tax Act and all provisions of the Uniform Penalty 
21and Interest Act, as fully as if those provisions were set 
22forth herein.
23 Persons subject to any tax imposed under this subsection 
24may reimburse themselves for their seller's tax liability 
25under this subsection by separately stating the tax as an 
26additional charge, which charge may be stated in combination, 
 
 
10300HB4951sam002- 735 -LRB103 38094 HLH 74177 a


1in a single amount, with State taxes that sellers are required 
2to collect under the Use Tax Act, in accordance with such 
3bracket schedules as the Department may prescribe.
4 Whenever the Department determines that a refund should be 
5made under this subsection to a claimant instead of issuing a 
6credit memorandum, the Department shall notify the State 
7Comptroller, who shall cause the order to be drawn for the 
8amount specified and to the person named in the notification 
9from the Department. The refund shall be paid by the State 
10Treasurer out of the business district retailers' occupation 
11tax fund or the Local Government Aviation Trust Fund, as 
12appropriate.
13 Except as otherwise provided in this paragraph, the 
14Department shall immediately pay over to the State Treasurer, 
15ex officio, as trustee, all taxes, penalties, and interest 
16collected under this subsection for deposit into the business 
17district retailers' occupation tax fund. Taxes and penalties 
18collected on aviation fuel sold on or after December 1, 2019, 
19shall be immediately paid over by the Department to the State 
20Treasurer, ex officio, as trustee, for deposit into the Local 
21Government Aviation Trust Fund. The Department shall only pay 
22moneys into the Local Government Aviation Trust Fund under 
23this Section for so long as the revenue use requirements of 49 
24U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
25District. 
26 As soon as possible after the first day of each month, 
 
 
10300HB4951sam002- 736 -LRB103 38094 HLH 74177 a


1beginning January 1, 2011, upon certification of the 
2Department of Revenue, the Comptroller shall order 
3transferred, and the Treasurer shall transfer, to the STAR 
4Bonds Revenue Fund the local sales tax increment, as defined 
5in the Innovation Development and Economy Act, collected under 
6this subsection during the second preceding calendar month for 
7sales within a STAR bond district.
8 After the monthly transfer to the STAR Bonds Revenue Fund, 
9on or before the 25th day of each calendar month, the 
10Department shall prepare and certify to the Comptroller the 
11disbursement of stated sums of money to named municipalities 
12from the business district retailers' occupation tax fund, the 
13municipalities to be those from which retailers have paid 
14taxes or penalties under this subsection to the Department 
15during the second preceding calendar month. The amount to be 
16paid to each municipality shall be the amount (not including 
17credit memoranda and not including taxes and penalties 
18collected on aviation fuel sold on or after December 1, 2019) 
19collected under this subsection during the second preceding 
20calendar month by the Department plus an amount the Department 
21determines is necessary to offset any amounts that were 
22erroneously paid to a different taxing body, and not including 
23an amount equal to the amount of refunds made during the second 
24preceding calendar month by the Department, less 2% of that 
25amount (except the amount collected on aviation fuel sold on 
26or after December 1, 2019), which shall be deposited into the 
 
 
10300HB4951sam002- 737 -LRB103 38094 HLH 74177 a


1Tax Compliance and Administration Fund and shall be used by 
2the Department, subject to appropriation, to cover the costs 
3of the Department in administering and enforcing the 
4provisions of this subsection, on behalf of such municipality, 
5and not including any amount that the Department determines is 
6necessary to offset any amounts that were payable to a 
7different taxing body but were erroneously paid to the 
8municipality, and not including any amounts that are 
9transferred to the STAR Bonds Revenue Fund. Within 10 days 
10after receipt by the Comptroller of the disbursement 
11certification to the municipalities provided for in this 
12subsection to be given to the Comptroller by the Department, 
13the Comptroller shall cause the orders to be drawn for the 
14respective amounts in accordance with the directions contained 
15in the certification. The proceeds of the tax paid to 
16municipalities under this subsection shall be deposited into 
17the Business District Tax Allocation Fund by the municipality. 
18 An ordinance imposing or discontinuing the tax under this 
19subsection or effecting a change in the rate thereof shall 
20either (i) be adopted and a certified copy thereof filed with 
21the Department on or before the first day of April, whereupon 
22the Department, if all other requirements of this subsection 
23are met, shall proceed to administer and enforce this 
24subsection as of the first day of July next following the 
25adoption and filing; or (ii) be adopted and a certified copy 
26thereof filed with the Department on or before the first day of 
 
 
10300HB4951sam002- 738 -LRB103 38094 HLH 74177 a


1October, whereupon, if all other requirements of this 
2subsection are met, the Department shall proceed to administer 
3and enforce this subsection as of the first day of January next 
4following the adoption and filing.
5 The Department of Revenue shall not administer or enforce 
6an ordinance imposing, discontinuing, or changing the rate of 
7the tax under this subsection, until the municipality also 
8provides, in the manner prescribed by the Department, the 
9boundaries of the business district and each address in the 
10business district in such a way that the Department can 
11determine by its address whether a business is located in the 
12business district. The municipality must provide this boundary 
13and address information to the Department on or before April 1 
14for administration and enforcement of the tax under this 
15subsection by the Department beginning on the following July 1 
16and on or before October 1 for administration and enforcement 
17of the tax under this subsection by the Department beginning 
18on the following January 1. The Department of Revenue shall 
19not administer or enforce any change made to the boundaries of 
20a business district or address change, addition, or deletion 
21until the municipality reports the boundary change or address 
22change, addition, or deletion to the Department in the manner 
23prescribed by the Department. The municipality must provide 
24this boundary change information or address change, addition, 
25or deletion to the Department on or before April 1 for 
26administration and enforcement by the Department of the change 
 
 
10300HB4951sam002- 739 -LRB103 38094 HLH 74177 a


1beginning on the following July 1 and on or before October 1 
2for administration and enforcement by the Department of the 
3change beginning on the following January 1. The retailers in 
4the business district shall be responsible for charging the 
5tax imposed under this subsection. If a retailer is 
6incorrectly included or excluded from the list of those 
7required to collect the tax under this subsection, both the 
8Department of Revenue and the retailer shall be held harmless 
9if they reasonably relied on information provided by the 
10municipality.
11 A municipality that imposes the tax under this subsection 
12must submit to the Department of Revenue any other information 
13as the Department may require for the administration and 
14enforcement of the tax. 
15 When certifying the amount of a monthly disbursement to a 
16municipality under this subsection, the Department shall 
17increase or decrease the amount by an amount necessary to 
18offset any misallocation of previous disbursements. The offset 
19amount shall be the amount erroneously disbursed within the 
20previous 6 months from the time a misallocation is discovered.
21 Nothing in this subsection shall be construed to authorize 
22the municipality to impose a tax upon the privilege of 
23engaging in any business which under the Constitution of the 
24United States may not be made the subject of taxation by this 
25State.
26 If a tax is imposed under this subsection (b), a tax shall 
 
 
10300HB4951sam002- 740 -LRB103 38094 HLH 74177 a


1also be imposed under subsection (c) of this Section.
2 (c) If a tax has been imposed under subsection (b), a 
3Business District Service Occupation Tax shall also be imposed 
4upon all persons engaged, in the business district, in the 
5business of making sales of service, who, as an incident to 
6making those sales of service, transfer tangible personal 
7property within the business district, either in the form of 
8tangible personal property or in the form of real estate as an 
9incident to a sale of service. The tax shall be imposed at the 
10same rate as the tax imposed in subsection (b) and shall not 
11exceed 1% of the selling price of tangible personal property 
12so transferred within the business district, to be imposed 
13only in 0.25% increments. The tax may not be imposed on 
14tangible personal property taxed at the 1% rate under the 
15Service Occupation Tax Act (or at the 0% rate imposed under 
16this amendatory Act of the 102nd General Assembly). Beginning 
17December 1, 2019, this tax is not imposed on sales of aviation 
18fuel unless the tax revenue is expended for airport-related 
19purposes. If the District does not have an airport-related 
20purpose to which it dedicates aviation fuel tax revenue, then 
21aviation fuel is excluded from the tax. Each municipality must 
22comply with the certification requirements for airport-related 
23purposes under Section 2-22 of the Retailers' Occupation Tax 
24Act. For purposes of this Act, "airport-related purposes" has 
25the meaning ascribed in Section 6z-20.2 of the State Finance 
26Act. Beginning January 1, 2021, this tax is not imposed on 
 
 
10300HB4951sam002- 741 -LRB103 38094 HLH 74177 a


1sales of aviation fuel for so long as the revenue use 
2requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
3binding on the District.
4 The tax imposed under this subsection and all civil 
5penalties that may be assessed as an incident thereof shall be 
6collected and enforced by the Department of Revenue. The 
7certificate of registration which is issued by the Department 
8to a retailer under the Retailers' Occupation Tax Act or under 
9the Service Occupation Tax Act shall permit such registrant to 
10engage in a business which is taxable under any ordinance or 
11resolution enacted pursuant to this subsection without 
12registering separately with the Department under such 
13ordinance or resolution or under this subsection. The 
14Department of Revenue shall have full power to administer and 
15enforce this subsection; to collect all taxes and penalties 
16due under this subsection; to dispose of taxes and penalties 
17so collected in the manner hereinafter provided; and to 
18determine all rights to credit memoranda arising on account of 
19the erroneous payment of tax or penalty under this subsection. 
20In the administration of, and compliance with this subsection, 
21the Department and persons who are subject to this subsection 
22shall have the same rights, remedies, privileges, immunities, 
23powers and duties, and be subject to the same conditions, 
24restrictions, limitations, penalties, exclusions, exemptions, 
25and definitions of terms and employ the same modes of 
26procedure as are prescribed in Sections 2, 2a through 2d, 3 
 
 
10300HB4951sam002- 742 -LRB103 38094 HLH 74177 a


1through 3-50 (in respect to all provisions therein other than 
2the State rate of tax), 4 (except that the reference to the 
3State shall be to the business district), 5, 7, 8 (except that 
4the jurisdiction to which the tax shall be a debt to the extent 
5indicated in that Section 8 shall be the municipality), 9 
6(except as to the disposition of taxes and penalties 
7collected, and except that the returned merchandise credit for 
8this tax may not be taken against any State tax, and except 
9that the retailer's discount is not allowed for taxes paid on 
10aviation fuel that are subject to the revenue use requirements 
11of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except 
12the reference therein to Section 2b of the Retailers' 
13Occupation Tax Act), 13 (except that any reference to the 
14State shall mean the municipality), the first paragraph of 
15Section 15, and Sections 16, 17, 18, 19 and 20 of the Service 
16Occupation Tax Act and all provisions of the Uniform Penalty 
17and Interest Act, as fully as if those provisions were set 
18forth herein.
19 Persons subject to any tax imposed under the authority 
20granted in this subsection may reimburse themselves for their 
21serviceman's tax liability hereunder by separately stating the 
22tax as an additional charge, which charge may be stated in 
23combination, in a single amount, with State tax that 
24servicemen are authorized to collect under the Service Use Tax 
25Act, in accordance with such bracket schedules as the 
26Department may prescribe.
 
 
10300HB4951sam002- 743 -LRB103 38094 HLH 74177 a


1 Whenever the Department determines that a refund should be 
2made under this subsection to a claimant instead of issuing 
3credit memorandum, the Department shall notify the State 
4Comptroller, who shall cause the order to be drawn for the 
5amount specified, and to the person named, in such 
6notification from the Department. Such refund shall be paid by 
7the State Treasurer out of the business district retailers' 
8occupation tax fund or the Local Government Aviation Trust 
9Fund, as appropriate.
10 Except as otherwise provided in this paragraph, the 
11Department shall forthwith pay over to the State Treasurer, 
12ex-officio, as trustee, all taxes, penalties, and interest 
13collected under this subsection for deposit into the business 
14district retailers' occupation tax fund. Taxes and penalties 
15collected on aviation fuel sold on or after December 1, 2019, 
16shall be immediately paid over by the Department to the State 
17Treasurer, ex officio, as trustee, for deposit into the Local 
18Government Aviation Trust Fund. The Department shall only pay 
19moneys into the Local Government Aviation Trust Fund under 
20this Section for so long as the revenue use requirements of 49 
21U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
22District.
23 As soon as possible after the first day of each month, 
24beginning January 1, 2011, upon certification of the 
25Department of Revenue, the Comptroller shall order 
26transferred, and the Treasurer shall transfer, to the STAR 
 
 
10300HB4951sam002- 744 -LRB103 38094 HLH 74177 a


1Bonds Revenue Fund the local sales tax increment, as defined 
2in the Innovation Development and Economy Act, collected under 
3this subsection during the second preceding calendar month for 
4sales within a STAR bond district.
5 After the monthly transfer to the STAR Bonds Revenue Fund, 
6on or before the 25th day of each calendar month, the 
7Department shall prepare and certify to the Comptroller the 
8disbursement of stated sums of money to named municipalities 
9from the business district retailers' occupation tax fund, the 
10municipalities to be those from which suppliers and servicemen 
11have paid taxes or penalties under this subsection to the 
12Department during the second preceding calendar month. The 
13amount to be paid to each municipality shall be the amount (not 
14including credit memoranda and not including taxes and 
15penalties collected on aviation fuel sold on or after December 
161, 2019) collected under this subsection during the second 
17preceding calendar month by the Department, less 2% of that 
18amount (except the amount collected on aviation fuel sold on 
19or after December 1, 2019), which shall be deposited into the 
20Tax Compliance and Administration Fund and shall be used by 
21the Department, subject to appropriation, to cover the costs 
22of the Department in administering and enforcing the 
23provisions of this subsection, and not including an amount 
24equal to the amount of refunds made during the second 
25preceding calendar month by the Department on behalf of such 
26municipality, and not including any amounts that are 
 
 
10300HB4951sam002- 745 -LRB103 38094 HLH 74177 a


1transferred to the STAR Bonds Revenue Fund. Within 10 days 
2after receipt, by the Comptroller, of the disbursement 
3certification to the municipalities, provided for in this 
4subsection to be given to the Comptroller by the Department, 
5the Comptroller shall cause the orders to be drawn for the 
6respective amounts in accordance with the directions contained 
7in such certification. The proceeds of the tax paid to 
8municipalities under this subsection shall be deposited into 
9the Business District Tax Allocation Fund by the municipality.
10 An ordinance imposing or discontinuing the tax under this 
11subsection or effecting a change in the rate thereof shall 
12either (i) be adopted and a certified copy thereof filed with 
13the Department on or before the first day of April, whereupon 
14the Department, if all other requirements of this subsection 
15are met, shall proceed to administer and enforce this 
16subsection as of the first day of July next following the 
17adoption and filing; or (ii) be adopted and a certified copy 
18thereof filed with the Department on or before the first day of 
19October, whereupon, if all other conditions of this subsection 
20are met, the Department shall proceed to administer and 
21enforce this subsection as of the first day of January next 
22following the adoption and filing.
23 The Department of Revenue shall not administer or enforce 
24an ordinance imposing, discontinuing, or changing the rate of 
25the tax under this subsection, until the municipality also 
26provides, in the manner prescribed by the Department, the 
 
 
10300HB4951sam002- 746 -LRB103 38094 HLH 74177 a


1boundaries of the business district in such a way that the 
2Department can determine by its address whether a business is 
3located in the business district. The municipality must 
4provide this boundary and address information to the 
5Department on or before April 1 for administration and 
6enforcement of the tax under this subsection by the Department 
7beginning on the following July 1 and on or before October 1 
8for administration and enforcement of the tax under this 
9subsection by the Department beginning on the following 
10January 1. The Department of Revenue shall not administer or 
11enforce any change made to the boundaries of a business 
12district or address change, addition, or deletion until the 
13municipality reports the boundary change or address change, 
14addition, or deletion to the Department in the manner 
15prescribed by the Department. The municipality must provide 
16this boundary change information or address change, addition, 
17or deletion to the Department on or before April 1 for 
18administration and enforcement by the Department of the change 
19beginning on the following July 1 and on or before October 1 
20for administration and enforcement by the Department of the 
21change beginning on the following January 1. The retailers in 
22the business district shall be responsible for charging the 
23tax imposed under this subsection. If a retailer is 
24incorrectly included or excluded from the list of those 
25required to collect the tax under this subsection, both the 
26Department of Revenue and the retailer shall be held harmless 
 
 
10300HB4951sam002- 747 -LRB103 38094 HLH 74177 a


1if they reasonably relied on information provided by the 
2municipality.
3 A municipality that imposes the tax under this subsection 
4must submit to the Department of Revenue any other information 
5as the Department may require for the administration and 
6enforcement of the tax. 
7 Nothing in this subsection shall be construed to authorize 
8the municipality to impose a tax upon the privilege of 
9engaging in any business which under the Constitution of the 
10United States may not be made the subject of taxation by the 
11State.
12 If a tax is imposed under this subsection (c), a tax shall 
13also be imposed under subsection (b) of this Section.
14 (c-5) If, on January 1, 2025, a unit of local government 
15has in effect a tax under this Section, or if, after January 1, 
162025, a unit of local government imposes a tax under this 
17Section, then that tax applies to leases of tangible personal 
18property in effect, entered into, or renewed on or after that 
19date in the same manner as the tax under this Section and in 
20accordance with the changes made by this amendatory Act of the 
21103rd General Assembly. 
22 (d) By ordinance, a municipality that has designated a 
23business district under this Law may impose an occupation tax 
24upon all persons engaged in the business district in the 
25business of renting, leasing, or letting rooms in a hotel, as 
26defined in the Hotel Operators' Occupation Tax Act, at a rate 
 
 
10300HB4951sam002- 748 -LRB103 38094 HLH 74177 a


1not to exceed 1% of the gross rental receipts from the renting, 
2leasing, or letting of hotel rooms within the business 
3district, to be imposed only in 0.25% increments, excluding, 
4however, from gross rental receipts the proceeds of renting, 
5leasing, or letting to permanent residents of a hotel, as 
6defined in the Hotel Operators' Occupation Tax Act, and 
7proceeds from the tax imposed under subsection (c) of Section 
813 of the Metropolitan Pier and Exposition Authority Act.
9 The tax imposed by the municipality under this subsection 
10and all civil penalties that may be assessed as an incident to 
11that tax shall be collected and enforced by the municipality 
12imposing the tax. The municipality shall have full power to 
13administer and enforce this subsection, to collect all taxes 
14and penalties due under this subsection, to dispose of taxes 
15and penalties so collected in the manner provided in this 
16subsection, and to determine all rights to credit memoranda 
17arising on account of the erroneous payment of tax or penalty 
18under this subsection. In the administration of and compliance 
19with this subsection, the municipality and persons who are 
20subject to this subsection shall have the same rights, 
21remedies, privileges, immunities, powers, and duties, shall be 
22subject to the same conditions, restrictions, limitations, 
23penalties, and definitions of terms, and shall employ the same 
24modes of procedure as are employed with respect to a tax 
25adopted by the municipality under Section 8-3-14 of this Code.
26 Persons subject to any tax imposed under the authority 
 
 
10300HB4951sam002- 749 -LRB103 38094 HLH 74177 a


1granted in this subsection may reimburse themselves for their 
2tax liability for that tax by separately stating that tax as an 
3additional charge, which charge may be stated in combination, 
4in a single amount, with State taxes imposed under the Hotel 
5Operators' Occupation Tax Act, and with any other tax.
6 Nothing in this subsection shall be construed to authorize 
7a municipality to impose a tax upon the privilege of engaging 
8in any business which under the Constitution of the United 
9States may not be made the subject of taxation by this State.
10 The proceeds of the tax imposed under this subsection 
11shall be deposited into the Business District Tax Allocation 
12Fund. 
13 (e) Obligations secured by the Business District Tax 
14Allocation Fund may be issued to provide for the payment or 
15reimbursement of business district project costs. Those 
16obligations, when so issued, shall be retired in the manner 
17provided in the ordinance authorizing the issuance of those 
18obligations by the receipts of taxes imposed pursuant to 
19subsections (10) and (11) of Section 11-74.3-3 and by other 
20revenue designated or pledged by the municipality. A 
21municipality may in the ordinance pledge, for any period of 
22time up to and including the dissolution date, all or any part 
23of the funds in and to be deposited in the Business District 
24Tax Allocation Fund to the payment of business district 
25project costs and obligations. Whenever a municipality pledges 
26all of the funds to the credit of a business district tax 
 
 
10300HB4951sam002- 750 -LRB103 38094 HLH 74177 a


1allocation fund to secure obligations issued or to be issued 
2to pay or reimburse business district project costs, the 
3municipality may specifically provide that funds remaining to 
4the credit of such business district tax allocation fund after 
5the payment of such obligations shall be accounted for 
6annually and shall be deemed to be "surplus" funds, and such 
7"surplus" funds shall be expended by the municipality for any 
8business district project cost as approved in the business 
9district plan. Whenever a municipality pledges less than all 
10of the monies to the credit of a business district tax 
11allocation fund to secure obligations issued or to be issued 
12to pay or reimburse business district project costs, the 
13municipality shall provide that monies to the credit of the 
14business district tax allocation fund and not subject to such 
15pledge or otherwise encumbered or required for payment of 
16contractual obligations for specific business district project 
17costs shall be calculated annually and shall be deemed to be 
18"surplus" funds, and such "surplus" funds shall be expended by 
19the municipality for any business district project cost as 
20approved in the business district plan.
21 No obligation issued pursuant to this Law and secured by a 
22pledge of all or any portion of any revenues received or to be 
23received by the municipality from the imposition of taxes 
24pursuant to subsection (10) of Section 11-74.3-3, shall be 
25deemed to constitute an economic incentive agreement under 
26Section 8-11-20, notwithstanding the fact that such pledge 
 
 
10300HB4951sam002- 751 -LRB103 38094 HLH 74177 a


1provides for the sharing, rebate, or payment of retailers' 
2occupation taxes or service occupation taxes imposed pursuant 
3to subsection (10) of Section 11-74.3-3 and received or to be 
4received by the municipality from the development or 
5redevelopment of properties in the business district. 
6 Without limiting the foregoing in this Section, the 
7municipality may further secure obligations secured by the 
8business district tax allocation fund with a pledge, for a 
9period not greater than the term of the obligations and in any 
10case not longer than the dissolution date, of any part or any 
11combination of the following: (i) net revenues of all or part 
12of any business district project; (ii) taxes levied or imposed 
13by the municipality on any or all property in the 
14municipality, including, specifically, taxes levied or imposed 
15by the municipality in a special service area pursuant to the 
16Special Service Area Tax Law; (iii) the full faith and credit 
17of the municipality; (iv) a mortgage on part or all of the 
18business district project; or (v) any other taxes or 
19anticipated receipts that the municipality may lawfully 
20pledge. 
21 Such obligations may be issued in one or more series, bear 
22such date or dates, become due at such time or times as therein 
23provided, but in any case not later than (i) 20 years after the 
24date of issue or (ii) the dissolution date, whichever is 
25earlier, bear interest payable at such intervals and at such 
26rate or rates as set forth therein, except as may be limited by 
 
 
10300HB4951sam002- 752 -LRB103 38094 HLH 74177 a


1applicable law, which rate or rates may be fixed or variable, 
2be in such denominations, be in such form, either coupon, 
3registered, or book-entry, carry such conversion, registration 
4and exchange privileges, be subject to defeasance upon such 
5terms, have such rank or priority, be executed in such manner, 
6be payable in such medium or payment at such place or places 
7within or without the State, make provision for a corporate 
8trustee within or without the State with respect to such 
9obligations, prescribe the rights, powers, and duties thereof 
10to be exercised for the benefit of the municipality and the 
11benefit of the owners of such obligations, provide for the 
12holding in trust, investment, and use of moneys, funds, and 
13accounts held under an ordinance, provide for assignment of 
14and direct payment of the moneys to pay such obligations or to 
15be deposited into such funds or accounts directly to such 
16trustee, be subject to such terms of redemption with or 
17without premium, and be sold at such price, all as the 
18corporate authorities shall determine. No referendum approval 
19of the electors shall be required as a condition to the 
20issuance of obligations pursuant to this Law except as 
21provided in this Section. 
22 In the event the municipality authorizes the issuance of 
23obligations pursuant to the authority of this Law secured by 
24the full faith and credit of the municipality, or pledges ad 
25valorem taxes pursuant to this subsection, which obligations 
26are other than obligations which may be issued under home rule 
 
 
10300HB4951sam002- 753 -LRB103 38094 HLH 74177 a


1powers provided by Section 6 of Article VII of the Illinois 
2Constitution or which ad valorem taxes are other than ad 
3valorem taxes which may be pledged under home rule powers 
4provided by Section 6 of Article VII of the Illinois 
5Constitution or which are levied in a special service area 
6pursuant to the Special Service Area Tax Law, the ordinance 
7authorizing the issuance of those obligations or pledging 
8those taxes shall be published within 10 days after the 
9ordinance has been adopted, in a newspaper having a general 
10circulation within the municipality. The publication of the 
11ordinance shall be accompanied by a notice of (i) the specific 
12number of voters required to sign a petition requesting the 
13question of the issuance of the obligations or pledging such 
14ad valorem taxes to be submitted to the electors; (ii) the time 
15within which the petition must be filed; and (iii) the date of 
16the prospective referendum. The municipal clerk shall provide 
17a petition form to any individual requesting one. 
18 If no petition is filed with the municipal clerk, as 
19hereinafter provided in this Section, within 21 days after the 
20publication of the ordinance, the ordinance shall be in 
21effect. However, if within that 21-day period a petition is 
22filed with the municipal clerk, signed by electors numbering 
23not less than 15% of the number of electors voting for the 
24mayor or president at the last general municipal election, 
25asking that the question of issuing obligations using full 
26faith and credit of the municipality as security for the cost 
 
 
10300HB4951sam002- 754 -LRB103 38094 HLH 74177 a


1of paying or reimbursing business district project costs, or 
2of pledging such ad valorem taxes for the payment of those 
3obligations, or both, be submitted to the electors of the 
4municipality, the municipality shall not be authorized to 
5issue obligations of the municipality using the full faith and 
6credit of the municipality as security or pledging such ad 
7valorem taxes for the payment of those obligations, or both, 
8until the proposition has been submitted to and approved by a 
9majority of the voters voting on the proposition at a 
10regularly scheduled election. The municipality shall certify 
11the proposition to the proper election authorities for 
12submission in accordance with the general election law.
13 The ordinance authorizing the obligations may provide that 
14the obligations shall contain a recital that they are issued 
15pursuant to this Law, which recital shall be conclusive 
16evidence of their validity and of the regularity of their 
17issuance.
18 In the event the municipality authorizes issuance of 
19obligations pursuant to this Law secured by the full faith and 
20credit of the municipality, the ordinance authorizing the 
21obligations may provide for the levy and collection of a 
22direct annual tax upon all taxable property within the 
23municipality sufficient to pay the principal thereof and 
24interest thereon as it matures, which levy may be in addition 
25to and exclusive of the maximum of all other taxes authorized 
26to be levied by the municipality, which levy, however, shall 
 
 
10300HB4951sam002- 755 -LRB103 38094 HLH 74177 a


1be abated to the extent that monies from other sources are 
2available for payment of the obligations and the municipality 
3certifies the amount of those monies available to the county 
4clerk.
5 A certified copy of the ordinance shall be filed with the 
6county clerk of each county in which any portion of the 
7municipality is situated, and shall constitute the authority 
8for the extension and collection of the taxes to be deposited 
9in the business district tax allocation fund.
10 A municipality may also issue its obligations to refund, 
11in whole or in part, obligations theretofore issued by the 
12municipality under the authority of this Law, whether at or 
13prior to maturity. However, the last maturity of the refunding 
14obligations shall not be expressed to mature later than the 
15dissolution date.
16 In the event a municipality issues obligations under home 
17rule powers or other legislative authority, the proceeds of 
18which are pledged to pay or reimburse business district 
19project costs, the municipality may, if it has followed the 
20procedures in conformance with this Law, retire those 
21obligations from funds in the business district tax allocation 
22fund in amounts and in such manner as if those obligations had 
23been issued pursuant to the provisions of this Law.
24 No obligations issued pursuant to this Law shall be 
25regarded as indebtedness of the municipality issuing those 
26obligations or any other taxing district for the purpose of 
 
 
10300HB4951sam002- 756 -LRB103 38094 HLH 74177 a


1any limitation imposed by law.
2 Obligations issued pursuant to this Law shall not be 
3subject to the provisions of the Bond Authorization Act. 
4 (f) When business district project costs, including, 
5without limitation, all obligations paying or reimbursing 
6business district project costs have been paid, any surplus 
7funds then remaining in the Business District Tax Allocation 
8Fund shall be distributed to the municipal treasurer for 
9deposit into the general corporate fund of the municipality. 
10Upon payment of all business district project costs and 
11retirement of all obligations paying or reimbursing business 
12district project costs, but in no event more than 23 years 
13after the date of adoption of the ordinance imposing taxes 
14pursuant to subsection (10) or (11) of Section 11-74.3-3, the 
15municipality shall adopt an ordinance immediately rescinding 
16the taxes imposed pursuant to subsection (10) or (11) of 
17Section 11-74.3-3. 
18(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; 
19102-700, eff. 4-19-22.)

20 Section 75-40. The Civic Center Code is amended by 
21changing Section 245-12 as follows:

22 (70 ILCS 200/245-12)
23 Sec. 245-12. Use and occupation taxes. 
24 (a) The Authority may adopt a resolution that authorizes a 
 
 
10300HB4951sam002- 757 -LRB103 38094 HLH 74177 a


1referendum on the question of whether the Authority shall be 
2authorized to impose a retailers' occupation tax, a service 
3occupation tax, and a use tax in one-quarter percent 
4increments at a rate not to exceed 1%. The Authority shall 
5certify the question to the proper election authorities who 
6shall submit the question to the voters of the metropolitan 
7area at the next regularly scheduled election in accordance 
8with the general election law. The question shall be in 
9substantially the following form: 
10 "Shall the Salem Civic Center Authority be authorized to 
11 impose a retailers' occupation tax, a service occupation 
12 tax, and a use tax at the rate of (rate) for the sole 
13 purpose of obtaining funds for the support, construction, 
14 maintenance, or financing of a facility of the Authority?"
15 Votes shall be recorded as "yes" or "no". 
16 If a majority of all votes cast on the proposition are in 
17favor of the proposition, the Authority is authorized to 
18impose the tax.
19 (b) The Authority shall impose the retailers' occupation 
20tax upon all persons engaged in the business of selling 
21tangible personal property at retail in the metropolitan area, 
22at the rate approved by referendum, on the gross receipts from 
23the sales made in the course of such business within the 
24metropolitan area. Beginning December 1, 2019 and through 
25December 31, 2020, this tax is not imposed on sales of aviation 
26fuel unless the tax revenue is expended for airport-related 
 
 
10300HB4951sam002- 758 -LRB103 38094 HLH 74177 a


1purposes. If the Authority does not have an airport-related 
2purpose to which it dedicates aviation fuel tax revenue, then 
3aviation fuel is excluded from the tax. The Authority must 
4comply with the certification requirements for airport-related 
5purposes under Section 2-22 of the Retailers' Occupation Tax 
6Act. For purposes of this Section, "airport-related purposes" 
7has the meaning ascribed in Section 6z-20.2 of the State 
8Finance Act. Beginning January 1, 2021, this tax is not 
9imposed on sales of aviation fuel for so long as the revenue 
10use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
11binding on the Authority. 
12 The tax imposed under this Section and all civil penalties 
13that may be assessed as an incident thereof shall be collected 
14and enforced by the Department of Revenue. The Department has 
15full power to administer and enforce this Section; to collect 
16all taxes and penalties so collected in the manner provided in 
17this Section; and to determine all rights to credit memoranda 
18arising on account of the erroneous payment of tax or penalty 
19hereunder. In the administration of, and compliance with, this 
20Section, the Department and persons who are subject to this 
21Section shall (i) have the same rights, remedies, privileges, 
22immunities, powers and duties, (ii) be subject to the same 
23conditions, restrictions, limitations, penalties, exclusions, 
24exemptions, and definitions of terms, and (iii) employ the 
25same modes of procedure as are prescribed in Sections 1, 1a, 
261a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 
 
 
10300HB4951sam002- 759 -LRB103 38094 HLH 74177 a


1(in respect to all provisions therein other than the State 
2rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as 
3to the disposition of taxes and penalties collected and 
4provisions related to quarter monthly payments, and except 
5that the retailer's discount is not allowed for taxes paid on 
6aviation fuel that are subject to the revenue use requirements 
7of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 
85d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 
911a, 12, and 13 of the Retailers' Occupation Tax Act and 
10Section 3-7 of the Uniform Penalty and Interest Act, as fully 
11as if those provisions were set forth in this subsection.
12 Persons subject to any tax imposed under this subsection 
13may reimburse themselves for their seller's tax liability by 
14separately stating the tax as an additional charge, which 
15charge may be stated in combination, in a single amount, with 
16State taxes that sellers are required to collect, in 
17accordance with such bracket schedules as the Department may 
18prescribe.
19 Whenever the Department determines that a refund should be 
20made under this subsection to a claimant instead of issuing a 
21credit memorandum, the Department shall notify the State 
22Comptroller, who shall cause the warrant to be drawn for the 
23amount specified, and to the person named, in the notification 
24from the Department. The refund shall be paid by the State 
25Treasurer out of the tax fund referenced under paragraph (g) 
26of this Section or the Local Government Aviation Trust Fund, 
 
 
10300HB4951sam002- 760 -LRB103 38094 HLH 74177 a


1as appropriate.
2 If a tax is imposed under this subsection (b), a tax shall 
3also be imposed at the same rate under subsections (c) and (d) 
4of this Section.
5 For the purpose of determining whether a tax authorized 
6under this Section is applicable, a retail sale, by a producer 
7of coal or other mineral mined in Illinois, is a sale at retail 
8at the place where the coal or other mineral mined in Illinois 
9is extracted from the earth. This paragraph does not apply to 
10coal or other mineral when it is delivered or shipped by the 
11seller to the purchaser at a point outside Illinois so that the 
12sale is exempt under the Federal Constitution as a sale in 
13interstate or foreign commerce.
14 Nothing in this Section shall be construed to authorize 
15the Authority to impose a tax upon the privilege of engaging in 
16any business which under the Constitution of the United States 
17may not be made the subject of taxation by this State.
18 (c) If a tax has been imposed under subsection (b), a 
19service occupation tax shall also be imposed at the same rate 
20upon all persons engaged, in the metropolitan area, in the 
21business of making sales of service, who, as an incident to 
22making those sales of service, transfer tangible personal 
23property within the metropolitan area as an incident to a sale 
24of service. The tax imposed under this subsection and all 
25civil penalties that may be assessed as an incident thereof 
26shall be collected and enforced by the Department of Revenue. 
 
 
10300HB4951sam002- 761 -LRB103 38094 HLH 74177 a


1 Beginning December 1, 2019 and through December 31, 2020, 
2this tax is not imposed on sales of aviation fuel unless the 
3tax revenue is expended for airport-related purposes. If the 
4Authority does not have an airport-related purpose to which it 
5dedicates aviation fuel tax revenue, then aviation fuel is 
6excluded from the tax. The Authority must comply with the 
7certification requirements for airport-related purposes under 
8Section 2-22 of the Retailers' Occupation Tax Act. Beginning 
9January 1, 2021, this tax is not imposed on sales of aviation 
10fuel for so long as the revenue use requirements of 49 U.S.C. 
1147107(b) and 49 U.S.C. 47133 are binding on the Authority. 
12 The Department has full power to administer and enforce 
13this paragraph; to collect all taxes and penalties due 
14hereunder; to dispose of taxes and penalties so collected in 
15the manner hereinafter provided; and to determine all rights 
16to credit memoranda arising on account of the erroneous 
17payment of tax or penalty hereunder. In the administration of, 
18and compliance with this paragraph, the Department and persons 
19who are subject to this paragraph shall (i) have the same 
20rights, remedies, privileges, immunities, powers, and duties, 
21(ii) be subject to the same conditions, restrictions, 
22limitations, penalties, exclusions, exemptions, and 
23definitions of terms, and (iii) employ the same modes of 
24procedure as are prescribed in Sections 2 (except that the 
25reference to State in the definition of supplier maintaining a 
26place of business in this State shall mean the metropolitan 
 
 
10300HB4951sam002- 762 -LRB103 38094 HLH 74177 a


1area), 2a, 2b, 3 through 3-55 (in respect to all provisions 
2therein other than the State rate of tax), 4 (except that the 
3reference to the State shall be to the Authority), 5, 7, 8 
4(except that the jurisdiction to which the tax shall be a debt 
5to the extent indicated in that Section 8 shall be the 
6Authority), 9 (except as to the disposition of taxes and 
7penalties collected, and except that the returned merchandise 
8credit for this tax may not be taken against any State tax, and 
9except that the retailer's discount is not allowed for taxes 
10paid on aviation fuel that are subject to the revenue use 
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, 
1212 (except the reference therein to Section 2b of the 
13Retailers' Occupation Tax Act), 13 (except that any reference 
14to the State shall mean the Authority), 15, 16, 17, 18, 19 and 
1520 of the Service Occupation Tax Act and Section 3-7 of the 
16Uniform Penalty and Interest Act, as fully as if those 
17provisions were set forth herein.
18 Persons subject to any tax imposed under the authority 
19granted in this subsection may reimburse themselves for their 
20serviceman's tax liability by separately stating the tax as an 
21additional charge, which charge may be stated in combination, 
22in a single amount, with State tax that servicemen are 
23authorized to collect under the Service Use Tax Act, in 
24accordance with such bracket schedules as the Department may 
25prescribe.
26 Whenever the Department determines that a refund should be 
 
 
10300HB4951sam002- 763 -LRB103 38094 HLH 74177 a


1made under this subsection to a claimant instead of issuing a 
2credit memorandum, the Department shall notify the State 
3Comptroller, who shall cause the warrant to be drawn for the 
4amount specified, and to the person named, in the notification 
5from the Department. The refund shall be paid by the State 
6Treasurer out of the tax fund referenced under paragraph (g) 
7of this Section or the Local Government Aviation Trust Fund, 
8as appropriate.
9 Nothing in this paragraph shall be construed to authorize 
10the Authority to impose a tax upon the privilege of engaging in 
11any business which under the Constitution of the United States 
12may not be made the subject of taxation by the State.
13 (c-5) If, on January 1, 2025, a unit of local government 
14has in effect a tax under this Section, or if, after January 1, 
152025, a unit of local government imposes a tax under this 
16Section, then that tax applies to leases of tangible personal 
17property in effect, entered into, or renewed on or after that 
18date in the same manner as the tax under this Section and in 
19accordance with the changes made by this amendatory Act of the 
20103rd General Assembly. 
21 (d) If a tax has been imposed under subsection (b), a use 
22tax shall also be imposed at the same rate upon the privilege 
23of using, in the metropolitan area, any item of tangible 
24personal property that is purchased outside the metropolitan 
25area at retail from a retailer, and that is titled or 
26registered at a location within the metropolitan area with an 
 
 
10300HB4951sam002- 764 -LRB103 38094 HLH 74177 a


1agency of this State's government. "Selling price" is defined 
2as in the Use Tax Act. The tax shall be collected from persons 
3whose Illinois address for titling or registration purposes is 
4given as being in the metropolitan area. The tax shall be 
5collected by the Department of Revenue for the Authority. The 
6tax must be paid to the State, or an exemption determination 
7must be obtained from the Department of Revenue, before the 
8title or certificate of registration for the property may be 
9issued. The tax or proof of exemption may be transmitted to the 
10Department by way of the State agency with which, or the State 
11officer with whom, the tangible personal property must be 
12titled or registered if the Department and the State agency or 
13State officer determine that this procedure will expedite the 
14processing of applications for title or registration.
15 The Department has full power to administer and enforce 
16this paragraph; to collect all taxes, penalties and interest 
17due hereunder; to dispose of taxes, penalties and interest so 
18collected in the manner hereinafter provided; and to determine 
19all rights to credit memoranda or refunds arising on account 
20of the erroneous payment of tax, penalty or interest 
21hereunder. In the administration of, and compliance with, this 
22subsection, the Department and persons who are subject to this 
23paragraph shall (i) have the same rights, remedies, 
24privileges, immunities, powers, and duties, (ii) be subject to 
25the same conditions, restrictions, limitations, penalties, 
26exclusions, exemptions, and definitions of terms, and (iii) 
 
 
10300HB4951sam002- 765 -LRB103 38094 HLH 74177 a


1employ the same modes of procedure as are prescribed in 
2Sections 2 (except the definition of "retailer maintaining a 
3place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55, 
43-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction 
5to which the tax shall be a debt to the extent indicated in 
6that Section 8 shall be the Authority), 9 (except provisions 
7relating to quarter monthly payments), 10, 11, 12, 12a, 12b, 
813, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section 
93-7 of the Uniform Penalty and Interest Act, that are not 
10inconsistent with this paragraph, as fully as if those 
11provisions were set forth herein.
12 Whenever the Department determines that a refund should be 
13made under this subsection to a claimant instead of issuing a 
14credit memorandum, the Department shall notify the State 
15Comptroller, who shall cause the order to be drawn for the 
16amount specified, and to the person named, in the notification 
17from the Department. The refund shall be paid by the State 
18Treasurer out of the tax fund referenced under paragraph (g) 
19of this Section.
20 (e) A certificate of registration issued by the State 
21Department of Revenue to a retailer under the Retailers' 
22Occupation Tax Act or under the Service Occupation Tax Act 
23shall permit the registrant to engage in a business that is 
24taxed under the tax imposed under paragraphs (b), (c), or (d) 
25of this Section and no additional registration shall be 
26required. A certificate issued under the Use Tax Act or the 
 
 
10300HB4951sam002- 766 -LRB103 38094 HLH 74177 a


1Service Use Tax Act shall be applicable with regard to any tax 
2imposed under paragraph (c) of this Section.
3 (f) The results of any election authorizing a proposition 
4to impose a tax under this Section or effecting a change in the 
5rate of tax shall be certified by the proper election 
6authorities and filed with the Illinois Department on or 
7before the first day of April. In addition, an ordinance 
8imposing, discontinuing, or effecting a change in the rate of 
9tax under this Section shall be adopted and a certified copy 
10thereof filed with the Department on or before the first day of 
11April. After proper receipt of such certifications, the 
12Department shall proceed to administer and enforce this 
13Section as of the first day of July next following such 
14adoption and filing.
15 (g) Except as otherwise provided, the Department of 
16Revenue shall, upon collecting any taxes and penalties as 
17provided in this Section, pay the taxes and penalties over to 
18the State Treasurer as trustee for the Authority. The taxes 
19and penalties shall be held in a trust fund outside the State 
20Treasury. Taxes and penalties collected on aviation fuel sold 
21on or after December 1, 2019 and through December 31, 2020, 
22shall be immediately paid over by the Department to the State 
23Treasurer, ex officio, as trustee, for deposit into the Local 
24Government Aviation Trust Fund. The Department shall only pay 
25moneys into the Local Government Aviation Trust Fund under 
26this Section for so long as the revenue use requirements of 49 
 
 
10300HB4951sam002- 767 -LRB103 38094 HLH 74177 a


1U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
2District. On or before the 25th day of each calendar month, the 
3Department of Revenue shall prepare and certify to the 
4Comptroller of the State of Illinois the amount to be paid to 
5the Authority, which shall be the balance in the fund, less any 
6amount determined by the Department to be necessary for the 
7payment of refunds and not including taxes and penalties 
8collected on aviation fuel sold on or after December 1, 2019. 
9Within 10 days after receipt by the Comptroller of the 
10certification of the amount to be paid to the Authority, the 
11Comptroller shall cause an order to be drawn for payment for 
12the amount in accordance with the directions contained in the 
13certification. Amounts received from the tax imposed under 
14this Section shall be used only for the support, construction, 
15maintenance, or financing of a facility of the Authority.
16 (h) When certifying the amount of a monthly disbursement 
17to the Authority under this Section, the Department shall 
18increase or decrease the amounts by an amount necessary to 
19offset any miscalculation of previous disbursements. The 
20offset amount shall be the amount erroneously disbursed within 
21the previous 6 months from the time a miscalculation is 
22discovered.
23 (i) This Section may be cited as the Salem Civic Center Use 
24and Occupation Tax Law.
25(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)

 
 
10300HB4951sam002- 768 -LRB103 38094 HLH 74177 a


1 Section 75-45. The Flood Prevention District Act is 
2amended by changing Section 25 as follows:

3 (70 ILCS 750/25)
4 Sec. 25. Flood prevention retailers' and service 
5occupation taxes. 
6 (a) If the Board of Commissioners of a flood prevention 
7district determines that an emergency situation exists 
8regarding levee repair or flood prevention, and upon an 
9ordinance confirming the determination adopted by the 
10affirmative vote of a majority of the members of the county 
11board of the county in which the district is situated, the 
12county may impose a flood prevention retailers' occupation tax 
13upon all persons engaged in the business of selling tangible 
14personal property at retail within the territory of the 
15district to provide revenue to pay the costs of providing 
16emergency levee repair and flood prevention and to secure the 
17payment of bonds, notes, and other evidences of indebtedness 
18issued under this Act for a period not to exceed 25 years or as 
19required to repay the bonds, notes, and other evidences of 
20indebtedness issued under this Act. The tax rate shall be 
210.25% of the gross receipts from all taxable sales made in the 
22course of that business. Beginning December 1, 2019 and 
23through December 31, 2020, this tax is not imposed on sales of 
24aviation fuel unless the tax revenue is expended for 
25airport-related purposes. If the District does not have an 
 
 
10300HB4951sam002- 769 -LRB103 38094 HLH 74177 a


1airport-related purpose to which it dedicates aviation fuel 
2tax revenue, then aviation fuel is excluded from the tax. The 
3County must comply with the certification requirements for 
4airport-related purposes under Section 2-22 of the Retailers' 
5Occupation Tax Act. The tax imposed under this Section and all 
6civil penalties that may be assessed as an incident thereof 
7shall be collected and enforced by the State Department of 
8Revenue. The Department shall have full power to administer 
9and enforce this Section; to collect all taxes and penalties 
10so collected in the manner hereinafter provided; and to 
11determine all rights to credit memoranda arising on account of 
12the erroneous payment of tax or penalty hereunder. 
13 For purposes of this Act, "airport-related purposes" has 
14the meaning ascribed in Section 6z-20.2 of the State Finance 
15Act. Beginning January 1, 2021, this tax is not imposed on 
16sales of aviation fuel for so long as the revenue use 
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
18binding on the District. 
19 In the administration of and compliance with this 
20subsection, the Department and persons who are subject to this 
21subsection (i) have the same rights, remedies, privileges, 
22immunities, powers, and duties, (ii) are subject to the same 
23conditions, restrictions, limitations, penalties, and 
24definitions of terms, and (iii) shall employ the same modes of 
25procedure as are set forth in Sections 1 through 1o, 2 through 
262-70 (in respect to all provisions contained in those Sections 
 
 
10300HB4951sam002- 770 -LRB103 38094 HLH 74177 a


1other than the State rate of tax), 2a through 2h, 3 (except as 
2to the disposition of taxes and penalties collected, and 
3except that the retailer's discount is not allowed for taxes 
4paid on aviation fuel that are subject to the revenue use 
5requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 
65a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 
78, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax 
8Act and all provisions of the Uniform Penalty and Interest Act 
9as if those provisions were set forth in this subsection.
10 Persons subject to any tax imposed under this Section may 
11reimburse themselves for their seller's tax liability 
12hereunder by separately stating the tax as an additional 
13charge, which charge may be stated in combination in a single 
14amount with State taxes that sellers are required to collect 
15under the Use Tax Act, under any bracket schedules the 
16Department may prescribe.
17 If a tax is imposed under this subsection (a), a tax shall 
18also be imposed under subsection (b) of this Section.
19 (b) If a tax has been imposed under subsection (a), a flood 
20prevention service occupation tax shall also be imposed upon 
21all persons engaged within the territory of the district in 
22the business of making sales of service, who, as an incident to 
23making the sales of service, transfer tangible personal 
24property, either in the form of tangible personal property or 
25in the form of real estate as an incident to a sale of service 
26to provide revenue to pay the costs of providing emergency 
 
 
10300HB4951sam002- 771 -LRB103 38094 HLH 74177 a


1levee repair and flood prevention and to secure the payment of 
2bonds, notes, and other evidences of indebtedness issued under 
3this Act for a period not to exceed 25 years or as required to 
4repay the bonds, notes, and other evidences of indebtedness. 
5The tax rate shall be 0.25% of the selling price of all 
6tangible personal property transferred. Beginning December 1, 
72019 and through December 31, 2020, this tax is not imposed on 
8sales of aviation fuel unless the tax revenue is expended for 
9airport-related purposes. If the District does not have an 
10airport-related purpose to which it dedicates aviation fuel 
11tax revenue, then aviation fuel is excluded from the tax. The 
12County must comply with the certification requirements for 
13airport-related purposes under Section 2-22 of the Retailers' 
14Occupation Tax Act. For purposes of this Act, "airport-related 
15purposes" has the meaning ascribed in Section 6z-20.2 of the 
16State Finance Act. Beginning January 1, 2021, this tax is not 
17imposed on sales of aviation fuel for so long as the revenue 
18use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
19binding on the District.
20 The tax imposed under this subsection and all civil 
21penalties that may be assessed as an incident thereof shall be 
22collected and enforced by the State Department of Revenue. The 
23Department shall have full power to administer and enforce 
24this subsection; to collect all taxes and penalties due 
25hereunder; to dispose of taxes and penalties collected in the 
26manner hereinafter provided; and to determine all rights to 
 
 
10300HB4951sam002- 772 -LRB103 38094 HLH 74177 a


1credit memoranda arising on account of the erroneous payment 
2of tax or penalty hereunder. 
3 In the administration of and compliance with this 
4subsection, the Department and persons who are subject to this 
5subsection shall (i) have the same rights, remedies, 
6privileges, immunities, powers, and duties, (ii) be subject to 
7the same conditions, restrictions, limitations, penalties, and 
8definitions of terms, and (iii) employ the same modes of 
9procedure as are set forth in Sections 2 (except that the 
10reference to State in the definition of supplier maintaining a 
11place of business in this State means the district), 2a 
12through 2d, 3 through 3-50 (in respect to all provisions 
13contained in those Sections other than the State rate of tax), 
144 (except that the reference to the State shall be to the 
15district), 5, 7, 8 (except that the jurisdiction to which the 
16tax is a debt to the extent indicated in that Section 8 is the 
17district), 9 (except as to the disposition of taxes and 
18penalties collected, and except that the retailer's discount 
19is not allowed for taxes paid on aviation fuel that are subject 
20to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
21U.S.C. 47133), 10, 11, 12 (except the reference therein to 
22Section 2b of the Retailers' Occupation Tax Act), 13 (except 
23that any reference to the State means the district), Section 
2415, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act 
25and all provisions of the Uniform Penalty and Interest Act, as 
26fully as if those provisions were set forth herein.
 
 
10300HB4951sam002- 773 -LRB103 38094 HLH 74177 a


1 Persons subject to any tax imposed under the authority 
2granted in this subsection may reimburse themselves for their 
3serviceman's tax liability hereunder by separately stating the 
4tax as an additional charge, that charge may be stated in 
5combination in a single amount with State tax that servicemen 
6are authorized to collect under the Service Use Tax Act, under 
7any bracket schedules the Department may prescribe.
8 (c) The taxes imposed in subsections (a) and (b) may not be 
9imposed on personal property titled or registered with an 
10agency of the State or on personal property taxed at the 1% 
11rate under the Retailers' Occupation Tax Act and the Service 
12Occupation Tax Act (or at the 0% rate imposed under this 
13amendatory Act of the 102nd General Assembly).
14 (c-5) If, on January 1, 2025, a unit of local government 
15has in effect a tax under this Section, or if, after January 1, 
162025, a unit of local government imposes a tax under this 
17Section, then that tax applies to leases of tangible personal 
18property in effect, entered into, or renewed on or after that 
19date in the same manner as the tax under this Section and in 
20accordance with the changes made by this amendatory Act of the 
21103rd General Assembly. 
22 (d) Nothing in this Section shall be construed to 
23authorize the district to impose a tax upon the privilege of 
24engaging in any business that under the Constitution of the 
25United States may not be made the subject of taxation by the 
26State.
 
 
10300HB4951sam002- 774 -LRB103 38094 HLH 74177 a


1 (e) The certificate of registration that is issued by the 
2Department to a retailer under the Retailers' Occupation Tax 
3Act or a serviceman under the Service Occupation Tax Act 
4permits the retailer or serviceman to engage in a business 
5that is taxable without registering separately with the 
6Department under an ordinance or resolution under this 
7Section.
8 (f) Except as otherwise provided, the Department shall 
9immediately pay over to the State Treasurer, ex officio, as 
10trustee, all taxes and penalties collected under this Section 
11to be deposited into the Flood Prevention Occupation Tax Fund, 
12which shall be an unappropriated trust fund held outside the 
13State treasury. Taxes and penalties collected on aviation fuel 
14sold on or after December 1, 2019 and through December 31, 
152020, shall be immediately paid over by the Department to the 
16State Treasurer, ex officio, as trustee, for deposit into the 
17Local Government Aviation Trust Fund. The Department shall 
18only pay moneys into the Local Government Aviation Trust Fund 
19under this Act for so long as the revenue use requirements of 
2049 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
21District.
22 On or before the 25th day of each calendar month, the 
23Department shall prepare and certify to the Comptroller the 
24disbursement of stated sums of money to the counties from 
25which retailers or servicemen have paid taxes or penalties to 
26the Department during the second preceding calendar month. The 
 
 
10300HB4951sam002- 775 -LRB103 38094 HLH 74177 a


1amount to be paid to each county is equal to the amount (not 
2including credit memoranda and not including taxes and 
3penalties collected on aviation fuel sold on or after December 
41, 2019 and through December 31, 2020) collected from the 
5county under this Section during the second preceding calendar 
6month by the Department, (i) less 2% of that amount (except the 
7amount collected on aviation fuel sold on or after December 1, 
82019 and through December 31, 2020), which shall be deposited 
9into the Tax Compliance and Administration Fund and shall be 
10used by the Department in administering and enforcing the 
11provisions of this Section on behalf of the county, (ii) plus 
12an amount that the Department determines is necessary to 
13offset any amounts that were erroneously paid to a different 
14taxing body; (iii) less an amount equal to the amount of 
15refunds made during the second preceding calendar month by the 
16Department on behalf of the county; and (iv) less any amount 
17that the Department determines is necessary to offset any 
18amounts that were payable to a different taxing body but were 
19erroneously paid to the county. When certifying the amount of 
20a monthly disbursement to a county under this Section, the 
21Department shall increase or decrease the amounts by an amount 
22necessary to offset any miscalculation of previous 
23disbursements within the previous 6 months from the time a 
24miscalculation is discovered.
25 Within 10 days after receipt by the Comptroller from the 
26Department of the disbursement certification to the counties 
 
 
10300HB4951sam002- 776 -LRB103 38094 HLH 74177 a


1provided for in this Section, the Comptroller shall cause the 
2orders to be drawn for the respective amounts in accordance 
3with directions contained in the certification.
4 If the Department determines that a refund should be made 
5under this Section to a claimant instead of issuing a credit 
6memorandum, then the Department shall notify the Comptroller, 
7who shall cause the order to be drawn for the amount specified 
8and to the person named in the notification from the 
9Department. The refund shall be paid by the Treasurer out of 
10the Flood Prevention Occupation Tax Fund or the Local 
11Government Aviation Trust Fund, as appropriate.
12 (g) If a county imposes a tax under this Section, then the 
13county board shall, by ordinance, discontinue the tax upon the 
14payment of all indebtedness of the flood prevention district. 
15The tax shall not be discontinued until all indebtedness of 
16the District has been paid. 
17 (h) Any ordinance imposing the tax under this Section, or 
18any ordinance that discontinues the tax, must be certified by 
19the county clerk and filed with the Illinois Department of 
20Revenue either (i) on or before the first day of April, 
21whereupon the Department shall proceed to administer and 
22enforce the tax or change in the rate as of the first day of 
23July next following the filing; or (ii) on or before the first 
24day of October, whereupon the Department shall proceed to 
25administer and enforce the tax or change in the rate as of the 
26first day of January next following the filing.
 
 
10300HB4951sam002- 777 -LRB103 38094 HLH 74177 a


1 (j) County Flood Prevention Occupation Tax Fund. All 
2proceeds received by a county from a tax distribution under 
3this Section must be maintained in a special fund known as the 
4[name of county] flood prevention occupation tax fund. The 
5county shall, at the direction of the flood prevention 
6district, use moneys in the fund to pay the costs of providing 
7emergency levee repair and flood prevention and to pay bonds, 
8notes, and other evidences of indebtedness issued under this 
9Act. 
10 (k) This Section may be cited as the Flood Prevention 
11Occupation Tax Law.
12(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; 
13102-700, eff. 4-19-22.)

14 Section 75-50. The Metro-East Park and Recreation District 
15Act is amended by changing Section 30 as follows:

16 (70 ILCS 1605/30)
17 Sec. 30. Taxes. 
18 (a) The board shall impose a tax upon all persons engaged 
19in the business of selling tangible personal property, other 
20than personal property titled or registered with an agency of 
21this State's government, at retail in the District on the 
22gross receipts from the sales made in the course of business. 
23This tax shall be imposed only at the rate of one-tenth of one 
24per cent.
 
 
10300HB4951sam002- 778 -LRB103 38094 HLH 74177 a


1 This additional tax may not be imposed on tangible 
2personal property taxed at the 1% rate under the Retailers' 
3Occupation Tax Act (or at the 0% rate imposed under this 
4amendatory Act of the 102nd General Assembly). Beginning 
5December 1, 2019 and through December 31, 2020, this tax is not 
6imposed on sales of aviation fuel unless the tax revenue is 
7expended for airport-related purposes. If the District does 
8not have an airport-related purpose to which it dedicates 
9aviation fuel tax revenue, then aviation fuel shall be 
10excluded from tax. The board must comply with the 
11certification requirements for airport-related purposes under 
12Section 2-22 of the Retailers' Occupation Tax Act. For 
13purposes of this Act, "airport-related purposes" has the 
14meaning ascribed in Section 6z-20.2 of the State Finance Act. 
15Beginning January 1, 2021, this tax is not imposed on sales of 
16aviation fuel for so long as the revenue use requirements of 49 
17U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
18District. The tax imposed by the Board under this Section and 
19all civil penalties that may be assessed as an incident of the 
20tax shall be collected and enforced by the Department of 
21Revenue. The certificate of registration that is issued by the 
22Department to a retailer under the Retailers' Occupation Tax 
23Act shall permit the retailer to engage in a business that is 
24taxable without registering separately with the Department 
25under an ordinance or resolution under this Section. The 
26Department has full power to administer and enforce this 
 
 
10300HB4951sam002- 779 -LRB103 38094 HLH 74177 a


1Section, to collect all taxes and penalties due under this 
2Section, to dispose of taxes and penalties so collected in the 
3manner provided in this Section, and to determine all rights 
4to credit memoranda arising on account of the erroneous 
5payment of a tax or penalty under this Section. In the 
6administration of and compliance with this Section, the 
7Department and persons who are subject to this Section shall 
8(i) have the same rights, remedies, privileges, immunities, 
9powers, and duties, (ii) be subject to the same conditions, 
10restrictions, limitations, penalties, and definitions of 
11terms, and (iii) employ the same modes of procedure as are 
12prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 
131n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions 
14contained in those Sections other than the State rate of tax), 
152-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions 
16relating to transaction returns and quarter monthly payments, 
17and except that the retailer's discount is not allowed for 
18taxes paid on aviation fuel that are subject to the revenue use 
19requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 
205a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 
216d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' 
22Occupation Tax Act and the Uniform Penalty and Interest Act as 
23if those provisions were set forth in this Section.
24 Persons subject to any tax imposed under the authority 
25granted in this Section may reimburse themselves for their 
26sellers' tax liability by separately stating the tax as an 
 
 
10300HB4951sam002- 780 -LRB103 38094 HLH 74177 a


1additional charge, which charge may be stated in combination, 
2in a single amount, with State tax which sellers are required 
3to collect under the Use Tax Act, pursuant to such bracketed 
4schedules as the Department may prescribe.
5 Whenever the Department determines that a refund should be 
6made under this Section to a claimant instead of issuing a 
7credit memorandum, the Department shall notify the State 
8Comptroller, who shall cause the order to be drawn for the 
9amount specified and to the person named in the notification 
10from the Department. The refund shall be paid by the State 
11Treasurer out of the State Metro-East Park and Recreation 
12District Fund or the Local Government Aviation Trust Fund, as 
13appropriate.
14 (b) If a tax has been imposed under subsection (a), a 
15service occupation tax shall also be imposed at the same rate 
16upon all persons engaged, in the District, in the business of 
17making sales of service, who, as an incident to making those 
18sales of service, transfer tangible personal property within 
19the District as an incident to a sale of service. This tax may 
20not be imposed on tangible personal property taxed at the 1% 
21rate under the Service Occupation Tax Act (or at the 0% rate 
22imposed under this amendatory Act of the 102nd General 
23Assembly). Beginning December 1, 2019 and through December 31, 
242020, this tax may not be imposed on sales of aviation fuel 
25unless the tax revenue is expended for airport-related 
26purposes. If the District does not have an airport-related 
 
 
10300HB4951sam002- 781 -LRB103 38094 HLH 74177 a


1purpose to which it dedicates aviation fuel tax revenue, then 
2aviation fuel shall be excluded from tax. The board must 
3comply with the certification requirements for airport-related 
4purposes under Section 2-22 of the Retailers' Occupation Tax 
5Act. For purposes of this Act, "airport-related purposes" has 
6the meaning ascribed in Section 6z-20.2 of the State Finance 
7Act. Beginning January 1, 2021, this tax is not imposed on 
8sales of aviation fuel for so long as the revenue use 
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
10binding on the District. The tax imposed under this subsection 
11and all civil penalties that may be assessed as an incident 
12thereof shall be collected and enforced by the Department of 
13Revenue. The Department has full power to administer and 
14enforce this subsection; to collect all taxes and penalties 
15due hereunder; to dispose of taxes and penalties so collected 
16in the manner hereinafter provided; and to determine all 
17rights to credit memoranda arising on account of the erroneous 
18payment of tax or penalty hereunder. In the administration of, 
19and compliance with this subsection, the Department and 
20persons who are subject to this paragraph shall (i) have the 
21same rights, remedies, privileges, immunities, powers, and 
22duties, (ii) be subject to the same conditions, restrictions, 
23limitations, penalties, exclusions, exemptions, and 
24definitions of terms, and (iii) employ the same modes of 
25procedure as are prescribed in Sections 2 (except that the 
26reference to State in the definition of supplier maintaining a 
 
 
10300HB4951sam002- 782 -LRB103 38094 HLH 74177 a


1place of business in this State shall mean the District), 2a, 
22b, 2c, 3 through 3-50 (in respect to all provisions therein 
3other than the State rate of tax), 4 (except that the reference 
4to the State shall be to the District), 5, 7, 8 (except that 
5the jurisdiction to which the tax shall be a debt to the extent 
6indicated in that Section 8 shall be the District), 9 (except 
7as to the disposition of taxes and penalties collected, and 
8except that the retailer's discount is not allowed for taxes 
9paid on aviation fuel that are subject to the revenue use 
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 
1111, 12 (except the reference therein to Section 2b of the 
12Retailers' Occupation Tax Act), 13 (except that any reference 
13to the State shall mean the District), Sections 15, 16, 17, 18, 
1419 and 20 of the Service Occupation Tax Act and the Uniform 
15Penalty and Interest Act, as fully as if those provisions were 
16set forth herein.
17 Persons subject to any tax imposed under the authority 
18granted in this subsection may reimburse themselves for their 
19serviceman's tax liability by separately stating the tax as an 
20additional charge, which charge may be stated in combination, 
21in a single amount, with State tax that servicemen are 
22authorized to collect under the Service Use Tax Act, in 
23accordance with such bracket schedules as the Department may 
24prescribe.
25 Whenever the Department determines that a refund should be 
26made under this subsection to a claimant instead of issuing a 
 
 
10300HB4951sam002- 783 -LRB103 38094 HLH 74177 a


1credit memorandum, the Department shall notify the State 
2Comptroller, who shall cause the warrant to be drawn for the 
3amount specified, and to the person named, in the notification 
4from the Department. The refund shall be paid by the State 
5Treasurer out of the State Metro-East Park and Recreation 
6District Fund or the Local Government Aviation Trust Fund, as 
7appropriate.
8 Nothing in this subsection shall be construed to authorize 
9the board to impose a tax upon the privilege of engaging in any 
10business which under the Constitution of the United States may 
11not be made the subject of taxation by the State.
12 (b-5) If, on January 1, 2025, a unit of local government 
13has in effect a tax under this Section, or if, after January 1, 
142025, a unit of local government imposes a tax under this 
15Section, then that tax applies to leases of tangible personal 
16property in effect, entered into, or renewed on or after that 
17date in the same manner as the tax under this Section and in 
18accordance with the changes made by this amendatory Act of the 
19103rd General Assembly. 
20 (c) Except as otherwise provided in this paragraph, the 
21Department shall immediately pay over to the State Treasurer, 
22ex officio, as trustee, all taxes and penalties collected 
23under this Section to be deposited into the State Metro-East 
24Park and Recreation District Fund, which shall be an 
25unappropriated trust fund held outside of the State treasury. 
26Taxes and penalties collected on aviation fuel sold on or 
 
 
10300HB4951sam002- 784 -LRB103 38094 HLH 74177 a


1after December 1, 2019 and through December 31, 2020, shall be 
2immediately paid over by the Department to the State 
3Treasurer, ex officio, as trustee, for deposit into the Local 
4Government Aviation Trust Fund. The Department shall only pay 
5moneys into the Local Government Aviation Trust Fund under 
6this Act for so long as the revenue use requirements of 49 
7U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
8District. 
9 As soon as possible after the first day of each month, 
10beginning January 1, 2011, upon certification of the 
11Department of Revenue, the Comptroller shall order 
12transferred, and the Treasurer shall transfer, to the STAR 
13Bonds Revenue Fund the local sales tax increment, as defined 
14in the Innovation Development and Economy Act, collected under 
15this Section during the second preceding calendar month for 
16sales within a STAR bond district. The Department shall make 
17this certification only if the Metro East Park and Recreation 
18District imposes a tax on real property as provided in the 
19definition of "local sales taxes" under the Innovation 
20Development and Economy Act. 
21 After the monthly transfer to the STAR Bonds Revenue Fund, 
22on or before the 25th day of each calendar month, the 
23Department shall prepare and certify to the Comptroller the 
24disbursement of stated sums of money pursuant to Section 35 of 
25this Act to the District from which retailers have paid taxes 
26or penalties to the Department during the second preceding 
 
 
10300HB4951sam002- 785 -LRB103 38094 HLH 74177 a


1calendar month. The amount to be paid to the District shall be 
2the amount (not including credit memoranda and not including 
3taxes and penalties collected on aviation fuel sold on or 
4after December 1, 2019 and through December 31, 2020) 
5collected under this Section during the second preceding 
6calendar month by the Department plus an amount the Department 
7determines is necessary to offset any amounts that were 
8erroneously paid to a different taxing body, and not including 
9(i) an amount equal to the amount of refunds made during the 
10second preceding calendar month by the Department on behalf of 
11the District, (ii) any amount that the Department determines 
12is necessary to offset any amounts that were payable to a 
13different taxing body but were erroneously paid to the 
14District, (iii) any amounts that are transferred to the STAR 
15Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the 
16Department shall transfer into the Tax Compliance and 
17Administration Fund. The Department, at the time of each 
18monthly disbursement to the District, shall prepare and 
19certify to the State Comptroller the amount to be transferred 
20into the Tax Compliance and Administration Fund under this 
21subsection. Within 10 days after receipt by the Comptroller of 
22the disbursement certification to the District and the Tax 
23Compliance and Administration Fund provided for in this 
24Section to be given to the Comptroller by the Department, the 
25Comptroller shall cause the orders to be drawn for the 
26respective amounts in accordance with directions contained in 
 
 
10300HB4951sam002- 786 -LRB103 38094 HLH 74177 a


1the certification.
2 (d) For the purpose of determining whether a tax 
3authorized under this Section is applicable, a retail sale by 
4a producer of coal or another mineral mined in Illinois is a 
5sale at retail at the place where the coal or other mineral 
6mined in Illinois is extracted from the earth. This paragraph 
7does not apply to coal or another mineral when it is delivered 
8or shipped by the seller to the purchaser at a point outside 
9Illinois so that the sale is exempt under the United States 
10Constitution as a sale in interstate or foreign commerce.
11 (e) Nothing in this Section shall be construed to 
12authorize the board to impose a tax upon the privilege of 
13engaging in any business that under the Constitution of the 
14United States may not be made the subject of taxation by this 
15State.
16 (f) An ordinance imposing a tax under this Section or an 
17ordinance extending the imposition of a tax to an additional 
18county or counties shall be certified by the board and filed 
19with the Department of Revenue either (i) on or before the 
20first day of April, whereupon the Department shall proceed to 
21administer and enforce the tax as of the first day of July next 
22following the filing; or (ii) on or before the first day of 
23October, whereupon the Department shall proceed to administer 
24and enforce the tax as of the first day of January next 
25following the filing.
26 (g) When certifying the amount of a monthly disbursement 
 
 
10300HB4951sam002- 787 -LRB103 38094 HLH 74177 a


1to the District under this Section, the Department shall 
2increase or decrease the amounts by an amount necessary to 
3offset any misallocation of previous disbursements. The offset 
4amount shall be the amount erroneously disbursed within the 
5previous 6 months from the time a misallocation is discovered.
6(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
7101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

8 Section 75-55. The Local Mass Transit District Act is 
9amended by changing Section 5.01 as follows:

10 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
11 Sec. 5.01. Metro East Mass Transit District; use and 
12occupation taxes. 
13 (a) The Board of Trustees of any Metro East Mass Transit 
14District may, by ordinance adopted with the concurrence of 
15two-thirds of the then trustees, impose throughout the 
16District any or all of the taxes and fees provided in this 
17Section. Except as otherwise provided, all taxes and fees 
18imposed under this Section shall be used only for public mass 
19transportation systems, and the amount used to provide mass 
20transit service to unserved areas of the District shall be in 
21the same proportion to the total proceeds as the number of 
22persons residing in the unserved areas is to the total 
23population of the District. Except as otherwise provided in 
24this Act, taxes imposed under this Section and civil penalties 
 
 
10300HB4951sam002- 788 -LRB103 38094 HLH 74177 a


1imposed incident thereto shall be collected and enforced by 
2the State Department of Revenue. The Department shall have the 
3power to administer and enforce the taxes and to determine all 
4rights for refunds for erroneous payments of the taxes.
5 (b) The Board may impose a Metro East Mass Transit 
6District Retailers' Occupation Tax upon all persons engaged in 
7the business of selling tangible personal property at retail 
8in the district at a rate of 1/4 of 1%, or as authorized under 
9subsection (d-5) of this Section, of the gross receipts from 
10the sales made in the course of such business within the 
11district, except that the rate of tax imposed under this 
12Section on sales of aviation fuel on or after December 1, 2019 
13shall be 0.25% in Madison County unless the Metro-East Mass 
14Transit District in Madison County has an "airport-related 
15purpose" and any additional amount authorized under subsection 
16(d-5) is expended for airport-related purposes. If there is no 
17airport-related purpose to which aviation fuel tax revenue is 
18dedicated, then aviation fuel is excluded from any additional 
19amount authorized under subsection (d-5). The rate in St. 
20Clair County shall be 0.25% unless the Metro-East Mass Transit 
21District in St. Clair County has an "airport-related purpose" 
22and the additional 0.50% of the 0.75% tax on aviation fuel 
23imposed in that County is expended for airport-related 
24purposes. If there is no airport-related purpose to which 
25aviation fuel tax revenue is dedicated, then aviation fuel is 
26excluded from the additional 0.50% of the 0.75% tax. 
 
 
10300HB4951sam002- 789 -LRB103 38094 HLH 74177 a


1 The Board must comply with the certification requirements 
2for airport-related purposes under Section 2-22 of the 
3Retailers' Occupation Tax Act. For purposes of this Section, 
4"airport-related purposes" has the meaning ascribed in Section 
56z-20.2 of the State Finance Act. This exclusion for aviation 
6fuel only applies for so long as the revenue use requirements 
7of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
8District. 
9 The tax imposed under this Section and all civil penalties 
10that may be assessed as an incident thereof shall be collected 
11and enforced by the State Department of Revenue. The 
12Department shall have full power to administer and enforce 
13this Section; to collect all taxes and penalties so collected 
14in the manner hereinafter provided; and to determine all 
15rights to credit memoranda arising on account of the erroneous 
16payment of tax or penalty hereunder. In the administration of, 
17and compliance with, this Section, the Department and persons 
18who are subject to this Section shall have the same rights, 
19remedies, privileges, immunities, powers and duties, and be 
20subject to the same conditions, restrictions, limitations, 
21penalties, exclusions, exemptions and definitions of terms and 
22employ the same modes of procedure, as are prescribed in 
23Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 
24(in respect to all provisions therein other than the State 
25rate of tax), 2c, 3 (except as to the disposition of taxes and 
26penalties collected, and except that the retailer's discount 
 
 
10300HB4951sam002- 790 -LRB103 38094 HLH 74177 a


1is not allowed for taxes paid on aviation fuel that are subject 
2to the revenue use requirements of 49 U.S.C. 47107(b) and 49 
3U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 
45l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the 
5Retailers' Occupation Tax Act and Section 3-7 of the Uniform 
6Penalty and Interest Act, as fully as if those provisions were 
7set forth herein.
8 Persons subject to any tax imposed under the Section may 
9reimburse themselves for their seller's tax liability 
10hereunder by separately stating the tax as an additional 
11charge, which charge may be stated in combination, in a single 
12amount, with State taxes that sellers are required to collect 
13under the Use Tax Act, in accordance with such bracket 
14schedules as the Department may prescribe.
15 Whenever the Department determines that a refund should be 
16made under this Section to a claimant instead of issuing a 
17credit memorandum, the Department shall notify the State 
18Comptroller, who shall cause the warrant to be drawn for the 
19amount specified, and to the person named, in the notification 
20from the Department. The refund shall be paid by the State 
21Treasurer out of the Metro East Mass Transit District tax fund 
22established under paragraph (h) of this Section or the Local 
23Government Aviation Trust Fund, as appropriate.
24 If a tax is imposed under this subsection (b), a tax shall 
25also be imposed under subsections (c) and (d) of this Section.
26 For the purpose of determining whether a tax authorized 
 
 
10300HB4951sam002- 791 -LRB103 38094 HLH 74177 a


1under this Section is applicable, a retail sale, by a producer 
2of coal or other mineral mined in Illinois, is a sale at retail 
3at the place where the coal or other mineral mined in Illinois 
4is extracted from the earth. This paragraph does not apply to 
5coal or other mineral when it is delivered or shipped by the 
6seller to the purchaser at a point outside Illinois so that the 
7sale is exempt under the Federal Constitution as a sale in 
8interstate or foreign commerce.
9 No tax shall be imposed or collected under this subsection 
10on the sale of a motor vehicle in this State to a resident of 
11another state if that motor vehicle will not be titled in this 
12State. 
13 Nothing in this Section shall be construed to authorize 
14the Metro East Mass Transit District to impose a tax upon the 
15privilege of engaging in any business which under the 
16Constitution of the United States may not be made the subject 
17of taxation by this State.
18 (c) If a tax has been imposed under subsection (b), a Metro 
19East Mass Transit District Service Occupation Tax shall also 
20be imposed upon all persons engaged, in the district, in the 
21business of making sales of service, who, as an incident to 
22making those sales of service, transfer tangible personal 
23property within the District, either in the form of tangible 
24personal property or in the form of real estate as an incident 
25to a sale of service. The tax rate shall be 1/4%, or as 
26authorized under subsection (d-5) of this Section, of the 
 
 
10300HB4951sam002- 792 -LRB103 38094 HLH 74177 a


1selling price of tangible personal property so transferred 
2within the district, except that the rate of tax imposed in 
3these Counties under this Section on sales of aviation fuel on 
4or after December 1, 2019 shall be 0.25% in Madison County 
5unless the Metro-East Mass Transit District in Madison County 
6has an "airport-related purpose" and any additional amount 
7authorized under subsection (d-5) is expended for 
8airport-related purposes. If there is no airport-related 
9purpose to which aviation fuel tax revenue is dedicated, then 
10aviation fuel is excluded from any additional amount 
11authorized under subsection (d-5). The rate in St. Clair 
12County shall be 0.25% unless the Metro-East Mass Transit 
13District in St. Clair County has an "airport-related purpose" 
14and the additional 0.50% of the 0.75% tax on aviation fuel is 
15expended for airport-related purposes. If there is no 
16airport-related purpose to which aviation fuel tax revenue is 
17dedicated, then aviation fuel is excluded from the additional 
180.50% of the 0.75% tax. 
19 The Board must comply with the certification requirements 
20for airport-related purposes under Section 2-22 of the 
21Retailers' Occupation Tax Act. For purposes of this Section, 
22"airport-related purposes" has the meaning ascribed in Section 
236z-20.2 of the State Finance Act. This exclusion for aviation 
24fuel only applies for so long as the revenue use requirements 
25of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
26District. 
 
 
10300HB4951sam002- 793 -LRB103 38094 HLH 74177 a


1 The tax imposed under this paragraph and all civil 
2penalties that may be assessed as an incident thereof shall be 
3collected and enforced by the State Department of Revenue. The 
4Department shall have full power to administer and enforce 
5this paragraph; to collect all taxes and penalties due 
6hereunder; to dispose of taxes and penalties so collected in 
7the manner hereinafter provided; and to determine all rights 
8to credit memoranda arising on account of the erroneous 
9payment of tax or penalty hereunder. In the administration of, 
10and compliance with this paragraph, the Department and persons 
11who are subject to this paragraph shall have the same rights, 
12remedies, privileges, immunities, powers and duties, and be 
13subject to the same conditions, restrictions, limitations, 
14penalties, exclusions, exemptions and definitions of terms and 
15employ the same modes of procedure as are prescribed in 
16Sections 1a-1, 2 (except that the reference to State in the 
17definition of supplier maintaining a place of business in this 
18State shall mean the Authority), 2a, 3 through 3-50 (in 
19respect to all provisions therein other than the State rate of 
20tax), 4 (except that the reference to the State shall be to the 
21Authority), 5, 7, 8 (except that the jurisdiction to which the 
22tax shall be a debt to the extent indicated in that Section 8 
23shall be the District), 9 (except as to the disposition of 
24taxes and penalties collected, and except that the returned 
25merchandise credit for this tax may not be taken against any 
26State tax, and except that the retailer's discount is not 
 
 
10300HB4951sam002- 794 -LRB103 38094 HLH 74177 a


1allowed for taxes paid on aviation fuel that are subject to the 
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
347133), 10, 11, 12 (except the reference therein to Section 2b 
4of the Retailers' Occupation Tax Act), 13 (except that any 
5reference to the State shall mean the District), the first 
6paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service 
7Occupation Tax Act and Section 3-7 of the Uniform Penalty and 
8Interest Act, as fully as if those provisions were set forth 
9herein.
10 Persons subject to any tax imposed under the authority 
11granted in this paragraph may reimburse themselves for their 
12serviceman's tax liability hereunder by separately stating the 
13tax as an additional charge, which charge may be stated in 
14combination, in a single amount, with State tax that 
15servicemen are authorized to collect under the Service Use Tax 
16Act, in accordance with such bracket schedules as the 
17Department may prescribe.
18 Whenever the Department determines that a refund should be 
19made under this paragraph to a claimant instead of issuing a 
20credit memorandum, the Department shall notify the State 
21Comptroller, who shall cause the warrant to be drawn for the 
22amount specified, and to the person named, in the notification 
23from the Department. The refund shall be paid by the State 
24Treasurer out of the Metro East Mass Transit District tax fund 
25established under paragraph (h) of this Section or the Local 
26Government Aviation Trust Fund, as appropriate.
 
 
10300HB4951sam002- 795 -LRB103 38094 HLH 74177 a


1 Nothing in this paragraph shall be construed to authorize 
2the District to impose a tax upon the privilege of engaging in 
3any business which under the Constitution of the United States 
4may not be made the subject of taxation by the State.
5 (d) If a tax has been imposed under subsection (b), a Metro 
6East Mass Transit District Use Tax shall also be imposed upon 
7the privilege of using, in the district, any item of tangible 
8personal property that is purchased outside the district at 
9retail from a retailer, and that is titled or registered with 
10an agency of this State's government, at a rate of 1/4%, or as 
11authorized under subsection (d-5) of this Section, of the 
12selling price of the tangible personal property within the 
13District, as "selling price" is defined in the Use Tax Act. The 
14tax shall be collected from persons whose Illinois address for 
15titling or registration purposes is given as being in the 
16District. The tax shall be collected by the Department of 
17Revenue for the Metro East Mass Transit District. The tax must 
18be paid to the State, or an exemption determination must be 
19obtained from the Department of Revenue, before the title or 
20certificate of registration for the property may be issued. 
21The tax or proof of exemption may be transmitted to the 
22Department by way of the State agency with which, or the State 
23officer with whom, the tangible personal property must be 
24titled or registered if the Department and the State agency or 
25State officer determine that this procedure will expedite the 
26processing of applications for title or registration.
 
 
10300HB4951sam002- 796 -LRB103 38094 HLH 74177 a


1 The Department shall have full power to administer and 
2enforce this paragraph; to collect all taxes, penalties and 
3interest due hereunder; to dispose of taxes, penalties and 
4interest so collected in the manner hereinafter provided; and 
5to determine all rights to credit memoranda or refunds arising 
6on account of the erroneous payment of tax, penalty or 
7interest hereunder. In the administration of, and compliance 
8with, this paragraph, the Department and persons who are 
9subject to this paragraph shall have the same rights, 
10remedies, privileges, immunities, powers and duties, and be 
11subject to the same conditions, restrictions, limitations, 
12penalties, exclusions, exemptions and definitions of terms and 
13employ the same modes of procedure, as are prescribed in 
14Sections 2 (except the definition of "retailer maintaining a 
15place of business in this State"), 3 through 3-80 (except 
16provisions pertaining to the State rate of tax, and except 
17provisions concerning collection or refunding of the tax by 
18retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions 
19pertaining to claims by retailers and except the last 
20paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act 
21and Section 3-7 of the Uniform Penalty and Interest Act, that 
22are not inconsistent with this paragraph, as fully as if those 
23provisions were set forth herein.
24 Whenever the Department determines that a refund should be 
25made under this paragraph to a claimant instead of issuing a 
26credit memorandum, the Department shall notify the State 
 
 
10300HB4951sam002- 797 -LRB103 38094 HLH 74177 a


1Comptroller, who shall cause the order to be drawn for the 
2amount specified, and to the person named, in the notification 
3from the Department. The refund shall be paid by the State 
4Treasurer out of the Metro East Mass Transit District tax fund 
5established under paragraph (h) of this Section.
6 (d-1) If, on January 1, 2025, a unit of local government 
7has in effect a tax under subsections (b), (c), and (d) or if, 
8after January 1, 2025, a unit of local government imposes a tax 
9under subsections (b), (c), and (d), then that tax applies to 
10leases of tangible personal property in effect, entered into, 
11or renewed on or after that date in the same manner as the tax 
12under this Section and in accordance with the changes made by 
13this amendatory Act of the 103rd General Assembly. 
14 (d-5) (A) The county board of any county participating in 
15the Metro East Mass Transit District may authorize, by 
16ordinance, a referendum on the question of whether the tax 
17rates for the Metro East Mass Transit District Retailers' 
18Occupation Tax, the Metro East Mass Transit District Service 
19Occupation Tax, and the Metro East Mass Transit District Use 
20Tax for the District should be increased from 0.25% to 0.75%. 
21Upon adopting the ordinance, the county board shall certify 
22the proposition to the proper election officials who shall 
23submit the proposition to the voters of the District at the 
24next election, in accordance with the general election law.
25 The proposition shall be in substantially the following 
26form:
 
 
10300HB4951sam002- 798 -LRB103 38094 HLH 74177 a


1  Shall the tax rates for the Metro East Mass Transit 
2 District Retailers' Occupation Tax, the Metro East Mass 
3 Transit District Service Occupation Tax, and the Metro 
4 East Mass Transit District Use Tax be increased from 0.25% 
5 to 0.75%?
6 (B) Two thousand five hundred electors of any Metro East 
7Mass Transit District may petition the Chief Judge of the 
8Circuit Court, or any judge of that Circuit designated by the 
9Chief Judge, in which that District is located to cause to be 
10submitted to a vote of the electors the question whether the 
11tax rates for the Metro East Mass Transit District Retailers' 
12Occupation Tax, the Metro East Mass Transit District Service 
13Occupation Tax, and the Metro East Mass Transit District Use 
14Tax for the District should be increased from 0.25% to 0.75%.
15 Upon submission of such petition the court shall set a 
16date not less than 10 nor more than 30 days thereafter for a 
17hearing on the sufficiency thereof. Notice of the filing of 
18such petition and of such date shall be given in writing to the 
19District and the County Clerk at least 7 days before the date 
20of such hearing.
21 If such petition is found sufficient, the court shall 
22enter an order to submit that proposition at the next 
23election, in accordance with general election law.
24 The form of the petition shall be in substantially the 
25following form: To the Circuit Court of the County of (name of 
26county):
 
 
10300HB4951sam002- 799 -LRB103 38094 HLH 74177 a


1  We, the undersigned electors of the (name of transit 
2 district), respectfully petition your honor to submit to a 
3 vote of the electors of (name of transit district) the 
4 following proposition:
5  Shall the tax rates for the Metro East Mass Transit 
6 District Retailers' Occupation Tax, the Metro East Mass 
7 Transit District Service Occupation Tax, and the Metro 
8 East Mass Transit District Use Tax be increased from 0.25% 
9 to 0.75%?
10  Name    Address, with Street and Number.
11..............................................................
12..............................................................
13 (C) The votes shall be recorded as "YES" or "NO". If a 
14majority of all votes cast on the proposition are for the 
15increase in the tax rates, the Metro East Mass Transit 
16District shall begin imposing the increased rates in the 
17District, and the Department of Revenue shall begin collecting 
18the increased amounts, as provided under this Section. An 
19ordinance imposing or discontinuing a tax hereunder or 
20effecting a change in the rate thereof shall be adopted and a 
21certified copy thereof filed with the Department on or before 
22the first day of October, whereupon the Department shall 
23proceed to administer and enforce this Section as of the first 
24day of January next following the adoption and filing, or on or 
25before the first day of April, whereupon the Department shall 
26proceed to administer and enforce this Section as of the first 
 
 
10300HB4951sam002- 800 -LRB103 38094 HLH 74177 a


1day of July next following the adoption and filing.
2 (D) If the voters have approved a referendum under this 
3subsection, before November 1, 1994, to increase the tax rate 
4under this subsection, the Metro East Mass Transit District 
5Board of Trustees may adopt by a majority vote an ordinance at 
6any time before January 1, 1995 that excludes from the rate 
7increase tangible personal property that is titled or 
8registered with an agency of this State's government. The 
9ordinance excluding titled or registered tangible personal 
10property from the rate increase must be filed with the 
11Department at least 15 days before its effective date. At any 
12time after adopting an ordinance excluding from the rate 
13increase tangible personal property that is titled or 
14registered with an agency of this State's government, the 
15Metro East Mass Transit District Board of Trustees may adopt 
16an ordinance applying the rate increase to that tangible 
17personal property. The ordinance shall be adopted, and a 
18certified copy of that ordinance shall be filed with the 
19Department, on or before October 1, whereupon the Department 
20shall proceed to administer and enforce the rate increase 
21against tangible personal property titled or registered with 
22an agency of this State's government as of the following 
23January 1. After December 31, 1995, any reimposed rate 
24increase in effect under this subsection shall no longer apply 
25to tangible personal property titled or registered with an 
26agency of this State's government. Beginning January 1, 1996, 
 
 
10300HB4951sam002- 801 -LRB103 38094 HLH 74177 a


1the Board of Trustees of any Metro East Mass Transit District 
2may never reimpose a previously excluded tax rate increase on 
3tangible personal property titled or registered with an agency 
4of this State's government. After July 1, 2004, if the voters 
5have approved a referendum under this subsection to increase 
6the tax rate under this subsection, the Metro East Mass 
7Transit District Board of Trustees may adopt by a majority 
8vote an ordinance that excludes from the rate increase 
9tangible personal property that is titled or registered with 
10an agency of this State's government. The ordinance excluding 
11titled or registered tangible personal property from the rate 
12increase shall be adopted, and a certified copy of that 
13ordinance shall be filed with the Department on or before 
14October 1, whereupon the Department shall administer and 
15enforce this exclusion from the rate increase as of the 
16following January 1, or on or before April 1, whereupon the 
17Department shall administer and enforce this exclusion from 
18the rate increase as of the following July 1. The Board of 
19Trustees of any Metro East Mass Transit District may never 
20reimpose a previously excluded tax rate increase on tangible 
21personal property titled or registered with an agency of this 
22State's government.
23 (d-6) If the Board of Trustees of any Metro East Mass 
24Transit District has imposed a rate increase under subsection 
25(d-5) and filed an ordinance with the Department of Revenue 
26excluding titled property from the higher rate, then that 
 
 
10300HB4951sam002- 802 -LRB103 38094 HLH 74177 a


1Board may, by ordinance adopted with the concurrence of 
2two-thirds of the then trustees, impose throughout the 
3District a fee. The fee on the excluded property shall not 
4exceed $20 per retail transaction or an amount equal to the 
5amount of tax excluded, whichever is less, on tangible 
6personal property that is titled or registered with an agency 
7of this State's government. Beginning July 1, 2004, the fee 
8shall apply only to titled property that is subject to either 
9the Metro East Mass Transit District Retailers' Occupation Tax 
10or the Metro East Mass Transit District Service Occupation 
11Tax. No fee shall be imposed or collected under this 
12subsection on the sale of a motor vehicle in this State to a 
13resident of another state if that motor vehicle will not be 
14titled in this State. 
15 (d-7) Until June 30, 2004, if a fee has been imposed under 
16subsection (d-6), a fee shall also be imposed upon the 
17privilege of using, in the district, any item of tangible 
18personal property that is titled or registered with any agency 
19of this State's government, in an amount equal to the amount of 
20the fee imposed under subsection (d-6). 
21 (d-7.1) Beginning July 1, 2004, any fee imposed by the 
22Board of Trustees of any Metro East Mass Transit District 
23under subsection (d-6) and all civil penalties that may be 
24assessed as an incident of the fees shall be collected and 
25enforced by the State Department of Revenue. Reference to 
26"taxes" in this Section shall be construed to apply to the 
 
 
10300HB4951sam002- 803 -LRB103 38094 HLH 74177 a


1administration, payment, and remittance of all fees under this 
2Section. For purposes of any fee imposed under subsection 
3(d-6), 4% of the fee, penalty, and interest received by the 
4Department in the first 12 months that the fee is collected and 
5enforced by the Department and 2% of the fee, penalty, and 
6interest following the first 12 months (except the amount 
7collected on aviation fuel sold on or after December 1, 2019) 
8shall be deposited into the Tax Compliance and Administration 
9Fund and shall be used by the Department, subject to 
10appropriation, to cover the costs of the Department. No 
11retailers' discount shall apply to any fee imposed under 
12subsection (d-6).
13 (d-8) No item of titled property shall be subject to both 
14the higher rate approved by referendum, as authorized under 
15subsection (d-5), and any fee imposed under subsection (d-6) 
16or (d-7).
17 (d-9) (Blank). 
18 (d-10) (Blank). 
19 (e) A certificate of registration issued by the State 
20Department of Revenue to a retailer under the Retailers' 
21Occupation Tax Act or under the Service Occupation Tax Act 
22shall permit the registrant to engage in a business that is 
23taxed under the tax imposed under paragraphs (b), (c) or (d) of 
24this Section and no additional registration shall be required 
25under the tax. A certificate issued under the Use Tax Act or 
26the Service Use Tax Act shall be applicable with regard to any 
 
 
10300HB4951sam002- 804 -LRB103 38094 HLH 74177 a


1tax imposed under paragraph (c) of this Section.
2 (f) (Blank). 
3 (g) Any ordinance imposing or discontinuing any tax under 
4this Section shall be adopted and a certified copy thereof 
5filed with the Department on or before June 1, whereupon the 
6Department of Revenue shall proceed to administer and enforce 
7this Section on behalf of the Metro East Mass Transit District 
8as of September 1 next following such adoption and filing. 
9Beginning January 1, 1992, an ordinance or resolution imposing 
10or discontinuing the tax hereunder shall be adopted and a 
11certified copy thereof filed with the Department on or before 
12the first day of July, whereupon the Department shall proceed 
13to administer and enforce this Section as of the first day of 
14October next following such adoption and filing. Beginning 
15January 1, 1993, except as provided in subsection (d-5) of 
16this Section, an ordinance or resolution imposing or 
17discontinuing the tax hereunder shall be adopted and a 
18certified copy thereof filed with the Department on or before 
19the first day of October, whereupon the Department shall 
20proceed to administer and enforce this Section as of the first 
21day of January next following such adoption and filing, or, 
22beginning January 1, 2004, on or before the first day of April, 
23whereupon the Department shall proceed to administer and 
24enforce this Section as of the first day of July next following 
25the adoption and filing.
26 (h) Except as provided in subsection (d-7.1), the State 
 
 
10300HB4951sam002- 805 -LRB103 38094 HLH 74177 a


1Department of Revenue shall, upon collecting any taxes as 
2provided in this Section, pay the taxes over to the State 
3Treasurer as trustee for the District. The taxes shall be held 
4in a trust fund outside the State Treasury. If an 
5airport-related purpose has been certified, taxes and 
6penalties collected in St. Clair County on aviation fuel sold 
7on or after December 1, 2019 from the 0.50% of the 0.75% rate 
8shall be immediately paid over by the Department to the State 
9Treasurer, ex officio, as trustee, for deposit into the Local 
10Government Aviation Trust Fund. The Department shall only pay 
11moneys into the Local Government Aviation Trust Fund under 
12this Act for so long as the revenue use requirements of 49 
13U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
14District.
15 As soon as possible after the first day of each month, 
16beginning January 1, 2011, upon certification of the 
17Department of Revenue, the Comptroller shall order 
18transferred, and the Treasurer shall transfer, to the STAR 
19Bonds Revenue Fund the local sales tax increment, as defined 
20in the Innovation Development and Economy Act, collected under 
21this Section during the second preceding calendar month for 
22sales within a STAR bond district. The Department shall make 
23this certification only if the local mass transit district 
24imposes a tax on real property as provided in the definition of 
25"local sales taxes" under the Innovation Development and 
26Economy Act.
 
 
10300HB4951sam002- 806 -LRB103 38094 HLH 74177 a


1 After the monthly transfer to the STAR Bonds Revenue Fund, 
2on or before the 25th day of each calendar month, the State 
3Department of Revenue shall prepare and certify to the 
4Comptroller of the State of Illinois the amount to be paid to 
5the District, which shall be the amount (not including credit 
6memoranda and not including taxes and penalties collected on 
7aviation fuel sold on or after December 1, 2019 that are 
8deposited into the Local Government Aviation Trust Fund) 
9collected under this Section during the second preceding 
10calendar month by the Department plus an amount the Department 
11determines is necessary to offset any amounts that were 
12erroneously paid to a different taxing body, and not including 
13any amount equal to the amount of refunds made during the 
14second preceding calendar month by the Department on behalf of 
15the District, and not including any amount that the Department 
16determines is necessary to offset any amounts that were 
17payable to a different taxing body but were erroneously paid 
18to the District, and less any amounts that are transferred to 
19the STAR Bonds Revenue Fund, less 1.5% of the remainder, which 
20the Department shall transfer into the Tax Compliance and 
21Administration Fund. The Department, at the time of each 
22monthly disbursement to the District, shall prepare and 
23certify to the State Comptroller the amount to be transferred 
24into the Tax Compliance and Administration Fund under this 
25subsection. Within 10 days after receipt by the Comptroller of 
26the certification of the amount to be paid to the District and 
 
 
10300HB4951sam002- 807 -LRB103 38094 HLH 74177 a


1the Tax Compliance and Administration Fund, the Comptroller 
2shall cause an order to be drawn for payment for the amount in 
3accordance with the direction in the certification.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 
5101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)

6 Section 75-60. The Regional Transportation Authority Act 
7is amended by changing Section 4.03 as follows:

8 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
9 Sec. 4.03. Taxes. 
10 (a) In order to carry out any of the powers or purposes of 
11the Authority, the Board may by ordinance adopted with the 
12concurrence of 12 of the then Directors, impose throughout the 
13metropolitan region any or all of the taxes provided in this 
14Section. Except as otherwise provided in this Act, taxes 
15imposed under this Section and civil penalties imposed 
16incident thereto shall be collected and enforced by the State 
17Department of Revenue. The Department shall have the power to 
18administer and enforce the taxes and to determine all rights 
19for refunds for erroneous payments of the taxes. Nothing in 
20Public Act 95-708 is intended to invalidate any taxes 
21currently imposed by the Authority. The increased vote 
22requirements to impose a tax shall only apply to actions taken 
23after January 1, 2008 (the effective date of Public Act 
2495-708). 
 
 
10300HB4951sam002- 808 -LRB103 38094 HLH 74177 a


1 (b) The Board may impose a public transportation tax upon 
2all persons engaged in the metropolitan region in the business 
3of selling at retail motor fuel for operation of motor 
4vehicles upon public highways. The tax shall be at a rate not 
5to exceed 5% of the gross receipts from the sales of motor fuel 
6in the course of the business. As used in this Act, the term 
7"motor fuel" shall have the same meaning as in the Motor Fuel 
8Tax Law. The Board may provide for details of the tax. The 
9provisions of any tax shall conform, as closely as may be 
10practicable, to the provisions of the Municipal Retailers 
11Occupation Tax Act, including without limitation, conformity 
12to penalties with respect to the tax imposed and as to the 
13powers of the State Department of Revenue to promulgate and 
14enforce rules and regulations relating to the administration 
15and enforcement of the provisions of the tax imposed, except 
16that reference in the Act to any municipality shall refer to 
17the Authority and the tax shall be imposed only with regard to 
18receipts from sales of motor fuel in the metropolitan region, 
19at rates as limited by this Section.
20 (c) In connection with the tax imposed under paragraph (b) 
21of this Section, the Board may impose a tax upon the privilege 
22of using in the metropolitan region motor fuel for the 
23operation of a motor vehicle upon public highways, the tax to 
24be at a rate not in excess of the rate of tax imposed under 
25paragraph (b) of this Section. The Board may provide for 
26details of the tax.
 
 
10300HB4951sam002- 809 -LRB103 38094 HLH 74177 a


1 (d) The Board may impose a motor vehicle parking tax upon 
2the privilege of parking motor vehicles at off-street parking 
3facilities in the metropolitan region at which a fee is 
4charged, and may provide for reasonable classifications in and 
5exemptions to the tax, for administration and enforcement 
6thereof and for civil penalties and refunds thereunder and may 
7provide criminal penalties thereunder, the maximum penalties 
8not to exceed the maximum criminal penalties provided in the 
9Retailers' Occupation Tax Act. The Authority may collect and 
10enforce the tax itself or by contract with any unit of local 
11government. The State Department of Revenue shall have no 
12responsibility for the collection and enforcement unless the 
13Department agrees with the Authority to undertake the 
14collection and enforcement. As used in this paragraph, the 
15term "parking facility" means a parking area or structure 
16having parking spaces for more than 2 vehicles at which motor 
17vehicles are permitted to park in return for an hourly, daily, 
18or other periodic fee, whether publicly or privately owned, 
19but does not include parking spaces on a public street, the use 
20of which is regulated by parking meters.
21 (e) The Board may impose a Regional Transportation 
22Authority Retailers' Occupation Tax upon all persons engaged 
23in the business of selling tangible personal property at 
24retail in the metropolitan region. In Cook County, the tax 
25rate shall be 1.25% of the gross receipts from sales of 
26tangible personal property taxed at the 1% rate under the 
 
 
10300HB4951sam002- 810 -LRB103 38094 HLH 74177 a


1Retailers' Occupation Tax Act (or at the 0% rate imposed under 
2this amendatory Act of the 102nd General Assembly), and 1% of 
3the gross receipts from other taxable sales made in the course 
4of that business. In DuPage, Kane, Lake, McHenry, and Will 
5counties, the tax rate shall be 0.75% of the gross receipts 
6from all taxable sales made in the course of that business. The 
7rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will 
8counties under this Section on sales of aviation fuel on or 
9after December 1, 2019 shall, however, be 0.25% unless the 
10Regional Transportation Authority in DuPage, Kane, Lake, 
11McHenry, and Will counties has an "airport-related purpose" 
12and the additional 0.50% of the 0.75% tax on aviation fuel is 
13expended for airport-related purposes. If there is no 
14airport-related purpose to which aviation fuel tax revenue is 
15dedicated, then aviation fuel is excluded from the additional 
160.50% of the 0.75% tax. The tax imposed under this Section and 
17all civil penalties that may be assessed as an incident 
18thereof shall be collected and enforced by the State 
19Department of Revenue. The Department shall have full power to 
20administer and enforce this Section; to collect all taxes and 
21penalties so collected in the manner hereinafter provided; and 
22to determine all rights to credit memoranda arising on account 
23of the erroneous payment of tax or penalty hereunder. In the 
24administration of, and compliance with this Section, the 
25Department and persons who are subject to this Section shall 
26have the same rights, remedies, privileges, immunities, 
 
 
10300HB4951sam002- 811 -LRB103 38094 HLH 74177 a


1powers, and duties, and be subject to the same conditions, 
2restrictions, limitations, penalties, exclusions, exemptions, 
3and definitions of terms, and employ the same modes of 
4procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 
51e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions 
6therein other than the State rate of tax), 2c, 3 (except as to 
7the disposition of taxes and penalties collected, and except 
8that the retailer's discount is not allowed for taxes paid on 
9aviation fuel that are subject to the revenue use requirements 
10of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 
115d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 
1210, 11, 12, and 13 of the Retailers' Occupation Tax Act and 
13Section 3-7 of the Uniform Penalty and Interest Act, as fully 
14as if those provisions were set forth herein.
15 The Board and DuPage, Kane, Lake, McHenry, and Will 
16counties must comply with the certification requirements for 
17airport-related purposes under Section 2-22 of the Retailers' 
18Occupation Tax Act. For purposes of this Section, 
19"airport-related purposes" has the meaning ascribed in Section 
206z-20.2 of the State Finance Act. This exclusion for aviation 
21fuel only applies for so long as the revenue use requirements 
22of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
23Authority. 
24 Persons subject to any tax imposed under the authority 
25granted in this Section may reimburse themselves for their 
26seller's tax liability hereunder by separately stating the tax 
 
 
10300HB4951sam002- 812 -LRB103 38094 HLH 74177 a


1as an additional charge, which charge may be stated in 
2combination in a single amount with State taxes that sellers 
3are required to collect under the Use Tax Act, under any 
4bracket schedules the Department may prescribe.
5 Whenever the Department determines that a refund should be 
6made under this Section to a claimant instead of issuing a 
7credit memorandum, the Department shall notify the State 
8Comptroller, who shall cause the warrant to be drawn for the 
9amount specified, and to the person named, in the notification 
10from the Department. The refund shall be paid by the State 
11Treasurer out of the Regional Transportation Authority tax 
12fund established under paragraph (n) of this Section or the 
13Local Government Aviation Trust Fund, as appropriate.
14 If a tax is imposed under this subsection (e), a tax shall 
15also be imposed under subsections (f) and (g) of this Section.
16 For the purpose of determining whether a tax authorized 
17under this Section is applicable, a retail sale by a producer 
18of coal or other mineral mined in Illinois, is a sale at retail 
19at the place where the coal or other mineral mined in Illinois 
20is extracted from the earth. This paragraph does not apply to 
21coal or other mineral when it is delivered or shipped by the 
22seller to the purchaser at a point outside Illinois so that the 
23sale is exempt under the Federal Constitution as a sale in 
24interstate or foreign commerce.
25 No tax shall be imposed or collected under this subsection 
26on the sale of a motor vehicle in this State to a resident of 
 
 
10300HB4951sam002- 813 -LRB103 38094 HLH 74177 a


1another state if that motor vehicle will not be titled in this 
2State. 
3 Nothing in this Section shall be construed to authorize 
4the Regional Transportation Authority to impose a tax upon the 
5privilege of engaging in any business that under the 
6Constitution of the United States may not be made the subject 
7of taxation by this State.
8 (f) If a tax has been imposed under paragraph (e), a 
9Regional Transportation Authority Service Occupation Tax shall 
10also be imposed upon all persons engaged, in the metropolitan 
11region in the business of making sales of service, who as an 
12incident to making the sales of service, transfer tangible 
13personal property within the metropolitan region, either in 
14the form of tangible personal property or in the form of real 
15estate as an incident to a sale of service. In Cook County, the 
16tax rate shall be: (1) 1.25% of the serviceman's cost price of 
17food prepared for immediate consumption and transferred 
18incident to a sale of service subject to the service 
19occupation tax by an entity licensed under the Hospital 
20Licensing Act, the Nursing Home Care Act, the Specialized 
21Mental Health Rehabilitation Act of 2013, the ID/DD Community 
22Care Act, or the MC/DD Act that is located in the metropolitan 
23region; (2) 1.25% of the selling price of tangible personal 
24property taxed at the 1% rate under the Service Occupation Tax 
25Act (or at the 0% rate imposed under this amendatory Act of the 
26102nd General Assembly); and (3) 1% of the selling price from 
 
 
10300HB4951sam002- 814 -LRB103 38094 HLH 74177 a


1other taxable sales of tangible personal property transferred. 
2In DuPage, Kane, Lake, McHenry, and Will counties, the rate 
3shall be 0.75% of the selling price of all tangible personal 
4property transferred. The rate of tax imposed in DuPage, Kane, 
5Lake, McHenry, and Will counties under this Section on sales 
6of aviation fuel on or after December 1, 2019 shall, however, 
7be 0.25% unless the Regional Transportation Authority in 
8DuPage, Kane, Lake, McHenry, and Will counties has an 
9"airport-related purpose" and the additional 0.50% of the 
100.75% tax on aviation fuel is expended for airport-related 
11purposes. If there is no airport-related purpose to which 
12aviation fuel tax revenue is dedicated, then aviation fuel is 
13excluded from the additional 0.5% of the 0.75% tax.
14 The Board and DuPage, Kane, Lake, McHenry, and Will 
15counties must comply with the certification requirements for 
16airport-related purposes under Section 2-22 of the Retailers' 
17Occupation Tax Act. For purposes of this Section, 
18"airport-related purposes" has the meaning ascribed in Section 
196z-20.2 of the State Finance Act. This exclusion for aviation 
20fuel only applies for so long as the revenue use requirements 
21of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the 
22Authority. 
23 The tax imposed under this paragraph and all civil 
24penalties that may be assessed as an incident thereof shall be 
25collected and enforced by the State Department of Revenue. The 
26Department shall have full power to administer and enforce 
 
 
10300HB4951sam002- 815 -LRB103 38094 HLH 74177 a


1this paragraph; to collect all taxes and penalties due 
2hereunder; to dispose of taxes and penalties collected in the 
3manner hereinafter provided; and to determine all rights to 
4credit memoranda arising on account of the erroneous payment 
5of tax or penalty hereunder. In the administration of and 
6compliance with this paragraph, the Department and persons who 
7are subject to this paragraph shall have the same rights, 
8remedies, privileges, immunities, powers, and duties, and be 
9subject to the same conditions, restrictions, limitations, 
10penalties, exclusions, exemptions, and definitions of terms, 
11and employ the same modes of procedure, as are prescribed in 
12Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all 
13provisions therein other than the State rate of tax), 4 
14(except that the reference to the State shall be to the 
15Authority), 5, 7, 8 (except that the jurisdiction to which the 
16tax shall be a debt to the extent indicated in that Section 8 
17shall be the Authority), 9 (except as to the disposition of 
18taxes and penalties collected, and except that the returned 
19merchandise credit for this tax may not be taken against any 
20State tax, and except that the retailer's discount is not 
21allowed for taxes paid on aviation fuel that are subject to the 
22revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
2347133), 10, 11, 12 (except the reference therein to Section 2b 
24of the Retailers' Occupation Tax Act), 13 (except that any 
25reference to the State shall mean the Authority), the first 
26paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service 
 
 
10300HB4951sam002- 816 -LRB103 38094 HLH 74177 a


1Occupation Tax Act and Section 3-7 of the Uniform Penalty and 
2Interest Act, as fully as if those provisions were set forth 
3herein.
4 Persons subject to any tax imposed under the authority 
5granted in this paragraph may reimburse themselves for their 
6serviceman's tax liability hereunder by separately stating the 
7tax as an additional charge, that charge may be stated in 
8combination in a single amount with State tax that servicemen 
9are authorized to collect under the Service Use Tax Act, under 
10any bracket schedules the Department may prescribe.
11 Whenever the Department determines that a refund should be 
12made under this paragraph to a claimant instead of issuing a 
13credit memorandum, the Department shall notify the State 
14Comptroller, who shall cause the warrant to be drawn for the 
15amount specified, and to the person named in the notification 
16from the Department. The refund shall be paid by the State 
17Treasurer out of the Regional Transportation Authority tax 
18fund established under paragraph (n) of this Section or the 
19Local Government Aviation Trust Fund, as appropriate.
20 Nothing in this paragraph shall be construed to authorize 
21the Authority to impose a tax upon the privilege of engaging in 
22any business that under the Constitution of the United States 
23may not be made the subject of taxation by the State.
24 (g) If a tax has been imposed under paragraph (e), a tax 
25shall also be imposed upon the privilege of using in the 
26metropolitan region, any item of tangible personal property 
 
 
10300HB4951sam002- 817 -LRB103 38094 HLH 74177 a


1that is purchased outside the metropolitan region at retail 
2from a retailer, and that is titled or registered with an 
3agency of this State's government. In Cook County, the tax 
4rate shall be 1% of the selling price of the tangible personal 
5property, as "selling price" is defined in the Use Tax Act. In 
6DuPage, Kane, Lake, McHenry, and Will counties, the tax rate 
7shall be 0.75% of the selling price of the tangible personal 
8property, as "selling price" is defined in the Use Tax Act. The 
9tax shall be collected from persons whose Illinois address for 
10titling or registration purposes is given as being in the 
11metropolitan region. The tax shall be collected by the 
12Department of Revenue for the Regional Transportation 
13Authority. The tax must be paid to the State, or an exemption 
14determination must be obtained from the Department of Revenue, 
15before the title or certificate of registration for the 
16property may be issued. The tax or proof of exemption may be 
17transmitted to the Department by way of the State agency with 
18which, or the State officer with whom, the tangible personal 
19property must be titled or registered if the Department and 
20the State agency or State officer determine that this 
21procedure will expedite the processing of applications for 
22title or registration.
23 The Department shall have full power to administer and 
24enforce this paragraph; to collect all taxes, penalties, and 
25interest due hereunder; to dispose of taxes, penalties, and 
26interest collected in the manner hereinafter provided; and to 
 
 
10300HB4951sam002- 818 -LRB103 38094 HLH 74177 a


1determine all rights to credit memoranda or refunds arising on 
2account of the erroneous payment of tax, penalty, or interest 
3hereunder. In the administration of and compliance with this 
4paragraph, the Department and persons who are subject to this 
5paragraph shall have the same rights, remedies, privileges, 
6immunities, powers, and duties, and be subject to the same 
7conditions, restrictions, limitations, penalties, exclusions, 
8exemptions, and definitions of terms and employ the same modes 
9of procedure, as are prescribed in Sections 2 (except the 
10definition of "retailer maintaining a place of business in 
11this State"), 3 through 3-80 (except provisions pertaining to 
12the State rate of tax, and except provisions concerning 
13collection or refunding of the tax by retailers), 4, 11, 12, 
1412a, 14, 15, 19 (except the portions pertaining to claims by 
15retailers and except the last paragraph concerning refunds), 
1620, 21, and 22 of the Use Tax Act, and are not inconsistent 
17with this paragraph, as fully as if those provisions were set 
18forth herein.
19 Whenever the Department determines that a refund should be 
20made under this paragraph to a claimant instead of issuing a 
21credit memorandum, the Department shall notify the State 
22Comptroller, who shall cause the order to be drawn for the 
23amount specified, and to the person named in the notification 
24from the Department. The refund shall be paid by the State 
25Treasurer out of the Regional Transportation Authority tax 
26fund established under paragraph (n) of this Section.
 
 
10300HB4951sam002- 819 -LRB103 38094 HLH 74177 a


1 (g-5) If, on January 1, 2025, a unit of local government 
2has in effect a tax under subsections (e), (f), and (g), or if, 
3after January 1, 2025, a unit of local government imposes a tax 
4under subsections (e), (f), and (g), then that tax applies to 
5leases of tangible personal property in effect, entered into, 
6or renewed on or after that date in the same manner as the tax 
7under this Section and in accordance with the changes made by 
8this amendatory Act of the 103rd General Assembly. 
9 (h) The Authority may impose a replacement vehicle tax of 
10$50 on any passenger car as defined in Section 1-157 of the 
11Illinois Vehicle Code purchased within the metropolitan region 
12by or on behalf of an insurance company to replace a passenger 
13car of an insured person in settlement of a total loss claim. 
14The tax imposed may not become effective before the first day 
15of the month following the passage of the ordinance imposing 
16the tax and receipt of a certified copy of the ordinance by the 
17Department of Revenue. The Department of Revenue shall collect 
18the tax for the Authority in accordance with Sections 3-2002 
19and 3-2003 of the Illinois Vehicle Code.
20 The Department shall immediately pay over to the State 
21Treasurer, ex officio, as trustee, all taxes collected 
22hereunder.
23 As soon as possible after the first day of each month, 
24beginning January 1, 2011, upon certification of the 
25Department of Revenue, the Comptroller shall order 
26transferred, and the Treasurer shall transfer, to the STAR 
 
 
10300HB4951sam002- 820 -LRB103 38094 HLH 74177 a


1Bonds Revenue Fund the local sales tax increment, as defined 
2in the Innovation Development and Economy Act, collected under 
3this Section during the second preceding calendar month for 
4sales within a STAR bond district.
5 After the monthly transfer to the STAR Bonds Revenue Fund, 
6on or before the 25th day of each calendar month, the 
7Department shall prepare and certify to the Comptroller the 
8disbursement of stated sums of money to the Authority. The 
9amount to be paid to the Authority shall be the amount 
10collected hereunder during the second preceding calendar month 
11by the Department, less any amount determined by the 
12Department to be necessary for the payment of refunds, and 
13less any amounts that are transferred to the STAR Bonds 
14Revenue Fund. Within 10 days after receipt by the Comptroller 
15of the disbursement certification to the Authority provided 
16for in this Section to be given to the Comptroller by the 
17Department, the Comptroller shall cause the orders to be drawn 
18for that amount in accordance with the directions contained in 
19the certification.
20 (i) The Board may not impose any other taxes except as it 
21may from time to time be authorized by law to impose.
22 (j) A certificate of registration issued by the State 
23Department of Revenue to a retailer under the Retailers' 
24Occupation Tax Act or under the Service Occupation Tax Act 
25shall permit the registrant to engage in a business that is 
26taxed under the tax imposed under paragraphs (b), (e), (f) or 
 
 
10300HB4951sam002- 821 -LRB103 38094 HLH 74177 a


1(g) of this Section and no additional registration shall be 
2required under the tax. A certificate issued under the Use Tax 
3Act or the Service Use Tax Act shall be applicable with regard 
4to any tax imposed under paragraph (c) of this Section.
5 (k) The provisions of any tax imposed under paragraph (c) 
6of this Section shall conform as closely as may be practicable 
7to the provisions of the Use Tax Act, including without 
8limitation conformity as to penalties with respect to the tax 
9imposed and as to the powers of the State Department of Revenue 
10to promulgate and enforce rules and regulations relating to 
11the administration and enforcement of the provisions of the 
12tax imposed. The taxes shall be imposed only on use within the 
13metropolitan region and at rates as provided in the paragraph.
14 (l) The Board in imposing any tax as provided in 
15paragraphs (b) and (c) of this Section, shall, after seeking 
16the advice of the State Department of Revenue, provide means 
17for retailers, users or purchasers of motor fuel for purposes 
18other than those with regard to which the taxes may be imposed 
19as provided in those paragraphs to receive refunds of taxes 
20improperly paid, which provisions may be at variance with the 
21refund provisions as applicable under the Municipal Retailers 
22Occupation Tax Act. The State Department of Revenue may 
23provide for certificates of registration for users or 
24purchasers of motor fuel for purposes other than those with 
25regard to which taxes may be imposed as provided in paragraphs 
26(b) and (c) of this Section to facilitate the reporting and 
 
 
10300HB4951sam002- 822 -LRB103 38094 HLH 74177 a


1nontaxability of the exempt sales or uses.
2 (m) Any ordinance imposing or discontinuing any tax under 
3this Section shall be adopted and a certified copy thereof 
4filed with the Department on or before June 1, whereupon the 
5Department of Revenue shall proceed to administer and enforce 
6this Section on behalf of the Regional Transportation 
7Authority as of September 1 next following such adoption and 
8filing. Beginning January 1, 1992, an ordinance or resolution 
9imposing or discontinuing the tax hereunder shall be adopted 
10and a certified copy thereof filed with the Department on or 
11before the first day of July, whereupon the Department shall 
12proceed to administer and enforce this Section as of the first 
13day of October next following such adoption and filing. 
14Beginning January 1, 1993, an ordinance or resolution 
15imposing, increasing, decreasing, or discontinuing the tax 
16hereunder shall be adopted and a certified copy thereof filed 
17with the Department, whereupon the Department shall proceed to 
18administer and enforce this Section as of the first day of the 
19first month to occur not less than 60 days following such 
20adoption and filing. Any ordinance or resolution of the 
21Authority imposing a tax under this Section and in effect on 
22August 1, 2007 shall remain in full force and effect and shall 
23be administered by the Department of Revenue under the terms 
24and conditions and rates of tax established by such ordinance 
25or resolution until the Department begins administering and 
26enforcing an increased tax under this Section as authorized by 
 
 
10300HB4951sam002- 823 -LRB103 38094 HLH 74177 a


1Public Act 95-708. The tax rates authorized by Public Act 
295-708 are effective only if imposed by ordinance of the 
3Authority. 
4 (n) Except as otherwise provided in this subsection (n), 
5the State Department of Revenue shall, upon collecting any 
6taxes as provided in this Section, pay the taxes over to the 
7State Treasurer as trustee for the Authority. The taxes shall 
8be held in a trust fund outside the State Treasury. If an 
9airport-related purpose has been certified, taxes and 
10penalties collected in DuPage, Kane, Lake, McHenry and Will 
11counties on aviation fuel sold on or after December 1, 2019 
12from the 0.50% of the 0.75% rate shall be immediately paid over 
13by the Department to the State Treasurer, ex officio, as 
14trustee, for deposit into the Local Government Aviation Trust 
15Fund. The Department shall only pay moneys into the Local 
16Government Aviation Trust Fund under this Act for so long as 
17the revenue use requirements of 49 U.S.C. 47107(b) and 49 
18U.S.C. 47133 are binding on the Authority. On or before the 
1925th day of each calendar month, the State Department of 
20Revenue shall prepare and certify to the Comptroller of the 
21State of Illinois and to the Authority (i) the amount of taxes 
22collected in each county other than Cook County in the 
23metropolitan region, (not including, if an airport-related 
24purpose has been certified, the taxes and penalties collected 
25from the 0.50% of the 0.75% rate on aviation fuel sold on or 
26after December 1, 2019 that are deposited into the Local 
 
 
10300HB4951sam002- 824 -LRB103 38094 HLH 74177 a


1Government Aviation Trust Fund) (ii) the amount of taxes 
2collected within the City of Chicago, and (iii) the amount 
3collected in that portion of Cook County outside of Chicago, 
4each amount less the amount necessary for the payment of 
5refunds to taxpayers located in those areas described in items 
6(i), (ii), and (iii), and less 1.5% of the remainder, which 
7shall be transferred from the trust fund into the Tax 
8Compliance and Administration Fund. The Department, at the 
9time of each monthly disbursement to the Authority, shall 
10prepare and certify to the State Comptroller the amount to be 
11transferred into the Tax Compliance and Administration Fund 
12under this subsection. Within 10 days after receipt by the 
13Comptroller of the certification of the amounts, the 
14Comptroller shall cause an order to be drawn for the transfer 
15of the amount certified into the Tax Compliance and 
16Administration Fund and the payment of two-thirds of the 
17amounts certified in item (i) of this subsection to the 
18Authority and one-third of the amounts certified in item (i) 
19of this subsection to the respective counties other than Cook 
20County and the amount certified in items (ii) and (iii) of this 
21subsection to the Authority.
22 In addition to the disbursement required by the preceding 
23paragraph, an allocation shall be made in July 1991 and each 
24year thereafter to the Regional Transportation Authority. The 
25allocation shall be made in an amount equal to the average 
26monthly distribution during the preceding calendar year 
 
 
10300HB4951sam002- 825 -LRB103 38094 HLH 74177 a


1(excluding the 2 months of lowest receipts) and the allocation 
2shall include the amount of average monthly distribution from 
3the Regional Transportation Authority Occupation and Use Tax 
4Replacement Fund. The distribution made in July 1992 and each 
5year thereafter under this paragraph and the preceding 
6paragraph shall be reduced by the amount allocated and 
7disbursed under this paragraph in the preceding calendar year. 
8The Department of Revenue shall prepare and certify to the 
9Comptroller for disbursement the allocations made in 
10accordance with this paragraph.
11 (o) Failure to adopt a budget ordinance or otherwise to 
12comply with Section 4.01 of this Act or to adopt a Five-year 
13Capital Program or otherwise to comply with paragraph (b) of 
14Section 2.01 of this Act shall not affect the validity of any 
15tax imposed by the Authority otherwise in conformity with law.
16 (p) At no time shall a public transportation tax or motor 
17vehicle parking tax authorized under paragraphs (b), (c), and 
18(d) of this Section be in effect at the same time as any 
19retailers' occupation, use or service occupation tax 
20authorized under paragraphs (e), (f), and (g) of this Section 
21is in effect.
22 Any taxes imposed under the authority provided in 
23paragraphs (b), (c), and (d) shall remain in effect only until 
24the time as any tax authorized by paragraph (e), (f), or (g) of 
25this Section are imposed and becomes effective. Once any tax 
26authorized by paragraph (e), (f), or (g) is imposed the Board 
 
 
10300HB4951sam002- 826 -LRB103 38094 HLH 74177 a


1may not reimpose taxes as authorized in paragraphs (b), (c), 
2and (d) of the Section unless any tax authorized by paragraph 
3(e), (f), or (g) of this Section becomes ineffective by means 
4other than an ordinance of the Board.
5 (q) Any existing rights, remedies and obligations 
6(including enforcement by the Regional Transportation 
7Authority) arising under any tax imposed under paragraph (b), 
8(c), or (d) of this Section shall not be affected by the 
9imposition of a tax under paragraph (e), (f), or (g) of this 
10Section.
11(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 
12101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

13
ARTICLE 80. 


14 Section 80-5. The Cigarette Tax Act is amended by changing 
15Sections 4b, 9, 9e, and 9f as follows:

16 (35 ILCS 130/4b) (from Ch. 120, par. 453.4b)
17 Sec. 4b. (a) The Department may, in its discretion, upon 
18application, issue permits authorizing the payment of the tax 
19herein imposed by out-of-State cigarette manufacturers who are 
20not required to be licensed as distributors of cigarettes in 
21this State, but who elect to qualify under this Act as 
22distributors of cigarettes in this State, and who, to the 
23satisfaction of the Department, furnish adequate security to 
 
 
10300HB4951sam002- 827 -LRB103 38094 HLH 74177 a


1insure payment of the tax, provided that any such permit shall 
2extend only to cigarettes which such permittee manufacturer 
3places in original packages that are contained inside a sealed 
4transparent wrapper. Such permits shall be issued without 
5charge in such form as the Department may prescribe and shall 
6not be transferable or assignable.
7 The following are ineligible to receive a distributor's 
8permit under this subsection:
9  (1) a person who is not of good character and 
10 reputation in the community in which he resides; the 
11 Department may consider past conviction of a felony but 
12 the conviction shall not operate as an absolute bar to 
13 receiving a permit; 
14  (2) a person who has been convicted of a felony under 
15 any Federal or State law, if the Department, after 
16 investigation and a hearing and consideration of 
17 mitigating factors and evidence of rehabilitation 
18 contained in the applicant's record, including those in 
19 Section 4i of this Act, determines that such person has 
20 not been sufficiently rehabilitated to warrant the public 
21 trust and the conviction will impair the ability of the 
22 person to engage in the position for which a permit is 
23 sought;
24  (3) a corporation, if any officer, manager or director 
25 thereof, or any stockholder or stockholders owning in the 
26 aggregate more than 5% of the stock of such corporation, 
 
 
10300HB4951sam002- 828 -LRB103 38094 HLH 74177 a


1 would not be eligible to receive a permit under this Act 
2 for any reason.
3 With respect to cigarettes which come within the scope of 
4such a permit and which any such permittee delivers or causes 
5to be delivered in Illinois to licensed distributors, such 
6permittee shall remit the tax imposed by this Act at the times 
7provided for in Section 3 of this Act. Each such remittance 
8shall be accompanied by a return filed with the Department on a 
9form to be prescribed and furnished by the Department and 
10shall disclose such information as the Department may lawfully 
11require. Information that the Department may lawfully require 
12includes information related to the uniform regulation and 
13taxation of cigarettes. The Department may promulgate rules to 
14require that the permittee's return be accompanied by 
15appropriate computer-generated magnetic media supporting 
16schedule data in the format prescribed by the Department, 
17unless, as provided by rule, the Department grants an 
18exception upon petition of the permittee. Each such return 
19shall be accompanied by a copy of each invoice rendered by the 
20permittee to any licensed distributor to whom the permittee 
21delivered cigarettes of the type covered by the permit (or 
22caused cigarettes of the type covered by the permit to be 
23delivered) in Illinois during the period covered by such 
24return.
25 Such permit may be suspended, canceled or revoked when, at 
26any time, the Department considers that the security given is 
 
 
10300HB4951sam002- 829 -LRB103 38094 HLH 74177 a


1inadequate, or that such tax can more effectively be collected 
2from distributors located in this State, or whenever the 
3permittee violates any provision of this Act or any lawful 
4rule or regulation issued by the Department pursuant to this 
5Act or is determined to be ineligible for a distributor's 
6permit under this Act as provided in this Section, whenever 
7the permittee shall notify the Department in writing of his 
8desire to have the permit canceled. The Department shall have 
9the power, in its discretion, to issue a new permit after such 
10suspension, cancellation or revocation, except when the person 
11who would receive the permit is ineligible to receive a 
12distributor's permit under this Act.
13 All permits issued by the Department under this Act shall 
14be valid for not to exceed one year after issuance unless 
15sooner revoked, canceled or suspended as in this Act provided. 
16 (b) Out-of-state cigarette manufacturers who are not 
17required to be licensed as distributors of cigarettes in this 
18State and who do not elect to obtain approval under subsection 
194b(a) to pay the tax imposed by this Act, but who elect to 
20qualify under this Act as distributors of cigarettes in this 
21State for purposes of shipping and delivering unstamped 
22original packages of cigarettes into this State to licensed 
23distributors, shall obtain a permit from the Department. These 
24permits shall be issued without charge in such form as the 
25Department may prescribe and shall not be transferable or 
26assignable. 
 
 
10300HB4951sam002- 830 -LRB103 38094 HLH 74177 a


1 The following are ineligible to receive a distributor's 
2permit under this subsection: 
3  (1) a person who is not of good character and 
4 reputation in the community in which he or she resides; 
5 the Department may consider past conviction of a felony 
6 but the conviction shall not operate as an absolute bar to 
7 receiving a permit; 
8  (2) a person who has been convicted of a felony under 
9 any federal or State law, if the Department, after 
10 investigation and a hearing and consideration of 
11 mitigating factors and evidence of rehabilitation 
12 contained in the applicant's record, including those set 
13 forth in Section 4i of this Act, determines that the 
14 person has not been sufficiently rehabilitated to warrant 
15 the public trust and the conviction will impair the 
16 ability of the person to engage in the position for which a 
17 permit is sought; and 
18  (3) a corporation, if any officer, manager, or 
19 director thereof, or any stockholder or stockholders 
20 owning in the aggregate more than 5% of the stock of the 
21 corporation, would not be eligible to receive a permit 
22 under this Act for any reason. 
23 With respect to original packages of cigarettes that such 
24permittee delivers or causes to be delivered in Illinois and 
25distributes to the public for promotional purposes without 
26consideration, the permittee shall pay the tax imposed by this 
 
 
10300HB4951sam002- 831 -LRB103 38094 HLH 74177 a


1Act by remitting the amount thereof to the Department by the 
25th day of each month covering cigarettes shipped or otherwise 
3delivered in Illinois for those purposes during the preceding 
4calendar month. The permittee, before delivering those 
5cigarettes or causing those cigarettes to be delivered in this 
6State, shall evidence his or her obligation to remit the taxes 
7due with respect to those cigarettes by imprinting language to 
8be prescribed by the Department on each original package of 
9cigarettes, in such place thereon and in such manner also to be 
10prescribed by the Department. The imprinted language shall 
11acknowledge the permittee's payment of or liability for the 
12tax imposed by this Act with respect to the distribution of 
13those cigarettes. 
14 With respect to cigarettes that the permittee delivers or 
15causes to be delivered in Illinois to Illinois licensed 
16distributors or distributed to the public for promotional 
17purposes, the permittee shall, by the 5th day of each month, 
18file with the Department, a report covering cigarettes shipped 
19or otherwise delivered in Illinois to licensed distributors or 
20distributed to the public for promotional purposes during the 
21preceding calendar month on a form to be prescribed and 
22furnished by the Department and shall disclose such other 
23information as the Department may lawfully require. 
24Information that the Department may lawfully require includes 
25information related to the uniform regulation and taxation of 
26cigarettes. The Department may promulgate rules to require 
 
 
10300HB4951sam002- 832 -LRB103 38094 HLH 74177 a


1that the permittee's report be accompanied by appropriate 
2computer-generated magnetic media supporting schedule data in 
3the format prescribed by the Department, unless, as provided 
4by rule, the Department grants an exception upon petition of 
5the permittee. Each such report shall be accompanied by a copy 
6of each invoice rendered by the permittee to any purchaser to 
7whom the permittee delivered cigarettes of the type covered by 
8the permit (or caused cigarettes of the type covered by the 
9permit to be delivered) in Illinois during the period covered 
10by such report. 
11 Such permit may be suspended, canceled, or revoked 
12whenever the permittee violates any provision of this Act or 
13any lawful rule or regulation issued by the Department 
14pursuant to this Act, is determined to be ineligible for a 
15distributor's permit under this Act as provided in this 
16Section, or notifies the Department in writing of his or her 
17desire to have the permit canceled. The Department shall have 
18the power, in its discretion, to issue a new permit after such 
19suspension, cancellation, or revocation, except when the 
20person who would receive the permit is ineligible to receive a 
21distributor's permit under this Act. 
22 All permits issued by the Department under this Act shall 
23be valid for a period not to exceed one year after issuance 
24unless sooner revoked, canceled, or suspended as provided in 
25this Act. 
26(Source: P.A. 100-286, eff. 1-1-18.)

 
 
10300HB4951sam002- 833 -LRB103 38094 HLH 74177 a


1 (35 ILCS 130/9) (from Ch. 120, par. 453.9)
2 Sec. 9. Returns; remittance. Every distributor who is 
3required to procure a license under this Act, but who is not a 
4manufacturer of cigarettes in original packages which are 
5contained in a sealed transparent wrapper, shall, on or before 
6the 15th day of each calendar month, file a return with the 
7Department, showing the quantity of cigarettes manufactured 
8during the preceding calendar month, the quantity of 
9cigarettes brought into this State or caused to be brought 
10into this State from outside this State during the preceding 
11calendar month without authorized evidence on the original 
12packages of such cigarettes underneath the sealed transparent 
13wrapper thereof that the tax liability imposed by this Act has 
14been assumed by the out-of-State seller of such cigarettes, 
15the quantity of cigarettes purchased tax-paid during the 
16preceding calendar month either within or outside this State, 
17the quantity of cigarettes sold by manufacturer 
18representatives on behalf of the distributor, the quantity of 
19cigarettes sold to manufacturer representatives, and the 
20quantity of cigarettes sold or otherwise disposed of during 
21the preceding calendar month. Such return shall be filed upon 
22forms furnished and prescribed by the Department and shall 
23contain such other information as the Department may 
24reasonably require. Information that the Department may 
25reasonably require includes information related to the uniform 
 
 
10300HB4951sam002- 834 -LRB103 38094 HLH 74177 a


1regulation and taxation of cigarettes. The Department may 
2promulgate rules to require that the distributor's return be 
3accompanied by appropriate computer-generated magnetic media 
4supporting schedule data in the format required by the 
5Department, unless, as provided by rule, the Department grants 
6an exception upon petition of a distributor.
7 Illinois manufacturers of cigarettes in original packages 
8which are contained inside a sealed transparent wrapper shall 
9file a return by the 5th day of each month covering the 
10preceding calendar month. Each such return shall be 
11accompanied by the appropriate remittance for tax as provided 
12in Section 3 of this Act. Each such return shall show the 
13quantity of such cigarettes manufactured during the period 
14covered by the return, the quantity of cigarettes sold or 
15otherwise disposed of during the period covered by the return 
16and such other information as the Department may lawfully 
17require. Information that the Department may lawfully require 
18includes information related to the uniform regulation and 
19taxation of cigarettes. Such returns shall be filed on forms 
20prescribed and furnished by the Department. Each such return 
21shall be accompanied by a copy of each invoice rendered by such 
22manufacturer to any purchaser to whom such manufacturer 
23delivered cigarettes (or caused cigarettes to be delivered) 
24during the period covered by the return. The Department may 
25promulgate rules to require that the manufacturer's return be 
26accompanied by appropriate computer-generated magnetic media 
 
 
10300HB4951sam002- 835 -LRB103 38094 HLH 74177 a


1supporting schedule data in the format required by the 
2Department, unless, as provided by rule, the Department grants 
3an exception upon petition of a manufacturer.
4(Source: P.A. 97-587, eff. 8-26-11.)

5 (35 ILCS 130/9e)
6 Sec. 9e. Secondary distributors; reports. Every secondary 
7distributor who is required to procure a license under this 
8Act shall, on or before the 15th day of each calendar month, 
9file a report with the Department, showing the quantity of 
10cigarettes purchased during the preceding calendar month 
11either within or outside this State, and the quantity of 
12cigarettes sold to retailers or otherwise disposed of during 
13the preceding calendar month. Such reports shall be filed 
14electronically in such form prescribed by the Department and 
15shall contain such other information as the Department may 
16reasonably require. Information that the Department may 
17reasonably require includes information related to the uniform 
18regulation and taxation of cigarettes. The secondary 
19distributor's report shall be accompanied by appropriate 
20computer generated magnetic media supporting schedule data in 
21the format required by the Department, unless, as provided by 
22rule, the Department grants an exception upon petition of a 
23secondary distributor.
24 A certification by the Director of the Department that a 
25report has not been filed, or that information has not been 
 
 
10300HB4951sam002- 836 -LRB103 38094 HLH 74177 a


1supplied pursuant to the provisions of this Act, shall be 
2prima facie evidence thereof.
3(Source: P.A. 96-1027, eff. 7-12-10.)

4 (35 ILCS 130/9f)
5 Sec. 9f. Manufacturer representatives; reports. Every 
6manufacturer with authority to maintain manufacturer 
7representatives as defined by Section 4f of this Act shall, on 
8or before the 15th day of each calendar month, file a report 
9with the Department, showing the quantity of cigarettes 
10purchased from licensed distributors during the preceding 
11calendar month, either within or outside this State, and the 
12quantity of cigarettes sold to retailers or otherwise disposed 
13of during the preceding calendar month. Such reports shall be 
14filed in the form prescribed by the Department and shall 
15contain such other information as the Department may 
16reasonably require. Information that the Department may 
17reasonably require includes information related to the uniform 
18regulation and taxation of cigarettes. The report shall be 
19filed electronically and be accompanied by appropriate 
20computer generated magnetic media supporting schedule data in 
21the format required by the Department, unless, as provided by 
22rule, the Department grants an exception upon petition of a 
23manufacturer with authority to maintain manufacturer 
24representatives in this State.
25 A certification by the Director of the Department that a 
 
 
10300HB4951sam002- 837 -LRB103 38094 HLH 74177 a


1report has not been filed, or that information has not been 
2supplied pursuant to the provisions of this Act, shall be 
3prima facie evidence thereof. 
4(Source: P.A. 97-587, eff. 8-26-11.)

5 Section 80-10. The Cigarette Use Tax Act is amended by 
6changing Sections 11 and 11a as follows:

7 (35 ILCS 135/11) (from Ch. 120, par. 453.41)
8 Sec. 11. Return by distributor or manufacturer. Every 
9distributor, who is required or authorized to collect tax 
10under this Act, but who is not a manufacturer of cigarettes in 
11original packages which are contained in a sealed transparent 
12wrapper, shall, on or before the 15th day of each calendar 
13month, file a return with the Department, showing such 
14information as the Department may reasonably require. 
15Information that the Department may reasonably require 
16includes information related to the uniform regulation and 
17taxation of cigarettes. The Department may promulgate rules to 
18require that the distributor's return be accompanied by 
19appropriate computer-generated magnetic media supporting 
20schedule data in the format required by the Department, 
21unless, as provided by rule, the Department grants an 
22exception upon petition of a distributor.
23 Illinois manufacturers of cigarettes in original packages 
24which are contained inside a sealed transparent wrapper shall 
 
 
10300HB4951sam002- 838 -LRB103 38094 HLH 74177 a


1file a return by the 5th day of each month covering the 
2preceding calendar month. Each such return shall be 
3accompanied by the appropriate remittance for tax as provided 
4in Section 3 of this Act. Each such return shall disclose such 
5information as the Department may lawfully require. 
6Information that the Department may lawfully require includes 
7information related to the uniform regulation and taxation of 
8cigarettes. Each such return shall be accompanied by a copy of 
9each invoice rendered by such manufacturer to any purchaser to 
10whom such manufacturer delivered cigarettes (or caused 
11cigarettes to be delivered) during the period covered by the 
12return. The Department may promulgate rules to require that 
13the manufacturer's return be accompanied by appropriate 
14computer-generated magnetic media supporting schedule data in 
15the format required by the Department, unless, as provided by 
16rule, the Department grants an exception upon petition of a 
17manufacturer.
18 No distributor shall be required to return information to 
19the extent to which the reporting of such information would be 
20a duplication of such distributor's reporting of information 
21in any return which he is required to file with the Department 
22under the Cigarette Tax Act. Returns shall be filed on forms 
23prescribed by the Department.
24(Source: P.A. 92-322, eff. 1-1-02.)

25 (35 ILCS 135/11a)
 
 
10300HB4951sam002- 839 -LRB103 38094 HLH 74177 a


1 Sec. 11a. Secondary distributors; reports. Every secondary 
2distributor who is required to procure, or is authorized to 
3procure, a license under this Act shall, on or before the 15th 
4day of each calendar month, file a report with the Department, 
5showing the quantity of cigarettes purchased during the 
6preceding calendar month either within or outside this State, 
7and the quantity of cigarettes sold to Illinois retailers or 
8otherwise disposed of during the preceding calendar month. 
9Such reports shall be filed electronically in such form 
10prescribed by the Department and shall contain such other 
11information as the Department may reasonably require. 
12Information that the Department may reasonably require 
13includes information related to the uniform regulation and 
14taxation of cigarettes. The secondary distributor's report 
15shall be accompanied by appropriate computer generated 
16magnetic media supporting schedule data in the format required 
17by the Department, unless, as provided by rule, the Department 
18grants an exception upon petition of a secondary distributor.
19 A certification by the Director of the Department that a 
20report has not been filed, or that information has not been 
21supplied pursuant to the provisions of this Act, shall be 
22prima facie evidence thereof.
23(Source: P.A. 96-1027, eff. 7-12-10.)

24 Section 80-15. The Tobacco Products Tax Act of 1995 is 
25amended by changing Section 10-30 as follows:

 
 
10300HB4951sam002- 840 -LRB103 38094 HLH 74177 a


1 (35 ILCS 143/10-30)
2 Sec. 10-30. Returns.  
3 (a) Every distributor shall, on or before the 15th day of 
4each month, file a return with the Department covering the 
5preceding calendar month. The return shall disclose the 
6wholesale price for all tobacco products other than moist 
7snuff and the quantity in ounces of moist snuff sold or 
8otherwise disposed of and other information that the 
9Department may reasonably require. Information that the 
10Department may reasonably require includes information related 
11to the uniform regulation and taxation of tobacco products. 
12The return shall be filed upon a form prescribed and furnished 
13by the Department.
14 (b) In addition to the information required under 
15subsection (a), on or before the 15th day of each month, 
16covering the preceding calendar month, each stamping 
17distributor shall, on forms prescribed and furnished by the 
18Department, report the quantity of little cigars sold or 
19otherwise disposed of, including the number of packages of 
20little cigars sold or disposed of during the month containing 
2120 or 25 little cigars. 
22 (c) At the time when any return of any distributor is due 
23to be filed with the Department, the distributor shall also 
24remit to the Department the tax liability that the distributor 
25has incurred for transactions occurring in the preceding 
 
 
10300HB4951sam002- 841 -LRB103 38094 HLH 74177 a


1calendar month.
2 (d) The Department may adopt rules to require the 
3electronic filing of any return or document required to be 
4filed under this Act. Those rules may provide for exceptions 
5from the filing requirement set forth in this paragraph for 
6persons who demonstrate that they do not have access to the 
7Internet and petition the Department to waive the electronic 
8filing requirement. 
9 (e) If any payment provided for in this Section exceeds 
10the distributor's liabilities under this Act, as shown on an 
11original return, the distributor may credit such excess 
12payment against liability subsequently to be remitted to the 
13Department under this Act, in accordance with reasonable rules 
14adopted by the Department. 
15(Source: P.A. 100-1171, eff. 1-4-19.)

16
ARTICLE 85. 


17 Section 85-5. The Illinois Income Tax Act is amended by 
18changing Section 304 as follows:

19 (35 ILCS 5/304) (from Ch. 120, par. 3-304)
20 Sec. 304. Business income of persons other than residents. 
21 (a) In general. The business income of a person other than 
22a resident shall be allocated to this State if such person's 
23business income is derived solely from this State. If a person 
 
 
10300HB4951sam002- 842 -LRB103 38094 HLH 74177 a


1other than a resident derives business income from this State 
2and one or more other states, then, for tax years ending on or 
3before December 30, 1998, and except as otherwise provided by 
4this Section, such person's business income shall be 
5apportioned to this State by multiplying the income by a 
6fraction, the numerator of which is the sum of the property 
7factor (if any), the payroll factor (if any) and 200% of the 
8sales factor (if any), and the denominator of which is 4 
9reduced by the number of factors other than the sales factor 
10which have a denominator of zero and by an additional 2 if the 
11sales factor has a denominator of zero. For tax years ending on 
12or after December 31, 1998, and except as otherwise provided 
13by this Section, persons other than residents who derive 
14business income from this State and one or more other states 
15shall compute their apportionment factor by weighting their 
16property, payroll, and sales factors as provided in subsection 
17(h) of this Section.
18 (1) Property factor.
19  (A) The property factor is a fraction, the numerator 
20 of which is the average value of the person's real and 
21 tangible personal property owned or rented and used in the 
22 trade or business in this State during the taxable year 
23 and the denominator of which is the average value of all 
24 the person's real and tangible personal property owned or 
25 rented and used in the trade or business during the 
26 taxable year.
 
 
10300HB4951sam002- 843 -LRB103 38094 HLH 74177 a


1  (B) Property owned by the person is valued at its 
2 original cost. Property rented by the person is valued at 
3 8 times the net annual rental rate. Net annual rental rate 
4 is the annual rental rate paid by the person less any 
5 annual rental rate received by the person from 
6 sub-rentals.
7  (C) The average value of property shall be determined 
8 by averaging the values at the beginning and ending of the 
9 taxable year, but the Director may require the averaging 
10 of monthly values during the taxable year if reasonably 
11 required to reflect properly the average value of the 
12 person's property.
13 (2) Payroll factor.
14  (A) The payroll factor is a fraction, the numerator of 
15 which is the total amount paid in this State during the 
16 taxable year by the person for compensation, and the 
17 denominator of which is the total compensation paid 
18 everywhere during the taxable year.
19  (B) Compensation is paid in this State if:
20   (i) The individual's service is performed entirely 
21 within this State;
22   (ii) The individual's service is performed both 
23 within and without this State, but the service 
24 performed without this State is incidental to the 
25 individual's service performed within this State; or
26   (iii) For tax years ending prior to December 31, 
 
 
10300HB4951sam002- 844 -LRB103 38094 HLH 74177 a


1 2020, some of the service is performed within this 
2 State and either the base of operations, or if there is 
3 no base of operations, the place from which the 
4 service is directed or controlled is within this 
5 State, or the base of operations or the place from 
6 which the service is directed or controlled is not in 
7 any state in which some part of the service is 
8 performed, but the individual's residence is in this 
9 State. For tax years ending on or after December 31, 
10 2020, compensation is paid in this State if some of the 
11 individual's service is performed within this State, 
12 the individual's service performed within this State 
13 is nonincidental to the individual's service performed 
14 without this State, and the individual's service is 
15 performed within this State for more than 30 working 
16 days during the tax year. The amount of compensation 
17 paid in this State shall include the portion of the 
18 individual's total compensation for services performed 
19 on behalf of his or her employer during the tax year 
20 which the number of working days spent within this 
21 State during the tax year bears to the total number of 
22 working days spent both within and without this State 
23 during the tax year. For purposes of this paragraph: 
24    (a) The term "working day" means all days 
25 during the tax year in which the individual 
26 performs duties on behalf of his or her employer. 
 
 
10300HB4951sam002- 845 -LRB103 38094 HLH 74177 a


1 All days in which the individual performs no 
2 duties on behalf of his or her employer (e.g., 
3 weekends, vacation days, sick days, and holidays) 
4 are not working days.
5    (b) A working day is spent within this State 
6 if: 
7     (1) the individual performs service on 
8 behalf of the employer and a greater amount of 
9 time on that day is spent by the individual 
10 performing duties on behalf of the employer 
11 within this State, without regard to time 
12 spent traveling, than is spent performing 
13 duties on behalf of the employer without this 
14 State; or
15     (2) the only service the individual 
16 performs on behalf of the employer on that day 
17 is traveling to a destination within this 
18 State, and the individual arrives on that day. 
19    (c) Working days spent within this State do 
20 not include any day in which the employee is 
21 performing services in this State during a 
22 disaster period solely in response to a request 
23 made to his or her employer by the government of 
24 this State, by any political subdivision of this 
25 State, or by a person conducting business in this 
26 State to perform disaster or emergency-related 
 
 
10300HB4951sam002- 846 -LRB103 38094 HLH 74177 a


1 services in this State. For purposes of this item 
2 (c): 
3     "Declared State disaster or emergency" 
4 means a disaster or emergency event (i) for 
5 which a Governor's proclamation of a state of 
6 emergency has been issued or (ii) for which a 
7 Presidential declaration of a federal major 
8 disaster or emergency has been issued. 
9     "Disaster period" means a period that 
10 begins 10 days prior to the date of the 
11 Governor's proclamation or the President's 
12 declaration (whichever is earlier) and extends 
13 for a period of 60 calendar days after the end 
14 of the declared disaster or emergency period. 
15     "Disaster or emergency-related services" 
16 means repairing, renovating, installing, 
17 building, or rendering services or conducting 
18 other business activities that relate to 
19 infrastructure that has been damaged, 
20 impaired, or destroyed by the declared State 
21 disaster or emergency. 
22     "Infrastructure" means property and 
23 equipment owned or used by a public utility, 
24 communications network, broadband and internet 
25 service provider, cable and video service 
26 provider, electric or gas distribution system, 
 
 
10300HB4951sam002- 847 -LRB103 38094 HLH 74177 a


1 or water pipeline that provides service to 
2 more than one customer or person, including 
3 related support facilities. "Infrastructure" 
4 includes, but is not limited to, real and 
5 personal property such as buildings, offices, 
6 power lines, cable lines, poles, 
7 communications lines, pipes, structures, and 
8 equipment. 
9   (iv) Compensation paid to nonresident professional 
10 athletes.
11   (a) General. The Illinois source income of a 
12 nonresident individual who is a member of a 
13 professional athletic team includes the portion of the 
14 individual's total compensation for services performed 
15 as a member of a professional athletic team during the 
16 taxable year which the number of duty days spent 
17 within this State performing services for the team in 
18 any manner during the taxable year bears to the total 
19 number of duty days spent both within and without this 
20 State during the taxable year.
21   (b) Travel days. Travel days that do not involve 
22 either a game, practice, team meeting, or other 
23 similar team event are not considered duty days spent 
24 in this State. However, such travel days are 
25 considered in the total duty days spent both within 
26 and without this State.
 
 
10300HB4951sam002- 848 -LRB103 38094 HLH 74177 a


1   (c) Definitions. For purposes of this subpart 
2 (iv):
3    (1) The term "professional athletic team" 
4 includes, but is not limited to, any professional 
5 baseball, basketball, football, soccer, or hockey 
6 team.
7    (2) The term "member of a professional 
8 athletic team" includes those employees who are 
9 active players, players on the disabled list, and 
10 any other persons required to travel and who 
11 travel with and perform services on behalf of a 
12 professional athletic team on a regular basis. 
13 This includes, but is not limited to, coaches, 
14 managers, and trainers.
15    (3) Except as provided in items (C) and (D) of 
16 this subpart (3), the term "duty days" means all 
17 days during the taxable year from the beginning of 
18 the professional athletic team's official 
19 pre-season training period through the last game 
20 in which the team competes or is scheduled to 
21 compete. Duty days shall be counted for the year 
22 in which they occur, including where a team's 
23 official pre-season training period through the 
24 last game in which the team competes or is 
25 scheduled to compete, occurs during more than one 
26 tax year.
 
 
10300HB4951sam002- 849 -LRB103 38094 HLH 74177 a


1     (A) Duty days shall also include days on 
2 which a member of a professional athletic team 
3 performs service for a team on a date that 
4 does not fall within the foregoing period 
5 (e.g., participation in instructional leagues, 
6 the "All Star Game", or promotional 
7 "caravans"). Performing a service for a 
8 professional athletic team includes conducting 
9 training and rehabilitation activities, when 
10 such activities are conducted at team 
11 facilities.
12     (B) Also included in duty days are game 
13 days, practice days, days spent at team 
14 meetings, promotional caravans, preseason 
15 training camps, and days served with the team 
16 through all post-season games in which the 
17 team competes or is scheduled to compete.
18     (C) Duty days for any person who joins a 
19 team during the period from the beginning of 
20 the professional athletic team's official 
21 pre-season training period through the last 
22 game in which the team competes, or is 
23 scheduled to compete, shall begin on the day 
24 that person joins the team. Conversely, duty 
25 days for any person who leaves a team during 
26 this period shall end on the day that person 
 
 
10300HB4951sam002- 850 -LRB103 38094 HLH 74177 a


1 leaves the team. Where a person switches teams 
2 during a taxable year, a separate duty-day 
3 calculation shall be made for the period the 
4 person was with each team.
5     (D) Days for which a member of a 
6 professional athletic team is not compensated 
7 and is not performing services for the team in 
8 any manner, including days when such member of 
9 a professional athletic team has been 
10 suspended without pay and prohibited from 
11 performing any services for the team, shall 
12 not be treated as duty days.
13     (E) Days for which a member of a 
14 professional athletic team is on the disabled 
15 list and does not conduct rehabilitation 
16 activities at facilities of the team, and is 
17 not otherwise performing services for the team 
18 in Illinois, shall not be considered duty days 
19 spent in this State. All days on the disabled 
20 list, however, are considered to be included 
21 in total duty days spent both within and 
22 without this State.
23    (4) The term "total compensation for services 
24 performed as a member of a professional athletic 
25 team" means the total compensation received during 
26 the taxable year for services performed:
 
 
10300HB4951sam002- 851 -LRB103 38094 HLH 74177 a


1     (A) from the beginning of the official 
2 pre-season training period through the last 
3 game in which the team competes or is 
4 scheduled to compete during that taxable year; 
5 and
6     (B) during the taxable year on a date 
7 which does not fall within the foregoing 
8 period (e.g., participation in instructional 
9 leagues, the "All Star Game", or promotional 
10 caravans).
11    This compensation shall include, but is not 
12 limited to, salaries, wages, bonuses as described 
13 in this subpart, and any other type of 
14 compensation paid during the taxable year to a 
15 member of a professional athletic team for 
16 services performed in that year. This compensation 
17 does not include strike benefits, severance pay, 
18 termination pay, contract or option year buy-out 
19 payments, expansion or relocation payments, or any 
20 other payments not related to services performed 
21 for the team.
22    For purposes of this subparagraph, "bonuses" 
23 included in "total compensation for services 
24 performed as a member of a professional athletic 
25 team" subject to the allocation described in 
26 Section 302(c)(1) are: bonuses earned as a result 
 
 
10300HB4951sam002- 852 -LRB103 38094 HLH 74177 a


1 of play (i.e., performance bonuses) during the 
2 season, including bonuses paid for championship, 
3 playoff or "bowl" games played by a team, or for 
4 selection to all-star league or other honorary 
5 positions; and bonuses paid for signing a 
6 contract, unless the payment of the signing bonus 
7 is not conditional upon the signee playing any 
8 games for the team or performing any subsequent 
9 services for the team or even making the team, the 
10 signing bonus is payable separately from the 
11 salary and any other compensation, and the signing 
12 bonus is nonrefundable. 
13 (3) Sales factor.
14  (A) The sales factor is a fraction, the numerator of 
15 which is the total sales of the person in this State during 
16 the taxable year, and the denominator of which is the 
17 total sales of the person everywhere during the taxable 
18 year.
19  (B) Sales of tangible personal property are in this 
20 State if:
21   (i) The property is delivered or shipped to a 
22 purchaser, other than the United States government, 
23 within this State regardless of the f. o. b. point or 
24 other conditions of the sale; or
25   (ii) The property is shipped from an office, 
26 store, warehouse, factory or other place of storage in 
 
 
10300HB4951sam002- 853 -LRB103 38094 HLH 74177 a


1 this State and either the purchaser is the United 
2 States government or the person is not taxable in the 
3 state of the purchaser; provided, however, that 
4 premises owned or leased by a person who has 
5 independently contracted with the seller for the 
6 printing of newspapers, periodicals or books shall not 
7 be deemed to be an office, store, warehouse, factory 
8 or other place of storage for purposes of this 
9 Section. Sales of tangible personal property are not 
10 in this State if the seller and purchaser would be 
11 members of the same unitary business group but for the 
12 fact that either the seller or purchaser is a person 
13 with 80% or more of total business activity outside of 
14 the United States and the property is purchased for 
15 resale.
16  (B-1) Patents, copyrights, trademarks, and similar 
17 items of intangible personal property.
18   (i) Gross receipts from the licensing, sale, or 
19 other disposition of a patent, copyright, trademark, 
20 or similar item of intangible personal property, other 
21 than gross receipts governed by paragraph (B-7) of 
22 this item (3), are in this State to the extent the item 
23 is utilized in this State during the year the gross 
24 receipts are included in gross income.
25   (ii) Place of utilization.
26    (I) A patent is utilized in a state to the 
 
 
10300HB4951sam002- 854 -LRB103 38094 HLH 74177 a


1 extent that it is employed in production, 
2 fabrication, manufacturing, or other processing in 
3 the state or to the extent that a patented product 
4 is produced in the state. If a patent is utilized 
5 in more than one state, the extent to which it is 
6 utilized in any one state shall be a fraction 
7 equal to the gross receipts of the licensee or 
8 purchaser from sales or leases of items produced, 
9 fabricated, manufactured, or processed within that 
10 state using the patent and of patented items 
11 produced within that state, divided by the total 
12 of such gross receipts for all states in which the 
13 patent is utilized.
14    (II) A copyright is utilized in a state to the 
15 extent that printing or other publication 
16 originates in the state. If a copyright is 
17 utilized in more than one state, the extent to 
18 which it is utilized in any one state shall be a 
19 fraction equal to the gross receipts from sales or 
20 licenses of materials printed or published in that 
21 state divided by the total of such gross receipts 
22 for all states in which the copyright is utilized.
23    (III) Trademarks and other items of intangible 
24 personal property governed by this paragraph (B-1) 
25 are utilized in the state in which the commercial 
26 domicile of the licensee or purchaser is located.
 
 
10300HB4951sam002- 855 -LRB103 38094 HLH 74177 a


1   (iii) If the state of utilization of an item of 
2 property governed by this paragraph (B-1) cannot be 
3 determined from the taxpayer's books and records or 
4 from the books and records of any person related to the 
5 taxpayer within the meaning of Section 267(b) of the 
6 Internal Revenue Code, 26 U.S.C. 267, the gross 
7 receipts attributable to that item shall be excluded 
8 from both the numerator and the denominator of the 
9 sales factor.
10  (B-2) Gross receipts from the license, sale, or other 
11 disposition of patents, copyrights, trademarks, and 
12 similar items of intangible personal property, other than 
13 gross receipts governed by paragraph (B-7) of this item 
14 (3), may be included in the numerator or denominator of 
15 the sales factor only if gross receipts from licenses, 
16 sales, or other disposition of such items comprise more 
17 than 50% of the taxpayer's total gross receipts included 
18 in gross income during the tax year and during each of the 
19 2 immediately preceding tax years; provided that, when a 
20 taxpayer is a member of a unitary business group, such 
21 determination shall be made on the basis of the gross 
22 receipts of the entire unitary business group.
23  (B-5) For taxable years ending on or after December 
24 31, 2008, except as provided in subsections (ii) through 
25 (vii), receipts from the sale of telecommunications 
26 service or mobile telecommunications service are in this 
 
 
10300HB4951sam002- 856 -LRB103 38094 HLH 74177 a


1 State if the customer's service address is in this State.
2   (i) For purposes of this subparagraph (B-5), the 
3 following terms have the following meanings:
4   "Ancillary services" means services that are 
5 associated with or incidental to the provision of 
6 "telecommunications services", including, but not 
7 limited to, "detailed telecommunications billing", 
8 "directory assistance", "vertical service", and "voice 
9 mail services".
10   "Air-to-Ground Radiotelephone service" means a 
11 radio service, as that term is defined in 47 CFR 22.99, 
12 in which common carriers are authorized to offer and 
13 provide radio telecommunications service for hire to 
14 subscribers in aircraft.
15   "Call-by-call Basis" means any method of charging 
16 for telecommunications services where the price is 
17 measured by individual calls.
18   "Communications Channel" means a physical or 
19 virtual path of communications over which signals are 
20 transmitted between or among customer channel 
21 termination points.
22   "Conference bridging service" means an "ancillary 
23 service" that links two or more participants of an 
24 audio or video conference call and may include the 
25 provision of a telephone number. "Conference bridging 
26 service" does not include the "telecommunications 
 
 
10300HB4951sam002- 857 -LRB103 38094 HLH 74177 a


1 services" used to reach the conference bridge.
2   "Customer Channel Termination Point" means the 
3 location where the customer either inputs or receives 
4 the communications.
5   "Detailed telecommunications billing service" 
6 means an "ancillary service" of separately stating 
7 information pertaining to individual calls on a 
8 customer's billing statement.
9   "Directory assistance" means an "ancillary 
10 service" of providing telephone number information, 
11 and/or address information.
12   "Home service provider" means the facilities based 
13 carrier or reseller with which the customer contracts 
14 for the provision of mobile telecommunications 
15 services.
16   "Mobile telecommunications service" means 
17 commercial mobile radio service, as defined in Section 
18 20.3 of Title 47 of the Code of Federal Regulations as 
19 in effect on June 1, 1999.
20   "Place of primary use" means the street address 
21 representative of where the customer's use of the 
22 telecommunications service primarily occurs, which 
23 must be the residential street address or the primary 
24 business street address of the customer. In the case 
25 of mobile telecommunications services, "place of 
26 primary use" must be within the licensed service area 
 
 
10300HB4951sam002- 858 -LRB103 38094 HLH 74177 a


1 of the home service provider.
2   "Post-paid telecommunication service" means the 
3 telecommunications service obtained by making a 
4 payment on a call-by-call basis either through the use 
5 of a credit card or payment mechanism such as a bank 
6 card, travel card, credit card, or debit card, or by 
7 charge made to a telephone number which is not 
8 associated with the origination or termination of the 
9 telecommunications service. A post-paid calling 
10 service includes telecommunications service, except a 
11 prepaid wireless calling service, that would be a 
12 prepaid calling service except it is not exclusively a 
13 telecommunication service.
14   "Prepaid telecommunication service" means the 
15 right to access exclusively telecommunications 
16 services, which must be paid for in advance and which 
17 enables the origination of calls using an access 
18 number or authorization code, whether manually or 
19 electronically dialed, and that is sold in 
20 predetermined units or dollars of which the number 
21 declines with use in a known amount.
22   "Prepaid Mobile telecommunication service" means a 
23 telecommunications service that provides the right to 
24 utilize mobile wireless service as well as other 
25 non-telecommunication services, including, but not 
26 limited to, ancillary services, which must be paid for 
 
 
10300HB4951sam002- 859 -LRB103 38094 HLH 74177 a


1 in advance that is sold in predetermined units or 
2 dollars of which the number declines with use in a 
3 known amount.
4   "Private communication service" means a 
5 telecommunication service that entitles the customer 
6 to exclusive or priority use of a communications 
7 channel or group of channels between or among 
8 termination points, regardless of the manner in which 
9 such channel or channels are connected, and includes 
10 switching capacity, extension lines, stations, and any 
11 other associated services that are provided in 
12 connection with the use of such channel or channels.
13   "Service address" means:
14    (a) The location of the telecommunications 
15 equipment to which a customer's call is charged 
16 and from which the call originates or terminates, 
17 regardless of where the call is billed or paid;
18    (b) If the location in line (a) is not known, 
19 service address means the origination point of the 
20 signal of the telecommunications services first 
21 identified by either the seller's 
22 telecommunications system or in information 
23 received by the seller from its service provider 
24 where the system used to transport such signals is 
25 not that of the seller; and
26    (c) If the locations in line (a) and line (b) 
 
 
10300HB4951sam002- 860 -LRB103 38094 HLH 74177 a


1 are not known, the service address means the 
2 location of the customer's place of primary use.
3   "Telecommunications service" means the electronic 
4 transmission, conveyance, or routing of voice, data, 
5 audio, video, or any other information or signals to a 
6 point, or between or among points. The term 
7 "telecommunications service" includes such 
8 transmission, conveyance, or routing in which computer 
9 processing applications are used to act on the form, 
10 code or protocol of the content for purposes of 
11 transmission, conveyance or routing without regard to 
12 whether such service is referred to as voice over 
13 Internet protocol services or is classified by the 
14 Federal Communications Commission as enhanced or value 
15 added. "Telecommunications service" does not include:
16    (a) Data processing and information services 
17 that allow data to be generated, acquired, stored, 
18 processed, or retrieved and delivered by an 
19 electronic transmission to a purchaser when such 
20 purchaser's primary purpose for the underlying 
21 transaction is the processed data or information;
22    (b) Installation or maintenance of wiring or 
23 equipment on a customer's premises;
24    (c) Tangible personal property;
25    (d) Advertising, including, but not limited 
26 to, directory advertising;
 
 
10300HB4951sam002- 861 -LRB103 38094 HLH 74177 a


1    (e) Billing and collection services provided 
2 to third parties;
3    (f) Internet access service;
4    (g) Radio and television audio and video 
5 programming services, regardless of the medium, 
6 including the furnishing of transmission, 
7 conveyance and routing of such services by the 
8 programming service provider. Radio and television 
9 audio and video programming services shall 
10 include, but not be limited to, cable service as 
11 defined in 47 USC 522(6) and audio and video 
12 programming services delivered by commercial 
13 mobile radio service providers, as defined in 47 
14 CFR 20.3;
15    (h) "Ancillary services"; or
16    (i) Digital products "delivered 
17 electronically", including, but not limited to, 
18 software, music, video, reading materials or ring 
19 tones.
20   "Vertical service" means an "ancillary service" 
21 that is offered in connection with one or more 
22 "telecommunications services", which offers advanced 
23 calling features that allow customers to identify 
24 callers and to manage multiple calls and call 
25 connections, including "conference bridging services".
26   "Voice mail service" means an "ancillary service" 
 
 
10300HB4951sam002- 862 -LRB103 38094 HLH 74177 a


1 that enables the customer to store, send or receive 
2 recorded messages. "Voice mail service" does not 
3 include any "vertical services" that the customer may 
4 be required to have in order to utilize the "voice mail 
5 service".
6   (ii) Receipts from the sale of telecommunications 
7 service sold on an individual call-by-call basis are 
8 in this State if either of the following applies:
9    (a) The call both originates and terminates in 
10 this State.
11    (b) The call either originates or terminates 
12 in this State and the service address is located 
13 in this State.
14   (iii) Receipts from the sale of postpaid 
15 telecommunications service at retail are in this State 
16 if the origination point of the telecommunication 
17 signal, as first identified by the service provider's 
18 telecommunication system or as identified by 
19 information received by the seller from its service 
20 provider if the system used to transport 
21 telecommunication signals is not the seller's, is 
22 located in this State.
23   (iv) Receipts from the sale of prepaid 
24 telecommunications service or prepaid mobile 
25 telecommunications service at retail are in this State 
26 if the purchaser obtains the prepaid card or similar 
 
 
10300HB4951sam002- 863 -LRB103 38094 HLH 74177 a


1 means of conveyance at a location in this State. 
2 Receipts from recharging a prepaid telecommunications 
3 service or mobile telecommunications service is in 
4 this State if the purchaser's billing information 
5 indicates a location in this State.
6   (v) Receipts from the sale of private 
7 communication services are in this State as follows:
8    (a) 100% of receipts from charges imposed at 
9 each channel termination point in this State.
10    (b) 100% of receipts from charges for the 
11 total channel mileage between each channel 
12 termination point in this State.
13    (c) 50% of the total receipts from charges for 
14 service segments when those segments are between 2 
15 customer channel termination points, 1 of which is 
16 located in this State and the other is located 
17 outside of this State, which segments are 
18 separately charged.
19    (d) The receipts from charges for service 
20 segments with a channel termination point located 
21 in this State and in two or more other states, and 
22 which segments are not separately billed, are in 
23 this State based on a percentage determined by 
24 dividing the number of customer channel 
25 termination points in this State by the total 
26 number of customer channel termination points.
 
 
10300HB4951sam002- 864 -LRB103 38094 HLH 74177 a


1   (vi) Receipts from charges for ancillary services 
2 for telecommunications service sold to customers at 
3 retail are in this State if the customer's primary 
4 place of use of telecommunications services associated 
5 with those ancillary services is in this State. If the 
6 seller of those ancillary services cannot determine 
7 where the associated telecommunications are located, 
8 then the ancillary services shall be based on the 
9 location of the purchaser. 
10   (vii) Receipts to access a carrier's network or 
11 from the sale of telecommunication services or 
12 ancillary services for resale are in this State as 
13 follows:
14    (a) 100% of the receipts from access fees 
15 attributable to intrastate telecommunications 
16 service that both originates and terminates in 
17 this State.
18    (b) 50% of the receipts from access fees 
19 attributable to interstate telecommunications 
20 service if the interstate call either originates 
21 or terminates in this State.
22    (c) 100% of the receipts from interstate end 
23 user access line charges, if the customer's 
24 service address is in this State. As used in this 
25 subdivision, "interstate end user access line 
26 charges" includes, but is not limited to, the 
 
 
10300HB4951sam002- 865 -LRB103 38094 HLH 74177 a


1 surcharge approved by the federal communications 
2 commission and levied pursuant to 47 CFR 69.
3    (d) Gross receipts from sales of 
4 telecommunication services or from ancillary 
5 services for telecommunications services sold to 
6 other telecommunication service providers for 
7 resale shall be sourced to this State using the 
8 apportionment concepts used for non-resale 
9 receipts of telecommunications services if the 
10 information is readily available to make that 
11 determination. If the information is not readily 
12 available, then the taxpayer may use any other 
13 reasonable and consistent method. 
14  (B-7) For taxable years ending on or after December 
15 31, 2008, receipts from the sale of broadcasting services 
16 are in this State if the broadcasting services are 
17 received in this State. For purposes of this paragraph 
18 (B-7), the following terms have the following meanings:
19   "Advertising revenue" means consideration received 
20 by the taxpayer in exchange for broadcasting services 
21 or allowing the broadcasting of commercials or 
22 announcements in connection with the broadcasting of 
23 film or radio programming, from sponsorships of the 
24 programming, or from product placements in the 
25 programming.
26   "Audience factor" means the ratio that the 
 
 
10300HB4951sam002- 866 -LRB103 38094 HLH 74177 a


1 audience or subscribers located in this State of a 
2 station, a network, or a cable system bears to the 
3 total audience or total subscribers for that station, 
4 network, or cable system. The audience factor for film 
5 or radio programming shall be determined by reference 
6 to the books and records of the taxpayer or by 
7 reference to published rating statistics provided the 
8 method used by the taxpayer is consistently used from 
9 year to year for this purpose and fairly represents 
10 the taxpayer's activity in this State.
11   "Broadcast" or "broadcasting" or "broadcasting 
12 services" means the transmission or provision of film 
13 or radio programming, whether through the public 
14 airwaves, by cable, by direct or indirect satellite 
15 transmission, or by any other means of communication, 
16 either through a station, a network, or a cable 
17 system.
18   "Film" or "film programming" means the broadcast 
19 on television of any and all performances, events, or 
20 productions, including, but not limited to, news, 
21 sporting events, plays, stories, or other literary, 
22 commercial, educational, or artistic works, either 
23 live or through the use of video tape, disc, or any 
24 other type of format or medium. Each episode of a 
25 series of films produced for television shall 
26 constitute separate "film" notwithstanding that the 
 
 
10300HB4951sam002- 867 -LRB103 38094 HLH 74177 a


1 series relates to the same principal subject and is 
2 produced during one or more tax periods.
3   "Radio" or "radio programming" means the broadcast 
4 on radio of any and all performances, events, or 
5 productions, including, but not limited to, news, 
6 sporting events, plays, stories, or other literary, 
7 commercial, educational, or artistic works, either 
8 live or through the use of an audio tape, disc, or any 
9 other format or medium. Each episode in a series of 
10 radio programming produced for radio broadcast shall 
11 constitute a separate "radio programming" 
12 notwithstanding that the series relates to the same 
13 principal subject and is produced during one or more 
14 tax periods.
15    (i) In the case of advertising revenue from 
16 broadcasting, the customer is the advertiser and 
17 the service is received in this State if the 
18 commercial domicile of the advertiser is in this 
19 State.
20    (ii) In the case where film or radio 
21 programming is broadcast by a station, a network, 
22 or a cable system for a fee or other remuneration 
23 received from the recipient of the broadcast, the 
24 portion of the service that is received in this 
25 State is measured by the portion of the recipients 
26 of the broadcast located in this State. 
 
 
10300HB4951sam002- 868 -LRB103 38094 HLH 74177 a


1 Accordingly, the fee or other remuneration for 
2 such service that is included in the Illinois 
3 numerator of the sales factor is the total of 
4 those fees or other remuneration received from 
5 recipients in Illinois. For purposes of this 
6 paragraph, a taxpayer may determine the location 
7 of the recipients of its broadcast using the 
8 address of the recipient shown in its contracts 
9 with the recipient or using the billing address of 
10 the recipient in the taxpayer's records.
11    (iii) In the case where film or radio 
12 programming is broadcast by a station, a network, 
13 or a cable system for a fee or other remuneration 
14 from the person providing the programming, the 
15 portion of the broadcast service that is received 
16 by such station, network, or cable system in this 
17 State is measured by the portion of recipients of 
18 the broadcast located in this State. Accordingly, 
19 the amount of revenue related to such an 
20 arrangement that is included in the Illinois 
21 numerator of the sales factor is the total fee or 
22 other total remuneration from the person providing 
23 the programming related to that broadcast 
24 multiplied by the Illinois audience factor for 
25 that broadcast.
26    (iv) In the case where film or radio 
 
 
10300HB4951sam002- 869 -LRB103 38094 HLH 74177 a


1 programming is provided by a taxpayer that is a 
2 network or station to a customer for broadcast in 
3 exchange for a fee or other remuneration from that 
4 customer the broadcasting service is received at 
5 the location of the office of the customer from 
6 which the services were ordered in the regular 
7 course of the customer's trade or business. 
8 Accordingly, in such a case the revenue derived by 
9 the taxpayer that is included in the taxpayer's 
10 Illinois numerator of the sales factor is the 
11 revenue from such customers who receive the 
12 broadcasting service in Illinois.
13    (v) In the case where film or radio 
14 programming is provided by a taxpayer that is not 
15 a network or station to another person for 
16 broadcasting in exchange for a fee or other 
17 remuneration from that person, the broadcasting 
18 service is received at the location of the office 
19 of the customer from which the services were 
20 ordered in the regular course of the customer's 
21 trade or business. Accordingly, in such a case the 
22 revenue derived by the taxpayer that is included 
23 in the taxpayer's Illinois numerator of the sales 
24 factor is the revenue from such customers who 
25 receive the broadcasting service in Illinois.
26  (B-8) Gross receipts from winnings under the Illinois 
 
 
10300HB4951sam002- 870 -LRB103 38094 HLH 74177 a


1 Lottery Law from the assignment of a prize under Section 
2 13.1 of the Illinois Lottery Law are received in this 
3 State. This paragraph (B-8) applies only to taxable years 
4 ending on or after December 31, 2013. 
5  (B-9) For taxable years ending on or after December 
6 31, 2019, gross receipts from winnings from pari-mutuel 
7 wagering conducted at a wagering facility licensed under 
8 the Illinois Horse Racing Act of 1975 or from winnings 
9 from gambling games conducted on a riverboat or in a 
10 casino or organization gaming facility licensed under the 
11 Illinois Gambling Act are in this State.
12  (B-10) For taxable years ending on or after December 
13 31, 2021, gross receipts from winnings from sports 
14 wagering conducted in accordance with the Sports Wagering 
15 Act are in this State. 
16  (C) For taxable years ending before December 31, 2008, 
17 sales, other than sales governed by paragraphs (B), (B-1), 
18 (B-2), and (B-8) are in this State if:
19   (i) The income-producing activity is performed in 
20 this State; or
21   (ii) The income-producing activity is performed 
22 both within and without this State and a greater 
23 proportion of the income-producing activity is 
24 performed within this State than without this State, 
25 based on performance costs.
26  (C-5) For taxable years ending on or after December 
 
 
10300HB4951sam002- 871 -LRB103 38094 HLH 74177 a


1 31, 2008, sales, other than sales governed by paragraphs 
2 (B), (B-1), (B-2), (B-5), and (B-7), are in this State if 
3 any of the following criteria are met:
4   (i) Sales from the sale or lease of real property 
5 are in this State if the property is located in this 
6 State.
7   (ii) Sales from the lease or rental of tangible 
8 personal property are in this State if the property is 
9 located in this State during the rental period. Sales 
10 from the lease or rental of tangible personal property 
11 that is characteristically moving property, including, 
12 but not limited to, motor vehicles, rolling stock, 
13 aircraft, vessels, or mobile equipment are in this 
14 State to the extent that the property is used in this 
15 State.
16   (iii) In the case of interest, net gains (but not 
17 less than zero) and other items of income from 
18 intangible personal property, the sale is in this 
19 State if:
20    (a) in the case of a taxpayer who is a dealer 
21 in the item of intangible personal property within 
22 the meaning of Section 475 of the Internal Revenue 
23 Code, the income or gain is received from a 
24 customer in this State. For purposes of this 
25 subparagraph, a customer is in this State if the 
26 customer is an individual, trust or estate who is 
 
 
10300HB4951sam002- 872 -LRB103 38094 HLH 74177 a


1 a resident of this State and, for all other 
2 customers, if the customer's commercial domicile 
3 is in this State. Unless the dealer has actual 
4 knowledge of the residence or commercial domicile 
5 of a customer during a taxable year, the customer 
6 shall be deemed to be a customer in this State if 
7 the billing address of the customer, as shown in 
8 the records of the dealer, is in this State; or
9    (b) in all other cases, if the 
10 income-producing activity of the taxpayer is 
11 performed in this State or, if the 
12 income-producing activity of the taxpayer is 
13 performed both within and without this State, if a 
14 greater proportion of the income-producing 
15 activity of the taxpayer is performed within this 
16 State than in any other state, based on 
17 performance costs.
18   (iv) Sales of services are in this State if the 
19 services are received in this State. For the purposes 
20 of this section, gross receipts from the performance 
21 of services provided to a corporation, partnership, or 
22 trust may only be attributed to a state where that 
23 corporation, partnership, or trust has a fixed place 
24 of business. If the state where the services are 
25 received is not readily determinable or is a state 
26 where the corporation, partnership, or trust receiving 
 
 
10300HB4951sam002- 873 -LRB103 38094 HLH 74177 a


1 the service does not have a fixed place of business, 
2 the services shall be deemed to be received at the 
3 location of the office of the customer from which the 
4 services were ordered in the regular course of the 
5 customer's trade or business. If the ordering office 
6 cannot be determined, the services shall be deemed to 
7 be received at the office of the customer to which the 
8 services are billed. If the taxpayer is not taxable in 
9 the state in which the services are received, the sale 
10 must be excluded from both the numerator and the 
11 denominator of the sales factor. The Department shall 
12 adopt rules prescribing where specific types of 
13 service are received, including, but not limited to, 
14 publishing, and utility service. 
15  (D) For taxable years ending on or after December 31, 
16 1995, the following items of income shall not be included 
17 in the numerator or denominator of the sales factor: 
18 dividends; amounts included under Section 78 of the 
19 Internal Revenue Code; and Subpart F income as defined in 
20 Section 952 of the Internal Revenue Code. No inference 
21 shall be drawn from the enactment of this paragraph (D) in 
22 construing this Section for taxable years ending before 
23 December 31, 1995.
24  (E) Paragraphs (B-1) and (B-2) shall apply to tax 
25 years ending on or after December 31, 1999, provided that 
26 a taxpayer may elect to apply the provisions of these 
 
 
10300HB4951sam002- 874 -LRB103 38094 HLH 74177 a


1 paragraphs to prior tax years. Such election shall be made 
2 in the form and manner prescribed by the Department, shall 
3 be irrevocable, and shall apply to all tax years; provided 
4 that, if a taxpayer's Illinois income tax liability for 
5 any tax year, as assessed under Section 903 prior to 
6 January 1, 1999, was computed in a manner contrary to the 
7 provisions of paragraphs (B-1) or (B-2), no refund shall 
8 be payable to the taxpayer for that tax year to the extent 
9 such refund is the result of applying the provisions of 
10 paragraph (B-1) or (B-2) retroactively. In the case of a 
11 unitary business group, such election shall apply to all 
12 members of such group for every tax year such group is in 
13 existence, but shall not apply to any taxpayer for any 
14 period during which that taxpayer is not a member of such 
15 group.
16 (b) Insurance companies.
17  (1) In general. Except as otherwise provided by 
18 paragraph (2), business income of an insurance company for 
19 a taxable year shall be apportioned to this State by 
20 multiplying such income by a fraction, the numerator of 
21 which is the direct premiums written for insurance upon 
22 property or risk in this State, and the denominator of 
23 which is the direct premiums written for insurance upon 
24 property or risk everywhere. For purposes of this 
25 subsection, the term "direct premiums written" means the 
26 total amount of direct premiums written, assessments and 
 
 
10300HB4951sam002- 875 -LRB103 38094 HLH 74177 a


1 annuity considerations as reported for the taxable year on 
2 the annual statement filed by the company with the 
3 Illinois Director of Insurance in the form approved by the 
4 National Convention of Insurance Commissioners or such 
5 other form as may be prescribed in lieu thereof.
6  (2) Reinsurance. If the principal source of premiums 
7 written by an insurance company consists of premiums for 
8 reinsurance accepted by it, the business income of such 
9 company shall be apportioned to this State by multiplying 
10 such income by a fraction, the numerator of which is the 
11 sum of (i) direct premiums written for insurance upon 
12 property or risk in this State, plus (ii) premiums written 
13 for reinsurance accepted in respect of property or risk in 
14 this State, and the denominator of which is the sum of 
15 (iii) direct premiums written for insurance upon property 
16 or risk everywhere, plus (iv) premiums written for 
17 reinsurance accepted in respect of property or risk 
18 everywhere. For purposes of this paragraph, premiums 
19 written for reinsurance accepted in respect of property or 
20 risk in this State, whether or not otherwise determinable, 
21 may, at the election of the company, be determined on the 
22 basis of the proportion which premiums written for 
23 reinsurance accepted from companies commercially domiciled 
24 in Illinois bears to premiums written for reinsurance 
25 accepted from all sources, or, alternatively, in the 
26 proportion which the sum of the direct premiums written 
 
 
10300HB4951sam002- 876 -LRB103 38094 HLH 74177 a


1 for insurance upon property or risk in this State by each 
2 ceding company from which reinsurance is accepted bears to 
3 the sum of the total direct premiums written by each such 
4 ceding company for the taxable year. The election made by 
5 a company under this paragraph for its first taxable year 
6 ending on or after December 31, 2011, shall be binding for 
7 that company for that taxable year and for all subsequent 
8 taxable years, and may be altered only with the written 
9 permission of the Department, which shall not be 
10 unreasonably withheld.
11 (c) Financial organizations.
12  (1) In general. For taxable years ending before 
13 December 31, 2008, business income of a financial 
14 organization shall be apportioned to this State by 
15 multiplying such income by a fraction, the numerator of 
16 which is its business income from sources within this 
17 State, and the denominator of which is its business income 
18 from all sources. For the purposes of this subsection, the 
19 business income of a financial organization from sources 
20 within this State is the sum of the amounts referred to in 
21 subparagraphs (A) through (E) following, but excluding the 
22 adjusted income of an international banking facility as 
23 determined in paragraph (2):
24   (A) Fees, commissions or other compensation for 
25 financial services rendered within this State;
26   (B) Gross profits from trading in stocks, bonds or 
 
 
10300HB4951sam002- 877 -LRB103 38094 HLH 74177 a


1 other securities managed within this State;
2   (C) Dividends, and interest from Illinois 
3 customers, which are received within this State;
4   (D) Interest charged to customers at places of 
5 business maintained within this State for carrying 
6 debit balances of margin accounts, without deduction 
7 of any costs incurred in carrying such accounts; and
8   (E) Any other gross income resulting from the 
9 operation as a financial organization within this 
10 State. 
11  In computing the amounts referred to in paragraphs (A) 
12 through (E) of this subsection, any amount received by a 
13 member of an affiliated group (determined under Section 
14 1504(a) of the Internal Revenue Code but without reference 
15 to whether any such corporation is an "includible 
16 corporation" under Section 1504(b) of the Internal Revenue 
17 Code) from another member of such group shall be included 
18 only to the extent such amount exceeds expenses of the 
19 recipient directly related thereto.
20  (2) International Banking Facility. For taxable years 
21 ending before December 31, 2008:
22   (A) Adjusted Income. The adjusted income of an 
23 international banking facility is its income reduced 
24 by the amount of the floor amount.
25   (B) Floor Amount. The floor amount shall be the 
26 amount, if any, determined by multiplying the income 
 
 
10300HB4951sam002- 878 -LRB103 38094 HLH 74177 a


1 of the international banking facility by a fraction, 
2 not greater than one, which is determined as follows:
3    (i) The numerator shall be:
4    The average aggregate, determined on a 
5 quarterly basis, of the financial organization's 
6 loans to banks in foreign countries, to foreign 
7 domiciled borrowers (except where secured 
8 primarily by real estate) and to foreign 
9 governments and other foreign official 
10 institutions, as reported for its branches, 
11 agencies and offices within the state on its 
12 "Consolidated Report of Condition", Schedule A, 
13 Lines 2.c., 5.b., and 7.a., which was filed with 
14 the Federal Deposit Insurance Corporation and 
15 other regulatory authorities, for the year 1980, 
16 minus
17    The average aggregate, determined on a 
18 quarterly basis, of such loans (other than loans 
19 of an international banking facility), as reported 
20 by the financial institution for its branches, 
21 agencies and offices within the state, on the 
22 corresponding Schedule and lines of the 
23 Consolidated Report of Condition for the current 
24 taxable year, provided, however, that in no case 
25 shall the amount determined in this clause (the 
26 subtrahend) exceed the amount determined in the 
 
 
10300HB4951sam002- 879 -LRB103 38094 HLH 74177 a


1 preceding clause (the minuend); and
2    (ii) the denominator shall be the average 
3 aggregate, determined on a quarterly basis, of the 
4 international banking facility's loans to banks in 
5 foreign countries, to foreign domiciled borrowers 
6 (except where secured primarily by real estate) 
7 and to foreign governments and other foreign 
8 official institutions, which were recorded in its 
9 financial accounts for the current taxable year.
10   (C) Change to Consolidated Report of Condition and 
11 in Qualification. In the event the Consolidated Report 
12 of Condition which is filed with the Federal Deposit 
13 Insurance Corporation and other regulatory authorities 
14 is altered so that the information required for 
15 determining the floor amount is not found on Schedule 
16 A, lines 2.c., 5.b. and 7.a., the financial 
17 institution shall notify the Department and the 
18 Department may, by regulations or otherwise, prescribe 
19 or authorize the use of an alternative source for such 
20 information. The financial institution shall also 
21 notify the Department should its international banking 
22 facility fail to qualify as such, in whole or in part, 
23 or should there be any amendment or change to the 
24 Consolidated Report of Condition, as originally filed, 
25 to the extent such amendment or change alters the 
26 information used in determining the floor amount.
 
 
10300HB4951sam002- 880 -LRB103 38094 HLH 74177 a


1  (3) For taxable years ending on or after December 31, 
2 2008, the business income of a financial organization 
3 shall be apportioned to this State by multiplying such 
4 income by a fraction, the numerator of which is its gross 
5 receipts from sources in this State or otherwise 
6 attributable to this State's marketplace and the 
7 denominator of which is its gross receipts everywhere 
8 during the taxable year. "Gross receipts" for purposes of 
9 this subparagraph (3) means gross income, including net 
10 taxable gain on disposition of assets, including 
11 securities and money market instruments, when derived from 
12 transactions and activities in the regular course of the 
13 financial organization's trade or business. The following 
14 examples are illustrative: 
15   (i) Receipts from the lease or rental of real or 
16 tangible personal property are in this State if the 
17 property is located in this State during the rental 
18 period. Receipts from the lease or rental of tangible 
19 personal property that is characteristically moving 
20 property, including, but not limited to, motor 
21 vehicles, rolling stock, aircraft, vessels, or mobile 
22 equipment are from sources in this State to the extent 
23 that the property is used in this State.
24   (ii) Interest income, commissions, fees, gains on 
25 disposition, and other receipts from assets in the 
26 nature of loans that are secured primarily by real 
 
 
10300HB4951sam002- 881 -LRB103 38094 HLH 74177 a


1 estate or tangible personal property are from sources 
2 in this State if the security is located in this State.
3   (iii) Interest income, commissions, fees, gains on 
4 disposition, and other receipts from consumer loans 
5 that are not secured by real or tangible personal 
6 property are from sources in this State if the debtor 
7 is a resident of this State.
8   (iv) Interest income, commissions, fees, gains on 
9 disposition, and other receipts from commercial loans 
10 and installment obligations that are not secured by 
11 real or tangible personal property are from sources in 
12 this State if the proceeds of the loan are to be 
13 applied in this State. If it cannot be determined 
14 where the funds are to be applied, the income and 
15 receipts are from sources in this State if the office 
16 of the borrower from which the loan was negotiated in 
17 the regular course of business is located in this 
18 State. If the location of this office cannot be 
19 determined, the income and receipts shall be excluded 
20 from the numerator and denominator of the sales 
21 factor. 
22   (v) Interest income, fees, gains on disposition, 
23 service charges, merchant discount income, and other 
24 receipts from credit card receivables are from sources 
25 in this State if the card charges are regularly billed 
26 to a customer in this State.
 
 
10300HB4951sam002- 882 -LRB103 38094 HLH 74177 a


1   (vi) Receipts from the performance of services, 
2 including, but not limited to, fiduciary, advisory, 
3 and brokerage services, are in this State if the 
4 services are received in this State within the meaning 
5 of subparagraph (a)(3)(C-5)(iv) of this Section.
6   (vii) Receipts from the issuance of travelers 
7 checks and money orders are from sources in this State 
8 if the checks and money orders are issued from a 
9 location within this State.
10   (viii) For tax years ending before December 31, 
11 2024, receipts Receipts from investment assets and 
12 activities and trading assets and activities are 
13 included in the receipts factor as follows:
14    (1) Interest, dividends, net gains (but not 
15 less than zero) and other income from investment 
16 assets and activities from trading assets and 
17 activities shall be included in the receipts 
18 factor. Investment assets and activities and 
19 trading assets and activities include, but are not 
20 limited to: investment securities; trading account 
21 assets; federal funds; securities purchased and 
22 sold under agreements to resell or repurchase; 
23 options; futures contracts; forward contracts; 
24 notional principal contracts such as swaps; 
25 equities; and foreign currency transactions. With 
26 respect to the investment and trading assets and 
 
 
10300HB4951sam002- 883 -LRB103 38094 HLH 74177 a


1 activities described in subparagraphs (A) and (B) 
2 of this paragraph, the receipts factor shall 
3 include the amounts described in such 
4 subparagraphs.
5     (A) The receipts factor shall include the 
6 amount by which interest from federal funds 
7 sold and securities purchased under resale 
8 agreements exceeds interest expense on federal 
9 funds purchased and securities sold under 
10 repurchase agreements.
11     (B) The receipts factor shall include the 
12 amount by which interest, dividends, gains and 
13 other income from trading assets and 
14 activities, including, but not limited to, 
15 assets and activities in the matched book, in 
16 the arbitrage book, and foreign currency 
17 transactions, exceed amounts paid in lieu of 
18 interest, amounts paid in lieu of dividends, 
19 and losses from such assets and activities.
20    (2) The numerator of the receipts factor 
21 includes interest, dividends, net gains (but not 
22 less than zero), and other income from investment 
23 assets and activities and from trading assets and 
24 activities described in paragraph (1) of this 
25 subsection that are attributable to this State.
26     (A) The amount of interest, dividends, net 
 
 
10300HB4951sam002- 884 -LRB103 38094 HLH 74177 a


1 gains (but not less than zero), and other 
2 income from investment assets and activities 
3 in the investment account to be attributed to 
4 this State and included in the numerator is 
5 determined by multiplying all such income from 
6 such assets and activities by a fraction, the 
7 numerator of which is the gross income from 
8 such assets and activities which are properly 
9 assigned to a fixed place of business of the 
10 taxpayer within this State and the denominator 
11 of which is the gross income from all such 
12 assets and activities.
13     (B) The amount of interest from federal 
14 funds sold and purchased and from securities 
15 purchased under resale agreements and 
16 securities sold under repurchase agreements 
17 attributable to this State and included in the 
18 numerator is determined by multiplying the 
19 amount described in subparagraph (A) of 
20 paragraph (1) of this subsection from such 
21 funds and such securities by a fraction, the 
22 numerator of which is the gross income from 
23 such funds and such securities which are 
24 properly assigned to a fixed place of business 
25 of the taxpayer within this State and the 
26 denominator of which is the gross income from 
 
 
10300HB4951sam002- 885 -LRB103 38094 HLH 74177 a


1 all such funds and such securities.
2     (C) The amount of interest, dividends, 
3 gains, and other income from trading assets 
4 and activities, including, but not limited to, 
5 assets and activities in the matched book, in 
6 the arbitrage book and foreign currency 
7 transactions (but excluding amounts described 
8 in subparagraphs (A) or (B) of this 
9 paragraph), attributable to this State and 
10 included in the numerator is determined by 
11 multiplying the amount described in 
12 subparagraph (B) of paragraph (1) of this 
13 subsection by a fraction, the numerator of 
14 which is the gross income from such trading 
15 assets and activities which are properly 
16 assigned to a fixed place of business of the 
17 taxpayer within this State and the denominator 
18 of which is the gross income from all such 
19 assets and activities.
20     (D) Properly assigned, for purposes of 
21 this paragraph (2) of this subsection, means 
22 the investment or trading asset or activity is 
23 assigned to the fixed place of business with 
24 which it has a preponderance of substantive 
25 contacts. An investment or trading asset or 
26 activity assigned by the taxpayer to a fixed 
 
 
10300HB4951sam002- 886 -LRB103 38094 HLH 74177 a


1 place of business without the State shall be 
2 presumed to have been properly assigned if:
3      (i) the taxpayer has assigned, in the 
4 regular course of its business, such asset 
5 or activity on its records to a fixed 
6 place of business consistent with federal 
7 or state regulatory requirements;
8      (ii) such assignment on its records is 
9 based upon substantive contacts of the 
10 asset or activity to such fixed place of 
11 business; and
12      (iii) the taxpayer uses such records 
13 reflecting assignment of such assets or 
14 activities for the filing of all state and 
15 local tax returns for which an assignment 
16 of such assets or activities to a fixed 
17 place of business is required.
18     (E) The presumption of proper assignment 
19 of an investment or trading asset or activity 
20 provided in subparagraph (D) of paragraph (2) 
21 of this subsection may be rebutted upon a 
22 showing by the Department, supported by a 
23 preponderance of the evidence, that the 
24 preponderance of substantive contacts 
25 regarding such asset or activity did not occur 
26 at the fixed place of business to which it was 
 
 
10300HB4951sam002- 887 -LRB103 38094 HLH 74177 a


1 assigned on the taxpayer's records. If the 
2 fixed place of business that has a 
3 preponderance of substantive contacts cannot 
4 be determined for an investment or trading 
5 asset or activity to which the presumption in 
6 subparagraph (D) of paragraph (2) of this 
7 subsection does not apply or with respect to 
8 which that presumption has been rebutted, that 
9 asset or activity is properly assigned to the 
10 state in which the taxpayer's commercial 
11 domicile is located. For purposes of this 
12 subparagraph (E), it shall be presumed, 
13 subject to rebuttal, that taxpayer's 
14 commercial domicile is in the state of the 
15 United States or the District of Columbia to 
16 which the greatest number of employees are 
17 regularly connected with the management of the 
18 investment or trading income or out of which 
19 they are working, irrespective of where the 
20 services of such employees are performed, as 
21 of the last day of the taxable year. 
22   (ix) For tax years ending on or after December 31, 
23 2024, receipts from investment assets and activities 
24 and trading assets and activities are included in the 
25 receipts factor as follows: 
26    (1) Interest, dividends, net gains (but not 
 
 
10300HB4951sam002- 888 -LRB103 38094 HLH 74177 a


1 less than zero), and other income from investment 
2 assets and activities from trading assets and 
3 activities shall be included in the receipts 
4 factor. Investment assets and activities and 
5 trading assets and activities include, but are not 
6 limited to the following: investment securities; 
7 trading account assets; federal funds; securities 
8 purchased and sold under agreements to resell or 
9 repurchase; options; futures contracts; forward 
10 contracts; notional principal contracts, such as 
11 swaps; equities; and foreign currency 
12 transactions. With respect to the investment and 
13 trading assets and activities described in 
14 subparagraphs (A) and (B) of this paragraph, the 
15 receipts factor shall include the amounts 
16 described in those subparagraphs. 
17     (A) The receipts factor shall include the 
18 amount by which interest from federal funds 
19 sold and securities purchased under resale 
20 agreements exceeds interest expense on federal 
21 funds purchased and securities sold under 
22 repurchase agreements. 
23     (B) The receipts factor shall include the 
24 amount by which interest, dividends, gains and 
25 other income from trading assets and 
26 activities, including, but not limited to, 
 
 
10300HB4951sam002- 889 -LRB103 38094 HLH 74177 a


1 assets and activities in the matched book, in 
2 the arbitrage book, and foreign currency 
3 transactions, exceed amounts paid in lieu of 
4 interest, amounts paid in lieu of dividends, 
5 and losses from such assets and activities. 
6    (2) The numerator of the receipts factor 
7 includes interest, dividends, net gains (but not 
8 less than zero), and other income from investment 
9 assets and activities and from trading assets and 
10 activities described in paragraph (1) of this 
11 subsection that are attributable to this State. 
12     (A) The amount of interest, dividends, net 
13 gains (but not less than zero), and other 
14 income from investment assets and activities 
15 in the investment account to be attributed to 
16 this State and included in the numerator is 
17 determined by multiplying all of the income 
18 from those assets and activities by a 
19 fraction, the numerator of which is the total 
20 receipts included in the numerator pursuant to 
21 items (i) through (vii) of this subparagraph 
22 (3) and the denominator of which is all total 
23 receipts included in the denominator, other 
24 than interest, dividends, net gains (but not 
25 less than zero), and other income from 
26 investment assets and activities and trading 
 
 
10300HB4951sam002- 890 -LRB103 38094 HLH 74177 a


1 assets and activities. 
2     (B) The amount of interest from federal 
3 funds sold and purchased and from securities 
4 purchased under resale agreements and 
5 securities sold under repurchase agreements 
6 attributable to this State and included in the 
7 numerator is determined by multiplying the 
8 amount described in subparagraph (A) of 
9 paragraph (1) of this subsection from such 
10 funds and such securities by a fraction, the 
11 numerator of which is the total receipts 
12 included in the numerator pursuant to items 
13 (i) through (vii) of this subparagraph (3) and 
14 the denominator of which is all total receipts 
15 included in the denominator, other than 
16 interest, dividends, net gains (but not less 
17 than zero), and other income from investment 
18 assets and activities and trading assets and 
19 activities. 
20     (C) The amount of interest, dividends, 
21 gains, and other income from trading assets 
22 and activities, including, but not limited to, 
23 assets and activities in the matched book, in 
24 the arbitrage book and foreign currency 
25 transactions (but excluding amounts described 
26 in subparagraphs (A) or (B) of this 
 
 
10300HB4951sam002- 891 -LRB103 38094 HLH 74177 a


1 paragraph), attributable to this State and 
2 included in the numerator is determined by 
3 multiplying the amount described in 
4 subparagraph (B) of paragraph (1) of this 
5 subsection by a fraction, the numerator of 
6 which is the total receipts included in the 
7 numerator pursuant to items (i) through (vii) 
8 of this subparagraph (3) and the denominator 
9 of which is all total receipts included in the 
10 denominator, other than interest, dividends, 
11 net gains (but not less than zero), and other 
12 income from investment assets and activities 
13 and trading assets and activities. 
14  (4) (Blank).
15  (5) (Blank).
16 (c-1) Federally regulated exchanges. For taxable years 
17ending on or after December 31, 2012, business income of a 
18federally regulated exchange shall, at the option of the 
19federally regulated exchange, be apportioned to this State by 
20multiplying such income by a fraction, the numerator of which 
21is its business income from sources within this State, and the 
22denominator of which is its business income from all sources. 
23For purposes of this subsection, the business income within 
24this State of a federally regulated exchange is the sum of the 
25following: 
26  (1) Receipts attributable to transactions executed on 
 
 
10300HB4951sam002- 892 -LRB103 38094 HLH 74177 a


1 a physical trading floor if that physical trading floor is 
2 located in this State. 
3  (2) Receipts attributable to all other matching, 
4 execution, or clearing transactions, including without 
5 limitation receipts from the provision of matching, 
6 execution, or clearing services to another entity, 
7 multiplied by (i) for taxable years ending on or after 
8 December 31, 2012 but before December 31, 2013, 63.77%; 
9 and (ii) for taxable years ending on or after December 31, 
10 2013, 27.54%. 
11  (3) All other receipts not governed by subparagraphs 
12 (1) or (2) of this subsection (c-1), to the extent the 
13 receipts would be characterized as "sales in this State" 
14 under item (3) of subsection (a) of this Section. 
15 "Federally regulated exchange" means (i) a "registered 
16entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), 
17or (C), (ii) an "exchange" or "clearing agency" within the 
18meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such 
19entities regulated under any successor regulatory structure to 
20the foregoing, and (iv) all taxpayers who are members of the 
21same unitary business group as a federally regulated exchange, 
22determined without regard to the prohibition in Section 
231501(a)(27) of this Act against including in a unitary 
24business group taxpayers who are ordinarily required to 
25apportion business income under different subsections of this 
26Section; provided that this subparagraph (iv) shall apply only 
 
 
10300HB4951sam002- 893 -LRB103 38094 HLH 74177 a


1if 50% or more of the business receipts of the unitary business 
2group determined by application of this subparagraph (iv) for 
3the taxable year are attributable to the matching, execution, 
4or clearing of transactions conducted by an entity described 
5in subparagraph (i), (ii), or (iii) of this paragraph. 
6 In no event shall the Illinois apportionment percentage 
7computed in accordance with this subsection (c-1) for any 
8taxpayer for any tax year be less than the Illinois 
9apportionment percentage computed under this subsection (c-1) 
10for that taxpayer for the first full tax year ending on or 
11after December 31, 2013 for which this subsection (c-1) 
12applied to the taxpayer. 
13 (d) Transportation services. For taxable years ending 
14before December 31, 2008, business income derived from 
15furnishing transportation services shall be apportioned to 
16this State in accordance with paragraphs (1) and (2):
17  (1) Such business income (other than that derived from 
18 transportation by pipeline) shall be apportioned to this 
19 State by multiplying such income by a fraction, the 
20 numerator of which is the revenue miles of the person in 
21 this State, and the denominator of which is the revenue 
22 miles of the person everywhere. For purposes of this 
23 paragraph, a revenue mile is the transportation of 1 
24 passenger or 1 net ton of freight the distance of 1 mile 
25 for a consideration. Where a person is engaged in the 
26 transportation of both passengers and freight, the 
 
 
10300HB4951sam002- 894 -LRB103 38094 HLH 74177 a


1 fraction above referred to shall be determined by means of 
2 an average of the passenger revenue mile fraction and the 
3 freight revenue mile fraction, weighted to reflect the 
4 person's
5   (A) relative railway operating income from total 
6 passenger and total freight service, as reported to 
7 the Interstate Commerce Commission, in the case of 
8 transportation by railroad, and
9   (B) relative gross receipts from passenger and 
10 freight transportation, in case of transportation 
11 other than by railroad.
12  (2) Such business income derived from transportation 
13 by pipeline shall be apportioned to this State by 
14 multiplying such income by a fraction, the numerator of 
15 which is the revenue miles of the person in this State, and 
16 the denominator of which is the revenue miles of the 
17 person everywhere. For the purposes of this paragraph, a 
18 revenue mile is the transportation by pipeline of 1 barrel 
19 of oil, 1,000 cubic feet of gas, or of any specified 
20 quantity of any other substance, the distance of 1 mile 
21 for a consideration.
22  (3) For taxable years ending on or after December 31, 
23 2008, business income derived from providing 
24 transportation services other than airline services shall 
25 be apportioned to this State by using a fraction, (a) the 
26 numerator of which shall be (i) all receipts from any 
 
 
10300HB4951sam002- 895 -LRB103 38094 HLH 74177 a


1 movement or shipment of people, goods, mail, oil, gas, or 
2 any other substance (other than by airline) that both 
3 originates and terminates in this State, plus (ii) that 
4 portion of the person's gross receipts from movements or 
5 shipments of people, goods, mail, oil, gas, or any other 
6 substance (other than by airline) that originates in one 
7 state or jurisdiction and terminates in another state or 
8 jurisdiction, that is determined by the ratio that the 
9 miles traveled in this State bears to total miles 
10 everywhere and (b) the denominator of which shall be all 
11 revenue derived from the movement or shipment of people, 
12 goods, mail, oil, gas, or any other substance (other than 
13 by airline). Where a taxpayer is engaged in the 
14 transportation of both passengers and freight, the 
15 fraction above referred to shall first be determined 
16 separately for passenger miles and freight miles. Then an 
17 average of the passenger miles fraction and the freight 
18 miles fraction shall be weighted to reflect the 
19 taxpayer's:
20   (A) relative railway operating income from total 
21 passenger and total freight service, as reported to 
22 the Surface Transportation Board, in the case of 
23 transportation by railroad; and
24   (B) relative gross receipts from passenger and 
25 freight transportation, in case of transportation 
26 other than by railroad. 
 
 
10300HB4951sam002- 896 -LRB103 38094 HLH 74177 a


1  (4) For taxable years ending on or after December 31, 
2 2008, business income derived from furnishing airline 
3 transportation services shall be apportioned to this State 
4 by multiplying such income by a fraction, the numerator of 
5 which is the revenue miles of the person in this State, and 
6 the denominator of which is the revenue miles of the 
7 person everywhere. For purposes of this paragraph, a 
8 revenue mile is the transportation of one passenger or one 
9 net ton of freight the distance of one mile for a 
10 consideration. If a person is engaged in the 
11 transportation of both passengers and freight, the 
12 fraction above referred to shall be determined by means of 
13 an average of the passenger revenue mile fraction and the 
14 freight revenue mile fraction, weighted to reflect the 
15 person's relative gross receipts from passenger and 
16 freight airline transportation. 
17 (e) Combined apportionment. Where 2 or more persons are 
18engaged in a unitary business as described in subsection 
19(a)(27) of Section 1501, a part of which is conducted in this 
20State by one or more members of the group, the business income 
21attributable to this State by any such member or members shall 
22be apportioned by means of the combined apportionment method.
23 (f) Alternative allocation. If the allocation and 
24apportionment provisions of subsections (a) through (e) and of 
25subsection (h) do not, for taxable years ending before 
26December 31, 2008, fairly represent the extent of a person's 
 
 
10300HB4951sam002- 897 -LRB103 38094 HLH 74177 a


1business activity in this State, or, for taxable years ending 
2on or after December 31, 2008, fairly represent the market for 
3the person's goods, services, or other sources of business 
4income, the person may petition for, or the Director may, 
5without a petition, permit or require, in respect of all or any 
6part of the person's business activity, if reasonable:
7  (1) Separate accounting;
8  (2) The exclusion of any one or more factors;
9  (3) The inclusion of one or more additional factors 
10 which will fairly represent the person's business 
11 activities or market in this State; or
12  (4) The employment of any other method to effectuate 
13 an equitable allocation and apportionment of the person's 
14 business income.
15 (g) Cross reference. For allocation of business income by 
16residents, see Section 301(a).
17 (h) For tax years ending on or after December 31, 1998, the 
18apportionment factor of persons who apportion their business 
19income to this State under subsection (a) shall be equal to:
20  (1) for tax years ending on or after December 31, 1998 
21 and before December 31, 1999, 16 2/3% of the property 
22 factor plus 16 2/3% of the payroll factor plus 66 2/3% of 
23 the sales factor;
24  (2) for tax years ending on or after December 31, 1999 
25 and before December 31, 2000, 8 1/3% of the property 
26 factor plus 8 1/3% of the payroll factor plus 83 1/3% of 
 
 
10300HB4951sam002- 898 -LRB103 38094 HLH 74177 a


1 the sales factor;
2  (3) for tax years ending on or after December 31, 
3 2000, the sales factor.
4If, in any tax year ending on or after December 31, 1998 and 
5before December 31, 2000, the denominator of the payroll, 
6property, or sales factor is zero, the apportionment factor 
7computed in paragraph (1) or (2) of this subsection for that 
8year shall be divided by an amount equal to 100% minus the 
9percentage weight given to each factor whose denominator is 
10equal to zero.
11(Source: P.A. 101-31, eff. 6-28-19; 101-585, eff. 8-26-19; 
12102-40, eff. 6-25-21; 102-558, eff. 8-20-21.)

13
ARTICLE 90. 


14 Section 90-5. The Illinois Income Tax Act is amended by 
15changing Sections 218 and 227 as follows:

16 (35 ILCS 5/218)
17 Sec. 218. Credit for student-assistance contributions.
18 (a) For taxable years ending on or after December 31, 2009 
19and on or before December 31, 2029 2024, each taxpayer who, 
20during the taxable year, makes a contribution (i) to a 
21specified individual College Savings Pool Account under 
22Section 16.5 of the State Treasurer Act or (ii) to the Illinois 
23Prepaid Tuition Trust Fund in an amount matching a 
 
 
10300HB4951sam002- 899 -LRB103 38094 HLH 74177 a


1contribution made in the same taxable year by an employee of 
2the taxpayer to that Account or Fund is entitled to a credit 
3against the tax imposed under subsections (a) and (b) of 
4Section 201 in an amount equal to 25% of that matching 
5contribution, but not to exceed $500 per contributing employee 
6per taxable year.
7 (b) For taxable years ending before December 31, 2023, for 
8partners, shareholders of Subchapter S corporations, and 
9owners of limited liability companies, if the liability 
10company is treated as a partnership for purposes of federal 
11and State income taxation, there is allowed a credit under 
12this Section to be determined in accordance with the 
13determination of income and distributive share of income under 
14Sections 702 and 704 and Subchapter S of the Internal Revenue 
15Code. For taxable years ending on or after December 31, 2023, 
16partners and shareholders of subchapter S corporations are 
17entitled to a credit under this Section as provided in Section 
18251.
19 (c) The credit may not be carried back. If the amount of 
20the credit exceeds the tax liability for the year, the excess 
21may be carried forward and applied to the tax liability of the 
225 taxable years following the excess credit year. The tax 
23credit shall be applied to the earliest year for which there is 
24a tax liability. If there are credits for more than one year 
25that are available to offset a liability, the earlier credit 
26shall be applied first. 
 
 
10300HB4951sam002- 900 -LRB103 38094 HLH 74177 a


1 (d) A taxpayer claiming the credit under this Section must 
2maintain and record any information that the Illinois Student 
3Assistance Commission, the Office of the State Treasurer, or 
4the Department may require regarding the matching contribution 
5for which the credit is claimed. 
6(Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.)

7 (35 ILCS 5/227)
8 Sec. 227. Adoption credit.
9 (a) Beginning with tax years ending on or after December 
1031, 2018 and ending with tax years ending on or before December 
1131, 2029, in the case of an individual taxpayer there shall be 
12allowed a credit against the tax imposed by subsections (a) 
13and (b) of Section 201 in an amount equal to the amount of the 
14federal adoption tax credit received pursuant to Section 23 of 
15the Internal Revenue Code with respect to the adoption of a 
16qualifying dependent child, subject to the limitations set 
17forth in this subsection and subsection (b). The aggregate 
18amount of qualified adoption expenses which may be taken into 
19account under this Section for all taxable years with respect 
20to the adoption of a qualifying dependent child by the 
21taxpayer shall not exceed $2,000 ($1,000 in the case of a 
22married individual filing a separate return). The credit under 
23this Section shall be allowed: (i) in the case of any expense 
24paid or incurred before the taxable year in which such 
25adoption becomes final, for the taxable year following the 
 
 
10300HB4951sam002- 901 -LRB103 38094 HLH 74177 a


1taxable year during which such expense is paid or incurred, 
2and (ii) in the case of an expense paid or incurred during or 
3after the taxable year in which such adoption becomes final, 
4for the taxable year in which such expense is paid or incurred. 
5No credit shall be allowed under this Section for any expense 
6to the extent that funds for such expense are received under 
7any federal, State, or local program. For purposes of this 
8Section, spouses filing a joint return shall be considered one 
9taxpayer.
10 For a non-resident or part-year resident, the amount of 
11the credit under this Section shall be in proportion to the 
12amount of income attributable to this State.
13 (b) Increased credit amount for resident children. With 
14respect to the adoption of an eligible child who is at least 
15one year old and resides in Illinois at the time the expenses 
16are paid or incurred, subsection (a) shall be applied by 
17substituting $5,000 ($2,500 in the case of a married 
18individual filing a separate return) for $2,000.
19 (c) In no event shall a credit under this Section reduce 
20the taxpayer's liability to less than zero. If the amount of 
21the credit exceeds the income tax liability for the applicable 
22tax year, the excess may be carried forward and applied to the 
23tax liability of the 5 taxable years following the excess 
24credit year. The credit shall be applied to the earliest year 
25for which there is a tax liability. If there are credits from 
26more than one year that are available to offset a liability, 
 
 
10300HB4951sam002- 902 -LRB103 38094 HLH 74177 a


1the earlier credit shall be applied first.
2 (d) The term "qualified adoption expenses" shall have the 
3same meaning as under Section 23(d) of the Internal Revenue 
4Code. 
5(Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)

6
ARTICLE 93.


7 Section 93-1. Short title. This Act may be cited as the 
8Ground-Based Sparkler Purchaser Excise Tax Act. References in 
9this Article to "this Act" mean this Article.

10 Section 93-5. Definitions. As used in this Act:
11 "Affirmative act in furtherance of the evasion" means an 
12act designed in whole or in part to (i) conceal, misrepresent, 
13falsify, or manipulate any material fact or (ii) tamper with 
14or destroy documents or materials related to a person's tax 
15liability under this Act.
16 "Automated sales suppression device" or "zapper" means a 
17software program that falsifies the electronic records of an 
18electronic cash register or other point-of-sale system, 
19including, but not limited to, transaction data and 
20transaction reports. "Automated sales suppression device" or 
21"zapper" includes the software program, any device that 
22carries the software program, or an Internet link to the 
23software program.
 
 
10300HB4951sam002- 903 -LRB103 38094 HLH 74177 a


1 "Consumer distributor" means any person who distributes, 
2offers for sale, sells, or exchanges for consideration 
3consumer fireworks in this State to another distributor or 
4directly to any retailer or person for resale.
5 "Consumer retailer" means any person who offers for sale, 
6sells, or exchanges for consideration consumer fireworks in 
7this State directly to any person with a consumer display 
8permit.
9 "Department" means the Department of Revenue.
10 "Director" means the Director of Revenue.
11 "Electronic cash register" means a device that keeps a 
12register or supporting documents through the use of an 
13electronic device or computer system designed to record 
14transaction data for the purpose of computing, compiling, or 
15processing retail sales transaction data in any manner.
16 "Ground-based sparkler retailer" means any person that 
17transfers the ownership of or title to ground-based sparklers 
18to a purchaser, for the purpose of use, and not for the purpose 
19of resale, for a valuable consideration.
20 "Ground-based sparkler" means any ground-based sparkler 
21that (i) is nonexplosive and nonaerial, (ii) may produce a 
22crackling or whistling effect, and (iii) contains 75 grams or 
23less of pyrotechnic composition per tube or a total of 500 
24grams or less for multiple tubes, such as cones, including 
25showers of sparks, fountains, repeaters, and cakes.
26 "Person" means a natural individual, firm, partnership, 
 
 
10300HB4951sam002- 904 -LRB103 38094 HLH 74177 a


1association, joint stock company, joint adventure, public or 
2private corporation, limited liability company, or a receiver, 
3executor, trustee, guardian, or other representative appointed 
4by order of any court.
5 "Phantom-ware" means a hidden programming option embedded 
6in the operating system of an electronic cash register or 
7hardwired into an electronic cash register that can be used to 
8create a second set of records or that can eliminate or 
9manipulate transaction records in an electronic cash register.
10 "Purchase price" means the consideration paid for a 
11purchase of ground-based sparklers, valued in money, whether 
12received in money or otherwise, including cash, gift cards, 
13credits, and property and shall be determined without any 
14deduction on account of the cost of materials used, labor or 
15service costs, or any other expense whatsoever. "Purchase 
16price" does not include consideration paid for:
17  (1) any charge for a payment that is not honored by a 
18 financial institution;
19  (2) any finance or credit charge, penalty or charge 
20 for delayed payment, or discount for prompt payment; and
21  (3) any amounts added to a purchaser's bill because of 
22 charges made under the tax imposed by this Act, the 
23 Retailers' Occupation Tax Act, the Use Tax Act, the 
24 Service Occupation Tax Act, the Service Use Tax Act, or 
25 any locally imposed occupation or use tax.
26 "Purchaser" means a person who, through a sale at retail, 
 
 
10300HB4951sam002- 905 -LRB103 38094 HLH 74177 a


1acquires ground-based sparklers for a valuable consideration.
2 "Taxpayer" means a ground-based sparkler retailer who is 
3required to collect the tax imposed under this Act.
4 "Transaction data" includes: items purchased by a 
5purchaser; the price of each item; a taxability determination 
6for each item; a segregated tax amount for each taxed item; the 
7amount of cash or credit tendered; the net amount returned to 
8the customer in change; the date and time of the purchase; the 
9name, address, and identification number of the vendor; and 
10the receipt or invoice number of the transaction.
11 "Transaction report" means a report that documents, 
12without limitation, the sales, taxes, or fees collected, media 
13totals, and discount voids at an electronic cash register and 
14that is printed on a cash register tape at the end of a day or 
15shift, or a report that documents every action at an 
16electronic cash register and is stored electronically.

17 Section 93-10. Tax imposed. 
18 (a) Beginning January 1, 2025, a tax is imposed upon 
19purchasers for the privilege of using ground-based sparklers 
20and not for the purpose of resale at the rate of 3% of the 
21purchase price of ground-based sparklers.
22 (b) The tax imposed under this Act shall be in addition to 
23all other occupation, privilege, or excise taxes imposed by 
24the State or by any municipal corporation or political 
25subdivision thereof.
 
 
10300HB4951sam002- 906 -LRB103 38094 HLH 74177 a


1 (c) The tax imposed under this Act shall not be imposed on 
2any purchase by a purchaser if the ground-based sparkler 
3retailer is prohibited by federal or State Constitution, 
4treaty, convention, statute, or court decision from collecting 
5the tax from the purchaser.

6 Section 93-15. Bundling of taxable and nontaxable items; 
7prohibition; taxation. A ground-based sparkler retailer is 
8prohibited from selling ground-based sparkler products in 
9combination or bundled with any other items not subject to tax 
10under this Act for one price, and each ground-based sparkler 
11must be separately identified by quantity and price on the 
12receipt.
13 If a ground-based sparkler retailer sells ground-based 
14sparkler products in combination or bundled with items that 
15are not subject to tax under this Act for one price in 
16violation of the prohibition on this activity, then the tax 
17under this Act is imposed on the purchase price of the entire 
18bundled product.

19 Section 93-20. Collection of tax.
20 (a) The tax imposed by this Act shall be collected from the 
21purchaser by the ground-based sparkler retailer at the rate 
22stated in Section 93-10 with respect to ground-based sparklers 
23sold by the ground-based sparkler retailer to the purchaser 
24and shall be remitted to the Department as provided in Section 
 
 
10300HB4951sam002- 907 -LRB103 38094 HLH 74177 a


193-35. Ground-based sparkler retailers shall collect the tax 
2from purchasers by adding the tax to the amount of the purchase 
3price received from the purchaser for selling ground-based 
4sparklers to the purchaser. The tax imposed by this Act shall, 
5when collected, be stated as a distinct item separate and 
6apart from the purchase price of the ground-based sparklers.
7 (b) If a ground-based sparkler retailer collects the 
8ground-based sparkler purchaser excise tax measured by a 
9purchase price that is not subject to the ground-based 
10sparkler purchaser excise tax, or if a ground-based sparkler 
11retailer, in collecting the ground-based sparkler purchaser 
12excise tax measured by a purchase price that is subject to tax 
13under this Act, collects more from the purchaser than the 
14required amount of the ground-based sparkler purchaser excise 
15tax on the transaction, the purchaser shall have a legal right 
16to claim a refund of that amount from the ground-based 
17sparkler retailer. If, however, that amount is not refunded to 
18the purchaser for any reason, the ground-based sparkler 
19retailer is liable to pay that amount to the Department.
20 (c) Any person purchasing ground-based sparklers subject 
21to tax under this Act as to which there has been no charge made 
22to them of the tax imposed by Section 93-10 shall make payment 
23of the tax imposed by Section 93-10 in the form and manner 
24provided by the Department not later than the 20th day of the 
25month following the month of purchase of the ground-based 
26sparklers.

 
 
10300HB4951sam002- 908 -LRB103 38094 HLH 74177 a


1 Section 93-25. Registration of ground-based sparkler 
2retailers. Every ground-based sparkler retailer required to 
3collect the tax under this Act shall apply to the Department 
4for a certificate of registration under this Act. All 
5applications for registration under this Act shall be made by 
6electronic means in the form and manner required by the 
7Department. For that purpose, the provisions of Section 2a of 
8the Retailers' Occupation Tax Act are incorporated into this 
9Act to the extent not inconsistent with this Act. In addition, 
10no certificate of registration shall be issued under this Act 
11unless the applicant is licensed under the Retailers' 
12Occupation Tax Act.

13 Section 93-30. Tax collected as debt owed to State. Any 
14ground-based sparkler retailer required to collect the tax 
15imposed by this Act shall be liable to the Department for the 
16tax, whether the tax has been collected by the ground-based 
17sparkler retailer, and any such tax shall constitute a debt 
18owed by the ground-based sparkler retailer to the State. To 
19the extent that a ground-based sparkler retailer is required 
20to collect the tax imposed by this Act has actually collected 
21that tax, the tax is held in trust for the benefit of the 
22Department.

23 Section 93-35. Return and payment of tax by ground-based 
 
 
10300HB4951sam002- 909 -LRB103 38094 HLH 74177 a


1sparkler retailer. Each ground-based sparkler retailer that is 
2required or authorized to collect the tax imposed by this Act 
3shall make a return to the Department, by electronic means, on 
4or before the 20th day of each month for the preceding calendar 
5month stating:
6  (1) the ground-based sparkler retailer's name;
7  (2) the address of the ground-based sparkler 
8 retailer's principal place of business and the address of 
9 the principal place of business, if that is a different 
10 address, from which the ground-based sparkler retailer is 
11 engaged in the business of selling ground-based sparklers 
12 subject to tax under this Act;
13  (3) the total purchase price received by the 
14 ground-based sparkler retailer for ground-based sparklers 
15 subject to tax under this Act;
16  (4) the amount of tax due at each rate;
17  (5) the signature of the ground-based sparkler 
18 retailer; and
19  (6) any other information as the Department may 
20 reasonably require.
21 All returns required to be filed and payments required to 
22be made under this Act shall be by electronic means. 
23Ground-based sparkler retailers who demonstrate hardship in 
24paying electronically may petition the Department to waive the 
25electronic payment requirement.
26 Any amount that is required to be shown or reported on any 
 
 
10300HB4951sam002- 910 -LRB103 38094 HLH 74177 a


1return or other document under this Act shall, if the amount is 
2not a whole-dollar amount, be increased to the nearest 
3whole-dollar amount if the fractional part of a dollar is 
4$0.50 or more and decreased to the nearest whole-dollar amount 
5if the fractional part of a dollar is less than $0.50. If a 
6total amount of less than $1 is payable, refundable, or 
7creditable, the amount shall be disregarded if it is less than 
8$0.50 and shall be increased to $1 if it is $0.50 or more.
9 The ground-based sparkler retailer making the return under 
10this Section shall also pay to the Department the amount of tax 
11imposed by this Act, less a discount of 1.75% not to exceed 
12$1,000 per return period, which is allowed to reimburse the 
13ground-based sparkler retailer for the expenses incurred in 
14keeping records, collecting tax, preparing and filing returns, 
15remitting the tax, and supplying data to the Department upon 
16request. No discount may be claimed by a ground-based sparkler 
17retailer on returns not timely filed and for taxes not timely 
18remitted. No discount may be claimed by a taxpayer for any 
19return that is not filed electronically. No discount may be 
20claimed by a taxpayer for any payment that is not made 
21electronically, unless a waiver has been granted under this 
22Section.
23 Notwithstanding any other provision of this Act concerning 
24the time within which a ground-based sparkler retailer may 
25file a return, any such ground-based sparkler retailer who 
26ceases to engage in the kind of business that makes the person 
 
 
10300HB4951sam002- 911 -LRB103 38094 HLH 74177 a


1responsible for filing returns under this Act shall file a 
2final return under this Act with the Department within one 
3month after discontinuing the business.
4 If any payment provided for in this Section exceeds the 
5taxpayer's liabilities under this Act, as shown on an original 
6monthly return, the Department shall, if requested by the 
7taxpayer, issue to the taxpayer a credit memorandum no later 
8than 30 days after the date of payment. The credit evidenced by 
9the credit memorandum may be assigned by the taxpayer to a 
10similar taxpayer under this Act, in accordance with reasonable 
11rules adopted by the Department. If no such request is made, 
12the taxpayer may credit the excess payment against tax 
13liability subsequently to be remitted to the Department under 
14this Act, in accordance with reasonable rules adopted by the 
15Department. If the Department subsequently determines that all 
16or any part of the credit taken was not actually due to the 
17taxpayer, the taxpayer's discount shall be reduced, if 
18necessary, to reflect the difference between the credit taken 
19and that actually due, and that taxpayer shall be liable for 
20penalties and interest on the difference. If a ground-based 
21sparkler retailer fails to sign a return within 30 days after 
22the proper notice and demand for signature by the Department 
23is received by the ground-based sparkler retailer, the return 
24shall be considered valid and any amount shown to be due on the 
25return shall be deemed assessed.

 
 
10300HB4951sam002- 912 -LRB103 38094 HLH 74177 a


1 Section 93-40. Deposit of proceeds. From the revenue 
2collected under Section 93-10, the Department shall pay 25% 
3into the Firemen's Annuity and Benefit Fund, 25% into the 
4Firefighters' Pension Investment Fund, and 50% into the 
5General Revenue Fund.

6 Section 93-45. Record keeping; books and records.
7 (a) Every ground-based sparkler retailer, whether the 
8ground-based sparkler retailer has obtained a certificate of 
9registration under Section 93-25, shall keep complete and 
10accurate records of ground-based sparklers held, purchased, 
11sold, or otherwise disposed of, and shall preserve and keep 
12all invoices, bills of lading, sales records, and copies of 
13bills of sale, returns, and other pertinent papers and 
14documents relating to the purchase, sale, or disposition of 
15ground-based sparklers. Such records need not be maintained on 
16the licensed premises but must be maintained in the State. 
17However, all original invoices or copies thereof covering 
18purchases of ground-based sparklers must be retained on the 
19licensed premises for a period of 90 days after such purchase, 
20unless the Department has granted a waiver in response to a 
21written request in cases where records are kept at a central 
22business location within the State. The Department shall adopt 
23rules regarding the eligibility for a waiver, revocation of a 
24waiver, and requirements and standards for maintenance and 
25accessibility of records located at a central location under a 
 
 
10300HB4951sam002- 913 -LRB103 38094 HLH 74177 a


1waiver provided under this Section.
2 (b) Books, records, papers, and documents that are 
3required by this Act to be kept shall, at all times during the 
4usual business hours of the day, be subject to inspection by 
5the Department or its duly authorized agents and employees. 
6The books, records, papers, and documents for any period with 
7respect to which the Department is authorized to issue a 
8notice of tax liability shall be preserved until the 
9expiration of that period.

10 Section 93-50. Violations and penalties.
11 (a) If the amount due is under $300, any ground-based 
12sparkler retailer who fails to file a return, willfully fails 
13or refuses to make any payment to the Department of the tax 
14imposed by this Act, or files a fraudulent return, or any 
15officer or agent of a corporation engaged in the business of 
16selling ground-based sparklers to purchasers located in this 
17State who signs a fraudulent return filed on behalf of the 
18corporation, or any accountant or other agent who knowingly 
19enters false information on the return of any taxpayer under 
20this Act is guilty of a Class 4 felony.
21 (b) If the amount due is $300 or more, any ground-based 
22sparkler retailer who files, or causes to be filed, a 
23fraudulent return, or any officer or agent of a corporation 
24engaged in the business of selling ground-based sparklers to 
25purchasers located in this State who files or causes to be 
 
 
10300HB4951sam002- 914 -LRB103 38094 HLH 74177 a


1filed or signs or causes to be signed a fraudulent return filed 
2on behalf of the corporation, or any accountant or other agent 
3who knowingly enters false information on the return of any 
4taxpayer under this Act is guilty of a Class 3 felony.
5 (c) Any person who violates any provision of Section 
693-30, fails to keep books and records as required under this 
7Act, or willfully violates a rule of the Department for the 
8administration and enforcement of this Act is guilty of a 
9Class 4 felony. A person commits a separate offense on each day 
10that the person engages in business in violation of Section 
1193-30 or a rule of the Department for the administration and 
12enforcement of this Act. If a person fails to produce the books 
13and records for inspection by the Department upon request, a 
14prima facie presumption shall arise that the person has failed 
15to keep books and records as required under this Act. A person 
16who is unable to rebut this presumption is in violation of this 
17Act and is subject to the penalties provided in this Section.
18 (d) Any person who willfully violates a rule of the 
19Department for the administration and enforcement of this 
20Article, is guilty of a business offense and may be fined up to 
21$5,000.
22 (e) Any taxpayer or agent of a taxpayer who with the intent 
23to defraud purports to make a payment due to the Department by 
24issuing or delivering a check or other order upon a real or 
25fictitious depository for the payment of money, knowing that 
26it will not be paid by the depository, is guilty of a deceptive 
 
 
10300HB4951sam002- 915 -LRB103 38094 HLH 74177 a


1practice in violation of Section 17-1 of the Criminal Code of 
22012.
3 (f) Any person who fails to keep books and records or fails 
4to produce books and records for inspection, as required by 
5Section 93-45, is liable to pay to the Department, for deposit 
6in the Tax Compliance and Administration Fund, a penalty of 
7$1,000 for the first failure to keep books and records or 
8failure to produce books and records for inspection, as 
9required by Section 93-45, and $3,000 for each subsequent 
10failure to keep books and records or failure to produce books 
11and records for inspection, as required by Section 93-45.
12 (g) Any person who knowingly acts as a ground-based 
13sparkler retailer in this State without first having obtained 
14a certificate of registration to do so in compliance with 
15Section 93-30 shall be guilty of a Class 4 felony.
16 (h) A person commits the offense of tax evasion under this 
17Act when a person knowingly attempts in any manner to evade or 
18defeat the tax imposed on the person or on any other person, or 
19the payment thereof, and a person commits an affirmative act 
20in furtherance of the evasion.
21 Two or more acts of sales tax evasion may be charged as a 
22single count in any indictment, information, or complaint and 
23the amount of tax deficiency may be aggregated for purposes of 
24determining the amount of tax that is attempted to be or is 
25evaded and the period between the first and last acts may be 
26alleged as the date of the offense.
 
 
10300HB4951sam002- 916 -LRB103 38094 HLH 74177 a


1  (1) If the amount of tax, the assessment or payment of 
2 which is attempted to be or is evaded is less than $500, a 
3 person is guilty of a Class 4 felony.
4  (2) If the amount of tax, the assessment or payment of 
5 which is attempted to be or is evaded is $500 or more but 
6 less than $10,000, a person is guilty of a Class 3 felony.
7  (3) If the amount of tax, the assessment or payment of 
8 which is attempted to be or is evaded is $10,000 or more 
9 but less than $100,000, a person is guilty of a Class 2 
10 felony.
11  (4) If the amount of tax, the assessment or payment of 
12 which is attempted to be or is evaded is $100,000 or more, 
13 a person is guilty of a Class 1 felony.
14 Any person who knowingly sells, purchases, installs, 
15transfers, possesses, uses, or accesses any automated sales 
16suppression device, zapper, or phantom-ware in this State is 
17guilty of a Class 3 felony.
18 A prosecution for any act in violation of this Section may 
19be commenced at any time within 5 years of the commission of 
20that act.
21 (i) The Department may adopt rules to administer the 
22penalties under this Section.
23 (j) Any person whose principal place of business is in 
24this State and who is charged with a violation under this 
25Section shall be tried in the county where the person's 
26principal place of business is located unless the person 
 
 
10300HB4951sam002- 917 -LRB103 38094 HLH 74177 a


1asserts a right to be tried in another venue.
2 (k) Except as otherwise provided in subsection (h), a 
3prosecution for a violation described in this Section may be 
4commenced within 3 years after the commission of the act 
5constituting the violation.

6 Section 93-55. Department administration and enforcement. 
7The Department shall have full power to administer and enforce 
8this Act, to collect all taxes and penalties due hereunder, to 
9dispose of taxes and penalties so collected in the manner 
10hereinafter provided, and to determine all rights to credit 
11memoranda, arising on account of the erroneous payment of tax 
12or penalty hereunder.
13 In the administration of, and compliance with, this Act, 
14the Department and persons who are subject to this Act shall 
15have the same rights, remedies, privileges, immunities, 
16powers, and duties, and be subject to the same conditions, 
17restrictions, limitations, penalties, and definitions of 
18terms, and employ the same modes of procedure, as are 
19prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11, 12a, 12b, 
2014, 15, 19, 20, 21, and 22 of the Use Tax Act and Sections 1, 
212-12, 2b, 4 (except that the time limitation provisions shall 
22run from the date when the tax is due rather than from the date 
23when gross receipts are received), 5 (except that the time 
24limitation provisions on the issuance of notices of tax 
25liability shall run from the date when the tax is due rather 
 
 
10300HB4951sam002- 918 -LRB103 38094 HLH 74177 a


1than from the date when gross receipts are received and except 
2that in the case of a failure to file a return required by this 
3Act, no notice of tax liability shall be issued on and after 
4each July 1 and January 1 covering tax due with that return 
5during any month or period more than 6 years before that July 1 
6or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 
75j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation 
8Tax Act and all of the provisions of the Uniform Penalty and 
9Interest Act, which are not inconsistent with this Act, as 
10fully as if those provisions were set forth herein. References 
11in the incorporated Sections of the Retailers' Occupation Tax 
12Act and the Use Tax Act to retailers, to sellers, or to persons 
13engaged in the business of selling tangible personal property 
14mean ground-based sparkler retailers when used in this Act. 
15References in the incorporated Sections to sales of tangible 
16personal property mean sales of ground-based sparklers subject 
17to tax under this Act when used in this Act.

18 Section 93-60. Arrest; search and seizure without warrant. 
19Any duly authorized employee of the Department (i) may arrest, 
20without warrant, any person committing in their presence a 
21violation of any of the provisions of this Act, (ii) may, 
22without a search warrant, inspect all ground-based sparklers 
23located in any place of the business, and (iii) may seize any 
24ground-based sparklers in the possession of the ground-based 
25sparkler retailer in violation of this Act. The ground-based 
 
 
10300HB4951sam002- 919 -LRB103 38094 HLH 74177 a


1sparklers so seized are subject to confiscation and forfeiture 
2as provided in Sections 93-65 and 93-70.

3 Section 93-65. Seizure and forfeiture. After seizing any 
4ground-based sparklers as provided in Section 93-60, the 
5Department must hold a hearing and determine whether (i) the 
6ground-based sparkler retailer was properly registered to sell 
7the ground-based sparklers, (ii) the ground-based sparkler 
8retailer possessed the ground-based sparklers in violation of 
9this Act, or (iii) the ground-based sparkler retailer 
10possessed the ground-based sparklers in violation of any 
11reasonable rule adopted by the Department for the enforcement 
12of this Act at the time of its seizure by the Department. The 
13Department shall give not less than 20 days' notice of the time 
14and place of the hearing to the owner of the ground-based 
15sparklers, if the owner is known, and also to the person in 
16whose possession the ground-based sparklers were found, if 
17that person is known and if the person in possession is not the 
18owner of the ground-based sparklers. If neither the owner nor 
19the person in possession of the ground-based sparklers is 
20known, the Department must cause publication of the time and 
21place of the hearing to be made at least once in each week for 
223 weeks successively in a newspaper of general circulation in 
23the county where the hearing is to be held.
24 If, as the result of the hearing, the Department makes any 
25of the findings listed in (i) through (iii) above, the 
 
 
10300HB4951sam002- 920 -LRB103 38094 HLH 74177 a


1Department must enter an order declaring the ground-based 
2sparklers confiscated and forfeited to the State, to be held 
3by the Department for disposal by it as provided in Section 
493-70. The Department must give notice of the order to the 
5owner of the ground-based sparklers, if the owner is known, 
6and also to the person in whose possession the ground-based 
7sparklers were found, if that person is known and if the person 
8in possession is not the owner of the ground-based sparklers. 
9If neither the owner nor the person in possession of the 
10ground-based sparklers is known, the Department must cause 
11publication of the order to be made at least once in each week 
12for 3 weeks successively in a newspaper of general circulation 
13in the county where the hearing was held.

14 Section 93-70. Search warrant; issuance and return; 
15process; confiscation of ground-based sparklers; forfeitures.
16 (a) If a peace officer of this State or any duly authorized 
17officer or employee of the Department has reason to believe 
18that any violation of this Act or a rule of the Department for 
19the administration and enforcement of this Act has occurred 
20and that the person violating this Act or rule has in that 
21person's possession any ground-based sparklers in violation of 
22this Act or a rule of the Department for the administration and 
23enforcement of this Act, that peace officer or officer or 
24employee of the Department may file or cause to be filed a 
25complaint in writing, verified by affidavit, with any court 
 
 
10300HB4951sam002- 921 -LRB103 38094 HLH 74177 a


1within whose jurisdiction the premises to be searched are 
2situated, stating the facts upon which the belief is founded, 
3the premises to be searched, and the property to be seized, and 
4procure a search warrant and execute that warrant. Upon the 
5execution of the search warrant, the peace officer, or officer 
6or employee of the Department, executing the search warrant 
7shall make due return of the warrant to the court issuing the 
8warrant, together with an inventory of the property taken 
9under the warrant. The court must then issue process against 
10the owner of the property if the owner is known; otherwise, 
11process must be issued against the person in whose possession 
12the property is found, if that person is known. In case of 
13inability to serve process upon the owner or the person in 
14possession of the property at the time of its seizure, notice 
15of the proceedings before the court must be given in the same 
16manner as required by the law governing cases of attachment. 
17Upon the return of the process duly served or upon the posting 
18or publishing of notice made, as appropriate, the court or 
19jury, if a jury is demanded, shall proceed to determine 
20whether the property so seized was held or possessed in 
21violation of this Act or a rule of the Department for the 
22administration and enforcement of this Act. If a violation is 
23found, judgment shall be entered confiscating the property and 
24forfeiting it to the State and ordering its delivery to the 
25Department. In addition, the court may tax and assess the 
26costs of the proceedings.
 
 
10300HB4951sam002- 922 -LRB103 38094 HLH 74177 a


1 (b) If any ground-based sparklers have been declared 
2forfeited to the State by the Department and all proceedings 
3for the judicial review of the Department's decision have 
4terminated, the Department shall, to the extent that its 
5decision is sustained on review, destroy such ground-based 
6sparklers.

7 Section 93-75. Rulemaking. The Department may adopt rules 
8in accordance with the Illinois Administrative Procedure Act 
9and prescribe forms relating to the administration and 
10enforcement of this Act as it deems appropriate.

11 Section 93-900. The Fireworks Regulation Act of Illinois 
12is amended by changing Sections 2, 3.5, and 24 and by adding 
13Section 3.6 as follows:

14 (425 ILCS 30/2) (from Ch. 127 1/2, par. 102)
15 Sec. 2. The following words and phrases, when used in this 
16Act, shall for the purpose of this Act have the following 
17definition and meaning:
18 (a) The term "fireworks" shall mean and include any 
19explosive composition or any substance or combination of 
20substances, or article prepared for the purpose of producing a 
21visible or audible effect of a temporary exhibitional nature 
22by explosion, combustion, deflagration, or detonation, and 
23shall include blank cartridges, toy cannons in which 
 
 
10300HB4951sam002- 923 -LRB103 38094 HLH 74177 a


1explosives are used, the type of balloons which require fire 
2underneath to propel the same, firecrackers, torpedoes, sky 
3rockets, Roman candles, bombs or other fireworks of like 
4construction, and any fireworks containing any explosive 
5compound; or any tablets or other device containing any 
6explosive substance, or containing combustible substances 
7producing visual effects. The term "fireworks" shall not 
8include snake or glow worm pellets; smoke devices; sparklers; 
9ground-based sparklers that (i) are nonexplosive and 
10nonaerial, (ii) may produce a crackling or whistling effect, 
11and (iii) contain 75 grams or less of pyrotechnic composition 
12per tube or a total of 500 grams or less for multiple tubes, 
13such as cones, including showers of sparks, fountains, 
14repeaters, and cakes; trick noisemakers known as "party 
15poppers", "booby traps", "snappers", "trick matches", 
16"cigarette loads", and "auto burglar alarms"; toy pistols, toy 
17canes, toy guns, or other devices in which paper or plastic 
18caps containing twenty-five hundredths grains or less of 
19explosive compound are used, provided they are so constructed 
20that the hand cannot come in contact with the cap when in place 
21for the explosion; and toy pistol paper or plastic caps which 
22contain less than twenty-five hundredths grains of explosive 
23mixture; the sale and use of which shall be permitted at all 
24times.
25 (b) The term "fireworks plant" shall mean and include all 
26lands, with buildings thereon, used in connection with the 
 
 
10300HB4951sam002- 924 -LRB103 38094 HLH 74177 a


1manufacture or processing of fireworks, as well as storehouses 
2located thereon for the storage of finished fireworks.
3 (c) The term "fireworks factory building" shall mean any 
4building or other structure in which the manufacture of 
5fireworks, or in which any processing involving fireworks is 
6carried on.
7 (d) The term "magazine" shall mean any building or other 
8structure used for the storage of explosive raw materials used 
9in the manufacture of fireworks.
10 (e) The term "Office" shall mean the Office of the State 
11Fire Marshal.
12(Source: P.A. 83-474.)

13 (425 ILCS 30/3.5)
14 Sec. 3.5. Sale and use prohibited on public property. A 
15municipality may, by ordinance, prohibit the sale and use of 
16sparklers or ground-based sparklers on public property.
17(Source: P.A. 92-93, eff. 1-1-02.)

18 (425 ILCS 30/3.6 new)
19 Sec. 3.6. Sale of ground-based sparklers. No ground-based 
20sparkler that (i) is nonexplosive and nonaerial, (ii) may 
21produce a crackling or whistling effect, and (iii) contains 75 
22grams or less of pyrotechnic composition per tube or a total of 
23500 grams or less for multiple tubes, such as cones, including 
24showers of sparks, fountains, repeaters, and cakes, may be 
 
 
10300HB4951sam002- 925 -LRB103 38094 HLH 74177 a


1sold to a person under the age of 18 years.

2 (425 ILCS 30/24) (from Ch. 127 1/2, par. 124)
3 Sec. 24. The provisions of this Act shall not be construed 
4or held to abrogate or in any way affect the power of cities, 
5villages, and incorporated towns to regulate, restrain, and 
6prohibit the use of fireworks, firecrackers, torpedoes, Roman 
7candles, skyrockets, ground-based sparklers, and other 
8pyrotechnic displays within their corporate limits. The 
9sections of this Act and every part of such sections are hereby 
10declared to be independent sections and parts of sections, and 
11the invalidity of any section or part thereof shall not affect 
12any other section or part of a section.
13(Source: Laws 1935, p. 881.)

14 Section 93-905. The Pyrotechnic Use Act is amended by 
15changing Section 1 and by adding Section 3.5 as follows:

16 (425 ILCS 35/1) (from Ch. 127 1/2, par. 127)
17 Sec. 1. Definitions. As used in this Act, the following 
18words shall have the following meanings:
19 "1.3G fireworks" means those fireworks used for 
20professional outdoor displays and classified as fireworks 
21UN0333, UN0334, or UN0335 by the United States Department of 
22Transportation under 49 C.F.R. 172.101.
23 "Consumer distributor" means any person who distributes, 
 
 
10300HB4951sam002- 926 -LRB103 38094 HLH 74177 a


1offers for sale, sells, or exchanges for consideration 
2consumer fireworks in Illinois to another distributor or 
3directly to any retailer or person for resale.
4 "Consumer fireworks" means those fireworks that must 
5comply with the construction, chemical composition, and 
6labeling regulations of the U.S. Consumer Products Safety 
7Commission, as set forth in 16 C.F.R. Parts 1500 and 1507, and 
8classified as fireworks UN0336 or UN0337 by the United States 
9Department of Transportation under 49 C.F.R. 172.101. 
10"Consumer fireworks" shall not include snake or glow worm 
11pellets; smoke devices; trick noisemakers known as "party 
12poppers", "booby traps", "snappers", "trick matches", 
13"cigarette loads", and "auto burglar alarms"; sparklers; 
14ground-based sparklers that (i) are nonexplosive and 
15nonaerial, (ii) may produce a crackling or whistling effect, 
16and (iii) contain 75 grams or less of pyrotechnic composition 
17per tube or a total of 500 grams or less for multiple tubes, 
18such as cones, including showers of sparks, fountains, 
19repeaters, and cakes; toy pistols, toy canes, toy guns, or 
20other devices in which paper or plastic caps containing 
21twenty-five hundredths grains or less of explosive compound 
22are used, provided they are so constructed that the hand 
23cannot come in contact with the cap when in place for the 
24explosion; and toy pistol paper or plastic caps that contain 
25less than twenty hundredths grains of explosive mixture; the 
26sale and use of which shall be permitted at all times.
 
 
10300HB4951sam002- 927 -LRB103 38094 HLH 74177 a


1 "Consumer fireworks display" or "consumer display" means 
2the detonation, ignition, or deflagration of consumer 
3fireworks to produce a visual or audible effect.
4 "Consumer operator" means an adult individual who is 
5responsible for the safety, setup, and discharge of the 
6consumer fireworks display and who has completed the training 
7required in Section 2.2 of this Act.
8 "Consumer retailer" means any person who offers for sale, 
9sells, or exchanges for consideration consumer fireworks in 
10Illinois directly to any person with a consumer display 
11permit.
12 "Display fireworks" means 1.3G or special effects 
13fireworks or as further defined in the Pyrotechnic Distributor 
14and Operator Licensing Act.
15 "Flame effect" means the detonation, ignition, or 
16deflagration of flammable gases, liquids, or special materials 
17to produce a thermal, physical, visual, or audible effect 
18before the public, invitees, or licensees, regardless of 
19whether admission is charged, in accordance with National Fire 
20Protection Association 160 guidelines, and as may be further 
21defined in the Pyrotechnic Distributor and Operator Licensing 
22Act.
23 "Lead pyrotechnic operator" means an individual who is 
24responsible for the safety, setup, and discharge of the 
25pyrotechnic display or pyrotechnic service and who is licensed 
26pursuant to the Pyrotechnic Distributor and Operator Licensing 
 
 
10300HB4951sam002- 928 -LRB103 38094 HLH 74177 a


1Act.
2 "Person" means an individual, firm, corporation, 
3association, partnership, company, consortium, joint venture, 
4commercial entity, state, municipality, or political 
5subdivision of a state or any agency, department, or 
6instrumentality of the United States and any officer, agent, 
7or employee of these entities. 
8 "Production company" means any person in the film, digital 
9and video media, television, commercial, music, or theatrical 
10stage industry who provides pyrotechnic services or 
11pyrotechnic display services as part of a film, digital and 
12video media, television, commercial, music, or theatrical 
13production in the State of Illinois and is licensed by the 
14Office pursuant to the Pyrotechnic Distributor and Operator 
15Licensing Act. 
16 "Pyrotechnic display" means the detonation, ignition, or 
17deflagration of display fireworks or flame effects to produce 
18visual or audible effects of an exhibitional nature before the 
19public, invitees, or licensees, regardless of whether 
20admission is charged, and as may be further defined in the 
21Pyrotechnic Distributor and Operator Licensing Act.
22 "Pyrotechnic distributor" means any person who distributes 
23display fireworks for sale in the State of Illinois or 
24provides them as part of a pyrotechnic display service in the 
25State of Illinois or provides only pyrotechnic services and is 
26licensed by the Office pursuant to the Pyrotechnic Distributor 
 
 
10300HB4951sam002- 929 -LRB103 38094 HLH 74177 a


1and Operator Licensing Act.
2 "Pyrotechnic service" means the detonation, ignition, or 
3deflagration of display fireworks, special effects, or flame 
4effects to produce a visual or audible effect. 
5 "Special effects fireworks" means pyrotechnic devices used 
6for special effects by professionals in the performing arts in 
7conjunction with theatrical, musical, or other productions 
8that are similar to consumer fireworks in chemical 
9compositions and construction, but are not intended for 
10consumer use and are not labeled as such or identified as 
11"intended for indoor use". "Special effects fireworks" are 
12classified as fireworks UN0431 or UN0432 by the United States 
13Department of Transportation under 49 C.F.R. 172.101.
14(Source: P.A. 99-642, eff. 7-28-16.)

15 (425 ILCS 35/3.5 new)
16 Sec. 3.5. Sale of ground-based sparklers. No ground-based 
17sparkler that (i) is nonexplosive and nonaerial, (ii) may 
18produce a crackling or whistling effect, and (iii) contains 75 
19grams or less of pyrotechnic composition per tube or a total of 
20500 grams or less for multiple tubes, such as cones, including 
21showers of sparks, fountains, repeaters, and cakes, may be 
22sold to a person under the age of 18 years.

23
ARTICLE 95.


 
 
10300HB4951sam002- 930 -LRB103 38094 HLH 74177 a


1 Section 95-5. The Property Tax Code is amended by changing 
2Section 20-130 as follows:

3 (35 ILCS 200/20-130)
4 Sec. 20-130. Distribution of taxes in counties of less 
5than 3,000,000; return of erroneous distribution.
6 (a) All distributions of taxes collected and interest 
7earned thereon by a county on behalf of taxing districts must 
8be made by the county treasurer, in counties with less than 
93,000,000 inhabitants, within 30 days after the due date and 
10at 30 days intervals thereafter, unless the amount to be 
11distributed is less than $5. The county treasurer shall 
12distribute the taxes collected at the next 30-day interval if 
13the taxes collected are $5 or more. If the tax collections for 
14a taxing district are less than $5 for 3 consecutive 30-day 
15intervals, the county treasurer shall automatically distribute 
16the taxes collected to the unit of local government on the 
17third 30-day interval. All interest earned by a county on 
18behalf of taxing districts must be distributed by the county 
19treasurer, in counties with less than 3,000,000 inhabitants, 
20no later than the last distribution of taxes. The county 
21treasurer shall determine the manner in which all 
22distributions under this Section are to be made. The manner of 
23distribution may include, but is not limited to, check or 
24electronic funds transfer.
25 (b) Notwithstanding any other law to the contrary, if a 
 
 
10300HB4951sam002- 931 -LRB103 38094 HLH 74177 a


1county makes an erroneous distribution of taxes collected and 
2interest earned thereon, upon majority vote of the governing 
3board of the taxing district that received the erroneous 
4distribution, the taxing district shall return the funds to 
5the county treasurer.
6(Source: P.A. 91-378, eff. 7-30-99.)

7
ARTICLE 100.


8 Section 100-5. The Illinois Income Tax Act is amended by 
9adding Section 244 as follows:

10 (35 ILCS 5/244 new)
11 Sec. 244. Child tax credit.
12 (a) For the taxable years beginning on or after January 1, 
132024, each individual taxpayer who has at least one qualifying 
14child who is younger than 12 years of age as of the last day of 
15the taxable year is entitled to a credit against the tax 
16imposed by subsections (a) and (b) of Section 201. For tax 
17years beginning on or after January 1, 2024 and before January 
181, 2025, the credit shall be equal to 20% of the credit allowed 
19to the taxpayer under Section 212 of this Act for that taxable 
20year. For tax years beginning on or after January 1, 2025, the 
21amount of the credit shall be equal to 40% of the credit 
22allowed to the taxpayer under Section 212 of this Act for that 
23taxable year. 
 
 
10300HB4951sam002- 932 -LRB103 38094 HLH 74177 a


1 (b) If the amount of the credit exceeds the income tax 
2liability for the applicable tax year, then the excess credit 
3shall be refunded the taxpayer. The amount of the refund under 
4this Section shall not be included in the taxpayer's income or 
5resources for the purposes of determining eligibility or 
6benefit level in any means-tested benefit program administered 
7by a governmental entity unless required by federal law. 
8 (c) The Department may adopt rules to carry out the 
9provisions of this Section. 
10 (d) As used in this Section, "qualifying child" has the 
11meaning given to that term in Section 152 of the Internal 
12Revenue Code. 
13 (e) This Section is exempt from the provisions of Section 
14250. 

15
ARTICLE 105.


16 Section 105-5. The Illinois Income Tax Act is amended by 
17changing Section 207 as follows:

18 (35 ILCS 5/207) (from Ch. 120, par. 2-207)
19 Sec. 207. Net Losses. 
20 (a) If after applying all of the (i) modifications 
21provided for in paragraph (2) of Section 203(b), paragraph (2) 
22of Section 203(c) and paragraph (2) of Section 203(d) and (ii) 
23the allocation and apportionment provisions of Article 3 of 
 
 
10300HB4951sam002- 933 -LRB103 38094 HLH 74177 a


1this Act and subsection (c) of this Section, the taxpayer's 
2net income results in a loss;
3  (1) for any taxable year ending prior to December 31, 
4 1999, such loss shall be allowed as a carryover or 
5 carryback deduction in the manner allowed under Section 
6 172 of the Internal Revenue Code;
7  (2) for any taxable year ending on or after December 
8 31, 1999 and prior to December 31, 2003, such loss shall be 
9 allowed as a carryback to each of the 2 taxable years 
10 preceding the taxable year of such loss and shall be a net 
11 operating loss carryover to each of the 20 taxable years 
12 following the taxable year of such loss;
13  (3) for any taxable year ending on or after December 
14 31, 2003 and prior to December 31, 2021, such loss shall be 
15 allowed as a net operating loss carryover to each of the 12 
16 taxable years following the taxable year of such loss, 
17 except as provided in subsection (d); and
18  (4) for any taxable year ending on or after December 
19 31, 2021, and for any net loss incurred in a taxable year 
20 prior to a taxable year ending on or after December 31, 
21 2021 for which the statute of limitation for utilization 
22 of such net loss has not expired, such loss shall be 
23 allowed as a net operating loss carryover to each of the 20 
24 taxable years following the taxable year of such loss, 
25 except as provided in subsection (d). 
26 (a-5) Election to relinquish carryback and order of 
 
 
10300HB4951sam002- 934 -LRB103 38094 HLH 74177 a


1application of losses.
2   (A) For losses incurred in tax years ending prior 
3 to December 31, 2003, the taxpayer may elect to 
4 relinquish the entire carryback period with respect to 
5 such loss. Such election shall be made in the form and 
6 manner prescribed by the Department and shall be made 
7 by the due date (including extensions of time) for 
8 filing the taxpayer's return for the taxable year in 
9 which such loss is incurred, and such election, once 
10 made, shall be irrevocable.
11   (B) The entire amount of such loss shall be 
12 carried to the earliest taxable year to which such 
13 loss may be carried. The amount of such loss which 
14 shall be carried to each of the other taxable years 
15 shall be the excess, if any, of the amount of such loss 
16 over the sum of the deductions for carryback or 
17 carryover of such loss allowable for each of the prior 
18 taxable years to which such loss may be carried.
19 (b) Any loss determined under subsection (a) of this 
20Section must be carried back or carried forward in the same 
21manner for purposes of subsections (a) and (b) of Section 201 
22of this Act as for purposes of subsections (c) and (d) of 
23Section 201 of this Act.
24 (c) Notwithstanding any other provision of this Act, for 
25each taxable year ending on or after December 31, 2008, for 
26purposes of computing the loss for the taxable year under 
 
 
10300HB4951sam002- 935 -LRB103 38094 HLH 74177 a


1subsection (a) of this Section and the deduction taken into 
2account for the taxable year for a net operating loss 
3carryover under paragraphs (1), (2), and (3) of subsection (a) 
4of this Section, the loss and net operating loss carryover 
5shall be reduced in an amount equal to the reduction to the net 
6operating loss and net operating loss carryover to the taxable 
7year, respectively, required under Section 108(b)(2)(A) of the 
8Internal Revenue Code, multiplied by a fraction, the numerator 
9of which is the amount of discharge of indebtedness income 
10that is excluded from gross income for the taxable year (but 
11only if the taxable year ends on or after December 31, 2008) 
12under Section 108(a) of the Internal Revenue Code and that 
13would have been allocated and apportioned to this State under 
14Article 3 of this Act but for that exclusion, and the 
15denominator of which is the total amount of discharge of 
16indebtedness income excluded from gross income under Section 
17108(a) of the Internal Revenue Code for the taxable year. The 
18reduction required under this subsection (c) shall be made 
19after the determination of Illinois net income for the taxable 
20year in which the indebtedness is discharged. 
21 (d) In the case of a corporation (other than a Subchapter S 
22corporation): ,
23  (1) no carryover deduction shall be allowed under this 
24 Section for any taxable year ending after December 31, 
25 2010 and prior to December 31, 2012; , and 
26  (2) no carryover deduction shall exceed $100,000 for 
 
 
10300HB4951sam002- 936 -LRB103 38094 HLH 74177 a


1 any taxable year ending on or after December 31, 2012 and 
2 prior to December 31, 2014 and for any taxable year ending 
3 on or after December 31, 2021 and prior to December 31, 
4 2024; and
5  (3) no carryover deduction shall exceed $500,000 for 
6 any taxable year ending on or after December 31, 2024. 
7 For the provided that, for purposes of determining the 
8taxable years to which a net loss may be carried under 
9subsection (a) of this Section, no taxable year for which a 
10deduction is disallowed under this subsection, or for which 
11the deduction would exceed $100,000 or $500,000, as 
12applicable, if not for this subsection, shall be counted. 
13 (e) In the case of a residual interest holder in a real 
14estate mortgage investment conduit subject to Section 860E of 
15the Internal Revenue Code, the net loss in subsection (a) 
16shall be equal to: 
17  (1) the amount computed under subsection (a), without 
18 regard to this subsection (e), or if that amount is 
19 positive, zero; 
20  (2) minus an amount equal to the amount computed under 
21 subsection (a), without regard to this subsection (e), 
22 minus the amount that would be computed under subsection 
23 (a) if the taxpayer's federal taxable income were computed 
24 without regard to Section 860E of the Internal Revenue 
25 Code and without regard to this subsection (e). 
26 The modification in this subsection (e) is exempt from the 
 
 
10300HB4951sam002- 937 -LRB103 38094 HLH 74177 a


1provisions of Section 250. 
2(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)

3
ARTICLE 110.


4 Section 110-5. The Use Tax Act is amended by changing 
5Section 9 as follows:

6 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
7 Sec. 9. Except as to motor vehicles, watercraft, aircraft, 
8and trailers that are required to be registered with an agency 
9of this State, each retailer required or authorized to collect 
10the tax imposed by this Act shall pay to the Department the 
11amount of such tax (except as otherwise provided) at the time 
12when he is required to file his return for the period during 
13which such tax was collected, less a discount of 2.1% prior to 
14January 1, 1990, and 1.75% on and after January 1, 1990, or $5 
15per calendar year, whichever is greater, which is allowed to 
16reimburse the retailer for expenses incurred in collecting the 
17tax, keeping records, preparing and filing returns, remitting 
18the tax and supplying data to the Department on request. 
19Beginning with returns due on or after January 1, 2025, the 
20discount allowed in this Section, the Retailers' Occupation 
21Tax Act, the Service Occupation Tax Act, and the Service Use 
22Tax Act, including any local tax administered by the 
23Department and reported on the same return, shall not exceed 
 
 
10300HB4951sam002- 938 -LRB103 38094 HLH 74177 a


1$1,000 per month in the aggregate for returns other than 
2transaction returns filed during the month. When determining 
3the discount allowed under this Section, retailers shall 
4include the amount of tax that would have been due at the 6.25% 
5rate but for the 1.25% rate imposed on sales tax holiday items 
6under Public Act 102-700. The discount under this Section is 
7not allowed for the 1.25% portion of taxes paid on aviation 
8fuel that is subject to the revenue use requirements of 49 
9U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the 
10discount allowed under this Section, retailers shall include 
11the amount of tax that would have been due at the 1% rate but 
12for the 0% rate imposed under Public Act 102-700. In the case 
13of retailers who report and pay the tax on a transaction by 
14transaction basis, as provided in this Section, such discount 
15shall be taken with each such tax remittance instead of when 
16such retailer files his periodic return, but, beginning with 
17returns due on or after January 1, 2025, the discount allowed 
18under this Section and the Retailers' Occupation Tax Act, 
19including any local tax administered by the Department and 
20reported on the same transaction return, shall not exceed 
21$1,000 per month for all transaction returns filed during the 
22month. The discount allowed under this Section is allowed only 
23for returns that are filed in the manner required by this Act. 
24The Department may disallow the discount for retailers whose 
25certificate of registration is revoked at the time the return 
26is filed, but only if the Department's decision to revoke the 
 
 
10300HB4951sam002- 939 -LRB103 38094 HLH 74177 a


1certificate of registration has become final. A retailer need 
2not remit that part of any tax collected by him to the extent 
3that he is required to remit and does remit the tax imposed by 
4the Retailers' Occupation Tax Act, with respect to the sale of 
5the same property.
6 Where such tangible personal property is sold under a 
7conditional sales contract, or under any other form of sale 
8wherein the payment of the principal sum, or a part thereof, is 
9extended beyond the close of the period for which the return is 
10filed, the retailer, in collecting the tax (except as to motor 
11vehicles, watercraft, aircraft, and trailers that are required 
12to be registered with an agency of this State), may collect for 
13each tax return period, only the tax applicable to that part of 
14the selling price actually received during such tax return 
15period.
16 Except as provided in this Section, on or before the 
17twentieth day of each calendar month, such retailer shall file 
18a return for the preceding calendar month. Such return shall 
19be filed on forms prescribed by the Department and shall 
20furnish such information as the Department may reasonably 
21require. The return shall include the gross receipts on food 
22for human consumption that is to be consumed off the premises 
23where it is sold (other than alcoholic beverages, food 
24consisting of or infused with adult use cannabis, soft drinks, 
25and food that has been prepared for immediate consumption) 
26which were received during the preceding calendar month, 
 
 
10300HB4951sam002- 940 -LRB103 38094 HLH 74177 a


1quarter, or year, as appropriate, and upon which tax would 
2have been due but for the 0% rate imposed under Public Act 
3102-700. The return shall also include the amount of tax that 
4would have been due on food for human consumption that is to be 
5consumed off the premises where it is sold (other than 
6alcoholic beverages, food consisting of or infused with adult 
7use cannabis, soft drinks, and food that has been prepared for 
8immediate consumption) but for the 0% rate imposed under 
9Public Act 102-700.
10 On and after January 1, 2018, except for returns required 
11to be filed prior to January 1, 2023 for motor vehicles, 
12watercraft, aircraft, and trailers that are required to be 
13registered with an agency of this State, with respect to 
14retailers whose annual gross receipts average $20,000 or more, 
15all returns required to be filed pursuant to this Act shall be 
16filed electronically. On and after January 1, 2023, with 
17respect to retailers whose annual gross receipts average 
18$20,000 or more, all returns required to be filed pursuant to 
19this Act, including, but not limited to, returns for motor 
20vehicles, watercraft, aircraft, and trailers that are required 
21to be registered with an agency of this State, shall be filed 
22electronically. Retailers who demonstrate that they do not 
23have access to the Internet or demonstrate hardship in filing 
24electronically may petition the Department to waive the 
25electronic filing requirement.
26 The Department may require returns to be filed on a 
 
 
10300HB4951sam002- 941 -LRB103 38094 HLH 74177 a


1quarterly basis. If so required, a return for each calendar 
2quarter shall be filed on or before the twentieth day of the 
3calendar month following the end of such calendar quarter. The 
4taxpayer shall also file a return with the Department for each 
5of the first two months of each calendar quarter, on or before 
6the twentieth day of the following calendar month, stating:
7  1. The name of the seller;
8  2. The address of the principal place of business from 
9 which he engages in the business of selling tangible 
10 personal property at retail in this State;
11  3. The total amount of taxable receipts received by 
12 him during the preceding calendar month from sales of 
13 tangible personal property by him during such preceding 
14 calendar month, including receipts from charge and time 
15 sales, but less all deductions allowed by law;
16  4. The amount of credit provided in Section 2d of this 
17 Act;
18  5. The amount of tax due;
19  5-5. The signature of the taxpayer; and
20  6. Such other reasonable information as the Department 
21 may require.
22 Each retailer required or authorized to collect the tax 
23imposed by this Act on aviation fuel sold at retail in this 
24State during the preceding calendar month shall, instead of 
25reporting and paying tax on aviation fuel as otherwise 
26required by this Section, report and pay such tax on a separate 
 
 
10300HB4951sam002- 942 -LRB103 38094 HLH 74177 a


1aviation fuel tax return. The requirements related to the 
2return shall be as otherwise provided in this Section. 
3Notwithstanding any other provisions of this Act to the 
4contrary, retailers collecting tax on aviation fuel shall file 
5all aviation fuel tax returns and shall make all aviation fuel 
6tax payments by electronic means in the manner and form 
7required by the Department. For purposes of this Section, 
8"aviation fuel" means jet fuel and aviation gasoline. 
9 If a taxpayer fails to sign a return within 30 days after 
10the proper notice and demand for signature by the Department, 
11the return shall be considered valid and any amount shown to be 
12due on the return shall be deemed assessed.
13 Notwithstanding any other provision of this Act to the 
14contrary, retailers subject to tax on cannabis shall file all 
15cannabis tax returns and shall make all cannabis tax payments 
16by electronic means in the manner and form required by the 
17Department.
18 Beginning October 1, 1993, a taxpayer who has an average 
19monthly tax liability of $150,000 or more shall make all 
20payments required by rules of the Department by electronic 
21funds transfer. Beginning October 1, 1994, a taxpayer who has 
22an average monthly tax liability of $100,000 or more shall 
23make all payments required by rules of the Department by 
24electronic funds transfer. Beginning October 1, 1995, a 
25taxpayer who has an average monthly tax liability of $50,000 
26or more shall make all payments required by rules of the 
 
 
10300HB4951sam002- 943 -LRB103 38094 HLH 74177 a


1Department by electronic funds transfer. Beginning October 1, 
22000, a taxpayer who has an annual tax liability of $200,000 or 
3more shall make all payments required by rules of the 
4Department by electronic funds transfer. The term "annual tax 
5liability" shall be the sum of the taxpayer's liabilities 
6under this Act, and under all other State and local occupation 
7and use tax laws administered by the Department, for the 
8immediately preceding calendar year. The term "average monthly 
9tax liability" means the sum of the taxpayer's liabilities 
10under this Act, and under all other State and local occupation 
11and use tax laws administered by the Department, for the 
12immediately preceding calendar year divided by 12. Beginning 
13on October 1, 2002, a taxpayer who has a tax liability in the 
14amount set forth in subsection (b) of Section 2505-210 of the 
15Department of Revenue Law shall make all payments required by 
16rules of the Department by electronic funds transfer.
17 Before August 1 of each year beginning in 1993, the 
18Department shall notify all taxpayers required to make 
19payments by electronic funds transfer. All taxpayers required 
20to make payments by electronic funds transfer shall make those 
21payments for a minimum of one year beginning on October 1.
22 Any taxpayer not required to make payments by electronic 
23funds transfer may make payments by electronic funds transfer 
24with the permission of the Department.
25 All taxpayers required to make payment by electronic funds 
26transfer and any taxpayers authorized to voluntarily make 
 
 
10300HB4951sam002- 944 -LRB103 38094 HLH 74177 a


1payments by electronic funds transfer shall make those 
2payments in the manner authorized by the Department.
3 The Department shall adopt such rules as are necessary to 
4effectuate a program of electronic funds transfer and the 
5requirements of this Section.
6 Before October 1, 2000, if the taxpayer's average monthly 
7tax liability to the Department under this Act, the Retailers' 
8Occupation Tax Act, the Service Occupation Tax Act, the 
9Service Use Tax Act was $10,000 or more during the preceding 4 
10complete calendar quarters, he shall file a return with the 
11Department each month by the 20th day of the month next 
12following the month during which such tax liability is 
13incurred and shall make payments to the Department on or 
14before the 7th, 15th, 22nd and last day of the month during 
15which such liability is incurred. On and after October 1, 
162000, if the taxpayer's average monthly tax liability to the 
17Department under this Act, the Retailers' Occupation Tax Act, 
18the Service Occupation Tax Act, and the Service Use Tax Act was 
19$20,000 or more during the preceding 4 complete calendar 
20quarters, he shall file a return with the Department each 
21month by the 20th day of the month next following the month 
22during which such tax liability is incurred and shall make 
23payment to the Department on or before the 7th, 15th, 22nd and 
24last day of the month during which such liability is incurred. 
25If the month during which such tax liability is incurred began 
26prior to January 1, 1985, each payment shall be in an amount 
 
 
10300HB4951sam002- 945 -LRB103 38094 HLH 74177 a


1equal to 1/4 of the taxpayer's actual liability for the month 
2or an amount set by the Department not to exceed 1/4 of the 
3average monthly liability of the taxpayer to the Department 
4for the preceding 4 complete calendar quarters (excluding the 
5month of highest liability and the month of lowest liability 
6in such 4 quarter period). If the month during which such tax 
7liability is incurred begins on or after January 1, 1985, and 
8prior to January 1, 1987, each payment shall be in an amount 
9equal to 22.5% of the taxpayer's actual liability for the 
10month or 27.5% of the taxpayer's liability for the same 
11calendar month of the preceding year. If the month during 
12which such tax liability is incurred begins on or after 
13January 1, 1987, and prior to January 1, 1988, each payment 
14shall be in an amount equal to 22.5% of the taxpayer's actual 
15liability for the month or 26.25% of the taxpayer's liability 
16for the same calendar month of the preceding year. If the month 
17during which such tax liability is incurred begins on or after 
18January 1, 1988, and prior to January 1, 1989, or begins on or 
19after January 1, 1996, each payment shall be in an amount equal 
20to 22.5% of the taxpayer's actual liability for the month or 
2125% of the taxpayer's liability for the same calendar month of 
22the preceding year. If the month during which such tax 
23liability is incurred begins on or after January 1, 1989, and 
24prior to January 1, 1996, each payment shall be in an amount 
25equal to 22.5% of the taxpayer's actual liability for the 
26month or 25% of the taxpayer's liability for the same calendar 
 
 
10300HB4951sam002- 946 -LRB103 38094 HLH 74177 a


1month of the preceding year or 100% of the taxpayer's actual 
2liability for the quarter monthly reporting period. The amount 
3of such quarter monthly payments shall be credited against the 
4final tax liability of the taxpayer's return for that month. 
5Before October 1, 2000, once applicable, the requirement of 
6the making of quarter monthly payments to the Department shall 
7continue until such taxpayer's average monthly liability to 
8the Department during the preceding 4 complete calendar 
9quarters (excluding the month of highest liability and the 
10month of lowest liability) is less than $9,000, or until such 
11taxpayer's average monthly liability to the Department as 
12computed for each calendar quarter of the 4 preceding complete 
13calendar quarter period is less than $10,000. However, if a 
14taxpayer can show the Department that a substantial change in 
15the taxpayer's business has occurred which causes the taxpayer 
16to anticipate that his average monthly tax liability for the 
17reasonably foreseeable future will fall below the $10,000 
18threshold stated above, then such taxpayer may petition the 
19Department for change in such taxpayer's reporting status. On 
20and after October 1, 2000, once applicable, the requirement of 
21the making of quarter monthly payments to the Department shall 
22continue until such taxpayer's average monthly liability to 
23the Department during the preceding 4 complete calendar 
24quarters (excluding the month of highest liability and the 
25month of lowest liability) is less than $19,000 or until such 
26taxpayer's average monthly liability to the Department as 
 
 
10300HB4951sam002- 947 -LRB103 38094 HLH 74177 a


1computed for each calendar quarter of the 4 preceding complete 
2calendar quarter period is less than $20,000. However, if a 
3taxpayer can show the Department that a substantial change in 
4the taxpayer's business has occurred which causes the taxpayer 
5to anticipate that his average monthly tax liability for the 
6reasonably foreseeable future will fall below the $20,000 
7threshold stated above, then such taxpayer may petition the 
8Department for a change in such taxpayer's reporting status. 
9The Department shall change such taxpayer's reporting status 
10unless it finds that such change is seasonal in nature and not 
11likely to be long term. Quarter monthly payment status shall 
12be determined under this paragraph as if the rate reduction to 
131.25% in Public Act 102-700 on sales tax holiday items had not 
14occurred. For quarter monthly payments due on or after July 1, 
152023 and through June 30, 2024, "25% of the taxpayer's 
16liability for the same calendar month of the preceding year" 
17shall be determined as if the rate reduction to 1.25% in Public 
18Act 102-700 on sales tax holiday items had not occurred. 
19Quarter monthly payment status shall be determined under this 
20paragraph as if the rate reduction to 0% in Public Act 102-700 
21on food for human consumption that is to be consumed off the 
22premises where it is sold (other than alcoholic beverages, 
23food consisting of or infused with adult use cannabis, soft 
24drinks, and food that has been prepared for immediate 
25consumption) had not occurred. For quarter monthly payments 
26due under this paragraph on or after July 1, 2023 and through 
 
 
10300HB4951sam002- 948 -LRB103 38094 HLH 74177 a


1June 30, 2024, "25% of the taxpayer's liability for the same 
2calendar month of the preceding year" shall be determined as 
3if the rate reduction to 0% in Public Act 102-700 had not 
4occurred. If any such quarter monthly payment is not paid at 
5the time or in the amount required by this Section, then the 
6taxpayer shall be liable for penalties and interest on the 
7difference between the minimum amount due and the amount of 
8such quarter monthly payment actually and timely paid, except 
9insofar as the taxpayer has previously made payments for that 
10month to the Department in excess of the minimum payments 
11previously due as provided in this Section. The Department 
12shall make reasonable rules and regulations to govern the 
13quarter monthly payment amount and quarter monthly payment 
14dates for taxpayers who file on other than a calendar monthly 
15basis.
16 If any such payment provided for in this Section exceeds 
17the taxpayer's liabilities under this Act, the Retailers' 
18Occupation Tax Act, the Service Occupation Tax Act and the 
19Service Use Tax Act, as shown by an original monthly return, 
20the Department shall issue to the taxpayer a credit memorandum 
21no later than 30 days after the date of payment, which 
22memorandum may be submitted by the taxpayer to the Department 
23in payment of tax liability subsequently to be remitted by the 
24taxpayer to the Department or be assigned by the taxpayer to a 
25similar taxpayer under this Act, the Retailers' Occupation Tax 
26Act, the Service Occupation Tax Act or the Service Use Tax Act, 
 
 
10300HB4951sam002- 949 -LRB103 38094 HLH 74177 a


1in accordance with reasonable rules and regulations to be 
2prescribed by the Department, except that if such excess 
3payment is shown on an original monthly return and is made 
4after December 31, 1986, no credit memorandum shall be issued, 
5unless requested by the taxpayer. If no such request is made, 
6the taxpayer may credit such excess payment against tax 
7liability subsequently to be remitted by the taxpayer to the 
8Department under this Act, the Retailers' Occupation Tax Act, 
9the Service Occupation Tax Act or the Service Use Tax Act, in 
10accordance with reasonable rules and regulations prescribed by 
11the Department. If the Department subsequently determines that 
12all or any part of the credit taken was not actually due to the 
13taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall 
14be reduced, if necessary, to reflect by 2.1% or 1.75% of the 
15difference between the credit taken and that actually due, and 
16the taxpayer shall be liable for penalties and interest on 
17such difference.
18 If the retailer is otherwise required to file a monthly 
19return and if the retailer's average monthly tax liability to 
20the Department does not exceed $200, the Department may 
21authorize his returns to be filed on a quarter annual basis, 
22with the return for January, February, and March of a given 
23year being due by April 20 of such year; with the return for 
24April, May and June of a given year being due by July 20 of 
25such year; with the return for July, August and September of a 
26given year being due by October 20 of such year, and with the 
 
 
10300HB4951sam002- 950 -LRB103 38094 HLH 74177 a


1return for October, November and December of a given year 
2being due by January 20 of the following year.
3 If the retailer is otherwise required to file a monthly or 
4quarterly return and if the retailer's average monthly tax 
5liability to the Department does not exceed $50, the 
6Department may authorize his returns to be filed on an annual 
7basis, with the return for a given year being due by January 20 
8of the following year.
9 Such quarter annual and annual returns, as to form and 
10substance, shall be subject to the same requirements as 
11monthly returns.
12 Notwithstanding any other provision in this Act concerning 
13the time within which a retailer may file his return, in the 
14case of any retailer who ceases to engage in a kind of business 
15which makes him responsible for filing returns under this Act, 
16such retailer shall file a final return under this Act with the 
17Department not more than one month after discontinuing such 
18business.
19 In addition, with respect to motor vehicles, watercraft, 
20aircraft, and trailers that are required to be registered with 
21an agency of this State, except as otherwise provided in this 
22Section, every retailer selling this kind of tangible personal 
23property shall file, with the Department, upon a form to be 
24prescribed and supplied by the Department, a separate return 
25for each such item of tangible personal property which the 
26retailer sells, except that if, in the same transaction, (i) a 
 
 
10300HB4951sam002- 951 -LRB103 38094 HLH 74177 a


1retailer of aircraft, watercraft, motor vehicles or trailers 
2transfers more than one aircraft, watercraft, motor vehicle or 
3trailer to another aircraft, watercraft, motor vehicle or 
4trailer retailer for the purpose of resale or (ii) a retailer 
5of aircraft, watercraft, motor vehicles, or trailers transfers 
6more than one aircraft, watercraft, motor vehicle, or trailer 
7to a purchaser for use as a qualifying rolling stock as 
8provided in Section 3-55 of this Act, then that seller may 
9report the transfer of all the aircraft, watercraft, motor 
10vehicles or trailers involved in that transaction to the 
11Department on the same uniform invoice-transaction reporting 
12return form. For purposes of this Section, "watercraft" means 
13a Class 2, Class 3, or Class 4 watercraft as defined in Section 
143-2 of the Boat Registration and Safety Act, a personal 
15watercraft, or any boat equipped with an inboard motor.
16 In addition, with respect to motor vehicles, watercraft, 
17aircraft, and trailers that are required to be registered with 
18an agency of this State, every person who is engaged in the 
19business of leasing or renting such items and who, in 
20connection with such business, sells any such item to a 
21retailer for the purpose of resale is, notwithstanding any 
22other provision of this Section to the contrary, authorized to 
23meet the return-filing requirement of this Act by reporting 
24the transfer of all the aircraft, watercraft, motor vehicles, 
25or trailers transferred for resale during a month to the 
26Department on the same uniform invoice-transaction reporting 
 
 
10300HB4951sam002- 952 -LRB103 38094 HLH 74177 a


1return form on or before the 20th of the month following the 
2month in which the transfer takes place. Notwithstanding any 
3other provision of this Act to the contrary, all returns filed 
4under this paragraph must be filed by electronic means in the 
5manner and form as required by the Department. 
6 The transaction reporting return in the case of motor 
7vehicles or trailers that are required to be registered with 
8an agency of this State, shall be the same document as the 
9Uniform Invoice referred to in Section 5-402 of the Illinois 
10Vehicle Code and must show the name and address of the seller; 
11the name and address of the purchaser; the amount of the 
12selling price including the amount allowed by the retailer for 
13traded-in property, if any; the amount allowed by the retailer 
14for the traded-in tangible personal property, if any, to the 
15extent to which Section 2 of this Act allows an exemption for 
16the value of traded-in property; the balance payable after 
17deducting such trade-in allowance from the total selling 
18price; the amount of tax due from the retailer with respect to 
19such transaction; the amount of tax collected from the 
20purchaser by the retailer on such transaction (or satisfactory 
21evidence that such tax is not due in that particular instance, 
22if that is claimed to be the fact); the place and date of the 
23sale; a sufficient identification of the property sold; such 
24other information as is required in Section 5-402 of the 
25Illinois Vehicle Code, and such other information as the 
26Department may reasonably require.
 
 
10300HB4951sam002- 953 -LRB103 38094 HLH 74177 a


1 The transaction reporting return in the case of watercraft 
2and aircraft must show the name and address of the seller; the 
3name and address of the purchaser; the amount of the selling 
4price including the amount allowed by the retailer for 
5traded-in property, if any; the amount allowed by the retailer 
6for the traded-in tangible personal property, if any, to the 
7extent to which Section 2 of this Act allows an exemption for 
8the value of traded-in property; the balance payable after 
9deducting such trade-in allowance from the total selling 
10price; the amount of tax due from the retailer with respect to 
11such transaction; the amount of tax collected from the 
12purchaser by the retailer on such transaction (or satisfactory 
13evidence that such tax is not due in that particular instance, 
14if that is claimed to be the fact); the place and date of the 
15sale, a sufficient identification of the property sold, and 
16such other information as the Department may reasonably 
17require.
18 Such transaction reporting return shall be filed not later 
19than 20 days after the date of delivery of the item that is 
20being sold, but may be filed by the retailer at any time sooner 
21than that if he chooses to do so. The transaction reporting 
22return and tax remittance or proof of exemption from the tax 
23that is imposed by this Act may be transmitted to the 
24Department by way of the State agency with which, or State 
25officer with whom, the tangible personal property must be 
26titled or registered (if titling or registration is required) 
 
 
10300HB4951sam002- 954 -LRB103 38094 HLH 74177 a


1if the Department and such agency or State officer determine 
2that this procedure will expedite the processing of 
3applications for title or registration.
4 With each such transaction reporting return, the retailer 
5shall remit the proper amount of tax due (or shall submit 
6satisfactory evidence that the sale is not taxable if that is 
7the case), to the Department or its agents, whereupon the 
8Department shall issue, in the purchaser's name, a tax receipt 
9(or a certificate of exemption if the Department is satisfied 
10that the particular sale is tax exempt) which such purchaser 
11may submit to the agency with which, or State officer with 
12whom, he must title or register the tangible personal property 
13that is involved (if titling or registration is required) in 
14support of such purchaser's application for an Illinois 
15certificate or other evidence of title or registration to such 
16tangible personal property.
17 No retailer's failure or refusal to remit tax under this 
18Act precludes a user, who has paid the proper tax to the 
19retailer, from obtaining his certificate of title or other 
20evidence of title or registration (if titling or registration 
21is required) upon satisfying the Department that such user has 
22paid the proper tax (if tax is due) to the retailer. The 
23Department shall adopt appropriate rules to carry out the 
24mandate of this paragraph.
25 If the user who would otherwise pay tax to the retailer 
26wants the transaction reporting return filed and the payment 
 
 
10300HB4951sam002- 955 -LRB103 38094 HLH 74177 a


1of tax or proof of exemption made to the Department before the 
2retailer is willing to take these actions and such user has not 
3paid the tax to the retailer, such user may certify to the fact 
4of such delay by the retailer, and may (upon the Department 
5being satisfied of the truth of such certification) transmit 
6the information required by the transaction reporting return 
7and the remittance for tax or proof of exemption directly to 
8the Department and obtain his tax receipt or exemption 
9determination, in which event the transaction reporting return 
10and tax remittance (if a tax payment was required) shall be 
11credited by the Department to the proper retailer's account 
12with the Department, but without the vendor's 2.1% or 1.75% 
13discount provided for in this Section being allowed. When the 
14user pays the tax directly to the Department, he shall pay the 
15tax in the same amount and in the same form in which it would 
16be remitted if the tax had been remitted to the Department by 
17the retailer.
18 Where a retailer collects the tax with respect to the 
19selling price of tangible personal property which he sells and 
20the purchaser thereafter returns such tangible personal 
21property and the retailer refunds the selling price thereof to 
22the purchaser, such retailer shall also refund, to the 
23purchaser, the tax so collected from the purchaser. When 
24filing his return for the period in which he refunds such tax 
25to the purchaser, the retailer may deduct the amount of the tax 
26so refunded by him to the purchaser from any other use tax 
 
 
10300HB4951sam002- 956 -LRB103 38094 HLH 74177 a


1which such retailer may be required to pay or remit to the 
2Department, as shown by such return, if the amount of the tax 
3to be deducted was previously remitted to the Department by 
4such retailer. If the retailer has not previously remitted the 
5amount of such tax to the Department, he is entitled to no 
6deduction under this Act upon refunding such tax to the 
7purchaser.
8 Any retailer filing a return under this Section shall also 
9include (for the purpose of paying tax thereon) the total tax 
10covered by such return upon the selling price of tangible 
11personal property purchased by him at retail from a retailer, 
12but as to which the tax imposed by this Act was not collected 
13from the retailer filing such return, and such retailer shall 
14remit the amount of such tax to the Department when filing such 
15return.
16 If experience indicates such action to be practicable, the 
17Department may prescribe and furnish a combination or joint 
18return which will enable retailers, who are required to file 
19returns hereunder and also under the Retailers' Occupation Tax 
20Act, to furnish all the return information required by both 
21Acts on the one form.
22 Where the retailer has more than one business registered 
23with the Department under separate registration under this 
24Act, such retailer may not file each return that is due as a 
25single return covering all such registered businesses, but 
26shall file separate returns for each such registered business.
 
 
10300HB4951sam002- 957 -LRB103 38094 HLH 74177 a


1 Beginning January 1, 1990, each month the Department shall 
2pay into the State and Local Sales Tax Reform Fund, a special 
3fund in the State Treasury which is hereby created, the net 
4revenue realized for the preceding month from the 1% tax 
5imposed under this Act.
6 Beginning January 1, 1990, each month the Department shall 
7pay into the County and Mass Transit District Fund 4% of the 
8net revenue realized for the preceding month from the 6.25% 
9general rate on the selling price of tangible personal 
10property which is purchased outside Illinois at retail from a 
11retailer and which is titled or registered by an agency of this 
12State's government.
13 Beginning January 1, 1990, each month the Department shall 
14pay into the State and Local Sales Tax Reform Fund, a special 
15fund in the State Treasury, 20% of the net revenue realized for 
16the preceding month from the 6.25% general rate on the selling 
17price of tangible personal property, other than (i) tangible 
18personal property which is purchased outside Illinois at 
19retail from a retailer and which is titled or registered by an 
20agency of this State's government and (ii) aviation fuel sold 
21on or after December 1, 2019. This exception for aviation fuel 
22only applies for so long as the revenue use requirements of 49 
23U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
24 For aviation fuel sold on or after December 1, 2019, each 
25month the Department shall pay into the State Aviation Program 
26Fund 20% of the net revenue realized for the preceding month 
 
 
10300HB4951sam002- 958 -LRB103 38094 HLH 74177 a


1from the 6.25% general rate on the selling price of aviation 
2fuel, less an amount estimated by the Department to be 
3required for refunds of the 20% portion of the tax on aviation 
4fuel under this Act, which amount shall be deposited into the 
5Aviation Fuel Sales Tax Refund Fund. The Department shall only 
6pay moneys into the State Aviation Program Fund and the 
7Aviation Fuels Sales Tax Refund Fund under this Act for so long 
8as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
9U.S.C. 47133 are binding on the State. 
10 Beginning August 1, 2000, each month the Department shall 
11pay into the State and Local Sales Tax Reform Fund 100% of the 
12net revenue realized for the preceding month from the 1.25% 
13rate on the selling price of motor fuel and gasohol. If, in any 
14month, the tax on sales tax holiday items, as defined in 
15Section 3-6, is imposed at the rate of 1.25%, then the 
16Department shall pay 100% of the net revenue realized for that 
17month from the 1.25% rate on the selling price of sales tax 
18holiday items into the State and Local Sales Tax Reform Fund.
19 Beginning January 1, 1990, each month the Department shall 
20pay into the Local Government Tax Fund 16% of the net revenue 
21realized for the preceding month from the 6.25% general rate 
22on the selling price of tangible personal property which is 
23purchased outside Illinois at retail from a retailer and which 
24is titled or registered by an agency of this State's 
25government.
26 Beginning October 1, 2009, each month the Department shall 
 
 
10300HB4951sam002- 959 -LRB103 38094 HLH 74177 a


1pay into the Capital Projects Fund an amount that is equal to 
2an amount estimated by the Department to represent 80% of the 
3net revenue realized for the preceding month from the sale of 
4candy, grooming and hygiene products, and soft drinks that had 
5been taxed at a rate of 1% prior to September 1, 2009 but that 
6are now taxed at 6.25%. 
7 Beginning July 1, 2011, each month the Department shall 
8pay into the Clean Air Act Permit Fund 80% of the net revenue 
9realized for the preceding month from the 6.25% general rate 
10on the selling price of sorbents used in Illinois in the 
11process of sorbent injection as used to comply with the 
12Environmental Protection Act or the federal Clean Air Act, but 
13the total payment into the Clean Air Act Permit Fund under this 
14Act and the Retailers' Occupation Tax Act shall not exceed 
15$2,000,000 in any fiscal year. 
16 Beginning July 1, 2013, each month the Department shall 
17pay into the Underground Storage Tank Fund from the proceeds 
18collected under this Act, the Service Use Tax Act, the Service 
19Occupation Tax Act, and the Retailers' Occupation Tax Act an 
20amount equal to the average monthly deficit in the Underground 
21Storage Tank Fund during the prior year, as certified annually 
22by the Illinois Environmental Protection Agency, but the total 
23payment into the Underground Storage Tank Fund under this Act, 
24the Service Use Tax Act, the Service Occupation Tax Act, and 
25the Retailers' Occupation Tax Act shall not exceed $18,000,000 
26in any State fiscal year. As used in this paragraph, the 
 
 
10300HB4951sam002- 960 -LRB103 38094 HLH 74177 a


1"average monthly deficit" shall be equal to the difference 
2between the average monthly claims for payment by the fund and 
3the average monthly revenues deposited into the fund, 
4excluding payments made pursuant to this paragraph. 
5 Beginning July 1, 2015, of the remainder of the moneys 
6received by the Department under this Act, the Service Use Tax 
7Act, the Service Occupation Tax Act, and the Retailers' 
8Occupation Tax Act, each month the Department shall deposit 
9$500,000 into the State Crime Laboratory Fund. 
10 Of the remainder of the moneys received by the Department 
11pursuant to this Act, (a) 1.75% thereof shall be paid into the 
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
13and after July 1, 1989, 3.8% thereof shall be paid into the 
14Build Illinois Fund; provided, however, that if in any fiscal 
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
16may be, of the moneys received by the Department and required 
17to be paid into the Build Illinois Fund pursuant to Section 3 
18of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
19Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
20Service Occupation Tax Act, such Acts being hereinafter called 
21the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
22may be, of moneys being hereinafter called the "Tax Act 
23Amount", and (2) the amount transferred to the Build Illinois 
24Fund from the State and Local Sales Tax Reform Fund shall be 
25less than the Annual Specified Amount (as defined in Section 3 
26of the Retailers' Occupation Tax Act), an amount equal to the 
 
 
10300HB4951sam002- 961 -LRB103 38094 HLH 74177 a


1difference shall be immediately paid into the Build Illinois 
2Fund from other moneys received by the Department pursuant to 
3the Tax Acts; and further provided, that if on the last 
4business day of any month the sum of (1) the Tax Act Amount 
5required to be deposited into the Build Illinois Bond Account 
6in the Build Illinois Fund during such month and (2) the amount 
7transferred during such month to the Build Illinois Fund from 
8the State and Local Sales Tax Reform Fund shall have been less 
9than 1/12 of the Annual Specified Amount, an amount equal to 
10the difference shall be immediately paid into the Build 
11Illinois Fund from other moneys received by the Department 
12pursuant to the Tax Acts; and, further provided, that in no 
13event shall the payments required under the preceding proviso 
14result in aggregate payments into the Build Illinois Fund 
15pursuant to this clause (b) for any fiscal year in excess of 
16the greater of (i) the Tax Act Amount or (ii) the Annual 
17Specified Amount for such fiscal year; and, further provided, 
18that the amounts payable into the Build Illinois Fund under 
19this clause (b) shall be payable only until such time as the 
20aggregate amount on deposit under each trust indenture 
21securing Bonds issued and outstanding pursuant to the Build 
22Illinois Bond Act is sufficient, taking into account any 
23future investment income, to fully provide, in accordance with 
24such indenture, for the defeasance of or the payment of the 
25principal of, premium, if any, and interest on the Bonds 
26secured by such indenture and on any Bonds expected to be 
 
 
10300HB4951sam002- 962 -LRB103 38094 HLH 74177 a


1issued thereafter and all fees and costs payable with respect 
2thereto, all as certified by the Director of the Bureau of the 
3Budget (now Governor's Office of Management and Budget). If on 
4the last business day of any month in which Bonds are 
5outstanding pursuant to the Build Illinois Bond Act, the 
6aggregate of the moneys deposited in the Build Illinois Bond 
7Account in the Build Illinois Fund in such month shall be less 
8than the amount required to be transferred in such month from 
9the Build Illinois Bond Account to the Build Illinois Bond 
10Retirement and Interest Fund pursuant to Section 13 of the 
11Build Illinois Bond Act, an amount equal to such deficiency 
12shall be immediately paid from other moneys received by the 
13Department pursuant to the Tax Acts to the Build Illinois 
14Fund; provided, however, that any amounts paid to the Build 
15Illinois Fund in any fiscal year pursuant to this sentence 
16shall be deemed to constitute payments pursuant to clause (b) 
17of the preceding sentence and shall reduce the amount 
18otherwise payable for such fiscal year pursuant to clause (b) 
19of the preceding sentence. The moneys received by the 
20Department pursuant to this Act and required to be deposited 
21into the Build Illinois Fund are subject to the pledge, claim 
22and charge set forth in Section 12 of the Build Illinois Bond 
23Act.
24 Subject to payment of amounts into the Build Illinois Fund 
25as provided in the preceding paragraph or in any amendment 
26thereto hereafter enacted, the following specified monthly 
 
 
10300HB4951sam002- 963 -LRB103 38094 HLH 74177 a


1installment of the amount requested in the certificate of the 
2Chairman of the Metropolitan Pier and Exposition Authority 
3provided under Section 8.25f of the State Finance Act, but not 
4in excess of the sums designated as "Total Deposit", shall be 
5deposited in the aggregate from collections under Section 9 of 
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
79 of the Service Occupation Tax Act, and Section 3 of the 
8Retailers' Occupation Tax Act into the McCormick Place 
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993         $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000
262008126,000,000
 
 
10300HB4951sam002- 964 -LRB103 38094 HLH 74177 a


12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021300,000,000
142022300,000,000
152023300,000,000
162024 300,000,000
172025 300,000,000
182026 300,000,000
192027 375,000,000
202028 375,000,000
212029 375,000,000
222030 375,000,000
232031 375,000,000
242032 375,000,000
252033 375,000,000 
262034375,000,000
 
 
10300HB4951sam002- 965 -LRB103 38094 HLH 74177 a


       
12035375,000,000
22036450,000,000
3and  
4each fiscal year
5thereafter that bonds
6are outstanding under
7Section 13.2 of the
8Metropolitan Pier and
9Exposition Authority Act,
10but not after fiscal year 2060.
11 Beginning July 20, 1993 and in each month of each fiscal 
12year thereafter, one-eighth of the amount requested in the 
13certificate of the Chairman of the Metropolitan Pier and 
14Exposition Authority for that fiscal year, less the amount 
15deposited into the McCormick Place Expansion Project Fund by 
16the State Treasurer in the respective month under subsection 
17(g) of Section 13 of the Metropolitan Pier and Exposition 
18Authority Act, plus cumulative deficiencies in the deposits 
19required under this Section for previous months and years, 
20shall be deposited into the McCormick Place Expansion Project 
21Fund, until the full amount requested for the fiscal year, but 
22not in excess of the amount specified above as "Total 
23Deposit", has been deposited.
24 Subject to payment of amounts into the Capital Projects 
25Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
26and the McCormick Place Expansion Project Fund pursuant to the 
 
 
10300HB4951sam002- 966 -LRB103 38094 HLH 74177 a


1preceding paragraphs or in any amendments thereto hereafter 
2enacted, for aviation fuel sold on or after December 1, 2019, 
3the Department shall each month deposit into the Aviation Fuel 
4Sales Tax Refund Fund an amount estimated by the Department to 
5be required for refunds of the 80% portion of the tax on 
6aviation fuel under this Act. The Department shall only 
7deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
8under this paragraph for so long as the revenue use 
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
10binding on the State. 
11 Subject to payment of amounts into the Build Illinois Fund 
12and the McCormick Place Expansion Project Fund pursuant to the 
13preceding paragraphs or in any amendments thereto hereafter 
14enacted, beginning July 1, 1993 and ending on September 30, 
152013, the Department shall each month pay into the Illinois 
16Tax Increment Fund 0.27% of 80% of the net revenue realized for 
17the preceding month from the 6.25% general rate on the selling 
18price of tangible personal property.
19 Subject to payment of amounts into the Build Illinois 
20Fund, the McCormick Place Expansion Project Fund, the Illinois 
21Tax Increment Fund, and the Energy Infrastructure Fund 
22pursuant to the preceding paragraphs or in any amendments to 
23this Section hereafter enacted, beginning on the first day of 
24the first calendar month to occur on or after August 26, 2014 
25(the effective date of Public Act 98-1098), each month, from 
26the collections made under Section 9 of the Use Tax Act, 
 
 
10300HB4951sam002- 967 -LRB103 38094 HLH 74177 a


1Section 9 of the Service Use Tax Act, Section 9 of the Service 
2Occupation Tax Act, and Section 3 of the Retailers' Occupation 
3Tax Act, the Department shall pay into the Tax Compliance and 
4Administration Fund, to be used, subject to appropriation, to 
5fund additional auditors and compliance personnel at the 
6Department of Revenue, an amount equal to 1/12 of 5% of 80% of 
7the cash receipts collected during the preceding fiscal year 
8by the Audit Bureau of the Department under the Use Tax Act, 
9the Service Use Tax Act, the Service Occupation Tax Act, the 
10Retailers' Occupation Tax Act, and associated local occupation 
11and use taxes administered by the Department. 
12 Subject to payments of amounts into the Build Illinois 
13Fund, the McCormick Place Expansion Project Fund, the Illinois 
14Tax Increment Fund, and the Tax Compliance and Administration 
15Fund as provided in this Section, beginning on July 1, 2018 the 
16Department shall pay each month into the Downstate Public 
17Transportation Fund the moneys required to be so paid under 
18Section 2-3 of the Downstate Public Transportation Act.
19 Subject to successful execution and delivery of a 
20public-private agreement between the public agency and private 
21entity and completion of the civic build, beginning on July 1, 
222023, of the remainder of the moneys received by the 
23Department under the Use Tax Act, the Service Use Tax Act, the 
24Service Occupation Tax Act, and this Act, the Department shall 
25deposit the following specified deposits in the aggregate from 
26collections under the Use Tax Act, the Service Use Tax Act, the 
 
 
10300HB4951sam002- 968 -LRB103 38094 HLH 74177 a


1Service Occupation Tax Act, and the Retailers' Occupation Tax 
2Act, as required under Section 8.25g of the State Finance Act 
3for distribution consistent with the Public-Private 
4Partnership for Civic and Transit Infrastructure Project Act. 
5The moneys received by the Department pursuant to this Act and 
6required to be deposited into the Civic and Transit 
7Infrastructure Fund are subject to the pledge, claim, and 
8charge set forth in Section 25-55 of the Public-Private 
9Partnership for Civic and Transit Infrastructure Project Act. 
10As used in this paragraph, "civic build", "private entity", 
11"public-private agreement", and "public agency" have the 
12meanings provided in Section 25-10 of the Public-Private 
13Partnership for Civic and Transit Infrastructure Project Act. 
14  Fiscal Year............................Total Deposit 
15  2024....................................$200,000,000 
16  2025....................................$206,000,000 
17  2026....................................$212,200,000 
18  2027....................................$218,500,000 
19  2028....................................$225,100,000 
20  2029....................................$288,700,000 
21  2030....................................$298,900,000 
22  2031....................................$309,300,000 
23  2032....................................$320,100,000 
24  2033....................................$331,200,000 
25  2034....................................$341,200,000 
26  2035....................................$351,400,000 
 
 
10300HB4951sam002- 969 -LRB103 38094 HLH 74177 a


1  2036....................................$361,900,000 
2  2037....................................$372,800,000 
3  2038....................................$384,000,000 
4  2039....................................$395,500,000 
5  2040....................................$407,400,000 
6  2041....................................$419,600,000 
7  2042....................................$432,200,000 
8  2043....................................$445,100,000 
9 Beginning July 1, 2021 and until July 1, 2022, subject to 
10the payment of amounts into the State and Local Sales Tax 
11Reform Fund, the Build Illinois Fund, the McCormick Place 
12Expansion Project Fund, the Illinois Tax Increment Fund, and 
13the Tax Compliance and Administration Fund as provided in this 
14Section, the Department shall pay each month into the Road 
15Fund the amount estimated to represent 16% of the net revenue 
16realized from the taxes imposed on motor fuel and gasohol. 
17Beginning July 1, 2022 and until July 1, 2023, subject to the 
18payment of amounts into the State and Local Sales Tax Reform 
19Fund, the Build Illinois Fund, the McCormick Place Expansion 
20Project Fund, the Illinois Tax Increment Fund, and the Tax 
21Compliance and Administration Fund as provided in this 
22Section, the Department shall pay each month into the Road 
23Fund the amount estimated to represent 32% of the net revenue 
24realized from the taxes imposed on motor fuel and gasohol. 
25Beginning July 1, 2023 and until July 1, 2024, subject to the 
26payment of amounts into the State and Local Sales Tax Reform 
 
 
10300HB4951sam002- 970 -LRB103 38094 HLH 74177 a


1Fund, the Build Illinois Fund, the McCormick Place Expansion 
2Project Fund, the Illinois Tax Increment Fund, and the Tax 
3Compliance and Administration Fund as provided in this 
4Section, the Department shall pay each month into the Road 
5Fund the amount estimated to represent 48% of the net revenue 
6realized from the taxes imposed on motor fuel and gasohol. 
7Beginning July 1, 2024 and until July 1, 2025, subject to the 
8payment of amounts into the State and Local Sales Tax Reform 
9Fund, the Build Illinois Fund, the McCormick Place Expansion 
10Project Fund, the Illinois Tax Increment Fund, and the Tax 
11Compliance and Administration Fund as provided in this 
12Section, the Department shall pay each month into the Road 
13Fund the amount estimated to represent 64% of the net revenue 
14realized from the taxes imposed on motor fuel and gasohol. 
15Beginning on July 1, 2025, subject to the payment of amounts 
16into the State and Local Sales Tax Reform Fund, the Build 
17Illinois Fund, the McCormick Place Expansion Project Fund, the 
18Illinois Tax Increment Fund, and the Tax Compliance and 
19Administration Fund as provided in this Section, the 
20Department shall pay each month into the Road Fund the amount 
21estimated to represent 80% of the net revenue realized from 
22the taxes imposed on motor fuel and gasohol. As used in this 
23paragraph "motor fuel" has the meaning given to that term in 
24Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
25meaning given to that term in Section 3-40 of this Act.
26 Of the remainder of the moneys received by the Department 
 
 
10300HB4951sam002- 971 -LRB103 38094 HLH 74177 a


1pursuant to this Act, 75% thereof shall be paid into the State 
2Treasury and 25% shall be reserved in a special account and 
3used only for the transfer to the Common School Fund as part of 
4the monthly transfer from the General Revenue Fund in 
5accordance with Section 8a of the State Finance Act.
6 As soon as possible after the first day of each month, upon 
7certification of the Department of Revenue, the Comptroller 
8shall order transferred and the Treasurer shall transfer from 
9the General Revenue Fund to the Motor Fuel Tax Fund an amount 
10equal to 1.7% of 80% of the net revenue realized under this Act 
11for the second preceding month. Beginning April 1, 2000, this 
12transfer is no longer required and shall not be made.
13 Net revenue realized for a month shall be the revenue 
14collected by the State pursuant to this Act, less the amount 
15paid out during that month as refunds to taxpayers for 
16overpayment of liability.
17 For greater simplicity of administration, manufacturers, 
18importers and wholesalers whose products are sold at retail in 
19Illinois by numerous retailers, and who wish to do so, may 
20assume the responsibility for accounting and paying to the 
21Department all tax accruing under this Act with respect to 
22such sales, if the retailers who are affected do not make 
23written objection to the Department to this arrangement.
24(Source: P.A. 102-700, Article 60, Section 60-15, eff. 
254-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; 
26102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. 
 
 
10300HB4951sam002- 972 -LRB103 38094 HLH 74177 a


17-28-23.)

2 Section 110-10. The Service Use Tax Act is amended by 
3changing Section 9 as follows:

4 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
5 Sec. 9. Each serviceman required or authorized to collect 
6the tax herein imposed shall pay to the Department the amount 
7of such tax (except as otherwise provided) at the time when he 
8is required to file his return for the period during which such 
9tax was collected, less a discount of 2.1% prior to January 1, 
101990 and 1.75% on and after January 1, 1990, or $5 per calendar 
11year, whichever is greater, which is allowed to reimburse the 
12serviceman for expenses incurred in collecting the tax, 
13keeping records, preparing and filing returns, remitting the 
14tax and supplying data to the Department on request. Beginning 
15with returns due on or after January 1, 2025, the vendor's 
16discount allowed in this Section, the Retailers' Occupation 
17Tax Act, the Service Occupation Tax Act, and the Use Tax Act, 
18including any local tax administered by the Department and 
19reported on the same return, shall not exceed $1,000 per month 
20in the aggregate. When determining the discount allowed under 
21this Section, servicemen shall include the amount of tax that 
22would have been due at the 1% rate but for the 0% rate imposed 
23under this amendatory Act of the 102nd General Assembly. The 
24discount under this Section is not allowed for the 1.25% 
 
 
10300HB4951sam002- 973 -LRB103 38094 HLH 74177 a


1portion of taxes paid on aviation fuel that is subject to the 
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
347133. The discount allowed under this Section is allowed only 
4for returns that are filed in the manner required by this Act. 
5The Department may disallow the discount for servicemen whose 
6certificate of registration is revoked at the time the return 
7is filed, but only if the Department's decision to revoke the 
8certificate of registration has become final. A serviceman 
9need not remit that part of any tax collected by him to the 
10extent that he is required to pay and does pay the tax imposed 
11by the Service Occupation Tax Act with respect to his sale of 
12service involving the incidental transfer by him of the same 
13property.
14 Except as provided hereinafter in this Section, on or 
15before the twentieth day of each calendar month, such 
16serviceman shall file a return for the preceding calendar 
17month in accordance with reasonable Rules and Regulations to 
18be promulgated by the Department. Such return shall be filed 
19on a form prescribed by the Department and shall contain such 
20information as the Department may reasonably require. The 
21return shall include the gross receipts which were received 
22during the preceding calendar month or quarter on the 
23following items upon which tax would have been due but for the 
240% rate imposed under this amendatory Act of the 102nd General 
25Assembly: (i) food for human consumption that is to be 
26consumed off the premises where it is sold (other than 
 
 
10300HB4951sam002- 974 -LRB103 38094 HLH 74177 a


1alcoholic beverages, food consisting of or infused with adult 
2use cannabis, soft drinks, and food that has been prepared for 
3immediate consumption); and (ii) food prepared for immediate 
4consumption and transferred incident to a sale of service 
5subject to this Act or the Service Occupation Tax Act by an 
6entity licensed under the Hospital Licensing Act, the Nursing 
7Home Care Act, the Assisted Living and Shared Housing Act, the 
8ID/DD Community Care Act, the MC/DD Act, the Specialized 
9Mental Health Rehabilitation Act of 2013, or the Child Care 
10Act of 1969, or an entity that holds a permit issued pursuant 
11to the Life Care Facilities Act. The return shall also include 
12the amount of tax that would have been due on the items listed 
13in the previous sentence but for the 0% rate imposed under this 
14amendatory Act of the 102nd General Assembly. 
15 On and after January 1, 2018, with respect to servicemen 
16whose annual gross receipts average $20,000 or more, all 
17returns required to be filed pursuant to this Act shall be 
18filed electronically. Servicemen who demonstrate that they do 
19not have access to the Internet or demonstrate hardship in 
20filing electronically may petition the Department to waive the 
21electronic filing requirement. 
22 The Department may require returns to be filed on a 
23quarterly basis. If so required, a return for each calendar 
24quarter shall be filed on or before the twentieth day of the 
25calendar month following the end of such calendar quarter. The 
26taxpayer shall also file a return with the Department for each 
 
 
10300HB4951sam002- 975 -LRB103 38094 HLH 74177 a


1of the first two months of each calendar quarter, on or before 
2the twentieth day of the following calendar month, stating:
3  1. The name of the seller;
4  2. The address of the principal place of business from 
5 which he engages in business as a serviceman in this 
6 State;
7  3. The total amount of taxable receipts received by 
8 him during the preceding calendar month, including 
9 receipts from charge and time sales, but less all 
10 deductions allowed by law;
11  4. The amount of credit provided in Section 2d of this 
12 Act;
13  5. The amount of tax due;
14  5-5. The signature of the taxpayer; and
15  6. Such other reasonable information as the Department 
16 may require.
17 Each serviceman required or authorized to collect the tax 
18imposed by this Act on aviation fuel transferred as an 
19incident of a sale of service in this State during the 
20preceding calendar month shall, instead of reporting and 
21paying tax on aviation fuel as otherwise required by this 
22Section, report and pay such tax on a separate aviation fuel 
23tax return. The requirements related to the return shall be as 
24otherwise provided in this Section. Notwithstanding any other 
25provisions of this Act to the contrary, servicemen collecting 
26tax on aviation fuel shall file all aviation fuel tax returns 
 
 
10300HB4951sam002- 976 -LRB103 38094 HLH 74177 a


1and shall make all aviation fuel tax payments by electronic 
2means in the manner and form required by the Department. For 
3purposes of this Section, "aviation fuel" means jet fuel and 
4aviation gasoline. 
5 If a taxpayer fails to sign a return within 30 days after 
6the proper notice and demand for signature by the Department, 
7the return shall be considered valid and any amount shown to be 
8due on the return shall be deemed assessed.
9 Notwithstanding any other provision of this Act to the 
10contrary, servicemen subject to tax on cannabis shall file all 
11cannabis tax returns and shall make all cannabis tax payments 
12by electronic means in the manner and form required by the 
13Department.
14 Beginning October 1, 1993, a taxpayer who has an average 
15monthly tax liability of $150,000 or more shall make all 
16payments required by rules of the Department by electronic 
17funds transfer. Beginning October 1, 1994, a taxpayer who has 
18an average monthly tax liability of $100,000 or more shall 
19make all payments required by rules of the Department by 
20electronic funds transfer. Beginning October 1, 1995, a 
21taxpayer who has an average monthly tax liability of $50,000 
22or more shall make all payments required by rules of the 
23Department by electronic funds transfer. Beginning October 1, 
242000, a taxpayer who has an annual tax liability of $200,000 or 
25more shall make all payments required by rules of the 
26Department by electronic funds transfer. The term "annual tax 
 
 
10300HB4951sam002- 977 -LRB103 38094 HLH 74177 a


1liability" shall be the sum of the taxpayer's liabilities 
2under this Act, and under all other State and local occupation 
3and use tax laws administered by the Department, for the 
4immediately preceding calendar year. The term "average monthly 
5tax liability" means the sum of the taxpayer's liabilities 
6under this Act, and under all other State and local occupation 
7and use tax laws administered by the Department, for the 
8immediately preceding calendar year divided by 12. Beginning 
9on October 1, 2002, a taxpayer who has a tax liability in the 
10amount set forth in subsection (b) of Section 2505-210 of the 
11Department of Revenue Law shall make all payments required by 
12rules of the Department by electronic funds transfer.
13 Before August 1 of each year beginning in 1993, the 
14Department shall notify all taxpayers required to make 
15payments by electronic funds transfer. All taxpayers required 
16to make payments by electronic funds transfer shall make those 
17payments for a minimum of one year beginning on October 1.
18 Any taxpayer not required to make payments by electronic 
19funds transfer may make payments by electronic funds transfer 
20with the permission of the Department.
21 All taxpayers required to make payment by electronic funds 
22transfer and any taxpayers authorized to voluntarily make 
23payments by electronic funds transfer shall make those 
24payments in the manner authorized by the Department.
25 The Department shall adopt such rules as are necessary to 
26effectuate a program of electronic funds transfer and the 
 
 
10300HB4951sam002- 978 -LRB103 38094 HLH 74177 a


1requirements of this Section.
2 If the serviceman is otherwise required to file a monthly 
3return and if the serviceman's average monthly tax liability 
4to the Department does not exceed $200, the Department may 
5authorize his returns to be filed on a quarter annual basis, 
6with the return for January, February and March of a given year 
7being due by April 20 of such year; with the return for April, 
8May and June of a given year being due by July 20 of such year; 
9with the return for July, August and September of a given year 
10being due by October 20 of such year, and with the return for 
11October, November and December of a given year being due by 
12January 20 of the following year.
13 If the serviceman is otherwise required to file a monthly 
14or quarterly return and if the serviceman's average monthly 
15tax liability to the Department does not exceed $50, the 
16Department may authorize his returns to be filed on an annual 
17basis, with the return for a given year being due by January 20 
18of the following year.
19 Such quarter annual and annual returns, as to form and 
20substance, shall be subject to the same requirements as 
21monthly returns.
22 Notwithstanding any other provision in this Act concerning 
23the time within which a serviceman may file his return, in the 
24case of any serviceman who ceases to engage in a kind of 
25business which makes him responsible for filing returns under 
26this Act, such serviceman shall file a final return under this 
 
 
10300HB4951sam002- 979 -LRB103 38094 HLH 74177 a


1Act with the Department not more than 1 month after 
2discontinuing such business.
3 Where a serviceman collects the tax with respect to the 
4selling price of property which he sells and the purchaser 
5thereafter returns such property and the serviceman refunds 
6the selling price thereof to the purchaser, such serviceman 
7shall also refund, to the purchaser, the tax so collected from 
8the purchaser. When filing his return for the period in which 
9he refunds such tax to the purchaser, the serviceman may 
10deduct the amount of the tax so refunded by him to the 
11purchaser from any other Service Use Tax, Service Occupation 
12Tax, retailers' occupation tax or use tax which such 
13serviceman may be required to pay or remit to the Department, 
14as shown by such return, provided that the amount of the tax to 
15be deducted shall previously have been remitted to the 
16Department by such serviceman. If the serviceman shall not 
17previously have remitted the amount of such tax to the 
18Department, he shall be entitled to no deduction hereunder 
19upon refunding such tax to the purchaser.
20 Any serviceman filing a return hereunder shall also 
21include the total tax upon the selling price of tangible 
22personal property purchased for use by him as an incident to a 
23sale of service, and such serviceman shall remit the amount of 
24such tax to the Department when filing such return.
25 If experience indicates such action to be practicable, the 
26Department may prescribe and furnish a combination or joint 
 
 
10300HB4951sam002- 980 -LRB103 38094 HLH 74177 a


1return which will enable servicemen, who are required to file 
2returns hereunder and also under the Service Occupation Tax 
3Act, to furnish all the return information required by both 
4Acts on the one form.
5 Where the serviceman has more than one business registered 
6with the Department under separate registration hereunder, 
7such serviceman shall not file each return that is due as a 
8single return covering all such registered businesses, but 
9shall file separate returns for each such registered business.
10 Beginning January 1, 1990, each month the Department shall 
11pay into the State and Local Tax Reform Fund, a special fund in 
12the State Treasury, the net revenue realized for the preceding 
13month from the 1% tax imposed under this Act.
14 Beginning January 1, 1990, each month the Department shall 
15pay into the State and Local Sales Tax Reform Fund 20% of the 
16net revenue realized for the preceding month from the 6.25% 
17general rate on transfers of tangible personal property, other 
18than (i) tangible personal property which is purchased outside 
19Illinois at retail from a retailer and which is titled or 
20registered by an agency of this State's government and (ii) 
21aviation fuel sold on or after December 1, 2019. This 
22exception for aviation fuel only applies for so long as the 
23revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
2447133 are binding on the State.
25 For aviation fuel sold on or after December 1, 2019, each 
26month the Department shall pay into the State Aviation Program 
 
 
10300HB4951sam002- 981 -LRB103 38094 HLH 74177 a


1Fund 20% of the net revenue realized for the preceding month 
2from the 6.25% general rate on the selling price of aviation 
3fuel, less an amount estimated by the Department to be 
4required for refunds of the 20% portion of the tax on aviation 
5fuel under this Act, which amount shall be deposited into the 
6Aviation Fuel Sales Tax Refund Fund. The Department shall only 
7pay moneys into the State Aviation Program Fund and the 
8Aviation Fuel Sales Tax Refund Fund under this Act for so long 
9as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
10U.S.C. 47133 are binding on the State. 
11 Beginning August 1, 2000, each month the Department shall 
12pay into the State and Local Sales Tax Reform Fund 100% of the 
13net revenue realized for the preceding month from the 1.25% 
14rate on the selling price of motor fuel and gasohol.
15 Beginning October 1, 2009, each month the Department shall 
16pay into the Capital Projects Fund an amount that is equal to 
17an amount estimated by the Department to represent 80% of the 
18net revenue realized for the preceding month from the sale of 
19candy, grooming and hygiene products, and soft drinks that had 
20been taxed at a rate of 1% prior to September 1, 2009 but that 
21are now taxed at 6.25%. 
22 Beginning July 1, 2013, each month the Department shall 
23pay into the Underground Storage Tank Fund from the proceeds 
24collected under this Act, the Use Tax Act, the Service 
25Occupation Tax Act, and the Retailers' Occupation Tax Act an 
26amount equal to the average monthly deficit in the Underground 
 
 
10300HB4951sam002- 982 -LRB103 38094 HLH 74177 a


1Storage Tank Fund during the prior year, as certified annually 
2by the Illinois Environmental Protection Agency, but the total 
3payment into the Underground Storage Tank Fund under this Act, 
4the Use Tax Act, the Service Occupation Tax Act, and the 
5Retailers' Occupation Tax Act shall not exceed $18,000,000 in 
6any State fiscal year. As used in this paragraph, the "average 
7monthly deficit" shall be equal to the difference between the 
8average monthly claims for payment by the fund and the average 
9monthly revenues deposited into the fund, excluding payments 
10made pursuant to this paragraph. 
11 Beginning July 1, 2015, of the remainder of the moneys 
12received by the Department under the Use Tax Act, this Act, the 
13Service Occupation Tax Act, and the Retailers' Occupation Tax 
14Act, each month the Department shall deposit $500,000 into the 
15State Crime Laboratory Fund. 
16 Of the remainder of the moneys received by the Department 
17pursuant to this Act, (a) 1.75% thereof shall be paid into the 
18Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
19and after July 1, 1989, 3.8% thereof shall be paid into the 
20Build Illinois Fund; provided, however, that if in any fiscal 
21year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
22may be, of the moneys received by the Department and required 
23to be paid into the Build Illinois Fund pursuant to Section 3 
24of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
25Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
26Service Occupation Tax Act, such Acts being hereinafter called 
 
 
10300HB4951sam002- 983 -LRB103 38094 HLH 74177 a


1the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
2may be, of moneys being hereinafter called the "Tax Act 
3Amount", and (2) the amount transferred to the Build Illinois 
4Fund from the State and Local Sales Tax Reform Fund shall be 
5less than the Annual Specified Amount (as defined in Section 3 
6of the Retailers' Occupation Tax Act), an amount equal to the 
7difference shall be immediately paid into the Build Illinois 
8Fund from other moneys received by the Department pursuant to 
9the Tax Acts; and further provided, that if on the last 
10business day of any month the sum of (1) the Tax Act Amount 
11required to be deposited into the Build Illinois Bond Account 
12in the Build Illinois Fund during such month and (2) the amount 
13transferred during such month to the Build Illinois Fund from 
14the State and Local Sales Tax Reform Fund shall have been less 
15than 1/12 of the Annual Specified Amount, an amount equal to 
16the difference shall be immediately paid into the Build 
17Illinois Fund from other moneys received by the Department 
18pursuant to the Tax Acts; and, further provided, that in no 
19event shall the payments required under the preceding proviso 
20result in aggregate payments into the Build Illinois Fund 
21pursuant to this clause (b) for any fiscal year in excess of 
22the greater of (i) the Tax Act Amount or (ii) the Annual 
23Specified Amount for such fiscal year; and, further provided, 
24that the amounts payable into the Build Illinois Fund under 
25this clause (b) shall be payable only until such time as the 
26aggregate amount on deposit under each trust indenture 
 
 
10300HB4951sam002- 984 -LRB103 38094 HLH 74177 a


1securing Bonds issued and outstanding pursuant to the Build 
2Illinois Bond Act is sufficient, taking into account any 
3future investment income, to fully provide, in accordance with 
4such indenture, for the defeasance of or the payment of the 
5principal of, premium, if any, and interest on the Bonds 
6secured by such indenture and on any Bonds expected to be 
7issued thereafter and all fees and costs payable with respect 
8thereto, all as certified by the Director of the Bureau of the 
9Budget (now Governor's Office of Management and Budget). If on 
10the last business day of any month in which Bonds are 
11outstanding pursuant to the Build Illinois Bond Act, the 
12aggregate of the moneys deposited in the Build Illinois Bond 
13Account in the Build Illinois Fund in such month shall be less 
14than the amount required to be transferred in such month from 
15the Build Illinois Bond Account to the Build Illinois Bond 
16Retirement and Interest Fund pursuant to Section 13 of the 
17Build Illinois Bond Act, an amount equal to such deficiency 
18shall be immediately paid from other moneys received by the 
19Department pursuant to the Tax Acts to the Build Illinois 
20Fund; provided, however, that any amounts paid to the Build 
21Illinois Fund in any fiscal year pursuant to this sentence 
22shall be deemed to constitute payments pursuant to clause (b) 
23of the preceding sentence and shall reduce the amount 
24otherwise payable for such fiscal year pursuant to clause (b) 
25of the preceding sentence. The moneys received by the 
26Department pursuant to this Act and required to be deposited 
 
 
10300HB4951sam002- 985 -LRB103 38094 HLH 74177 a


1into the Build Illinois Fund are subject to the pledge, claim 
2and charge set forth in Section 12 of the Build Illinois Bond 
3Act.
4 Subject to payment of amounts into the Build Illinois Fund 
5as provided in the preceding paragraph or in any amendment 
6thereto hereafter enacted, the following specified monthly 
7installment of the amount requested in the certificate of the 
8Chairman of the Metropolitan Pier and Exposition Authority 
9provided under Section 8.25f of the State Finance Act, but not 
10in excess of the sums designated as "Total Deposit", shall be 
11deposited in the aggregate from collections under Section 9 of 
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
139 of the Service Occupation Tax Act, and Section 3 of the 
14Retailers' Occupation Tax Act into the McCormick Place 
15Expansion Project Fund in the specified fiscal years.

16Fiscal YearTotal Deposit
171993         $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000
 
 
10300HB4951sam002- 986 -LRB103 38094 HLH 74177 a


12002 93,000,000
22003 99,000,000
32004103,000,000
42005108,000,000
52006113,000,000
62007119,000,000
72008126,000,000
82009132,000,000
92010139,000,000
102011146,000,000
112012153,000,000
122013161,000,000
132014170,000,000
142015179,000,000
152016189,000,000
162017199,000,000
172018210,000,000
182019221,000,000
192020233,000,000
202021300,000,000 
212022300,000,000
222023300,000,000
232024 300,000,000
242025 300,000,000
252026 300,000,000
262027 375,000,000
 
 
10300HB4951sam002- 987 -LRB103 38094 HLH 74177 a


       
12028 375,000,000
22029 375,000,000
32030 375,000,000
42031 375,000,000
52032 375,000,000
62033 375,000,000
72034375,000,000
82035375,000,000
92036450,000,000
10and 
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18 Beginning July 20, 1993 and in each month of each fiscal 
19year thereafter, one-eighth of the amount requested in the 
20certificate of the Chairman of the Metropolitan Pier and 
21Exposition Authority for that fiscal year, less the amount 
22deposited into the McCormick Place Expansion Project Fund by 
23the State Treasurer in the respective month under subsection 
24(g) of Section 13 of the Metropolitan Pier and Exposition 
25Authority Act, plus cumulative deficiencies in the deposits 
26required under this Section for previous months and years, 
 
 
10300HB4951sam002- 988 -LRB103 38094 HLH 74177 a


1shall be deposited into the McCormick Place Expansion Project 
2Fund, until the full amount requested for the fiscal year, but 
3not in excess of the amount specified above as "Total 
4Deposit", has been deposited.
5 Subject to payment of amounts into the Capital Projects 
6Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
7and the McCormick Place Expansion Project Fund pursuant to the 
8preceding paragraphs or in any amendments thereto hereafter 
9enacted, for aviation fuel sold on or after December 1, 2019, 
10the Department shall each month deposit into the Aviation Fuel 
11Sales Tax Refund Fund an amount estimated by the Department to 
12be required for refunds of the 80% portion of the tax on 
13aviation fuel under this Act. The Department shall only 
14deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
15under this paragraph for so long as the revenue use 
16requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
17binding on the State. 
18 Subject to payment of amounts into the Build Illinois Fund 
19and the McCormick Place Expansion Project Fund pursuant to the 
20preceding paragraphs or in any amendments thereto hereafter 
21enacted, beginning July 1, 1993 and ending on September 30, 
222013, the Department shall each month pay into the Illinois 
23Tax Increment Fund 0.27% of 80% of the net revenue realized for 
24the preceding month from the 6.25% general rate on the selling 
25price of tangible personal property.
26 Subject to payment of amounts into the Build Illinois 
 
 
10300HB4951sam002- 989 -LRB103 38094 HLH 74177 a


1Fund, the McCormick Place Expansion Project Fund, the Illinois 
2Tax Increment Fund, pursuant to the preceding paragraphs or in 
3any amendments to this Section hereafter enacted, beginning on 
4the first day of the first calendar month to occur on or after 
5August 26, 2014 (the effective date of Public Act 98-1098), 
6each month, from the collections made under Section 9 of the 
7Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of 
8the Service Occupation Tax Act, and Section 3 of the 
9Retailers' Occupation Tax Act, the Department shall pay into 
10the Tax Compliance and Administration Fund, to be used, 
11subject to appropriation, to fund additional auditors and 
12compliance personnel at the Department of Revenue, an amount 
13equal to 1/12 of 5% of 80% of the cash receipts collected 
14during the preceding fiscal year by the Audit Bureau of the 
15Department under the Use Tax Act, the Service Use Tax Act, the 
16Service Occupation Tax Act, the Retailers' Occupation Tax Act, 
17and associated local occupation and use taxes administered by 
18the Department. 
19 Subject to payments of amounts into the Build Illinois 
20Fund, the McCormick Place Expansion Project Fund, the Illinois 
21Tax Increment Fund, and the Tax Compliance and Administration 
22Fund as provided in this Section, beginning on July 1, 2018 the 
23Department shall pay each month into the Downstate Public 
24Transportation Fund the moneys required to be so paid under 
25Section 2-3 of the Downstate Public Transportation Act.
26 Subject to successful execution and delivery of a 
 
 
10300HB4951sam002- 990 -LRB103 38094 HLH 74177 a


1public-private agreement between the public agency and private 
2entity and completion of the civic build, beginning on July 1, 
32023, of the remainder of the moneys received by the 
4Department under the Use Tax Act, the Service Use Tax Act, the 
5Service Occupation Tax Act, and this Act, the Department shall 
6deposit the following specified deposits in the aggregate from 
7collections under the Use Tax Act, the Service Use Tax Act, the 
8Service Occupation Tax Act, and the Retailers' Occupation Tax 
9Act, as required under Section 8.25g of the State Finance Act 
10for distribution consistent with the Public-Private 
11Partnership for Civic and Transit Infrastructure Project Act. 
12The moneys received by the Department pursuant to this Act and 
13required to be deposited into the Civic and Transit 
14Infrastructure Fund are subject to the pledge, claim, and 
15charge set forth in Section 25-55 of the Public-Private 
16Partnership for Civic and Transit Infrastructure Project Act. 
17As used in this paragraph, "civic build", "private entity", 
18"public-private agreement", and "public agency" have the 
19meanings provided in Section 25-10 of the Public-Private 
20Partnership for Civic and Transit Infrastructure Project Act. 
21  Fiscal Year............................Total Deposit 
22  2024....................................$200,000,000 
23  2025....................................$206,000,000 
24  2026....................................$212,200,000 
25  2027....................................$218,500,000 
26  2028....................................$225,100,000 
 
 
10300HB4951sam002- 991 -LRB103 38094 HLH 74177 a


1  2029....................................$288,700,000 
2  2030....................................$298,900,000 
3  2031....................................$309,300,000 
4  2032....................................$320,100,000 
5  2033....................................$331,200,000 
6  2034....................................$341,200,000 
7  2035....................................$351,400,000 
8  2036....................................$361,900,000 
9  2037....................................$372,800,000 
10  2038....................................$384,000,000 
11  2039....................................$395,500,000 
12  2040....................................$407,400,000 
13  2041....................................$419,600,000 
14  2042....................................$432,200,000 
15  2043....................................$445,100,000 
16 Beginning July 1, 2021 and until July 1, 2022, subject to 
17the payment of amounts into the State and Local Sales Tax 
18Reform Fund, the Build Illinois Fund, the McCormick Place 
19Expansion Project Fund, the Energy Infrastructure Fund, and 
20the Tax Compliance and Administration Fund as provided in this 
21Section, the Department shall pay each month into the Road 
22Fund the amount estimated to represent 16% of the net revenue 
23realized from the taxes imposed on motor fuel and gasohol. 
24Beginning July 1, 2022 and until July 1, 2023, subject to the 
25payment of amounts into the State and Local Sales Tax Reform 
26Fund, the Build Illinois Fund, the McCormick Place Expansion 
 
 
10300HB4951sam002- 992 -LRB103 38094 HLH 74177 a


1Project Fund, the Illinois Tax Increment Fund, and the Tax 
2Compliance and Administration Fund as provided in this 
3Section, the Department shall pay each month into the Road 
4Fund the amount estimated to represent 32% of the net revenue 
5realized from the taxes imposed on motor fuel and gasohol. 
6Beginning July 1, 2023 and until July 1, 2024, subject to the 
7payment of amounts into the State and Local Sales Tax Reform 
8Fund, the Build Illinois Fund, the McCormick Place Expansion 
9Project Fund, the Illinois Tax Increment Fund, and the Tax 
10Compliance and Administration Fund as provided in this 
11Section, the Department shall pay each month into the Road 
12Fund the amount estimated to represent 48% of the net revenue 
13realized from the taxes imposed on motor fuel and gasohol. 
14Beginning July 1, 2024 and until July 1, 2025, subject to the 
15payment of amounts into the State and Local Sales Tax Reform 
16Fund, the Build Illinois Fund, the McCormick Place Expansion 
17Project Fund, the Illinois Tax Increment Fund, and the Tax 
18Compliance and Administration Fund as provided in this 
19Section, the Department shall pay each month into the Road 
20Fund the amount estimated to represent 64% of the net revenue 
21realized from the taxes imposed on motor fuel and gasohol. 
22Beginning on July 1, 2025, subject to the payment of amounts 
23into the State and Local Sales Tax Reform Fund, the Build 
24Illinois Fund, the McCormick Place Expansion Project Fund, the 
25Illinois Tax Increment Fund, and the Tax Compliance and 
26Administration Fund as provided in this Section, the 
 
 
10300HB4951sam002- 993 -LRB103 38094 HLH 74177 a


1Department shall pay each month into the Road Fund the amount 
2estimated to represent 80% of the net revenue realized from 
3the taxes imposed on motor fuel and gasohol. As used in this 
4paragraph "motor fuel" has the meaning given to that term in 
5Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the 
6meaning given to that term in Section 3-40 of the Use Tax Act. 
7 Of the remainder of the moneys received by the Department 
8pursuant to this Act, 75% thereof shall be paid into the 
9General Revenue Fund of the State Treasury and 25% shall be 
10reserved in a special account and used only for the transfer to 
11the Common School Fund as part of the monthly transfer from the 
12General Revenue Fund in accordance with Section 8a of the 
13State Finance Act.
14 As soon as possible after the first day of each month, upon 
15certification of the Department of Revenue, the Comptroller 
16shall order transferred and the Treasurer shall transfer from 
17the General Revenue Fund to the Motor Fuel Tax Fund an amount 
18equal to 1.7% of 80% of the net revenue realized under this Act 
19for the second preceding month. Beginning April 1, 2000, this 
20transfer is no longer required and shall not be made.
21 Net revenue realized for a month shall be the revenue 
22collected by the State pursuant to this Act, less the amount 
23paid out during that month as refunds to taxpayers for 
24overpayment of liability.
25(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)

 
 
10300HB4951sam002- 994 -LRB103 38094 HLH 74177 a


1 Section 110-15. The Service Occupation Tax Act is amended 
2by changing Section 9 as follows:

3 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
4 Sec. 9. Each serviceman required or authorized to collect 
5the tax herein imposed shall pay to the Department the amount 
6of such tax at the time when he is required to file his return 
7for the period during which such tax was collectible, less a 
8discount of 2.1% prior to January 1, 1990, and 1.75% on and 
9after January 1, 1990, or $5 per calendar year, whichever is 
10greater, which is allowed to reimburse the serviceman for 
11expenses incurred in collecting the tax, keeping records, 
12preparing and filing returns, remitting the tax, and supplying 
13data to the Department on request. Beginning with returns due 
14on or after January 1, 2025, the vendor's discount allowed in 
15this Section, the Retailers' Occupation Tax Act, the Use Tax 
16Act, and the Service Use Tax Act, including any local tax 
17administered by the Department and reported on the same 
18return, shall not exceed $1,000 per month in the aggregate. 
19When determining the discount allowed under this Section, 
20servicemen shall include the amount of tax that would have 
21been due at the 1% rate but for the 0% rate imposed under 
22Public Act 102-700 this amendatory Act of the 102nd General 
23Assembly. The discount under this Section is not allowed for 
24the 1.25% portion of taxes paid on aviation fuel that is 
25subject to the revenue use requirements of 49 U.S.C. 47107(b) 
 
 
10300HB4951sam002- 995 -LRB103 38094 HLH 74177 a


1and 49 U.S.C. 47133. The discount allowed under this Section 
2is allowed only for returns that are filed in the manner 
3required by this Act. The Department may disallow the discount 
4for servicemen whose certificate of registration is revoked at 
5the time the return is filed, but only if the Department's 
6decision to revoke the certificate of registration has become 
7final.
8 Where such tangible personal property is sold under a 
9conditional sales contract, or under any other form of sale 
10wherein the payment of the principal sum, or a part thereof, is 
11extended beyond the close of the period for which the return is 
12filed, the serviceman, in collecting the tax may collect, for 
13each tax return period, only the tax applicable to the part of 
14the selling price actually received during such tax return 
15period.
16 Except as provided hereinafter in this Section, on or 
17before the twentieth day of each calendar month, such 
18serviceman shall file a return for the preceding calendar 
19month in accordance with reasonable rules and regulations to 
20be promulgated by the Department of Revenue. Such return shall 
21be filed on a form prescribed by the Department and shall 
22contain such information as the Department may reasonably 
23require. The return shall include the gross receipts which 
24were received during the preceding calendar month or quarter 
25on the following items upon which tax would have been due but 
26for the 0% rate imposed under Public Act 102-700 this 
 
 
10300HB4951sam002- 996 -LRB103 38094 HLH 74177 a


1amendatory Act of the 102nd General Assembly: (i) food for 
2human consumption that is to be consumed off the premises 
3where it is sold (other than alcoholic beverages, food 
4consisting of or infused with adult use cannabis, soft drinks, 
5and food that has been prepared for immediate consumption); 
6and (ii) food prepared for immediate consumption and 
7transferred incident to a sale of service subject to this Act 
8or the Service Use Tax Act by an entity licensed under the 
9Hospital Licensing Act, the Nursing Home Care Act, the 
10Assisted Living and Shared Housing Act, the ID/DD Community 
11Care Act, the MC/DD Act, the Specialized Mental Health 
12Rehabilitation Act of 2013, or the Child Care Act of 1969, or 
13an entity that holds a permit issued pursuant to the Life Care 
14Facilities Act. The return shall also include the amount of 
15tax that would have been due on the items listed in the 
16previous sentence but for the 0% rate imposed under Public Act 
17102-700 this amendatory Act of the 102nd General Assembly.
18 On and after January 1, 2018, with respect to servicemen 
19whose annual gross receipts average $20,000 or more, all 
20returns required to be filed pursuant to this Act shall be 
21filed electronically. Servicemen who demonstrate that they do 
22not have access to the Internet or demonstrate hardship in 
23filing electronically may petition the Department to waive the 
24electronic filing requirement. 
25 The Department may require returns to be filed on a 
26quarterly basis. If so required, a return for each calendar 
 
 
10300HB4951sam002- 997 -LRB103 38094 HLH 74177 a


1quarter shall be filed on or before the twentieth day of the 
2calendar month following the end of such calendar quarter. The 
3taxpayer shall also file a return with the Department for each 
4of the first two months of each calendar quarter, on or before 
5the twentieth day of the following calendar month, stating:
6  1. The name of the seller;
7  2. The address of the principal place of business from 
8 which he engages in business as a serviceman in this 
9 State;
10  3. The total amount of taxable receipts received by 
11 him during the preceding calendar month, including 
12 receipts from charge and time sales, but less all 
13 deductions allowed by law;
14  4. The amount of credit provided in Section 2d of this 
15 Act;
16  5. The amount of tax due;
17  5-5. The signature of the taxpayer; and
18  6. Such other reasonable information as the Department 
19 may require.
20 Each serviceman required or authorized to collect the tax 
21herein imposed on aviation fuel acquired as an incident to the 
22purchase of a service in this State during the preceding 
23calendar month shall, instead of reporting and paying tax as 
24otherwise required by this Section, report and pay such tax on 
25a separate aviation fuel tax return. The requirements related 
26to the return shall be as otherwise provided in this Section. 
 
 
10300HB4951sam002- 998 -LRB103 38094 HLH 74177 a


1Notwithstanding any other provisions of this Act to the 
2contrary, servicemen transferring aviation fuel incident to 
3sales of service shall file all aviation fuel tax returns and 
4shall make all aviation fuel tax payments by electronic means 
5in the manner and form required by the Department. For 
6purposes of this Section, "aviation fuel" means jet fuel and 
7aviation gasoline. 
8 If a taxpayer fails to sign a return within 30 days after 
9the proper notice and demand for signature by the Department, 
10the return shall be considered valid and any amount shown to be 
11due on the return shall be deemed assessed.
12 Notwithstanding any other provision of this Act to the 
13contrary, servicemen subject to tax on cannabis shall file all 
14cannabis tax returns and shall make all cannabis tax payments 
15by electronic means in the manner and form required by the 
16Department.
17 Prior to October 1, 2003, and on and after September 1, 
182004 a serviceman may accept a Manufacturer's Purchase Credit 
19certification from a purchaser in satisfaction of Service Use 
20Tax as provided in Section 3-70 of the Service Use Tax Act if 
21the purchaser provides the appropriate documentation as 
22required by Section 3-70 of the Service Use Tax Act. A 
23Manufacturer's Purchase Credit certification, accepted prior 
24to October 1, 2003 or on or after September 1, 2004 by a 
25serviceman as provided in Section 3-70 of the Service Use Tax 
26Act, may be used by that serviceman to satisfy Service 
 
 
10300HB4951sam002- 999 -LRB103 38094 HLH 74177 a


1Occupation Tax liability in the amount claimed in the 
2certification, not to exceed 6.25% of the receipts subject to 
3tax from a qualifying purchase. A Manufacturer's Purchase 
4Credit reported on any original or amended return filed under 
5this Act after October 20, 2003 for reporting periods prior to 
6September 1, 2004 shall be disallowed. Manufacturer's Purchase 
7Credit reported on annual returns due on or after January 1, 
82005 will be disallowed for periods prior to September 1, 
92004. No Manufacturer's Purchase Credit may be used after 
10September 30, 2003 through August 31, 2004 to satisfy any tax 
11liability imposed under this Act, including any audit 
12liability.
13 Beginning on July 1, 2023 and through December 31, 2032, a 
14serviceman may accept a Sustainable Aviation Fuel Purchase 
15Credit certification from an air common carrier-purchaser in 
16satisfaction of Service Use Tax as provided in Section 3-72 of 
17the Service Use Tax Act if the purchaser provides the 
18appropriate documentation as required by Section 3-72 of the 
19Service Use Tax Act. A Sustainable Aviation Fuel Purchase 
20Credit certification accepted by a serviceman in accordance 
21with this paragraph may be used by that serviceman to satisfy 
22service occupation tax liability (but not in satisfaction of 
23penalty or interest) in the amount claimed in the 
24certification, not to exceed 6.25% of the receipts subject to 
25tax from a sale of aviation fuel. In addition, for a sale of 
26aviation fuel to qualify to earn the Sustainable Aviation Fuel 
 
 
10300HB4951sam002- 1000 -LRB103 38094 HLH 74177 a


1Purchase Credit, servicemen must retain in their books and 
2records a certification from the producer of the aviation fuel 
3that the aviation fuel sold by the serviceman and for which a 
4sustainable aviation fuel purchase credit was earned meets the 
5definition of sustainable aviation fuel under Section 3-72 of 
6the Service Use Tax Act. The documentation must include detail 
7sufficient for the Department to determine the number of 
8gallons of sustainable aviation fuel sold. 
9 If the serviceman's average monthly tax liability to the 
10Department does not exceed $200, the Department may authorize 
11his returns to be filed on a quarter annual basis, with the 
12return for January, February, and March of a given year being 
13due by April 20 of such year; with the return for April, May, 
14and June of a given year being due by July 20 of such year; 
15with the return for July, August, and September of a given year 
16being due by October 20 of such year, and with the return for 
17October, November, and December of a given year being due by 
18January 20 of the following year.
19 If the serviceman's average monthly tax liability to the 
20Department does not exceed $50, the Department may authorize 
21his returns to be filed on an annual basis, with the return for 
22a given year being due by January 20 of the following year.
23 Such quarter annual and annual returns, as to form and 
24substance, shall be subject to the same requirements as 
25monthly returns.
26 Notwithstanding any other provision in this Act concerning 
 
 
10300HB4951sam002- 1001 -LRB103 38094 HLH 74177 a


1the time within which a serviceman may file his return, in the 
2case of any serviceman who ceases to engage in a kind of 
3business which makes him responsible for filing returns under 
4this Act, such serviceman shall file a final return under this 
5Act with the Department not more than one 1 month after 
6discontinuing such business.
7 Beginning October 1, 1993, a taxpayer who has an average 
8monthly tax liability of $150,000 or more shall make all 
9payments required by rules of the Department by electronic 
10funds transfer. Beginning October 1, 1994, a taxpayer who has 
11an average monthly tax liability of $100,000 or more shall 
12make all payments required by rules of the Department by 
13electronic funds transfer. Beginning October 1, 1995, a 
14taxpayer who has an average monthly tax liability of $50,000 
15or more shall make all payments required by rules of the 
16Department by electronic funds transfer. Beginning October 1, 
172000, a taxpayer who has an annual tax liability of $200,000 or 
18more shall make all payments required by rules of the 
19Department by electronic funds transfer. The term "annual tax 
20liability" shall be the sum of the taxpayer's liabilities 
21under this Act, and under all other State and local occupation 
22and use tax laws administered by the Department, for the 
23immediately preceding calendar year. The term "average monthly 
24tax liability" means the sum of the taxpayer's liabilities 
25under this Act, and under all other State and local occupation 
26and use tax laws administered by the Department, for the 
 
 
10300HB4951sam002- 1002 -LRB103 38094 HLH 74177 a


1immediately preceding calendar year divided by 12. Beginning 
2on October 1, 2002, a taxpayer who has a tax liability in the 
3amount set forth in subsection (b) of Section 2505-210 of the 
4Department of Revenue Law shall make all payments required by 
5rules of the Department by electronic funds transfer.
6 Before August 1 of each year beginning in 1993, the 
7Department shall notify all taxpayers required to make 
8payments by electronic funds transfer. All taxpayers required 
9to make payments by electronic funds transfer shall make those 
10payments for a minimum of one year beginning on October 1.
11 Any taxpayer not required to make payments by electronic 
12funds transfer may make payments by electronic funds transfer 
13with the permission of the Department.
14 All taxpayers required to make payment by electronic funds 
15transfer and any taxpayers authorized to voluntarily make 
16payments by electronic funds transfer shall make those 
17payments in the manner authorized by the Department.
18 The Department shall adopt such rules as are necessary to 
19effectuate a program of electronic funds transfer and the 
20requirements of this Section.
21 Where a serviceman collects the tax with respect to the 
22selling price of tangible personal property which he sells and 
23the purchaser thereafter returns such tangible personal 
24property and the serviceman refunds the selling price thereof 
25to the purchaser, such serviceman shall also refund, to the 
26purchaser, the tax so collected from the purchaser. When 
 
 
10300HB4951sam002- 1003 -LRB103 38094 HLH 74177 a


1filing his return for the period in which he refunds such tax 
2to the purchaser, the serviceman may deduct the amount of the 
3tax so refunded by him to the purchaser from any other Service 
4Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or 
5Use Tax which such serviceman may be required to pay or remit 
6to the Department, as shown by such return, provided that the 
7amount of the tax to be deducted shall previously have been 
8remitted to the Department by such serviceman. If the 
9serviceman shall not previously have remitted the amount of 
10such tax to the Department, he shall be entitled to no 
11deduction hereunder upon refunding such tax to the purchaser.
12 If experience indicates such action to be practicable, the 
13Department may prescribe and furnish a combination or joint 
14return which will enable servicemen, who are required to file 
15returns hereunder and also under the Retailers' Occupation Tax 
16Act, the Use Tax Act, or the Service Use Tax Act, to furnish 
17all the return information required by all said Acts on the one 
18form.
19 Where the serviceman has more than one business registered 
20with the Department under separate registrations hereunder, 
21such serviceman shall file separate returns for each 
22registered business.
23 Beginning January 1, 1990, each month the Department shall 
24pay into the Local Government Tax Fund the revenue realized 
25for the preceding month from the 1% tax imposed under this Act.
26 Beginning January 1, 1990, each month the Department shall 
 
 
10300HB4951sam002- 1004 -LRB103 38094 HLH 74177 a


1pay into the County and Mass Transit District Fund 4% of the 
2revenue realized for the preceding month from the 6.25% 
3general rate on sales of tangible personal property other than 
4aviation fuel sold on or after December 1, 2019. This 
5exception for aviation fuel only applies for so long as the 
6revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
747133 are binding on the State.
8 Beginning August 1, 2000, each month the Department shall 
9pay into the County and Mass Transit District Fund 20% of the 
10net revenue realized for the preceding month from the 1.25% 
11rate on the selling price of motor fuel and gasohol.
12 Beginning January 1, 1990, each month the Department shall 
13pay into the Local Government Tax Fund 16% of the revenue 
14realized for the preceding month from the 6.25% general rate 
15on transfers of tangible personal property other than aviation 
16fuel sold on or after December 1, 2019. This exception for 
17aviation fuel only applies for so long as the revenue use 
18requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
19binding on the State.
20 For aviation fuel sold on or after December 1, 2019, each 
21month the Department shall pay into the State Aviation Program 
22Fund 20% of the net revenue realized for the preceding month 
23from the 6.25% general rate on the selling price of aviation 
24fuel, less an amount estimated by the Department to be 
25required for refunds of the 20% portion of the tax on aviation 
26fuel under this Act, which amount shall be deposited into the 
 
 
10300HB4951sam002- 1005 -LRB103 38094 HLH 74177 a


1Aviation Fuel Sales Tax Refund Fund. The Department shall only 
2pay moneys into the State Aviation Program Fund and the 
3Aviation Fuel Sales Tax Refund Fund under this Act for so long 
4as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
5U.S.C. 47133 are binding on the State. 
6 Beginning August 1, 2000, each month the Department shall 
7pay into the Local Government Tax Fund 80% of the net revenue 
8realized for the preceding month from the 1.25% rate on the 
9selling price of motor fuel and gasohol.
10 Beginning October 1, 2009, each month the Department shall 
11pay into the Capital Projects Fund an amount that is equal to 
12an amount estimated by the Department to represent 80% of the 
13net revenue realized for the preceding month from the sale of 
14candy, grooming and hygiene products, and soft drinks that had 
15been taxed at a rate of 1% prior to September 1, 2009 but that 
16are now taxed at 6.25%. 
17 Beginning July 1, 2013, each month the Department shall 
18pay into the Underground Storage Tank Fund from the proceeds 
19collected under this Act, the Use Tax Act, the Service Use Tax 
20Act, and the Retailers' Occupation Tax Act an amount equal to 
21the average monthly deficit in the Underground Storage Tank 
22Fund during the prior year, as certified annually by the 
23Illinois Environmental Protection Agency, but the total 
24payment into the Underground Storage Tank Fund under this Act, 
25the Use Tax Act, the Service Use Tax Act, and the Retailers' 
26Occupation Tax Act shall not exceed $18,000,000 in any State 
 
 
10300HB4951sam002- 1006 -LRB103 38094 HLH 74177 a


1fiscal year. As used in this paragraph, the "average monthly 
2deficit" shall be equal to the difference between the average 
3monthly claims for payment by the fund and the average monthly 
4revenues deposited into the fund, excluding payments made 
5pursuant to this paragraph. 
6 Beginning July 1, 2015, of the remainder of the moneys 
7received by the Department under the Use Tax Act, the Service 
8Use Tax Act, this Act, and the Retailers' Occupation Tax Act, 
9each month the Department shall deposit $500,000 into the 
10State Crime Laboratory Fund. 
11 Of the remainder of the moneys received by the Department 
12pursuant to this Act, (a) 1.75% thereof shall be paid into the 
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
14and after July 1, 1989, 3.8% thereof shall be paid into the 
15Build Illinois Fund; provided, however, that if in any fiscal 
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
17may be, of the moneys received by the Department and required 
18to be paid into the Build Illinois Fund pursuant to Section 3 
19of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 
20Act, Section 9 of the Service Use Tax Act, and Section 9 of the 
21Service Occupation Tax Act, such Acts being hereinafter called 
22the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 
23may be, of moneys being hereinafter called the "Tax Act 
24Amount", and (2) the amount transferred to the Build Illinois 
25Fund from the State and Local Sales Tax Reform Fund shall be 
26less than the Annual Specified Amount (as defined in Section 3 
 
 
10300HB4951sam002- 1007 -LRB103 38094 HLH 74177 a


1of the Retailers' Occupation Tax Act), an amount equal to the 
2difference shall be immediately paid into the Build Illinois 
3Fund from other moneys received by the Department pursuant to 
4the Tax Acts; and further provided, that if on the last 
5business day of any month the sum of (1) the Tax Act Amount 
6required to be deposited into the Build Illinois Account in 
7the Build Illinois Fund during such month and (2) the amount 
8transferred during such month to the Build Illinois Fund from 
9the State and Local Sales Tax Reform Fund shall have been less 
10than 1/12 of the Annual Specified Amount, an amount equal to 
11the difference shall be immediately paid into the Build 
12Illinois Fund from other moneys received by the Department 
13pursuant to the Tax Acts; and, further provided, that in no 
14event shall the payments required under the preceding proviso 
15result in aggregate payments into the Build Illinois Fund 
16pursuant to this clause (b) for any fiscal year in excess of 
17the greater of (i) the Tax Act Amount or (ii) the Annual 
18Specified Amount for such fiscal year; and, further provided, 
19that the amounts payable into the Build Illinois Fund under 
20this clause (b) shall be payable only until such time as the 
21aggregate amount on deposit under each trust indenture 
22securing Bonds issued and outstanding pursuant to the Build 
23Illinois Bond Act is sufficient, taking into account any 
24future investment income, to fully provide, in accordance with 
25such indenture, for the defeasance of or the payment of the 
26principal of, premium, if any, and interest on the Bonds 
 
 
10300HB4951sam002- 1008 -LRB103 38094 HLH 74177 a


1secured by such indenture and on any Bonds expected to be 
2issued thereafter and all fees and costs payable with respect 
3thereto, all as certified by the Director of the Bureau of the 
4Budget (now Governor's Office of Management and Budget). If on 
5the last business day of any month in which Bonds are 
6outstanding pursuant to the Build Illinois Bond Act, the 
7aggregate of the moneys deposited in the Build Illinois Bond 
8Account in the Build Illinois Fund in such month shall be less 
9than the amount required to be transferred in such month from 
10the Build Illinois Bond Account to the Build Illinois Bond 
11Retirement and Interest Fund pursuant to Section 13 of the 
12Build Illinois Bond Act, an amount equal to such deficiency 
13shall be immediately paid from other moneys received by the 
14Department pursuant to the Tax Acts to the Build Illinois 
15Fund; provided, however, that any amounts paid to the Build 
16Illinois Fund in any fiscal year pursuant to this sentence 
17shall be deemed to constitute payments pursuant to clause (b) 
18of the preceding sentence and shall reduce the amount 
19otherwise payable for such fiscal year pursuant to clause (b) 
20of the preceding sentence. The moneys received by the 
21Department pursuant to this Act and required to be deposited 
22into the Build Illinois Fund are subject to the pledge, claim 
23and charge set forth in Section 12 of the Build Illinois Bond 
24Act.
25 Subject to payment of amounts into the Build Illinois Fund 
26as provided in the preceding paragraph or in any amendment 
 
 
10300HB4951sam002- 1009 -LRB103 38094 HLH 74177 a


1thereto hereafter enacted, the following specified monthly 
2installment of the amount requested in the certificate of the 
3Chairman of the Metropolitan Pier and Exposition Authority 
4provided under Section 8.25f of the State Finance Act, but not 
5in excess of the sums designated as "Total Deposit", shall be 
6deposited in the aggregate from collections under Section 9 of 
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
89 of the Service Occupation Tax Act, and Section 3 of the 
9Retailers' Occupation Tax Act into the McCormick Place 
10Expansion Project Fund in the specified fiscal years.

11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000
 
 
10300HB4951sam002- 1010 -LRB103 38094 HLH 74177 a


12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021300,000,000 
162022300,000,000
172023300,000,000
182024 300,000,000
192025 300,000,000
202026 300,000,000
212027 375,000,000
222028 375,000,000
232029 375,000,000
242030 375,000,000
252031 375,000,000
262032 375,000,000
 
 
10300HB4951sam002- 1011 -LRB103 38094 HLH 74177 a


       
12033 375,000,000
22034375,000,000
32035375,000,000
42036450,000,000
5and 
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13 Beginning July 20, 1993 and in each month of each fiscal 
14year thereafter, one-eighth of the amount requested in the 
15certificate of the Chairman of the Metropolitan Pier and 
16Exposition Authority for that fiscal year, less the amount 
17deposited into the McCormick Place Expansion Project Fund by 
18the State Treasurer in the respective month under subsection 
19(g) of Section 13 of the Metropolitan Pier and Exposition 
20Authority Act, plus cumulative deficiencies in the deposits 
21required under this Section for previous months and years, 
22shall be deposited into the McCormick Place Expansion Project 
23Fund, until the full amount requested for the fiscal year, but 
24not in excess of the amount specified above as "Total 
25Deposit", has been deposited.
26 Subject to payment of amounts into the Capital Projects 
 
 
10300HB4951sam002- 1012 -LRB103 38094 HLH 74177 a


1Fund, the Build Illinois Fund, and the McCormick Place 
2Expansion Project Fund pursuant to the preceding paragraphs or 
3in any amendments thereto hereafter enacted, for aviation fuel 
4sold on or after December 1, 2019, the Department shall each 
5month deposit into the Aviation Fuel Sales Tax Refund Fund an 
6amount estimated by the Department to be required for refunds 
7of the 80% portion of the tax on aviation fuel under this Act. 
8The Department shall only deposit moneys into the Aviation 
9Fuel Sales Tax Refund Fund under this paragraph for so long as 
10the revenue use requirements of 49 U.S.C. 47107(b) and 49 
11U.S.C. 47133 are binding on the State. 
12 Subject to payment of amounts into the Build Illinois Fund 
13and the McCormick Place Expansion Project Fund pursuant to the 
14preceding paragraphs or in any amendments thereto hereafter 
15enacted, beginning July 1, 1993 and ending on September 30, 
162013, the Department shall each month pay into the Illinois 
17Tax Increment Fund 0.27% of 80% of the net revenue realized for 
18the preceding month from the 6.25% general rate on the selling 
19price of tangible personal property.
20 Subject to payment of amounts into the Build Illinois 
21Fund, the McCormick Place Expansion Project Fund, and the 
22Illinois Tax Increment Fund pursuant to the preceding 
23paragraphs or in any amendments to this Section hereafter 
24enacted, beginning on the first day of the first calendar 
25month to occur on or after August 26, 2014 (the effective date 
26of Public Act 98-1098), each month, from the collections made 
 
 
10300HB4951sam002- 1013 -LRB103 38094 HLH 74177 a


1under Section 9 of the Use Tax Act, Section 9 of the Service 
2Use Tax Act, Section 9 of the Service Occupation Tax Act, and 
3Section 3 of the Retailers' Occupation Tax Act, the Department 
4shall pay into the Tax Compliance and Administration Fund, to 
5be used, subject to appropriation, to fund additional auditors 
6and compliance personnel at the Department of Revenue, an 
7amount equal to 1/12 of 5% of 80% of the cash receipts 
8collected during the preceding fiscal year by the Audit Bureau 
9of the Department under the Use Tax Act, the Service Use Tax 
10Act, the Service Occupation Tax Act, the Retailers' Occupation 
11Tax Act, and associated local occupation and use taxes 
12administered by the Department. 
13 Subject to payments of amounts into the Build Illinois 
14Fund, the McCormick Place Expansion Project Fund, the Illinois 
15Tax Increment Fund, and the Tax Compliance and Administration 
16Fund as provided in this Section, beginning on July 1, 2018 the 
17Department shall pay each month into the Downstate Public 
18Transportation Fund the moneys required to be so paid under 
19Section 2-3 of the Downstate Public Transportation Act. 
20 Subject to successful execution and delivery of a 
21public-private agreement between the public agency and private 
22entity and completion of the civic build, beginning on July 1, 
232023, of the remainder of the moneys received by the 
24Department under the Use Tax Act, the Service Use Tax Act, the 
25Service Occupation Tax Act, and this Act, the Department shall 
26deposit the following specified deposits in the aggregate from 
 
 
10300HB4951sam002- 1014 -LRB103 38094 HLH 74177 a


1collections under the Use Tax Act, the Service Use Tax Act, the 
2Service Occupation Tax Act, and the Retailers' Occupation Tax 
3Act, as required under Section 8.25g of the State Finance Act 
4for distribution consistent with the Public-Private 
5Partnership for Civic and Transit Infrastructure Project Act. 
6The moneys received by the Department pursuant to this Act and 
7required to be deposited into the Civic and Transit 
8Infrastructure Fund are subject to the pledge, claim and 
9charge set forth in Section 25-55 of the Public-Private 
10Partnership for Civic and Transit Infrastructure Project Act. 
11As used in this paragraph, "civic build", "private entity", 
12"public-private agreement", and "public agency" have the 
13meanings provided in Section 25-10 of the Public-Private 
14Partnership for Civic and Transit Infrastructure Project Act.
15  Fiscal Year............................Total Deposit 
16  2024....................................$200,000,000 
17  2025....................................$206,000,000 
18  2026....................................$212,200,000 
19  2027....................................$218,500,000 
20  2028....................................$225,100,000 
21  2029....................................$288,700,000 
22  2030....................................$298,900,000 
23  2031....................................$309,300,000 
24  2032....................................$320,100,000 
25  2033....................................$331,200,000 
26  2034....................................$341,200,000 
 
 
10300HB4951sam002- 1015 -LRB103 38094 HLH 74177 a


1  2035....................................$351,400,000 
2  2036....................................$361,900,000 
3  2037....................................$372,800,000 
4  2038....................................$384,000,000 
5  2039....................................$395,500,000 
6  2040....................................$407,400,000 
7  2041....................................$419,600,000 
8  2042....................................$432,200,000 
9  2043....................................$445,100,000 
10 Beginning July 1, 2021 and until July 1, 2022, subject to 
11the payment of amounts into the County and Mass Transit 
12District Fund, the Local Government Tax Fund, the Build 
13Illinois Fund, the McCormick Place Expansion Project Fund, the 
14Illinois Tax Increment Fund, and the Tax Compliance and 
15Administration Fund as provided in this Section, the 
16Department shall pay each month into the Road Fund the amount 
17estimated to represent 16% of the net revenue realized from 
18the taxes imposed on motor fuel and gasohol. Beginning July 1, 
192022 and until July 1, 2023, subject to the payment of amounts 
20into the County and Mass Transit District Fund, the Local 
21Government Tax Fund, the Build Illinois Fund, the McCormick 
22Place Expansion Project Fund, the Illinois Tax Increment Fund, 
23and the Tax Compliance and Administration Fund as provided in 
24this Section, the Department shall pay each month into the 
25Road Fund the amount estimated to represent 32% of the net 
26revenue realized from the taxes imposed on motor fuel and 
 
 
10300HB4951sam002- 1016 -LRB103 38094 HLH 74177 a


1gasohol. Beginning July 1, 2023 and until July 1, 2024, 
2subject to the payment of amounts into the County and Mass 
3Transit District Fund, the Local Government Tax Fund, the 
4Build Illinois Fund, the McCormick Place Expansion Project 
5Fund, the Illinois Tax Increment Fund, and the Tax Compliance 
6and Administration Fund as provided in this Section, the 
7Department shall pay each month into the Road Fund the amount 
8estimated to represent 48% of the net revenue realized from 
9the taxes imposed on motor fuel and gasohol. Beginning July 1, 
102024 and until July 1, 2025, subject to the payment of amounts 
11into the County and Mass Transit District Fund, the Local 
12Government Tax Fund, the Build Illinois Fund, the McCormick 
13Place Expansion Project Fund, the Illinois Tax Increment Fund, 
14and the Tax Compliance and Administration Fund as provided in 
15this Section, the Department shall pay each month into the 
16Road Fund the amount estimated to represent 64% of the net 
17revenue realized from the taxes imposed on motor fuel and 
18gasohol. Beginning on July 1, 2025, subject to the payment of 
19amounts into the County and Mass Transit District Fund, the 
20Local Government Tax Fund, the Build Illinois Fund, the 
21McCormick Place Expansion Project Fund, the Illinois Tax 
22Increment Fund, and the Tax Compliance and Administration Fund 
23as provided in this Section, the Department shall pay each 
24month into the Road Fund the amount estimated to represent 80% 
25of the net revenue realized from the taxes imposed on motor 
26fuel and gasohol. As used in this paragraph "motor fuel" has 
 
 
10300HB4951sam002- 1017 -LRB103 38094 HLH 74177 a


1the meaning given to that term in Section 1.1 of the Motor Fuel 
2Tax Law, and "gasohol" has the meaning given to that term in 
3Section 3-40 of the Use Tax Act.
4 Of the remainder of the moneys received by the Department 
5pursuant to this Act, 75% shall be paid into the General 
6Revenue Fund of the State treasury Treasury and 25% shall be 
7reserved in a special account and used only for the transfer to 
8the Common School Fund as part of the monthly transfer from the 
9General Revenue Fund in accordance with Section 8a of the 
10State Finance Act.
11 The Department may, upon separate written notice to a 
12taxpayer, require the taxpayer to prepare and file with the 
13Department on a form prescribed by the Department within not 
14less than 60 days after receipt of the notice an annual 
15information return for the tax year specified in the notice. 
16Such annual return to the Department shall include a statement 
17of gross receipts as shown by the taxpayer's last federal 
18Federal income tax return. If the total receipts of the 
19business as reported in the federal Federal income tax return 
20do not agree with the gross receipts reported to the 
21Department of Revenue for the same period, the taxpayer shall 
22attach to his annual return a schedule showing a 
23reconciliation of the 2 amounts and the reasons for the 
24difference. The taxpayer's annual return to the Department 
25shall also disclose the cost of goods sold by the taxpayer 
26during the year covered by such return, opening and closing 
 
 
10300HB4951sam002- 1018 -LRB103 38094 HLH 74177 a


1inventories of such goods for such year, cost of goods used 
2from stock or taken from stock and given away by the taxpayer 
3during such year, pay roll information of the taxpayer's 
4business during such year and any additional reasonable 
5information which the Department deems would be helpful in 
6determining the accuracy of the monthly, quarterly or annual 
7returns filed by such taxpayer as hereinbefore provided for in 
8this Section.
9 If the annual information return required by this Section 
10is not filed when and as required, the taxpayer shall be liable 
11as follows:
12  (i) Until January 1, 1994, the taxpayer shall be 
13 liable for a penalty equal to 1/6 of 1% of the tax due from 
14 such taxpayer under this Act during the period to be 
15 covered by the annual return for each month or fraction of 
16 a month until such return is filed as required, the 
17 penalty to be assessed and collected in the same manner as 
18 any other penalty provided for in this Act.
19  (ii) On and after January 1, 1994, the taxpayer shall 
20 be liable for a penalty as described in Section 3-4 of the 
21 Uniform Penalty and Interest Act.
22 The chief executive officer, proprietor, owner, or highest 
23ranking manager shall sign the annual return to certify the 
24accuracy of the information contained therein. Any person who 
25willfully signs the annual return containing false or 
26inaccurate information shall be guilty of perjury and punished 
 
 
10300HB4951sam002- 1019 -LRB103 38094 HLH 74177 a


1accordingly. The annual return form prescribed by the 
2Department shall include a warning that the person signing the 
3return may be liable for perjury.
4 The foregoing portion of this Section concerning the 
5filing of an annual information return shall not apply to a 
6serviceman who is not required to file an income tax return 
7with the United States Government.
8 As soon as possible after the first day of each month, upon 
9certification of the Department of Revenue, the Comptroller 
10shall order transferred and the Treasurer shall transfer from 
11the General Revenue Fund to the Motor Fuel Tax Fund an amount 
12equal to 1.7% of 80% of the net revenue realized under this Act 
13for the second preceding month. Beginning April 1, 2000, this 
14transfer is no longer required and shall not be made.
15 Net revenue realized for a month shall be the revenue 
16collected by the State pursuant to this Act, less the amount 
17paid out during that month as refunds to taxpayers for 
18overpayment of liability.
19 For greater simplicity of administration, it shall be 
20permissible for manufacturers, importers and wholesalers whose 
21products are sold by numerous servicemen in Illinois, and who 
22wish to do so, to assume the responsibility for accounting and 
23paying to the Department all tax accruing under this Act with 
24respect to such sales, if the servicemen who are affected do 
25not make written objection to the Department to this 
26arrangement.
 
 
10300HB4951sam002- 1020 -LRB103 38094 HLH 74177 a


1(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; 
2103-363, eff. 7-28-23; revised 9-25-23.)

3 Section 110-20. The Retailers' Occupation Tax Act is 
4amended by changing Section 3 as follows:

5 (35 ILCS 120/3) (from Ch. 120, par. 442)
6 Sec. 3. Except as provided in this Section, on or before 
7the twentieth day of each calendar month, every person engaged 
8in the business of selling tangible personal property at 
9retail in this State during the preceding calendar month shall 
10file a return with the Department, stating:
11  1. The name of the seller;
12  2. His residence address and the address of his 
13 principal place of business and the address of the 
14 principal place of business (if that is a different 
15 address) from which he engages in the business of selling 
16 tangible personal property at retail in this State;
17  3. Total amount of receipts received by him during the 
18 preceding calendar month or quarter, as the case may be, 
19 from sales of tangible personal property, and from 
20 services furnished, by him during such preceding calendar 
21 month or quarter;
22  4. Total amount received by him during the preceding 
23 calendar month or quarter on charge and time sales of 
24 tangible personal property, and from services furnished, 
 
 
10300HB4951sam002- 1021 -LRB103 38094 HLH 74177 a


1 by him prior to the month or quarter for which the return 
2 is filed;
3  5. Deductions allowed by law;
4  6. Gross receipts which were received by him during 
5 the preceding calendar month or quarter and upon the basis 
6 of which the tax is imposed, including gross receipts on 
7 food for human consumption that is to be consumed off the 
8 premises where it is sold (other than alcoholic beverages, 
9 food consisting of or infused with adult use cannabis, 
10 soft drinks, and food that has been prepared for immediate 
11 consumption) which were received during the preceding 
12 calendar month or quarter and upon which tax would have 
13 been due but for the 0% rate imposed under Public Act 
14 102-700;
15  7. The amount of credit provided in Section 2d of this 
16 Act;
17  8. The amount of tax due, including the amount of tax 
18 that would have been due on food for human consumption 
19 that is to be consumed off the premises where it is sold 
20 (other than alcoholic beverages, food consisting of or 
21 infused with adult use cannabis, soft drinks, and food 
22 that has been prepared for immediate consumption) but for 
23 the 0% rate imposed under Public Act 102-700;
24  9. The signature of the taxpayer; and
25  10. Such other reasonable information as the 
26 Department may require.
 
 
10300HB4951sam002- 1022 -LRB103 38094 HLH 74177 a


1 On and after January 1, 2018, except for returns required 
2to be filed prior to January 1, 2023 for motor vehicles, 
3watercraft, aircraft, and trailers that are required to be 
4registered with an agency of this State, with respect to 
5retailers whose annual gross receipts average $20,000 or more, 
6all returns required to be filed pursuant to this Act shall be 
7filed electronically. On and after January 1, 2023, with 
8respect to retailers whose annual gross receipts average 
9$20,000 or more, all returns required to be filed pursuant to 
10this Act, including, but not limited to, returns for motor 
11vehicles, watercraft, aircraft, and trailers that are required 
12to be registered with an agency of this State, shall be filed 
13electronically. Retailers who demonstrate that they do not 
14have access to the Internet or demonstrate hardship in filing 
15electronically may petition the Department to waive the 
16electronic filing requirement. 
17 If a taxpayer fails to sign a return within 30 days after 
18the proper notice and demand for signature by the Department, 
19the return shall be considered valid and any amount shown to be 
20due on the return shall be deemed assessed.
21 Each return shall be accompanied by the statement of 
22prepaid tax issued pursuant to Section 2e for which credit is 
23claimed.
24 Prior to October 1, 2003, and on and after September 1, 
252004, a retailer may accept a Manufacturer's Purchase Credit 
26certification from a purchaser in satisfaction of Use Tax as 
 
 
10300HB4951sam002- 1023 -LRB103 38094 HLH 74177 a


1provided in Section 3-85 of the Use Tax Act if the purchaser 
2provides the appropriate documentation as required by Section 
33-85 of the Use Tax Act. A Manufacturer's Purchase Credit 
4certification, accepted by a retailer prior to October 1, 2003 
5and on and after September 1, 2004 as provided in Section 3-85 
6of the Use Tax Act, may be used by that retailer to satisfy 
7Retailers' Occupation Tax liability in the amount claimed in 
8the certification, not to exceed 6.25% of the receipts subject 
9to tax from a qualifying purchase. A Manufacturer's Purchase 
10Credit reported on any original or amended return filed under 
11this Act after October 20, 2003 for reporting periods prior to 
12September 1, 2004 shall be disallowed. Manufacturer's Purchase 
13Credit reported on annual returns due on or after January 1, 
142005 will be disallowed for periods prior to September 1, 
152004. No Manufacturer's Purchase Credit may be used after 
16September 30, 2003 through August 31, 2004 to satisfy any tax 
17liability imposed under this Act, including any audit 
18liability.
19 Beginning on July 1, 2023 and through December 31, 2032, a 
20retailer may accept a Sustainable Aviation Fuel Purchase 
21Credit certification from an air common carrier-purchaser in 
22satisfaction of Use Tax on aviation fuel as provided in 
23Section 3-87 of the Use Tax Act if the purchaser provides the 
24appropriate documentation as required by Section 3-87 of the 
25Use Tax Act. A Sustainable Aviation Fuel Purchase Credit 
26certification accepted by a retailer in accordance with this 
 
 
10300HB4951sam002- 1024 -LRB103 38094 HLH 74177 a


1paragraph may be used by that retailer to satisfy Retailers' 
2Occupation Tax liability (but not in satisfaction of penalty 
3or interest) in the amount claimed in the certification, not 
4to exceed 6.25% of the receipts subject to tax from a sale of 
5aviation fuel. In addition, for a sale of aviation fuel to 
6qualify to earn the Sustainable Aviation Fuel Purchase Credit, 
7retailers must retain in their books and records a 
8certification from the producer of the aviation fuel that the 
9aviation fuel sold by the retailer and for which a sustainable 
10aviation fuel purchase credit was earned meets the definition 
11of sustainable aviation fuel under Section 3-87 of the Use Tax 
12Act. The documentation must include detail sufficient for the 
13Department to determine the number of gallons of sustainable 
14aviation fuel sold. 
15 The Department may require returns to be filed on a 
16quarterly basis. If so required, a return for each calendar 
17quarter shall be filed on or before the twentieth day of the 
18calendar month following the end of such calendar quarter. The 
19taxpayer shall also file a return with the Department for each 
20of the first 2 two months of each calendar quarter, on or 
21before the twentieth day of the following calendar month, 
22stating:
23  1. The name of the seller;
24  2. The address of the principal place of business from 
25 which he engages in the business of selling tangible 
26 personal property at retail in this State;
 
 
10300HB4951sam002- 1025 -LRB103 38094 HLH 74177 a


1  3. The total amount of taxable receipts received by 
2 him during the preceding calendar month from sales of 
3 tangible personal property by him during such preceding 
4 calendar month, including receipts from charge and time 
5 sales, but less all deductions allowed by law;
6  4. The amount of credit provided in Section 2d of this 
7 Act;
8  5. The amount of tax due; and
9  6. Such other reasonable information as the Department 
10 may require.
11 Every person engaged in the business of selling aviation 
12fuel at retail in this State during the preceding calendar 
13month shall, instead of reporting and paying tax as otherwise 
14required by this Section, report and pay such tax on a separate 
15aviation fuel tax return. The requirements related to the 
16return shall be as otherwise provided in this Section. 
17Notwithstanding any other provisions of this Act to the 
18contrary, retailers selling aviation fuel shall file all 
19aviation fuel tax returns and shall make all aviation fuel tax 
20payments by electronic means in the manner and form required 
21by the Department. For purposes of this Section, "aviation 
22fuel" means jet fuel and aviation gasoline. 
23 Beginning on October 1, 2003, any person who is not a 
24licensed distributor, importing distributor, or manufacturer, 
25as defined in the Liquor Control Act of 1934, but is engaged in 
26the business of selling, at retail, alcoholic liquor shall 
 
 
10300HB4951sam002- 1026 -LRB103 38094 HLH 74177 a


1file a statement with the Department of Revenue, in a format 
2and at a time prescribed by the Department, showing the total 
3amount paid for alcoholic liquor purchased during the 
4preceding month and such other information as is reasonably 
5required by the Department. The Department may adopt rules to 
6require that this statement be filed in an electronic or 
7telephonic format. Such rules may provide for exceptions from 
8the filing requirements of this paragraph. For the purposes of 
9this paragraph, the term "alcoholic liquor" shall have the 
10meaning prescribed in the Liquor Control Act of 1934.
11 Beginning on October 1, 2003, every distributor, importing 
12distributor, and manufacturer of alcoholic liquor as defined 
13in the Liquor Control Act of 1934, shall file a statement with 
14the Department of Revenue, no later than the 10th day of the 
15month for the preceding month during which transactions 
16occurred, by electronic means, showing the total amount of 
17gross receipts from the sale of alcoholic liquor sold or 
18distributed during the preceding month to purchasers; 
19identifying the purchaser to whom it was sold or distributed; 
20the purchaser's tax registration number; and such other 
21information reasonably required by the Department. A 
22distributor, importing distributor, or manufacturer of 
23alcoholic liquor must personally deliver, mail, or provide by 
24electronic means to each retailer listed on the monthly 
25statement a report containing a cumulative total of that 
26distributor's, importing distributor's, or manufacturer's 
 
 
10300HB4951sam002- 1027 -LRB103 38094 HLH 74177 a


1total sales of alcoholic liquor to that retailer no later than 
2the 10th day of the month for the preceding month during which 
3the transaction occurred. The distributor, importing 
4distributor, or manufacturer shall notify the retailer as to 
5the method by which the distributor, importing distributor, or 
6manufacturer will provide the sales information. If the 
7retailer is unable to receive the sales information by 
8electronic means, the distributor, importing distributor, or 
9manufacturer shall furnish the sales information by personal 
10delivery or by mail. For purposes of this paragraph, the term 
11"electronic means" includes, but is not limited to, the use of 
12a secure Internet website, e-mail, or facsimile.
13 If a total amount of less than $1 is payable, refundable or 
14creditable, such amount shall be disregarded if it is less 
15than 50 cents and shall be increased to $1 if it is 50 cents or 
16more.
17 Notwithstanding any other provision of this Act to the 
18contrary, retailers subject to tax on cannabis shall file all 
19cannabis tax returns and shall make all cannabis tax payments 
20by electronic means in the manner and form required by the 
21Department.
22 Beginning October 1, 1993, a taxpayer who has an average 
23monthly tax liability of $150,000 or more shall make all 
24payments required by rules of the Department by electronic 
25funds transfer. Beginning October 1, 1994, a taxpayer who has 
26an average monthly tax liability of $100,000 or more shall 
 
 
10300HB4951sam002- 1028 -LRB103 38094 HLH 74177 a


1make all payments required by rules of the Department by 
2electronic funds transfer. Beginning October 1, 1995, a 
3taxpayer who has an average monthly tax liability of $50,000 
4or more shall make all payments required by rules of the 
5Department by electronic funds transfer. Beginning October 1, 
62000, a taxpayer who has an annual tax liability of $200,000 or 
7more shall make all payments required by rules of the 
8Department by electronic funds transfer. The term "annual tax 
9liability" shall be the sum of the taxpayer's liabilities 
10under this Act, and under all other State and local occupation 
11and use tax laws administered by the Department, for the 
12immediately preceding calendar year. The term "average monthly 
13tax liability" shall be the sum of the taxpayer's liabilities 
14under this Act, and under all other State and local occupation 
15and use tax laws administered by the Department, for the 
16immediately preceding calendar year divided by 12. Beginning 
17on October 1, 2002, a taxpayer who has a tax liability in the 
18amount set forth in subsection (b) of Section 2505-210 of the 
19Department of Revenue Law shall make all payments required by 
20rules of the Department by electronic funds transfer.
21 Before August 1 of each year beginning in 1993, the 
22Department shall notify all taxpayers required to make 
23payments by electronic funds transfer. All taxpayers required 
24to make payments by electronic funds transfer shall make those 
25payments for a minimum of one year beginning on October 1.
26 Any taxpayer not required to make payments by electronic 
 
 
10300HB4951sam002- 1029 -LRB103 38094 HLH 74177 a


1funds transfer may make payments by electronic funds transfer 
2with the permission of the Department.
3 All taxpayers required to make payment by electronic funds 
4transfer and any taxpayers authorized to voluntarily make 
5payments by electronic funds transfer shall make those 
6payments in the manner authorized by the Department.
7 The Department shall adopt such rules as are necessary to 
8effectuate a program of electronic funds transfer and the 
9requirements of this Section.
10 Any amount which is required to be shown or reported on any 
11return or other document under this Act shall, if such amount 
12is not a whole-dollar amount, be increased to the nearest 
13whole-dollar amount in any case where the fractional part of a 
14dollar is 50 cents or more, and decreased to the nearest 
15whole-dollar amount where the fractional part of a dollar is 
16less than 50 cents.
17 If the retailer is otherwise required to file a monthly 
18return and if the retailer's average monthly tax liability to 
19the Department does not exceed $200, the Department may 
20authorize his returns to be filed on a quarter annual basis, 
21with the return for January, February, and March of a given 
22year being due by April 20 of such year; with the return for 
23April, May, and June of a given year being due by July 20 of 
24such year; with the return for July, August, and September of a 
25given year being due by October 20 of such year, and with the 
26return for October, November, and December of a given year 
 
 
10300HB4951sam002- 1030 -LRB103 38094 HLH 74177 a


1being due by January 20 of the following year.
2 If the retailer is otherwise required to file a monthly or 
3quarterly return and if the retailer's average monthly tax 
4liability with the Department does not exceed $50, the 
5Department may authorize his returns to be filed on an annual 
6basis, with the return for a given year being due by January 20 
7of the following year.
8 Such quarter annual and annual returns, as to form and 
9substance, shall be subject to the same requirements as 
10monthly returns.
11 Notwithstanding any other provision in this Act concerning 
12the time within which a retailer may file his return, in the 
13case of any retailer who ceases to engage in a kind of business 
14which makes him responsible for filing returns under this Act, 
15such retailer shall file a final return under this Act with the 
16Department not more than one month after discontinuing such 
17business.
18 Where the same person has more than one business 
19registered with the Department under separate registrations 
20under this Act, such person may not file each return that is 
21due as a single return covering all such registered 
22businesses, but shall file separate returns for each such 
23registered business.
24 In addition, with respect to motor vehicles, watercraft, 
25aircraft, and trailers that are required to be registered with 
26an agency of this State, except as otherwise provided in this 
 
 
10300HB4951sam002- 1031 -LRB103 38094 HLH 74177 a


1Section, every retailer selling this kind of tangible personal 
2property shall file, with the Department, upon a form to be 
3prescribed and supplied by the Department, a separate return 
4for each such item of tangible personal property which the 
5retailer sells, except that if, in the same transaction, (i) a 
6retailer of aircraft, watercraft, motor vehicles, or trailers 
7transfers more than one aircraft, watercraft, motor vehicle, 
8or trailer to another aircraft, watercraft, motor vehicle 
9retailer, or trailer retailer for the purpose of resale or 
10(ii) a retailer of aircraft, watercraft, motor vehicles, or 
11trailers transfers more than one aircraft, watercraft, motor 
12vehicle, or trailer to a purchaser for use as a qualifying 
13rolling stock as provided in Section 2-5 of this Act, then that 
14seller may report the transfer of all aircraft, watercraft, 
15motor vehicles, or trailers involved in that transaction to 
16the Department on the same uniform invoice-transaction 
17reporting return form. For purposes of this Section, 
18"watercraft" means a Class 2, Class 3, or Class 4 watercraft as 
19defined in Section 3-2 of the Boat Registration and Safety 
20Act, a personal watercraft, or any boat equipped with an 
21inboard motor.
22 In addition, with respect to motor vehicles, watercraft, 
23aircraft, and trailers that are required to be registered with 
24an agency of this State, every person who is engaged in the 
25business of leasing or renting such items and who, in 
26connection with such business, sells any such item to a 
 
 
10300HB4951sam002- 1032 -LRB103 38094 HLH 74177 a


1retailer for the purpose of resale is, notwithstanding any 
2other provision of this Section to the contrary, authorized to 
3meet the return-filing requirement of this Act by reporting 
4the transfer of all the aircraft, watercraft, motor vehicles, 
5or trailers transferred for resale during a month to the 
6Department on the same uniform invoice-transaction reporting 
7return form on or before the 20th of the month following the 
8month in which the transfer takes place. Notwithstanding any 
9other provision of this Act to the contrary, all returns filed 
10under this paragraph must be filed by electronic means in the 
11manner and form as required by the Department. 
12 Any retailer who sells only motor vehicles, watercraft, 
13aircraft, or trailers that are required to be registered with 
14an agency of this State, so that all retailers' occupation tax 
15liability is required to be reported, and is reported, on such 
16transaction reporting returns and who is not otherwise 
17required to file monthly or quarterly returns, need not file 
18monthly or quarterly returns. However, those retailers shall 
19be required to file returns on an annual basis.
20 The transaction reporting return, in the case of motor 
21vehicles or trailers that are required to be registered with 
22an agency of this State, shall be the same document as the 
23Uniform Invoice referred to in Section 5-402 of the Illinois 
24Vehicle Code and must show the name and address of the seller; 
25the name and address of the purchaser; the amount of the 
26selling price including the amount allowed by the retailer for 
 
 
10300HB4951sam002- 1033 -LRB103 38094 HLH 74177 a


1traded-in property, if any; the amount allowed by the retailer 
2for the traded-in tangible personal property, if any, to the 
3extent to which Section 1 of this Act allows an exemption for 
4the value of traded-in property; the balance payable after 
5deducting such trade-in allowance from the total selling 
6price; the amount of tax due from the retailer with respect to 
7such transaction; the amount of tax collected from the 
8purchaser by the retailer on such transaction (or satisfactory 
9evidence that such tax is not due in that particular instance, 
10if that is claimed to be the fact); the place and date of the 
11sale; a sufficient identification of the property sold; such 
12other information as is required in Section 5-402 of the 
13Illinois Vehicle Code, and such other information as the 
14Department may reasonably require.
15 The transaction reporting return in the case of watercraft 
16or aircraft must show the name and address of the seller; the 
17name and address of the purchaser; the amount of the selling 
18price including the amount allowed by the retailer for 
19traded-in property, if any; the amount allowed by the retailer 
20for the traded-in tangible personal property, if any, to the 
21extent to which Section 1 of this Act allows an exemption for 
22the value of traded-in property; the balance payable after 
23deducting such trade-in allowance from the total selling 
24price; the amount of tax due from the retailer with respect to 
25such transaction; the amount of tax collected from the 
26purchaser by the retailer on such transaction (or satisfactory 
 
 
10300HB4951sam002- 1034 -LRB103 38094 HLH 74177 a


1evidence that such tax is not due in that particular instance, 
2if that is claimed to be the fact); the place and date of the 
3sale, a sufficient identification of the property sold, and 
4such other information as the Department may reasonably 
5require.
6 Such transaction reporting return shall be filed not later 
7than 20 days after the day of delivery of the item that is 
8being sold, but may be filed by the retailer at any time sooner 
9than that if he chooses to do so. The transaction reporting 
10return and tax remittance or proof of exemption from the 
11Illinois use tax may be transmitted to the Department by way of 
12the State agency with which, or State officer with whom the 
13tangible personal property must be titled or registered (if 
14titling or registration is required) if the Department and 
15such agency or State officer determine that this procedure 
16will expedite the processing of applications for title or 
17registration.
18 With each such transaction reporting return, the retailer 
19shall remit the proper amount of tax due (or shall submit 
20satisfactory evidence that the sale is not taxable if that is 
21the case), to the Department or its agents, whereupon the 
22Department shall issue, in the purchaser's name, a use tax 
23receipt (or a certificate of exemption if the Department is 
24satisfied that the particular sale is tax exempt) which such 
25purchaser may submit to the agency with which, or State 
26officer with whom, he must title or register the tangible 
 
 
10300HB4951sam002- 1035 -LRB103 38094 HLH 74177 a


1personal property that is involved (if titling or registration 
2is required) in support of such purchaser's application for an 
3Illinois certificate or other evidence of title or 
4registration to such tangible personal property.
5 No retailer's failure or refusal to remit tax under this 
6Act precludes a user, who has paid the proper tax to the 
7retailer, from obtaining his certificate of title or other 
8evidence of title or registration (if titling or registration 
9is required) upon satisfying the Department that such user has 
10paid the proper tax (if tax is due) to the retailer. The 
11Department shall adopt appropriate rules to carry out the 
12mandate of this paragraph.
13 If the user who would otherwise pay tax to the retailer 
14wants the transaction reporting return filed and the payment 
15of the tax or proof of exemption made to the Department before 
16the retailer is willing to take these actions and such user has 
17not paid the tax to the retailer, such user may certify to the 
18fact of such delay by the retailer and may (upon the Department 
19being satisfied of the truth of such certification) transmit 
20the information required by the transaction reporting return 
21and the remittance for tax or proof of exemption directly to 
22the Department and obtain his tax receipt or exemption 
23determination, in which event the transaction reporting return 
24and tax remittance (if a tax payment was required) shall be 
25credited by the Department to the proper retailer's account 
26with the Department, but without the vendor's 2.1% or 1.75% 
 
 
10300HB4951sam002- 1036 -LRB103 38094 HLH 74177 a


1discount provided for in this Section being allowed. When the 
2user pays the tax directly to the Department, he shall pay the 
3tax in the same amount and in the same form in which it would 
4be remitted if the tax had been remitted to the Department by 
5the retailer.
6 Refunds made by the seller during the preceding return 
7period to purchasers, on account of tangible personal property 
8returned to the seller, shall be allowed as a deduction under 
9subdivision 5 of his monthly or quarterly return, as the case 
10may be, in case the seller had theretofore included the 
11receipts from the sale of such tangible personal property in a 
12return filed by him and had paid the tax imposed by this Act 
13with respect to such receipts.
14 Where the seller is a corporation, the return filed on 
15behalf of such corporation shall be signed by the president, 
16vice-president, secretary, or treasurer or by the properly 
17accredited agent of such corporation.
18 Where the seller is a limited liability company, the 
19return filed on behalf of the limited liability company shall 
20be signed by a manager, member, or properly accredited agent 
21of the limited liability company.
22 Except as provided in this Section, the retailer filing 
23the return under this Section shall, at the time of filing such 
24return, pay to the Department the amount of tax imposed by this 
25Act less a discount of 2.1% prior to January 1, 1990 and 1.75% 
26on and after January 1, 1990, or $5 per calendar year, 
 
 
10300HB4951sam002- 1037 -LRB103 38094 HLH 74177 a


1whichever is greater, which is allowed to reimburse the 
2retailer for the expenses incurred in keeping records, 
3preparing and filing returns, remitting the tax and supplying 
4data to the Department on request. On and after January 1, 
52021, a certified service provider, as defined in the Leveling 
6the Playing Field for Illinois Retail Act, filing the return 
7under this Section on behalf of a remote retailer shall, at the 
8time of such return, pay to the Department the amount of tax 
9imposed by this Act less a discount of 1.75%. A remote retailer 
10using a certified service provider to file a return on its 
11behalf, as provided in the Leveling the Playing Field for 
12Illinois Retail Act, is not eligible for the discount. 
13Beginning with returns due on or after January 1, 2025, the 
14vendor's discount allowed in this Section, the Service 
15Occupation Tax Act, the Use Tax Act, and the Service Use Tax 
16Act, including any local tax administered by the Department 
17and reported on the same return, shall not exceed $1,000 per 
18month in the aggregate for returns other than transaction 
19returns filed during the month. When determining the discount 
20allowed under this Section, retailers shall include the amount 
21of tax that would have been due at the 1% rate but for the 0% 
22rate imposed under Public Act 102-700. When determining the 
23discount allowed under this Section, retailers shall include 
24the amount of tax that would have been due at the 6.25% rate 
25but for the 1.25% rate imposed on sales tax holiday items under 
26Public Act 102-700. The discount under this Section is not 
 
 
10300HB4951sam002- 1038 -LRB103 38094 HLH 74177 a


1allowed for the 1.25% portion of taxes paid on aviation fuel 
2that is subject to the revenue use requirements of 49 U.S.C. 
347107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to 
4Section 2d of this Act shall be included in the amount on which 
5such 2.1% or 1.75% discount is computed. In the case of 
6retailers who report and pay the tax on a transaction by 
7transaction basis, as provided in this Section, such discount 
8shall be taken with each such tax remittance instead of when 
9such retailer files his periodic return, but, beginning with 
10returns due on or after January 1, 2025, the vendor's discount 
11allowed under this Section and the Use Tax Act, including any 
12local tax administered by the Department and reported on the 
13same transaction return, shall not exceed $1,000 per month for 
14all transaction returns filed during the month. The discount 
15allowed under this Section is allowed only for returns that 
16are filed in the manner required by this Act. The Department 
17may disallow the discount for retailers whose certificate of 
18registration is revoked at the time the return is filed, but 
19only if the Department's decision to revoke the certificate of 
20registration has become final. 
21 Before October 1, 2000, if the taxpayer's average monthly 
22tax liability to the Department under this Act, the Use Tax 
23Act, the Service Occupation Tax Act, and the Service Use Tax 
24Act, excluding any liability for prepaid sales tax to be 
25remitted in accordance with Section 2d of this Act, was 
26$10,000 or more during the preceding 4 complete calendar 
 
 
10300HB4951sam002- 1039 -LRB103 38094 HLH 74177 a


1quarters, he shall file a return with the Department each 
2month by the 20th day of the month next following the month 
3during which such tax liability is incurred and shall make 
4payments to the Department on or before the 7th, 15th, 22nd and 
5last day of the month during which such liability is incurred. 
6On and after October 1, 2000, if the taxpayer's average 
7monthly tax liability to the Department under this Act, the 
8Use Tax Act, the Service Occupation Tax Act, and the Service 
9Use Tax Act, excluding any liability for prepaid sales tax to 
10be remitted in accordance with Section 2d of this Act, was 
11$20,000 or more during the preceding 4 complete calendar 
12quarters, he shall file a return with the Department each 
13month by the 20th day of the month next following the month 
14during which such tax liability is incurred and shall make 
15payment to the Department on or before the 7th, 15th, 22nd and 
16last day of the month during which such liability is incurred. 
17If the month during which such tax liability is incurred began 
18prior to January 1, 1985, each payment shall be in an amount 
19equal to 1/4 of the taxpayer's actual liability for the month 
20or an amount set by the Department not to exceed 1/4 of the 
21average monthly liability of the taxpayer to the Department 
22for the preceding 4 complete calendar quarters (excluding the 
23month of highest liability and the month of lowest liability 
24in such 4 quarter period). If the month during which such tax 
25liability is incurred begins on or after January 1, 1985 and 
26prior to January 1, 1987, each payment shall be in an amount 
 
 
10300HB4951sam002- 1040 -LRB103 38094 HLH 74177 a


1equal to 22.5% of the taxpayer's actual liability for the 
2month or 27.5% of the taxpayer's liability for the same 
3calendar month of the preceding year. If the month during 
4which such tax liability is incurred begins on or after 
5January 1, 1987 and prior to January 1, 1988, each payment 
6shall be in an amount equal to 22.5% of the taxpayer's actual 
7liability for the month or 26.25% of the taxpayer's liability 
8for the same calendar month of the preceding year. If the month 
9during which such tax liability is incurred begins on or after 
10January 1, 1988, and prior to January 1, 1989, or begins on or 
11after January 1, 1996, each payment shall be in an amount equal 
12to 22.5% of the taxpayer's actual liability for the month or 
1325% of the taxpayer's liability for the same calendar month of 
14the preceding year. If the month during which such tax 
15liability is incurred begins on or after January 1, 1989, and 
16prior to January 1, 1996, each payment shall be in an amount 
17equal to 22.5% of the taxpayer's actual liability for the 
18month or 25% of the taxpayer's liability for the same calendar 
19month of the preceding year or 100% of the taxpayer's actual 
20liability for the quarter monthly reporting period. The amount 
21of such quarter monthly payments shall be credited against the 
22final tax liability of the taxpayer's return for that month. 
23Before October 1, 2000, once applicable, the requirement of 
24the making of quarter monthly payments to the Department by 
25taxpayers having an average monthly tax liability of $10,000 
26or more as determined in the manner provided above shall 
 
 
10300HB4951sam002- 1041 -LRB103 38094 HLH 74177 a


1continue until such taxpayer's average monthly liability to 
2the Department during the preceding 4 complete calendar 
3quarters (excluding the month of highest liability and the 
4month of lowest liability) is less than $9,000, or until such 
5taxpayer's average monthly liability to the Department as 
6computed for each calendar quarter of the 4 preceding complete 
7calendar quarter period is less than $10,000. However, if a 
8taxpayer can show the Department that a substantial change in 
9the taxpayer's business has occurred which causes the taxpayer 
10to anticipate that his average monthly tax liability for the 
11reasonably foreseeable future will fall below the $10,000 
12threshold stated above, then such taxpayer may petition the 
13Department for a change in such taxpayer's reporting status. 
14On and after October 1, 2000, once applicable, the requirement 
15of the making of quarter monthly payments to the Department by 
16taxpayers having an average monthly tax liability of $20,000 
17or more as determined in the manner provided above shall 
18continue until such taxpayer's average monthly liability to 
19the Department during the preceding 4 complete calendar 
20quarters (excluding the month of highest liability and the 
21month of lowest liability) is less than $19,000 or until such 
22taxpayer's average monthly liability to the Department as 
23computed for each calendar quarter of the 4 preceding complete 
24calendar quarter period is less than $20,000. However, if a 
25taxpayer can show the Department that a substantial change in 
26the taxpayer's business has occurred which causes the taxpayer 
 
 
10300HB4951sam002- 1042 -LRB103 38094 HLH 74177 a


1to anticipate that his average monthly tax liability for the 
2reasonably foreseeable future will fall below the $20,000 
3threshold stated above, then such taxpayer may petition the 
4Department for a change in such taxpayer's reporting status. 
5The Department shall change such taxpayer's reporting status 
6unless it finds that such change is seasonal in nature and not 
7likely to be long term. Quarter monthly payment status shall 
8be determined under this paragraph as if the rate reduction to 
90% in Public Act 102-700 on food for human consumption that is 
10to be consumed off the premises where it is sold (other than 
11alcoholic beverages, food consisting of or infused with adult 
12use cannabis, soft drinks, and food that has been prepared for 
13immediate consumption) had not occurred. For quarter monthly 
14payments due under this paragraph on or after July 1, 2023 and 
15through June 30, 2024, "25% of the taxpayer's liability for 
16the same calendar month of the preceding year" shall be 
17determined as if the rate reduction to 0% in Public Act 102-700 
18had not occurred. Quarter monthly payment status shall be 
19determined under this paragraph as if the rate reduction to 
201.25% in Public Act 102-700 on sales tax holiday items had not 
21occurred. For quarter monthly payments due on or after July 1, 
222023 and through June 30, 2024, "25% of the taxpayer's 
23liability for the same calendar month of the preceding year" 
24shall be determined as if the rate reduction to 1.25% in Public 
25Act 102-700 on sales tax holiday items had not occurred. If any 
26such quarter monthly payment is not paid at the time or in the 
 
 
10300HB4951sam002- 1043 -LRB103 38094 HLH 74177 a


1amount required by this Section, then the taxpayer shall be 
2liable for penalties and interest on the difference between 
3the minimum amount due as a payment and the amount of such 
4quarter monthly payment actually and timely paid, except 
5insofar as the taxpayer has previously made payments for that 
6month to the Department in excess of the minimum payments 
7previously due as provided in this Section. The Department 
8shall make reasonable rules and regulations to govern the 
9quarter monthly payment amount and quarter monthly payment 
10dates for taxpayers who file on other than a calendar monthly 
11basis.
12 The provisions of this paragraph apply before October 1, 
132001. Without regard to whether a taxpayer is required to make 
14quarter monthly payments as specified above, any taxpayer who 
15is required by Section 2d of this Act to collect and remit 
16prepaid taxes and has collected prepaid taxes which average in 
17excess of $25,000 per month during the preceding 2 complete 
18calendar quarters, shall file a return with the Department as 
19required by Section 2f and shall make payments to the 
20Department on or before the 7th, 15th, 22nd and last day of the 
21month during which such liability is incurred. If the month 
22during which such tax liability is incurred began prior to 
23September 1, 1985 (the effective date of Public Act 84-221), 
24each payment shall be in an amount not less than 22.5% of the 
25taxpayer's actual liability under Section 2d. If the month 
26during which such tax liability is incurred begins on or after 
 
 
10300HB4951sam002- 1044 -LRB103 38094 HLH 74177 a


1January 1, 1986, each payment shall be in an amount equal to 
222.5% of the taxpayer's actual liability for the month or 
327.5% of the taxpayer's liability for the same calendar month 
4of the preceding calendar year. If the month during which such 
5tax liability is incurred begins on or after January 1, 1987, 
6each payment shall be in an amount equal to 22.5% of the 
7taxpayer's actual liability for the month or 26.25% of the 
8taxpayer's liability for the same calendar month of the 
9preceding year. The amount of such quarter monthly payments 
10shall be credited against the final tax liability of the 
11taxpayer's return for that month filed under this Section or 
12Section 2f, as the case may be. Once applicable, the 
13requirement of the making of quarter monthly payments to the 
14Department pursuant to this paragraph shall continue until 
15such taxpayer's average monthly prepaid tax collections during 
16the preceding 2 complete calendar quarters is $25,000 or less. 
17If any such quarter monthly payment is not paid at the time or 
18in the amount required, the taxpayer shall be liable for 
19penalties and interest on such difference, except insofar as 
20the taxpayer has previously made payments for that month in 
21excess of the minimum payments previously due.
22 The provisions of this paragraph apply on and after 
23October 1, 2001. Without regard to whether a taxpayer is 
24required to make quarter monthly payments as specified above, 
25any taxpayer who is required by Section 2d of this Act to 
26collect and remit prepaid taxes and has collected prepaid 
 
 
10300HB4951sam002- 1045 -LRB103 38094 HLH 74177 a


1taxes that average in excess of $20,000 per month during the 
2preceding 4 complete calendar quarters shall file a return 
3with the Department as required by Section 2f and shall make 
4payments to the Department on or before the 7th, 15th, 22nd, 
5and last day of the month during which the liability is 
6incurred. Each payment shall be in an amount equal to 22.5% of 
7the taxpayer's actual liability for the month or 25% of the 
8taxpayer's liability for the same calendar month of the 
9preceding year. The amount of the quarter monthly payments 
10shall be credited against the final tax liability of the 
11taxpayer's return for that month filed under this Section or 
12Section 2f, as the case may be. Once applicable, the 
13requirement of the making of quarter monthly payments to the 
14Department pursuant to this paragraph shall continue until the 
15taxpayer's average monthly prepaid tax collections during the 
16preceding 4 complete calendar quarters (excluding the month of 
17highest liability and the month of lowest liability) is less 
18than $19,000 or until such taxpayer's average monthly 
19liability to the Department as computed for each calendar 
20quarter of the 4 preceding complete calendar quarters is less 
21than $20,000. If any such quarter monthly payment is not paid 
22at the time or in the amount required, the taxpayer shall be 
23liable for penalties and interest on such difference, except 
24insofar as the taxpayer has previously made payments for that 
25month in excess of the minimum payments previously due.
26 If any payment provided for in this Section exceeds the 
 
 
10300HB4951sam002- 1046 -LRB103 38094 HLH 74177 a


1taxpayer's liabilities under this Act, the Use Tax Act, the 
2Service Occupation Tax Act, and the Service Use Tax Act, as 
3shown on an original monthly return, the Department shall, if 
4requested by the taxpayer, issue to the taxpayer a credit 
5memorandum no later than 30 days after the date of payment. The 
6credit evidenced by such credit memorandum may be assigned by 
7the taxpayer to a similar taxpayer under this Act, the Use Tax 
8Act, the Service Occupation Tax Act, or the Service Use Tax 
9Act, in accordance with reasonable rules and regulations to be 
10prescribed by the Department. If no such request is made, the 
11taxpayer may credit such excess payment against tax liability 
12subsequently to be remitted to the Department under this Act, 
13the Use Tax Act, the Service Occupation Tax Act, or the Service 
14Use Tax Act, in accordance with reasonable rules and 
15regulations prescribed by the Department. If the Department 
16subsequently determined that all or any part of the credit 
17taken was not actually due to the taxpayer, the taxpayer's 
182.1% and 1.75% vendor's discount shall be reduced, if 
19necessary, to reflect by 2.1% or 1.75% of the difference 
20between the credit taken and that actually due, and that 
21taxpayer shall be liable for penalties and interest on such 
22difference.
23 If a retailer of motor fuel is entitled to a credit under 
24Section 2d of this Act which exceeds the taxpayer's liability 
25to the Department under this Act for the month for which the 
26taxpayer is filing a return, the Department shall issue the 
 
 
10300HB4951sam002- 1047 -LRB103 38094 HLH 74177 a


1taxpayer a credit memorandum for the excess.
2 Beginning January 1, 1990, each month the Department shall 
3pay into the Local Government Tax Fund, a special fund in the 
4State treasury which is hereby created, the net revenue 
5realized for the preceding month from the 1% tax imposed under 
6this Act.
7 Beginning January 1, 1990, each month the Department shall 
8pay into the County and Mass Transit District Fund, a special 
9fund in the State treasury which is hereby created, 4% of the 
10net revenue realized for the preceding month from the 6.25% 
11general rate other than aviation fuel sold on or after 
12December 1, 2019. This exception for aviation fuel only 
13applies for so long as the revenue use requirements of 49 
14U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
15 Beginning August 1, 2000, each month the Department shall 
16pay into the County and Mass Transit District Fund 20% of the 
17net revenue realized for the preceding month from the 1.25% 
18rate on the selling price of motor fuel and gasohol. If, in any 
19month, the tax on sales tax holiday items, as defined in 
20Section 2-8, is imposed at the rate of 1.25%, then the 
21Department shall pay 20% of the net revenue realized for that 
22month from the 1.25% rate on the selling price of sales tax 
23holiday items into the County and Mass Transit District Fund.
24 Beginning January 1, 1990, each month the Department shall 
25pay into the Local Government Tax Fund 16% of the net revenue 
26realized for the preceding month from the 6.25% general rate 
 
 
10300HB4951sam002- 1048 -LRB103 38094 HLH 74177 a


1on the selling price of tangible personal property other than 
2aviation fuel sold on or after December 1, 2019. This 
3exception for aviation fuel only applies for so long as the 
4revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 
547133 are binding on the State.
6 For aviation fuel sold on or after December 1, 2019, each 
7month the Department shall pay into the State Aviation Program 
8Fund 20% of the net revenue realized for the preceding month 
9from the 6.25% general rate on the selling price of aviation 
10fuel, less an amount estimated by the Department to be 
11required for refunds of the 20% portion of the tax on aviation 
12fuel under this Act, which amount shall be deposited into the 
13Aviation Fuel Sales Tax Refund Fund. The Department shall only 
14pay moneys into the State Aviation Program Fund and the 
15Aviation Fuel Sales Tax Refund Fund under this Act for so long 
16as the revenue use requirements of 49 U.S.C. 47107(b) and 49 
17U.S.C. 47133 are binding on the State. 
18 Beginning August 1, 2000, each month the Department shall 
19pay into the Local Government Tax Fund 80% of the net revenue 
20realized for the preceding month from the 1.25% rate on the 
21selling price of motor fuel and gasohol. If, in any month, the 
22tax on sales tax holiday items, as defined in Section 2-8, is 
23imposed at the rate of 1.25%, then the Department shall pay 80% 
24of the net revenue realized for that month from the 1.25% rate 
25on the selling price of sales tax holiday items into the Local 
26Government Tax Fund.
 
 
10300HB4951sam002- 1049 -LRB103 38094 HLH 74177 a


1 Beginning October 1, 2009, each month the Department shall 
2pay into the Capital Projects Fund an amount that is equal to 
3an amount estimated by the Department to represent 80% of the 
4net revenue realized for the preceding month from the sale of 
5candy, grooming and hygiene products, and soft drinks that had 
6been taxed at a rate of 1% prior to September 1, 2009 but that 
7are now taxed at 6.25%. 
8 Beginning July 1, 2011, each month the Department shall 
9pay into the Clean Air Act Permit Fund 80% of the net revenue 
10realized for the preceding month from the 6.25% general rate 
11on the selling price of sorbents used in Illinois in the 
12process of sorbent injection as used to comply with the 
13Environmental Protection Act or the federal Clean Air Act, but 
14the total payment into the Clean Air Act Permit Fund under this 
15Act and the Use Tax Act shall not exceed $2,000,000 in any 
16fiscal year. 
17 Beginning July 1, 2013, each month the Department shall 
18pay into the Underground Storage Tank Fund from the proceeds 
19collected under this Act, the Use Tax Act, the Service Use Tax 
20Act, and the Service Occupation Tax Act an amount equal to the 
21average monthly deficit in the Underground Storage Tank Fund 
22during the prior year, as certified annually by the Illinois 
23Environmental Protection Agency, but the total payment into 
24the Underground Storage Tank Fund under this Act, the Use Tax 
25Act, the Service Use Tax Act, and the Service Occupation Tax 
26Act shall not exceed $18,000,000 in any State fiscal year. As 
 
 
10300HB4951sam002- 1050 -LRB103 38094 HLH 74177 a


1used in this paragraph, the "average monthly deficit" shall be 
2equal to the difference between the average monthly claims for 
3payment by the fund and the average monthly revenues deposited 
4into the fund, excluding payments made pursuant to this 
5paragraph. 
6 Beginning July 1, 2015, of the remainder of the moneys 
7received by the Department under the Use Tax Act, the Service 
8Use Tax Act, the Service Occupation Tax Act, and this Act, each 
9month the Department shall deposit $500,000 into the State 
10Crime Laboratory Fund. 
11 Of the remainder of the moneys received by the Department 
12pursuant to this Act, (a) 1.75% thereof shall be paid into the 
13Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 
14and after July 1, 1989, 3.8% thereof shall be paid into the 
15Build Illinois Fund; provided, however, that if in any fiscal 
16year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 
17may be, of the moneys received by the Department and required 
18to be paid into the Build Illinois Fund pursuant to this Act, 
19Section 9 of the Use Tax Act, Section 9 of the Service Use Tax 
20Act, and Section 9 of the Service Occupation Tax Act, such Acts 
21being hereinafter called the "Tax Acts" and such aggregate of 
222.2% or 3.8%, as the case may be, of moneys being hereinafter 
23called the "Tax Act Amount", and (2) the amount transferred to 
24the Build Illinois Fund from the State and Local Sales Tax 
25Reform Fund shall be less than the Annual Specified Amount (as 
26hereinafter defined), an amount equal to the difference shall 
 
 
10300HB4951sam002- 1051 -LRB103 38094 HLH 74177 a


1be immediately paid into the Build Illinois Fund from other 
2moneys received by the Department pursuant to the Tax Acts; 
3the "Annual Specified Amount" means the amounts specified 
4below for fiscal years 1986 through 1993:
5Fiscal YearAnnual Specified Amount
61986$54,800,000
71987$76,650,000
81988$80,480,000
91989$88,510,000
101990$115,330,000
111991$145,470,000
121992$182,730,000
131993$206,520,000;
14and means the Certified Annual Debt Service Requirement (as 
15defined in Section 13 of the Build Illinois Bond Act) or the 
16Tax Act Amount, whichever is greater, for fiscal year 1994 and 
17each fiscal year thereafter; and further provided, that if on 
18the last business day of any month the sum of (1) the Tax Act 
19Amount required to be deposited into the Build Illinois Bond 
20Account in the Build Illinois Fund during such month and (2) 
21the amount transferred to the Build Illinois Fund from the 
22State and Local Sales Tax Reform Fund shall have been less than 
231/12 of the Annual Specified Amount, an amount equal to the 
24difference shall be immediately paid into the Build Illinois 
25Fund from other moneys received by the Department pursuant to 
26the Tax Acts; and, further provided, that in no event shall the 
 
 
10300HB4951sam002- 1052 -LRB103 38094 HLH 74177 a


1payments required under the preceding proviso result in 
2aggregate payments into the Build Illinois Fund pursuant to 
3this clause (b) for any fiscal year in excess of the greater of 
4(i) the Tax Act Amount or (ii) the Annual Specified Amount for 
5such fiscal year. The amounts payable into the Build Illinois 
6Fund under clause (b) of the first sentence in this paragraph 
7shall be payable only until such time as the aggregate amount 
8on deposit under each trust indenture securing Bonds issued 
9and outstanding pursuant to the Build Illinois Bond Act is 
10sufficient, taking into account any future investment income, 
11to fully provide, in accordance with such indenture, for the 
12defeasance of or the payment of the principal of, premium, if 
13any, and interest on the Bonds secured by such indenture and on 
14any Bonds expected to be issued thereafter and all fees and 
15costs payable with respect thereto, all as certified by the 
16Director of the Bureau of the Budget (now Governor's Office of 
17Management and Budget). If on the last business day of any 
18month in which Bonds are outstanding pursuant to the Build 
19Illinois Bond Act, the aggregate of moneys deposited in the 
20Build Illinois Bond Account in the Build Illinois Fund in such 
21month shall be less than the amount required to be transferred 
22in such month from the Build Illinois Bond Account to the Build 
23Illinois Bond Retirement and Interest Fund pursuant to Section 
2413 of the Build Illinois Bond Act, an amount equal to such 
25deficiency shall be immediately paid from other moneys 
26received by the Department pursuant to the Tax Acts to the 
 
 
10300HB4951sam002- 1053 -LRB103 38094 HLH 74177 a


1Build Illinois Fund; provided, however, that any amounts paid 
2to the Build Illinois Fund in any fiscal year pursuant to this 
3sentence shall be deemed to constitute payments pursuant to 
4clause (b) of the first sentence of this paragraph and shall 
5reduce the amount otherwise payable for such fiscal year 
6pursuant to that clause (b). The moneys received by the 
7Department pursuant to this Act and required to be deposited 
8into the Build Illinois Fund are subject to the pledge, claim 
9and charge set forth in Section 12 of the Build Illinois Bond 
10Act.
11 Subject to payment of amounts into the Build Illinois Fund 
12as provided in the preceding paragraph or in any amendment 
13thereto hereafter enacted, the following specified monthly 
14installment of the amount requested in the certificate of the 
15Chairman of the Metropolitan Pier and Exposition Authority 
16provided under Section 8.25f of the State Finance Act, but not 
17in excess of sums designated as "Total Deposit", shall be 
18deposited in the aggregate from collections under Section 9 of 
19the Use Tax Act, Section 9 of the Service Use Tax Act, Section 
209 of the Service Occupation Tax Act, and Section 3 of the 
21Retailers' Occupation Tax Act into the McCormick Place 
22Expansion Project Fund in the specified fiscal years.
23Fiscal YearTotal Deposit
241993         $0
251994 53,000,000
261995 58,000,000
 
 
10300HB4951sam002- 1054 -LRB103 38094 HLH 74177 a


11996 61,000,000
21997 64,000,000
31998 68,000,000
41999 71,000,000
52000 75,000,000
62001 80,000,000
72002 93,000,000
82003 99,000,000
92004103,000,000
102005108,000,000
112006113,000,000
122007119,000,000
132008126,000,000
142009132,000,000
152010139,000,000
162011146,000,000
172012153,000,000
182013161,000,000
192014170,000,000
202015179,000,000
212016189,000,000
222017199,000,000
232018210,000,000
242019221,000,000
252020233,000,000
262021300,000,000
 
 
10300HB4951sam002- 1055 -LRB103 38094 HLH 74177 a


       
12022300,000,000
22023300,000,000
32024 300,000,000
42025 300,000,000
52026 300,000,000
62027 375,000,000
72028 375,000,000
82029 375,000,000
92030 375,000,000
102031 375,000,000
112032 375,000,000
122033375,000,000
132034375,000,000
142035375,000,000
152036450,000,000
16and 
17each fiscal year
18thereafter that bonds
19are outstanding under
20Section 13.2 of the
21Metropolitan Pier and
22Exposition Authority Act,
23but not after fiscal year 2060.
24 Beginning July 20, 1993 and in each month of each fiscal 
25year thereafter, one-eighth of the amount requested in the 
26certificate of the Chairman of the Metropolitan Pier and 
 
 
10300HB4951sam002- 1056 -LRB103 38094 HLH 74177 a


1Exposition Authority for that fiscal year, less the amount 
2deposited into the McCormick Place Expansion Project Fund by 
3the State Treasurer in the respective month under subsection 
4(g) of Section 13 of the Metropolitan Pier and Exposition 
5Authority Act, plus cumulative deficiencies in the deposits 
6required under this Section for previous months and years, 
7shall be deposited into the McCormick Place Expansion Project 
8Fund, until the full amount requested for the fiscal year, but 
9not in excess of the amount specified above as "Total 
10Deposit", has been deposited.
11 Subject to payment of amounts into the Capital Projects 
12Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, 
13and the McCormick Place Expansion Project Fund pursuant to the 
14preceding paragraphs or in any amendments thereto hereafter 
15enacted, for aviation fuel sold on or after December 1, 2019, 
16the Department shall each month deposit into the Aviation Fuel 
17Sales Tax Refund Fund an amount estimated by the Department to 
18be required for refunds of the 80% portion of the tax on 
19aviation fuel under this Act. The Department shall only 
20deposit moneys into the Aviation Fuel Sales Tax Refund Fund 
21under this paragraph for so long as the revenue use 
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are 
23binding on the State. 
24 Subject to payment of amounts into the Build Illinois Fund 
25and the McCormick Place Expansion Project Fund pursuant to the 
26preceding paragraphs or in any amendments thereto hereafter 
 
 
10300HB4951sam002- 1057 -LRB103 38094 HLH 74177 a


1enacted, beginning July 1, 1993 and ending on September 30, 
22013, the Department shall each month pay into the Illinois 
3Tax Increment Fund 0.27% of 80% of the net revenue realized for 
4the preceding month from the 6.25% general rate on the selling 
5price of tangible personal property.
6 Subject to payment of amounts into the Build Illinois 
7Fund, the McCormick Place Expansion Project Fund, and the 
8Illinois Tax Increment Fund pursuant to the preceding 
9paragraphs or in any amendments to this Section hereafter 
10enacted, beginning on the first day of the first calendar 
11month to occur on or after August 26, 2014 (the effective date 
12of Public Act 98-1098), each month, from the collections made 
13under Section 9 of the Use Tax Act, Section 9 of the Service 
14Use Tax Act, Section 9 of the Service Occupation Tax Act, and 
15Section 3 of the Retailers' Occupation Tax Act, the Department 
16shall pay into the Tax Compliance and Administration Fund, to 
17be used, subject to appropriation, to fund additional auditors 
18and compliance personnel at the Department of Revenue, an 
19amount equal to 1/12 of 5% of 80% of the cash receipts 
20collected during the preceding fiscal year by the Audit Bureau 
21of the Department under the Use Tax Act, the Service Use Tax 
22Act, the Service Occupation Tax Act, the Retailers' Occupation 
23Tax Act, and associated local occupation and use taxes 
24administered by the Department. 
25 Subject to payments of amounts into the Build Illinois 
26Fund, the McCormick Place Expansion Project Fund, the Illinois 
 
 
10300HB4951sam002- 1058 -LRB103 38094 HLH 74177 a


1Tax Increment Fund, the Energy Infrastructure Fund, and the 
2Tax Compliance and Administration Fund as provided in this 
3Section, beginning on July 1, 2018 the Department shall pay 
4each month into the Downstate Public Transportation Fund the 
5moneys required to be so paid under Section 2-3 of the 
6Downstate Public Transportation Act.
7 Subject to successful execution and delivery of a 
8public-private agreement between the public agency and private 
9entity and completion of the civic build, beginning on July 1, 
102023, of the remainder of the moneys received by the 
11Department under the Use Tax Act, the Service Use Tax Act, the 
12Service Occupation Tax Act, and this Act, the Department shall 
13deposit the following specified deposits in the aggregate from 
14collections under the Use Tax Act, the Service Use Tax Act, the 
15Service Occupation Tax Act, and the Retailers' Occupation Tax 
16Act, as required under Section 8.25g of the State Finance Act 
17for distribution consistent with the Public-Private 
18Partnership for Civic and Transit Infrastructure Project Act. 
19The moneys received by the Department pursuant to this Act and 
20required to be deposited into the Civic and Transit 
21Infrastructure Fund are subject to the pledge, claim and 
22charge set forth in Section 25-55 of the Public-Private 
23Partnership for Civic and Transit Infrastructure Project Act. 
24As used in this paragraph, "civic build", "private entity", 
25"public-private agreement", and "public agency" have the 
26meanings provided in Section 25-10 of the Public-Private 
 
 
10300HB4951sam002- 1059 -LRB103 38094 HLH 74177 a


1Partnership for Civic and Transit Infrastructure Project Act. 
2  Fiscal Year.............................Total Deposit
3  2024.....................................$200,000,000
4  2025....................................$206,000,000 
5  2026....................................$212,200,000 
6  2027....................................$218,500,000 
7  2028....................................$225,100,000 
8  2029....................................$288,700,000 
9  2030....................................$298,900,000 
10  2031....................................$309,300,000 
11  2032....................................$320,100,000 
12  2033....................................$331,200,000 
13  2034....................................$341,200,000 
14  2035....................................$351,400,000 
15  2036....................................$361,900,000 
16  2037....................................$372,800,000 
17  2038....................................$384,000,000 
18  2039....................................$395,500,000 
19  2040....................................$407,400,000 
20  2041....................................$419,600,000 
21  2042....................................$432,200,000 
22  2043....................................$445,100,000 
23 Beginning July 1, 2021 and until July 1, 2022, subject to 
24the payment of amounts into the County and Mass Transit 
25District Fund, the Local Government Tax Fund, the Build 
26Illinois Fund, the McCormick Place Expansion Project Fund, the 
 
 
10300HB4951sam002- 1060 -LRB103 38094 HLH 74177 a


1Illinois Tax Increment Fund, and the Tax Compliance and 
2Administration Fund as provided in this Section, the 
3Department shall pay each month into the Road Fund the amount 
4estimated to represent 16% of the net revenue realized from 
5the taxes imposed on motor fuel and gasohol. Beginning July 1, 
62022 and until July 1, 2023, subject to the payment of amounts 
7into the County and Mass Transit District Fund, the Local 
8Government Tax Fund, the Build Illinois Fund, the McCormick 
9Place Expansion Project Fund, the Illinois Tax Increment Fund, 
10and the Tax Compliance and Administration Fund as provided in 
11this Section, the Department shall pay each month into the 
12Road Fund the amount estimated to represent 32% of the net 
13revenue realized from the taxes imposed on motor fuel and 
14gasohol. Beginning July 1, 2023 and until July 1, 2024, 
15subject to the payment of amounts into the County and Mass 
16Transit District Fund, the Local Government Tax Fund, the 
17Build Illinois Fund, the McCormick Place Expansion Project 
18Fund, the Illinois Tax Increment Fund, and the Tax Compliance 
19and Administration Fund as provided in this Section, the 
20Department shall pay each month into the Road Fund the amount 
21estimated to represent 48% of the net revenue realized from 
22the taxes imposed on motor fuel and gasohol. Beginning July 1, 
232024 and until July 1, 2025, subject to the payment of amounts 
24into the County and Mass Transit District Fund, the Local 
25Government Tax Fund, the Build Illinois Fund, the McCormick 
26Place Expansion Project Fund, the Illinois Tax Increment Fund, 
 
 
10300HB4951sam002- 1061 -LRB103 38094 HLH 74177 a


1and the Tax Compliance and Administration Fund as provided in 
2this Section, the Department shall pay each month into the 
3Road Fund the amount estimated to represent 64% of the net 
4revenue realized from the taxes imposed on motor fuel and 
5gasohol. Beginning on July 1, 2025, subject to the payment of 
6amounts into the County and Mass Transit District Fund, the 
7Local Government Tax Fund, the Build Illinois Fund, the 
8McCormick Place Expansion Project Fund, the Illinois Tax 
9Increment Fund, and the Tax Compliance and Administration Fund 
10as provided in this Section, the Department shall pay each 
11month into the Road Fund the amount estimated to represent 80% 
12of the net revenue realized from the taxes imposed on motor 
13fuel and gasohol. As used in this paragraph "motor fuel" has 
14the meaning given to that term in Section 1.1 of the Motor Fuel 
15Tax Law, and "gasohol" has the meaning given to that term in 
16Section 3-40 of the Use Tax Act.
17 Of the remainder of the moneys received by the Department 
18pursuant to this Act, 75% thereof shall be paid into the State 
19treasury and 25% shall be reserved in a special account and 
20used only for the transfer to the Common School Fund as part of 
21the monthly transfer from the General Revenue Fund in 
22accordance with Section 8a of the State Finance Act.
23 The Department may, upon separate written notice to a 
24taxpayer, require the taxpayer to prepare and file with the 
25Department on a form prescribed by the Department within not 
26less than 60 days after receipt of the notice an annual 
 
 
10300HB4951sam002- 1062 -LRB103 38094 HLH 74177 a


1information return for the tax year specified in the notice. 
2Such annual return to the Department shall include a statement 
3of gross receipts as shown by the retailer's last federal 
4Federal income tax return. If the total receipts of the 
5business as reported in the federal Federal income tax return 
6do not agree with the gross receipts reported to the 
7Department of Revenue for the same period, the retailer shall 
8attach to his annual return a schedule showing a 
9reconciliation of the 2 amounts and the reasons for the 
10difference. The retailer's annual return to the Department 
11shall also disclose the cost of goods sold by the retailer 
12during the year covered by such return, opening and closing 
13inventories of such goods for such year, costs of goods used 
14from stock or taken from stock and given away by the retailer 
15during such year, payroll information of the retailer's 
16business during such year and any additional reasonable 
17information which the Department deems would be helpful in 
18determining the accuracy of the monthly, quarterly, or annual 
19returns filed by such retailer as provided for in this 
20Section.
21 If the annual information return required by this Section 
22is not filed when and as required, the taxpayer shall be liable 
23as follows:
24  (i) Until January 1, 1994, the taxpayer shall be 
25 liable for a penalty equal to 1/6 of 1% of the tax due from 
26 such taxpayer under this Act during the period to be 
 
 
10300HB4951sam002- 1063 -LRB103 38094 HLH 74177 a


1 covered by the annual return for each month or fraction of 
2 a month until such return is filed as required, the 
3 penalty to be assessed and collected in the same manner as 
4 any other penalty provided for in this Act.
5  (ii) On and after January 1, 1994, the taxpayer shall 
6 be liable for a penalty as described in Section 3-4 of the 
7 Uniform Penalty and Interest Act.
8 The chief executive officer, proprietor, owner, or highest 
9ranking manager shall sign the annual return to certify the 
10accuracy of the information contained therein. Any person who 
11willfully signs the annual return containing false or 
12inaccurate information shall be guilty of perjury and punished 
13accordingly. The annual return form prescribed by the 
14Department shall include a warning that the person signing the 
15return may be liable for perjury.
16 The provisions of this Section concerning the filing of an 
17annual information return do not apply to a retailer who is not 
18required to file an income tax return with the United States 
19Government.
20 As soon as possible after the first day of each month, upon 
21certification of the Department of Revenue, the Comptroller 
22shall order transferred and the Treasurer shall transfer from 
23the General Revenue Fund to the Motor Fuel Tax Fund an amount 
24equal to 1.7% of 80% of the net revenue realized under this Act 
25for the second preceding month. Beginning April 1, 2000, this 
26transfer is no longer required and shall not be made.
 
 
10300HB4951sam002- 1064 -LRB103 38094 HLH 74177 a


1 Net revenue realized for a month shall be the revenue 
2collected by the State pursuant to this Act, less the amount 
3paid out during that month as refunds to taxpayers for 
4overpayment of liability.
5 For greater simplicity of administration, manufacturers, 
6importers and wholesalers whose products are sold at retail in 
7Illinois by numerous retailers, and who wish to do so, may 
8assume the responsibility for accounting and paying to the 
9Department all tax accruing under this Act with respect to 
10such sales, if the retailers who are affected do not make 
11written objection to the Department to this arrangement.
12 Any person who promotes, organizes, or provides retail 
13selling space for concessionaires or other types of sellers at 
14the Illinois State Fair, DuQuoin State Fair, county fairs, 
15local fairs, art shows, flea markets, and similar exhibitions 
16or events, including any transient merchant as defined by 
17Section 2 of the Transient Merchant Act of 1987, is required to 
18file a report with the Department providing the name of the 
19merchant's business, the name of the person or persons engaged 
20in merchant's business, the permanent address and Illinois 
21Retailers Occupation Tax Registration Number of the merchant, 
22the dates and location of the event, and other reasonable 
23information that the Department may require. The report must 
24be filed not later than the 20th day of the month next 
25following the month during which the event with retail sales 
26was held. Any person who fails to file a report required by 
 
 
10300HB4951sam002- 1065 -LRB103 38094 HLH 74177 a


1this Section commits a business offense and is subject to a 
2fine not to exceed $250.
3 Any person engaged in the business of selling tangible 
4personal property at retail as a concessionaire or other type 
5of seller at the Illinois State Fair, county fairs, art shows, 
6flea markets, and similar exhibitions or events, or any 
7transient merchants, as defined by Section 2 of the Transient 
8Merchant Act of 1987, may be required to make a daily report of 
9the amount of such sales to the Department and to make a daily 
10payment of the full amount of tax due. The Department shall 
11impose this requirement when it finds that there is a 
12significant risk of loss of revenue to the State at such an 
13exhibition or event. Such a finding shall be based on evidence 
14that a substantial number of concessionaires or other sellers 
15who are not residents of Illinois will be engaging in the 
16business of selling tangible personal property at retail at 
17the exhibition or event, or other evidence of a significant 
18risk of loss of revenue to the State. The Department shall 
19notify concessionaires and other sellers affected by the 
20imposition of this requirement. In the absence of notification 
21by the Department, the concessionaires and other sellers shall 
22file their returns as otherwise required in this Section.
23(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, 
24Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 
2565-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 
261-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, 
 
 
10300HB4951sam002- 1066 -LRB103 38094 HLH 74177 a


1eff. 7-28-23; revised 9-27-23.)

2 Section 110-25. The Prepaid Wireless 9-1-1 Surcharge Act 
3is amended by changing Section 20 as follows:

4 (50 ILCS 753/20)
5 Sec. 20. Administration of prepaid wireless 9-1-1 
6surcharge. 
7 (a) In the administration and enforcement of this Act, the 
8provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, 
95f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the 
10Retailers' Occupation Tax Act that are not inconsistent with 
11this Act, and Section 3-7 of the Uniform Penalty and Interest 
12Act shall apply, as far as practicable, to the subject matter 
13of this Act to the same extent as if those provisions were 
14included in this Act. References to "taxes" in these 
15incorporated Sections shall be construed to apply to the 
16administration, payment, and remittance of all surcharges 
17under this Act. The Department shall establish registration 
18and payment procedures that substantially coincide with the 
19registration and payment procedures that apply to the 
20Retailers' Occupation Tax Act. 
21 (b) A seller shall be permitted to deduct and retain 3% of 
22prepaid wireless 9-1-1 surcharges that are collected by the 
23seller from consumers and that are remitted and timely filed 
24with the Department. Beginning with returns due on or after 
 
 
10300HB4951sam002- 1067 -LRB103 38094 HLH 74177 a


1January 1, 2025, the 3% deduction allowed under this 
2subsection, including any local surcharge administered by the 
3Department and reported on the same return, shall not exceed 
4$1,000 per month. Beginning January 1, 2018, the seller is 
5allowed to deduct and retain a portion of the prepaid wireless 
69-1-1 surcharges as authorized by this subsection only if the 
7return is filed electronically as provided in Section 3 of the 
8Retailers' Occupation Tax Act. Sellers who demonstrate that 
9they do not have access to the Internet or demonstrate 
10hardship in filing electronically may petition the Department 
11to waive the electronic filing requirement. 
12 (c) Other than the amounts for deposit into the Municipal 
13Wireless Service Emergency Fund, the Department shall pay to 
14the State Treasurer all prepaid wireless E911 charges, 
15penalties, and interest collected under this Act for deposit 
16into the Statewide 9-1-1 Fund. On or before the 25th day of 
17each calendar month, the Department shall prepare and certify 
18to the Comptroller the amount available to the Illinois State 
19Police for distribution out of the Statewide 9-1-1 Fund. The 
20amount certified shall be the amount (not including credit 
21memoranda) collected during the second preceding calendar 
22month by the Department plus an amount the Department 
23determines is necessary to offset any amounts which were 
24erroneously paid to a different taxing body. The amount paid 
25to the Statewide 9-1-1 Fund shall not include any amount equal 
26to the amount of refunds made during the second preceding 
 
 
10300HB4951sam002- 1068 -LRB103 38094 HLH 74177 a


1calendar month by the Department of Revenue to retailers under 
2this Act or any amount that the Department determines is 
3necessary to offset any amounts which were payable to a 
4different taxing body but were erroneously paid to the 
5Statewide 9-1-1 Fund. The Illinois State Police shall 
6distribute the funds in accordance with Section 30 of the 
7Emergency Telephone Safety Act. The Department may deduct an 
8amount, not to exceed 2% of remitted charges, to be 
9transferred into the Tax Compliance and Administration Fund to 
10reimburse the Department for its direct costs of administering 
11the collection and remittance of prepaid wireless 9-1-1 
12surcharges. 
13 (d) The Department shall administer the collection of all 
149-1-1 surcharges and may adopt and enforce reasonable rules 
15relating to the administration and enforcement of the 
16provisions of this Act as may be deemed expedient. The 
17Department shall require all surcharges collected under this 
18Act to be reported on existing forms or combined forms, 
19including, but not limited to, Form ST-1. Any overpayments 
20received by the Department for liabilities reported on 
21existing or combined returns shall be applied as an 
22overpayment of retailers' occupation tax, use tax, service 
23occupation tax, or service use tax liability. 
24 (e) If a home rule municipality having a population in 
25excess of 500,000 as of the effective date of this amendatory 
26Act of the 97th General Assembly imposes an E911 surcharge 
 
 
10300HB4951sam002- 1069 -LRB103 38094 HLH 74177 a


1under subsection (a-5) of Section 15 of this Act, then the 
2Department shall pay to the State Treasurer all prepaid 
3wireless E911 charges, penalties, and interest collected for 
4deposit into the Municipal Wireless Service Emergency Fund. 
5All deposits into the Municipal Wireless Service Emergency 
6Fund shall be held by the State Treasurer as ex officio 
7custodian apart from all public moneys or funds of this State. 
8Any interest attributable to moneys in the Fund must be 
9deposited into the Fund. Moneys in the Municipal Wireless 
10Service Emergency Fund are not subject to appropriation. On or 
11before the 25th day of each calendar month, the Department 
12shall prepare and certify to the Comptroller the amount 
13available for disbursement to the home rule municipality out 
14of the Municipal Wireless Service Emergency Fund. The amount 
15to be paid to the Municipal Wireless Service Emergency Fund 
16shall be the amount (not including credit memoranda) collected 
17during the second preceding calendar month by the Department 
18plus an amount the Department determines is necessary to 
19offset any amounts which were erroneously paid to a different 
20taxing body. The amount paid to the Municipal Wireless Service 
21Emergency Fund shall not include any amount equal to the 
22amount of refunds made during the second preceding calendar 
23month by the Department to retailers under this Act or any 
24amount that the Department determines is necessary to offset 
25any amounts which were payable to a different taxing body but 
26were erroneously paid to the Municipal Wireless Service 
 
 
10300HB4951sam002- 1070 -LRB103 38094 HLH 74177 a


1Emergency Fund. Within 10 days after receipt by the 
2Comptroller of the certification provided for in this 
3subsection, the Comptroller shall cause the orders to be drawn 
4for the respective amounts in accordance with the directions 
5in the certification. The Department may deduct an amount, not 
6to exceed 2% of remitted charges, to be transferred into the 
7Tax Compliance and Administration Fund to reimburse the 
8Department for its direct costs of administering the 
9collection and remittance of prepaid wireless 9-1-1 
10surcharges. 
11(Source: P.A. 102-538, eff. 8-20-21.)

12
ARTICLE 115.


13 Section 115-5. The Business Corporation Act of 1983 is 
14amended by changing Sections 15.35 and 15.65 as follows:

15 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
16 (Text of Section from P.A. 102-16 and 103-8)
17 Sec. 15.35. Franchise taxes payable by domestic 
18corporations. For the privilege of exercising its franchises 
19in this State, each domestic corporation shall pay to the 
20Secretary of State the following franchise taxes, computed on 
21the basis, at the rates and for the periods prescribed in this 
22Act:
23  (a) An initial franchise tax at the time of filing its 
 
 
10300HB4951sam002- 1071 -LRB103 38094 HLH 74177 a


1 first report of issuance of shares.
2  (b) An additional franchise tax at the time of filing 
3 (1) a report of the issuance of additional shares, or (2) a 
4 report of an increase in paid-in capital without the 
5 issuance of shares, or (3) an amendment to the articles of 
6 incorporation or a report of cumulative changes in paid-in 
7 capital, whenever any amendment or such report discloses 
8 an increase in its paid-in capital over the amount thereof 
9 last reported in any document, other than an annual 
10 report, interim annual report or final transition annual 
11 report required by this Act to be filed in the office of 
12 the Secretary of State.
13  (c) An additional franchise tax at the time of filing 
14 a report of paid-in capital following a statutory merger 
15 or consolidation, which discloses that the paid-in capital 
16 of the surviving or new corporation immediately after the 
17 merger or consolidation is greater than the sum of the 
18 paid-in capital of all of the merged or consolidated 
19 corporations as last reported by them in any documents, 
20 other than annual reports, required by this Act to be 
21 filed in the office of the Secretary of State; and in 
22 addition, the surviving or new corporation shall be liable 
23 for a further additional franchise tax on the paid-in 
24 capital of each of the merged or consolidated corporations 
25 as last reported by them in any document, other than an 
26 annual report, required by this Act to be filed with the 
 
 
10300HB4951sam002- 1072 -LRB103 38094 HLH 74177 a


1 Secretary of State from their taxable year end to the next 
2 succeeding anniversary month or, in the case of a 
3 corporation which has established an extended filing 
4 month, the extended filing month of the surviving or new 
5 corporation; however if the taxable year ends within the 
6 2-month period immediately preceding the anniversary month 
7 or, in the case of a corporation which has established an 
8 extended filing month, the extended filing month of the 
9 surviving or new corporation the tax will be computed to 
10 the anniversary month or, in the case of a corporation 
11 which has established an extended filing month, the 
12 extended filing month of the surviving or new corporation 
13 in the next succeeding calendar year.
14  (d) An annual franchise tax payable each year with the 
15 annual report which the corporation is required by this 
16 Act to file.
17 On or after January 1, 2020 and prior to January 1, 2021, 
18the first $30 in liability is exempt from the tax imposed under 
19this Section. On or after January 1, 2021, and prior to January 
201, 2024, the first $1,000 in liability is exempt from the tax 
21imposed under this Section. On or after January 1, 2024, and 
22before January 1, 2025, the first $5,000 in liability is 
23exempt from the tax imposed under this Section. On and after 
24January 1, 2025, the first $10,000 in liability is exempt from 
25the tax imposed under this Section. 
26(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)

 
 
10300HB4951sam002- 1073 -LRB103 38094 HLH 74177 a


1 (Text of Section from P.A. 102-282, 102-558, and 103-8)
2 Sec. 15.35. Franchise taxes payable by domestic 
3corporations. For the privilege of exercising its franchises 
4in this State, each domestic corporation shall pay to the 
5Secretary of State the following franchise taxes, computed on 
6the basis, at the rates and for the periods prescribed in this 
7Act:
8  (a) An initial franchise tax at the time of filing its 
9 first report of issuance of shares.
10  (b) An additional franchise tax at the time of filing 
11 (1) a report of the issuance of additional shares, or (2) a 
12 report of an increase in paid-in capital without the 
13 issuance of shares, or (3) an amendment to the articles of 
14 incorporation or a report of cumulative changes in paid-in 
15 capital, whenever any amendment or such report discloses 
16 an increase in its paid-in capital over the amount thereof 
17 last reported in any document, other than an annual 
18 report, interim annual report or final transition annual 
19 report required by this Act to be filed in the office of 
20 the Secretary of State.
21  (c) An additional franchise tax at the time of filing 
22 a report of paid-in capital following a statutory merger 
23 or consolidation, which discloses that the paid-in capital 
24 of the surviving or new corporation immediately after the 
25 merger or consolidation is greater than the sum of the 
 
 
10300HB4951sam002- 1074 -LRB103 38094 HLH 74177 a


1 paid-in capital of all of the merged or consolidated 
2 corporations as last reported by them in any documents, 
3 other than annual reports, required by this Act to be 
4 filed in the office of the Secretary of State; and in 
5 addition, the surviving or new corporation shall be liable 
6 for a further additional franchise tax on the paid-in 
7 capital of each of the merged or consolidated corporations 
8 as last reported by them in any document, other than an 
9 annual report, required by this Act to be filed with the 
10 Secretary of State from their taxable year end to the next 
11 succeeding anniversary month or, in the case of a 
12 corporation which has established an extended filing 
13 month, the extended filing month of the surviving or new 
14 corporation; however if the taxable year ends within the 
15 2-month period immediately preceding the anniversary month 
16 or, in the case of a corporation which has established an 
17 extended filing month, the extended filing month of the 
18 surviving or new corporation the tax will be computed to 
19 the anniversary month or, in the case of a corporation 
20 which has established an extended filing month, the 
21 extended filing month of the surviving or new corporation 
22 in the next succeeding calendar year.
23  (d) An annual franchise tax payable each year with the 
24 annual report which the corporation is required by this 
25 Act to file.
26 On or after January 1, 2020 and prior to January 1, 2021, 
 
 
10300HB4951sam002- 1075 -LRB103 38094 HLH 74177 a


1the first $30 in liability is exempt from the tax imposed under 
2this Section. On or after January 1, 2021 and prior to January 
31, 2024, the first $1,000 in liability is exempt from the tax 
4imposed under this Section. On or after January 1, 2024, and 
5before January 1, 2025, the first $5,000 in liability is 
6exempt from the tax imposed under this Section. On and after 
7January 1, 2025, the first $10,000 in liability is exempt from 
8the tax imposed under this Section. 
9(Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21; 
10103-8, eff. 6-7-23.)

11 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
12 Sec. 15.65. Franchise taxes payable by foreign 
13corporations. For the privilege of exercising its authority to 
14transact such business in this State as set out in its 
15application therefor or any amendment thereto, each foreign 
16corporation shall pay to the Secretary of State the following 
17franchise taxes, computed on the basis, at the rates and for 
18the periods prescribed in this Act:
19  (a) An initial franchise tax at the time of filing its 
20 application for authority to transact business in this 
21 State.
22  (b) An additional franchise tax at the time of filing 
23 (1) a report of the issuance of additional shares, or (2) a 
24 report of an increase in paid-in capital without the 
25 issuance of shares, or (3) a report of cumulative changes 
 
 
10300HB4951sam002- 1076 -LRB103 38094 HLH 74177 a


1 in paid-in capital or a report of an exchange or 
2 reclassification of shares, whenever any such report 
3 discloses an increase in its paid-in capital over the 
4 amount thereof last reported in any document, other than 
5 an annual report, interim annual report or final 
6 transition annual report, required by this Act to be filed 
7 in the office of the Secretary of State.
8  (c) Whenever the corporation shall be a party to a 
9 statutory merger and shall be the surviving corporation, 
10 an additional franchise tax at the time of filing its 
11 report following merger, if such report discloses that the 
12 amount represented in this State of its paid-in capital 
13 immediately after the merger is greater than the aggregate 
14 of the amounts represented in this State of the paid-in 
15 capital of such of the merged corporations as were 
16 authorized to transact business in this State at the time 
17 of the merger, as last reported by them in any documents, 
18 other than annual reports, required by this Act to be 
19 filed in the office of the Secretary of State; and in 
20 addition, the surviving corporation shall be liable for a 
21 further additional franchise tax on the paid-in capital of 
22 each of the merged corporations as last reported by them 
23 in any document, other than an annual report, required by 
24 this Act to be filed with the Secretary of State, from 
25 their taxable year end to the next succeeding anniversary 
26 month or, in the case of a corporation which has 
 
 
10300HB4951sam002- 1077 -LRB103 38094 HLH 74177 a


1 established an extended filing month, the extended filing 
2 month of the surviving corporation; however if the taxable 
3 year ends within the 2-month period immediately preceding 
4 the anniversary month or the extended filing month of the 
5 surviving corporation, the tax will be computed to the 
6 anniversary or, extended filing month of the surviving 
7 corporation in the next succeeding calendar year.
8  (d) An annual franchise tax payable each year with any 
9 annual report which the corporation is required by this 
10 Act to file.
11 On or after January 1, 2020 and prior to January 1, 2021, 
12the first $30 in liability is exempt from the tax imposed under 
13this Section. On or after January 1, 2021 and before January 1, 
142024, the first $1,000 in liability is exempt from the tax 
15imposed under this Section. On and after January 1, 2024 and 
16before January 1, 2025, the first $5,000 in liability is 
17exempt from the tax imposed under this Section. On and after 
18January 1, 2025, the first $10,000 in liability is exempt from 
19the tax imposed under this Section. 
20(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21; 
21102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)

22
ARTICLE 120.


23 Section 120-5. The Sports Wagering Act is amended by 
24changing Section 25-90 as follows:

 
 
10300HB4951sam002- 1078 -LRB103 38094 HLH 74177 a


1 (230 ILCS 45/25-90)
2 Sec. 25-90. Tax; Sports Wagering Fund. 
3 (a) For the privilege of holding a license to operate 
4sports wagering under this Act until June 30, 2024, this State 
5shall impose and collect 15% of a master sports wagering 
6licensee's adjusted gross sports wagering receipts from sports 
7wagering. The accrual method of accounting shall be used for 
8purposes of calculating the amount of the tax owed by the 
9licensee.
10 The taxes levied and collected pursuant to this subsection 
11(a) are due and payable to the Board no later than the last day 
12of the month following the calendar month in which the 
13adjusted gross sports wagering receipts were received and the 
14tax obligation was accrued.
15 (a-5) In addition to the tax imposed under subsection (a) 
16of this Section, for the privilege of holding a license to 
17operate sports wagering under this Act, the State shall impose 
18and collect 2% of the adjusted gross receipts from sports 
19wagers that are placed within a home rule county with a 
20population of over 3,000,000 inhabitants, which shall be paid, 
21subject to appropriation from the General Assembly, from the 
22Sports Wagering Fund to that home rule county for the purpose 
23of enhancing the county's criminal justice system.
24 (b) The Sports Wagering Fund is hereby created as a 
25special fund in the State treasury. Except as otherwise 
 
 
10300HB4951sam002- 1079 -LRB103 38094 HLH 74177 a


1provided in this Act, all moneys collected under this Act by 
2the Board shall be deposited into the Sports Wagering Fund. 
3Through August 25, 2024, on On the 25th of each month, any 
4moneys remaining in the Sports Wagering Fund in excess of the 
5anticipated monthly expenditures from the Fund through the 
6next month, as certified by the Board to the State 
7Comptroller, shall be transferred by the State Comptroller and 
8the State Treasurer to the Capital Projects Fund. Beginning 
9September 25, 2024, on the 25th of each month, of the moneys 
10remaining in the Sports Wagering Fund in excess of the 
11anticipated monthly expenditures from the Fund through the 
12next month, as certified by the Board to the State 
13Comptroller, the State Comptroller shall direct and the State 
14Treasurer shall transfer 58% to the General Revenue Fund and 
1542% to the Capital Projects Fund. 
16 (c) Beginning with July 2021, and on a monthly basis 
17thereafter, the Board shall certify to the State Comptroller 
18the amount of license fees collected in the month for initial 
19licenses issued under this Act, except for occupational 
20licenses. As soon after certification as practicable, the 
21State Comptroller shall direct and the State Treasurer shall 
22transfer the certified amount from the Sports Wagering Fund to 
23the Rebuild Illinois Projects Fund. 
24 (d) Beginning on July 1, 2024, and for each 12-month 
25period thereafter, for the privilege of holding a license to 
26operate sports wagering under this Act, this State shall 
 
 
10300HB4951sam002- 1080 -LRB103 38094 HLH 74177 a


1impose privilege tax on the master sports licensee's adjusted 
2gross sports wagering receipts based on the following rates:
3  20% of annual adjusted gross sports wagering receipts 
4 up to and including $30,000,000.
5  25% of annual adjusted gross sports wagering receipts 
6 in excess of $30,000,000 but not exceeding $50,000,000.
7  30% of annual adjusted gross sports wagering receipts 
8 in excess of $50,000,000 but not exceeding $100,000,000.
9  35% of annual adjusted gross sports wagering receipts 
10 in excess of $100,000,000 but not exceeding $200,000,000.
11  40% of annual adjusted gross sports wagering receipts 
12 in excess of $200,000,000. 
13 The accrual method of accounting shall be used for 
14purposes of calculating the amount of the tax owed by the 
15licensee. 
16 The taxes levied and collected pursuant to this subsection 
17are due and payable to the Board no later than the last day of 
18the month following the calendar month in which the adjusted 
19gross sports wagering receipts were received and the tax 
20obligation was accrued.
21 (e) Annually, a master sports wagering licensee shall 
22transmit to the Board an audit of the financial transactions 
23and condition of the licensee's total operations. 
24Additionally, within 90 days after the end of each quarter of 
25each fiscal year, the master sports wagering licensee shall 
26transmit to the Board a compliance report on engagement 
 
 
10300HB4951sam002- 1081 -LRB103 38094 HLH 74177 a


1procedures determined by the Board. All audits and compliance 
2engagements shall be conducted by certified public accountants 
3selected by the Board. Each certified public accountant must 
4be registered in the State of Illinois under the Illinois 
5Public Accounting Act. The compensation for each certified 
6public accountant shall be paid directly by the master sports 
7wagering licensee to the certified public accountant. 
8(Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21; 
9102-687, eff. 12-17-21.)

10
ARTICLE 130.


11 Section 130-5. The Video Gaming Act is amended by changing 
12Section 60 as follows:

13 (230 ILCS 40/60)
14 Sec. 60. Imposition and distribution of tax.
15 (a) A tax of 30% is imposed on net terminal income and 
16shall be collected by the Board.
17 Of the tax collected under this subsection (a), 
18five-sixths shall be deposited into the Capital Projects Fund 
19and one-sixth shall be deposited into the Local Government 
20Video Gaming Distributive Fund. 
21 (b) Beginning on July 1, 2019, an additional tax of 3% is 
22imposed on net terminal income and shall be collected by the 
23Board.
 
 
10300HB4951sam002- 1082 -LRB103 38094 HLH 74177 a


1 Beginning on July 1, 2020, an additional tax of 1% is 
2imposed on net terminal income and shall be collected by the 
3Board.
4 Beginning on July 1, 2024, an additional tax of 1% is 
5imposed on net terminal income and shall be collected by the 
6Board. 
7 The tax collected under this subsection (b) shall be 
8deposited into the Capital Projects Fund. 
9 (c) Revenues generated from the play of video gaming 
10terminals shall be deposited by the terminal operator, who is 
11responsible for tax payments, in a specially created, separate 
12bank account maintained by the video gaming terminal operator 
13to allow for electronic fund transfers of moneys for tax 
14payment.
15 (d) Each licensed establishment, licensed truck stop 
16establishment, licensed large truck stop establishment, 
17licensed fraternal establishment, and licensed veterans 
18establishment shall maintain an adequate video gaming fund, 
19with the amount to be determined by the Board.
20 (e) The State's percentage of net terminal income shall be 
21reported and remitted to the Board within 15 days after the 
2215th day of each month and within 15 days after the end of each 
23month by the video terminal operator. A video terminal 
24operator who falsely reports or fails to report the amount due 
25required by this Section is guilty of a Class 4 felony and is 
26subject to termination of his or her license by the Board. Each 
 
 
10300HB4951sam002- 1083 -LRB103 38094 HLH 74177 a


1video terminal operator shall keep a record of net terminal 
2income in such form as the Board may require. All payments not 
3remitted when due shall be paid together with a penalty 
4assessment on the unpaid balance at a rate of 1.5% per month. 
5(Source: P.A. 101-31, eff. 6-28-19.)

6
ARTICLE 135.


7 Section 135-5. The Property Tax Code is amended by 
8changing Section 15-170 as follows:

9 (35 ILCS 200/15-170)
10 Sec. 15-170. Senior citizens homestead exemption.  
11 (a) An annual homestead exemption limited, except as 
12described here with relation to cooperatives or life care 
13facilities, to a maximum reduction set forth below from the 
14property's value, as equalized or assessed by the Department, 
15is granted for property that is occupied as a residence by a 
16person 65 years of age or older who is liable for paying real 
17estate taxes on the property and is an owner of record of the 
18property or has a legal or equitable interest therein as 
19evidenced by a written instrument, except for a leasehold 
20interest, other than a leasehold interest of land on which a 
21single family residence is located, which is occupied as a 
22residence by a person 65 years or older who has an ownership 
23interest therein, legal, equitable or as a lessee, and on 
 
 
10300HB4951sam002- 1084 -LRB103 38094 HLH 74177 a


1which he or she is liable for the payment of property taxes. 
2Before taxable year 2004, the maximum reduction shall be 
3$2,500 in counties with 3,000,000 or more inhabitants and 
4$2,000 in all other counties. For taxable years 2004 through 
52005, the maximum reduction shall be $3,000 in all counties. 
6For taxable years 2006 and 2007, the maximum reduction shall 
7be $3,500. For taxable years 2008 through 2011, the maximum 
8reduction is $4,000 in all counties. For taxable year 2012, 
9the maximum reduction is $5,000 in counties with 3,000,000 or 
10more inhabitants and $4,000 in all other counties. For taxable 
11years 2013 through 2016, the maximum reduction is $5,000 in 
12all counties. For taxable years 2017 through 2022, the maximum 
13reduction is $8,000 in counties with 3,000,000 or more 
14inhabitants and $5,000 in all other counties. For taxable 
15years 2023 and thereafter, the maximum reduction is $8,000 in 
16counties with 3,000,000 or more inhabitants and counties that 
17are contiguous to a county of 3,000,000 or more inhabitants 
18and $5,000 in all other counties. 
19 (b) For land improved with an apartment building owned and 
20operated as a cooperative, the maximum reduction from the 
21value of the property, as equalized by the Department, shall 
22be multiplied by the number of apartments or units occupied by 
23a person 65 years of age or older who is liable, by contract 
24with the owner or owners of record, for paying property taxes 
25on the property and is an owner of record of a legal or 
26equitable interest in the cooperative apartment building, 
 
 
10300HB4951sam002- 1085 -LRB103 38094 HLH 74177 a


1other than a leasehold interest. For land improved with a life 
2care facility, the maximum reduction from the value of the 
3property, as equalized by the Department, shall be multiplied 
4by the number of apartments or units occupied by persons 65 
5years of age or older, irrespective of any legal, equitable, 
6or leasehold interest in the facility, who are liable, under a 
7contract with the owner or owners of record of the facility, 
8for paying property taxes on the property. In a cooperative or 
9a life care facility where a homestead exemption has been 
10granted, the cooperative association or the management firm of 
11the cooperative or facility shall credit the savings resulting 
12from that exemption only to the apportioned tax liability of 
13the owner or resident who qualified for the exemption. Any 
14person who willfully refuses to so credit the savings shall be 
15guilty of a Class B misdemeanor. Under this Section and 
16Sections 15-175, 15-176, and 15-177, "life care facility" 
17means a facility, as defined in Section 2 of the Life Care 
18Facilities Act, with which the applicant for the homestead 
19exemption has a life care contract as defined in that Act.
20 (c) When a homestead exemption has been granted under this 
21Section and the person qualifying subsequently becomes a 
22resident of a facility licensed under the Assisted Living and 
23Shared Housing Act, the Nursing Home Care Act, the Specialized 
24Mental Health Rehabilitation Act of 2013, the ID/DD Community 
25Care Act, or the MC/DD Act, the exemption shall continue so 
26long as the residence continues to be occupied by the 
 
 
10300HB4951sam002- 1086 -LRB103 38094 HLH 74177 a


1qualifying person's spouse if the spouse is 65 years of age or 
2older, or if the residence remains unoccupied but is still 
3owned by the person qualified for the homestead exemption.
4 (d) A person who will be 65 years of age during the current 
5assessment year shall be eligible to apply for the homestead 
6exemption during that assessment year. Application shall be 
7made during the application period in effect for the county of 
8his residence.
9 (e) Beginning with assessment year 2003, for taxes payable 
10in 2004, property that is first occupied as a residence after 
11January 1 of any assessment year by a person who is eligible 
12for the senior citizens homestead exemption under this Section 
13must be granted a pro-rata exemption for the assessment year. 
14The amount of the pro-rata exemption is the exemption allowed 
15in the county under this Section divided by 365 and multiplied 
16by the number of days during the assessment year the property 
17is occupied as a residence by a person eligible for the 
18exemption under this Section. The chief county assessment 
19officer must adopt reasonable procedures to establish 
20eligibility for this pro-rata exemption.
21 (f) The assessor or chief county assessment officer may 
22determine the eligibility of a life care facility to receive 
23the benefits provided by this Section, by affidavit, 
24application, visual inspection, questionnaire or other 
25reasonable methods in order to ensure insure that the tax 
26savings resulting from the exemption are credited by the 
 
 
10300HB4951sam002- 1087 -LRB103 38094 HLH 74177 a


1management firm to the apportioned tax liability of each 
2qualifying resident. The assessor may request reasonable proof 
3that the management firm has so credited the exemption.
4 (g) The chief county assessment officer of each county 
5with less than 3,000,000 inhabitants shall provide to each 
6person allowed a homestead exemption under this Section a form 
7to designate any other person to receive a duplicate of any 
8notice of delinquency in the payment of taxes assessed and 
9levied under this Code on the property of the person receiving 
10the exemption. The duplicate notice shall be in addition to 
11the notice required to be provided to the person receiving the 
12exemption, and shall be given in the manner required by this 
13Code. The person filing the request for the duplicate notice 
14shall pay a fee of $5 to cover administrative costs to the 
15supervisor of assessments, who shall then file the executed 
16designation with the county collector. Notwithstanding any 
17other provision of this Code to the contrary, the filing of 
18such an executed designation requires the county collector to 
19provide duplicate notices as indicated by the designation. A 
20designation may be rescinded by the person who executed such 
21designation at any time, in the manner and form required by the 
22chief county assessment officer.
23 (h) The assessor or chief county assessment officer may 
24determine the eligibility of residential property to receive 
25the homestead exemption provided by this Section by 
26application, visual inspection, questionnaire or other 
 
 
10300HB4951sam002- 1088 -LRB103 38094 HLH 74177 a


1reasonable methods. The determination shall be made in 
2accordance with guidelines established by the Department.
3 (i) In counties with 3,000,000 or more inhabitants, for 
4taxable years 2010 through 2018, and beginning again in 
5taxable year 2024, each taxpayer who has been granted an 
6exemption under this Section must reapply on an annual basis. 
7 If a reapplication is required, then the chief county 
8assessment officer shall mail the application to the taxpayer 
9at least 60 days prior to the last day of the application 
10period for the county. 
11 For taxable years 2019 and thereafter through 2023, in 
12counties with 3,000,000 or more inhabitants, a taxpayer who 
13has been granted an exemption under this Section need not 
14reapply. However, if the property ceases to be qualified for 
15the exemption under this Section in any year for which a 
16reapplication is not required under this Section, then the 
17owner of record of the property shall notify the chief county 
18assessment officer that the property is no longer qualified. 
19In addition, for taxable years 2019 and thereafter through 
202023, the chief county assessment officer of a county with 
213,000,000 or more inhabitants shall enter into an 
22intergovernmental agreement with the county clerk of that 
23county and the Department of Public Health, as well as any 
24other appropriate governmental agency, to obtain information 
25that documents the death of a taxpayer who has been granted an 
26exemption under this Section. Notwithstanding any other 
 
 
10300HB4951sam002- 1089 -LRB103 38094 HLH 74177 a


1provision of law, the county clerk and the Department of 
2Public Health shall provide that information to the chief 
3county assessment officer. The Department of Public Health 
4shall supply this information no less frequently than every 
5calendar quarter. Information concerning the death of a 
6taxpayer may be shared with the county treasurer. The chief 
7county assessment officer shall also enter into a data 
8exchange agreement with the Social Security Administration or 
9its agent to obtain access to the information regarding deaths 
10in possession of the Social Security Administration. The chief 
11county assessment officer shall, subject to the notice 
12requirements under subsection (m) of Section 9-275, terminate 
13the exemption under this Section if the information obtained 
14indicates that the property is no longer qualified for the 
15exemption. In counties with 3,000,000 or more inhabitants, the 
16assessor and the county clerk recorder of deeds shall 
17establish policies and practices for the regular exchange of 
18information for the purpose of alerting the assessor whenever 
19the transfer of ownership of any property receiving an 
20exemption under this Section has occurred. When such a 
21transfer occurs, the assessor shall mail a notice to the new 
22owner of the property (i) informing the new owner that the 
23exemption will remain in place through the year of the 
24transfer, after which it will be canceled, and (ii) providing 
25information pertaining to the rules for reapplying for the 
26exemption if the owner qualifies. In counties with 3,000,000 
 
 
10300HB4951sam002- 1090 -LRB103 38094 HLH 74177 a


1or more inhabitants, the chief county assessment official 
2shall conduct, by no later than December 31 of the first year 
3of each reassessment cycle, as determined by Section 9-220, a 
4review audits of all exemptions granted under this Section for 
5the preceding reassessment cycle under this Section no later 
6than December 31, 2022 and no later than December 31, 2024. The 
7review audit shall be designed to ascertain whether any senior 
8homestead exemptions have been granted erroneously. If it is 
9determined that a senior homestead exemption has been 
10erroneously applied to a property, the chief county assessment 
11officer shall make use of the appropriate provisions of 
12Section 9-275 in relation to the property that received the 
13erroneous homestead exemption. 
14 (j) In counties with less than 3,000,000 inhabitants, the 
15county board may by resolution provide that if a person has 
16been granted a homestead exemption under this Section, the 
17person qualifying need not reapply for the exemption. In 
18counties in which the county board passes such a resolution, 
19the chief county assessment official shall, prior to the 
20submission of the final abstract for the first year of each 
21reassessment cycle, as determined by Section 9-215, review all 
22exemptions granted for the preceding reassessment cycle under 
23this Section. The review shall be designed to ascertain 
24whether any senior homestead exemptions have been granted 
25erroneously. 
26 In counties with less than 3,000,000 inhabitants, if the 
 
 
10300HB4951sam002- 1091 -LRB103 38094 HLH 74177 a


1assessor or chief county assessment officer requires annual 
2application for verification of eligibility for an exemption 
3once granted under this Section, the application shall be 
4mailed to the taxpayer.
5 (l) The assessor or chief county assessment officer shall 
6notify each person who qualifies for an exemption under this 
7Section that the person may also qualify for deferral of real 
8estate taxes under the Senior Citizens Real Estate Tax 
9Deferral Act. The notice shall set forth the qualifications 
10needed for deferral of real estate taxes, the address and 
11telephone number of county collector, and a statement that 
12applications for deferral of real estate taxes may be obtained 
13from the county collector.
14 (m) Notwithstanding Sections 6 and 8 of the State Mandates 
15Act, no reimbursement by the State is required for the 
16implementation of any mandate created by this Section.
17(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20; 
18102-895, eff. 5-23-22.)

19
ARTICLE 140.


20 Section 140-5. The Property Tax Code is amended by 
21changing Sections 10-40 and 10-50 as follows:

22 (35 ILCS 200/10-40)
23 Sec. 10-40. Historic Residence Assessment Freeze Law; 
 
 
10300HB4951sam002- 1092 -LRB103 38094 HLH 74177 a


1definitions. This Section and Sections 10-45 through 10-85 may 
2be cited as the Historic Residence Assessment Freeze Law. As 
3used in this Section and Sections 10-45 through 10-85: 
4  (a) "Director" means the Director of Historic 
5 Preservation. 
6  (b) "Approved county or municipal landmark ordinance" 
7 means a county or municipal ordinance approved by the 
8 Director. 
9  (c) "Historic building" means an owner-occupied single 
10 family residence or an owner-occupied multi-family 
11 residence and the tract, lot or parcel upon which it is 
12 located, or a building or buildings owned and operated as 
13 a cooperative, if: 
14   (1) individually listed on the National Register 
15 of Historic Places or the Illinois Register of 
16 Historic Places; 
17   (2) individually designated pursuant to an 
18 approved county or municipal landmark ordinance; or 
19   (3) within a district listed on the National 
20 Register of Historic Places or designated pursuant to 
21 an approved county or municipal landmark ordinance, if 
22 the Director determines that the building is of 
23 historic significance to the district in which it is 
24 located. 
25 Historic building does not mean an individual unit of a 
26 cooperative. 
 
 
10300HB4951sam002- 1093 -LRB103 38094 HLH 74177 a


1  (d) "Assessment officer" means the chief county 
2 assessment officer. 
3  (e) "Certificate of rehabilitation" means the 
4 certificate issued by the Director upon the renovation, 
5 restoration, preservation or rehabilitation of an historic 
6 building under this Code. 
7  (f) "Rehabilitation period" means the period of time 
8 necessary to renovate, restore, preserve or rehabilitate 
9 an historic building as determined by the Director. 
10  (g) "Standards for rehabilitation" means the Secretary 
11 of Interior's standards for rehabilitation as promulgated 
12 by the U.S. Department of the Interior. 
13  (h) "Fair cash value" means the fair cash value of the 
14 historic building, as finally determined for that year by 
15 the assessment officer, board of review, Property Tax 
16 Appeal Board, or court on the basis of the assessment 
17 officer's property record card, representing the value of 
18 the property prior to the commencement of rehabilitation 
19 without consideration of any reduction reflecting value 
20 during the rehabilitation work. The changes made to this 
21 Section by this amendatory Act of the 103rd General 
22 Assembly are declarative of existing law and shall not be 
23 construed as a new enactment.  
24  (i) "Base year valuation" means the fair cash value of 
25 the historic building for the year in which the 
26 rehabilitation period begins but prior to the commencement 
 
 
10300HB4951sam002- 1094 -LRB103 38094 HLH 74177 a


1 of the rehabilitation and does not include any reduction 
2 in value during the rehabilitation work. 
3  (j) "Adjustment in value" means the difference for any 
4 year between the then current fair cash value and the base 
5 year valuation. 
6  (k) "Eight-year valuation period" means the 8 years 
7 from the date of the issuance of the certificate of 
8 rehabilitation. 
9  (l) "Adjustment valuation period" means the 4 years 
10 following the 8 year valuation period. 
11  (m) "Substantial rehabilitation" means interior or 
12 exterior rehabilitation work that preserves the historic 
13 building in a manner that significantly improves its 
14 condition. 
15  (n) "Approved local government" means a local 
16 government that has been certified by the Director as: 
17   (1) enforcing appropriate legislation for the 
18 designation of historic buildings; 
19   (2) having established an adequate and qualified 
20 historic review commission; 
21   (3) maintaining a system for the survey and 
22 inventory of historic properties; 
23   (4) providing for adequate public participation in 
24 the local historic preservation program; and 
25   (5) maintaining a system for reviewing 
26 applications under this Section in accordance with 
 
 
10300HB4951sam002- 1095 -LRB103 38094 HLH 74177 a


1 rules and regulations promulgated by the Director. 
2  (o) "Cooperative" means a building or buildings and 
3 the tract, lot, or parcel on which the building or 
4 buildings are located, if the building or buildings are 
5 devoted to residential uses by the owners and fee title to 
6 the land and building or buildings is owned by a 
7 corporation or other legal entity in which the 
8 shareholders or other co-owners each also have a long-term 
9 proprietary lease or other long-term arrangement of 
10 exclusive possession for a specific unit of occupancy 
11 space located within the same building or buildings. 
12  (p) "Owner", in the case of a cooperative, means the 
13 Association. 
14  (q) "Association", in the case of a cooperative, means 
15 the entity responsible for the administration of a 
16 cooperative, which entity may be incorporated or 
17 unincorporated, profit or nonprofit. 
18  (r) "Owner-occupied single family residence" means a 
19 residence in which the title holder of record (i) holds 
20 fee simple ownership and (ii) occupies the property as 
21 his, her, or their principal residence. 
22  (s) "Owner-occupied multi-family residence" means 
23 residential property comprised of not more than 6 living 
24 units in which the title holder of record (i) holds fee 
25 simple ownership and (ii) occupies one unit as his, her, 
26 or their principal residence. The remaining units may be 
 
 
10300HB4951sam002- 1096 -LRB103 38094 HLH 74177 a


1 leased.
2 The changes made to this Section by this amendatory Act of 
3the 91st General Assembly are declarative of existing law and 
4shall not be construed as a new enactment.
5(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)

6 (35 ILCS 200/10-50)
7 Sec. 10-50. Valuation after 8 year valuation period.  
8 (a) For the 4 years after the expiration of the 8-year 
9valuation period, the valuation for purposes of computing the 
10assessed valuation shall not exceed the following be as 
11follows:
12  For the first year, the base year valuation plus 25% 
13 of the adjustment in value.
14  For the second year, the base year valuation plus 50% 
15 of the adjustment in value.
16  For the third year, the base year valuation plus 75% 
17 of the adjustment in value.
18  For the fourth year, the then current fair cash value.
19 (b) If the current fair cash value during the adjustment 
20valuation period is less than the base year valuation with the 
21applicable adjustment, the assessment shall be based on the 
22current fair cash value. The changes made to this Section by 
23this amendatory Act of the 103rd General Assembly are 
24declarative of existing law and shall not be construed as a new 
25enactment. 
 
 
10300HB4951sam002- 1097 -LRB103 38094 HLH 74177 a


1(Source: P.A. 82-1023; 88-455.)

2
ARTICLE 145.


3 Section 145-5. The Property Tax Code is amended by 
4changing Section 15-40 as follows:

5 (35 ILCS 200/15-40)
6 Sec. 15-40. Religious purposes, orphanages, or school and 
7religious purposes.
8 (a) Property used exclusively for:
9  (1) religious purposes, or
10  (2) school and religious purposes, or
11  (3) orphanages
12qualifies for exemption as long as it is not used with a view 
13to profit.
14 (b) Property that is owned by
15  (1) churches or
16  (2) religious institutions or
17  (3) religious denominations
18and that is used in conjunction therewith as housing 
19facilities provided for ministers (including bishops, district 
20superintendents and similar church officials whose ministerial 
21duties are not limited to a single congregation), their 
22spouses, children and domestic workers, performing the duties 
23of their vocation as ministers at such churches or religious 
 
 
10300HB4951sam002- 1098 -LRB103 38094 HLH 74177 a


1institutions or for such religious denominations, including 
2the convents and monasteries where persons engaged in 
3religious activities reside also qualifies for exemption. 
4 A parsonage, convent or monastery or other housing 
5facility shall be considered under this Section to be 
6exclusively used for religious purposes when the persons who 
7perform religious related activities shall, as a condition of 
8their employment or association, reside in the facility.
9 (c) In Cook County, whenever any interest in a property 
10exempt under this Section is transferred, notice of that 
11transfer must be filed with the county clerk recorder. The 
12chief county assessment officer shall prepare and make 
13available a form notice for this purpose. Whenever a notice is 
14filed, the county clerk recorder shall transmit a copy of that 
15recorded notice to the chief county assessment officer within 
1614 days after receipt.
17(Source: P.A. 92-333, eff. 8-10-01.)

18
ARTICLE 150.


19 Section 150-1. Short title. This Act may be cited as the 
20Interchange Fee Prohibition Act. References in this Article to 
21"this Act" mean this Article.

22 Section 150-5. Definitions. As used in this Act:
23 "Acquirer bank" means a member of a payment card network 
 
 
10300HB4951sam002- 1099 -LRB103 38094 HLH 74177 a


1that contracts with a merchant for the settlement of 
2electronic payment transactions. An acquirer bank may contract 
3directly with merchants or indirectly through a processor to 
4process electronic payment transactions.
5 "Authorization" means the process through which a merchant 
6requests approval for an electronic payment transaction from 
7the issuer.
8 "Clearance" means the process of transmitting final 
9transaction data from a merchant to an issuer for posting to 
10the cardholder's account and the calculation of fees and 
11charges, including interchange fees, that apply to the issuer 
12and the merchant. 
13 "Credit card" means a card, plate, coupon book, or other 
14credit device existing for the purpose of obtaining money, 
15property, labor, or services on credit. 
16 "Debit card" means a card or other payment code or device 
17issued or approved for use through a payment card network to 
18debit an asset account, regardless of the purpose for which 
19the account is established, whether authorization is based on 
20a signature, a personal identification number, or other means. 
21"Debit card" includes a general use prepaid card, as defined 
22in 15 U.S.C. 16931-1. "Debit card" does not include paper 
23checks.
24 "Electronic payment transaction" means a transaction in 
25which a person uses a debit card, a credit card, or other 
26payment code or device issued or approved through a payment 
 
 
10300HB4951sam002- 1100 -LRB103 38094 HLH 74177 a


1card network to debit a deposit account or use a line of 
2credit, whether authorization is based on a signature, a 
3personal identification number, or other means.
4 "Gratuity" means a voluntary monetary contribution to an 
5employee from a guest, patron, or customer in connection with 
6services rendered.
7 "Interchange fee" means a fee established, charged, or 
8received by a payment card network for the purpose of 
9compensating the issuer for its involvement in an electronic 
10payment transaction.
11 "Issuer" means a person issuing a debit card or credit 
12card or the issuer's agent.
13 "Merchant" means a person that collects and remits a tax. 
14 "Payment card network" means an entity that:
15  (1) directly or through licensed members, processors, 
16 or agents, provides the proprietary services, 
17 infrastructure, and software to route information and data 
18 for the purpose of conducting electronic payment 
19 transaction authorization, clearance, and settlement; and
20  (2) a merchant uses to accept as a form of payment a 
21 brand of debit card, credit card, or other device that may 
22 be used to carry out electronic payment transactions.
23 "Person" means any individual, firm, public or private 
24corporation, government, partnership, association, or any 
25other organization or entity.
26 "Processor" means an entity that facilitates, services, 
 
 
10300HB4951sam002- 1101 -LRB103 38094 HLH 74177 a


1processes, or manages the debit or credit authorization, 
2billing, transfer, payment procedures, or settlement with 
3respect to any electronic payment transaction.
4 "Settlement" means the process of transmitting sales 
5information to the issuing bank for collection and 
6reimbursement of funds to the merchant and calculating and 
7reporting the net transaction amount to the issuer and 
8merchant for an electronic payment transaction that is 
9cleared.
10 "Tax" means any use and occupation tax or excise tax 
11imposed by the State or a unit of local government in the 
12State.
13 "Tax documentation" means documentation sufficient for the 
14payment card network to determine the total amount of the 
15electronic payment transaction and the tax or gratuity amount 
16of the transaction. Tax documentation may be related to a 
17single electronic payment transaction or multiple electronic 
18payment transactions aggregated over a period of time. 
19Examples of tax documentation include, but are not limited to, 
20invoices, receipts, journals, ledgers, and tax returns filed 
21with the Department of Revenue or local taxing authorities.

22 Section 150-10. Interchange fees on taxes prohibited. 
23 (a) An issuer, a payment card network, an acquirer bank, 
24or a processor may not receive or charge a merchant any 
25interchange fee on the tax amount or gratuity of an electronic 
 
 
10300HB4951sam002- 1102 -LRB103 38094 HLH 74177 a


1payment transaction if the merchant informs the acquirer bank 
2or its designee of the tax or gratuity amount as part of the 
3authorization or settlement process for the electronic payment 
4transaction. The merchant must transmit the tax or gratuity 
5amount data as part of the authorization or settlement process 
6to avoid being charged interchange fees on the tax or gratuity 
7amount of an electronic payment transaction.
8 (b) A merchant that does not transmit the tax or gratuity 
9amount data in accordance with this Section may submit tax 
10documentation for the electronic payment transaction to the 
11acquirer bank or its designee no later than 180 days after the 
12date of the electronic payment transaction, and, within 30 
13days after the merchant submits the necessary tax 
14documentation, the issuer must credit to the merchant the 
15amount of interchange fees charged on the tax or gratuity 
16amount of the electronic payment transaction.
17 (c) This Section does not create liability for a payment 
18card network regarding the accuracy of the tax or gratuity 
19data reported by the merchant.
20 (d) It shall be unlawful for an issuer, a payment card 
21network, an acquirer bank, or a processor to alter or 
22manipulate the computation and imposition of interchange fees 
23by increasing the rate or amount of the fees applicable to or 
24imposed upon the portion of a credit or debit card transaction 
25not attributable to taxes or other fees charged to the 
26retailer to circumvent the effect of this Section.

 
 
10300HB4951sam002- 1103 -LRB103 38094 HLH 74177 a


1 Section 150-15. Penalties. 
2 (a) An issuer, a payment card network, an acquirer bank, a 
3processor, or other designated entity that has received the 
4tax or gratuity amount data and violates Section 150-10 is 
5subject to a civil penalty of $1,000 per electronic payment 
6transaction, and the issuer must refund the merchant the 
7interchange fee calculated on the tax or gratuity amount 
8relative to the electronic payment transaction.
9 (b) An entity, other than the merchant, involved in 
10facilitating or processing an electronic payment transaction, 
11including, but not limited to, an issuer, a payment card 
12network, an acquirer bank, a processor, or other designated 
13entity, may not distribute, exchange, transfer, disseminate, 
14or use the electronic payment transaction data except to 
15facilitate or process the electronic payment transaction or as 
16required by law. A violation of this subsection constitutes a 
17violation of the Consumer Fraud and Deceptive Business 
18Practices Act.

19 Section 150-95. Severability. The provisions of this Act 
20are severable under Section 1.31 of the Statute on Statutes.

21
ARTICLE 155.


22 Section 155-5. The Property Tax Code is amended by 
 
 
10300HB4951sam002- 1104 -LRB103 38094 HLH 74177 a


1changing Sections 9-45 and 11-15 as follows:

2 (35 ILCS 200/9-45)
3 Sec. 9-45. Property index number system. The county clerk 
4in counties of 3,000,000 or more inhabitants and, subject to 
5the approval of the county board, the chief county assessment 
6officer or recorder, in counties of less than 3,000,000 
7inhabitants, may establish a property index number system 
8under which property may be listed for purposes of assessment, 
9collection of taxes or automation of the office of the 
10recorder. The system may be adopted in addition to, or instead 
11of, the method of listing by legal description as provided in 
12Section 9-40. The system shall describe property by township, 
13section, block, and parcel or lot, and may cross-reference the 
14street or post office address, if any, and street code number, 
15if any. The county clerk, county treasurer, chief county 
16assessment officer or recorder may establish and maintain 
17cross indexes of numbers assigned under the system with the 
18complete legal description of the properties to which the 
19numbers relate. Index numbers shall be assigned by the county 
20clerk in counties of 3,000,000 or more inhabitants, and, at 
21the direction of the county board in counties with less than 
223,000,000 inhabitants, shall be assigned by the chief county 
23assessment officer or recorder. Tax maps of the county clerk, 
24county treasurer or chief county assessment officer shall 
25carry those numbers. The indexes shall be open to public 
 
 
10300HB4951sam002- 1105 -LRB103 38094 HLH 74177 a


1inspection and be made available to the public. Any property 
2index number system established prior to the effective date of 
3this Code shall remain valid. However, in counties with less 
4than 3,000,000 inhabitants, the system may be transferred to 
5another authority upon the approval of the county board.
6 Any real property used for a power generating or 
7automotive manufacturing facility located within a county of 
8less than 1,000,000 inhabitants, as to which litigation with 
9respect to its assessed valuation is pending or was pending as 
10of January 1, 1993, may be the subject of a real property tax 
11assessment settlement agreement among the taxpayer and taxing 
12districts in which it is situated. In addition, any real 
13property that is located in a county with fewer than 1,000,000 
14inhabitants and (i) is used for natural gas extraction and 
15fractionation or olefin and polymer manufacturing or (ii) is 
16used for a petroleum refinery and (ii) located within a county 
17of less than 1,000,000 inhabitants may be the subject of a real 
18property tax assessment settlement agreement among the 
19taxpayer and taxing districts in which the property is 
20situated if litigation is or was pending as to its assessed 
21valuation as of January 1, 2003 or thereafter. Other 
22appropriate authorities, which may include county and State 
23boards or officials, may also be parties to such agreements. 
24Such agreements may include the assessment of the facility or 
25property for any years in dispute as well as for up to 10 years 
26in the future. Such agreements may provide for the settlement 
 
 
10300HB4951sam002- 1106 -LRB103 38094 HLH 74177 a


1of issues relating to the assessed value of the facility and 
2may provide for related payments, refunds, claims, credits 
3against taxes and liabilities in respect to past and future 
4taxes of taxing districts, including any fund created under 
5Section 20-35 of this Act, all implementing the settlement 
6agreement. Any such agreement may provide that parties thereto 
7agree not to challenge assessments as provided in the 
8agreement. An agreement entered into on or after January 1, 
91993 may provide for the classification of property that is 
10the subject of the agreement as real or personal during the 
11term of the agreement and thereafter. It may also provide that 
12taxing districts agree to reimburse the taxpayer for amounts 
13paid by the taxpayer in respect to taxes for the real property 
14which is the subject of the agreement to the extent levied by 
15those respective districts, over and above amounts which would 
16be due if the facility were to be assessed as provided in the 
17agreement. Such reimbursement may be provided in the agreement 
18to be made by credit against taxes of the taxpayer. No credits 
19shall be applied against taxes levied with respect to debt 
20service or lease payments of a taxing district. No referendum 
21approval or appropriation shall be required for such an 
22agreement or such credits and any such obligation shall not 
23constitute indebtedness of the taxing district for purposes of 
24any statutory limitation. The county collector shall treat 
25credited amounts as if they had been received by the collector 
26as taxes paid by the taxpayer and as if remitted to the 
 
 
10300HB4951sam002- 1107 -LRB103 38094 HLH 74177 a


1district. A county treasurer who is a party to such an 
2agreement may agree to hold amounts paid in escrow as provided 
3in the agreement for possible use for paying taxes until 
4conditions of the agreement are met and then to apply these 
5amounts as provided in the agreement. No such settlement 
6agreement shall be effective unless it shall have been 
7approved by the court in which such litigation is pending. Any 
8such agreement which has been entered into prior to adoption 
9of this amendatory Act of 1988 and which is contingent upon 
10enactment of authorizing legislation shall be binding and 
11enforceable.
12(Source: P.A. 96-609, eff. 8-24-09.)

13 (35 ILCS 200/11-15)
14 Sec. 11-15. Method of valuation for pollution control 
15facilities. To determine 33 1/3% of the fair cash value of any 
16certified pollution control facility facilities in assessing 
17those facilities, the Department shall determine take into 
18consideration the actual or probable net earnings attributable 
19to the facilities in question, capitalized on the basis of 
20their productive earning value to their owner; the probable 
21net value that which could be realized by its their owner if 
22the facility facilities were removed and sold at a fair, 
23voluntary sale, giving due account to the expense of removal 
24and condition of the particular facility facilities in 
25question; and other information as the Department may consider 
 
 
10300HB4951sam002- 1108 -LRB103 38094 HLH 74177 a


1as bearing on the fair cash value of the facilities to their 
2owner, consistent with the principles set forth in this 
3Section. For the purposes of this Code, earnings shall be 
4attributed to a pollution control facility only to the extent 
5that its operation results in the production of a commercially 
6saleable by-product or increases the production or reduces the 
7production costs of the products or services otherwise sold by 
8the owner of such facility. The assessed value of the facility 
9shall be 33/1/3% of the fair cash value of the facility. 
10(Source: P.A. 83-121; 88-455.)

11
ARTICLE 160.


12 Section 160-5. The Illinois Gambling Act is amended by 
13changing Section 13 as follows:

14 (230 ILCS 10/13) (from Ch. 120, par. 2413)
15 Sec. 13. Wagering tax; rate; distribution. 
16 (a) Until January 1, 1998, a tax is imposed on the adjusted 
17gross receipts received from gambling games authorized under 
18this Act at the rate of 20%.
19 (a-1) From January 1, 1998 until July 1, 2002, a privilege 
20tax is imposed on persons engaged in the business of 
21conducting riverboat gambling operations, based on the 
22adjusted gross receipts received by a licensed owner from 
23gambling games authorized under this Act at the following 
 
 
10300HB4951sam002- 1109 -LRB103 38094 HLH 74177 a


1rates:
2  15% of annual adjusted gross receipts up to and 
3 including $25,000,000;
4  20% of annual adjusted gross receipts in excess of 
5 $25,000,000 but not exceeding $50,000,000;
6  25% of annual adjusted gross receipts in excess of 
7 $50,000,000 but not exceeding $75,000,000;
8  30% of annual adjusted gross receipts in excess of 
9 $75,000,000 but not exceeding $100,000,000;
10  35% of annual adjusted gross receipts in excess of 
11 $100,000,000.
12 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
13is imposed on persons engaged in the business of conducting 
14riverboat gambling operations, other than licensed managers 
15conducting riverboat gambling operations on behalf of the 
16State, based on the adjusted gross receipts received by a 
17licensed owner from gambling games authorized under this Act 
18at the following rates:
19  15% of annual adjusted gross receipts up to and 
20 including $25,000,000;
21  22.5% of annual adjusted gross receipts in excess of 
22 $25,000,000 but not exceeding $50,000,000;
23  27.5% of annual adjusted gross receipts in excess of 
24 $50,000,000 but not exceeding $75,000,000;
25  32.5% of annual adjusted gross receipts in excess of 
26 $75,000,000 but not exceeding $100,000,000;
 
 
10300HB4951sam002- 1110 -LRB103 38094 HLH 74177 a


1  37.5% of annual adjusted gross receipts in excess of 
2 $100,000,000 but not exceeding $150,000,000;
3  45% of annual adjusted gross receipts in excess of 
4 $150,000,000 but not exceeding $200,000,000;
5  50% of annual adjusted gross receipts in excess of 
6 $200,000,000.
7 (a-3) Beginning July 1, 2003, a privilege tax is imposed 
8on persons engaged in the business of conducting riverboat 
9gambling operations, other than licensed managers conducting 
10riverboat gambling operations on behalf of the State, based on 
11the adjusted gross receipts received by a licensed owner from 
12gambling games authorized under this Act at the following 
13rates:
14  15% of annual adjusted gross receipts up to and 
15 including $25,000,000;
16  27.5% of annual adjusted gross receipts in excess of 
17 $25,000,000 but not exceeding $37,500,000;
18  32.5% of annual adjusted gross receipts in excess of 
19 $37,500,000 but not exceeding $50,000,000;
20  37.5% of annual adjusted gross receipts in excess of 
21 $50,000,000 but not exceeding $75,000,000;
22  45% of annual adjusted gross receipts in excess of 
23 $75,000,000 but not exceeding $100,000,000;
24  50% of annual adjusted gross receipts in excess of 
25 $100,000,000 but not exceeding $250,000,000;
26  70% of annual adjusted gross receipts in excess of 
 
 
10300HB4951sam002- 1111 -LRB103 38094 HLH 74177 a


1 $250,000,000.
2 An amount equal to the amount of wagering taxes collected 
3under this subsection (a-3) that are in addition to the amount 
4of wagering taxes that would have been collected if the 
5wagering tax rates under subsection (a-2) were in effect shall 
6be paid into the Common School Fund.
7 The privilege tax imposed under this subsection (a-3) 
8shall no longer be imposed beginning on the earlier of (i) July 
91, 2005; (ii) the first date after June 20, 2003 that riverboat 
10gambling operations are conducted pursuant to a dormant 
11license; or (iii) the first day that riverboat gambling 
12operations are conducted under the authority of an owners 
13license that is in addition to the 10 owners licenses 
14initially authorized under this Act. For the purposes of this 
15subsection (a-3), the term "dormant license" means an owners 
16license that is authorized by this Act under which no 
17riverboat gambling operations are being conducted on June 20, 
182003.
19 (a-4) Beginning on the first day on which the tax imposed 
20under subsection (a-3) is no longer imposed and ending upon 
21the imposition of the privilege tax under subsection (a-5) of 
22this Section, a privilege tax is imposed on persons engaged in 
23the business of conducting gambling operations, other than 
24licensed managers conducting riverboat gambling operations on 
25behalf of the State, based on the adjusted gross receipts 
26received by a licensed owner from gambling games authorized 
 
 
10300HB4951sam002- 1112 -LRB103 38094 HLH 74177 a


1under this Act at the following rates:
2  15% of annual adjusted gross receipts up to and 
3 including $25,000,000;
4  22.5% of annual adjusted gross receipts in excess of 
5 $25,000,000 but not exceeding $50,000,000;
6  27.5% of annual adjusted gross receipts in excess of 
7 $50,000,000 but not exceeding $75,000,000;
8  32.5% of annual adjusted gross receipts in excess of 
9 $75,000,000 but not exceeding $100,000,000;
10  37.5% of annual adjusted gross receipts in excess of 
11 $100,000,000 but not exceeding $150,000,000;
12  45% of annual adjusted gross receipts in excess of 
13 $150,000,000 but not exceeding $200,000,000;
14  50% of annual adjusted gross receipts in excess of 
15 $200,000,000.
16 For the imposition of the privilege tax in this subsection 
17(a-4), amounts paid pursuant to item (1) of subsection (b) of 
18Section 56 of the Illinois Horse Racing Act of 1975 shall not 
19be included in the determination of adjusted gross receipts. 
20 (a-5)(1) Beginning on July 1, 2020, a privilege tax is 
21imposed on persons engaged in the business of conducting 
22gambling operations, other than the owners licensee under 
23paragraph (1) of subsection (e-5) of Section 7 and licensed 
24managers conducting riverboat gambling operations on behalf of 
25the State, based on the adjusted gross receipts received by 
26such licensee from the gambling games authorized under this 
 
 
10300HB4951sam002- 1113 -LRB103 38094 HLH 74177 a


1Act. The privilege tax for all gambling games other than table 
2games, including, but not limited to, slot machines, video 
3game of chance gambling, and electronic gambling games shall 
4be at the following rates:
5  15% of annual adjusted gross receipts up to and 
6 including $25,000,000;
7  22.5% of annual adjusted gross receipts in excess of 
8 $25,000,000 but not exceeding $50,000,000;
9  27.5% of annual adjusted gross receipts in excess of 
10 $50,000,000 but not exceeding $75,000,000;
11  32.5% of annual adjusted gross receipts in excess of 
12 $75,000,000 but not exceeding $100,000,000;
13  37.5% of annual adjusted gross receipts in excess of 
14 $100,000,000 but not exceeding $150,000,000;
15  45% of annual adjusted gross receipts in excess of 
16 $150,000,000 but not exceeding $200,000,000;
17  50% of annual adjusted gross receipts in excess of 
18 $200,000,000.
19 The privilege tax for table games shall be at the 
20following rates:
21  15% of annual adjusted gross receipts up to and 
22 including $25,000,000;
23  20% of annual adjusted gross receipts in excess of 
24 $25,000,000.
25 For the imposition of the privilege tax in this subsection 
26(a-5), amounts paid pursuant to item (1) of subsection (b) of 
 
 
10300HB4951sam002- 1114 -LRB103 38094 HLH 74177 a


1Section 56 of the Illinois Horse Racing Act of 1975 shall not 
2be included in the determination of adjusted gross receipts.
3 (2) Beginning on the first day that an owners licensee 
4under paragraph (1) of subsection (e-5) of Section 7 conducts 
5gambling operations, either in a temporary facility or a 
6permanent facility, a privilege tax is imposed on persons 
7engaged in the business of conducting gambling operations 
8under paragraph (1) of subsection (e-5) of Section 7, other 
9than licensed managers conducting riverboat gambling 
10operations on behalf of the State, based on the adjusted gross 
11receipts received by such licensee from the gambling games 
12authorized under this Act. The privilege tax for all gambling 
13games other than table games, including, but not limited to, 
14slot machines, video game of chance gambling, and electronic 
15gambling games shall be at the following rates:
16  12% of annual adjusted gross receipts up to and 
17 including $25,000,000 to the State and 10.5% of annual 
18 adjusted gross receipts up to and including $25,000,000 to 
19 the City of Chicago;
20  16% of annual adjusted gross receipts in excess of 
21 $25,000,000 but not exceeding $50,000,000 to the State and 
22 14% of annual adjusted gross receipts in excess of 
23 $25,000,000 but not exceeding $50,000,000 to the City of 
24 Chicago;
25  20.1% of annual adjusted gross receipts in excess of 
26 $50,000,000 but not exceeding $75,000,000 to the State and 
 
 
10300HB4951sam002- 1115 -LRB103 38094 HLH 74177 a


1 17.4% of annual adjusted gross receipts in excess of 
2 $50,000,000 but not exceeding $75,000,000 to the City of 
3 Chicago;
4  21.4% of annual adjusted gross receipts in excess of 
5 $75,000,000 but not exceeding $100,000,000 to the State 
6 and 18.6% of annual adjusted gross receipts in excess of 
7 $75,000,000 but not exceeding $100,000,000 to the City of 
8 Chicago;
9  22.7% of annual adjusted gross receipts in excess of 
10 $100,000,000 but not exceeding $150,000,000 to the State 
11 and 19.8% of annual adjusted gross receipts in excess of 
12 $100,000,000 but not exceeding $150,000,000 to the City of 
13 Chicago;
14  24.1% of annual adjusted gross receipts in excess of 
15 $150,000,000 but not exceeding $225,000,000 to the State 
16 and 20.9% of annual adjusted gross receipts in excess of 
17 $150,000,000 but not exceeding $225,000,000 to the City of 
18 Chicago;
19  26.8% of annual adjusted gross receipts in excess of 
20 $225,000,000 but not exceeding $1,000,000,000 to the State 
21 and 23.2% of annual adjusted gross receipts in excess of 
22 $225,000,000 but not exceeding $1,000,000,000 to the City 
23 of Chicago;
24  40% of annual adjusted gross receipts in excess of 
25 $1,000,000,000 to the State and 34.7% of annual gross 
26 receipts in excess of $1,000,000,000 to the City of 
 
 
10300HB4951sam002- 1116 -LRB103 38094 HLH 74177 a


1 Chicago.
2 The privilege tax for table games shall be at the 
3following rates:
4  8.1% of annual adjusted gross receipts up to and 
5 including $25,000,000 to the State and 6.9% of annual 
6 adjusted gross receipts up to and including $25,000,000 to 
7 the City of Chicago;
8  10.7% of annual adjusted gross receipts in excess of 
9 $25,000,000 but not exceeding $75,000,000 to the State and 
10 9.3% of annual adjusted gross receipts in excess of 
11 $25,000,000 but not exceeding $75,000,000 to the City of 
12 Chicago;
13  11.2% of annual adjusted gross receipts in excess of 
14 $75,000,000 but not exceeding $175,000,000 to the State 
15 and 9.8% of annual adjusted gross receipts in excess of 
16 $75,000,000 but not exceeding $175,000,000 to the City of 
17 Chicago;
18  13.5% of annual adjusted gross receipts in excess of 
19 $175,000,000 but not exceeding $225,000,000 to the State 
20 and 11.5% of annual adjusted gross receipts in excess of 
21 $175,000,000 but not exceeding $225,000,000 to the City of 
22 Chicago;
23  15.1% of annual adjusted gross receipts in excess of 
24 $225,000,000 but not exceeding $275,000,000 to the State 
25 and 12.9% of annual adjusted gross receipts in excess of 
26 $225,000,000 but not exceeding $275,000,000 to the City of 
 
 
10300HB4951sam002- 1117 -LRB103 38094 HLH 74177 a


1 Chicago;
2  16.2% of annual adjusted gross receipts in excess of 
3 $275,000,000 but not exceeding $375,000,000 to the State 
4 and 13.8% of annual adjusted gross receipts in excess of 
5 $275,000,000 but not exceeding $375,000,000 to the City of 
6 Chicago;
7  18.9% of annual adjusted gross receipts in excess of 
8 $375,000,000 to the State and 16.1% of annual gross 
9 receipts in excess of $375,000,000 to the City of Chicago. 
10 For the imposition of the privilege tax in this subsection 
11(a-5), amounts paid pursuant to item (1) of subsection (b) of 
12Section 56 of the Illinois Horse Racing Act of 1975 shall not 
13be included in the determination of adjusted gross receipts. 
14 (3) Notwithstanding the provisions of this subsection 
15(a-5), for the first 10 years that the privilege tax is imposed 
16under this subsection (a-5) or until the year preceding the 
17calendar year in which paragraph (4) becomes operative, 
18whichever occurs first, the privilege tax shall be imposed on 
19the modified annual adjusted gross receipts of a riverboat or 
20casino conducting gambling operations in the City of East St. 
21Louis, unless:
22  (1) the riverboat or casino fails to employ at least 
23 450 people, except no minimum employment shall be required 
24 during 2020 and 2021 or during periods that the riverboat 
25 or casino is closed on orders of State officials for 
26 public health emergencies or other emergencies not caused 
 
 
10300HB4951sam002- 1118 -LRB103 38094 HLH 74177 a


1 by the riverboat or casino;
2  (2) the riverboat or casino fails to maintain 
3 operations in a manner consistent with this Act or is not a 
4 viable riverboat or casino subject to the approval of the 
5 Board; or
6  (3) the owners licensee is not an entity in which 
7 employees participate in an employee stock ownership plan 
8 or in which the owners licensee sponsors a 401(k) 
9 retirement plan and makes a matching employer contribution 
10 equal to at least one-quarter of the first 12% or one-half 
11 of the first 6% of each participating employee's 
12 contribution, not to exceed any limitations under federal 
13 laws and regulations. 
14 (4) Notwithstanding the provisions of this subsection 
15(a-5), for 10 calendar years beginning in the year that 
16gambling operations commence either in a temporary or 
17permanent facility at an organization gaming facility located 
18in the City of Collinsville if the facility commences 
19operations within 3 years of the effective date of the changes 
20made to this Section by this amendatory Act of the 103rd 
21General Assembly, the privilege tax imposed under this 
22subsection (a-5) on a riverboat or casino conducting gambling 
23operations in the City of East St. Louis shall be reduced, if 
24applicable, by an amount equal to the difference in adjusted 
25gross receipts for the 2022 calendar year less the current 
26year's adjusted gross receipts, unless:
 
 
10300HB4951sam002- 1119 -LRB103 38094 HLH 74177 a


1  (A) the riverboat or casino fails to employ at least 
2 350 people, except that no minimum employment shall be 
3 required during periods that the riverboat or casino is 
4 closed on orders of State officials for public health 
5 emergencies or other emergencies not caused by the 
6 riverboat or casino;
7  (B) the riverboat or casino fails to maintain 
8 operations in a manner consistent with this Act or is not a 
9 viable riverboat or casino subject to the approval of the 
10 Board; or
11  (C) the riverboat or casino fails to submit audited 
12 financial statements to the Board prepared by an 
13 accounting firm that has been preapproved by the Board and 
14 such statements were prepared in accordance with the 
15 provisions of the Financial Accounting Standards Board 
16 Accounting Standards Codification under nongovernmental 
17 accounting principles generally accepted in the United 
18 States. 
19 As used in this subsection (a-5), "modified annual 
20adjusted gross receipts" means:
21  (A) for calendar year 2020, the annual adjusted gross 
22 receipts for the current year minus the difference between 
23 an amount equal to the average annual adjusted gross 
24 receipts from a riverboat or casino conducting gambling 
25 operations in the City of East St. Louis for 2014, 2015, 
26 2016, 2017, and 2018 and the annual adjusted gross 
 
 
10300HB4951sam002- 1120 -LRB103 38094 HLH 74177 a


1 receipts for 2018; 
2  (B) for calendar year 2021, the annual adjusted gross 
3 receipts for the current year minus the difference between 
4 an amount equal to the average annual adjusted gross 
5 receipts from a riverboat or casino conducting gambling 
6 operations in the City of East St. Louis for 2014, 2015, 
7 2016, 2017, and 2018 and the annual adjusted gross 
8 receipts for 2019; and 
9  (C) for calendar years 2022 through 2029, the annual 
10 adjusted gross receipts for the current year minus the 
11 difference between an amount equal to the average annual 
12 adjusted gross receipts from a riverboat or casino 
13 conducting gambling operations in the City of East St. 
14 Louis for 3 years preceding the current year and the 
15 annual adjusted gross receipts for the immediately 
16 preceding year. 
17 (a-6) From June 28, 2019 (the effective date of Public Act 
18101-31) until June 30, 2023, an owners licensee that conducted 
19gambling operations prior to January 1, 2011 shall receive a 
20dollar-for-dollar credit against the tax imposed under this 
21Section for any renovation or construction costs paid by the 
22owners licensee, but in no event shall the credit exceed 
23$2,000,000.
24 Additionally, from June 28, 2019 (the effective date of 
25Public Act 101-31) until December 31, 2024, an owners licensee 
26that (i) is located within 15 miles of the Missouri border, and 
 
 
10300HB4951sam002- 1121 -LRB103 38094 HLH 74177 a


1(ii) has at least 3 riverboats, casinos, or their equivalent 
2within a 45-mile radius, may be authorized to relocate to a new 
3location with the approval of both the unit of local 
4government designated as the home dock and the Board, so long 
5as the new location is within the same unit of local government 
6and no more than 3 miles away from its original location. Such 
7owners licensee shall receive a credit against the tax imposed 
8under this Section equal to 8% of the total project costs, as 
9approved by the Board, for any renovation or construction 
10costs paid by the owners licensee for the construction of the 
11new facility, provided that the new facility is operational by 
12July 1, 2024. In determining whether or not to approve a 
13relocation, the Board must consider the extent to which the 
14relocation will diminish the gaming revenues received by other 
15Illinois gaming facilities.
16 (a-7) Beginning in the initial adjustment year and through 
17the final adjustment year, if the total obligation imposed 
18pursuant to either subsection (a-5) or (a-6) will result in an 
19owners licensee receiving less after-tax adjusted gross 
20receipts than it received in calendar year 2018, then the 
21total amount of privilege taxes that the owners licensee is 
22required to pay for that calendar year shall be reduced to the 
23extent necessary so that the after-tax adjusted gross receipts 
24in that calendar year equals the after-tax adjusted gross 
25receipts in calendar year 2018, but the privilege tax 
26reduction shall not exceed the annual adjustment cap. If 
 
 
10300HB4951sam002- 1122 -LRB103 38094 HLH 74177 a


1pursuant to this subsection (a-7), the total obligation 
2imposed pursuant to either subsection (a-5) or (a-6) shall be 
3reduced, then the owners licensee shall not receive a refund 
4from the State at the end of the subject calendar year but 
5instead shall be able to apply that amount as a credit against 
6any payments it owes to the State in the following calendar 
7year to satisfy its total obligation under either subsection 
8(a-5) or (a-6). The credit for the final adjustment year shall 
9occur in the calendar year following the final adjustment 
10year.
11 If an owners licensee that conducted gambling operations 
12prior to January 1, 2019 expands its riverboat or casino, 
13including, but not limited to, with respect to its gaming 
14floor, additional non-gaming amenities such as restaurants, 
15bars, and hotels and other additional facilities, and incurs 
16construction and other costs related to such expansion from 
17June 28, 2019 (the effective date of Public Act 101-31) until 
18June 28, 2024 (the 5th anniversary of the effective date of 
19Public Act 101-31), then for each $15,000,000 spent for any 
20such construction or other costs related to expansion paid by 
21the owners licensee, the final adjustment year shall be 
22extended by one year and the annual adjustment cap shall 
23increase by 0.2% of adjusted gross receipts during each 
24calendar year until and including the final adjustment year. 
25No further modifications to the final adjustment year or 
26annual adjustment cap shall be made after $75,000,000 is 
 
 
10300HB4951sam002- 1123 -LRB103 38094 HLH 74177 a


1incurred in construction or other costs related to expansion 
2so that the final adjustment year shall not extend beyond the 
39th calendar year after the initial adjustment year, not 
4including the initial adjustment year, and the annual 
5adjustment cap shall not exceed 4% of adjusted gross receipts 
6in a particular calendar year. Construction and other costs 
7related to expansion shall include all project related costs, 
8including, but not limited to, all hard and soft costs, 
9financing costs, on or off-site ground, road or utility work, 
10cost of gaming equipment and all other personal property, 
11initial fees assessed for each incremental gaming position, 
12and the cost of incremental land acquired for such expansion. 
13Soft costs shall include, but not be limited to, legal fees, 
14architect, engineering and design costs, other consultant 
15costs, insurance cost, permitting costs, and pre-opening costs 
16related to the expansion, including, but not limited to, any 
17of the following: marketing, real estate taxes, personnel, 
18training, travel and out-of-pocket expenses, supply, 
19inventory, and other costs, and any other project related soft 
20costs. 
21 To be eligible for the tax credits in subsection (a-6), 
22all construction contracts shall include a requirement that 
23the contractor enter into a project labor agreement with the 
24building and construction trades council with geographic 
25jurisdiction of the location of the proposed gaming facility.
26 Notwithstanding any other provision of this subsection 
 
 
10300HB4951sam002- 1124 -LRB103 38094 HLH 74177 a


1(a-7), this subsection (a-7) does not apply to an owners 
2licensee unless such owners licensee spends at least 
3$15,000,000 on construction and other costs related to its 
4expansion, excluding the initial fees assessed for each 
5incremental gaming position. 
6 This subsection (a-7) does not apply to owners licensees 
7authorized pursuant to subsection (e-5) of Section 7 of this 
8Act.
9 For purposes of this subsection (a-7):
10 "Building and construction trades council" means any 
11organization representing multiple construction entities that 
12are monitoring or attentive to compliance with public or 
13workers' safety laws, wage and hour requirements, or other 
14statutory requirements or that are making or maintaining 
15collective bargaining agreements. 
16 "Initial adjustment year" means the year commencing on 
17January 1 of the calendar year immediately following the 
18earlier of the following: 
19  (1) the commencement of gambling operations, either in 
20 a temporary or permanent facility, with respect to the 
21 owners license authorized under paragraph (1) of 
22 subsection (e-5) of Section 7 of this Act; or
23  (2) June 28, 2021 (24 months after the effective date 
24 of Public Act 101-31); 
25provided the initial adjustment year shall not commence 
26earlier than June 28, 2020 (12 months after the effective date 
 
 
10300HB4951sam002- 1125 -LRB103 38094 HLH 74177 a


1of Public Act 101-31). 
2 "Final adjustment year" means the 2nd calendar year after 
3the initial adjustment year, not including the initial 
4adjustment year, and as may be extended further as described 
5in this subsection (a-7). 
6 "Annual adjustment cap" means 3% of adjusted gross 
7receipts in a particular calendar year, and as may be 
8increased further as otherwise described in this subsection 
9(a-7). 
10 (a-8) Riverboat gambling operations conducted by a 
11licensed manager on behalf of the State are not subject to the 
12tax imposed under this Section.
13 (a-9) Beginning on January 1, 2020, the calculation of 
14gross receipts or adjusted gross receipts, for the purposes of 
15this Section, for a riverboat, a casino, or an organization 
16gaming facility shall not include the dollar amount of 
17non-cashable vouchers, coupons, and electronic promotions 
18redeemed by wagerers upon the riverboat, in the casino, or in 
19the organization gaming facility up to and including an amount 
20not to exceed 20% of a riverboat's, a casino's, or an 
21organization gaming facility's adjusted gross receipts.
22 The Illinois Gaming Board shall submit to the General 
23Assembly a comprehensive report no later than March 31, 2023 
24detailing, at a minimum, the effect of removing non-cashable 
25vouchers, coupons, and electronic promotions from this 
26calculation on net gaming revenues to the State in calendar 
 
 
10300HB4951sam002- 1126 -LRB103 38094 HLH 74177 a


1years 2020 through 2022, the increase or reduction in wagerers 
2as a result of removing non-cashable vouchers, coupons, and 
3electronic promotions from this calculation, the effect of the 
4tax rates in subsection (a-5) on net gaming revenues to this 
5State, and proposed modifications to the calculation. 
6 (a-10) The taxes imposed by this Section shall be paid by 
7the licensed owner or the organization gaming licensee to the 
8Board not later than 5:00 o'clock p.m. of the day after the day 
9when the wagers were made.
10 (a-15) If the privilege tax imposed under subsection (a-3) 
11is no longer imposed pursuant to item (i) of the last paragraph 
12of subsection (a-3), then by June 15 of each year, each owners 
13licensee, other than an owners licensee that admitted 
141,000,000 persons or fewer in calendar year 2004, must, in 
15addition to the payment of all amounts otherwise due under 
16this Section, pay to the Board a reconciliation payment in the 
17amount, if any, by which the licensed owner's base amount 
18exceeds the amount of net privilege tax paid by the licensed 
19owner to the Board in the then current State fiscal year. A 
20licensed owner's net privilege tax obligation due for the 
21balance of the State fiscal year shall be reduced up to the 
22total of the amount paid by the licensed owner in its June 15 
23reconciliation payment. The obligation imposed by this 
24subsection (a-15) is binding on any person, firm, corporation, 
25or other entity that acquires an ownership interest in any 
26such owners license. The obligation imposed under this 
 
 
10300HB4951sam002- 1127 -LRB103 38094 HLH 74177 a


1subsection (a-15) terminates on the earliest of: (i) July 1, 
22007, (ii) the first day after August 23, 2005 (the effective 
3date of Public Act 94-673) that riverboat gambling operations 
4are conducted pursuant to a dormant license, (iii) the first 
5day that riverboat gambling operations are conducted under the 
6authority of an owners license that is in addition to the 10 
7owners licenses initially authorized under this Act, or (iv) 
8the first day that a licensee under the Illinois Horse Racing 
9Act of 1975 conducts gaming operations with slot machines or 
10other electronic gaming devices. The Board must reduce the 
11obligation imposed under this subsection (a-15) by an amount 
12the Board deems reasonable for any of the following reasons: 
13(A) an act or acts of God, (B) an act of bioterrorism or 
14terrorism or a bioterrorism or terrorism threat that was 
15investigated by a law enforcement agency, or (C) a condition 
16beyond the control of the owners licensee that does not result 
17from any act or omission by the owners licensee or any of its 
18agents and that poses a hazardous threat to the health and 
19safety of patrons. If an owners licensee pays an amount in 
20excess of its liability under this Section, the Board shall 
21apply the overpayment to future payments required under this 
22Section.
23 For purposes of this subsection (a-15):
24 "Act of God" means an incident caused by the operation of 
25an extraordinary force that cannot be foreseen, that cannot be 
26avoided by the exercise of due care, and for which no person 
 
 
10300HB4951sam002- 1128 -LRB103 38094 HLH 74177 a


1can be held liable. 
2 "Base amount" means the following:
3  For a riverboat in Alton, $31,000,000. 
4  For a riverboat in East Peoria, $43,000,000. 
5  For the Empress riverboat in Joliet, $86,000,000. 
6  For a riverboat in Metropolis, $45,000,000. 
7  For the Harrah's riverboat in Joliet, $114,000,000. 
8  For a riverboat in Aurora, $86,000,000. 
9  For a riverboat in East St. Louis, $48,500,000. 
10  For a riverboat in Elgin, $198,000,000. 
11 "Dormant license" has the meaning ascribed to it in 
12subsection (a-3). 
13 "Net privilege tax" means all privilege taxes paid by a 
14licensed owner to the Board under this Section, less all 
15payments made from the State Gaming Fund pursuant to 
16subsection (b) of this Section.
17 The changes made to this subsection (a-15) by Public Act 
1894-839 are intended to restate and clarify the intent of 
19Public Act 94-673 with respect to the amount of the payments 
20required to be made under this subsection by an owners 
21licensee to the Board. 
22 (b) From the tax revenue from riverboat or casino gambling 
23deposited in the State Gaming Fund under this Section, an 
24amount equal to 5% of adjusted gross receipts generated by a 
25riverboat or a casino, other than a riverboat or casino 
26designated in paragraph (1), (3), or (4) of subsection (e-5) 
 
 
10300HB4951sam002- 1129 -LRB103 38094 HLH 74177 a


1of Section 7, shall be paid monthly, subject to appropriation 
2by the General Assembly, to the unit of local government in 
3which the casino is located or that is designated as the home 
4dock of the riverboat. Notwithstanding anything to the 
5contrary, beginning on the first day that an owners licensee 
6under paragraph (1), (2), (3), (4), (5), or (6) of subsection 
7(e-5) of Section 7 conducts gambling operations, either in a 
8temporary facility or a permanent facility, and for 2 years 
9thereafter, a unit of local government designated as the home 
10dock of a riverboat whose license was issued before January 1, 
112019, other than a riverboat conducting gambling operations in 
12the City of East St. Louis, shall not receive less under this 
13subsection (b) than the amount the unit of local government 
14received under this subsection (b) in calendar year 2018. 
15Notwithstanding anything to the contrary and because the City 
16of East St. Louis is a financially distressed city, beginning 
17on the first day that an owners licensee under paragraph (1), 
18(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7 
19conducts gambling operations, either in a temporary facility 
20or a permanent facility, and for 10 years thereafter, a unit of 
21local government designated as the home dock of a riverboat 
22conducting gambling operations in the City of East St. Louis 
23shall not receive less under this subsection (b) than the 
24amount the unit of local government received under this 
25subsection (b) in calendar year 2018. 
26 From the tax revenue deposited in the State Gaming Fund 
 
 
10300HB4951sam002- 1130 -LRB103 38094 HLH 74177 a


1pursuant to riverboat or casino gambling operations conducted 
2by a licensed manager on behalf of the State, an amount equal 
3to 5% of adjusted gross receipts generated pursuant to those 
4riverboat or casino gambling operations shall be paid monthly, 
5subject to appropriation by the General Assembly, to the unit 
6of local government that is designated as the home dock of the 
7riverboat upon which those riverboat gambling operations are 
8conducted or in which the casino is located.
9 From the tax revenue from riverboat or casino gambling 
10deposited in the State Gaming Fund under this Section, an 
11amount equal to 5% of the adjusted gross receipts generated by 
12a riverboat designated in paragraph (3) of subsection (e-5) of 
13Section 7 shall be divided and remitted monthly, subject to 
14appropriation, as follows: 70% to Waukegan, 10% to Park City, 
1515% to North Chicago, and 5% to Lake County.
16 From the tax revenue from riverboat or casino gambling 
17deposited in the State Gaming Fund under this Section, an 
18amount equal to 5% of the adjusted gross receipts generated by 
19a riverboat designated in paragraph (4) of subsection (e-5) of 
20Section 7 shall be remitted monthly, subject to appropriation, 
21as follows: 70% to the City of Rockford, 5% to the City of 
22Loves Park, 5% to the Village of Machesney, and 20% to 
23Winnebago County.
24 From the tax revenue from riverboat or casino gambling 
25deposited in the State Gaming Fund under this Section, an 
26amount equal to 5% of the adjusted gross receipts generated by 
 
 
10300HB4951sam002- 1131 -LRB103 38094 HLH 74177 a


1a riverboat designated in paragraph (5) of subsection (e-5) of 
2Section 7 shall be remitted monthly, subject to appropriation, 
3as follows: 2% to the unit of local government in which the 
4riverboat or casino is located, and 3% shall be distributed: 
5(A) in accordance with a regional capital development plan 
6entered into by the following communities: Village of Beecher, 
7City of Blue Island, Village of Burnham, City of Calumet City, 
8Village of Calumet Park, City of Chicago Heights, City of 
9Country Club Hills, Village of Crestwood, Village of Crete, 
10Village of Dixmoor, Village of Dolton, Village of East Hazel 
11Crest, Village of Flossmoor, Village of Ford Heights, Village 
12of Glenwood, City of Harvey, Village of Hazel Crest, Village 
13of Homewood, Village of Lansing, Village of Lynwood, City of 
14Markham, Village of Matteson, Village of Midlothian, Village 
15of Monee, City of Oak Forest, Village of Olympia Fields, 
16Village of Orland Hills, Village of Orland Park, City of Palos 
17Heights, Village of Park Forest, Village of Phoenix, Village 
18of Posen, Village of Richton Park, Village of Riverdale, 
19Village of Robbins, Village of Sauk Village, Village of South 
20Chicago Heights, Village of South Holland, Village of Steger, 
21Village of Thornton, Village of Tinley Park, Village of 
22University Park, and Village of Worth; or (B) if no regional 
23capital development plan exists, equally among the communities 
24listed in item (A) to be used for capital expenditures or 
25public pension payments, or both. 
26 Units of local government may refund any portion of the 
 
 
10300HB4951sam002- 1132 -LRB103 38094 HLH 74177 a


1payment that they receive pursuant to this subsection (b) to 
2the riverboat or casino.
3 (b-4) Beginning on the first day a licensee under 
4subsection (e-5) of Section 7 conducts gambling operations or 
530 days after the effective date of this amendatory Act of the 
6103rd General Assembly, whichever is sooner, either in a 
7temporary facility or a permanent facility, and ending on July 
831, 2042, from the tax revenue deposited in the State Gaming 
9Fund under this Section, $5,000,000 shall be paid annually, 
10subject to appropriation, to the host municipality of that 
11owners licensee of a license issued or re-issued pursuant to 
12Section 7.1 of this Act before January 1, 2012. Payments 
13received by the host municipality pursuant to this subsection 
14(b-4) may not be shared with any other unit of local 
15government. 
16 (b-5) Beginning on June 28, 2019 (the effective date of 
17Public Act 101-31), from the tax revenue deposited in the 
18State Gaming Fund under this Section, an amount equal to 3% of 
19adjusted gross receipts generated by each organization gaming 
20facility located outside Madison County shall be paid monthly, 
21subject to appropriation by the General Assembly, to a 
22municipality other than the Village of Stickney in which each 
23organization gaming facility is located or, if the 
24organization gaming facility is not located within a 
25municipality, to the county in which the organization gaming 
26facility is located, except as otherwise provided in this 
 
 
10300HB4951sam002- 1133 -LRB103 38094 HLH 74177 a


1Section. From the tax revenue deposited in the State Gaming 
2Fund under this Section, an amount equal to 3% of adjusted 
3gross receipts generated by an organization gaming facility 
4located in the Village of Stickney shall be paid monthly, 
5subject to appropriation by the General Assembly, as follows: 
625% to the Village of Stickney, 5% to the City of Berwyn, 50% 
7to the Town of Cicero, and 20% to the Stickney Public Health 
8District.
9 From the tax revenue deposited in the State Gaming Fund 
10under this Section, an amount equal to 5% of adjusted gross 
11receipts generated by an organization gaming facility located 
12in the City of Collinsville shall be paid monthly, subject to 
13appropriation by the General Assembly, as follows: 30% to the 
14City of Alton, 30% to the City of East St. Louis, and 40% to 
15the City of Collinsville. 
16 Municipalities and counties may refund any portion of the 
17payment that they receive pursuant to this subsection (b-5) to 
18the organization gaming facility. 
19 (b-6) Beginning on June 28, 2019 (the effective date of 
20Public Act 101-31), from the tax revenue deposited in the 
21State Gaming Fund under this Section, an amount equal to 2% of 
22adjusted gross receipts generated by an organization gaming 
23facility located outside Madison County shall be paid monthly, 
24subject to appropriation by the General Assembly, to the 
25county in which the organization gaming facility is located 
26for the purposes of its criminal justice system or health care 
 
 
10300HB4951sam002- 1134 -LRB103 38094 HLH 74177 a


1system. 
2 Counties may refund any portion of the payment that they 
3receive pursuant to this subsection (b-6) to the organization 
4gaming facility. 
5 (b-7) From the tax revenue from the organization gaming 
6licensee located in one of the following townships of Cook 
7County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or 
8Worth, an amount equal to 5% of the adjusted gross receipts 
9generated by that organization gaming licensee shall be 
10remitted monthly, subject to appropriation, as follows: 2% to 
11the unit of local government in which the organization gaming 
12licensee is located, and 3% shall be distributed: (A) in 
13accordance with a regional capital development plan entered 
14into by the following communities: Village of Beecher, City of 
15Blue Island, Village of Burnham, City of Calumet City, Village 
16of Calumet Park, City of Chicago Heights, City of Country Club 
17Hills, Village of Crestwood, Village of Crete, Village of 
18Dixmoor, Village of Dolton, Village of East Hazel Crest, 
19Village of Flossmoor, Village of Ford Heights, Village of 
20Glenwood, City of Harvey, Village of Hazel Crest, Village of 
21Homewood, Village of Lansing, Village of Lynwood, City of 
22Markham, Village of Matteson, Village of Midlothian, Village 
23of Monee, City of Oak Forest, Village of Olympia Fields, 
24Village of Orland Hills, Village of Orland Park, City of Palos 
25Heights, Village of Park Forest, Village of Phoenix, Village 
26of Posen, Village of Richton Park, Village of Riverdale, 
 
 
10300HB4951sam002- 1135 -LRB103 38094 HLH 74177 a


1Village of Robbins, Village of Sauk Village, Village of South 
2Chicago Heights, Village of South Holland, Village of Steger, 
3Village of Thornton, Village of Tinley Park, Village of 
4University Park, and Village of Worth; or (B) if no regional 
5capital development plan exists, equally among the communities 
6listed in item (A) to be used for capital expenditures or 
7public pension payments, or both. 
8 (b-8) In lieu of the payments under subsection (b) of this 
9Section, from the tax revenue deposited in the State Gaming 
10Fund pursuant to riverboat or casino gambling operations 
11conducted by an owners licensee under paragraph (1) of 
12subsection (e-5) of Section 7, an amount equal to the tax 
13revenue generated from the privilege tax imposed by paragraph 
14(2) of subsection (a-5) that is to be paid to the City of 
15Chicago shall be paid monthly, subject to appropriation by the 
16General Assembly, as follows: (1) an amount equal to 0.5% of 
17the annual adjusted gross receipts generated by the owners 
18licensee under paragraph (1) of subsection (e-5) of Section 7 
19to the home rule county in which the owners licensee is located 
20for the purpose of enhancing the county's criminal justice 
21system; and (2) the balance to the City of Chicago and shall be 
22expended or obligated by the City of Chicago for pension 
23payments in accordance with Public Act 99-506. 
24 (c) Appropriations, as approved by the General Assembly, 
25may be made from the State Gaming Fund to the Board (i) for the 
26administration and enforcement of this Act and the Video 
 
 
10300HB4951sam002- 1136 -LRB103 38094 HLH 74177 a


1Gaming Act, (ii) for distribution to the Illinois State Police 
2and to the Department of Revenue for the enforcement of this 
3Act and the Video Gaming Act, and (iii) to the Department of 
4Human Services for the administration of programs to treat 
5problem gambling, including problem gambling from sports 
6wagering. The Board's annual appropriations request must 
7separately state its funding needs for the regulation of 
8gaming authorized under Section 7.7, riverboat gaming, casino 
9gaming, video gaming, and sports wagering.
10 (c-2) An amount equal to 2% of the adjusted gross receipts 
11generated by an organization gaming facility located within a 
12home rule county with a population of over 3,000,000 
13inhabitants shall be paid, subject to appropriation from the 
14General Assembly, from the State Gaming Fund to the home rule 
15county in which the organization gaming licensee is located 
16for the purpose of enhancing the county's criminal justice 
17system. 
18 (c-3) Appropriations, as approved by the General Assembly, 
19may be made from the tax revenue deposited into the State 
20Gaming Fund from organization gaming licensees pursuant to 
21this Section for the administration and enforcement of this 
22Act. 
23 (c-4) After payments required under subsections (b), 
24(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from 
25the tax revenue from organization gaming licensees deposited 
26into the State Gaming Fund under this Section, all remaining 
 
 
10300HB4951sam002- 1137 -LRB103 38094 HLH 74177 a


1amounts from organization gaming licensees shall be 
2transferred into the Capital Projects Fund.
3 (c-5) (Blank).
4 (c-10) Each year the General Assembly shall appropriate 
5from the General Revenue Fund to the Education Assistance Fund 
6an amount equal to the amount paid into the Horse Racing Equity 
7Fund pursuant to subsection (c-5) in the prior calendar year.
8 (c-15) After the payments required under subsections (b), 
9(c), and (c-5) have been made, an amount equal to 2% of the 
10adjusted gross receipts of (1) an owners licensee that 
11relocates pursuant to Section 11.2, (2) an owners licensee 
12conducting riverboat gambling operations pursuant to an owners 
13license that is initially issued after June 25, 1999, or (3) 
14the first riverboat gambling operations conducted by a 
15licensed manager on behalf of the State under Section 7.3, 
16whichever comes first, shall be paid, subject to appropriation 
17from the General Assembly, from the State Gaming Fund to each 
18home rule county with a population of over 3,000,000 
19inhabitants for the purpose of enhancing the county's criminal 
20justice system.
21 (c-20) Each year the General Assembly shall appropriate 
22from the General Revenue Fund to the Education Assistance Fund 
23an amount equal to the amount paid to each home rule county 
24with a population of over 3,000,000 inhabitants pursuant to 
25subsection (c-15) in the prior calendar year.
26 (c-21) After the payments required under subsections (b), 
 
 
10300HB4951sam002- 1138 -LRB103 38094 HLH 74177 a


1(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have 
2been made, an amount equal to 0.5% of the adjusted gross 
3receipts generated by the owners licensee under paragraph (1) 
4of subsection (e-5) of Section 7 shall be paid monthly, 
5subject to appropriation from the General Assembly, from the 
6State Gaming Fund to the home rule county in which the owners 
7licensee is located for the purpose of enhancing the county's 
8criminal justice system. 
9 (c-22) After the payments required under subsections (b), 
10(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and 
11(c-21) have been made, an amount equal to 2% of the adjusted 
12gross receipts generated by the owners licensee under 
13paragraph (5) of subsection (e-5) of Section 7 shall be paid, 
14subject to appropriation from the General Assembly, from the 
15State Gaming Fund to the home rule county in which the owners 
16licensee is located for the purpose of enhancing the county's 
17criminal justice system. 
18 (c-25) From July 1, 2013 and each July 1 thereafter 
19through July 1, 2019, $1,600,000 shall be transferred from the 
20State Gaming Fund to the Chicago State University Education 
21Improvement Fund.
22 On July 1, 2020 and each July 1 thereafter, $3,000,000 
23shall be transferred from the State Gaming Fund to the Chicago 
24State University Education Improvement Fund. 
25 (c-30) On July 1, 2013 or as soon as possible thereafter, 
26$92,000,000 shall be transferred from the State Gaming Fund to 
 
 
10300HB4951sam002- 1139 -LRB103 38094 HLH 74177 a


1the School Infrastructure Fund and $23,000,000 shall be 
2transferred from the State Gaming Fund to the Horse Racing 
3Equity Fund. 
4 (c-35) Beginning on July 1, 2013, in addition to any 
5amount transferred under subsection (c-30) of this Section, 
6$5,530,000 shall be transferred monthly from the State Gaming 
7Fund to the School Infrastructure Fund. 
8 (d) From time to time, through June 30, 2021, the Board 
9shall transfer the remainder of the funds generated by this 
10Act into the Education Assistance Fund.
11 (d-5) Beginning on July 1, 2021, on the last day of each 
12month, or as soon thereafter as possible, after all the 
13required expenditures, distributions, and transfers have been 
14made from the State Gaming Fund for the month pursuant to 
15subsections (b) through (c-35), at the direction of the Board, 
16the Comptroller shall direct and the Treasurer shall transfer 
17$22,500,000, along with any deficiencies in such amounts from 
18prior months in the same fiscal year, from the State Gaming 
19Fund to the Education Assistance Fund; then, at the direction 
20of the Board, the Comptroller shall direct and the Treasurer 
21shall transfer the remainder of the funds generated by this 
22Act, if any, from the State Gaming Fund to the Capital Projects 
23Fund. 
24 (e) Nothing in this Act shall prohibit the unit of local 
25government designated as the home dock of the riverboat from 
26entering into agreements with other units of local government 
 
 
10300HB4951sam002- 1140 -LRB103 38094 HLH 74177 a


1in this State or in other states to share its portion of the 
2tax revenue.
3 (f) To the extent practicable, the Board shall administer 
4and collect the wagering taxes imposed by this Section in a 
5manner consistent with the provisions of Sections 4, 5, 5a, 
65b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of 
7the Retailers' Occupation Tax Act and Section 3-7 of the 
8Uniform Penalty and Interest Act.
9(Source: P.A. 102-16, eff. 6-17-21; 102-538, eff. 8-20-21; 
10102-689, eff. 12-17-21; 102-699, eff. 4-19-22; 103-8, eff. 
116-7-23; 103-574, eff. 12-8-23.)

12
ARTICLE 165.


13 Section 165-5. The Illinois Local Library Act is amended 
14by changing Section 4-9 as follows:

15 (75 ILCS 5/4-9) (from Ch. 81, par. 4-9)
16 Sec. 4-9. In townships and in cities, villages and 
17incorporated towns having a population of 500,000 or less, the 
18board of trustees shall require the treasurer of such board or 
19such other person as may be designated as the custodian of the 
20moneys paid over to such board to give a bond to be approved by 
21such board and in such amount, not less than 10% 50% of the 
22total funds received by the library in the last fiscal year, 
23conditioned that he will safely keep and pay over upon the 
 
 
10300HB4951sam002- 1141 -LRB103 38094 HLH 74177 a


1order of such board all funds received and held by him for such 
2board of trustees. For a library in a city, village, 
3incorporated town or township, the board of library trustees 
4may designate the treasurer of the corporate authority, or the 
5supervisor in the case of a township, as the custodian of the 
6library fund, and the bond given by the treasurer or the 
7supervisor shall satisfy the bond requirements of this section 
8when properly endorsed. The cost of any surety bond shall be 
9borne by the library. As an alternative to a personal bond on 
10the treasurer or custodian of funds, the board of trustees may 
11require the treasurer or custodian to secure for the library 
12an insurance policy or other insurance instrument that 
13provides the library with coverage for negligent or 
14intentional acts by library officials and employees that could 
15result in the loss of library funds. The coverage shall be in 
16an amount at least equal to 10% 50% of the average amount of 
17the library's operating fund from the prior 3 fiscal years. 
18The coverage shall be placed with an insurer approved by the 
19board. The cost of any such coverage shall be borne by the 
20library. The library shall provide the Illinois State Library 
21a copy of the library's certificate of insurance at the time 
22the library's annual report is filed. 
23(Source: P.A. 97-101, eff. 1-1-12.)

24 Section 165-10. The Illinois Library System Act is amended 
25by changing Section 5 as follows:

 
 
10300HB4951sam002- 1142 -LRB103 38094 HLH 74177 a


1 (75 ILCS 10/5) (from Ch. 81, par. 115)
2 Sec. 5. Each library system created as provided in Section 
34 of this Act shall be governed by a board of directors 
4numbering at least 5 and no more than 15 persons, except as 
5required by Section 6 for library systems in cities with a 
6population of 500,000 or more. The board shall be 
7representative of the variety of library interests in the 
8system, and at least a majority shall be elected or selected 
9from the governing boards of the member public libraries, with 
10not more than one director representing a single member 
11library. For library systems as defined in subparagraph (3) of 
12the definition of "library system" in Section 2, the board 
13members shall be representative of the types of libraries that 
14library system serves. The number of directors, the manner of 
15election or selection, the term of office and the provision 
16for filling vacancies shall be determined by the system 
17governing board except that all board members must be eligible 
18electors in the geographical area of the system. No director 
19of any library system, however, shall be permitted to serve 
20for more than a total of 6 years unless 2 years have elapsed 
21since his sixth year of service.
22 The board of directors shall elect a president, secretary 
23and treasurer. Before entering upon his duties, the treasurer 
24shall be required to give a bond in an amount to be approved by 
25the board, but in no case shall such amount be less than 10% 
 
 
10300HB4951sam002- 1143 -LRB103 38094 HLH 74177 a


150% of the system's area and per capita grant for the previous 
2year, conditioned that he will safely keep and pay over upon 
3the order of such board all funds received and held by him for 
4the library system. As an alternative to a personal bond on the 
5treasurer, the board of trustees may require the treasurer to 
6secure for the system an insurance policy or other insurance 
7instrument that provides the library with coverage for 
8negligent or intentional acts by system officials and 
9employees that could result in the loss of system funds. The 
10coverage shall be in an amount at least equal to 10% 50% of the 
11average amount of the system's operating fund from the prior 3 
12fiscal years. The coverage shall be placed with an insurer 
13approved by the board. The cost of any such coverage shall be 
14borne by the system. The system shall provide the Illinois 
15State Library a copy of the system's certificate of insurance 
16at the time the system's annual report is filed. The funds of 
17the library system shall be deposited in a bank or savings and 
18loan association designated by the board of directors and 
19shall be expended only under the direction of such board upon 
20properly authenticated vouchers.
21 No bank or savings and loan association shall receive 
22public funds as permitted by this Section, unless it has 
23complied with the requirements established pursuant to Section 
246 of the Public Funds Investment Act.
25 The members of the board of directors of the library 
26system shall serve without compensation but their actual and 
 
 
10300HB4951sam002- 1144 -LRB103 38094 HLH 74177 a


1necessary expenses shall be a proper charge against the 
2library fund.
3(Source: P.A. 97-101, eff. 1-1-12.)

4 Section 165-15. The Public Library District Act of 1991 is 
5amended by changing Section 30-45 as follows:

6 (75 ILCS 16/30-45)
7 Sec. 30-45. Duties of officers. 
8 (a) The duties of the officers of the board are as provided 
9in this Section.
10 (b) The president shall preside over all meetings, appoint 
11members of committees authorized by the district's 
12regulations, and perform other duties specified by the 
13district's regulations, ordinances, or other appropriate 
14action. In the president's absence, the vice president shall 
15preside at meetings. The president shall not have or exercise 
16veto powers.
17 (c) The vice president's duties shall be prescribed by 
18regulations.
19 (d) The treasurer shall keep and maintain accounts and 
20records of the district during the treasurer's term in office, 
21indicating in those accounts and records a record of all 
22receipts, disbursements, and balances in any funds.
23 Annual audit and financial report requirements shall 
24conform with Section 3 of the Governmental Account Audit Act.
 
 
10300HB4951sam002- 1145 -LRB103 38094 HLH 74177 a


1 (e) The treasurer shall give bond to the district to 
2faithfully discharge the duties of the office and to account 
3to the district for all district funds coming into the 
4treasurer's hands. The bond shall be in an amount and with 
5sureties approved by the board. The amount of the bond shall be 
6based upon a minimum of 10% 50% of the total funds received by 
7the district in the last previous fiscal year. The cost of any 
8surety bond shall be borne by the district. As an alternative 
9to a personal bond on the treasurer, the treasurer may secure 
10for the district an insurance policy or other insurance 
11instrument that provides the district with coverage for 
12negligent or intentional acts by district officials and 
13employees that could result in the loss of district funds. The 
14coverage shall be in an amount at least equal to 10% 50% of the 
15average amount of the district's operating fund from the prior 
163 fiscal years. The coverage shall be placed with an insurer 
17approved by the board. The cost of any such coverage shall be 
18borne by the district. The system shall provide the Illinois 
19State Library a copy of the district's certificate of 
20insurance at the time the district's annual report is filed.
21 (f) Any person, entity, or public body or agency 
22possessing district funds, property, or records shall, upon 
23demand by any trustee, transfer and release the funds, 
24property, or records to the treasurer.
25 (g) The secretary shall keep and maintain appropriate 
26records for his or her term in office and shall include in 
 
 
10300HB4951sam002- 1146 -LRB103 38094 HLH 74177 a


1those records a record of the minutes of all meetings, the 
2names of those in attendance, the ordinances enacted, the 
3resolutions and regulations adopted, and all other pertinent 
4written matter affecting the operation of the district. The 
5secretary may administer oaths and affirmations for the 
6purposes of this Act.
7(Source: P.A. 97-101, eff. 1-1-12.)

8
ARTICLE 170.


9 Section 170-1. Short title. This Act may be cited as the 
10Illinois Gives Tax Credit Act. References in this Article to 
11"this Act" mean this Article.

12 Section 170-5. Definitions. As used in this Act:
13 "Business entity" means a corporation (including a 
14Subchapter S corporation), trust, estate, partnership, limited 
15liability company, or sole proprietorship.
16 "Credit-eligible endowment gift" means an endowment gift 
17for which a taxpayer intends to apply for an income tax credit 
18under this Act.
19 "Department" means the Department of Revenue.
20 "Donor advised fund" has the meaning given to that term in 
21subsection (d) of Section 4966 of the Internal Revenue Code of 
221986.
23 "Endowment gift" means an irrevocable contribution to a 
 
 
10300HB4951sam002- 1147 -LRB103 38094 HLH 74177 a


1permanent endowment fund held by a qualified community 
2foundation.
3 "Permanent endowment fund" means a fund that (i) is held 
4by a qualified community foundation, (ii) provides charitable 
5grants exclusively for the benefit of residents of the State 
6or charities and charitable projects located in the State, 
7(iii) is intended to exist in perpetuity, (iv) has an annual 
8spending rate based on the foundation spending policy, but not 
9to exceed 7%, and (v) is not a donor advised fund.
10 "Qualified community foundation" means a community 
11foundation or similar publicly supported organization 
12described in Section 170 (b)(1)(A)(vi) of the Internal Revenue 
13Code of 1986 that is organized or operating in this State and 
14that substantially complies with the national standards for 
15U.S. community foundations established by the Community 
16Foundations National Standards, as determined by the 
17Department.
18 "Taxpayer" means any individual who is subject to the tax 
19imposed under subsections (a) and (b) of Section 201 of the 
20Illinois Income Tax Act or any business entity that is subject 
21to the tax imposed under subsections (a) and (b) of Section 201 
22of the Illinois Income Tax Act.

23 Section 170-10. Tax credit awards; limitations. 
24 (a) For taxable years ending on or after December 31, 2025 
25and ending before January 1, 2030, the Department shall award, 
 
 
10300HB4951sam002- 1148 -LRB103 38094 HLH 74177 a


1in accordance with this Act, income tax credits to taxpayers 
2who provide an endowment gift to a permanent endowment fund 
3during the taxable year and receive a certificate of receipt 
4under Section 170-15 for that gift. Subject to the limitations 
5in this Section, the amount of the credit that may be awarded 
6to a taxpayer by the Department under this Act is an amount 
7equal to 25% of the endowment gift.
8 (b) The aggregate amount of all Illinois Gives tax credits 
9awarded by the Department under this Act in any calendar year 
10may not exceed $5,000,000.
11 (c) The aggregate amount of all Illinois Gives tax credits 
12that the Department may award to any taxpayer under this Act in 
13any calendar year may not exceed $100,000.
14 (d) The amount of contributions to any specific qualified 
15community foundation that are eligible for Illinois Gives tax 
16credits under this Section in any calendar year shall not 
17exceed $3,000,000.
18 (e) Of the annual amount available for tax credits, 25% 
19must be reserved for endowment gifts that do not exceed the 
20small gift maximum set forth in this subsection. The small 
21gift maximum is $25,000. For purposes of determining if a 
22donation meets the small gift maximum, the amount of the 
23credit authorization certificate under Section 170-15 shall be 
24used.
25 (f) For the purpose of this Section, a credit is 
26considered to be awarded on the date the Department issues an 
 
 
10300HB4951sam002- 1149 -LRB103 38094 HLH 74177 a


1approved contribution authorization certificate under Section 
2170-15.

3 Section 170-15. Applications for tax credits. 
4 (a) The taxpayer shall apply to the Department, in the 
5form and manner prescribed by the Department, for a 
6contribution authorization certificate. A taxpayer who makes 
7more than one credit-eligible endowment gift must make a 
8separate application for each contribution authorization 
9certificate. Applications under this subsection shall be 
10reviewed by the Department and shall either be approved or 
11denied. Each approved contribution authorization certificate 
12shall be sent to the taxpayer within 3 business days after the 
13certificate is approved. The Department shall maintain on its 
14website a running total of: (i) the total amount of credits 
15remaining under this Act for which taxpayers may apply for a 
16contribution authorization certificate issued in the calendar 
17year; (ii) the total amount of credits allocated during the 
18calendar year for each specific community foundation; and 
19(iii) the total amount remaining for the calendar year under 
20the small gift maximum set forth in Section 170-10. Those 
21running totals shall be updated every business day. 
22 (b) The taxpayer shall make the endowment gift to the 
23permanent endowment fund either prior to or within 10 business 
24days after the taxpayer receives the approved contribution 
25authorization certificate under subsection (a). The qualified 
 
 
10300HB4951sam002- 1150 -LRB103 38094 HLH 74177 a


1community foundation shall, within 30 business days after 
2receipt of an endowment gift for which a contribution 
3authorization certificate has been approved by the Department 
4under subsection (a), issue to the taxpayer a written 
5certificate of receipt, which shall contain the information 
6required by the Department by rule. No receipt shall be issued 
7for amounts that are not actually received by the qualified 
8community foundation within 10 business days after the 
9taxpayer receives the approved contribution authorization 
10certificate.

11 Section 170-20. Approval to issue certificates of receipt. 
12 (a) A qualified community foundation shall submit an 
13application for approval to issue certificates of receipt, in 
14the form and manner prescribed by the Department, provided 
15that each application shall include:
16  (1) documentary evidence that the qualified community 
17 foundation meets the qualifications under Section 
18 170(b)(1)(A)(vi) of the Internal Revenue Code and 
19 substantially complies with the standards established by 
20 Community Foundations National Standards;
21  (2) certification that the qualified community 
22 foundation holds a permanent endowment fund meeting the 
23 criteria established in Section 170-5;
24  (3) a list of the names and addresses of all members of 
25 the governing board of the qualified community foundation; 
 
 
10300HB4951sam002- 1151 -LRB103 38094 HLH 74177 a


1 and 
2  (4) a copy of the most recent financial audit of the 
3 qualified community foundation's accounts and records 
4 conducted by an independent certified public accountant in 
5 accordance with auditing standards generally accepted in 
6 the United States, government auditing standards, and 
7 rules adopted by the Department. 
8 (b) The Department shall review and either approve or deny 
9each application to issue certificates of receipt pursuant to 
10this Act. Approval or denial of an application shall be made on 
11a periodic basis. Applicants shall be notified of the 
12Department's determination within 30 business days after the 
13application is received.

14 Section 170-25. Certificates of receipt. 
15 (a) No qualified community foundation shall issue a 
16certificate of receipt for any qualified contribution made by 
17a taxpayer under this Act unless that qualified community 
18foundation has been approved to issue certificates of receipt 
19pursuant to Section 170-20 of this Act.
20 (b) No qualified community foundation shall issue a 
21certificate of receipt for a contribution made by a taxpayer 
22unless the taxpayer has been issued a credit authorization 
23certificate by the Department.
24 (c) If a taxpayer makes a contribution to a qualified 
25community foundation prior to the date by which the authorized 
 
 
10300HB4951sam002- 1152 -LRB103 38094 HLH 74177 a


1contribution shall be made as provided in Section 170-15, the 
2qualified community foundation shall, within 30 business days 
3after receipt of the authorized contribution, issue to the 
4taxpayer a written certificate of receipt.
5 (d) If a taxpayer fails to make all or a portion of a 
6contribution prior to the date by which such authorized 
7contribution is required to be made, the taxpayer shall not be 
8entitled to a certificate of receipt for that portion of the 
9authorized contribution not made.
10 (e) Each certificate of receipt shall state:
11  (1) the name and address of the issuing qualified 
12 community foundation; 
13  (2) the taxpayer's name and address;
14  (3) the date of each qualified contribution;
15  (4) the amount of each qualified contribution;
16  (5) the total qualified contribution amount; and
17  (6) any other information that the Department deems 
18 necessary.
19 (f) Upon the issuance of a certificate of receipt, the 
20issuing qualified community foundation shall, within 10 
21business days after issuing the certificate of receipt, 
22provide the Department with notification of the issuance of 
23such certificate, in the form and manner prescribed by the 
24Department, provided that such notification shall include:
25  (1) the taxpayer's name and address;
26  (2) the date of the issuance of a certificate of 
 
 
10300HB4951sam002- 1153 -LRB103 38094 HLH 74177 a


1 receipt;
2  (3) the qualified contribution date or dates and the 
3 amounts contributed on such dates; 
4  (4) the total qualified contribution listed on such 
5 certificates;
6  (5) the issuing qualified community foundation's name 
7 and address; and
8  (6) any other information the Department may deem 
9 necessary.
10 (g) Any portion of a contribution that a taxpayer fails to 
11make by the date indicated on the authorized contribution 
12certificate shall no longer be deducted from the cap 
13prescribed in Section 170-10 of this Act.

14 Section 170-30. Annual report. By March 31, 2026, and by 
15March 31 of each subsequent year, the Department must submit 
16an annual report to the Governor and the General Assembly 
17concerning the activities conducted under this Act during the 
18previous calendar year. The report must include a detailed 
19listing of tax credits authorized under this Act by the 
20Department. The report may not disclose any information if the 
21disclosure would violate Section 917 of the Illinois Income 
22Tax Act.

23 Section 170-35. Rulemaking. The Department may adopt rules 
24for the implementation of this Act.

 
 
10300HB4951sam002- 1154 -LRB103 38094 HLH 74177 a


1 Section 170-90. The Illinois Income Tax Act is amended by 
2changing Section 203 and by adding Section 241 as follows:

3 (35 ILCS 5/203)
4 Sec. 203. Base income defined. 
5 (a) Individuals.
6  (1) In general. In the case of an individual, base 
7 income means an amount equal to the taxpayer's adjusted 
8 gross income for the taxable year as modified by paragraph 
9 (2).
10  (2) Modifications. The adjusted gross income referred 
11 to in paragraph (1) shall be modified by adding thereto 
12 the sum of the following amounts:
13   (A) An amount equal to all amounts paid or accrued 
14 to the taxpayer as interest or dividends during the 
15 taxable year to the extent excluded from gross income 
16 in the computation of adjusted gross income, except 
17 stock dividends of qualified public utilities 
18 described in Section 305(e) of the Internal Revenue 
19 Code;
20   (B) An amount equal to the amount of tax imposed by 
21 this Act to the extent deducted from gross income in 
22 the computation of adjusted gross income for the 
23 taxable year;
24   (C) An amount equal to the amount received during 
 
 
10300HB4951sam002- 1155 -LRB103 38094 HLH 74177 a


1 the taxable year as a recovery or refund of real 
2 property taxes paid with respect to the taxpayer's 
3 principal residence under the Revenue Act of 1939 and 
4 for which a deduction was previously taken under 
5 subparagraph (L) of this paragraph (2) prior to July 
6 1, 1991, the retrospective application date of Article 
7 4 of Public Act 87-17. In the case of multi-unit or 
8 multi-use structures and farm dwellings, the taxes on 
9 the taxpayer's principal residence shall be that 
10 portion of the total taxes for the entire property 
11 which is attributable to such principal residence;
12   (D) An amount equal to the amount of the capital 
13 gain deduction allowable under the Internal Revenue 
14 Code, to the extent deducted from gross income in the 
15 computation of adjusted gross income;
16   (D-5) An amount, to the extent not included in 
17 adjusted gross income, equal to the amount of money 
18 withdrawn by the taxpayer in the taxable year from a 
19 medical care savings account and the interest earned 
20 on the account in the taxable year of a withdrawal 
21 pursuant to subsection (b) of Section 20 of the 
22 Medical Care Savings Account Act or subsection (b) of 
23 Section 20 of the Medical Care Savings Account Act of 
24 2000;
25   (D-10) For taxable years ending after December 31, 
26 1997, an amount equal to any eligible remediation 
 
 
10300HB4951sam002- 1156 -LRB103 38094 HLH 74177 a


1 costs that the individual deducted in computing 
2 adjusted gross income and for which the individual 
3 claims a credit under subsection (l) of Section 201;
4   (D-15) For taxable years 2001 and thereafter, an 
5 amount equal to the bonus depreciation deduction taken 
6 on the taxpayer's federal income tax return for the 
7 taxable year under subsection (k) of Section 168 of 
8 the Internal Revenue Code;
9   (D-16) If the taxpayer sells, transfers, abandons, 
10 or otherwise disposes of property for which the 
11 taxpayer was required in any taxable year to make an 
12 addition modification under subparagraph (D-15), then 
13 an amount equal to the aggregate amount of the 
14 deductions taken in all taxable years under 
15 subparagraph (Z) with respect to that property.
16   If the taxpayer continues to own property through 
17 the last day of the last tax year for which a 
18 subtraction is allowed with respect to that property 
19 under subparagraph (Z) and for which the taxpayer was 
20 allowed in any taxable year to make a subtraction 
21 modification under subparagraph (Z), then an amount 
22 equal to that subtraction modification. 
23   The taxpayer is required to make the addition 
24 modification under this subparagraph only once with 
25 respect to any one piece of property;
26   (D-17) An amount equal to the amount otherwise 
 
 
10300HB4951sam002- 1157 -LRB103 38094 HLH 74177 a


1 allowed as a deduction in computing base income for 
2 interest paid, accrued, or incurred, directly or 
3 indirectly, (i) for taxable years ending on or after 
4 December 31, 2004, to a foreign person who would be a 
5 member of the same unitary business group but for the 
6 fact that foreign person's business activity outside 
7 the United States is 80% or more of the foreign 
8 person's total business activity and (ii) for taxable 
9 years ending on or after December 31, 2008, to a person 
10 who would be a member of the same unitary business 
11 group but for the fact that the person is prohibited 
12 under Section 1501(a)(27) from being included in the 
13 unitary business group because he or she is ordinarily 
14 required to apportion business income under different 
15 subsections of Section 304. The addition modification 
16 required by this subparagraph shall be reduced to the 
17 extent that dividends were included in base income of 
18 the unitary group for the same taxable year and 
19 received by the taxpayer or by a member of the 
20 taxpayer's unitary business group (including amounts 
21 included in gross income under Sections 951 through 
22 964 of the Internal Revenue Code and amounts included 
23 in gross income under Section 78 of the Internal 
24 Revenue Code) with respect to the stock of the same 
25 person to whom the interest was paid, accrued, or 
26 incurred.
 
 
10300HB4951sam002- 1158 -LRB103 38094 HLH 74177 a


1   This paragraph shall not apply to the following: 
2    (i) an item of interest paid, accrued, or 
3 incurred, directly or indirectly, to a person who 
4 is subject in a foreign country or state, other 
5 than a state which requires mandatory unitary 
6 reporting, to a tax on or measured by net income 
7 with respect to such interest; or
8    (ii) an item of interest paid, accrued, or 
9 incurred, directly or indirectly, to a person if 
10 the taxpayer can establish, based on a 
11 preponderance of the evidence, both of the 
12 following:
13     (a) the person, during the same taxable 
14 year, paid, accrued, or incurred, the interest 
15 to a person that is not a related member, and
16     (b) the transaction giving rise to the 
17 interest expense between the taxpayer and the 
18 person did not have as a principal purpose the 
19 avoidance of Illinois income tax, and is paid 
20 pursuant to a contract or agreement that 
21 reflects an arm's-length interest rate and 
22 terms; or 
23    (iii) the taxpayer can establish, based on 
24 clear and convincing evidence, that the interest 
25 paid, accrued, or incurred relates to a contract 
26 or agreement entered into at arm's-length rates 
 
 
10300HB4951sam002- 1159 -LRB103 38094 HLH 74177 a


1 and terms and the principal purpose for the 
2 payment is not federal or Illinois tax avoidance; 
3 or 
4    (iv) an item of interest paid, accrued, or 
5 incurred, directly or indirectly, to a person if 
6 the taxpayer establishes by clear and convincing 
7 evidence that the adjustments are unreasonable; or 
8 if the taxpayer and the Director agree in writing 
9 to the application or use of an alternative method 
10 of apportionment under Section 304(f). 
11    Nothing in this subsection shall preclude the 
12 Director from making any other adjustment 
13 otherwise allowed under Section 404 of this Act 
14 for any tax year beginning after the effective 
15 date of this amendment provided such adjustment is 
16 made pursuant to regulation adopted by the 
17 Department and such regulations provide methods 
18 and standards by which the Department will utilize 
19 its authority under Section 404 of this Act; 
20   (D-18) An amount equal to the amount of intangible 
21 expenses and costs otherwise allowed as a deduction in 
22 computing base income, and that were paid, accrued, or 
23 incurred, directly or indirectly, (i) for taxable 
24 years ending on or after December 31, 2004, to a 
25 foreign person who would be a member of the same 
26 unitary business group but for the fact that the 
 
 
10300HB4951sam002- 1160 -LRB103 38094 HLH 74177 a


1 foreign person's business activity outside the United 
2 States is 80% or more of that person's total business 
3 activity and (ii) for taxable years ending on or after 
4 December 31, 2008, to a person who would be a member of 
5 the same unitary business group but for the fact that 
6 the person is prohibited under Section 1501(a)(27) 
7 from being included in the unitary business group 
8 because he or she is ordinarily required to apportion 
9 business income under different subsections of Section 
10 304. The addition modification required by this 
11 subparagraph shall be reduced to the extent that 
12 dividends were included in base income of the unitary 
13 group for the same taxable year and received by the 
14 taxpayer or by a member of the taxpayer's unitary 
15 business group (including amounts included in gross 
16 income under Sections 951 through 964 of the Internal 
17 Revenue Code and amounts included in gross income 
18 under Section 78 of the Internal Revenue Code) with 
19 respect to the stock of the same person to whom the 
20 intangible expenses and costs were directly or 
21 indirectly paid, incurred, or accrued. The preceding 
22 sentence does not apply to the extent that the same 
23 dividends caused a reduction to the addition 
24 modification required under Section 203(a)(2)(D-17) of 
25 this Act. As used in this subparagraph, the term 
26 "intangible expenses and costs" includes (1) expenses, 
 
 
10300HB4951sam002- 1161 -LRB103 38094 HLH 74177 a


1 losses, and costs for, or related to, the direct or 
2 indirect acquisition, use, maintenance or management, 
3 ownership, sale, exchange, or any other disposition of 
4 intangible property; (2) losses incurred, directly or 
5 indirectly, from factoring transactions or discounting 
6 transactions; (3) royalty, patent, technical, and 
7 copyright fees; (4) licensing fees; and (5) other 
8 similar expenses and costs. For purposes of this 
9 subparagraph, "intangible property" includes patents, 
10 patent applications, trade names, trademarks, service 
11 marks, copyrights, mask works, trade secrets, and 
12 similar types of intangible assets.
13   This paragraph shall not apply to the following:
14    (i) any item of intangible expenses or costs 
15 paid, accrued, or incurred, directly or 
16 indirectly, from a transaction with a person who 
17 is subject in a foreign country or state, other 
18 than a state which requires mandatory unitary 
19 reporting, to a tax on or measured by net income 
20 with respect to such item; or
21    (ii) any item of intangible expense or cost 
22 paid, accrued, or incurred, directly or 
23 indirectly, if the taxpayer can establish, based 
24 on a preponderance of the evidence, both of the 
25 following:
26     (a) the person during the same taxable 
 
 
10300HB4951sam002- 1162 -LRB103 38094 HLH 74177 a


1 year paid, accrued, or incurred, the 
2 intangible expense or cost to a person that is 
3 not a related member, and
4     (b) the transaction giving rise to the 
5 intangible expense or cost between the 
6 taxpayer and the person did not have as a 
7 principal purpose the avoidance of Illinois 
8 income tax, and is paid pursuant to a contract 
9 or agreement that reflects arm's-length terms; 
10 or
11    (iii) any item of intangible expense or cost 
12 paid, accrued, or incurred, directly or 
13 indirectly, from a transaction with a person if 
14 the taxpayer establishes by clear and convincing 
15 evidence, that the adjustments are unreasonable; 
16 or if the taxpayer and the Director agree in 
17 writing to the application or use of an 
18 alternative method of apportionment under Section 
19 304(f); 
20    Nothing in this subsection shall preclude the 
21 Director from making any other adjustment 
22 otherwise allowed under Section 404 of this Act 
23 for any tax year beginning after the effective 
24 date of this amendment provided such adjustment is 
25 made pursuant to regulation adopted by the 
26 Department and such regulations provide methods 
 
 
10300HB4951sam002- 1163 -LRB103 38094 HLH 74177 a


1 and standards by which the Department will utilize 
2 its authority under Section 404 of this Act; 
3   (D-19) For taxable years ending on or after 
4 December 31, 2008, an amount equal to the amount of 
5 insurance premium expenses and costs otherwise allowed 
6 as a deduction in computing base income, and that were 
7 paid, accrued, or incurred, directly or indirectly, to 
8 a person who would be a member of the same unitary 
9 business group but for the fact that the person is 
10 prohibited under Section 1501(a)(27) from being 
11 included in the unitary business group because he or 
12 she is ordinarily required to apportion business 
13 income under different subsections of Section 304. The 
14 addition modification required by this subparagraph 
15 shall be reduced to the extent that dividends were 
16 included in base income of the unitary group for the 
17 same taxable year and received by the taxpayer or by a 
18 member of the taxpayer's unitary business group 
19 (including amounts included in gross income under 
20 Sections 951 through 964 of the Internal Revenue Code 
21 and amounts included in gross income under Section 78 
22 of the Internal Revenue Code) with respect to the 
23 stock of the same person to whom the premiums and costs 
24 were directly or indirectly paid, incurred, or 
25 accrued. The preceding sentence does not apply to the 
26 extent that the same dividends caused a reduction to 
 
 
10300HB4951sam002- 1164 -LRB103 38094 HLH 74177 a


1 the addition modification required under Section 
2 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this 
3 Act; 
4   (D-20) For taxable years beginning on or after 
5 January 1, 2002 and ending on or before December 31, 
6 2006, in the case of a distribution from a qualified 
7 tuition program under Section 529 of the Internal 
8 Revenue Code, other than (i) a distribution from a 
9 College Savings Pool created under Section 16.5 of the 
10 State Treasurer Act or (ii) a distribution from the 
11 Illinois Prepaid Tuition Trust Fund, an amount equal 
12 to the amount excluded from gross income under Section 
13 529(c)(3)(B). For taxable years beginning on or after 
14 January 1, 2007, in the case of a distribution from a 
15 qualified tuition program under Section 529 of the 
16 Internal Revenue Code, other than (i) a distribution 
17 from a College Savings Pool created under Section 16.5 
18 of the State Treasurer Act, (ii) a distribution from 
19 the Illinois Prepaid Tuition Trust Fund, or (iii) a 
20 distribution from a qualified tuition program under 
21 Section 529 of the Internal Revenue Code that (I) 
22 adopts and determines that its offering materials 
23 comply with the College Savings Plans Network's 
24 disclosure principles and (II) has made reasonable 
25 efforts to inform in-state residents of the existence 
26 of in-state qualified tuition programs by informing 
 
 
10300HB4951sam002- 1165 -LRB103 38094 HLH 74177 a


1 Illinois residents directly and, where applicable, to 
2 inform financial intermediaries distributing the 
3 program to inform in-state residents of the existence 
4 of in-state qualified tuition programs at least 
5 annually, an amount equal to the amount excluded from 
6 gross income under Section 529(c)(3)(B).
7   For the purposes of this subparagraph (D-20), a 
8 qualified tuition program has made reasonable efforts 
9 if it makes disclosures (which may use the term 
10 "in-state program" or "in-state plan" and need not 
11 specifically refer to Illinois or its qualified 
12 programs by name) (i) directly to prospective 
13 participants in its offering materials or makes a 
14 public disclosure, such as a website posting; and (ii) 
15 where applicable, to intermediaries selling the 
16 out-of-state program in the same manner that the 
17 out-of-state program distributes its offering 
18 materials;
19   (D-20.5) For taxable years beginning on or after 
20 January 1, 2018, in the case of a distribution from a 
21 qualified ABLE program under Section 529A of the 
22 Internal Revenue Code, other than a distribution from 
23 a qualified ABLE program created under Section 16.6 of 
24 the State Treasurer Act, an amount equal to the amount 
25 excluded from gross income under Section 529A(c)(1)(B) 
26 of the Internal Revenue Code; 
 
 
10300HB4951sam002- 1166 -LRB103 38094 HLH 74177 a


1   (D-21) For taxable years beginning on or after 
2 January 1, 2007, in the case of transfer of moneys from 
3 a qualified tuition program under Section 529 of the 
4 Internal Revenue Code that is administered by the 
5 State to an out-of-state program, an amount equal to 
6 the amount of moneys previously deducted from base 
7 income under subsection (a)(2)(Y) of this Section;
8   (D-21.5) For taxable years beginning on or after 
9 January 1, 2018, in the case of the transfer of moneys 
10 from a qualified tuition program under Section 529 or 
11 a qualified ABLE program under Section 529A of the 
12 Internal Revenue Code that is administered by this 
13 State to an ABLE account established under an 
14 out-of-state ABLE account program, an amount equal to 
15 the contribution component of the transferred amount 
16 that was previously deducted from base income under 
17 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this 
18 Section; 
19   (D-22) For taxable years beginning on or after 
20 January 1, 2009, and prior to January 1, 2018, in the 
21 case of a nonqualified withdrawal or refund of moneys 
22 from a qualified tuition program under Section 529 of 
23 the Internal Revenue Code administered by the State 
24 that is not used for qualified expenses at an eligible 
25 education institution, an amount equal to the 
26 contribution component of the nonqualified withdrawal 
 
 
10300HB4951sam002- 1167 -LRB103 38094 HLH 74177 a


1 or refund that was previously deducted from base 
2 income under subsection (a)(2)(y) of this Section, 
3 provided that the withdrawal or refund did not result 
4 from the beneficiary's death or disability. For 
5 taxable years beginning on or after January 1, 2018: 
6 (1) in the case of a nonqualified withdrawal or 
7 refund, as defined under Section 16.5 of the State 
8 Treasurer Act, of moneys from a qualified tuition 
9 program under Section 529 of the Internal Revenue Code 
10 administered by the State, an amount equal to the 
11 contribution component of the nonqualified withdrawal 
12 or refund that was previously deducted from base 
13 income under subsection (a)(2)(Y) of this Section, and 
14 (2) in the case of a nonqualified withdrawal or refund 
15 from a qualified ABLE program under Section 529A of 
16 the Internal Revenue Code administered by the State 
17 that is not used for qualified disability expenses, an 
18 amount equal to the contribution component of the 
19 nonqualified withdrawal or refund that was previously 
20 deducted from base income under subsection (a)(2)(HH) 
21 of this Section;
22   (D-23) An amount equal to the credit allowable to 
23 the taxpayer under Section 218(a) of this Act, 
24 determined without regard to Section 218(c) of this 
25 Act;
26   (D-24) For taxable years ending on or after 
 
 
10300HB4951sam002- 1168 -LRB103 38094 HLH 74177 a


1 December 31, 2017, an amount equal to the deduction 
2 allowed under Section 199 of the Internal Revenue Code 
3 for the taxable year; 
4   (D-25) In the case of a resident, an amount equal 
5 to the amount of tax for which a credit is allowed 
6 pursuant to Section 201(p)(7) of this Act; 
7 and by deducting from the total so obtained the sum of the 
8 following amounts:
9   (E) For taxable years ending before December 31, 
10 2001, any amount included in such total in respect of 
11 any compensation (including but not limited to any 
12 compensation paid or accrued to a serviceman while a 
13 prisoner of war or missing in action) paid to a 
14 resident by reason of being on active duty in the Armed 
15 Forces of the United States and in respect of any 
16 compensation paid or accrued to a resident who as a 
17 governmental employee was a prisoner of war or missing 
18 in action, and in respect of any compensation paid to a 
19 resident in 1971 or thereafter for annual training 
20 performed pursuant to Sections 502 and 503, Title 32, 
21 United States Code as a member of the Illinois 
22 National Guard or, beginning with taxable years ending 
23 on or after December 31, 2007, the National Guard of 
24 any other state. For taxable years ending on or after 
25 December 31, 2001, any amount included in such total 
26 in respect of any compensation (including but not 
 
 
10300HB4951sam002- 1169 -LRB103 38094 HLH 74177 a


1 limited to any compensation paid or accrued to a 
2 serviceman while a prisoner of war or missing in 
3 action) paid to a resident by reason of being a member 
4 of any component of the Armed Forces of the United 
5 States and in respect of any compensation paid or 
6 accrued to a resident who as a governmental employee 
7 was a prisoner of war or missing in action, and in 
8 respect of any compensation paid to a resident in 2001 
9 or thereafter by reason of being a member of the 
10 Illinois National Guard or, beginning with taxable 
11 years ending on or after December 31, 2007, the 
12 National Guard of any other state. The provisions of 
13 this subparagraph (E) are exempt from the provisions 
14 of Section 250;
15   (F) An amount equal to all amounts included in 
16 such total pursuant to the provisions of Sections 
17 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and 
18 408 of the Internal Revenue Code, or included in such 
19 total as distributions under the provisions of any 
20 retirement or disability plan for employees of any 
21 governmental agency or unit, or retirement payments to 
22 retired partners, which payments are excluded in 
23 computing net earnings from self employment by Section 
24 1402 of the Internal Revenue Code and regulations 
25 adopted pursuant thereto;
26   (G) The valuation limitation amount;
 
 
10300HB4951sam002- 1170 -LRB103 38094 HLH 74177 a


1   (H) An amount equal to the amount of any tax 
2 imposed by this Act which was refunded to the taxpayer 
3 and included in such total for the taxable year;
4   (I) An amount equal to all amounts included in 
5 such total pursuant to the provisions of Section 111 
6 of the Internal Revenue Code as a recovery of items 
7 previously deducted from adjusted gross income in the 
8 computation of taxable income;
9   (J) An amount equal to those dividends included in 
10 such total which were paid by a corporation which 
11 conducts business operations in a River Edge 
12 Redevelopment Zone or zones created under the River 
13 Edge Redevelopment Zone Act, and conducts 
14 substantially all of its operations in a River Edge 
15 Redevelopment Zone or zones. This subparagraph (J) is 
16 exempt from the provisions of Section 250;
17   (K) An amount equal to those dividends included in 
18 such total that were paid by a corporation that 
19 conducts business operations in a federally designated 
20 Foreign Trade Zone or Sub-Zone and that is designated 
21 a High Impact Business located in Illinois; provided 
22 that dividends eligible for the deduction provided in 
23 subparagraph (J) of paragraph (2) of this subsection 
24 shall not be eligible for the deduction provided under 
25 this subparagraph (K);
26   (L) For taxable years ending after December 31, 
 
 
10300HB4951sam002- 1171 -LRB103 38094 HLH 74177 a


1 1983, an amount equal to all social security benefits 
2 and railroad retirement benefits included in such 
3 total pursuant to Sections 72(r) and 86 of the 
4 Internal Revenue Code;
5   (M) With the exception of any amounts subtracted 
6 under subparagraph (N), an amount equal to the sum of 
7 all amounts disallowed as deductions by (i) Sections 
8 171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
9 and all amounts of expenses allocable to interest and 
10 disallowed as deductions by Section 265(a)(1) of the 
11 Internal Revenue Code; and (ii) for taxable years 
12 ending on or after August 13, 1999, Sections 
13 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
14 Internal Revenue Code, plus, for taxable years ending 
15 on or after December 31, 2011, Section 45G(e)(3) of 
16 the Internal Revenue Code and, for taxable years 
17 ending on or after December 31, 2008, any amount 
18 included in gross income under Section 87 of the 
19 Internal Revenue Code; the provisions of this 
20 subparagraph are exempt from the provisions of Section 
21 250;
22   (N) An amount equal to all amounts included in 
23 such total which are exempt from taxation by this 
24 State either by reason of its statutes or Constitution 
25 or by reason of the Constitution, treaties or statutes 
26 of the United States; provided that, in the case of any 
 
 
10300HB4951sam002- 1172 -LRB103 38094 HLH 74177 a


1 statute of this State that exempts income derived from 
2 bonds or other obligations from the tax imposed under 
3 this Act, the amount exempted shall be the interest 
4 net of bond premium amortization;
5   (O) An amount equal to any contribution made to a 
6 job training project established pursuant to the Tax 
7 Increment Allocation Redevelopment Act;
8   (P) An amount equal to the amount of the deduction 
9 used to compute the federal income tax credit for 
10 restoration of substantial amounts held under claim of 
11 right for the taxable year pursuant to Section 1341 of 
12 the Internal Revenue Code or of any itemized deduction 
13 taken from adjusted gross income in the computation of 
14 taxable income for restoration of substantial amounts 
15 held under claim of right for the taxable year;
16   (Q) An amount equal to any amounts included in 
17 such total, received by the taxpayer as an 
18 acceleration in the payment of life, endowment or 
19 annuity benefits in advance of the time they would 
20 otherwise be payable as an indemnity for a terminal 
21 illness;
22   (R) An amount equal to the amount of any federal or 
23 State bonus paid to veterans of the Persian Gulf War;
24   (S) An amount, to the extent included in adjusted 
25 gross income, equal to the amount of a contribution 
26 made in the taxable year on behalf of the taxpayer to a 
 
 
10300HB4951sam002- 1173 -LRB103 38094 HLH 74177 a


1 medical care savings account established under the 
2 Medical Care Savings Account Act or the Medical Care 
3 Savings Account Act of 2000 to the extent the 
4 contribution is accepted by the account administrator 
5 as provided in that Act;
6   (T) An amount, to the extent included in adjusted 
7 gross income, equal to the amount of interest earned 
8 in the taxable year on a medical care savings account 
9 established under the Medical Care Savings Account Act 
10 or the Medical Care Savings Account Act of 2000 on 
11 behalf of the taxpayer, other than interest added 
12 pursuant to item (D-5) of this paragraph (2);
13   (U) For one taxable year beginning on or after 
14 January 1, 1994, an amount equal to the total amount of 
15 tax imposed and paid under subsections (a) and (b) of 
16 Section 201 of this Act on grant amounts received by 
17 the taxpayer under the Nursing Home Grant Assistance 
18 Act during the taxpayer's taxable years 1992 and 1993;
19   (V) Beginning with tax years ending on or after 
20 December 31, 1995 and ending with tax years ending on 
21 or before December 31, 2004, an amount equal to the 
22 amount paid by a taxpayer who is a self-employed 
23 taxpayer, a partner of a partnership, or a shareholder 
24 in a Subchapter S corporation for health insurance or 
25 long-term care insurance for that taxpayer or that 
26 taxpayer's spouse or dependents, to the extent that 
 
 
10300HB4951sam002- 1174 -LRB103 38094 HLH 74177 a


1 the amount paid for that health insurance or long-term 
2 care insurance may be deducted under Section 213 of 
3 the Internal Revenue Code, has not been deducted on 
4 the federal income tax return of the taxpayer, and 
5 does not exceed the taxable income attributable to 
6 that taxpayer's income, self-employment income, or 
7 Subchapter S corporation income; except that no 
8 deduction shall be allowed under this item (V) if the 
9 taxpayer is eligible to participate in any health 
10 insurance or long-term care insurance plan of an 
11 employer of the taxpayer or the taxpayer's spouse. The 
12 amount of the health insurance and long-term care 
13 insurance subtracted under this item (V) shall be 
14 determined by multiplying total health insurance and 
15 long-term care insurance premiums paid by the taxpayer 
16 times a number that represents the fractional 
17 percentage of eligible medical expenses under Section 
18 213 of the Internal Revenue Code of 1986 not actually 
19 deducted on the taxpayer's federal income tax return;
20   (W) For taxable years beginning on or after 
21 January 1, 1998, all amounts included in the 
22 taxpayer's federal gross income in the taxable year 
23 from amounts converted from a regular IRA to a Roth 
24 IRA. This paragraph is exempt from the provisions of 
25 Section 250;
26   (X) For taxable year 1999 and thereafter, an 
 
 
10300HB4951sam002- 1175 -LRB103 38094 HLH 74177 a


1 amount equal to the amount of any (i) distributions, 
2 to the extent includible in gross income for federal 
3 income tax purposes, made to the taxpayer because of 
4 his or her status as a victim of persecution for racial 
5 or religious reasons by Nazi Germany or any other Axis 
6 regime or as an heir of the victim and (ii) items of 
7 income, to the extent includible in gross income for 
8 federal income tax purposes, attributable to, derived 
9 from or in any way related to assets stolen from, 
10 hidden from, or otherwise lost to a victim of 
11 persecution for racial or religious reasons by Nazi 
12 Germany or any other Axis regime immediately prior to, 
13 during, and immediately after World War II, including, 
14 but not limited to, interest on the proceeds 
15 receivable as insurance under policies issued to a 
16 victim of persecution for racial or religious reasons 
17 by Nazi Germany or any other Axis regime by European 
18 insurance companies immediately prior to and during 
19 World War II; provided, however, this subtraction from 
20 federal adjusted gross income does not apply to assets 
21 acquired with such assets or with the proceeds from 
22 the sale of such assets; provided, further, this 
23 paragraph shall only apply to a taxpayer who was the 
24 first recipient of such assets after their recovery 
25 and who is a victim of persecution for racial or 
26 religious reasons by Nazi Germany or any other Axis 
 
 
10300HB4951sam002- 1176 -LRB103 38094 HLH 74177 a


1 regime or as an heir of the victim. The amount of and 
2 the eligibility for any public assistance, benefit, or 
3 similar entitlement is not affected by the inclusion 
4 of items (i) and (ii) of this paragraph in gross income 
5 for federal income tax purposes. This paragraph is 
6 exempt from the provisions of Section 250;
7   (Y) For taxable years beginning on or after 
8 January 1, 2002 and ending on or before December 31, 
9 2004, moneys contributed in the taxable year to a 
10 College Savings Pool account under Section 16.5 of the 
11 State Treasurer Act, except that amounts excluded from 
12 gross income under Section 529(c)(3)(C)(i) of the 
13 Internal Revenue Code shall not be considered moneys 
14 contributed under this subparagraph (Y). For taxable 
15 years beginning on or after January 1, 2005, a maximum 
16 of $10,000 contributed in the taxable year to (i) a 
17 College Savings Pool account under Section 16.5 of the 
18 State Treasurer Act or (ii) the Illinois Prepaid 
19 Tuition Trust Fund, except that amounts excluded from 
20 gross income under Section 529(c)(3)(C)(i) of the 
21 Internal Revenue Code shall not be considered moneys 
22 contributed under this subparagraph (Y). For purposes 
23 of this subparagraph, contributions made by an 
24 employer on behalf of an employee, or matching 
25 contributions made by an employee, shall be treated as 
26 made by the employee. This subparagraph (Y) is exempt 
 
 
10300HB4951sam002- 1177 -LRB103 38094 HLH 74177 a


1 from the provisions of Section 250;
2   (Z) For taxable years 2001 and thereafter, for the 
3 taxable year in which the bonus depreciation deduction 
4 is taken on the taxpayer's federal income tax return 
5 under subsection (k) of Section 168 of the Internal 
6 Revenue Code and for each applicable taxable year 
7 thereafter, an amount equal to "x", where:
8    (1) "y" equals the amount of the depreciation 
9 deduction taken for the taxable year on the 
10 taxpayer's federal income tax return on property 
11 for which the bonus depreciation deduction was 
12 taken in any year under subsection (k) of Section 
13 168 of the Internal Revenue Code, but not 
14 including the bonus depreciation deduction;
15    (2) for taxable years ending on or before 
16 December 31, 2005, "x" equals "y" multiplied by 30 
17 and then divided by 70 (or "y" multiplied by 
18 0.429); and
19    (3) for taxable years ending after December 
20 31, 2005:
21     (i) for property on which a bonus 
22 depreciation deduction of 30% of the adjusted 
23 basis was taken, "x" equals "y" multiplied by 
24 30 and then divided by 70 (or "y" multiplied 
25 by 0.429);
26     (ii) for property on which a bonus 
 
 
10300HB4951sam002- 1178 -LRB103 38094 HLH 74177 a


1 depreciation deduction of 50% of the adjusted 
2 basis was taken, "x" equals "y" multiplied by 
3 1.0;
4     (iii) for property on which a bonus 
5 depreciation deduction of 100% of the adjusted 
6 basis was taken in a taxable year ending on or 
7 after December 31, 2021, "x" equals the 
8 depreciation deduction that would be allowed 
9 on that property if the taxpayer had made the 
10 election under Section 168(k)(7) of the 
11 Internal Revenue Code to not claim bonus 
12 depreciation on that property; and
13     (iv) for property on which a bonus 
14 depreciation deduction of a percentage other 
15 than 30%, 50% or 100% of the adjusted basis 
16 was taken in a taxable year ending on or after 
17 December 31, 2021, "x" equals "y" multiplied 
18 by 100 times the percentage bonus depreciation 
19 on the property (that is, 100(bonus%)) and 
20 then divided by 100 times 1 minus the 
21 percentage bonus depreciation on the property 
22 (that is, 100(1-bonus%)). 
23   The aggregate amount deducted under this 
24 subparagraph in all taxable years for any one piece of 
25 property may not exceed the amount of the bonus 
26 depreciation deduction taken on that property on the 
 
 
10300HB4951sam002- 1179 -LRB103 38094 HLH 74177 a


1 taxpayer's federal income tax return under subsection 
2 (k) of Section 168 of the Internal Revenue Code. This 
3 subparagraph (Z) is exempt from the provisions of 
4 Section 250;
5   (AA) If the taxpayer sells, transfers, abandons, 
6 or otherwise disposes of property for which the 
7 taxpayer was required in any taxable year to make an 
8 addition modification under subparagraph (D-15), then 
9 an amount equal to that addition modification. 
10   If the taxpayer continues to own property through 
11 the last day of the last tax year for which a 
12 subtraction is allowed with respect to that property 
13 under subparagraph (Z) and for which the taxpayer was 
14 required in any taxable year to make an addition 
15 modification under subparagraph (D-15), then an amount 
16 equal to that addition modification. 
17   The taxpayer is allowed to take the deduction 
18 under this subparagraph only once with respect to any 
19 one piece of property.
20   This subparagraph (AA) is exempt from the 
21 provisions of Section 250;
22   (BB) Any amount included in adjusted gross income, 
23 other than salary, received by a driver in a 
24 ridesharing arrangement using a motor vehicle;
25   (CC) The amount of (i) any interest income (net of 
26 the deductions allocable thereto) taken into account 
 
 
10300HB4951sam002- 1180 -LRB103 38094 HLH 74177 a


1 for the taxable year with respect to a transaction 
2 with a taxpayer that is required to make an addition 
3 modification with respect to such transaction under 
4 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
5 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
6 the amount of that addition modification, and (ii) any 
7 income from intangible property (net of the deductions 
8 allocable thereto) taken into account for the taxable 
9 year with respect to a transaction with a taxpayer 
10 that is required to make an addition modification with 
11 respect to such transaction under Section 
12 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
13 203(d)(2)(D-8), but not to exceed the amount of that 
14 addition modification. This subparagraph (CC) is 
15 exempt from the provisions of Section 250;
16   (DD) An amount equal to the interest income taken 
17 into account for the taxable year (net of the 
18 deductions allocable thereto) with respect to 
19 transactions with (i) a foreign person who would be a 
20 member of the taxpayer's unitary business group but 
21 for the fact that the foreign person's business 
22 activity outside the United States is 80% or more of 
23 that person's total business activity and (ii) for 
24 taxable years ending on or after December 31, 2008, to 
25 a person who would be a member of the same unitary 
26 business group but for the fact that the person is 
 
 
10300HB4951sam002- 1181 -LRB103 38094 HLH 74177 a


1 prohibited under Section 1501(a)(27) from being 
2 included in the unitary business group because he or 
3 she is ordinarily required to apportion business 
4 income under different subsections of Section 304, but 
5 not to exceed the addition modification required to be 
6 made for the same taxable year under Section 
7 203(a)(2)(D-17) for interest paid, accrued, or 
8 incurred, directly or indirectly, to the same person. 
9 This subparagraph (DD) is exempt from the provisions 
10 of Section 250; 
11   (EE) An amount equal to the income from intangible 
12 property taken into account for the taxable year (net 
13 of the deductions allocable thereto) with respect to 
14 transactions with (i) a foreign person who would be a 
15 member of the taxpayer's unitary business group but 
16 for the fact that the foreign person's business 
17 activity outside the United States is 80% or more of 
18 that person's total business activity and (ii) for 
19 taxable years ending on or after December 31, 2008, to 
20 a person who would be a member of the same unitary 
21 business group but for the fact that the person is 
22 prohibited under Section 1501(a)(27) from being 
23 included in the unitary business group because he or 
24 she is ordinarily required to apportion business 
25 income under different subsections of Section 304, but 
26 not to exceed the addition modification required to be 
 
 
10300HB4951sam002- 1182 -LRB103 38094 HLH 74177 a


1 made for the same taxable year under Section 
2 203(a)(2)(D-18) for intangible expenses and costs 
3 paid, accrued, or incurred, directly or indirectly, to 
4 the same foreign person. This subparagraph (EE) is 
5 exempt from the provisions of Section 250;
6   (FF) An amount equal to any amount awarded to the 
7 taxpayer during the taxable year by the Court of 
8 Claims under subsection (c) of Section 8 of the Court 
9 of Claims Act for time unjustly served in a State 
10 prison. This subparagraph (FF) is exempt from the 
11 provisions of Section 250; 
12   (GG) For taxable years ending on or after December 
13 31, 2011, in the case of a taxpayer who was required to 
14 add back any insurance premiums under Section 
15 203(a)(2)(D-19), such taxpayer may elect to subtract 
16 that part of a reimbursement received from the 
17 insurance company equal to the amount of the expense 
18 or loss (including expenses incurred by the insurance 
19 company) that would have been taken into account as a 
20 deduction for federal income tax purposes if the 
21 expense or loss had been uninsured. If a taxpayer 
22 makes the election provided for by this subparagraph 
23 (GG), the insurer to which the premiums were paid must 
24 add back to income the amount subtracted by the 
25 taxpayer pursuant to this subparagraph (GG). This 
26 subparagraph (GG) is exempt from the provisions of 
 
 
10300HB4951sam002- 1183 -LRB103 38094 HLH 74177 a


1 Section 250; 
2   (HH) For taxable years beginning on or after 
3 January 1, 2018 and prior to January 1, 2028, a maximum 
4 of $10,000 contributed in the taxable year to a 
5 qualified ABLE account under Section 16.6 of the State 
6 Treasurer Act, except that amounts excluded from gross 
7 income under Section 529(c)(3)(C)(i) or Section 
8 529A(c)(1)(C) of the Internal Revenue Code shall not 
9 be considered moneys contributed under this 
10 subparagraph (HH). For purposes of this subparagraph 
11 (HH), contributions made by an employer on behalf of 
12 an employee, or matching contributions made by an 
13 employee, shall be treated as made by the employee; 
14   (II) For taxable years that begin on or after 
15 January 1, 2021 and begin before January 1, 2026, the 
16 amount that is included in the taxpayer's federal 
17 adjusted gross income pursuant to Section 61 of the 
18 Internal Revenue Code as discharge of indebtedness 
19 attributable to student loan forgiveness and that is 
20 not excluded from the taxpayer's federal adjusted 
21 gross income pursuant to paragraph (5) of subsection 
22 (f) of Section 108 of the Internal Revenue Code; and 
23   (JJ) For taxable years beginning on or after 
24 January 1, 2023, for any cannabis establishment 
25 operating in this State and licensed under the 
26 Cannabis Regulation and Tax Act or any cannabis 
 
 
10300HB4951sam002- 1184 -LRB103 38094 HLH 74177 a


1 cultivation center or medical cannabis dispensing 
2 organization operating in this State and licensed 
3 under the Compassionate Use of Medical Cannabis 
4 Program Act, an amount equal to the deductions that 
5 were disallowed under Section 280E of the Internal 
6 Revenue Code for the taxable year and that would not be 
7 added back under this subsection. The provisions of 
8 this subparagraph (JJ) are exempt from the provisions 
9 of Section 250; and . 
10   (KK) (JJ) To the extent includible in gross income 
11 for federal income tax purposes, any amount awarded or 
12 paid to the taxpayer as a result of a judgment or 
13 settlement for fertility fraud as provided in Section 
14 15 of the Illinois Fertility Fraud Act, donor 
15 fertility fraud as provided in Section 20 of the 
16 Illinois Fertility Fraud Act, or similar action in 
17 another state. 

18 (b) Corporations.
19  (1) In general. In the case of a corporation, base 
20 income means an amount equal to the taxpayer's taxable 
21 income for the taxable year as modified by paragraph (2).
22  (2) Modifications. The taxable income referred to in 
23 paragraph (1) shall be modified by adding thereto the sum 
24 of the following amounts:
25   (A) An amount equal to all amounts paid or accrued 
 
 
10300HB4951sam002- 1185 -LRB103 38094 HLH 74177 a


1 to the taxpayer as interest and all distributions 
2 received from regulated investment companies during 
3 the taxable year to the extent excluded from gross 
4 income in the computation of taxable income;
5   (B) An amount equal to the amount of tax imposed by 
6 this Act to the extent deducted from gross income in 
7 the computation of taxable income for the taxable 
8 year;
9   (C) In the case of a regulated investment company, 
10 an amount equal to the excess of (i) the net long-term 
11 capital gain for the taxable year, over (ii) the 
12 amount of the capital gain dividends designated as 
13 such in accordance with Section 852(b)(3)(C) of the 
14 Internal Revenue Code and any amount designated under 
15 Section 852(b)(3)(D) of the Internal Revenue Code, 
16 attributable to the taxable year (this amendatory Act 
17 of 1995 (Public Act 89-89) is declarative of existing 
18 law and is not a new enactment);
19   (D) The amount of any net operating loss deduction 
20 taken in arriving at taxable income, other than a net 
21 operating loss carried forward from a taxable year 
22 ending prior to December 31, 1986;
23   (E) For taxable years in which a net operating 
24 loss carryback or carryforward from a taxable year 
25 ending prior to December 31, 1986 is an element of 
26 taxable income under paragraph (1) of subsection (e) 
 
 
10300HB4951sam002- 1186 -LRB103 38094 HLH 74177 a


1 or subparagraph (E) of paragraph (2) of subsection 
2 (e), the amount by which addition modifications other 
3 than those provided by this subparagraph (E) exceeded 
4 subtraction modifications in such earlier taxable 
5 year, with the following limitations applied in the 
6 order that they are listed:
7    (i) the addition modification relating to the 
8 net operating loss carried back or forward to the 
9 taxable year from any taxable year ending prior to 
10 December 31, 1986 shall be reduced by the amount 
11 of addition modification under this subparagraph 
12 (E) which related to that net operating loss and 
13 which was taken into account in calculating the 
14 base income of an earlier taxable year, and
15    (ii) the addition modification relating to the 
16 net operating loss carried back or forward to the 
17 taxable year from any taxable year ending prior to 
18 December 31, 1986 shall not exceed the amount of 
19 such carryback or carryforward;
20   For taxable years in which there is a net 
21 operating loss carryback or carryforward from more 
22 than one other taxable year ending prior to December 
23 31, 1986, the addition modification provided in this 
24 subparagraph (E) shall be the sum of the amounts 
25 computed independently under the preceding provisions 
26 of this subparagraph (E) for each such taxable year;
 
 
10300HB4951sam002- 1187 -LRB103 38094 HLH 74177 a


1   (E-5) For taxable years ending after December 31, 
2 1997, an amount equal to any eligible remediation 
3 costs that the corporation deducted in computing 
4 adjusted gross income and for which the corporation 
5 claims a credit under subsection (l) of Section 201;
6   (E-10) For taxable years 2001 and thereafter, an 
7 amount equal to the bonus depreciation deduction taken 
8 on the taxpayer's federal income tax return for the 
9 taxable year under subsection (k) of Section 168 of 
10 the Internal Revenue Code;
11   (E-11) If the taxpayer sells, transfers, abandons, 
12 or otherwise disposes of property for which the 
13 taxpayer was required in any taxable year to make an 
14 addition modification under subparagraph (E-10), then 
15 an amount equal to the aggregate amount of the 
16 deductions taken in all taxable years under 
17 subparagraph (T) with respect to that property.
18   If the taxpayer continues to own property through 
19 the last day of the last tax year for which a 
20 subtraction is allowed with respect to that property 
21 under subparagraph (T) and for which the taxpayer was 
22 allowed in any taxable year to make a subtraction 
23 modification under subparagraph (T), then an amount 
24 equal to that subtraction modification. 
25   The taxpayer is required to make the addition 
26 modification under this subparagraph only once with 
 
 
10300HB4951sam002- 1188 -LRB103 38094 HLH 74177 a


1 respect to any one piece of property;
2   (E-12) An amount equal to the amount otherwise 
3 allowed as a deduction in computing base income for 
4 interest paid, accrued, or incurred, directly or 
5 indirectly, (i) for taxable years ending on or after 
6 December 31, 2004, to a foreign person who would be a 
7 member of the same unitary business group but for the 
8 fact the foreign person's business activity outside 
9 the United States is 80% or more of the foreign 
10 person's total business activity and (ii) for taxable 
11 years ending on or after December 31, 2008, to a person 
12 who would be a member of the same unitary business 
13 group but for the fact that the person is prohibited 
14 under Section 1501(a)(27) from being included in the 
15 unitary business group because he or she is ordinarily 
16 required to apportion business income under different 
17 subsections of Section 304. The addition modification 
18 required by this subparagraph shall be reduced to the 
19 extent that dividends were included in base income of 
20 the unitary group for the same taxable year and 
21 received by the taxpayer or by a member of the 
22 taxpayer's unitary business group (including amounts 
23 included in gross income pursuant to Sections 951 
24 through 964 of the Internal Revenue Code and amounts 
25 included in gross income under Section 78 of the 
26 Internal Revenue Code) with respect to the stock of 
 
 
10300HB4951sam002- 1189 -LRB103 38094 HLH 74177 a


1 the same person to whom the interest was paid, 
2 accrued, or incurred. 
3   This paragraph shall not apply to the following: 
4    (i) an item of interest paid, accrued, or 
5 incurred, directly or indirectly, to a person who 
6 is subject in a foreign country or state, other 
7 than a state which requires mandatory unitary 
8 reporting, to a tax on or measured by net income 
9 with respect to such interest; or
10    (ii) an item of interest paid, accrued, or 
11 incurred, directly or indirectly, to a person if 
12 the taxpayer can establish, based on a 
13 preponderance of the evidence, both of the 
14 following:
15     (a) the person, during the same taxable 
16 year, paid, accrued, or incurred, the interest 
17 to a person that is not a related member, and
18     (b) the transaction giving rise to the 
19 interest expense between the taxpayer and the 
20 person did not have as a principal purpose the 
21 avoidance of Illinois income tax, and is paid 
22 pursuant to a contract or agreement that 
23 reflects an arm's-length interest rate and 
24 terms; or 
25    (iii) the taxpayer can establish, based on 
26 clear and convincing evidence, that the interest 
 
 
10300HB4951sam002- 1190 -LRB103 38094 HLH 74177 a


1 paid, accrued, or incurred relates to a contract 
2 or agreement entered into at arm's-length rates 
3 and terms and the principal purpose for the 
4 payment is not federal or Illinois tax avoidance; 
5 or 
6    (iv) an item of interest paid, accrued, or 
7 incurred, directly or indirectly, to a person if 
8 the taxpayer establishes by clear and convincing 
9 evidence that the adjustments are unreasonable; or 
10 if the taxpayer and the Director agree in writing 
11 to the application or use of an alternative method 
12 of apportionment under Section 304(f). 
13    Nothing in this subsection shall preclude the 
14 Director from making any other adjustment 
15 otherwise allowed under Section 404 of this Act 
16 for any tax year beginning after the effective 
17 date of this amendment provided such adjustment is 
18 made pursuant to regulation adopted by the 
19 Department and such regulations provide methods 
20 and standards by which the Department will utilize 
21 its authority under Section 404 of this Act; 
22   (E-13) An amount equal to the amount of intangible 
23 expenses and costs otherwise allowed as a deduction in 
24 computing base income, and that were paid, accrued, or 
25 incurred, directly or indirectly, (i) for taxable 
26 years ending on or after December 31, 2004, to a 
 
 
10300HB4951sam002- 1191 -LRB103 38094 HLH 74177 a


1 foreign person who would be a member of the same 
2 unitary business group but for the fact that the 
3 foreign person's business activity outside the United 
4 States is 80% or more of that person's total business 
5 activity and (ii) for taxable years ending on or after 
6 December 31, 2008, to a person who would be a member of 
7 the same unitary business group but for the fact that 
8 the person is prohibited under Section 1501(a)(27) 
9 from being included in the unitary business group 
10 because he or she is ordinarily required to apportion 
11 business income under different subsections of Section 
12 304. The addition modification required by this 
13 subparagraph shall be reduced to the extent that 
14 dividends were included in base income of the unitary 
15 group for the same taxable year and received by the 
16 taxpayer or by a member of the taxpayer's unitary 
17 business group (including amounts included in gross 
18 income pursuant to Sections 951 through 964 of the 
19 Internal Revenue Code and amounts included in gross 
20 income under Section 78 of the Internal Revenue Code) 
21 with respect to the stock of the same person to whom 
22 the intangible expenses and costs were directly or 
23 indirectly paid, incurred, or accrued. The preceding 
24 sentence shall not apply to the extent that the same 
25 dividends caused a reduction to the addition 
26 modification required under Section 203(b)(2)(E-12) of 
 
 
10300HB4951sam002- 1192 -LRB103 38094 HLH 74177 a


1 this Act. As used in this subparagraph, the term 
2 "intangible expenses and costs" includes (1) expenses, 
3 losses, and costs for, or related to, the direct or 
4 indirect acquisition, use, maintenance or management, 
5 ownership, sale, exchange, or any other disposition of 
6 intangible property; (2) losses incurred, directly or 
7 indirectly, from factoring transactions or discounting 
8 transactions; (3) royalty, patent, technical, and 
9 copyright fees; (4) licensing fees; and (5) other 
10 similar expenses and costs. For purposes of this 
11 subparagraph, "intangible property" includes patents, 
12 patent applications, trade names, trademarks, service 
13 marks, copyrights, mask works, trade secrets, and 
14 similar types of intangible assets.
15   This paragraph shall not apply to the following:
16    (i) any item of intangible expenses or costs 
17 paid, accrued, or incurred, directly or 
18 indirectly, from a transaction with a person who 
19 is subject in a foreign country or state, other 
20 than a state which requires mandatory unitary 
21 reporting, to a tax on or measured by net income 
22 with respect to such item; or
23    (ii) any item of intangible expense or cost 
24 paid, accrued, or incurred, directly or 
25 indirectly, if the taxpayer can establish, based 
26 on a preponderance of the evidence, both of the 
 
 
10300HB4951sam002- 1193 -LRB103 38094 HLH 74177 a


1 following:
2     (a) the person during the same taxable 
3 year paid, accrued, or incurred, the 
4 intangible expense or cost to a person that is 
5 not a related member, and
6     (b) the transaction giving rise to the 
7 intangible expense or cost between the 
8 taxpayer and the person did not have as a 
9 principal purpose the avoidance of Illinois 
10 income tax, and is paid pursuant to a contract 
11 or agreement that reflects arm's-length terms; 
12 or
13    (iii) any item of intangible expense or cost 
14 paid, accrued, or incurred, directly or 
15 indirectly, from a transaction with a person if 
16 the taxpayer establishes by clear and convincing 
17 evidence, that the adjustments are unreasonable; 
18 or if the taxpayer and the Director agree in 
19 writing to the application or use of an 
20 alternative method of apportionment under Section 
21 304(f); 
22    Nothing in this subsection shall preclude the 
23 Director from making any other adjustment 
24 otherwise allowed under Section 404 of this Act 
25 for any tax year beginning after the effective 
26 date of this amendment provided such adjustment is 
 
 
10300HB4951sam002- 1194 -LRB103 38094 HLH 74177 a


1 made pursuant to regulation adopted by the 
2 Department and such regulations provide methods 
3 and standards by which the Department will utilize 
4 its authority under Section 404 of this Act; 
5   (E-14) For taxable years ending on or after 
6 December 31, 2008, an amount equal to the amount of 
7 insurance premium expenses and costs otherwise allowed 
8 as a deduction in computing base income, and that were 
9 paid, accrued, or incurred, directly or indirectly, to 
10 a person who would be a member of the same unitary 
11 business group but for the fact that the person is 
12 prohibited under Section 1501(a)(27) from being 
13 included in the unitary business group because he or 
14 she is ordinarily required to apportion business 
15 income under different subsections of Section 304. The 
16 addition modification required by this subparagraph 
17 shall be reduced to the extent that dividends were 
18 included in base income of the unitary group for the 
19 same taxable year and received by the taxpayer or by a 
20 member of the taxpayer's unitary business group 
21 (including amounts included in gross income under 
22 Sections 951 through 964 of the Internal Revenue Code 
23 and amounts included in gross income under Section 78 
24 of the Internal Revenue Code) with respect to the 
25 stock of the same person to whom the premiums and costs 
26 were directly or indirectly paid, incurred, or 
 
 
10300HB4951sam002- 1195 -LRB103 38094 HLH 74177 a


1 accrued. The preceding sentence does not apply to the 
2 extent that the same dividends caused a reduction to 
3 the addition modification required under Section 
4 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this 
5 Act; 
6   (E-15) For taxable years beginning after December 
7 31, 2008, any deduction for dividends paid by a 
8 captive real estate investment trust that is allowed 
9 to a real estate investment trust under Section 
10 857(b)(2)(B) of the Internal Revenue Code for 
11 dividends paid;
12   (E-16) An amount equal to the credit allowable to 
13 the taxpayer under Section 218(a) of this Act, 
14 determined without regard to Section 218(c) of this 
15 Act;
16   (E-17) For taxable years ending on or after 
17 December 31, 2017, an amount equal to the deduction 
18 allowed under Section 199 of the Internal Revenue Code 
19 for the taxable year; 
20   (E-18) for taxable years beginning after December 
21 31, 2018, an amount equal to the deduction allowed 
22 under Section 250(a)(1)(A) of the Internal Revenue 
23 Code for the taxable year; 
24   (E-19) for taxable years ending on or after June 
25 30, 2021, an amount equal to the deduction allowed 
26 under Section 250(a)(1)(B)(i) of the Internal Revenue 
 
 
10300HB4951sam002- 1196 -LRB103 38094 HLH 74177 a


1 Code for the taxable year; 
2   (E-20) for taxable years ending on or after June 
3 30, 2021, an amount equal to the deduction allowed 
4 under Sections 243(e) and 245A(a) of the Internal 
5 Revenue Code for the taxable year; . 
6   (E-21) the amount that is claimed as a federal 
7 deduction when computing the taxpayer's federal 
8 taxable income for the taxable year and that is 
9 attributable to an endowment gift for which the 
10 taxpayer receives a credit under the Illinois Gives 
11 Tax Credit Act; 
12 and by deducting from the total so obtained the sum of the 
13 following amounts:
14   (F) An amount equal to the amount of any tax 
15 imposed by this Act which was refunded to the taxpayer 
16 and included in such total for the taxable year;
17   (G) An amount equal to any amount included in such 
18 total under Section 78 of the Internal Revenue Code;
19   (H) In the case of a regulated investment company, 
20 an amount equal to the amount of exempt interest 
21 dividends as defined in subsection (b)(5) of Section 
22 852 of the Internal Revenue Code, paid to shareholders 
23 for the taxable year;
24   (I) With the exception of any amounts subtracted 
25 under subparagraph (J), an amount equal to the sum of 
26 all amounts disallowed as deductions by (i) Sections 
 
 
10300HB4951sam002- 1197 -LRB103 38094 HLH 74177 a


1 171(a)(2) and 265(a)(2) and amounts disallowed as 
2 interest expense by Section 291(a)(3) of the Internal 
3 Revenue Code, and all amounts of expenses allocable to 
4 interest and disallowed as deductions by Section 
5 265(a)(1) of the Internal Revenue Code; and (ii) for 
6 taxable years ending on or after August 13, 1999, 
7 Sections 171(a)(2), 265, 280C, 291(a)(3), and 
8 832(b)(5)(B)(i) of the Internal Revenue Code, plus, 
9 for tax years ending on or after December 31, 2011, 
10 amounts disallowed as deductions by Section 45G(e)(3) 
11 of the Internal Revenue Code and, for taxable years 
12 ending on or after December 31, 2008, any amount 
13 included in gross income under Section 87 of the 
14 Internal Revenue Code and the policyholders' share of 
15 tax-exempt interest of a life insurance company under 
16 Section 807(a)(2)(B) of the Internal Revenue Code (in 
17 the case of a life insurance company with gross income 
18 from a decrease in reserves for the tax year) or 
19 Section 807(b)(1)(B) of the Internal Revenue Code (in 
20 the case of a life insurance company allowed a 
21 deduction for an increase in reserves for the tax 
22 year); the provisions of this subparagraph are exempt 
23 from the provisions of Section 250;
24   (J) An amount equal to all amounts included in 
25 such total which are exempt from taxation by this 
26 State either by reason of its statutes or Constitution 
 
 
10300HB4951sam002- 1198 -LRB103 38094 HLH 74177 a


1 or by reason of the Constitution, treaties or statutes 
2 of the United States; provided that, in the case of any 
3 statute of this State that exempts income derived from 
4 bonds or other obligations from the tax imposed under 
5 this Act, the amount exempted shall be the interest 
6 net of bond premium amortization;
7   (K) An amount equal to those dividends included in 
8 such total which were paid by a corporation which 
9 conducts business operations in a River Edge 
10 Redevelopment Zone or zones created under the River 
11 Edge Redevelopment Zone Act and conducts substantially 
12 all of its operations in a River Edge Redevelopment 
13 Zone or zones. This subparagraph (K) is exempt from 
14 the provisions of Section 250;
15   (L) An amount equal to those dividends included in 
16 such total that were paid by a corporation that 
17 conducts business operations in a federally designated 
18 Foreign Trade Zone or Sub-Zone and that is designated 
19 a High Impact Business located in Illinois; provided 
20 that dividends eligible for the deduction provided in 
21 subparagraph (K) of paragraph 2 of this subsection 
22 shall not be eligible for the deduction provided under 
23 this subparagraph (L);
24   (M) For any taxpayer that is a financial 
25 organization within the meaning of Section 304(c) of 
26 this Act, an amount included in such total as interest 
 
 
10300HB4951sam002- 1199 -LRB103 38094 HLH 74177 a


1 income from a loan or loans made by such taxpayer to a 
2 borrower, to the extent that such a loan is secured by 
3 property which is eligible for the River Edge 
4 Redevelopment Zone Investment Credit. To determine the 
5 portion of a loan or loans that is secured by property 
6 eligible for a Section 201(f) investment credit to the 
7 borrower, the entire principal amount of the loan or 
8 loans between the taxpayer and the borrower should be 
9 divided into the basis of the Section 201(f) 
10 investment credit property which secures the loan or 
11 loans, using for this purpose the original basis of 
12 such property on the date that it was placed in service 
13 in the River Edge Redevelopment Zone. The subtraction 
14 modification available to the taxpayer in any year 
15 under this subsection shall be that portion of the 
16 total interest paid by the borrower with respect to 
17 such loan attributable to the eligible property as 
18 calculated under the previous sentence. This 
19 subparagraph (M) is exempt from the provisions of 
20 Section 250;
21   (M-1) For any taxpayer that is a financial 
22 organization within the meaning of Section 304(c) of 
23 this Act, an amount included in such total as interest 
24 income from a loan or loans made by such taxpayer to a 
25 borrower, to the extent that such a loan is secured by 
26 property which is eligible for the High Impact 
 
 
10300HB4951sam002- 1200 -LRB103 38094 HLH 74177 a


1 Business Investment Credit. To determine the portion 
2 of a loan or loans that is secured by property eligible 
3 for a Section 201(h) investment credit to the 
4 borrower, the entire principal amount of the loan or 
5 loans between the taxpayer and the borrower should be 
6 divided into the basis of the Section 201(h) 
7 investment credit property which secures the loan or 
8 loans, using for this purpose the original basis of 
9 such property on the date that it was placed in service 
10 in a federally designated Foreign Trade Zone or 
11 Sub-Zone located in Illinois. No taxpayer that is 
12 eligible for the deduction provided in subparagraph 
13 (M) of paragraph (2) of this subsection shall be 
14 eligible for the deduction provided under this 
15 subparagraph (M-1). The subtraction modification 
16 available to taxpayers in any year under this 
17 subsection shall be that portion of the total interest 
18 paid by the borrower with respect to such loan 
19 attributable to the eligible property as calculated 
20 under the previous sentence;
21   (N) Two times any contribution made during the 
22 taxable year to a designated zone organization to the 
23 extent that the contribution (i) qualifies as a 
24 charitable contribution under subsection (c) of 
25 Section 170 of the Internal Revenue Code and (ii) 
26 must, by its terms, be used for a project approved by 
 
 
10300HB4951sam002- 1201 -LRB103 38094 HLH 74177 a


1 the Department of Commerce and Economic Opportunity 
2 under Section 11 of the Illinois Enterprise Zone Act 
3 or under Section 10-10 of the River Edge Redevelopment 
4 Zone Act. This subparagraph (N) is exempt from the 
5 provisions of Section 250;
6   (O) An amount equal to: (i) 85% for taxable years 
7 ending on or before December 31, 1992, or, a 
8 percentage equal to the percentage allowable under 
9 Section 243(a)(1) of the Internal Revenue Code of 1986 
10 for taxable years ending after December 31, 1992, of 
11 the amount by which dividends included in taxable 
12 income and received from a corporation that is not 
13 created or organized under the laws of the United 
14 States or any state or political subdivision thereof, 
15 including, for taxable years ending on or after 
16 December 31, 1988, dividends received or deemed 
17 received or paid or deemed paid under Sections 951 
18 through 965 of the Internal Revenue Code, exceed the 
19 amount of the modification provided under subparagraph 
20 (G) of paragraph (2) of this subsection (b) which is 
21 related to such dividends, and including, for taxable 
22 years ending on or after December 31, 2008, dividends 
23 received from a captive real estate investment trust; 
24 plus (ii) 100% of the amount by which dividends, 
25 included in taxable income and received, including, 
26 for taxable years ending on or after December 31, 
 
 
10300HB4951sam002- 1202 -LRB103 38094 HLH 74177 a


1 1988, dividends received or deemed received or paid or 
2 deemed paid under Sections 951 through 964 of the 
3 Internal Revenue Code and including, for taxable years 
4 ending on or after December 31, 2008, dividends 
5 received from a captive real estate investment trust, 
6 from any such corporation specified in clause (i) that 
7 would but for the provisions of Section 1504(b)(3) of 
8 the Internal Revenue Code be treated as a member of the 
9 affiliated group which includes the dividend 
10 recipient, exceed the amount of the modification 
11 provided under subparagraph (G) of paragraph (2) of 
12 this subsection (b) which is related to such 
13 dividends. For taxable years ending on or after June 
14 30, 2021, (i) for purposes of this subparagraph, the 
15 term "dividend" does not include any amount treated as 
16 a dividend under Section 1248 of the Internal Revenue 
17 Code, and (ii) this subparagraph shall not apply to 
18 dividends for which a deduction is allowed under 
19 Section 245(a) of the Internal Revenue Code. This 
20 subparagraph (O) is exempt from the provisions of 
21 Section 250 of this Act;
22   (P) An amount equal to any contribution made to a 
23 job training project established pursuant to the Tax 
24 Increment Allocation Redevelopment Act;
25   (Q) An amount equal to the amount of the deduction 
26 used to compute the federal income tax credit for 
 
 
10300HB4951sam002- 1203 -LRB103 38094 HLH 74177 a


1 restoration of substantial amounts held under claim of 
2 right for the taxable year pursuant to Section 1341 of 
3 the Internal Revenue Code;
4   (R) On and after July 20, 1999, in the case of an 
5 attorney-in-fact with respect to whom an interinsurer 
6 or a reciprocal insurer has made the election under 
7 Section 835 of the Internal Revenue Code, 26 U.S.C. 
8 835, an amount equal to the excess, if any, of the 
9 amounts paid or incurred by that interinsurer or 
10 reciprocal insurer in the taxable year to the 
11 attorney-in-fact over the deduction allowed to that 
12 interinsurer or reciprocal insurer with respect to the 
13 attorney-in-fact under Section 835(b) of the Internal 
14 Revenue Code for the taxable year; the provisions of 
15 this subparagraph are exempt from the provisions of 
16 Section 250;
17   (S) For taxable years ending on or after December 
18 31, 1997, in the case of a Subchapter S corporation, an 
19 amount equal to all amounts of income allocable to a 
20 shareholder subject to the Personal Property Tax 
21 Replacement Income Tax imposed by subsections (c) and 
22 (d) of Section 201 of this Act, including amounts 
23 allocable to organizations exempt from federal income 
24 tax by reason of Section 501(a) of the Internal 
25 Revenue Code. This subparagraph (S) is exempt from the 
26 provisions of Section 250;
 
 
10300HB4951sam002- 1204 -LRB103 38094 HLH 74177 a


1   (T) For taxable years 2001 and thereafter, for the 
2 taxable year in which the bonus depreciation deduction 
3 is taken on the taxpayer's federal income tax return 
4 under subsection (k) of Section 168 of the Internal 
5 Revenue Code and for each applicable taxable year 
6 thereafter, an amount equal to "x", where:
7    (1) "y" equals the amount of the depreciation 
8 deduction taken for the taxable year on the 
9 taxpayer's federal income tax return on property 
10 for which the bonus depreciation deduction was 
11 taken in any year under subsection (k) of Section 
12 168 of the Internal Revenue Code, but not 
13 including the bonus depreciation deduction;
14    (2) for taxable years ending on or before 
15 December 31, 2005, "x" equals "y" multiplied by 30 
16 and then divided by 70 (or "y" multiplied by 
17 0.429); and
18    (3) for taxable years ending after December 
19 31, 2005:
20     (i) for property on which a bonus 
21 depreciation deduction of 30% of the adjusted 
22 basis was taken, "x" equals "y" multiplied by 
23 30 and then divided by 70 (or "y" multiplied 
24 by 0.429);
25     (ii) for property on which a bonus 
26 depreciation deduction of 50% of the adjusted 
 
 
10300HB4951sam002- 1205 -LRB103 38094 HLH 74177 a


1 basis was taken, "x" equals "y" multiplied by 
2 1.0;
3     (iii) for property on which a bonus 
4 depreciation deduction of 100% of the adjusted 
5 basis was taken in a taxable year ending on or 
6 after December 31, 2021, "x" equals the 
7 depreciation deduction that would be allowed 
8 on that property if the taxpayer had made the 
9 election under Section 168(k)(7) of the 
10 Internal Revenue Code to not claim bonus 
11 depreciation on that property; and
12     (iv) for property on which a bonus 
13 depreciation deduction of a percentage other 
14 than 30%, 50% or 100% of the adjusted basis 
15 was taken in a taxable year ending on or after 
16 December 31, 2021, "x" equals "y" multiplied 
17 by 100 times the percentage bonus depreciation 
18 on the property (that is, 100(bonus%)) and 
19 then divided by 100 times 1 minus the 
20 percentage bonus depreciation on the property 
21 (that is, 100(1-bonus%)). 
22   The aggregate amount deducted under this 
23 subparagraph in all taxable years for any one piece of 
24 property may not exceed the amount of the bonus 
25 depreciation deduction taken on that property on the 
26 taxpayer's federal income tax return under subsection 
 
 
10300HB4951sam002- 1206 -LRB103 38094 HLH 74177 a


1 (k) of Section 168 of the Internal Revenue Code. This 
2 subparagraph (T) is exempt from the provisions of 
3 Section 250;
4   (U) If the taxpayer sells, transfers, abandons, or 
5 otherwise disposes of property for which the taxpayer 
6 was required in any taxable year to make an addition 
7 modification under subparagraph (E-10), then an amount 
8 equal to that addition modification.
9   If the taxpayer continues to own property through 
10 the last day of the last tax year for which a 
11 subtraction is allowed with respect to that property 
12 under subparagraph (T) and for which the taxpayer was 
13 required in any taxable year to make an addition 
14 modification under subparagraph (E-10), then an amount 
15 equal to that addition modification. 
16   The taxpayer is allowed to take the deduction 
17 under this subparagraph only once with respect to any 
18 one piece of property.
19   This subparagraph (U) is exempt from the 
20 provisions of Section 250;
21   (V) The amount of: (i) any interest income (net of 
22 the deductions allocable thereto) taken into account 
23 for the taxable year with respect to a transaction 
24 with a taxpayer that is required to make an addition 
25 modification with respect to such transaction under 
26 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
 
 
10300HB4951sam002- 1207 -LRB103 38094 HLH 74177 a


1 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
2 the amount of such addition modification, (ii) any 
3 income from intangible property (net of the deductions 
4 allocable thereto) taken into account for the taxable 
5 year with respect to a transaction with a taxpayer 
6 that is required to make an addition modification with 
7 respect to such transaction under Section 
8 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
9 203(d)(2)(D-8), but not to exceed the amount of such 
10 addition modification, and (iii) any insurance premium 
11 income (net of deductions allocable thereto) taken 
12 into account for the taxable year with respect to a 
13 transaction with a taxpayer that is required to make 
14 an addition modification with respect to such 
15 transaction under Section 203(a)(2)(D-19), Section 
16 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section 
17 203(d)(2)(D-9), but not to exceed the amount of that 
18 addition modification. This subparagraph (V) is exempt 
19 from the provisions of Section 250; 
20   (W) An amount equal to the interest income taken 
21 into account for the taxable year (net of the 
22 deductions allocable thereto) with respect to 
23 transactions with (i) a foreign person who would be a 
24 member of the taxpayer's unitary business group but 
25 for the fact that the foreign person's business 
26 activity outside the United States is 80% or more of 
 
 
10300HB4951sam002- 1208 -LRB103 38094 HLH 74177 a


1 that person's total business activity and (ii) for 
2 taxable years ending on or after December 31, 2008, to 
3 a person who would be a member of the same unitary 
4 business group but for the fact that the person is 
5 prohibited under Section 1501(a)(27) from being 
6 included in the unitary business group because he or 
7 she is ordinarily required to apportion business 
8 income under different subsections of Section 304, but 
9 not to exceed the addition modification required to be 
10 made for the same taxable year under Section 
11 203(b)(2)(E-12) for interest paid, accrued, or 
12 incurred, directly or indirectly, to the same person. 
13 This subparagraph (W) is exempt from the provisions of 
14 Section 250; 
15   (X) An amount equal to the income from intangible 
16 property taken into account for the taxable year (net 
17 of the deductions allocable thereto) with respect to 
18 transactions with (i) a foreign person who would be a 
19 member of the taxpayer's unitary business group but 
20 for the fact that the foreign person's business 
21 activity outside the United States is 80% or more of 
22 that person's total business activity and (ii) for 
23 taxable years ending on or after December 31, 2008, to 
24 a person who would be a member of the same unitary 
25 business group but for the fact that the person is 
26 prohibited under Section 1501(a)(27) from being 
 
 
10300HB4951sam002- 1209 -LRB103 38094 HLH 74177 a


1 included in the unitary business group because he or 
2 she is ordinarily required to apportion business 
3 income under different subsections of Section 304, but 
4 not to exceed the addition modification required to be 
5 made for the same taxable year under Section 
6 203(b)(2)(E-13) for intangible expenses and costs 
7 paid, accrued, or incurred, directly or indirectly, to 
8 the same foreign person. This subparagraph (X) is 
9 exempt from the provisions of Section 250; 
10   (Y) For taxable years ending on or after December 
11 31, 2011, in the case of a taxpayer who was required to 
12 add back any insurance premiums under Section 
13 203(b)(2)(E-14), such taxpayer may elect to subtract 
14 that part of a reimbursement received from the 
15 insurance company equal to the amount of the expense 
16 or loss (including expenses incurred by the insurance 
17 company) that would have been taken into account as a 
18 deduction for federal income tax purposes if the 
19 expense or loss had been uninsured. If a taxpayer 
20 makes the election provided for by this subparagraph 
21 (Y), the insurer to which the premiums were paid must 
22 add back to income the amount subtracted by the 
23 taxpayer pursuant to this subparagraph (Y). This 
24 subparagraph (Y) is exempt from the provisions of 
25 Section 250; 
26   (Z) The difference between the nondeductible 
 
 
10300HB4951sam002- 1210 -LRB103 38094 HLH 74177 a


1 controlled foreign corporation dividends under Section 
2 965(e)(3) of the Internal Revenue Code over the 
3 taxable income of the taxpayer, computed without 
4 regard to Section 965(e)(2)(A) of the Internal Revenue 
5 Code, and without regard to any net operating loss 
6 deduction. This subparagraph (Z) is exempt from the 
7 provisions of Section 250; and 
8   (AA) For taxable years beginning on or after 
9 January 1, 2023, for any cannabis establishment 
10 operating in this State and licensed under the 
11 Cannabis Regulation and Tax Act or any cannabis 
12 cultivation center or medical cannabis dispensing 
13 organization operating in this State and licensed 
14 under the Compassionate Use of Medical Cannabis 
15 Program Act, an amount equal to the deductions that 
16 were disallowed under Section 280E of the Internal 
17 Revenue Code for the taxable year and that would not be 
18 added back under this subsection. The provisions of 
19 this subparagraph (AA) are exempt from the provisions 
20 of Section 250. 
21  (3) Special rule. For purposes of paragraph (2)(A), 
22 "gross income" in the case of a life insurance company, 
23 for tax years ending on and after December 31, 1994, and 
24 prior to December 31, 2011, shall mean the gross 
25 investment income for the taxable year and, for tax years 
26 ending on or after December 31, 2011, shall mean all 
 
 
10300HB4951sam002- 1211 -LRB103 38094 HLH 74177 a


1 amounts included in life insurance gross income under 
2 Section 803(a)(3) of the Internal Revenue Code.

3 (c) Trusts and estates.
4  (1) In general. In the case of a trust or estate, base 
5 income means an amount equal to the taxpayer's taxable 
6 income for the taxable year as modified by paragraph (2).
7  (2) Modifications. Subject to the provisions of 
8 paragraph (3), the taxable income referred to in paragraph 
9 (1) shall be modified by adding thereto the sum of the 
10 following amounts:
11   (A) An amount equal to all amounts paid or accrued 
12 to the taxpayer as interest or dividends during the 
13 taxable year to the extent excluded from gross income 
14 in the computation of taxable income;
15   (B) In the case of (i) an estate, $600; (ii) a 
16 trust which, under its governing instrument, is 
17 required to distribute all of its income currently, 
18 $300; and (iii) any other trust, $100, but in each such 
19 case, only to the extent such amount was deducted in 
20 the computation of taxable income;
21   (C) An amount equal to the amount of tax imposed by 
22 this Act to the extent deducted from gross income in 
23 the computation of taxable income for the taxable 
24 year;
25   (D) The amount of any net operating loss deduction 
 
 
10300HB4951sam002- 1212 -LRB103 38094 HLH 74177 a


1 taken in arriving at taxable income, other than a net 
2 operating loss carried forward from a taxable year 
3 ending prior to December 31, 1986;
4   (E) For taxable years in which a net operating 
5 loss carryback or carryforward from a taxable year 
6 ending prior to December 31, 1986 is an element of 
7 taxable income under paragraph (1) of subsection (e) 
8 or subparagraph (E) of paragraph (2) of subsection 
9 (e), the amount by which addition modifications other 
10 than those provided by this subparagraph (E) exceeded 
11 subtraction modifications in such taxable year, with 
12 the following limitations applied in the order that 
13 they are listed:
14    (i) the addition modification relating to the 
15 net operating loss carried back or forward to the 
16 taxable year from any taxable year ending prior to 
17 December 31, 1986 shall be reduced by the amount 
18 of addition modification under this subparagraph 
19 (E) which related to that net operating loss and 
20 which was taken into account in calculating the 
21 base income of an earlier taxable year, and
22    (ii) the addition modification relating to the 
23 net operating loss carried back or forward to the 
24 taxable year from any taxable year ending prior to 
25 December 31, 1986 shall not exceed the amount of 
26 such carryback or carryforward;
 
 
10300HB4951sam002- 1213 -LRB103 38094 HLH 74177 a


1   For taxable years in which there is a net 
2 operating loss carryback or carryforward from more 
3 than one other taxable year ending prior to December 
4 31, 1986, the addition modification provided in this 
5 subparagraph (E) shall be the sum of the amounts 
6 computed independently under the preceding provisions 
7 of this subparagraph (E) for each such taxable year;
8   (F) For taxable years ending on or after January 
9 1, 1989, an amount equal to the tax deducted pursuant 
10 to Section 164 of the Internal Revenue Code if the 
11 trust or estate is claiming the same tax for purposes 
12 of the Illinois foreign tax credit under Section 601 
13 of this Act;
14   (G) An amount equal to the amount of the capital 
15 gain deduction allowable under the Internal Revenue 
16 Code, to the extent deducted from gross income in the 
17 computation of taxable income;
18   (G-5) For taxable years ending after December 31, 
19 1997, an amount equal to any eligible remediation 
20 costs that the trust or estate deducted in computing 
21 adjusted gross income and for which the trust or 
22 estate claims a credit under subsection (l) of Section 
23 201;
24   (G-10) For taxable years 2001 and thereafter, an 
25 amount equal to the bonus depreciation deduction taken 
26 on the taxpayer's federal income tax return for the 
 
 
10300HB4951sam002- 1214 -LRB103 38094 HLH 74177 a


1 taxable year under subsection (k) of Section 168 of 
2 the Internal Revenue Code; and
3   (G-11) If the taxpayer sells, transfers, abandons, 
4 or otherwise disposes of property for which the 
5 taxpayer was required in any taxable year to make an 
6 addition modification under subparagraph (G-10), then 
7 an amount equal to the aggregate amount of the 
8 deductions taken in all taxable years under 
9 subparagraph (R) with respect to that property.
10   If the taxpayer continues to own property through 
11 the last day of the last tax year for which a 
12 subtraction is allowed with respect to that property 
13 under subparagraph (R) and for which the taxpayer was 
14 allowed in any taxable year to make a subtraction 
15 modification under subparagraph (R), then an amount 
16 equal to that subtraction modification. 
17   The taxpayer is required to make the addition 
18 modification under this subparagraph only once with 
19 respect to any one piece of property;
20   (G-12) An amount equal to the amount otherwise 
21 allowed as a deduction in computing base income for 
22 interest paid, accrued, or incurred, directly or 
23 indirectly, (i) for taxable years ending on or after 
24 December 31, 2004, to a foreign person who would be a 
25 member of the same unitary business group but for the 
26 fact that the foreign person's business activity 
 
 
10300HB4951sam002- 1215 -LRB103 38094 HLH 74177 a


1 outside the United States is 80% or more of the foreign 
2 person's total business activity and (ii) for taxable 
3 years ending on or after December 31, 2008, to a person 
4 who would be a member of the same unitary business 
5 group but for the fact that the person is prohibited 
6 under Section 1501(a)(27) from being included in the 
7 unitary business group because he or she is ordinarily 
8 required to apportion business income under different 
9 subsections of Section 304. The addition modification 
10 required by this subparagraph shall be reduced to the 
11 extent that dividends were included in base income of 
12 the unitary group for the same taxable year and 
13 received by the taxpayer or by a member of the 
14 taxpayer's unitary business group (including amounts 
15 included in gross income pursuant to Sections 951 
16 through 964 of the Internal Revenue Code and amounts 
17 included in gross income under Section 78 of the 
18 Internal Revenue Code) with respect to the stock of 
19 the same person to whom the interest was paid, 
20 accrued, or incurred. 
21   This paragraph shall not apply to the following: 
22    (i) an item of interest paid, accrued, or 
23 incurred, directly or indirectly, to a person who 
24 is subject in a foreign country or state, other 
25 than a state which requires mandatory unitary 
26 reporting, to a tax on or measured by net income 
 
 
10300HB4951sam002- 1216 -LRB103 38094 HLH 74177 a


1 with respect to such interest; or
2    (ii) an item of interest paid, accrued, or 
3 incurred, directly or indirectly, to a person if 
4 the taxpayer can establish, based on a 
5 preponderance of the evidence, both of the 
6 following:
7     (a) the person, during the same taxable 
8 year, paid, accrued, or incurred, the interest 
9 to a person that is not a related member, and
10     (b) the transaction giving rise to the 
11 interest expense between the taxpayer and the 
12 person did not have as a principal purpose the 
13 avoidance of Illinois income tax, and is paid 
14 pursuant to a contract or agreement that 
15 reflects an arm's-length interest rate and 
16 terms; or 
17    (iii) the taxpayer can establish, based on 
18 clear and convincing evidence, that the interest 
19 paid, accrued, or incurred relates to a contract 
20 or agreement entered into at arm's-length rates 
21 and terms and the principal purpose for the 
22 payment is not federal or Illinois tax avoidance; 
23 or 
24    (iv) an item of interest paid, accrued, or 
25 incurred, directly or indirectly, to a person if 
26 the taxpayer establishes by clear and convincing 
 
 
10300HB4951sam002- 1217 -LRB103 38094 HLH 74177 a


1 evidence that the adjustments are unreasonable; or 
2 if the taxpayer and the Director agree in writing 
3 to the application or use of an alternative method 
4 of apportionment under Section 304(f). 
5    Nothing in this subsection shall preclude the 
6 Director from making any other adjustment 
7 otherwise allowed under Section 404 of this Act 
8 for any tax year beginning after the effective 
9 date of this amendment provided such adjustment is 
10 made pursuant to regulation adopted by the 
11 Department and such regulations provide methods 
12 and standards by which the Department will utilize 
13 its authority under Section 404 of this Act; 
14   (G-13) An amount equal to the amount of intangible 
15 expenses and costs otherwise allowed as a deduction in 
16 computing base income, and that were paid, accrued, or 
17 incurred, directly or indirectly, (i) for taxable 
18 years ending on or after December 31, 2004, to a 
19 foreign person who would be a member of the same 
20 unitary business group but for the fact that the 
21 foreign person's business activity outside the United 
22 States is 80% or more of that person's total business 
23 activity and (ii) for taxable years ending on or after 
24 December 31, 2008, to a person who would be a member of 
25 the same unitary business group but for the fact that 
26 the person is prohibited under Section 1501(a)(27) 
 
 
10300HB4951sam002- 1218 -LRB103 38094 HLH 74177 a


1 from being included in the unitary business group 
2 because he or she is ordinarily required to apportion 
3 business income under different subsections of Section 
4 304. The addition modification required by this 
5 subparagraph shall be reduced to the extent that 
6 dividends were included in base income of the unitary 
7 group for the same taxable year and received by the 
8 taxpayer or by a member of the taxpayer's unitary 
9 business group (including amounts included in gross 
10 income pursuant to Sections 951 through 964 of the 
11 Internal Revenue Code and amounts included in gross 
12 income under Section 78 of the Internal Revenue Code) 
13 with respect to the stock of the same person to whom 
14 the intangible expenses and costs were directly or 
15 indirectly paid, incurred, or accrued. The preceding 
16 sentence shall not apply to the extent that the same 
17 dividends caused a reduction to the addition 
18 modification required under Section 203(c)(2)(G-12) of 
19 this Act. As used in this subparagraph, the term 
20 "intangible expenses and costs" includes: (1) 
21 expenses, losses, and costs for or related to the 
22 direct or indirect acquisition, use, maintenance or 
23 management, ownership, sale, exchange, or any other 
24 disposition of intangible property; (2) losses 
25 incurred, directly or indirectly, from factoring 
26 transactions or discounting transactions; (3) royalty, 
 
 
10300HB4951sam002- 1219 -LRB103 38094 HLH 74177 a


1 patent, technical, and copyright fees; (4) licensing 
2 fees; and (5) other similar expenses and costs. For 
3 purposes of this subparagraph, "intangible property" 
4 includes patents, patent applications, trade names, 
5 trademarks, service marks, copyrights, mask works, 
6 trade secrets, and similar types of intangible assets.
7   This paragraph shall not apply to the following:
8    (i) any item of intangible expenses or costs 
9 paid, accrued, or incurred, directly or 
10 indirectly, from a transaction with a person who 
11 is subject in a foreign country or state, other 
12 than a state which requires mandatory unitary 
13 reporting, to a tax on or measured by net income 
14 with respect to such item; or
15    (ii) any item of intangible expense or cost 
16 paid, accrued, or incurred, directly or 
17 indirectly, if the taxpayer can establish, based 
18 on a preponderance of the evidence, both of the 
19 following:
20     (a) the person during the same taxable 
21 year paid, accrued, or incurred, the 
22 intangible expense or cost to a person that is 
23 not a related member, and
24     (b) the transaction giving rise to the 
25 intangible expense or cost between the 
26 taxpayer and the person did not have as a 
 
 
10300HB4951sam002- 1220 -LRB103 38094 HLH 74177 a


1 principal purpose the avoidance of Illinois 
2 income tax, and is paid pursuant to a contract 
3 or agreement that reflects arm's-length terms; 
4 or
5    (iii) any item of intangible expense or cost 
6 paid, accrued, or incurred, directly or 
7 indirectly, from a transaction with a person if 
8 the taxpayer establishes by clear and convincing 
9 evidence, that the adjustments are unreasonable; 
10 or if the taxpayer and the Director agree in 
11 writing to the application or use of an 
12 alternative method of apportionment under Section 
13 304(f); 
14    Nothing in this subsection shall preclude the 
15 Director from making any other adjustment 
16 otherwise allowed under Section 404 of this Act 
17 for any tax year beginning after the effective 
18 date of this amendment provided such adjustment is 
19 made pursuant to regulation adopted by the 
20 Department and such regulations provide methods 
21 and standards by which the Department will utilize 
22 its authority under Section 404 of this Act; 
23   (G-14) For taxable years ending on or after 
24 December 31, 2008, an amount equal to the amount of 
25 insurance premium expenses and costs otherwise allowed 
26 as a deduction in computing base income, and that were 
 
 
10300HB4951sam002- 1221 -LRB103 38094 HLH 74177 a


1 paid, accrued, or incurred, directly or indirectly, to 
2 a person who would be a member of the same unitary 
3 business group but for the fact that the person is 
4 prohibited under Section 1501(a)(27) from being 
5 included in the unitary business group because he or 
6 she is ordinarily required to apportion business 
7 income under different subsections of Section 304. The 
8 addition modification required by this subparagraph 
9 shall be reduced to the extent that dividends were 
10 included in base income of the unitary group for the 
11 same taxable year and received by the taxpayer or by a 
12 member of the taxpayer's unitary business group 
13 (including amounts included in gross income under 
14 Sections 951 through 964 of the Internal Revenue Code 
15 and amounts included in gross income under Section 78 
16 of the Internal Revenue Code) with respect to the 
17 stock of the same person to whom the premiums and costs 
18 were directly or indirectly paid, incurred, or 
19 accrued. The preceding sentence does not apply to the 
20 extent that the same dividends caused a reduction to 
21 the addition modification required under Section 
22 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this 
23 Act;
24   (G-15) An amount equal to the credit allowable to 
25 the taxpayer under Section 218(a) of this Act, 
26 determined without regard to Section 218(c) of this 
 
 
10300HB4951sam002- 1222 -LRB103 38094 HLH 74177 a


1 Act;
2   (G-16) For taxable years ending on or after 
3 December 31, 2017, an amount equal to the deduction 
4 allowed under Section 199 of the Internal Revenue Code 
5 for the taxable year; 
6   (G-17) the amount that is claimed as a federal 
7 deduction when computing the taxpayer's federal 
8 taxable income for the taxable year and that is 
9 attributable to an endowment gift for which the 
10 taxpayer receives a credit under the Illinois Gives 
11 Tax Credit Act; 
12 and by deducting from the total so obtained the sum of the 
13 following amounts:
14   (H) An amount equal to all amounts included in 
15 such total pursuant to the provisions of Sections 
16 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 
17 of the Internal Revenue Code or included in such total 
18 as distributions under the provisions of any 
19 retirement or disability plan for employees of any 
20 governmental agency or unit, or retirement payments to 
21 retired partners, which payments are excluded in 
22 computing net earnings from self employment by Section 
23 1402 of the Internal Revenue Code and regulations 
24 adopted pursuant thereto;
25   (I) The valuation limitation amount;
26   (J) An amount equal to the amount of any tax 
 
 
10300HB4951sam002- 1223 -LRB103 38094 HLH 74177 a


1 imposed by this Act which was refunded to the taxpayer 
2 and included in such total for the taxable year;
3   (K) An amount equal to all amounts included in 
4 taxable income as modified by subparagraphs (A), (B), 
5 (C), (D), (E), (F) and (G) which are exempt from 
6 taxation by this State either by reason of its 
7 statutes or Constitution or by reason of the 
8 Constitution, treaties or statutes of the United 
9 States; provided that, in the case of any statute of 
10 this State that exempts income derived from bonds or 
11 other obligations from the tax imposed under this Act, 
12 the amount exempted shall be the interest net of bond 
13 premium amortization;
14   (L) With the exception of any amounts subtracted 
15 under subparagraph (K), an amount equal to the sum of 
16 all amounts disallowed as deductions by (i) Sections 
17 171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
18 and all amounts of expenses allocable to interest and 
19 disallowed as deductions by Section 265(a)(1) of the 
20 Internal Revenue Code; and (ii) for taxable years 
21 ending on or after August 13, 1999, Sections 
22 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
23 Internal Revenue Code, plus, (iii) for taxable years 
24 ending on or after December 31, 2011, Section 
25 45G(e)(3) of the Internal Revenue Code and, for 
26 taxable years ending on or after December 31, 2008, 
 
 
10300HB4951sam002- 1224 -LRB103 38094 HLH 74177 a


1 any amount included in gross income under Section 87 
2 of the Internal Revenue Code; the provisions of this 
3 subparagraph are exempt from the provisions of Section 
4 250;
5   (M) An amount equal to those dividends included in 
6 such total which were paid by a corporation which 
7 conducts business operations in a River Edge 
8 Redevelopment Zone or zones created under the River 
9 Edge Redevelopment Zone Act and conducts substantially 
10 all of its operations in a River Edge Redevelopment 
11 Zone or zones. This subparagraph (M) is exempt from 
12 the provisions of Section 250;
13   (N) An amount equal to any contribution made to a 
14 job training project established pursuant to the Tax 
15 Increment Allocation Redevelopment Act;
16   (O) An amount equal to those dividends included in 
17 such total that were paid by a corporation that 
18 conducts business operations in a federally designated 
19 Foreign Trade Zone or Sub-Zone and that is designated 
20 a High Impact Business located in Illinois; provided 
21 that dividends eligible for the deduction provided in 
22 subparagraph (M) of paragraph (2) of this subsection 
23 shall not be eligible for the deduction provided under 
24 this subparagraph (O);
25   (P) An amount equal to the amount of the deduction 
26 used to compute the federal income tax credit for 
 
 
10300HB4951sam002- 1225 -LRB103 38094 HLH 74177 a


1 restoration of substantial amounts held under claim of 
2 right for the taxable year pursuant to Section 1341 of 
3 the Internal Revenue Code;
4   (Q) For taxable year 1999 and thereafter, an 
5 amount equal to the amount of any (i) distributions, 
6 to the extent includible in gross income for federal 
7 income tax purposes, made to the taxpayer because of 
8 his or her status as a victim of persecution for racial 
9 or religious reasons by Nazi Germany or any other Axis 
10 regime or as an heir of the victim and (ii) items of 
11 income, to the extent includible in gross income for 
12 federal income tax purposes, attributable to, derived 
13 from or in any way related to assets stolen from, 
14 hidden from, or otherwise lost to a victim of 
15 persecution for racial or religious reasons by Nazi 
16 Germany or any other Axis regime immediately prior to, 
17 during, and immediately after World War II, including, 
18 but not limited to, interest on the proceeds 
19 receivable as insurance under policies issued to a 
20 victim of persecution for racial or religious reasons 
21 by Nazi Germany or any other Axis regime by European 
22 insurance companies immediately prior to and during 
23 World War II; provided, however, this subtraction from 
24 federal adjusted gross income does not apply to assets 
25 acquired with such assets or with the proceeds from 
26 the sale of such assets; provided, further, this 
 
 
10300HB4951sam002- 1226 -LRB103 38094 HLH 74177 a


1 paragraph shall only apply to a taxpayer who was the 
2 first recipient of such assets after their recovery 
3 and who is a victim of persecution for racial or 
4 religious reasons by Nazi Germany or any other Axis 
5 regime or as an heir of the victim. The amount of and 
6 the eligibility for any public assistance, benefit, or 
7 similar entitlement is not affected by the inclusion 
8 of items (i) and (ii) of this paragraph in gross income 
9 for federal income tax purposes. This paragraph is 
10 exempt from the provisions of Section 250;
11   (R) For taxable years 2001 and thereafter, for the 
12 taxable year in which the bonus depreciation deduction 
13 is taken on the taxpayer's federal income tax return 
14 under subsection (k) of Section 168 of the Internal 
15 Revenue Code and for each applicable taxable year 
16 thereafter, an amount equal to "x", where:
17    (1) "y" equals the amount of the depreciation 
18 deduction taken for the taxable year on the 
19 taxpayer's federal income tax return on property 
20 for which the bonus depreciation deduction was 
21 taken in any year under subsection (k) of Section 
22 168 of the Internal Revenue Code, but not 
23 including the bonus depreciation deduction;
24    (2) for taxable years ending on or before 
25 December 31, 2005, "x" equals "y" multiplied by 30 
26 and then divided by 70 (or "y" multiplied by 
 
 
10300HB4951sam002- 1227 -LRB103 38094 HLH 74177 a


1 0.429); and
2    (3) for taxable years ending after December 
3 31, 2005:
4     (i) for property on which a bonus 
5 depreciation deduction of 30% of the adjusted 
6 basis was taken, "x" equals "y" multiplied by 
7 30 and then divided by 70 (or "y" multiplied 
8 by 0.429);
9     (ii) for property on which a bonus 
10 depreciation deduction of 50% of the adjusted 
11 basis was taken, "x" equals "y" multiplied by 
12 1.0;
13     (iii) for property on which a bonus 
14 depreciation deduction of 100% of the adjusted 
15 basis was taken in a taxable year ending on or 
16 after December 31, 2021, "x" equals the 
17 depreciation deduction that would be allowed 
18 on that property if the taxpayer had made the 
19 election under Section 168(k)(7) of the 
20 Internal Revenue Code to not claim bonus 
21 depreciation on that property; and
22     (iv) for property on which a bonus 
23 depreciation deduction of a percentage other 
24 than 30%, 50% or 100% of the adjusted basis 
25 was taken in a taxable year ending on or after 
26 December 31, 2021, "x" equals "y" multiplied 
 
 
10300HB4951sam002- 1228 -LRB103 38094 HLH 74177 a


1 by 100 times the percentage bonus depreciation 
2 on the property (that is, 100(bonus%)) and 
3 then divided by 100 times 1 minus the 
4 percentage bonus depreciation on the property 
5 (that is, 100(1-bonus%)). 
6   The aggregate amount deducted under this 
7 subparagraph in all taxable years for any one piece of 
8 property may not exceed the amount of the bonus 
9 depreciation deduction taken on that property on the 
10 taxpayer's federal income tax return under subsection 
11 (k) of Section 168 of the Internal Revenue Code. This 
12 subparagraph (R) is exempt from the provisions of 
13 Section 250;
14   (S) If the taxpayer sells, transfers, abandons, or 
15 otherwise disposes of property for which the taxpayer 
16 was required in any taxable year to make an addition 
17 modification under subparagraph (G-10), then an amount 
18 equal to that addition modification.
19   If the taxpayer continues to own property through 
20 the last day of the last tax year for which a 
21 subtraction is allowed with respect to that property 
22 under subparagraph (R) and for which the taxpayer was 
23 required in any taxable year to make an addition 
24 modification under subparagraph (G-10), then an amount 
25 equal to that addition modification. 
26   The taxpayer is allowed to take the deduction 
 
 
10300HB4951sam002- 1229 -LRB103 38094 HLH 74177 a


1 under this subparagraph only once with respect to any 
2 one piece of property.
3   This subparagraph (S) is exempt from the 
4 provisions of Section 250;
5   (T) The amount of (i) any interest income (net of 
6 the deductions allocable thereto) taken into account 
7 for the taxable year with respect to a transaction 
8 with a taxpayer that is required to make an addition 
9 modification with respect to such transaction under 
10 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
11 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
12 the amount of such addition modification and (ii) any 
13 income from intangible property (net of the deductions 
14 allocable thereto) taken into account for the taxable 
15 year with respect to a transaction with a taxpayer 
16 that is required to make an addition modification with 
17 respect to such transaction under Section 
18 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
19 203(d)(2)(D-8), but not to exceed the amount of such 
20 addition modification. This subparagraph (T) is exempt 
21 from the provisions of Section 250; 
22   (U) An amount equal to the interest income taken 
23 into account for the taxable year (net of the 
24 deductions allocable thereto) with respect to 
25 transactions with (i) a foreign person who would be a 
26 member of the taxpayer's unitary business group but 
 
 
10300HB4951sam002- 1230 -LRB103 38094 HLH 74177 a


1 for the fact the foreign person's business activity 
2 outside the United States is 80% or more of that 
3 person's total business activity and (ii) for taxable 
4 years ending on or after December 31, 2008, to a person 
5 who would be a member of the same unitary business 
6 group but for the fact that the person is prohibited 
7 under Section 1501(a)(27) from being included in the 
8 unitary business group because he or she is ordinarily 
9 required to apportion business income under different 
10 subsections of Section 304, but not to exceed the 
11 addition modification required to be made for the same 
12 taxable year under Section 203(c)(2)(G-12) for 
13 interest paid, accrued, or incurred, directly or 
14 indirectly, to the same person. This subparagraph (U) 
15 is exempt from the provisions of Section 250; 
16   (V) An amount equal to the income from intangible 
17 property taken into account for the taxable year (net 
18 of the deductions allocable thereto) with respect to 
19 transactions with (i) a foreign person who would be a 
20 member of the taxpayer's unitary business group but 
21 for the fact that the foreign person's business 
22 activity outside the United States is 80% or more of 
23 that person's total business activity and (ii) for 
24 taxable years ending on or after December 31, 2008, to 
25 a person who would be a member of the same unitary 
26 business group but for the fact that the person is 
 
 
10300HB4951sam002- 1231 -LRB103 38094 HLH 74177 a


1 prohibited under Section 1501(a)(27) from being 
2 included in the unitary business group because he or 
3 she is ordinarily required to apportion business 
4 income under different subsections of Section 304, but 
5 not to exceed the addition modification required to be 
6 made for the same taxable year under Section 
7 203(c)(2)(G-13) for intangible expenses and costs 
8 paid, accrued, or incurred, directly or indirectly, to 
9 the same foreign person. This subparagraph (V) is 
10 exempt from the provisions of Section 250; 
11   (W) in the case of an estate, an amount equal to 
12 all amounts included in such total pursuant to the 
13 provisions of Section 111 of the Internal Revenue Code 
14 as a recovery of items previously deducted by the 
15 decedent from adjusted gross income in the computation 
16 of taxable income. This subparagraph (W) is exempt 
17 from Section 250; 
18   (X) an amount equal to the refund included in such 
19 total of any tax deducted for federal income tax 
20 purposes, to the extent that deduction was added back 
21 under subparagraph (F). This subparagraph (X) is 
22 exempt from the provisions of Section 250;
23   (Y) For taxable years ending on or after December 
24 31, 2011, in the case of a taxpayer who was required to 
25 add back any insurance premiums under Section 
26 203(c)(2)(G-14), such taxpayer may elect to subtract 
 
 
10300HB4951sam002- 1232 -LRB103 38094 HLH 74177 a


1 that part of a reimbursement received from the 
2 insurance company equal to the amount of the expense 
3 or loss (including expenses incurred by the insurance 
4 company) that would have been taken into account as a 
5 deduction for federal income tax purposes if the 
6 expense or loss had been uninsured. If a taxpayer 
7 makes the election provided for by this subparagraph 
8 (Y), the insurer to which the premiums were paid must 
9 add back to income the amount subtracted by the 
10 taxpayer pursuant to this subparagraph (Y). This 
11 subparagraph (Y) is exempt from the provisions of 
12 Section 250;
13   (Z) For taxable years beginning after December 31, 
14 2018 and before January 1, 2026, the amount of excess 
15 business loss of the taxpayer disallowed as a 
16 deduction by Section 461(l)(1)(B) of the Internal 
17 Revenue Code; and 
18   (AA) For taxable years beginning on or after 
19 January 1, 2023, for any cannabis establishment 
20 operating in this State and licensed under the 
21 Cannabis Regulation and Tax Act or any cannabis 
22 cultivation center or medical cannabis dispensing 
23 organization operating in this State and licensed 
24 under the Compassionate Use of Medical Cannabis 
25 Program Act, an amount equal to the deductions that 
26 were disallowed under Section 280E of the Internal 
 
 
10300HB4951sam002- 1233 -LRB103 38094 HLH 74177 a


1 Revenue Code for the taxable year and that would not be 
2 added back under this subsection. The provisions of 
3 this subparagraph (AA) are exempt from the provisions 
4 of Section 250. 
5  (3) Limitation. The amount of any modification 
6 otherwise required under this subsection shall, under 
7 regulations prescribed by the Department, be adjusted by 
8 any amounts included therein which were properly paid, 
9 credited, or required to be distributed, or permanently 
10 set aside for charitable purposes pursuant to Internal 
11 Revenue Code Section 642(c) during the taxable year.

12 (d) Partnerships.
13  (1) In general. In the case of a partnership, base 
14 income means an amount equal to the taxpayer's taxable 
15 income for the taxable year as modified by paragraph (2).
16  (2) Modifications. The taxable income referred to in 
17 paragraph (1) shall be modified by adding thereto the sum 
18 of the following amounts:
19   (A) An amount equal to all amounts paid or accrued 
20 to the taxpayer as interest or dividends during the 
21 taxable year to the extent excluded from gross income 
22 in the computation of taxable income;
23   (B) An amount equal to the amount of tax imposed by 
24 this Act to the extent deducted from gross income for 
25 the taxable year;
 
 
10300HB4951sam002- 1234 -LRB103 38094 HLH 74177 a


1   (C) The amount of deductions allowed to the 
2 partnership pursuant to Section 707 (c) of the 
3 Internal Revenue Code in calculating its taxable 
4 income;
5   (D) An amount equal to the amount of the capital 
6 gain deduction allowable under the Internal Revenue 
7 Code, to the extent deducted from gross income in the 
8 computation of taxable income;
9   (D-5) For taxable years 2001 and thereafter, an 
10 amount equal to the bonus depreciation deduction taken 
11 on the taxpayer's federal income tax return for the 
12 taxable year under subsection (k) of Section 168 of 
13 the Internal Revenue Code;
14   (D-6) If the taxpayer sells, transfers, abandons, 
15 or otherwise disposes of property for which the 
16 taxpayer was required in any taxable year to make an 
17 addition modification under subparagraph (D-5), then 
18 an amount equal to the aggregate amount of the 
19 deductions taken in all taxable years under 
20 subparagraph (O) with respect to that property.
21   If the taxpayer continues to own property through 
22 the last day of the last tax year for which a 
23 subtraction is allowed with respect to that property 
24 under subparagraph (O) and for which the taxpayer was 
25 allowed in any taxable year to make a subtraction 
26 modification under subparagraph (O), then an amount 
 
 
10300HB4951sam002- 1235 -LRB103 38094 HLH 74177 a


1 equal to that subtraction modification. 
2   The taxpayer is required to make the addition 
3 modification under this subparagraph only once with 
4 respect to any one piece of property;
5   (D-7) An amount equal to the amount otherwise 
6 allowed as a deduction in computing base income for 
7 interest paid, accrued, or incurred, directly or 
8 indirectly, (i) for taxable years ending on or after 
9 December 31, 2004, to a foreign person who would be a 
10 member of the same unitary business group but for the 
11 fact the foreign person's business activity outside 
12 the United States is 80% or more of the foreign 
13 person's total business activity and (ii) for taxable 
14 years ending on or after December 31, 2008, to a person 
15 who would be a member of the same unitary business 
16 group but for the fact that the person is prohibited 
17 under Section 1501(a)(27) from being included in the 
18 unitary business group because he or she is ordinarily 
19 required to apportion business income under different 
20 subsections of Section 304. The addition modification 
21 required by this subparagraph shall be reduced to the 
22 extent that dividends were included in base income of 
23 the unitary group for the same taxable year and 
24 received by the taxpayer or by a member of the 
25 taxpayer's unitary business group (including amounts 
26 included in gross income pursuant to Sections 951 
 
 
10300HB4951sam002- 1236 -LRB103 38094 HLH 74177 a


1 through 964 of the Internal Revenue Code and amounts 
2 included in gross income under Section 78 of the 
3 Internal Revenue Code) with respect to the stock of 
4 the same person to whom the interest was paid, 
5 accrued, or incurred. 
6   This paragraph shall not apply to the following: 
7    (i) an item of interest paid, accrued, or 
8 incurred, directly or indirectly, to a person who 
9 is subject in a foreign country or state, other 
10 than a state which requires mandatory unitary 
11 reporting, to a tax on or measured by net income 
12 with respect to such interest; or
13    (ii) an item of interest paid, accrued, or 
14 incurred, directly or indirectly, to a person if 
15 the taxpayer can establish, based on a 
16 preponderance of the evidence, both of the 
17 following:
18     (a) the person, during the same taxable 
19 year, paid, accrued, or incurred, the interest 
20 to a person that is not a related member, and
21     (b) the transaction giving rise to the 
22 interest expense between the taxpayer and the 
23 person did not have as a principal purpose the 
24 avoidance of Illinois income tax, and is paid 
25 pursuant to a contract or agreement that 
26 reflects an arm's-length interest rate and 
 
 
10300HB4951sam002- 1237 -LRB103 38094 HLH 74177 a


1 terms; or 
2    (iii) the taxpayer can establish, based on 
3 clear and convincing evidence, that the interest 
4 paid, accrued, or incurred relates to a contract 
5 or agreement entered into at arm's-length rates 
6 and terms and the principal purpose for the 
7 payment is not federal or Illinois tax avoidance; 
8 or 
9    (iv) an item of interest paid, accrued, or 
10 incurred, directly or indirectly, to a person if 
11 the taxpayer establishes by clear and convincing 
12 evidence that the adjustments are unreasonable; or 
13 if the taxpayer and the Director agree in writing 
14 to the application or use of an alternative method 
15 of apportionment under Section 304(f). 
16    Nothing in this subsection shall preclude the 
17 Director from making any other adjustment 
18 otherwise allowed under Section 404 of this Act 
19 for any tax year beginning after the effective 
20 date of this amendment provided such adjustment is 
21 made pursuant to regulation adopted by the 
22 Department and such regulations provide methods 
23 and standards by which the Department will utilize 
24 its authority under Section 404 of this Act; and 
25   (D-8) An amount equal to the amount of intangible 
26 expenses and costs otherwise allowed as a deduction in 
 
 
10300HB4951sam002- 1238 -LRB103 38094 HLH 74177 a


1 computing base income, and that were paid, accrued, or 
2 incurred, directly or indirectly, (i) for taxable 
3 years ending on or after December 31, 2004, to a 
4 foreign person who would be a member of the same 
5 unitary business group but for the fact that the 
6 foreign person's business activity outside the United 
7 States is 80% or more of that person's total business 
8 activity and (ii) for taxable years ending on or after 
9 December 31, 2008, to a person who would be a member of 
10 the same unitary business group but for the fact that 
11 the person is prohibited under Section 1501(a)(27) 
12 from being included in the unitary business group 
13 because he or she is ordinarily required to apportion 
14 business income under different subsections of Section 
15 304. The addition modification required by this 
16 subparagraph shall be reduced to the extent that 
17 dividends were included in base income of the unitary 
18 group for the same taxable year and received by the 
19 taxpayer or by a member of the taxpayer's unitary 
20 business group (including amounts included in gross 
21 income pursuant to Sections 951 through 964 of the 
22 Internal Revenue Code and amounts included in gross 
23 income under Section 78 of the Internal Revenue Code) 
24 with respect to the stock of the same person to whom 
25 the intangible expenses and costs were directly or 
26 indirectly paid, incurred or accrued. The preceding 
 
 
10300HB4951sam002- 1239 -LRB103 38094 HLH 74177 a


1 sentence shall not apply to the extent that the same 
2 dividends caused a reduction to the addition 
3 modification required under Section 203(d)(2)(D-7) of 
4 this Act. As used in this subparagraph, the term 
5 "intangible expenses and costs" includes (1) expenses, 
6 losses, and costs for, or related to, the direct or 
7 indirect acquisition, use, maintenance or management, 
8 ownership, sale, exchange, or any other disposition of 
9 intangible property; (2) losses incurred, directly or 
10 indirectly, from factoring transactions or discounting 
11 transactions; (3) royalty, patent, technical, and 
12 copyright fees; (4) licensing fees; and (5) other 
13 similar expenses and costs. For purposes of this 
14 subparagraph, "intangible property" includes patents, 
15 patent applications, trade names, trademarks, service 
16 marks, copyrights, mask works, trade secrets, and 
17 similar types of intangible assets;
18   This paragraph shall not apply to the following:
19    (i) any item of intangible expenses or costs 
20 paid, accrued, or incurred, directly or 
21 indirectly, from a transaction with a person who 
22 is subject in a foreign country or state, other 
23 than a state which requires mandatory unitary 
24 reporting, to a tax on or measured by net income 
25 with respect to such item; or
26    (ii) any item of intangible expense or cost 
 
 
10300HB4951sam002- 1240 -LRB103 38094 HLH 74177 a


1 paid, accrued, or incurred, directly or 
2 indirectly, if the taxpayer can establish, based 
3 on a preponderance of the evidence, both of the 
4 following:
5     (a) the person during the same taxable 
6 year paid, accrued, or incurred, the 
7 intangible expense or cost to a person that is 
8 not a related member, and
9     (b) the transaction giving rise to the 
10 intangible expense or cost between the 
11 taxpayer and the person did not have as a 
12 principal purpose the avoidance of Illinois 
13 income tax, and is paid pursuant to a contract 
14 or agreement that reflects arm's-length terms; 
15 or
16    (iii) any item of intangible expense or cost 
17 paid, accrued, or incurred, directly or 
18 indirectly, from a transaction with a person if 
19 the taxpayer establishes by clear and convincing 
20 evidence, that the adjustments are unreasonable; 
21 or if the taxpayer and the Director agree in 
22 writing to the application or use of an 
23 alternative method of apportionment under Section 
24 304(f); 
25    Nothing in this subsection shall preclude the 
26 Director from making any other adjustment 
 
 
10300HB4951sam002- 1241 -LRB103 38094 HLH 74177 a


1 otherwise allowed under Section 404 of this Act 
2 for any tax year beginning after the effective 
3 date of this amendment provided such adjustment is 
4 made pursuant to regulation adopted by the 
5 Department and such regulations provide methods 
6 and standards by which the Department will utilize 
7 its authority under Section 404 of this Act; 
8   (D-9) For taxable years ending on or after 
9 December 31, 2008, an amount equal to the amount of 
10 insurance premium expenses and costs otherwise allowed 
11 as a deduction in computing base income, and that were 
12 paid, accrued, or incurred, directly or indirectly, to 
13 a person who would be a member of the same unitary 
14 business group but for the fact that the person is 
15 prohibited under Section 1501(a)(27) from being 
16 included in the unitary business group because he or 
17 she is ordinarily required to apportion business 
18 income under different subsections of Section 304. The 
19 addition modification required by this subparagraph 
20 shall be reduced to the extent that dividends were 
21 included in base income of the unitary group for the 
22 same taxable year and received by the taxpayer or by a 
23 member of the taxpayer's unitary business group 
24 (including amounts included in gross income under 
25 Sections 951 through 964 of the Internal Revenue Code 
26 and amounts included in gross income under Section 78 
 
 
10300HB4951sam002- 1242 -LRB103 38094 HLH 74177 a


1 of the Internal Revenue Code) with respect to the 
2 stock of the same person to whom the premiums and costs 
3 were directly or indirectly paid, incurred, or 
4 accrued. The preceding sentence does not apply to the 
5 extent that the same dividends caused a reduction to 
6 the addition modification required under Section 
7 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
8   (D-10) An amount equal to the credit allowable to 
9 the taxpayer under Section 218(a) of this Act, 
10 determined without regard to Section 218(c) of this 
11 Act;
12   (D-11) For taxable years ending on or after 
13 December 31, 2017, an amount equal to the deduction 
14 allowed under Section 199 of the Internal Revenue Code 
15 for the taxable year; 
16   (D-12) the amount that is claimed as a federal 
17 deduction when computing the taxpayer's federal 
18 taxable income for the taxable year and that is 
19 attributable to an endowment gift for which the 
20 taxpayer receives a credit under the Illinois Gives 
21 Tax Credit Act; 
22 and by deducting from the total so obtained the following 
23 amounts:
24   (E) The valuation limitation amount;
25   (F) An amount equal to the amount of any tax 
26 imposed by this Act which was refunded to the taxpayer 
 
 
10300HB4951sam002- 1243 -LRB103 38094 HLH 74177 a


1 and included in such total for the taxable year;
2   (G) An amount equal to all amounts included in 
3 taxable income as modified by subparagraphs (A), (B), 
4 (C) and (D) which are exempt from taxation by this 
5 State either by reason of its statutes or Constitution 
6 or by reason of the Constitution, treaties or statutes 
7 of the United States; provided that, in the case of any 
8 statute of this State that exempts income derived from 
9 bonds or other obligations from the tax imposed under 
10 this Act, the amount exempted shall be the interest 
11 net of bond premium amortization;
12   (H) Any income of the partnership which 
13 constitutes personal service income as defined in 
14 Section 1348(b)(1) of the Internal Revenue Code (as in 
15 effect December 31, 1981) or a reasonable allowance 
16 for compensation paid or accrued for services rendered 
17 by partners to the partnership, whichever is greater; 
18 this subparagraph (H) is exempt from the provisions of 
19 Section 250;
20   (I) An amount equal to all amounts of income 
21 distributable to an entity subject to the Personal 
22 Property Tax Replacement Income Tax imposed by 
23 subsections (c) and (d) of Section 201 of this Act 
24 including amounts distributable to organizations 
25 exempt from federal income tax by reason of Section 
26 501(a) of the Internal Revenue Code; this subparagraph 
 
 
10300HB4951sam002- 1244 -LRB103 38094 HLH 74177 a


1 (I) is exempt from the provisions of Section 250;
2   (J) With the exception of any amounts subtracted 
3 under subparagraph (G), an amount equal to the sum of 
4 all amounts disallowed as deductions by (i) Sections 
5 171(a)(2) and 265(a)(2) of the Internal Revenue Code, 
6 and all amounts of expenses allocable to interest and 
7 disallowed as deductions by Section 265(a)(1) of the 
8 Internal Revenue Code; and (ii) for taxable years 
9 ending on or after August 13, 1999, Sections 
10 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the 
11 Internal Revenue Code, plus, (iii) for taxable years 
12 ending on or after December 31, 2011, Section 
13 45G(e)(3) of the Internal Revenue Code and, for 
14 taxable years ending on or after December 31, 2008, 
15 any amount included in gross income under Section 87 
16 of the Internal Revenue Code; the provisions of this 
17 subparagraph are exempt from the provisions of Section 
18 250;
19   (K) An amount equal to those dividends included in 
20 such total which were paid by a corporation which 
21 conducts business operations in a River Edge 
22 Redevelopment Zone or zones created under the River 
23 Edge Redevelopment Zone Act and conducts substantially 
24 all of its operations from a River Edge Redevelopment 
25 Zone or zones. This subparagraph (K) is exempt from 
26 the provisions of Section 250;
 
 
10300HB4951sam002- 1245 -LRB103 38094 HLH 74177 a


1   (L) An amount equal to any contribution made to a 
2 job training project established pursuant to the Real 
3 Property Tax Increment Allocation Redevelopment Act;
4   (M) An amount equal to those dividends included in 
5 such total that were paid by a corporation that 
6 conducts business operations in a federally designated 
7 Foreign Trade Zone or Sub-Zone and that is designated 
8 a High Impact Business located in Illinois; provided 
9 that dividends eligible for the deduction provided in 
10 subparagraph (K) of paragraph (2) of this subsection 
11 shall not be eligible for the deduction provided under 
12 this subparagraph (M);
13   (N) An amount equal to the amount of the deduction 
14 used to compute the federal income tax credit for 
15 restoration of substantial amounts held under claim of 
16 right for the taxable year pursuant to Section 1341 of 
17 the Internal Revenue Code;
18   (O) For taxable years 2001 and thereafter, for the 
19 taxable year in which the bonus depreciation deduction 
20 is taken on the taxpayer's federal income tax return 
21 under subsection (k) of Section 168 of the Internal 
22 Revenue Code and for each applicable taxable year 
23 thereafter, an amount equal to "x", where:
24    (1) "y" equals the amount of the depreciation 
25 deduction taken for the taxable year on the 
26 taxpayer's federal income tax return on property 
 
 
10300HB4951sam002- 1246 -LRB103 38094 HLH 74177 a


1 for which the bonus depreciation deduction was 
2 taken in any year under subsection (k) of Section 
3 168 of the Internal Revenue Code, but not 
4 including the bonus depreciation deduction;
5    (2) for taxable years ending on or before 
6 December 31, 2005, "x" equals "y" multiplied by 30 
7 and then divided by 70 (or "y" multiplied by 
8 0.429); and
9    (3) for taxable years ending after December 
10 31, 2005:
11     (i) for property on which a bonus 
12 depreciation deduction of 30% of the adjusted 
13 basis was taken, "x" equals "y" multiplied by 
14 30 and then divided by 70 (or "y" multiplied 
15 by 0.429);
16     (ii) for property on which a bonus 
17 depreciation deduction of 50% of the adjusted 
18 basis was taken, "x" equals "y" multiplied by 
19 1.0;
20     (iii) for property on which a bonus 
21 depreciation deduction of 100% of the adjusted 
22 basis was taken in a taxable year ending on or 
23 after December 31, 2021, "x" equals the 
24 depreciation deduction that would be allowed 
25 on that property if the taxpayer had made the 
26 election under Section 168(k)(7) of the 
 
 
10300HB4951sam002- 1247 -LRB103 38094 HLH 74177 a


1 Internal Revenue Code to not claim bonus 
2 depreciation on that property; and
3     (iv) for property on which a bonus 
4 depreciation deduction of a percentage other 
5 than 30%, 50% or 100% of the adjusted basis 
6 was taken in a taxable year ending on or after 
7 December 31, 2021, "x" equals "y" multiplied 
8 by 100 times the percentage bonus depreciation 
9 on the property (that is, 100(bonus%)) and 
10 then divided by 100 times 1 minus the 
11 percentage bonus depreciation on the property 
12 (that is, 100(1-bonus%)). 
13   The aggregate amount deducted under this 
14 subparagraph in all taxable years for any one piece of 
15 property may not exceed the amount of the bonus 
16 depreciation deduction taken on that property on the 
17 taxpayer's federal income tax return under subsection 
18 (k) of Section 168 of the Internal Revenue Code. This 
19 subparagraph (O) is exempt from the provisions of 
20 Section 250;
21   (P) If the taxpayer sells, transfers, abandons, or 
22 otherwise disposes of property for which the taxpayer 
23 was required in any taxable year to make an addition 
24 modification under subparagraph (D-5), then an amount 
25 equal to that addition modification.
26   If the taxpayer continues to own property through 
 
 
10300HB4951sam002- 1248 -LRB103 38094 HLH 74177 a


1 the last day of the last tax year for which a 
2 subtraction is allowed with respect to that property 
3 under subparagraph (O) and for which the taxpayer was 
4 required in any taxable year to make an addition 
5 modification under subparagraph (D-5), then an amount 
6 equal to that addition modification. 
7   The taxpayer is allowed to take the deduction 
8 under this subparagraph only once with respect to any 
9 one piece of property.
10   This subparagraph (P) is exempt from the 
11 provisions of Section 250;
12   (Q) The amount of (i) any interest income (net of 
13 the deductions allocable thereto) taken into account 
14 for the taxable year with respect to a transaction 
15 with a taxpayer that is required to make an addition 
16 modification with respect to such transaction under 
17 Section 203(a)(2)(D-17), 203(b)(2)(E-12), 
18 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed 
19 the amount of such addition modification and (ii) any 
20 income from intangible property (net of the deductions 
21 allocable thereto) taken into account for the taxable 
22 year with respect to a transaction with a taxpayer 
23 that is required to make an addition modification with 
24 respect to such transaction under Section 
25 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 
26 203(d)(2)(D-8), but not to exceed the amount of such 
 
 
10300HB4951sam002- 1249 -LRB103 38094 HLH 74177 a


1 addition modification. This subparagraph (Q) is exempt 
2 from Section 250; 
3   (R) An amount equal to the interest income taken 
4 into account for the taxable year (net of the 
5 deductions allocable thereto) with respect to 
6 transactions with (i) a foreign person who would be a 
7 member of the taxpayer's unitary business group but 
8 for the fact that the foreign person's business 
9 activity outside the United States is 80% or more of 
10 that person's total business activity and (ii) for 
11 taxable years ending on or after December 31, 2008, to 
12 a person who would be a member of the same unitary 
13 business group but for the fact that the person is 
14 prohibited under Section 1501(a)(27) from being 
15 included in the unitary business group because he or 
16 she is ordinarily required to apportion business 
17 income under different subsections of Section 304, but 
18 not to exceed the addition modification required to be 
19 made for the same taxable year under Section 
20 203(d)(2)(D-7) for interest paid, accrued, or 
21 incurred, directly or indirectly, to the same person. 
22 This subparagraph (R) is exempt from Section 250; 
23   (S) An amount equal to the income from intangible 
24 property taken into account for the taxable year (net 
25 of the deductions allocable thereto) with respect to 
26 transactions with (i) a foreign person who would be a 
 
 
10300HB4951sam002- 1250 -LRB103 38094 HLH 74177 a


1 member of the taxpayer's unitary business group but 
2 for the fact that the foreign person's business 
3 activity outside the United States is 80% or more of 
4 that person's total business activity and (ii) for 
5 taxable years ending on or after December 31, 2008, to 
6 a person who would be a member of the same unitary 
7 business group but for the fact that the person is 
8 prohibited under Section 1501(a)(27) from being 
9 included in the unitary business group because he or 
10 she is ordinarily required to apportion business 
11 income under different subsections of Section 304, but 
12 not to exceed the addition modification required to be 
13 made for the same taxable year under Section 
14 203(d)(2)(D-8) for intangible expenses and costs paid, 
15 accrued, or incurred, directly or indirectly, to the 
16 same person. This subparagraph (S) is exempt from 
17 Section 250; 
18   (T) For taxable years ending on or after December 
19 31, 2011, in the case of a taxpayer who was required to 
20 add back any insurance premiums under Section 
21 203(d)(2)(D-9), such taxpayer may elect to subtract 
22 that part of a reimbursement received from the 
23 insurance company equal to the amount of the expense 
24 or loss (including expenses incurred by the insurance 
25 company) that would have been taken into account as a 
26 deduction for federal income tax purposes if the 
 
 
10300HB4951sam002- 1251 -LRB103 38094 HLH 74177 a


1 expense or loss had been uninsured. If a taxpayer 
2 makes the election provided for by this subparagraph 
3 (T), the insurer to which the premiums were paid must 
4 add back to income the amount subtracted by the 
5 taxpayer pursuant to this subparagraph (T). This 
6 subparagraph (T) is exempt from the provisions of 
7 Section 250; and 
8   (U) For taxable years beginning on or after 
9 January 1, 2023, for any cannabis establishment 
10 operating in this State and licensed under the 
11 Cannabis Regulation and Tax Act or any cannabis 
12 cultivation center or medical cannabis dispensing 
13 organization operating in this State and licensed 
14 under the Compassionate Use of Medical Cannabis 
15 Program Act, an amount equal to the deductions that 
16 were disallowed under Section 280E of the Internal 
17 Revenue Code for the taxable year and that would not be 
18 added back under this subsection. The provisions of 
19 this subparagraph (U) are exempt from the provisions 
20 of Section 250. 

21 (e) Gross income; adjusted gross income; taxable income.
22  (1) In general. Subject to the provisions of paragraph 
23 (2) and subsection (b)(3), for purposes of this Section 
24 and Section 803(e), a taxpayer's gross income, adjusted 
25 gross income, or taxable income for the taxable year shall 
 
 
10300HB4951sam002- 1252 -LRB103 38094 HLH 74177 a


1 mean the amount of gross income, adjusted gross income or 
2 taxable income properly reportable for federal income tax 
3 purposes for the taxable year under the provisions of the 
4 Internal Revenue Code. Taxable income may be less than 
5 zero. However, for taxable years ending on or after 
6 December 31, 1986, net operating loss carryforwards from 
7 taxable years ending prior to December 31, 1986, may not 
8 exceed the sum of federal taxable income for the taxable 
9 year before net operating loss deduction, plus the excess 
10 of addition modifications over subtraction modifications 
11 for the taxable year. For taxable years ending prior to 
12 December 31, 1986, taxable income may never be an amount 
13 in excess of the net operating loss for the taxable year as 
14 defined in subsections (c) and (d) of Section 172 of the 
15 Internal Revenue Code, provided that when taxable income 
16 of a corporation (other than a Subchapter S corporation), 
17 trust, or estate is less than zero and addition 
18 modifications, other than those provided by subparagraph 
19 (E) of paragraph (2) of subsection (b) for corporations or 
20 subparagraph (E) of paragraph (2) of subsection (c) for 
21 trusts and estates, exceed subtraction modifications, an 
22 addition modification must be made under those 
23 subparagraphs for any other taxable year to which the 
24 taxable income less than zero (net operating loss) is 
25 applied under Section 172 of the Internal Revenue Code or 
26 under subparagraph (E) of paragraph (2) of this subsection 
 
 
10300HB4951sam002- 1253 -LRB103 38094 HLH 74177 a


1 (e) applied in conjunction with Section 172 of the 
2 Internal Revenue Code.
3  (2) Special rule. For purposes of paragraph (1) of 
4 this subsection, the taxable income properly reportable 
5 for federal income tax purposes shall mean:
6   (A) Certain life insurance companies. In the case 
7 of a life insurance company subject to the tax imposed 
8 by Section 801 of the Internal Revenue Code, life 
9 insurance company taxable income, plus the amount of 
10 distribution from pre-1984 policyholder surplus 
11 accounts as calculated under Section 815a of the 
12 Internal Revenue Code;
13   (B) Certain other insurance companies. In the case 
14 of mutual insurance companies subject to the tax 
15 imposed by Section 831 of the Internal Revenue Code, 
16 insurance company taxable income;
17   (C) Regulated investment companies. In the case of 
18 a regulated investment company subject to the tax 
19 imposed by Section 852 of the Internal Revenue Code, 
20 investment company taxable income;
21   (D) Real estate investment trusts. In the case of 
22 a real estate investment trust subject to the tax 
23 imposed by Section 857 of the Internal Revenue Code, 
24 real estate investment trust taxable income;
25   (E) Consolidated corporations. In the case of a 
26 corporation which is a member of an affiliated group 
 
 
10300HB4951sam002- 1254 -LRB103 38094 HLH 74177 a


1 of corporations filing a consolidated income tax 
2 return for the taxable year for federal income tax 
3 purposes, taxable income determined as if such 
4 corporation had filed a separate return for federal 
5 income tax purposes for the taxable year and each 
6 preceding taxable year for which it was a member of an 
7 affiliated group. For purposes of this subparagraph, 
8 the taxpayer's separate taxable income shall be 
9 determined as if the election provided by Section 
10 243(b)(2) of the Internal Revenue Code had been in 
11 effect for all such years;
12   (F) Cooperatives. In the case of a cooperative 
13 corporation or association, the taxable income of such 
14 organization determined in accordance with the 
15 provisions of Section 1381 through 1388 of the 
16 Internal Revenue Code, but without regard to the 
17 prohibition against offsetting losses from patronage 
18 activities against income from nonpatronage 
19 activities; except that a cooperative corporation or 
20 association may make an election to follow its federal 
21 income tax treatment of patronage losses and 
22 nonpatronage losses. In the event such election is 
23 made, such losses shall be computed and carried over 
24 in a manner consistent with subsection (a) of Section 
25 207 of this Act and apportioned by the apportionment 
26 factor reported by the cooperative on its Illinois 
 
 
10300HB4951sam002- 1255 -LRB103 38094 HLH 74177 a


1 income tax return filed for the taxable year in which 
2 the losses are incurred. The election shall be 
3 effective for all taxable years with original returns 
4 due on or after the date of the election. In addition, 
5 the cooperative may file an amended return or returns, 
6 as allowed under this Act, to provide that the 
7 election shall be effective for losses incurred or 
8 carried forward for taxable years occurring prior to 
9 the date of the election. Once made, the election may 
10 only be revoked upon approval of the Director. The 
11 Department shall adopt rules setting forth 
12 requirements for documenting the elections and any 
13 resulting Illinois net loss and the standards to be 
14 used by the Director in evaluating requests to revoke 
15 elections. Public Act 96-932 is declaratory of 
16 existing law; 
17   (G) Subchapter S corporations. In the case of: (i) 
18 a Subchapter S corporation for which there is in 
19 effect an election for the taxable year under Section 
20 1362 of the Internal Revenue Code, the taxable income 
21 of such corporation determined in accordance with 
22 Section 1363(b) of the Internal Revenue Code, except 
23 that taxable income shall take into account those 
24 items which are required by Section 1363(b)(1) of the 
25 Internal Revenue Code to be separately stated; and 
26 (ii) a Subchapter S corporation for which there is in 
 
 
10300HB4951sam002- 1256 -LRB103 38094 HLH 74177 a


1 effect a federal election to opt out of the provisions 
2 of the Subchapter S Revision Act of 1982 and have 
3 applied instead the prior federal Subchapter S rules 
4 as in effect on July 1, 1982, the taxable income of 
5 such corporation determined in accordance with the 
6 federal Subchapter S rules as in effect on July 1, 
7 1982; and
8   (H) Partnerships. In the case of a partnership, 
9 taxable income determined in accordance with Section 
10 703 of the Internal Revenue Code, except that taxable 
11 income shall take into account those items which are 
12 required by Section 703(a)(1) to be separately stated 
13 but which would be taken into account by an individual 
14 in calculating his taxable income.
15  (3) Recapture of business expenses on disposition of 
16 asset or business. Notwithstanding any other law to the 
17 contrary, if in prior years income from an asset or 
18 business has been classified as business income and in a 
19 later year is demonstrated to be non-business income, then 
20 all expenses, without limitation, deducted in such later 
21 year and in the 2 immediately preceding taxable years 
22 related to that asset or business that generated the 
23 non-business income shall be added back and recaptured as 
24 business income in the year of the disposition of the 
25 asset or business. Such amount shall be apportioned to 
26 Illinois using the greater of the apportionment fraction 
 
 
10300HB4951sam002- 1257 -LRB103 38094 HLH 74177 a


1 computed for the business under Section 304 of this Act 
2 for the taxable year or the average of the apportionment 
3 fractions computed for the business under Section 304 of 
4 this Act for the taxable year and for the 2 immediately 
5 preceding taxable years. 

6 (f) Valuation limitation amount.
7  (1) In general. The valuation limitation amount 
8 referred to in subsections (a)(2)(G), (c)(2)(I) and 
9 (d)(2)(E) is an amount equal to:
10   (A) The sum of the pre-August 1, 1969 appreciation 
11 amounts (to the extent consisting of gain reportable 
12 under the provisions of Section 1245 or 1250 of the 
13 Internal Revenue Code) for all property in respect of 
14 which such gain was reported for the taxable year; 
15 plus
16   (B) The lesser of (i) the sum of the pre-August 1, 
17 1969 appreciation amounts (to the extent consisting of 
18 capital gain) for all property in respect of which 
19 such gain was reported for federal income tax purposes 
20 for the taxable year, or (ii) the net capital gain for 
21 the taxable year, reduced in either case by any amount 
22 of such gain included in the amount determined under 
23 subsection (a)(2)(F) or (c)(2)(H).
24  (2) Pre-August 1, 1969 appreciation amount.
25   (A) If the fair market value of property referred 
 
 
10300HB4951sam002- 1258 -LRB103 38094 HLH 74177 a


1 to in paragraph (1) was readily ascertainable on 
2 August 1, 1969, the pre-August 1, 1969 appreciation 
3 amount for such property is the lesser of (i) the 
4 excess of such fair market value over the taxpayer's 
5 basis (for determining gain) for such property on that 
6 date (determined under the Internal Revenue Code as in 
7 effect on that date), or (ii) the total gain realized 
8 and reportable for federal income tax purposes in 
9 respect of the sale, exchange or other disposition of 
10 such property.
11   (B) If the fair market value of property referred 
12 to in paragraph (1) was not readily ascertainable on 
13 August 1, 1969, the pre-August 1, 1969 appreciation 
14 amount for such property is that amount which bears 
15 the same ratio to the total gain reported in respect of 
16 the property for federal income tax purposes for the 
17 taxable year, as the number of full calendar months in 
18 that part of the taxpayer's holding period for the 
19 property ending July 31, 1969 bears to the number of 
20 full calendar months in the taxpayer's entire holding 
21 period for the property.
22   (C) The Department shall prescribe such 
23 regulations as may be necessary to carry out the 
24 purposes of this paragraph.

25 (g) Double deductions. Unless specifically provided 
 
 
10300HB4951sam002- 1259 -LRB103 38094 HLH 74177 a


1otherwise, nothing in this Section shall permit the same item 
2to be deducted more than once.

3 (h) Legislative intention. Except as expressly provided by 
4this Section there shall be no modifications or limitations on 
5the amounts of income, gain, loss or deduction taken into 
6account in determining gross income, adjusted gross income or 
7taxable income for federal income tax purposes for the taxable 
8year, or in the amount of such items entering into the 
9computation of base income and net income under this Act for 
10such taxable year, whether in respect of property values as of 
11August 1, 1969 or otherwise.
12(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 
13102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 
1412-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised 
159-26-23.)

16 (35 ILCS 5/241 new)
17 Sec. 241. The Illinois Gives tax credit.
18 (a) For taxable years ending on or after December 31, 2025 
19and ending before January 1, 2030, each taxpayer for whom a tax 
20credit has been authorized by the Department of Revenue under 
21the Illinois Gives Tax Credit Act is entitled to a credit 
22against the tax imposed under subsections (a) and (b) of 
23Section 201 in an amount equal to the amount authorized under 
24that Act.
 
 
10300HB4951sam002- 1260 -LRB103 38094 HLH 74177 a


1 (b) For partners of partnerships and shareholders of 
2Subchapter S corporations, there is allowed a credit under 
3this Section to be determined in accordance with Section 251 
4of this Act.
5 (c) The credit may not be carried back and may not reduce 
6the taxpayer's liability to less than zero. If the amount of 
7the credit exceeds the tax liability for the year, the excess 
8may be carried forward and applied to the tax liability of the 
95 taxable years following the excess credit year. The tax 
10credit shall be applied to the earliest year for which there is 
11a tax liability. If there are credits for more than one year 
12that are available to offset a liability, the earlier credit 
13shall be applied first.

14
ARTICLE 175.


15 Section 175-5. The Property Tax Code is amended by 
16changing Section 18-185 as follows:

17 (35 ILCS 200/18-185)
18 Sec. 18-185. Short title; definitions.  This Division 5 
19may be cited as the Property Tax Extension Limitation Law. As 
20used in this Division 5: 
21 "Consumer Price Index" means the Consumer Price Index for 
22All Urban Consumers for all items published by the United 
23States Department of Labor. 
 
 
10300HB4951sam002- 1261 -LRB103 38094 HLH 74177 a


1 "Extension limitation" means (a) the lesser of 5% or the 
2percentage increase in the Consumer Price Index during the 
312-month calendar year preceding the levy year or (b) the rate 
4of increase approved by voters under Section 18-205. 
5 "Affected county" means a county of 3,000,000 or more 
6inhabitants or a county contiguous to a county of 3,000,000 or 
7more inhabitants. 
8 "Taxing district" has the same meaning provided in Section 
91-150, except as otherwise provided in this Section. For the 
101991 through 1994 levy years only, "taxing district" includes 
11only each non-home rule taxing district having the majority of 
12its 1990 equalized assessed value within any county or 
13counties contiguous to a county with 3,000,000 or more 
14inhabitants. Beginning with the 1995 levy year, "taxing 
15district" includes only each non-home rule taxing district 
16subject to this Law before the 1995 levy year and each non-home 
17rule taxing district not subject to this Law before the 1995 
18levy year having the majority of its 1994 equalized assessed 
19value in an affected county or counties. Beginning with the 
20levy year in which this Law becomes applicable to a taxing 
21district as provided in Section 18-213, "taxing district" also 
22includes those taxing districts made subject to this Law as 
23provided in Section 18-213. 
24 "Aggregate extension" for taxing districts to which this 
25Law applied before the 1995 levy year means the annual 
26corporate extension for the taxing district and those special 
 
 
10300HB4951sam002- 1262 -LRB103 38094 HLH 74177 a


1purpose extensions that are made annually for the taxing 
2district, excluding special purpose extensions: (a) made for 
3the taxing district to pay interest or principal on general 
4obligation bonds that were approved by referendum; (b) made 
5for any taxing district to pay interest or principal on 
6general obligation bonds issued before October 1, 1991; (c) 
7made for any taxing district to pay interest or principal on 
8bonds issued to refund or continue to refund those bonds 
9issued before October 1, 1991; (d) made for any taxing 
10district to pay interest or principal on bonds issued to 
11refund or continue to refund bonds issued after October 1, 
121991 that were approved by referendum; (e) made for any taxing 
13district to pay interest or principal on revenue bonds issued 
14before October 1, 1991 for payment of which a property tax levy 
15or the full faith and credit of the unit of local government is 
16pledged; however, a tax for the payment of interest or 
17principal on those bonds shall be made only after the 
18governing body of the unit of local government finds that all 
19other sources for payment are insufficient to make those 
20payments; (f) made for payments under a building commission 
21lease when the lease payments are for the retirement of bonds 
22issued by the commission before October 1, 1991, to pay for the 
23building project; (g) made for payments due under installment 
24contracts entered into before October 1, 1991; (h) made for 
25payments of principal and interest on bonds issued under the 
26Metropolitan Water Reclamation District Act to finance 
 
 
10300HB4951sam002- 1263 -LRB103 38094 HLH 74177 a


1construction projects initiated before October 1, 1991; (i) 
2made for payments of principal and interest on limited bonds, 
3as defined in Section 3 of the Local Government Debt Reform 
4Act, in an amount not to exceed the debt service extension base 
5less the amount in items (b), (c), (e), and (h) of this 
6definition for non-referendum obligations, except obligations 
7initially issued pursuant to referendum; (j) made for payments 
8of principal and interest on bonds issued under Section 15 of 
9the Local Government Debt Reform Act; (k) made by a school 
10district that participates in the Special Education District 
11of Lake County, created by special education joint agreement 
12under Section 10-22.31 of the School Code, for payment of the 
13school district's share of the amounts required to be 
14contributed by the Special Education District of Lake County 
15to the Illinois Municipal Retirement Fund under Article 7 of 
16the Illinois Pension Code; the amount of any extension under 
17this item (k) shall be certified by the school district to the 
18county clerk; (l) made to fund expenses of providing joint 
19recreational programs for persons with disabilities under 
20Section 5-8 of the Park District Code or Section 11-95-14 of 
21the Illinois Municipal Code; (m) made for temporary relocation 
22loan repayment purposes pursuant to Sections 2-3.77 and 
2317-2.2d of the School Code; (n) made for payment of principal 
24and interest on any bonds issued under the authority of 
25Section 17-2.2d of the School Code; (o) made for contributions 
26to a firefighter's pension fund created under Article 4 of the 
 
 
10300HB4951sam002- 1264 -LRB103 38094 HLH 74177 a


1Illinois Pension Code, to the extent of the amount certified 
2under item (5) of Section 4-134 of the Illinois Pension Code; 
3and (p) made for road purposes in the first year after a 
4township assumes the rights, powers, duties, assets, property, 
5liabilities, obligations, and responsibilities of a road 
6district abolished under the provisions of Section 6-133 of 
7the Illinois Highway Code; and (q) made under Section 4 of the 
8Community Mental Health Act to provide the necessary funds or 
9to supplement existing funds for community mental health 
10facilities and services, including facilities and services for 
11the person with a developmental disability or a substance use 
12disorder. 
13 "Aggregate extension" for the taxing districts to which 
14this Law did not apply before the 1995 levy year (except taxing 
15districts subject to this Law in accordance with Section 
1618-213) means the annual corporate extension for the taxing 
17district and those special purpose extensions that are made 
18annually for the taxing district, excluding special purpose 
19extensions: (a) made for the taxing district to pay interest 
20or principal on general obligation bonds that were approved by 
21referendum; (b) made for any taxing district to pay interest 
22or principal on general obligation bonds issued before March 
231, 1995; (c) made for any taxing district to pay interest or 
24principal on bonds issued to refund or continue to refund 
25those bonds issued before March 1, 1995; (d) made for any 
26taxing district to pay interest or principal on bonds issued 
 
 
10300HB4951sam002- 1265 -LRB103 38094 HLH 74177 a


1to refund or continue to refund bonds issued after March 1, 
21995 that were approved by referendum; (e) made for any taxing 
3district to pay interest or principal on revenue bonds issued 
4before March 1, 1995 for payment of which a property tax levy 
5or the full faith and credit of the unit of local government is 
6pledged; however, a tax for the payment of interest or 
7principal on those bonds shall be made only after the 
8governing body of the unit of local government finds that all 
9other sources for payment are insufficient to make those 
10payments; (f) made for payments under a building commission 
11lease when the lease payments are for the retirement of bonds 
12issued by the commission before March 1, 1995 to pay for the 
13building project; (g) made for payments due under installment 
14contracts entered into before March 1, 1995; (h) made for 
15payments of principal and interest on bonds issued under the 
16Metropolitan Water Reclamation District Act to finance 
17construction projects initiated before October 1, 1991; (h-4) 
18made for stormwater management purposes by the Metropolitan 
19Water Reclamation District of Greater Chicago under Section 12 
20of the Metropolitan Water Reclamation District Act; (h-8) made 
21for payments of principal and interest on bonds issued under 
22Section 9.6a of the Metropolitan Water Reclamation District 
23Act to make contributions to the pension fund established 
24under Article 13 of the Illinois Pension Code; (i) made for 
25payments of principal and interest on limited bonds, as 
26defined in Section 3 of the Local Government Debt Reform Act, 
 
 
10300HB4951sam002- 1266 -LRB103 38094 HLH 74177 a


1in an amount not to exceed the debt service extension base less 
2the amount in items (b), (c), and (e) of this definition for 
3non-referendum obligations, except obligations initially 
4issued pursuant to referendum and bonds described in 
5subsections (h) and (h-8) of this definition; (j) made for 
6payments of principal and interest on bonds issued under 
7Section 15 of the Local Government Debt Reform Act; (k) made 
8for payments of principal and interest on bonds authorized by 
9Public Act 88-503 and issued under Section 20a of the Chicago 
10Park District Act for aquarium or museum projects and bonds 
11issued under Section 20a of the Chicago Park District Act for 
12the purpose of making contributions to the pension fund 
13established under Article 12 of the Illinois Pension Code; (l) 
14made for payments of principal and interest on bonds 
15authorized by Public Act 87-1191 or 93-601 and (i) issued 
16pursuant to Section 21.2 of the Cook County Forest Preserve 
17District Act, (ii) issued under Section 42 of the Cook County 
18Forest Preserve District Act for zoological park projects, or 
19(iii) issued under Section 44.1 of the Cook County Forest 
20Preserve District Act for botanical gardens projects; (m) made 
21pursuant to Section 34-53.5 of the School Code, whether levied 
22annually or not; (n) made to fund expenses of providing joint 
23recreational programs for persons with disabilities under 
24Section 5-8 of the Park District Code or Section 11-95-14 of 
25the Illinois Municipal Code; (o) made by the Chicago Park 
26District for recreational programs for persons with 
 
 
10300HB4951sam002- 1267 -LRB103 38094 HLH 74177 a


1disabilities under subsection (c) of Section 7.06 of the 
2Chicago Park District Act; (p) made for contributions to a 
3firefighter's pension fund created under Article 4 of the 
4Illinois Pension Code, to the extent of the amount certified 
5under item (5) of Section 4-134 of the Illinois Pension Code; 
6(q) made by Ford Heights School District 169 under Section 
717-9.02 of the School Code; and (r) made for the purpose of 
8making employer contributions to the Public School Teachers' 
9Pension and Retirement Fund of Chicago under Section 34-53 of 
10the School Code; and (s) made under Section 4 of the Community 
11Mental Health Act to provide the necessary funds or to 
12supplement existing funds for community mental health 
13facilities and services, including facilities and services for 
14the person with a developmental disability or a substance use 
15disorder. 
16 "Aggregate extension" for all taxing districts to which 
17this Law applies in accordance with Section 18-213, except for 
18those taxing districts subject to paragraph (2) of subsection 
19(e) of Section 18-213, means the annual corporate extension 
20for the taxing district and those special purpose extensions 
21that are made annually for the taxing district, excluding 
22special purpose extensions: (a) made for the taxing district 
23to pay interest or principal on general obligation bonds that 
24were approved by referendum; (b) made for any taxing district 
25to pay interest or principal on general obligation bonds 
26issued before the date on which the referendum making this Law 
 
 
10300HB4951sam002- 1268 -LRB103 38094 HLH 74177 a


1applicable to the taxing district is held; (c) made for any 
2taxing district to pay interest or principal on bonds issued 
3to refund or continue to refund those bonds issued before the 
4date on which the referendum making this Law applicable to the 
5taxing district is held; (d) made for any taxing district to 
6pay interest or principal on bonds issued to refund or 
7continue to refund bonds issued after the date on which the 
8referendum making this Law applicable to the taxing district 
9is held if the bonds were approved by referendum after the date 
10on which the referendum making this Law applicable to the 
11taxing district is held; (e) made for any taxing district to 
12pay interest or principal on revenue bonds issued before the 
13date on which the referendum making this Law applicable to the 
14taxing district is held for payment of which a property tax 
15levy or the full faith and credit of the unit of local 
16government is pledged; however, a tax for the payment of 
17interest or principal on those bonds shall be made only after 
18the governing body of the unit of local government finds that 
19all other sources for payment are insufficient to make those 
20payments; (f) made for payments under a building commission 
21lease when the lease payments are for the retirement of bonds 
22issued by the commission before the date on which the 
23referendum making this Law applicable to the taxing district 
24is held to pay for the building project; (g) made for payments 
25due under installment contracts entered into before the date 
26on which the referendum making this Law applicable to the 
 
 
10300HB4951sam002- 1269 -LRB103 38094 HLH 74177 a


1taxing district is held; (h) made for payments of principal 
2and interest on limited bonds, as defined in Section 3 of the 
3Local Government Debt Reform Act, in an amount not to exceed 
4the debt service extension base less the amount in items (b), 
5(c), and (e) of this definition for non-referendum 
6obligations, except obligations initially issued pursuant to 
7referendum; (i) made for payments of principal and interest on 
8bonds issued under Section 15 of the Local Government Debt 
9Reform Act; (j) made for a qualified airport authority to pay 
10interest or principal on general obligation bonds issued for 
11the purpose of paying obligations due under, or financing 
12airport facilities required to be acquired, constructed, 
13installed or equipped pursuant to, contracts entered into 
14before March 1, 1996 (but not including any amendments to such 
15a contract taking effect on or after that date); (k) made to 
16fund expenses of providing joint recreational programs for 
17persons with disabilities under Section 5-8 of the Park 
18District Code or Section 11-95-14 of the Illinois Municipal 
19Code; (l) made for contributions to a firefighter's pension 
20fund created under Article 4 of the Illinois Pension Code, to 
21the extent of the amount certified under item (5) of Section 
224-134 of the Illinois Pension Code; and (m) made for the taxing 
23district to pay interest or principal on general obligation 
24bonds issued pursuant to Section 19-3.10 of the School Code; 
25and (n) made under Section 4 of the Community Mental Health Act 
26to provide the necessary funds or to supplement existing funds 
 
 
10300HB4951sam002- 1270 -LRB103 38094 HLH 74177 a


1for community mental health facilities and services, including 
2facilities and services for the person with a developmental 
3disability or a substance use disorder. 
4 "Aggregate extension" for all taxing districts to which 
5this Law applies in accordance with paragraph (2) of 
6subsection (e) of Section 18-213 means the annual corporate 
7extension for the taxing district and those special purpose 
8extensions that are made annually for the taxing district, 
9excluding special purpose extensions: (a) made for the taxing 
10district to pay interest or principal on general obligation 
11bonds that were approved by referendum; (b) made for any 
12taxing district to pay interest or principal on general 
13obligation bonds issued before March 7, 1997 (the effective 
14date of Public Act 89-718); (c) made for any taxing district to 
15pay interest or principal on bonds issued to refund or 
16continue to refund those bonds issued before March 7, 1997 
17(the effective date of Public Act 89-718); (d) made for any 
18taxing district to pay interest or principal on bonds issued 
19to refund or continue to refund bonds issued after March 7, 
201997 (the effective date of Public Act 89-718) if the bonds 
21were approved by referendum after March 7, 1997 (the effective 
22date of Public Act 89-718); (e) made for any taxing district to 
23pay interest or principal on revenue bonds issued before March 
247, 1997 (the effective date of Public Act 89-718) for payment 
25of which a property tax levy or the full faith and credit of 
26the unit of local government is pledged; however, a tax for the 
 
 
10300HB4951sam002- 1271 -LRB103 38094 HLH 74177 a


1payment of interest or principal on those bonds shall be made 
2only after the governing body of the unit of local government 
3finds that all other sources for payment are insufficient to 
4make those payments; (f) made for payments under a building 
5commission lease when the lease payments are for the 
6retirement of bonds issued by the commission before March 7, 
71997 (the effective date of Public Act 89-718) to pay for the 
8building project; (g) made for payments due under installment 
9contracts entered into before March 7, 1997 (the effective 
10date of Public Act 89-718); (h) made for payments of principal 
11and interest on limited bonds, as defined in Section 3 of the 
12Local Government Debt Reform Act, in an amount not to exceed 
13the debt service extension base less the amount in items (b), 
14(c), and (e) of this definition for non-referendum 
15obligations, except obligations initially issued pursuant to 
16referendum; (i) made for payments of principal and interest on 
17bonds issued under Section 15 of the Local Government Debt 
18Reform Act; (j) made for a qualified airport authority to pay 
19interest or principal on general obligation bonds issued for 
20the purpose of paying obligations due under, or financing 
21airport facilities required to be acquired, constructed, 
22installed or equipped pursuant to, contracts entered into 
23before March 1, 1996 (but not including any amendments to such 
24a contract taking effect on or after that date); (k) made to 
25fund expenses of providing joint recreational programs for 
26persons with disabilities under Section 5-8 of the Park 
 
 
10300HB4951sam002- 1272 -LRB103 38094 HLH 74177 a


1District Code or Section 11-95-14 of the Illinois Municipal 
2Code; and (l) made for contributions to a firefighter's 
3pension fund created under Article 4 of the Illinois Pension 
4Code, to the extent of the amount certified under item (5) of 
5Section 4-134 of the Illinois Pension Code; and (m) made under 
6Section 4 of the Community Mental Health Act to provide the 
7necessary funds or to supplement existing funds for community 
8mental health facilities and services, including facilities 
9and services for the person with a developmental disability or 
10a substance use disorder. 
11 "Debt service extension base" means an amount equal to 
12that portion of the extension for a taxing district for the 
131994 levy year, or for those taxing districts subject to this 
14Law in accordance with Section 18-213, except for those 
15subject to paragraph (2) of subsection (e) of Section 18-213, 
16for the levy year in which the referendum making this Law 
17applicable to the taxing district is held, or for those taxing 
18districts subject to this Law in accordance with paragraph (2) 
19of subsection (e) of Section 18-213 for the 1996 levy year, 
20constituting an extension for payment of principal and 
21interest on bonds issued by the taxing district without 
22referendum, but not including excluded non-referendum bonds. 
23For park districts (i) that were first subject to this Law in 
241991 or 1995 and (ii) whose extension for the 1994 levy year 
25for the payment of principal and interest on bonds issued by 
26the park district without referendum (but not including 
 
 
10300HB4951sam002- 1273 -LRB103 38094 HLH 74177 a


1excluded non-referendum bonds) was less than 51% of the amount 
2for the 1991 levy year constituting an extension for payment 
3of principal and interest on bonds issued by the park district 
4without referendum (but not including excluded non-referendum 
5bonds), "debt service extension base" means an amount equal to 
6that portion of the extension for the 1991 levy year 
7constituting an extension for payment of principal and 
8interest on bonds issued by the park district without 
9referendum (but not including excluded non-referendum bonds). 
10A debt service extension base established or increased at any 
11time pursuant to any provision of this Law, except Section 
1218-212, shall be increased each year commencing with the later 
13of (i) the 2009 levy year or (ii) the first levy year in which 
14this Law becomes applicable to the taxing district, by the 
15lesser of 5% or the percentage increase in the Consumer Price 
16Index during the 12-month calendar year preceding the levy 
17year. The debt service extension base may be established or 
18increased as provided under Section 18-212. "Excluded 
19non-referendum bonds" means (i) bonds authorized by Public Act 
2088-503 and issued under Section 20a of the Chicago Park 
21District Act for aquarium and museum projects; (ii) bonds 
22issued under Section 15 of the Local Government Debt Reform 
23Act; or (iii) refunding obligations issued to refund or to 
24continue to refund obligations initially issued pursuant to 
25referendum. 
26 "Special purpose extensions" include, but are not limited 
 
 
10300HB4951sam002- 1274 -LRB103 38094 HLH 74177 a


1to, extensions for levies made on an annual basis for 
2unemployment and workers' compensation, self-insurance, 
3contributions to pension plans, and extensions made pursuant 
4to Section 6-601 of the Illinois Highway Code for a road 
5district's permanent road fund whether levied annually or not. 
6The extension for a special service area is not included in the 
7aggregate extension. 
8 "Aggregate extension base" means the taxing district's 
9last preceding aggregate extension as adjusted under Sections 
1018-135, 18-215, 18-230, 18-206, and 18-233. Beginning with 
11levy year 2022, for taxing districts that are specified in 
12Section 18-190.7, the taxing district's aggregate extension 
13base shall be calculated as provided in Section 18-190.7. An 
14adjustment under Section 18-135 shall be made for the 2007 
15levy year and all subsequent levy years whenever one or more 
16counties within which a taxing district is located (i) used 
17estimated valuations or rates when extending taxes in the 
18taxing district for the last preceding levy year that resulted 
19in the over or under extension of taxes, or (ii) increased or 
20decreased the tax extension for the last preceding levy year 
21as required by Section 18-135(c). Whenever an adjustment is 
22required under Section 18-135, the aggregate extension base of 
23the taxing district shall be equal to the amount that the 
24aggregate extension of the taxing district would have been for 
25the last preceding levy year if either or both (i) actual, 
26rather than estimated, valuations or rates had been used to 
 
 
10300HB4951sam002- 1275 -LRB103 38094 HLH 74177 a


1calculate the extension of taxes for the last levy year, or 
2(ii) the tax extension for the last preceding levy year had not 
3been adjusted as required by subsection (c) of Section 18-135.
4 Notwithstanding any other provision of law, for levy year 
52012, the aggregate extension base for West Northfield School 
6District No. 31 in Cook County shall be $12,654,592. 
7 Notwithstanding any other provision of law, for levy year 
82022, the aggregate extension base of a home equity assurance 
9program that levied at least $1,000,000 in property taxes in 
10levy year 2019 or 2020 under the Home Equity Assurance Act 
11shall be the amount that the program's aggregate extension 
12base for levy year 2021 would have been if the program had 
13levied a property tax for levy year 2021. 
14 "Levy year" has the same meaning as "year" under Section 
151-155. 
16 "New property" means (i) the assessed value, after final 
17board of review or board of appeals action, of new 
18improvements or additions to existing improvements on any 
19parcel of real property that increase the assessed value of 
20that real property during the levy year multiplied by the 
21equalization factor issued by the Department under Section 
2217-30, (ii) the assessed value, after final board of review or 
23board of appeals action, of real property not exempt from real 
24estate taxation, which real property was exempt from real 
25estate taxation for any portion of the immediately preceding 
26levy year, multiplied by the equalization factor issued by the 
 
 
10300HB4951sam002- 1276 -LRB103 38094 HLH 74177 a


1Department under Section 17-30, including the assessed value, 
2upon final stabilization of occupancy after new construction 
3is complete, of any real property located within the 
4boundaries of an otherwise or previously exempt military 
5reservation that is intended for residential use and owned by 
6or leased to a private corporation or other entity, (iii) in 
7counties that classify in accordance with Section 4 of Article 
8IX of the Illinois Constitution, an incentive property's 
9additional assessed value resulting from a scheduled increase 
10in the level of assessment as applied to the first year final 
11board of review market value, and (iv) any increase in 
12assessed value due to oil or gas production from an oil or gas 
13well required to be permitted under the Hydraulic Fracturing 
14Regulatory Act that was not produced in or accounted for 
15during the previous levy year. In addition, the county clerk 
16in a county containing a population of 3,000,000 or more shall 
17include in the 1997 recovered tax increment value for any 
18school district, any recovered tax increment value that was 
19applicable to the 1995 tax year calculations. 
20 "Qualified airport authority" means an airport authority 
21organized under the Airport Authorities Act and located in a 
22county bordering on the State of Wisconsin and having a 
23population in excess of 200,000 and not greater than 500,000. 
24 "Recovered tax increment value" means, except as otherwise 
25provided in this paragraph, the amount of the current year's 
26equalized assessed value, in the first year after a 
 
 
10300HB4951sam002- 1277 -LRB103 38094 HLH 74177 a


1municipality terminates the designation of an area as a 
2redevelopment project area previously established under the 
3Tax Increment Allocation Redevelopment Act in the Illinois 
4Municipal Code, previously established under the Industrial 
5Jobs Recovery Law in the Illinois Municipal Code, previously 
6established under the Economic Development Project Area Tax 
7Increment Act of 1995, or previously established under the 
8Economic Development Area Tax Increment Allocation Act, of 
9each taxable lot, block, tract, or parcel of real property in 
10the redevelopment project area over and above the initial 
11equalized assessed value of each property in the redevelopment 
12project area. For the taxes which are extended for the 1997 
13levy year, the recovered tax increment value for a non-home 
14rule taxing district that first became subject to this Law for 
15the 1995 levy year because a majority of its 1994 equalized 
16assessed value was in an affected county or counties shall be 
17increased if a municipality terminated the designation of an 
18area in 1993 as a redevelopment project area previously 
19established under the Tax Increment Allocation Redevelopment 
20Act in the Illinois Municipal Code, previously established 
21under the Industrial Jobs Recovery Law in the Illinois 
22Municipal Code, or previously established under the Economic 
23Development Area Tax Increment Allocation Act, by an amount 
24equal to the 1994 equalized assessed value of each taxable 
25lot, block, tract, or parcel of real property in the 
26redevelopment project area over and above the initial 
 
 
10300HB4951sam002- 1278 -LRB103 38094 HLH 74177 a


1equalized assessed value of each property in the redevelopment 
2project area. In the first year after a municipality removes a 
3taxable lot, block, tract, or parcel of real property from a 
4redevelopment project area established under the Tax Increment 
5Allocation Redevelopment Act in the Illinois Municipal Code, 
6the Industrial Jobs Recovery Law in the Illinois Municipal 
7Code, or the Economic Development Area Tax Increment 
8Allocation Act, "recovered tax increment value" means the 
9amount of the current year's equalized assessed value of each 
10taxable lot, block, tract, or parcel of real property removed 
11from the redevelopment project area over and above the initial 
12equalized assessed value of that real property before removal 
13from the redevelopment project area. 
14 Except as otherwise provided in this Section, "limiting 
15rate" means a fraction the numerator of which is the last 
16preceding aggregate extension base times an amount equal to 
17one plus the extension limitation defined in this Section and 
18the denominator of which is the current year's equalized 
19assessed value of all real property in the territory under the 
20jurisdiction of the taxing district during the prior levy 
21year. For those taxing districts that reduced their aggregate 
22extension for the last preceding levy year, except for school 
23districts that reduced their extension for educational 
24purposes pursuant to Section 18-206, the highest aggregate 
25extension in any of the last 3 preceding levy years shall be 
26used for the purpose of computing the limiting rate. The 
 
 
10300HB4951sam002- 1279 -LRB103 38094 HLH 74177 a


1denominator shall not include new property or the recovered 
2tax increment value. If a new rate, a rate decrease, or a 
3limiting rate increase has been approved at an election held 
4after March 21, 2006, then (i) the otherwise applicable 
5limiting rate shall be increased by the amount of the new rate 
6or shall be reduced by the amount of the rate decrease, as the 
7case may be, or (ii) in the case of a limiting rate increase, 
8the limiting rate shall be equal to the rate set forth in the 
9proposition approved by the voters for each of the years 
10specified in the proposition, after which the limiting rate of 
11the taxing district shall be calculated as otherwise provided. 
12In the case of a taxing district that obtained referendum 
13approval for an increased limiting rate on March 20, 2012, the 
14limiting rate for tax year 2012 shall be the rate that 
15generates the approximate total amount of taxes extendable for 
16that tax year, as set forth in the proposition approved by the 
17voters; this rate shall be the final rate applied by the county 
18clerk for the aggregate of all capped funds of the district for 
19tax year 2012.
20(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21; 
21102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff. 
224-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; 
23103-154, eff. 6-30-23.)

24 Section 175-10. The Community Mental Health Act is amended 
25by changing Sections 3a, 3b, 3e, 3f, 4, 5, 6, and 7 as follows:

 
 
10300HB4951sam002- 1280 -LRB103 38094 HLH 74177 a


1 (405 ILCS 20/3a) (from Ch. 91 1/2, par. 303a)
2 Sec. 3a. Every governmental unit authorized to levy an 
3annual tax under any of the provisions of this Act shall, 
4before it may levy such tax, establish a 7 member community 
5mental health board who shall administer this Act. Such board 
6shall be appointed by the chairman of the governing body of a 
7county, the mayor of a city, the president of a village, the 
8president of an incorporated town, or the supervisor of a 
9township, as the case may be, with the advice and consent of 
10the governing body of such county, city, village, incorporated 
11town or the town board of trustees of any township, except in 
12any county with a county executive form of government, if 
13applicable, the county executive shall appoint the board with 
14the advice and consent of the county board. Members of the 
15community mental health board shall be residents of the 
16government unit and, as nearly as possible, be representative 
17of interested groups of the community such as local health 
18departments, medical societies, local comprehensive health 
19planning agencies, hospital boards, lay associations concerned 
20with mental health, developmental disabilities and substance 
21abuse, and individuals with professional or lived expertise in 
22mental health, developmental disabilities, and substance abuse 
23as well as the general public. General public representation 
24may also be considered for appointment when there are gaps in 
25board duties and qualifications that cannot be filled from the 
 
 
10300HB4951sam002- 1281 -LRB103 38094 HLH 74177 a


1above stated categories. Only one member shall be a member of 
2the governing body, with the term of membership on the board to 
3run concurrently with the elected term of the member. The 
4chairman of the governing body may, upon the request of the 
5community mental health board, appoint 2 additional members to 
6the community mental health board. No member of the community 
7mental health board may be a full-time or part-time employee 
8of the Department of Human Services or a board member, 
9employee or any other individual receiving compensation from 
10any facility or service operating under contract to the board. 
11If a successful referendum is held under Section 5 of this Act, 
12all members of such board shall be appointed within 60 days 
13after the local election authority certifies the passage of 
14the referendum. If a community mental health board has been 
15established by a county with a population of less than 500,000 
16and the community mental health board is funded in whole or in 
17part by a special mental health sales tax described in 
18paragraph (4) of subsection (a) of Section 5-1006.5 of the 
19Counties Code, the largest municipality in the county with at 
20least 125,000 residents may appoint 2 additional members to 
21the board. The members shall be appointed by the mayor of the 
22municipality with the advice and consent of the municipality's 
23governing body.
24 Home rule units are exempt from this Act. However, they 
25may, by ordinance, adopt the provisions of this Act, or any 
26portion thereof, that they may deem advisable.
 
 
10300HB4951sam002- 1282 -LRB103 38094 HLH 74177 a


1 The tax rate set forth in Section 4 may be levied by any 
2non-home rule unit only pursuant to the approval by the voters 
3at a referendum. Such referendum may have been held at any time 
4subsequent to the effective date of the Community Mental 
5Health Act.
6(Source: P.A. 103-274, eff. 1-1-24; 103-565, eff. 11-17-23.)

7 (405 ILCS 20/3b) (from Ch. 91 1/2, par. 303b)
8 Sec. 3b. The term of office of each member of the community 
9mental health board shall be for 4 years, provided, however, 
10that of the members first appointed, 2 shall be appointed for a 
11term of 2 years, 2 for a term of 3 years and 3 for a term of 4 
12years. All terms shall be measured from the first day of the 
13month of appointment. Vacancies shall be filled for the 
14unexpired term in the same manner as original appointments 
15with the advice of the community mental health board, who may 
16establish a policy and procedure for the acceptance and review 
17of applications from interested residents prior to making a 
18recommendation to the appointing authority. A community mental 
19health board may provide advice to the governing body and may 
20establish a policy and procedure for the acceptance and review 
21of applications from interested residents prior to making a 
22recommendation to the appointing authority.
23(Source: P.A. 103-274, eff. 1-1-24.)

24 (405 ILCS 20/3e) (from Ch. 91 1/2, par. 303e)
 
 
10300HB4951sam002- 1283 -LRB103 38094 HLH 74177 a


1 Sec. 3e. Board's powers and duties. 
2 (1) Every community mental health board shall, within 30 
3days after members are first appointed and within 30 days 
4after members are appointed or reappointed upon the expiration 
5of a member's term, meet and organize, by the election of one 
6of its number as president and one as secretary and such other 
7officers as it may deem necessary. It shall make rules and 
8regulations concerning the rendition or operation of services 
9and facilities which it directs, supervises or funds, not 
10inconsistent with the provisions of this Act. It shall:
11  (a) Hold a meeting prior to July 1 of each year at 
12 which officers shall be elected for the ensuing year 
13 beginning July 1. If the community mental health board has 
14 already held or scheduled an election to take place prior 
15 to July 1, an additional election is not required on the 
16 basis of the appointment or reappointment of a member to 
17 the community mental health board;
18  (b) Hold meetings at least quarterly;
19  (c) Hold special meetings upon a written request 
20 signed by at least 2 members and filed with the secretary;
21  (d) Review and evaluate community mental health 
22 services and facilities, including services and facilities 
23 for the treatment of alcoholism, drug addiction, 
24 developmental disabilities, and intellectual 
25 disabilities;
26  (e) Authorize the disbursement of money from the 
 
 
10300HB4951sam002- 1284 -LRB103 38094 HLH 74177 a


1 community mental health fund for payment for the ordinary 
2 and contingent expenses of the board; 
3  (f) Submit to the appointing officer and the members 
4 of the governing body a written plan for a program of 
5 community mental health services and facilities for 
6 persons with a mental illness, a developmental disability, 
7 or a substance use disorder. Such plan shall be for the 
8 ensuing 12 month period. In addition, a plan shall be 
9 developed for the ensuing 3 year period and such plan 
10 shall be reviewed at the end of every 12 month period and 
11 shall be modified as deemed advisable; .
12  (g) Within amounts appropriated therefor, execute such 
13 programs and maintain such services and facilities as may 
14 be authorized under such appropriations, including amounts 
15 appropriated under bond issues, if any;
16  (h) Publish the annual budget and report within 180 
17 120 days after the end of the fiscal year in a newspaper 
18 distributed within the jurisdiction of the board, or, if 
19 no newspaper is published within the jurisdiction of the 
20 board, then one published in the county, or, if no 
21 newspaper is published in the county, then in a newspaper 
22 having general circulation within the jurisdiction of the 
23 board. The report shall show the condition of its trust of 
24 that year, the sums of money received from all sources, 
25 giving the name of any donor, how all monies have been 
26 expended and for what purpose, and such other statistics 
 
 
10300HB4951sam002- 1285 -LRB103 38094 HLH 74177 a


1 and program information in regard to the work of the board 
2 as it may deem of general interest. A copy of the budget 
3 and the annual report shall be made available to the 
4 Department of Human Services and to members of the General 
5 Assembly whose districts include any part of the 
6 jurisdiction of such board. The names of all employees, 
7 consultants, and other personnel shall be set forth along 
8 with the amounts of money received;
9  (i) Consult with other appropriate private and public 
10 agencies in the development of local plans for the most 
11 efficient delivery of mental health, developmental 
12 disabilities, and substance use disorder services. The 
13 Board is authorized to join and to participate in the 
14 activities of associations organized for the purpose of 
15 promoting more efficient and effective services and 
16 programs;
17  (j) Have the authority to review and comment on all 
18 applications for grants by any person, corporation, or 
19 governmental unit providing services within the 
20 geographical area of the board which provides mental 
21 health facilities and services, including services for the 
22 person with a mental illness, a developmental disability, 
23 or a substance use disorder. The board may require funding 
24 applicants to send a copy of their funding application to 
25 the board at the time such application is submitted to the 
26 Department of Human Services or to any other local, State 
 
 
10300HB4951sam002- 1286 -LRB103 38094 HLH 74177 a


1 or federal funding source or governmental agency. Within 
2 60 days of the receipt of any application, the board shall 
3 submit its review and comments to the Department of Human 
4 Services or to any other appropriate local, State or 
5 federal funding source or governmental agency. A copy of 
6 the review and comments shall be submitted to the funding 
7 applicant. Within 60 days thereafter, the Department of 
8 Human Services or any other appropriate local or State 
9 governmental agency shall issue a written response to the 
10 board and the funding applicant. The Department of Human 
11 Services or any other appropriate local or State 
12 governmental agency shall supply any community mental 
13 health board such information about purchase-of-care 
14 funds, State facility utilization, and costs in its 
15 geographical area as the board may request provided that 
16 the information requested is for the purpose of the 
17 Community Mental Health Board complying with the 
18 requirements of Section 3f, subsection (f) of this Act;
19  (k) Perform such other acts as may be necessary or 
20 proper to carry out the purposes of this Act.
21 (2) The community mental health board has the following 
22powers:
23  (a) The board may enter into multiple-year contracts 
24 for rendition or operation of services, facilities and 
25 educational programs.
26  (b) The board may arrange through intergovernmental 
 
 
10300HB4951sam002- 1287 -LRB103 38094 HLH 74177 a


1 agreements or intragovernmental agreements or both for the 
2 rendition of services and operation of facilities by other 
3 agencies or departments of the governmental unit or county 
4 in which the governmental unit is located with the 
5 approval of the governing body.
6  (c) To employ, establish compensation for, and set 
7 policies for its personnel, including legal counsel, as 
8 may be necessary to carry out the purposes of this Act and 
9 prescribe the duties thereof. The board may enter into 
10 multiple-year employment contracts as may be necessary for 
11 the recruitment and retention of personnel and the proper 
12 functioning of the board.
13  (d) The board may enter into multiple-year joint 
14 agreements, which shall be written, with other mental 
15 health boards and boards of health to provide jointly 
16 agreed upon community mental health facilities and 
17 services and to pool such funds as may be deemed necessary 
18 and available for this purpose.
19  (e) The board may organize a not-for-profit 
20 corporation for the purpose of providing direct recipient 
21 services. Such corporations shall have, in addition to all 
22 other lawful powers, the power to contract with persons to 
23 furnish services for recipients of the corporation's 
24 facilities, including psychiatrists and other physicians 
25 licensed in this State to practice medicine in all of its 
26 branches. Such physicians shall be considered independent 
 
 
10300HB4951sam002- 1288 -LRB103 38094 HLH 74177 a


1 contractors, and liability for any malpractice shall not 
2 extend to such corporation, nor to the community mental 
3 health board, except for gross negligence in entering into 
4 such a contract.
5  (f) The board shall not operate any direct recipient 
6 services for more than a 2-year period when such services 
7 are being provided in the governmental unit, but shall 
8 encourage, by financial support, the development of 
9 private agencies to deliver such needed services, pursuant 
10 to regulations of the board.
11  (g) Where there are multiple boards within the same 
12 planning area, as established by the Department of Human 
13 Services, services may be purchased through a single 
14 delivery system. In such areas, a coordinating body with 
15 representation from each board shall be established to 
16 carry out the service functions of this Act. In the event 
17 any such coordinating body purchases or improves real 
18 property, such body shall first obtain the approval of the 
19 governing bodies of the governmental units in which the 
20 coordinating body is located.
21  (h) The board may enter into multiple-year joint 
22 agreements with other governmental units located within 
23 the geographical area of the board. Such agreements shall 
24 be written and shall provide for the rendition of services 
25 by the board to the residents of such governmental units. 
26  (i) The board may enter into multiple-year joint 
 
 
10300HB4951sam002- 1289 -LRB103 38094 HLH 74177 a


1 agreements with federal, State, and local governments, 
2 including the Department of Human Services or any other 
3 appropriate local or State governmental agency, whereby 
4 the board will provide certain services. All such joint 
5 agreements must provide for the exchange of relevant data. 
6 However, nothing in this Act shall be construed to permit 
7 the abridgement of the confidentiality of patient records.
8  (j) The board may receive gifts from private sources 
9 for purposes not inconsistent with the provisions of this 
10 Act.
11  (k) The board may receive federal Federal, State, and 
12 local funds for purposes not inconsistent with the 
13 provisions of this Act.
14  (l) The board may establish scholarship programs. Such 
15 programs shall require equivalent service or reimbursement 
16 pursuant to regulations of the board.
17  (m) The board may sell, rent, or lease real property 
18 for purposes consistent with this Act.
19  (n) The board may: (i) own real property, lease real 
20 property as lessee, or acquire real property by purchase, 
21 construction, lease-purchase agreement, or otherwise; (ii) 
22 take title to the property in the board's name; (iii) 
23 borrow money and issue debt instruments, mortgages, 
24 purchase-money mortgages, and other security instruments 
25 with respect to the property; and (iv) maintain, repair, 
26 remodel, or improve the property. All of these activities 
 
 
10300HB4951sam002- 1290 -LRB103 38094 HLH 74177 a


1 must be for purposes consistent with this Act as may be 
2 reasonably necessary for the housing and proper 
3 functioning of the board. The board may use moneys in the 
4 Community Mental Health Fund for these purposes.
5  (o) The board may organize a not-for-profit 
6 corporation (i) for the purpose of raising money to be 
7 distributed by the board for providing community mental 
8 health services and facilities for the treatment of 
9 alcoholism, drug addiction, developmental disabilities, 
10 and intellectual disabilities or (ii) for other purposes 
11 not inconsistent with this Act.
12  (p) The board may fix a fiscal year for the board.
13  (q) The board has the responsibility to set, maintain, 
14 and implement the budget.
15  (r) The board may establish professional incentive 
16 programs for the purposes of workforce development and 
17 retention that may include education assistance, student 
18 loan repayment, professional certification and licensure 
19 assistance, and internship stipends. 
20 Every board shall be subject to the requirements under the 
21Freedom of Information Act and the Open Meetings Act. 
22(Source: P.A. 103-274, eff. 1-1-24; revised 1-20-24.)

23 (405 ILCS 20/3f) (from Ch. 91 1/2, par. 303f)
24 Sec. 3f. Annually, each community mental health board 
25shall prepare and submit, for informational purposes in the 
 
 
10300HB4951sam002- 1291 -LRB103 38094 HLH 74177 a


1appropriations process, to the appointing officer and 
2governing body referred to in Section 3a: (a) an annual budget 
3showing the estimated receipts and intended disbursements 
4pursuant to this Act for the fiscal year immediately following 
5the date the budget is submitted, which date must be at least 
630 days prior to the start of the fiscal year, and (b) an 
7annual report detailing the income received and disbursements 
8made pursuant to this Act during the fiscal year just 
9preceding the date the annual report is submitted, which date 
10must be within 180 90 days of the end close of that fiscal 
11year. Such report shall also include those matters set forth 
12in Section 8 of this Act.
13(Source: P.A. 95-336, eff. 8-21-07.)

14 (405 ILCS 20/4) (from Ch. 91 1/2, par. 304)
15 Sec. 4. In order to provide the necessary funds or to 
16supplement existing funds for such community mental health 
17facilities and services, including facilities and services for 
18the person with a developmental disability or a substance use 
19disorder, the governing body of any governmental unit, subject 
20to the provisions of Section 5, may levy an annual tax of not 
21to exceed .15% upon all of the taxable property in such 
22governmental unit at the value thereof, as equalized or 
23assessed by the Department of Revenue. Such tax shall be 
24levied and collected in the same manner as other governmental 
25unit taxes, but shall not be included in any limitation 
 
 
10300HB4951sam002- 1292 -LRB103 38094 HLH 74177 a


1otherwise prescribed as to the rate or amount of governmental 
2unit taxes, but shall be in addition thereto and in excess 
3thereof.
4 An annual tax levied by any governmental unit under this 
5Section is separate and distinct from all other property taxes 
6levied by that governmental unit and (1) shall not be 
7considered an increase for purposes of the application of the 
8Truth in Taxation Law and its requirements and (2) shall not be 
9subject to the Property Tax Extension Limitation Law. 
10 When collected, such tax shall be paid into a special fund 
11to be designated as the "Community Mental Health Fund" which 
12shall, upon authorization by the appropriate governmental 
13unit, be administered by the community mental health board and 
14used only for the purposes specified in this Act. Nothing 
15contained herein shall in any way preclude the use of other 
16funds available for such purposes under any existing Federal, 
17State or local statute. Interest earned from moneys deposited 
18in this Fund shall only be used for purposes which are 
19authorized by this Act.
20 In any city, village, incorporated town, or township which 
21levies a tax for the purpose of providing community mental 
22health facilities and services and part or all of such city, 
23village, incorporated town, or township is in a county or 
24township, as the case may be, which levies a tax to provide 
25community mental health facilities and services under the 
26provisions of this Act, such county or township, as the case 
 
 
10300HB4951sam002- 1293 -LRB103 38094 HLH 74177 a


1may be, shall pay to such city, village, incorporated town, or 
2township, as the case may be, the entire amount collected from 
3taxes under this Section on property subject to a tax which any 
4city, village, incorporated town, or township thereof levies 
5to provide community mental health facilities and services.
6 Whenever any city, village, incorporated town, or township 
7receives any payments from a county or township as provided 
8above, such city, village, incorporated town, or township 
9shall reduce and abate from the tax levied by the authority of 
10this Section a rate which would produce an amount equal to the 
11amount received from such county or township.
12(Source: P.A. 95-336, eff. 8-21-07.)

13 (405 ILCS 20/5) (from Ch. 91 1/2, par. 305)
14 Sec. 5. (a) When the governing body of a governmental unit 
15passes a resolution as provided in Section 4 asking that an 
16annual tax may be levied for the purpose of providing such 
17mental health facilities and services, including facilities 
18and services for the person with a developmental disability or 
19a substance use disorder, in the community and so instructs 
20the clerk of the governmental unit such clerk shall certify 
21the proposition to the proper election officials for 
22submission at a regular election in accordance with the 
23general election law. The proposition shall be in 
24substantially the following form:
25----------------------------

 
 
10300HB4951sam002- 1294 -LRB103 38094 HLH 74177 a


1 Shall............ (governmental

2unit) levy an annual tax

3not to exceed of (no not YES

4more than .15%) for the purpose

5of providing community mental

6health facilities and --------------------------------

7services including facilities

8and services for persons with

9a developmental disability or a NO

10substance use disorder?

11-------------------------------------------------------------
12 (a-5) In addition, the ballot for any proposition 
13submitted pursuant to this Section shall have printed thereon, 
14but not as part of the proposition submitted, only the 
15following supplemental information (which shall be supplied to 
16the election authority by the taxing district) in 
17substantially the following form:
18  (1) The approximate amount of taxes extendable at the 
19 most recently extended limiting rate is $...., and the 
20 approximate amount of taxes extendable if the proposition 
21 is approved is $....
22  (2) For the .... (insert the first levy year for which 
23 the new rate or increase limiting rate will be applicable) 
24 levy year the approximate amount of the additional tax 
25 extendable against property containing a single family 
26 residence and having a fair market value at the time of the 
 
 
10300HB4951sam002- 1295 -LRB103 38094 HLH 74177 a


1 referendum of $100,000 is estimated to be $....
2 If a proposition contains the language in substantially 
3the form provided above the referendum is valid 
4notwithstanding any other provision of the law. If the 
5governmental unit is also subject to the Property Tax 
6Extension Limitation Law, then the proposition shall also 
7comply with the Property Tax Extension Limitation Law. 
8Notwithstanding any provision of this subsection, any 
9referendum imposing an annual tax on or after January 1, 1994 
10and prior to the effective date of this amendatory Act of the 
11103rd General Assembly that complies with subsection (a) is 
12hereby validated. 
13 (b) If a majority of all the votes cast upon the 
14proposition are for the levy of such tax, the governing body of 
15such governmental unit shall thereafter annually levy a tax 
16not to exceed the rate set forth in Section 4. Thereafter, the 
17governing body shall in the annual appropriation bill 
18appropriate from such funds such sum or sums of money as may be 
19deemed necessary by the community mental health board, based 
20upon the community mental health board's budget, the board's 
21annual mental health report, and the local mental health plan 
22to defray necessary expenses and liabilities in providing for 
23such community mental health facilities and services.
24 (c) If the governing body of a governmental unit levies a 
25tax under Section 4 of this Act and the rate specified in the 
26proposition under subsection (a) of this Section is less than 
 
 
10300HB4951sam002- 1296 -LRB103 38094 HLH 74177 a


10.15%, then the governing body of the governmental unit may, 
2upon referendum approval, increase that rate to not more than 
30.15%. The governing body shall instruct the clerk of the 
4governmental unit to certify the proposition to the proper 
5election officials for submission at a regular election in 
6accordance with the general election law. The proposition 
7shall be in the following form: 
8  "Shall the tax imposed by (governmental unit) for the 
9 purpose of providing community mental health facilities 
10 and services, including facilities and services for 
11 persons with a developmental disability or substance use 
12 disorder be increased to (not more than 0.15%)?" 
13 If a majority of all the votes cast upon the proposition 
14are for the increase of the tax, then the governing body of the 
15governmental unit may thereafter annually levy a tax not to 
16exceed the rate set forth in the referendum question. Nothing 
17in this Section prevents a governmental unit from levying less 
18than the amount approved by the voters via referendum in any 
19given year or varying the amount levied from year to year as 
20approved by the governmental unit. 
21(Source: P.A. 102-839, eff. 5-13-22; 102-935, eff. 7-1-22; 
22103-154, eff. 6-30-23; 103-274, eff. 1-1-24; 103-565, eff. 
2311-17-23.)

24 (405 ILCS 20/6) (from Ch. 91 1/2, par. 306)
25 Sec. 6. Whenever the governing body of any governmental 
 
 
10300HB4951sam002- 1297 -LRB103 38094 HLH 74177 a


1unit has not provided the community mental health facilities 
2and services provided in Section 2 and levied the tax provided 
3in Section 4 and a petition signed by electors of the 
4governmental unit equal in number to at least 10% of the total 
5votes cast for the office which received the greatest total 
6number of votes at the last preceding general governmental 
7unit election is presented to the clerk of the governmental 
8unit requesting the establishment and maintenance of such 
9community mental health facilities and services, including 
10facilities and services for the person with a developmental 
11disability or a substance use disorder, for residents thereof 
12and the levy of such an annual tax therefor, the governing body 
13of the governmental unit, subject to the provisions of Section 
147, shall establish and maintain such community mental health 
15facilities and services and shall levy such an annual tax of 
16not to exceed .15% upon all of the taxable property in such 
17governmental unit at the value thereof, as equalized or 
18assessed by the Department of Revenue. Such tax shall be 
19levied and collected in the same manner as other governmental 
20unit taxes, but shall not be included in any limitation 
21otherwise prescribed as to the rate or amount of governmental 
22unit taxes, but shall be in addition thereto and in excess 
23thereof.
24 An annual tax levied by any governmental unit under this 
25Section is separate and distinct from all other property taxes 
26levied by that governmental unit and (1) shall not be 
 
 
10300HB4951sam002- 1298 -LRB103 38094 HLH 74177 a


1considered an increase for purposes of the application of the 
2Truth in Taxation Law and its requirements and (2) shall not be 
3subject to the Property Tax Extension Limitation Law. 
4 When collected, such tax shall be paid into a special fund 
5to be designated as the "Community Mental Health Fund" which 
6shall, upon authorization by the appropriate governmental 
7unit, be administered by the community mental health board and 
8used only for the purposes specified in this Act. Nothing 
9contained herein shall in any way preclude the use of other 
10funds available for such purposes under any existing Federal, 
11State or local statute. Interest earned from moneys deposited 
12in this Fund shall only be used for purposes which are 
13authorized by this Act.
14 In any city, village, incorporated town, or township which 
15levies a tax for the purpose of providing community mental 
16health facilities and services and part or all of such city, 
17village, incorporated town, or township is in a county or 
18township, as the case may be, which levies a tax to provide 
19community mental health facilities and services under the 
20provisions of this Act, such county or township, as the case 
21may be, shall pay to such city, village, incorporated town, or 
22township, as the case may be, the entire amount collected from 
23taxes under this Section on property subject to a tax which any 
24city, village, incorporated town, or township thereof levies 
25to provide community mental health facilities and services.
26 Whenever any city, village, incorporated town, or township 
 
 
10300HB4951sam002- 1299 -LRB103 38094 HLH 74177 a


1receives any payments from a county or township as provided 
2above, such city, village, incorporated town, or township 
3shall reduce and abate from the tax levied by the authority of 
4this Section a rate which would produce an amount equal to the 
5amount received from such county or township.
6(Source: P.A. 95-336, eff. 8-21-07.)

7 (405 ILCS 20/7) (from Ch. 91 1/2, par. 307)
8 Sec. 7. When the petition provided for in Section 6 is 
9presented to the clerk of the governmental unit requesting the 
10establishment and maintenance of such mental health facilities 
11and services for residents of the community and the levy of 
12such an annual tax therefor, the clerk of the governmental 
13unit shall certify to the proper election officials the 
14proposition for the levy of such tax which shall be submitted 
15at a regular election in accordance with the general election 
16law. The proposition shall be in substantially the following 
17form:
18--------------------------------------------------------

19 Shall....................

20(governmental unit) establish and

21maintain community mental health YES

22facilities and services including

23facilities and services for the ----------------------

24person with a developmental

25disability or a substance NO

 
 
10300HB4951sam002- 1300 -LRB103 38094 HLH 74177 a


1use disorder and levy therefor an

2annual tax of not to exceed .15%?

3-------------------------------------------------------------
4 In addition to certification of the question, the clerk of 
5the governmental unit shall prepare and submit to the proper 
6elected officials the following language which shall have 
7printed thereon, but not as part of the proposition submitted, 
8only the following supplemental information (which shall be 
9supplied to the election authority by the taxing district) in 
10substantially the following form:
11  (1) The approximate amount of taxes extendable at the 
12 most recently extended limiting rate is $...., and the 
13 approximate amount of taxes extendable if the proposition 
14 is approved is $....
15  (2) For the .... (insert the first levy year for which 
16 the new rate or increase limiting rate will be applicable) 
17 levy year the approximate amount of the additional tax 
18 extendable against property containing a single family 
19 residence and having a fair market value at the time of the 
20 referendum of $100,000 is estimated to be $....
21 If a proposition contains the language in substantially 
22the form provided in paragraphs (1) and (2), the referendum is 
23valid notwithstanding any other provision of the law. 
24 If a majority of all the votes cast upon the proposition 
25are in favor thereof, the governing body of such governmental 
26unit shall establish and maintain such community mental health 
 
 
10300HB4951sam002- 1301 -LRB103 38094 HLH 74177 a


1facilities and services and shall annually levy such tax. 
2Thereafter, the governing body shall in the annual 
3appropriation bill appropriate from such funds such sum or 
4sums of money as may be deemed necessary, based upon the 
5community mental health board's budget, the board's annual 
6mental health report, and the board's plan to defray necessary 
7expenses and liabilities in providing for such community 
8mental health facilities and services.
9 Nothing in this Section prevents a governmental unit from 
10levying less than the amount approved by the voters via 
11referendum in any given year or varying the amount levied from 
12year to year as approved by the governmental unit. 
13(Source: P.A. 95-336, eff. 8-21-07.)

14 Section 175-97. Retroactivity. The changes made by this 
15Article apply to referenda creating community mental health 
16boards, including community mental health boards located in 
17counties that have adopted a county executive form of 
18government under Division 2-5 of the Counties Code, to levy an 
19annual tax for the establishment and maintenance of mental 
20health facilities and services for residents of the community 
21that were approved or validated on or after January 1, 2020 and 
22to referenda that are approved on or after the effective date 
23of this Article.

24
ARTICLE 999.


 
 
10300HB4951sam002- 1302 -LRB103 38094 HLH 74177 a


1 Section 999-95. No acceleration or delay. Where this Act 
2makes changes in a statute that is represented in this Act by 
3text that is not yet or no longer in effect (for example, a 
4Section represented by multiple versions), the use of that 
5text does not accelerate or delay the taking effect of (i) the 
6changes made by this Act or (ii) provisions derived from any 
7other Public Act.

8 Section 999-97. Severability. The provisions of this Act 
9are severable under Section 1.31 of the Statute on Statutes.