104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1177

Introduced , by Rep. Rita Mayfield

SYNOPSIS AS INTRODUCED:

`35 ILCS 105/3-10`
`35 ILCS 105/9`
`35 ILCS 110/3-10`
`35 ILCS 110/9`
`35 ILCS 115/3-10`
`35 ILCS 115/9`	`from Ch. 120, par. 439.109`
`35 ILCS 120/2-10`
`35 ILCS 120/3`

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Imposes a 3.75% surcharge on firearms and firearm component parts. Sets forth provisions concerning the distribution of the proceeds. Effective immediately.

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A BILL FOR

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1 AN ACT concerning revenue.

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

3 represented in the General Assembly:

4 Section 5. The Use Tax Act is amended by changing Sections

5 3-10 and 9 as follows:

6 (35 ILCS 105/3-10)

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

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

9 either the selling price or the fair market value, if any, of

10 the tangible personal property, which, on and after January 1,

11 2025, includes leases of tangible personal property. In all

12 cases where property functionally used or consumed is the same

13 as the property that was purchased at retail, then the tax is

14 imposed on the selling price of the property. In all cases

15 where property functionally used or consumed is a by-product

16 or waste product that has been refined, manufactured, or

17 produced from property purchased at retail, then the tax is

18 imposed on the lower of the fair market value, if any, of the

19 specific property so used in this State or on the selling price

20 of the property purchased at retail. For purposes of this

21 Section "fair market value" means the price at which property

22 would change hands between a willing buyer and a willing

23 seller, neither being under any compulsion to buy or sell and

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1 both having reasonable knowledge of the relevant facts. The

2 fair market value shall be established by Illinois sales by

3 the taxpayer of the same property as that functionally used or

4 consumed, or if there are no such sales by the taxpayer, then

5 comparable sales or purchases of property of like kind and

6 character in Illinois.

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

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

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

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

11 Beginning on August 6, 2010 through August 15, 2010, and

12 beginning again on August 5, 2022 through August 14, 2022,

13 with respect to sales tax holiday items as defined in Section

14 3-6 of this Act, the tax is imposed at the rate of 1.25%.

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

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

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

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

19 before July 1, 2017, (iii) 100% of the proceeds of sales made

20 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of

21 the proceeds of sales made on or after January 1, 2024 and on

22 or before December 31, 2028, and (v) 100% of the proceeds of

23 sales made after December 31, 2028. If, at any time, however,

24 the tax under this Act on sales of gasohol is imposed at the

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

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

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1 With respect to mid-range ethanol blends, the tax imposed

2 by this Act applies to (i) 80% of the proceeds of sales made on

3 or after January 1, 2024 and on or before December 31, 2028 and

4 (ii) 100% of the proceeds of sales made thereafter. If, at any

5 time, however, the tax under this Act on sales of mid-range

6 ethanol blends is imposed at the rate of 1.25%, then the tax

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

8 mid-range ethanol blends made during that time.

9 With respect to majority blended ethanol fuel, the tax

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

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

12 2028 but applies to 100% of the proceeds of sales made

13 thereafter.

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

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

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

17 2003 and on or before December 31, 2018 and (ii) 100% of the

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

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

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

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

22 3-5.1. If, at any time, however, the tax under this Act on

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

24 10% biodiesel is imposed at the rate of 1.25%, then the tax

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

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

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1 biodiesel made during that time.

2 With respect to biodiesel and biodiesel blends with more

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

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

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

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

7 taxation of biodiesel, renewable diesel, and biodiesel blends

8 shall be as provided in Section 3-5.1.

9 Until July 1, 2022 and from July 1, 2023 through December

10 31, 2025, with respect to food for human consumption that is to

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

12 alcoholic beverages, food consisting of or infused with adult

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

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

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

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

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

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

19 drinks, and food that has been prepared for immediate

20 consumption), the tax is imposed at the rate of 0%. On and

21 after January 1, 2026, food for human consumption that is to be

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

23 alcoholic beverages, food consisting of or infused with adult

24 use cannabis, soft drinks, candy, and food that has been

25 prepared for immediate consumption) is exempt from the tax

26 imposed by this Act.

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1 With respect to prescription and nonprescription

2 medicines, drugs, medical appliances, products classified as

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

4 Administration that are used for cancer treatment pursuant to

5 a prescription, as well as any accessories and components

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

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

8 disability, and insulin, blood sugar testing materials,

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

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

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

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

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

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

15 other preparations commonly known as soft drinks of whatever

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

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

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

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

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

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

22 Notwithstanding any other provisions of this Act,

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

24 beverages that contain natural or artificial sweeteners. "Soft

25 drinks" does not include beverages that contain milk or milk

26 products, soy, rice or similar milk substitutes, or greater

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1 than 50% of vegetable or fruit juice by volume.

2 Until August 1, 2009, and notwithstanding any other

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

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

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

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

7 regardless of the location of the vending machine. Beginning

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

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

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

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

12 products that are dispensed hot from a vending machine,

13 regardless of the location of the vending machine.

14 Notwithstanding any other provisions of this Act,

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

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

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

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

19 sweeteners in combination with chocolate, fruits, nuts or

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

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

22 flour or requires refrigeration.

23 Notwithstanding any other provisions of this Act,

24 beginning September 1, 2009, "nonprescription medicines and

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

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

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

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

3 lotions and screens, unless those products are available by

4 prescription only, regardless of whether the products meet the

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

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

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

8 as required by 21 CFR 201.66. The "over-the-counter-drug"

9 label includes:

10 (A) a "Drug Facts" panel; or

11 (B) a statement of the "active ingredient(s)" with a

12 list of those ingredients contained in the compound,

13 substance or preparation.

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

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

16 drugs" includes medical cannabis purchased from a registered

17 dispensing organization under the Compassionate Use of Medical

18 Cannabis Program Act.

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

20 cannabis subject to tax under the Cannabis Cultivation

21 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

22 and does not include cannabis subject to tax under the

23 Compassionate Use of Medical Cannabis Program Act.

24 If the property that is purchased at retail from a

25 retailer is acquired outside Illinois and used outside

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

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

2 computed shall be reduced by an amount that represents a

3 reasonable allowance for depreciation for the period of prior

4 out-of-state use. No depreciation is allowed in cases where

5 the tax under this Act is imposed on lease receipts.

6 Beginning January 1, 2026, in addition to all other rates

7 of tax imposed under this Act, a surcharge of 3.75% is imposed

8 on the selling price of (i) each firearm purchased in the State

9 and (ii) each firearm component part that is purchased in the

10 State and sold separately from the firearm. "Firearm" has the

11 meaning ascribed to that term in Section 1.1 of the Firearm

12 Owners Identification Card Act.

13 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,

14 Section 20-5, eff. 4-19-22; 102-700, Article 60, Section

15 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.

16 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,

17 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)

18 (35 ILCS 105/9)

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

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

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

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

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

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

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

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

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

3 reimburse the retailer for expenses incurred in collecting the

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

5 the tax and supplying data to the Department on request.

6 Beginning with returns due on or after January 1, 2025, the

7 discount allowed in this Section, the Retailers' Occupation

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

9 Tax Act, including any local tax administered by the

10 Department and reported on the same return, shall not exceed

11 $1,000 per month in the aggregate for returns other than

12 transaction returns filed during the month. When determining

13 the discount allowed under this Section, retailers shall

14 include the amount of tax that would have been due at the 6.25%

15 rate but for the 1.25% rate imposed on sales tax holiday items

16 under Public Act 102-700. The discount under this Section is

17 not allowed for the 1.25% portion of taxes paid on aviation

18 fuel that is subject to the revenue use requirements of 49

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

20 discount allowed under this Section, retailers shall include

21 the amount of tax that would have been due at the 1% rate but

22 for the 0% rate imposed under Public Act 102-700. In the case

23 of retailers who report and pay the tax on a transaction by

24 transaction basis, as provided in this Section, such discount

25 shall be taken with each such tax remittance instead of when

26 such retailer files his periodic return, but, beginning with

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1 returns due on or after January 1, 2025, the discount allowed

2 under this Section and the Retailers' Occupation Tax Act,

3 including any local tax administered by the Department and

4 reported on the same transaction return, shall not exceed

5 $1,000 per month for all transaction returns filed during the

6 month. The discount allowed under this Section is allowed only

7 for returns that are filed in the manner required by this Act.

8 The Department may disallow the discount for retailers whose

9 certificate of registration is revoked at the time the return

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

11 certificate of registration has become final. A retailer need

12 not remit that part of any tax collected by him to the extent

13 that he is required to remit and does remit the tax imposed by

14 the Retailers' Occupation Tax Act, with respect to the sale of

15 the same property.

16 Where such tangible personal property is sold under a

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

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

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

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

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

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

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

24 the selling price actually received during such tax return

25 period.

26 In the case of leases, except as otherwise provided in

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1 this Act, the lessor, in collecting the tax, may collect for

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

3 the selling price actually received during such tax return

4 period.

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

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

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

8 be filed on forms prescribed by the Department and shall

9 furnish such information as the Department may reasonably

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

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

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

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

14 and food that has been prepared for immediate consumption)

15 which were received during the preceding calendar month,

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

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

18 102-700. The return shall also include the amount of tax that

19 would have been due on food for human consumption that is to be

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

21 alcoholic beverages, food consisting of or infused with adult

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

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

24 Public Act 102-700.

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

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

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

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

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

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

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

6 respect to retailers whose annual gross receipts average

7 $20,000 or more, all returns required to be filed pursuant to

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

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

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

11 electronically. Retailers who demonstrate that they do not

12 have access to the Internet or demonstrate hardship in filing

13 electronically may petition the Department to waive the

14 electronic filing requirement.

15 The Department may require returns to be filed on a

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

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

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

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

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

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

22 1. The name of the seller;

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

24 which he engages in the business of selling tangible

25 personal property at retail in this State;

26 3. The total amount of taxable receipts received by

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1 him during the preceding calendar month from sales of

2 tangible personal property by him during such preceding

3 calendar month, including receipts from charge and time

4 sales, but less all deductions allowed by law;

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

6 Act;

7 5. The amount of tax due;

8 5-5. The signature of the taxpayer; and

9 6. Such other reasonable information as the Department

10 may require.

11 Each retailer required or authorized to collect the tax

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

13 State during the preceding calendar month shall, instead of

14 reporting and paying tax on aviation fuel as otherwise

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

16 aviation fuel tax return. The requirements related to the

17 return shall be as otherwise provided in this Section.

18 Notwithstanding any other provisions of this Act to the

19 contrary, retailers collecting tax on aviation fuel shall file

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

21 tax payments by electronic means in the manner and form

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

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

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

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

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

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1 due on the return shall be deemed assessed.

2 Notwithstanding any other provision of this Act to the

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

4 cannabis tax returns and shall make all cannabis tax payments

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

6 Department.

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

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

9 payments required by rules of the Department by electronic

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

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

12 make all payments required by rules of the Department by

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

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

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

16 Department by electronic funds transfer. Beginning October 1,

17 2000, a taxpayer who has an annual tax liability of $200,000 or

18 more shall make all payments required by rules of the

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

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

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

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

23 immediately preceding calendar year. The term "average monthly

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

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

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

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1 immediately preceding calendar year divided by 12. Beginning

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

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

4 Department of Revenue Law shall make all payments required by

5 rules of the Department by electronic funds transfer.

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

7 Department shall notify all taxpayers required to make

8 payments by electronic funds transfer. All taxpayers required

9 to make payments by electronic funds transfer shall make those

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

11 Any taxpayer not required to make payments by electronic

12 funds transfer may make payments by electronic funds transfer

13 with the permission of the Department.

14 All taxpayers required to make payment by electronic funds

15 transfer and any taxpayers authorized to voluntarily make

16 payments by electronic funds transfer shall make those

17 payments in the manner authorized by the Department.

18 The Department shall adopt such rules as are necessary to

19 effectuate a program of electronic funds transfer and the

20 requirements of this Section.

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

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

23 Occupation Tax Act, the Service Occupation Tax Act, the

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

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

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

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1 following the month during which such tax liability is

2 incurred and shall make payments to the Department on or

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

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

5 2000, if the taxpayer's average monthly tax liability to the

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

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

8 $20,000 or more during the preceding 4 complete calendar

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

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

11 during which such tax liability is incurred and shall make

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

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

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

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

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

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

18 average monthly liability of the taxpayer to the Department

19 for the preceding 4 complete calendar quarters (excluding the

20 month of highest liability and the month of lowest liability

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

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

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

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

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

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

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1 which such tax liability is incurred begins on or after

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

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

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

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

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

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

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

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

10 25% of the taxpayer's liability for the same calendar month of

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

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

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

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

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

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

17 liability for the quarter monthly reporting period. The amount

18 of such quarter monthly payments shall be credited against the

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

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

21 the making of quarter monthly payments to the Department shall

22 continue until such taxpayer's average monthly liability to

23 the Department during the preceding 4 complete calendar

24 quarters (excluding the month of highest liability and the

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

26 taxpayer's average monthly liability to the Department as

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1 computed for each calendar quarter of the 4 preceding complete

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

3 taxpayer can show the Department that a substantial change in

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

5 to anticipate that his average monthly tax liability for the

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

7 threshold stated above, then such taxpayer may petition the

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

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

10 the making of quarter monthly payments to the Department shall

11 continue until such taxpayer's average monthly liability to

12 the Department during the preceding 4 complete calendar

13 quarters (excluding the month of highest liability and the

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

15 taxpayer's average monthly liability to the Department as

16 computed for each calendar quarter of the 4 preceding complete

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

18 taxpayer can show the Department that a substantial change in

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

20 to anticipate that his average monthly tax liability for the

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

22 threshold stated above, then such taxpayer may petition the

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

24 The Department shall change such taxpayer's reporting status

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

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

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

2 1.25% in Public Act 102-700 on sales tax holiday items had not

3 occurred. For quarter monthly payments due on or after July 1,

4 2023 and through June 30, 2024, "25% of the taxpayer's

5 liability for the same calendar month of the preceding year"

6 shall be determined as if the rate reduction to 1.25% in Public

7 Act 102-700 on sales tax holiday items had not occurred.

8 Quarter monthly payment status shall be determined under this

9 paragraph as if the rate reduction to 0% in Public Act 102-700

10 on food for human consumption that is to be consumed off the

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

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

13 drinks, and food that has been prepared for immediate

14 consumption) had not occurred. For quarter monthly payments

15 due under this paragraph on or after July 1, 2023 and through

16 June 30, 2024, "25% of the taxpayer's liability for the same

17 calendar month of the preceding year" shall be determined as

18 if the rate reduction to 0% in Public Act 102-700 had not

19 occurred. If any such quarter monthly payment is not paid at

20 the time or in the amount required by this Section, then the

21 taxpayer shall be liable for penalties and interest on the

22 difference between the minimum amount due and the amount of

23 such quarter monthly payment actually and timely paid, except

24 insofar as the taxpayer has previously made payments for that

25 month to the Department in excess of the minimum payments

26 previously due as provided in this Section. The Department

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1 shall make reasonable rules and regulations to govern the

2 quarter monthly payment amount and quarter monthly payment

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

4 basis.

5 If any such payment provided for in this Section exceeds

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

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

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

9 the Department shall issue to the taxpayer a credit memorandum

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

11 memorandum may be submitted by the taxpayer to the Department

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

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

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

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

16 in accordance with reasonable rules and regulations to be

17 prescribed by the Department, except that if such excess

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

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

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

21 the taxpayer may credit such excess payment against tax

22 liability subsequently to be remitted by the taxpayer to the

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

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

25 accordance with reasonable rules and regulations prescribed by

26 the Department. If the Department subsequently determines that

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

2 taxpayer, the taxpayer's vendor's discount shall be reduced,

3 if necessary, to reflect the difference between the credit

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

5 for penalties and interest on such difference.

6 If the retailer is otherwise required to file a monthly

7 return and if the retailer's average monthly tax liability to

8 the Department does not exceed $200, the Department may

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

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

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

12 April, May and June of a given year being due by July 20 of

13 such year; with the return for July, August and September of a

14 given year being due by October 20 of such year, and with the

15 return for October, November and December of a given year

16 being due by January 20 of the following year.

17 If the retailer is otherwise required to file a monthly or

18 quarterly return and if the retailer's average monthly tax

19 liability to the Department does not exceed $50, the

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

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

22 of the following year.

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

24 substance, shall be subject to the same requirements as

25 monthly returns.

26 Notwithstanding any other provision in this Act concerning

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1 the time within which a retailer may file his return, in the

2 case of any retailer who ceases to engage in a kind of business

3 which makes him responsible for filing returns under this Act,

4 such retailer shall file a final return under this Act with the

5 Department not more than one month after discontinuing such

6 business.

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

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

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

10 Section, every retailer selling this kind of tangible personal

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

12 prescribed and supplied by the Department, a separate return

13 for each such item of tangible personal property which the

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

15 retailer of aircraft, watercraft, motor vehicles or trailers

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

17 trailer to another aircraft, watercraft, motor vehicle or

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

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

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

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

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

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

24 vehicles or trailers involved in that transaction to the

25 Department on the same uniform invoice-transaction reporting

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

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

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

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

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

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

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

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

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

9 retailer for the purpose of resale is, notwithstanding any

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

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

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

13 or trailers transferred for resale during a month to the

14 Department on the same uniform invoice-transaction reporting

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

16 month in which the transfer takes place. Notwithstanding any

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

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

19 manner and form as required by the Department.

20 The transaction reporting return in the case of motor

21 vehicles or trailers that are required to be registered with

22 an agency of this State, shall be the same document as the

23 Uniform Invoice referred to in Section 5-402 of the Illinois

24 Vehicle Code and must show the name and address of the seller;

25 the name and address of the purchaser; the amount of the

26 selling price including the amount allowed by the retailer for

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1 traded-in property, if any; the amount allowed by the retailer

2 for the traded-in tangible personal property, if any, to the

3 extent to which Section 2 of this Act allows an exemption for

4 the value of traded-in property; the balance payable after

5 deducting such trade-in allowance from the total selling

6 price; the amount of tax due from the retailer with respect to

7 such transaction; the amount of tax collected from the

8 purchaser by the retailer on such transaction (or satisfactory

9 evidence that such tax is not due in that particular instance,

10 if that is claimed to be the fact); the place and date of the

11 sale; a sufficient identification of the property sold; such

12 other information as is required in Section 5-402 of the

13 Illinois Vehicle Code, and such other information as the

14 Department may reasonably require.

15 The transaction reporting return in the case of watercraft

16 and aircraft must show the name and address of the seller; the

17 name and address of the purchaser; the amount of the selling

18 price including the amount allowed by the retailer for

19 traded-in property, if any; the amount allowed by the retailer

20 for the traded-in tangible personal property, if any, to the

21 extent to which Section 2 of this Act allows an exemption for

22 the value of traded-in property; the balance payable after

23 deducting such trade-in allowance from the total selling

24 price; the amount of tax due from the retailer with respect to

25 such transaction; the amount of tax collected from the

26 purchaser by the retailer on such transaction (or satisfactory

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1 evidence that such tax is not due in that particular instance,

2 if that is claimed to be the fact); the place and date of the

3 sale, a sufficient identification of the property sold, and

4 such other information as the Department may reasonably

5 require.

6 Such transaction reporting return shall be filed not later

7 than 20 days after the date of delivery of the item that is

8 being sold, but may be filed by the retailer at any time sooner

9 than that if he chooses to do so. The transaction reporting

10 return and tax remittance or proof of exemption from the tax

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

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

13 officer with whom, the tangible personal property must be

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

15 if the Department and such agency or State officer determine

16 that this procedure will expedite the processing of

17 applications for title or registration.

18 With each such transaction reporting return, the retailer

19 shall remit the proper amount of tax due (or shall submit

20 satisfactory evidence that the sale is not taxable if that is

21 the case), to the Department or its agents, whereupon the

22 Department shall issue, in the purchaser's name, a tax receipt

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

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

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

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

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

2 support of such purchaser's application for an Illinois

3 certificate or other evidence of title or registration to such

4 tangible personal property.

5 No retailer's failure or refusal to remit tax under this

6 Act precludes a user, who has paid the proper tax to the

7 retailer, from obtaining his certificate of title or other

8 evidence of title or registration (if titling or registration

9 is required) upon satisfying the Department that such user has

10 paid the proper tax (if tax is due) to the retailer. The

11 Department shall adopt appropriate rules to carry out the

12 mandate of this paragraph.

13 If the user who would otherwise pay tax to the retailer

14 wants the transaction reporting return filed and the payment

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

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

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

18 of such delay by the retailer, and may (upon the Department

19 being satisfied of the truth of such certification) transmit

20 the information required by the transaction reporting return

21 and the remittance for tax or proof of exemption directly to

22 the Department and obtain his tax receipt or exemption

23 determination, in which event the transaction reporting return

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

25 credited by the Department to the proper retailer's account

26 with the Department, but without the vendor's discount

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

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

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

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

5 Where a retailer collects the tax with respect to the

6 selling price of tangible personal property which he sells and

7 the purchaser thereafter returns such tangible personal

8 property and the retailer refunds the selling price thereof to

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

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

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

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

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

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

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

16 to be deducted was previously remitted to the Department by

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

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

19 deduction under this Act upon refunding such tax to the

20 purchaser.

21 Any retailer filing a return under this Section shall also

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

23 covered by such return upon the selling price of tangible

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

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

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

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

2 return.

3 If experience indicates such action to be practicable, the

4 Department may prescribe and furnish a combination or joint

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

6 returns hereunder and also under the Retailers' Occupation Tax

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

8 Acts on the one form.

9 Where the retailer has more than one business registered

10 with the Department under separate registration under this

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

12 single return covering all such registered businesses, but

13 shall file separate returns for each such registered business.

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

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

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

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

18 imposed under this Act.

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

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

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

22 general rate on the selling price of tangible personal

23 property which is purchased outside Illinois at retail from a

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

25 State's government.

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

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

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

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

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

5 personal property which is purchased outside Illinois at

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

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

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

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

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

11 Beginning February 1, 2026, each month the Department

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

13 the net revenue realized for the preceding month from the

14 3.75% surcharge imposed on the selling price of firearms and

15 firearm component parts.

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

17 month the Department shall pay into the State Aviation Program

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

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

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

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

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

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

24 pay moneys into the State Aviation Program Fund and the

25 Aviation Fuels Sales Tax Refund Fund under this Act for so long

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

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

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

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

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

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

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

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

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

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

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

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

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

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

14 on the selling price of tangible personal property which is

15 purchased outside Illinois at retail from a retailer and which

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

17 government.

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

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

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

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

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

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

24 are now taxed at 6.25%.

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

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

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

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

3 process of sorbent injection as used to comply with the

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

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

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

7 $2,000,000 in any fiscal year.

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

9 pay into the Underground Storage Tank Fund from the proceeds

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

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

12 amount equal to the average monthly deficit in the Underground

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

14 by the Illinois Environmental Protection Agency, but the total

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

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

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

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

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

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

21 the average monthly revenues deposited into the fund,

22 excluding payments made pursuant to this paragraph.

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

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

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

26 Occupation Tax Act, each month the Department shall deposit

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1 $500,000 into the State Crime Laboratory Fund.

2 Of the remainder of the moneys received by the Department

3 pursuant to this Act, (a) 1.75% thereof shall be paid into the

4 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

5 and after July 1, 1989, 3.8% thereof shall be paid into the

6 Build Illinois Fund; provided, however, that if in any fiscal

7 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

8 may be, of the moneys received by the Department and required

9 to be paid into the Build Illinois Fund pursuant to Section 3

10 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

11 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

12 Service Occupation Tax Act, such Acts being hereinafter called

13 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

14 may be, of moneys being hereinafter called the "Tax Act

15 Amount", and (2) the amount transferred to the Build Illinois

16 Fund from the State and Local Sales Tax Reform Fund shall be

17 less than the Annual Specified Amount (as defined in Section 3

18 of the Retailers' Occupation Tax Act), an amount equal to the

19 difference shall be immediately paid into the Build Illinois

20 Fund from other moneys received by the Department pursuant to

21 the Tax Acts; and further provided, that if on the last

22 business day of any month the sum of (1) the Tax Act Amount

23 required to be deposited into the Build Illinois Bond Account

24 in the Build Illinois Fund during such month and (2) the amount

25 transferred during such month to the Build Illinois Fund from

26 the State and Local Sales Tax Reform Fund shall have been less

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1 than 1/12 of the Annual Specified Amount, an amount equal to

2 the difference shall be immediately paid into the Build

3 Illinois Fund from other moneys received by the Department

4 pursuant to the Tax Acts; and, further provided, that in no

5 event shall the payments required under the preceding proviso

6 result in aggregate payments into the Build Illinois Fund

7 pursuant to this clause (b) for any fiscal year in excess of

8 the greater of (i) the Tax Act Amount or (ii) the Annual

9 Specified Amount for such fiscal year; and, further provided,

10 that the amounts payable into the Build Illinois Fund under

11 this clause (b) shall be payable only until such time as the

12 aggregate amount on deposit under each trust indenture

13 securing Bonds issued and outstanding pursuant to the Build

14 Illinois Bond Act is sufficient, taking into account any

15 future investment income, to fully provide, in accordance with

16 such indenture, for the defeasance of or the payment of the

17 principal of, premium, if any, and interest on the Bonds

18 secured by such indenture and on any Bonds expected to be

19 issued thereafter and all fees and costs payable with respect

20 thereto, all as certified by the Director of the Bureau of the

21 Budget (now Governor's Office of Management and Budget). If on

22 the last business day of any month in which Bonds are

23 outstanding pursuant to the Build Illinois Bond Act, the

24 aggregate of the moneys deposited in the Build Illinois Bond

25 Account in the Build Illinois Fund in such month shall be less

26 than the amount required to be transferred in such month from

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1 the Build Illinois Bond Account to the Build Illinois Bond

2 Retirement and Interest Fund pursuant to Section 13 of the

3 Build Illinois Bond Act, an amount equal to such deficiency

4 shall be immediately paid from other moneys received by the

5 Department pursuant to the Tax Acts to the Build Illinois

6 Fund; provided, however, that any amounts paid to the Build

7 Illinois Fund in any fiscal year pursuant to this sentence

8 shall be deemed to constitute payments pursuant to clause (b)

9 of the preceding sentence and shall reduce the amount

10 otherwise payable for such fiscal year pursuant to clause (b)

11 of the preceding sentence. The moneys received by the

12 Department pursuant to this Act and required to be deposited

13 into the Build Illinois Fund are subject to the pledge, claim

14 and charge set forth in Section 12 of the Build Illinois Bond

15 Act.

16 Subject to payment of amounts into the Build Illinois Fund

17 as provided in the preceding paragraph or in any amendment

18 thereto hereafter enacted, the following specified monthly

19 installment of the amount requested in the certificate of the

20 Chairman of the Metropolitan Pier and Exposition Authority

21 provided under Section 8.25f of the State Finance Act, but not

22 in excess of the sums designated as "Total Deposit", shall be

23 deposited in the aggregate from collections under Section 9 of

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

25 9 of the Service Occupation Tax Act, and Section 3 of the

26 Retailers' Occupation Tax Act into the McCormick Place

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1 Expansion Project Fund in the specified fiscal years.

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

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1	`2017`	`199,000,000`
2	`2018`	`210,000,000`
3	`2019`	`221,000,000`
4	`2020`	`233,000,000`
5	`2021`	`300,000,000`
6	`2022`	`300,000,000`
7	`2023`	`300,000,000`
8	`2024`	`300,000,000`
9	`2025`	`300,000,000`
10	`2026`	`300,000,000`
11	`2027`	`375,000,000`
12	`2028`	`375,000,000`
13	`2029`	`375,000,000`
14	`2030`	`375,000,000`
15	`2031`	`375,000,000`
16	`2032`	`375,000,000`
17	`2033`	`375,000,000`
18	`2034`	`375,000,000`
19	`2035`	`375,000,000`
20	`2036`	`450,000,000`
21	`and`
22	`each fiscal year`
23	`thereafter that bonds`
24	`are outstanding under`
25	`Section 13.2 of the`
26	`Metropolitan Pier and`

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1		`Exposition Authority Act,`
2		`but not after fiscal year 2060.`

3 Beginning July 20, 1993 and in each month of each fiscal

4 year thereafter, one-eighth of the amount requested in the

5 certificate of the Chairman of the Metropolitan Pier and

6 Exposition Authority for that fiscal year, less the amount

7 deposited into the McCormick Place Expansion Project Fund by

8 the State Treasurer in the respective month under subsection

9 (g) of Section 13 of the Metropolitan Pier and Exposition

10 Authority Act, plus cumulative deficiencies in the deposits

11 required under this Section for previous months and years,

12 shall be deposited into the McCormick Place Expansion Project

13 Fund, until the full amount requested for the fiscal year, but

14 not in excess of the amount specified above as "Total

15 Deposit", has been deposited.

16 Subject to payment of amounts into the Capital Projects

17 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

18 and the McCormick Place Expansion Project Fund pursuant to the

19 preceding paragraphs or in any amendments thereto hereafter

20 enacted, for aviation fuel sold on or after December 1, 2019,

21 the Department shall each month deposit into the Aviation Fuel

22 Sales Tax Refund Fund an amount estimated by the Department to

23 be required for refunds of the 80% portion of the tax on

24 aviation fuel under this Act. The Department shall only

25 deposit moneys into the Aviation Fuel Sales Tax Refund Fund

26 under this paragraph for so long as the revenue use

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1 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

2 binding on the State.

3 Subject to payment of amounts into the Build Illinois Fund

4 and the McCormick Place Expansion Project Fund pursuant to the

5 preceding paragraphs or in any amendments thereto hereafter

6 enacted, beginning July 1, 1993 and ending on September 30,

7 2013, the Department shall each month pay into the Illinois

8 Tax Increment Fund 0.27% of 80% of the net revenue realized for

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

10 price of tangible personal property.

11 Subject to payment of amounts into the Build Illinois

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

13 Tax Increment Fund, and the Energy Infrastructure Fund

14 pursuant to the preceding paragraphs or in any amendments to

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

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

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

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

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

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

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

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

23 fund additional auditors and compliance personnel at the

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

25 the cash receipts collected during the preceding fiscal year

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

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1 the Service Use Tax Act, the Service Occupation Tax Act, the

2 Retailers' Occupation Tax Act, and associated local occupation

3 and use taxes administered by the Department.

4 Subject to payments of amounts into the Build Illinois

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

6 Tax Increment Fund, and the Tax Compliance and Administration

7 Fund as provided in this Section, beginning on July 1, 2018 the

8 Department shall pay each month into the Downstate Public

9 Transportation Fund the moneys required to be so paid under

10 Section 2-3 of the Downstate Public Transportation Act.

11 Subject to successful execution and delivery of a

12 public-private agreement between the public agency and private

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

14 2023, of the remainder of the moneys received by the

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

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

17 deposit the following specified deposits in the aggregate from

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

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

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

21 for distribution consistent with the Public-Private

22 Partnership for Civic and Transit Infrastructure Project Act.

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

24 required to be deposited into the Civic and Transit

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

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

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1 Partnership for Civic and Transit Infrastructure Project Act.

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

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

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

5 Partnership for Civic and Transit Infrastructure Project Act.

6 Fiscal Year............................Total Deposit

7 2024....................................$200,000,000

8 2025....................................$206,000,000

9 2026....................................$212,200,000

10 2027....................................$218,500,000

11 2028....................................$225,100,000

12 2029....................................$288,700,000

13 2030....................................$298,900,000

14 2031....................................$309,300,000

15 2032....................................$320,100,000

16 2033....................................$331,200,000

17 2034....................................$341,200,000

18 2035....................................$351,400,000

19 2036....................................$361,900,000

20 2037....................................$372,800,000

21 2038....................................$384,000,000

22 2039....................................$395,500,000

23 2040....................................$407,400,000

24 2041....................................$419,600,000

25 2042....................................$432,200,000

26 2043....................................$445,100,000

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

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

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

4 Expansion Project Fund, the Illinois Tax Increment Fund, and

5 the Tax Compliance and Administration Fund as provided in this

6 Section, the Department shall pay each month into the Road

7 Fund the amount estimated to represent 16% of the net revenue

8 realized from the taxes imposed on motor fuel and gasohol.

9 Beginning July 1, 2022 and until July 1, 2023, subject to the

10 payment of amounts into the State and Local Sales Tax Reform

11 Fund, the Build Illinois Fund, the McCormick Place Expansion

12 Project Fund, the Illinois Tax Increment Fund, and the Tax

13 Compliance and Administration Fund as provided in this

14 Section, the Department shall pay each month into the Road

15 Fund the amount estimated to represent 32% of the net revenue

16 realized from the taxes imposed on motor fuel and gasohol.

17 Beginning July 1, 2023 and until July 1, 2024, subject to the

18 payment of amounts into the State and Local Sales Tax Reform

19 Fund, the Build Illinois Fund, the McCormick Place Expansion

20 Project Fund, the Illinois Tax Increment Fund, and the Tax

21 Compliance and Administration Fund as provided in this

22 Section, the Department shall pay each month into the Road

23 Fund the amount estimated to represent 48% of the net revenue

24 realized from the taxes imposed on motor fuel and gasohol.

25 Beginning July 1, 2024 and until July 1, 2025, subject to the

26 payment of amounts into the State and Local Sales Tax Reform

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1 Fund, the Build Illinois Fund, the McCormick Place Expansion

2 Project Fund, the Illinois Tax Increment Fund, and the Tax

3 Compliance and Administration Fund as provided in this

4 Section, the Department shall pay each month into the Road

5 Fund the amount estimated to represent 64% of the net revenue

6 realized from the taxes imposed on motor fuel and gasohol.

7 Beginning on July 1, 2025, subject to the payment of amounts

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

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

10 Illinois Tax Increment Fund, and the Tax Compliance and

11 Administration Fund as provided in this Section, the

12 Department shall pay each month into the Road Fund the amount

13 estimated to represent 80% of the net revenue realized from

14 the taxes imposed on motor fuel and gasohol. As used in this

15 paragraph "motor fuel" has the meaning given to that term in

16 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the

17 meaning given to that term in Section 3-40 of this Act.

18 Of the remainder of the moneys received by the Department

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

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

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

22 the monthly transfer from the General Revenue Fund in

23 accordance with Section 8a of the State Finance Act.

24 As soon as possible after the first day of each month, upon

25 certification of the Department of Revenue, the Comptroller

26 shall order transferred and the Treasurer shall transfer from

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1 the General Revenue Fund to the Motor Fuel Tax Fund an amount

2 equal to 1.7% of 80% of the net revenue realized under this Act

3 for the second preceding month. Beginning April 1, 2000, this

4 transfer is no longer required and shall not be made.

5 Net revenue realized for a month shall be the revenue

6 collected by the State pursuant to this Act, less the amount

7 paid out during that month as refunds to taxpayers for

8 overpayment of liability.

9 For greater simplicity of administration, manufacturers,

10 importers and wholesalers whose products are sold at retail in

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

12 assume the responsibility for accounting and paying to the

13 Department all tax accruing under this Act with respect to

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

15 written objection to the Department to this arrangement.

16 (Source: P.A. 102-700, Article 60, Section 60-15, eff.

17 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;

18 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.

19 7-28-23; 103-592, Article 75, Section 75-5, eff. 1-1-25;

20 103-592, Article 110, Section 110-5, eff. 6-7-24; revised

21 11-26-24.)

22 Section 10. The Service Use Tax Act is amended by changing

23 Sections 3-10 and 9 as follows:

24 (35 ILCS 110/3-10)

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

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

3 the selling price of tangible personal property transferred,

4 including, on and after January 1, 2025, transferred by lease,

5 as an incident to the sale of service, but, for the purpose of

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

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

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

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

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

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

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

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

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

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

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

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

18 July 1, 2017, (iii) 100% of the selling price of property

19 transferred as an incident to the sale of service after July 1,

20 2017 and before January 1, 2024, (iv) 90% of the selling price

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

22 on or after January 1, 2024 and on or before December 31, 2028,

23 and (v) 100% of the selling price of property transferred as an

24 incident to the sale of service after December 31, 2028. If, at

25 any time, however, the tax under this Act on sales of gasohol,

26 as defined in the Use Tax Act, is imposed at the rate of 1.25%,

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1 then the tax imposed by this Act applies to 100% of the

2 proceeds of sales of gasohol made during that time.

3 With respect to mid-range ethanol blends, as defined in

4 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act

5 applies to (i) 80% of the selling price of property

6 transferred as an incident to the sale of service on or after

7 January 1, 2024 and on or before December 31, 2028 and (ii)

8 100% of the selling price of property transferred as an

9 incident to the sale of service after December 31, 2028. If, at

10 any time, however, the tax under this Act on sales of mid-range

11 ethanol blends is imposed at the rate of 1.25%, then the tax

12 imposed by this Act applies to 100% of the selling price of

13 mid-range ethanol blends transferred as an incident to the

14 sale of service during that time.

15 With respect to majority blended ethanol fuel, as defined

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

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

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

19 December 31, 2028 but applies to 100% of the selling price

20 thereafter.

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

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

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

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

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

26 2018 and (ii) 100% of the proceeds of the selling price after

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

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

3 taxation of biodiesel, renewable diesel, and biodiesel blends

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

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

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

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

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

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

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

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

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

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

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

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

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

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

18 the taxation of biodiesel, renewable diesel, and biodiesel

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

20 Act.

21 At the election of any registered serviceman made for each

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

23 cost price of tangible personal property transferred as an

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

25 the case of servicemen transferring prescription drugs or

26 servicemen engaged in graphic arts production, of the

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1 aggregate annual total gross receipts from all sales of

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

3 serviceman's cost price of the tangible personal property

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

5 Until July 1, 2022 and from July 1, 2023 through December

6 31, 2025, the tax shall be imposed at the rate of 1% on food

7 prepared for immediate consumption and transferred incident to

8 a sale of service subject to this Act or the Service Occupation

9 Tax Act by an entity licensed under the Hospital Licensing

10 Act, the Nursing Home Care Act, the Assisted Living and Shared

11 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

12 Specialized Mental Health Rehabilitation Act of 2013, or the

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

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

15 and from July 1, 2023 through December 31, 2025, the tax shall

16 also be imposed at the rate of 1% on food for human consumption

17 that is to be consumed off the premises where it is sold (other

18 than alcoholic beverages, food consisting of or infused with

19 adult use cannabis, soft drinks, and food that has been

20 prepared for immediate consumption and is not otherwise

21 included in this paragraph).

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

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

24 immediate consumption and transferred incident to a sale of

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

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

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

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

3 Specialized Mental Health Rehabilitation Act of 2013, or the

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

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

6 2022 and until July 1, 2023, the tax shall also be imposed at

7 the rate of 0% on food for human consumption that is to be

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

9 alcoholic beverages, food consisting of or infused with adult

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

11 immediate consumption and is not otherwise included in this

12 paragraph).

13 On and ~~an~~ after January 1, 2026, food prepared for

14 immediate consumption and transferred incident to a sale of

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

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

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

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

19 Specialized Mental Health Rehabilitation Act of 2013, or the

20 Child Care Act of 1969, or by an entity that holds a permit

21 issued pursuant to the Life Care Facilities Act is exempt from

22 the tax under this Act. On and after January 1, 2026, food for

23 human consumption that is to be consumed off the premises

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

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

26 candy, and food that has been prepared for immediate

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1 consumption and is not otherwise included in this paragraph)

2 is exempt from the tax under this Act.

3 The tax shall be imposed at the rate of 1% on prescription

4 and nonprescription medicines, drugs, medical appliances,

5 products classified as Class III medical devices by the United

6 States Food and Drug Administration that are used for cancer

7 treatment pursuant to a prescription, as well as any

8 accessories and components related to those devices,

9 modifications to a motor vehicle for the purpose of rendering

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

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

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

13 1, 2009: the term "soft drinks" means any complete, finished,

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

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

16 vegetable juice, carbonated water, and all other preparations

17 commonly known as soft drinks of whatever kind or description

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

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

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

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

22 Pasteurized Milk and Milk Products Act, or drinks containing

23 50% or more natural fruit or vegetable juice.

24 Notwithstanding any other provisions of this Act,

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

26 beverages that contain natural or artificial sweeteners. "Soft

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1 drinks" does not include beverages that contain milk or milk

2 products, soy, rice or similar milk substitutes, or greater

3 than 50% of vegetable or fruit juice by volume.

4 Until August 1, 2009, and notwithstanding any other

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

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

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

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

9 regardless of the location of the vending machine. Beginning

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

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

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

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

14 products that are dispensed hot from a vending machine,

15 regardless of the location of the vending machine.

16 Notwithstanding any other provisions of this Act,

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

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

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

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

21 sweeteners in combination with chocolate, fruits, nuts or

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

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

24 flour or requires refrigeration.

25 Notwithstanding any other provisions of this Act,

26 beginning September 1, 2009, "nonprescription medicines and

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

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

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

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

5 lotions and screens, unless those products are available by

6 prescription only, regardless of whether the products meet the

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

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

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

10 as required by 21 CFR 201.66. The "over-the-counter-drug"

11 label includes:

12 (A) a "Drug Facts" panel; or

13 (B) a statement of the "active ingredient(s)" with a

14 list of those ingredients contained in the compound,

15 substance or preparation.

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

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

18 drugs" includes medical cannabis purchased from a registered

19 dispensing organization under the Compassionate Use of Medical

20 Cannabis Program Act.

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

22 cannabis subject to tax under the Cannabis Cultivation

23 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

24 and does not include cannabis subject to tax under the

25 Compassionate Use of Medical Cannabis Program Act.

26 If the property that is acquired from a serviceman is

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1 acquired outside Illinois and used outside Illinois before

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

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

4 shall be reduced by an amount that represents a reasonable

5 allowance for depreciation for the period of prior

6 out-of-state use. No depreciation is allowed in cases where

7 the tax under this Act is imposed on lease receipts.

8 Beginning January 1, 2026, in addition to all other rates

9 of tax imposed under this Act, a surcharge of 3.75% is imposed

10 on the selling price of (i) each firearm purchased in the State

11 and (ii) each firearm component part that is purchased in the

12 State and sold separately from the firearm. "Firearm" has the

13 meaning ascribed to that term in Section 1.1 of the Firearm

14 Owners Identification Card Act.

15 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;

16 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,

17 Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;

18 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.

19 8-5-24; revised 11-26-24.)

20 (35 ILCS 110/9)

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

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

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

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

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

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

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

3 serviceman for expenses incurred in collecting the tax,

4 keeping records, preparing and filing returns, remitting the

5 tax, and supplying data to the Department on request.

6 Beginning with returns due on or after January 1, 2025, the

7 vendor's discount allowed in this Section, the Retailers'

8 Occupation Tax Act, the Service Occupation Tax Act, and the

9 Use Tax Act, including any local tax administered by the

10 Department and reported on the same return, shall not exceed

11 $1,000 per month in the aggregate. When determining the

12 discount allowed under this Section, servicemen shall include

13 the amount of tax that would have been due at the 1% rate but

14 for the 0% rate imposed under Public Act 102-700 ~~this~~

15 ~~amendatory Act of the 102nd General Assembly~~. The discount

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

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

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

19 discount allowed under this Section is allowed only for

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

21 Department may disallow the discount for servicemen whose

22 certificate of registration is revoked at the time the return

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

24 certificate of registration has become final. A serviceman

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

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

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

2 service involving the incidental transfer by him of the same

3 property.

4 Except as provided hereinafter in this Section, on or

5 before the twentieth day of each calendar month, such

6 serviceman shall file a return for the preceding calendar

7 month in accordance with reasonable Rules and Regulations to

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

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

10 information as the Department may reasonably require. The

11 return shall include the gross receipts which were received

12 during the preceding calendar month or quarter on the

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

14 0% rate imposed under Public Act 102-700 ~~this amendatory Act~~

15 ~~of the 102nd General Assembly~~: (i) food for human consumption

16 that is to be consumed off the premises where it is sold (other

17 than alcoholic beverages, food consisting of or infused with

18 adult use cannabis, soft drinks, and food that has been

19 prepared for immediate consumption); and (ii) food prepared

20 for immediate consumption and transferred incident to a sale

21 of service subject to this Act or the Service Occupation Tax

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

23 the Nursing Home Care Act, the Assisted Living and Shared

24 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

25 Specialized Mental Health Rehabilitation Act of 2013, or the

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

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1 pursuant to the Life Care Facilities Act. The return shall

2 also include the amount of tax that would have been due on the

3 items listed in the previous sentence but for the 0% rate

4 imposed under Public Act 102-700 ~~this amendatory Act of the~~

5 ~~102nd General Assembly~~.

6 In the case of leases, except as otherwise provided in

7 this Act, the lessor, in collecting the tax, may collect for

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

9 the selling price actually received during such tax return

10 period.

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

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

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

14 filed electronically. Servicemen who demonstrate that they do

15 not have access to the Internet or demonstrate hardship in

16 filing electronically may petition the Department to waive the

17 electronic filing requirement.

18 The Department may require returns to be filed on a

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

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

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

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

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

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

25 1. The name of the seller;

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

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1 which he engages in business as a serviceman in this

2 State;

3 3. The total amount of taxable receipts received by

4 him during the preceding calendar month, including

5 receipts from charge and time sales, but less all

6 deductions allowed by law;

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

8 Act;

9 5. The amount of tax due;

10 5-5. The signature of the taxpayer; and

11 6. Such other reasonable information as the Department

12 may require.

13 Each serviceman required or authorized to collect the tax

14 imposed by this Act on aviation fuel transferred as an

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

16 preceding calendar month shall, instead of reporting and

17 paying tax on aviation fuel as otherwise required by this

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

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

20 otherwise provided in this Section. Notwithstanding any other

21 provisions of this Act to the contrary, servicemen collecting

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

23 and shall make all aviation fuel tax payments by electronic

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

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

26 aviation gasoline.

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

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

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

4 due on the return shall be deemed assessed.

5 Notwithstanding any other provision of this Act to the

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

7 cannabis tax returns and shall make all cannabis tax payments

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

9 Department.

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

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

12 payments required by rules of the Department by electronic

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

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

15 make all payments required by rules of the Department by

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

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

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

19 Department by electronic funds transfer. Beginning October 1,

20 2000, a taxpayer who has an annual tax liability of $200,000 or

21 more shall make all payments required by rules of the

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

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

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

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

26 immediately preceding calendar year. The term "average monthly

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

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

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

4 immediately preceding calendar year divided by 12. Beginning

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

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

7 Department of Revenue Law shall make all payments required by

8 rules of the Department by electronic funds transfer.

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

10 Department shall notify all taxpayers required to make

11 payments by electronic funds transfer. All taxpayers required

12 to make payments by electronic funds transfer shall make those

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

14 Any taxpayer not required to make payments by electronic

15 funds transfer may make payments by electronic funds transfer

16 with the permission of the Department.

17 All taxpayers required to make payment by electronic funds

18 transfer and any taxpayers authorized to voluntarily make

19 payments by electronic funds transfer shall make those

20 payments in the manner authorized by the Department.

21 The Department shall adopt such rules as are necessary to

22 effectuate a program of electronic funds transfer and the

23 requirements of this Section.

24 If the serviceman is otherwise required to file a monthly

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

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

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

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

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

4 April, May, and June of a given year being due by July 20 of

5 such year; with the return for July, August, and September of a

6 given year being due by October 20 of such year, and with the

7 return for October, November, and December of a given year

8 being due by January 20 of the following year.

9 If the serviceman is otherwise required to file a monthly

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

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

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

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

14 of the following year.

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

16 substance, shall be subject to the same requirements as

17 monthly returns.

18 Notwithstanding any other provision in this Act concerning

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

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

21 business which makes him responsible for filing returns under

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

23 Act with the Department not more than one ~~1~~ month after

24 discontinuing such business.

25 Where a serviceman collects the tax with respect to the

26 selling price of property which he sells and the purchaser

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1 thereafter returns such property and the serviceman refunds

2 the selling price thereof to the purchaser, such serviceman

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

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

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

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

7 purchaser from any other Service Use Tax, Service Occupation

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

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

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

11 be deducted shall previously have been remitted to the

12 Department by such serviceman. If the serviceman shall not

13 previously have remitted the amount of such tax to the

14 Department, he shall be entitled to no deduction hereunder

15 upon refunding such tax to the purchaser.

16 Any serviceman filing a return hereunder shall also

17 include the total tax upon the selling price of tangible

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

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

20 such tax to the Department when filing such return.

21 If experience indicates such action to be practicable, the

22 Department may prescribe and furnish a combination or joint

23 return which will enable servicemen, who are required to file

24 returns hereunder and also under the Service Occupation Tax

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

26 Acts on the one form.

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1 Where the serviceman has more than one business registered

2 with the Department under separate registration hereunder,

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

4 single return covering all such registered businesses, but

5 shall file separate returns for each such registered business.

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

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

8 the State treasury ~~Treasury~~, the net revenue realized for the

9 preceding month from the 1% tax imposed under this Act.

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

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

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

13 general rate on transfers of tangible personal property, other

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

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

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

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

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

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

20 47133 are binding on the State.

21 Beginning February 1, 2026, each month the Department

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

23 the net revenue realized for the preceding month from the

24 3.75% surcharge imposed on the selling price of firearms and

25 firearm component parts.

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

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1 month the Department shall pay into the State Aviation Program

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

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

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

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

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

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

8 pay moneys into the State Aviation Program Fund and the

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

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

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

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

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

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

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

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

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

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

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

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

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

22 are now taxed at 6.25%.

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

24 pay into the Underground Storage Tank Fund from the proceeds

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

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

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1 amount equal to the average monthly deficit in the Underground

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

3 by the Illinois Environmental Protection Agency, but the total

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

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

6 Retailers' Occupation Tax Act shall not exceed $18,000,000 in

7 any State fiscal year. As used in this paragraph, the "average

8 monthly deficit" shall be equal to the difference between the

9 average monthly claims for payment by the fund and the average

10 monthly revenues deposited into the fund, excluding payments

11 made pursuant to this paragraph.

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

13 received by the Department under the Use Tax Act, this Act, the

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

15 Act, each month the Department shall deposit $500,000 into the

16 State Crime Laboratory Fund.

17 Of the remainder of the moneys received by the Department

18 pursuant to this Act, (a) 1.75% thereof shall be paid into the

19 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

20 and after July 1, 1989, 3.8% thereof shall be paid into the

21 Build Illinois Fund; provided, however, that if in any fiscal

22 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

23 may be, of the moneys received by the Department and required

24 to be paid into the Build Illinois Fund pursuant to Section 3

25 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

26 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

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1 Service Occupation Tax Act, such Acts being hereinafter called

2 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

3 may be, of moneys being hereinafter called the "Tax Act

4 Amount", and (2) the amount transferred to the Build Illinois

5 Fund from the State and Local Sales Tax Reform Fund shall be

6 less than the Annual Specified Amount (as defined in Section 3

7 of the Retailers' Occupation Tax Act), an amount equal to the

8 difference shall be immediately paid into the Build Illinois

9 Fund from other moneys received by the Department pursuant to

10 the Tax Acts; and further provided, that if on the last

11 business day of any month the sum of (1) the Tax Act Amount

12 required to be deposited into the Build Illinois Bond Account

13 in the Build Illinois Fund during such month and (2) the amount

14 transferred during such month to the Build Illinois Fund from

15 the State and Local Sales Tax Reform Fund shall have been less

16 than 1/12 of the Annual Specified Amount, an amount equal to

17 the difference shall be immediately paid into the Build

18 Illinois Fund from other moneys received by the Department

19 pursuant to the Tax Acts; and, further provided, that in no

20 event shall the payments required under the preceding proviso

21 result in aggregate payments into the Build Illinois Fund

22 pursuant to this clause (b) for any fiscal year in excess of

23 the greater of (i) the Tax Act Amount or (ii) the Annual

24 Specified Amount for such fiscal year; and, further provided,

25 that the amounts payable into the Build Illinois Fund under

26 this clause (b) shall be payable only until such time as the

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1 aggregate amount on deposit under each trust indenture

2 securing Bonds issued and outstanding pursuant to the Build

3 Illinois Bond Act is sufficient, taking into account any

4 future investment income, to fully provide, in accordance with

5 such indenture, for the defeasance of or the payment of the

6 principal of, premium, if any, and interest on the Bonds

7 secured by such indenture and on any Bonds expected to be

8 issued thereafter and all fees and costs payable with respect

9 thereto, all as certified by the Director of the Bureau of the

10 Budget (now Governor's Office of Management and Budget). If on

11 the last business day of any month in which Bonds are

12 outstanding pursuant to the Build Illinois Bond Act, the

13 aggregate of the moneys deposited in the Build Illinois Bond

14 Account in the Build Illinois Fund in such month shall be less

15 than the amount required to be transferred in such month from

16 the Build Illinois Bond Account to the Build Illinois Bond

17 Retirement and Interest Fund pursuant to Section 13 of the

18 Build Illinois Bond Act, an amount equal to such deficiency

19 shall be immediately paid from other moneys received by the

20 Department pursuant to the Tax Acts to the Build Illinois

21 Fund; provided, however, that any amounts paid to the Build

22 Illinois Fund in any fiscal year pursuant to this sentence

23 shall be deemed to constitute payments pursuant to clause (b)

24 of the preceding sentence and shall reduce the amount

25 otherwise payable for such fiscal year pursuant to clause (b)

26 of the preceding sentence. The moneys received by the

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1 Department pursuant to this Act and required to be deposited

2 into the Build Illinois Fund are subject to the pledge, claim

3 and charge set forth in Section 12 of the Build Illinois Bond

4 Act.

5 Subject to payment of amounts into the Build Illinois Fund

6 as provided in the preceding paragraph or in any amendment

7 thereto hereafter enacted, the following specified monthly

8 installment of the amount requested in the certificate of the

9 Chairman of the Metropolitan Pier and Exposition Authority

10 provided under Section 8.25f of the State Finance Act, but not

11 in excess of the sums designated as "Total Deposit", shall be

12 deposited in the aggregate from collections under Section 9 of

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

14 9 of the Service Occupation Tax Act, and Section 3 of the

15 Retailers' Occupation Tax Act into the McCormick Place

16 Expansion Project Fund in the specified fiscal years.

17	`Fiscal Year`	`Total Deposit`
18	`1993`	`$0`
19	`1994`	`53,000,000`
20	`1995`	`58,000,000`
21	`1996`	`61,000,000`
22	`1997`	`64,000,000`
23	`1998`	`68,000,000`
24	`1999`	`71,000,000`
25	`2000`	`75,000,000`

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1	`2001`	`80,000,000`
2	`2002`	`93,000,000`
3	`2003`	`99,000,000`
4	`2004`	`103,000,000`
5	`2005`	`108,000,000`
6	`2006`	`113,000,000`
7	`2007`	`119,000,000`
8	`2008`	`126,000,000`
9	`2009`	`132,000,000`
10	`2010`	`139,000,000`
11	`2011`	`146,000,000`
12	`2012`	`153,000,000`
13	`2013`	`161,000,000`
14	`2014`	`170,000,000`
15	`2015`	`179,000,000`
16	`2016`	`189,000,000`
17	`2017`	`199,000,000`
18	`2018`	`210,000,000`
19	`2019`	`221,000,000`
20	`2020`	`233,000,000`
21	`2021`	`300,000,000`
22	`2022`	`300,000,000`
23	`2023`	`300,000,000`
24	`2024`	`300,000,000`
25	`2025`	`300,000,000`
26	`2026`	`300,000,000`

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1	`2027`	`375,000,000`
2	`2028`	`375,000,000`
3	`2029`	`375,000,000`
4	`2030`	`375,000,000`
5	`2031`	`375,000,000`
6	`2032`	`375,000,000`
7	`2033`	`375,000,000`
8	`2034`	`375,000,000`
9	`2035`	`375,000,000`
10	`2036`	`450,000,000`
11	`and`
12	`each fiscal year`
13	`thereafter that bonds`
14	`are outstanding under`
15	`Section 13.2 of the`
16	`Metropolitan Pier and`
17	`Exposition Authority Act,`
18	`but not after fiscal year 2060.`

19 Beginning July 20, 1993 and in each month of each fiscal

20 year thereafter, one-eighth of the amount requested in the

21 certificate of the Chairman of the Metropolitan Pier and

22 Exposition Authority for that fiscal year, less the amount

23 deposited into the McCormick Place Expansion Project Fund by

24 the State Treasurer in the respective month under subsection

25 (g) of Section 13 of the Metropolitan Pier and Exposition

26 Authority Act, plus cumulative deficiencies in the deposits

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1 required under this Section for previous months and years,

2 shall be deposited into the McCormick Place Expansion Project

3 Fund, until the full amount requested for the fiscal year, but

4 not in excess of the amount specified above as "Total

5 Deposit", has been deposited.

6 Subject to payment of amounts into the Capital Projects

7 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

8 and the McCormick Place Expansion Project Fund pursuant to the

9 preceding paragraphs or in any amendments thereto hereafter

10 enacted, for aviation fuel sold on or after December 1, 2019,

11 the Department shall each month deposit into the Aviation Fuel

12 Sales Tax Refund Fund an amount estimated by the Department to

13 be required for refunds of the 80% portion of the tax on

14 aviation fuel under this Act. The Department shall only

15 deposit moneys into the Aviation Fuel Sales Tax Refund Fund

16 under this paragraph for so long as the revenue use

17 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

18 binding on the State.

19 Subject to payment of amounts into the Build Illinois Fund

20 and the McCormick Place Expansion Project Fund pursuant to the

21 preceding paragraphs or in any amendments thereto hereafter

22 enacted, beginning July 1, 1993 and ending on September 30,

23 2013, the Department shall each month pay into the Illinois

24 Tax Increment Fund 0.27% of 80% of the net revenue realized for

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

26 price of tangible personal property.

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1 Subject to payment of amounts into the Build Illinois

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

3 Tax Increment Fund, pursuant to the preceding paragraphs or in

4 any amendments to this Section hereafter enacted, beginning on

5 the first day of the first calendar month to occur on or after

6 August 26, 2014 (the effective date of Public Act 98-1098),

7 each month, from the collections made under Section 9 of the

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

9 the Service Occupation Tax Act, and Section 3 of the

10 Retailers' Occupation Tax Act, the Department shall pay into

11 the Tax Compliance and Administration Fund, to be used,

12 subject to appropriation, to fund additional auditors and

13 compliance personnel at the Department of Revenue, an amount

14 equal to 1/12 of 5% of 80% of the cash receipts collected

15 during the preceding fiscal year by the Audit Bureau of the

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

17 Service Occupation Tax Act, the Retailers' Occupation Tax Act,

18 and associated local occupation and use taxes administered by

19 the Department.

20 Subject to payments of amounts into the Build Illinois

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

22 Tax Increment Fund, and the Tax Compliance and Administration

23 Fund as provided in this Section, beginning on July 1, 2018 the

24 Department shall pay each month into the Downstate Public

25 Transportation Fund the moneys required to be so paid under

26 Section 2-3 of the Downstate Public Transportation Act.

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1 Subject to successful execution and delivery of a

2 public-private agreement between the public agency and private

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

4 2023, of the remainder of the moneys received by the

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

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

7 deposit the following specified deposits in the aggregate from

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

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

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

11 for distribution consistent with the Public-Private

12 Partnership for Civic and Transit Infrastructure Project Act.

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

14 required to be deposited into the Civic and Transit

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

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

17 Partnership for Civic and Transit Infrastructure Project Act.

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

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

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

21 Partnership for Civic and Transit Infrastructure Project Act.

22 Fiscal Year............................Total Deposit

23 2024....................................$200,000,000

24 2025....................................$206,000,000

25 2026....................................$212,200,000

26 2027....................................$218,500,000

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1 2028....................................$225,100,000

2 2029....................................$288,700,000

3 2030....................................$298,900,000

4 2031....................................$309,300,000

5 2032....................................$320,100,000

6 2033....................................$331,200,000

7 2034....................................$341,200,000

8 2035....................................$351,400,000

9 2036....................................$361,900,000

10 2037....................................$372,800,000

11 2038....................................$384,000,000

12 2039....................................$395,500,000

13 2040....................................$407,400,000

14 2041....................................$419,600,000

15 2042....................................$432,200,000

16 2043....................................$445,100,000

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

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

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

20 Expansion Project Fund, the Energy Infrastructure Fund, and

21 the Tax Compliance and Administration Fund as provided in this

22 Section, the Department shall pay each month into the Road

23 Fund the amount estimated to represent 16% of the net revenue

24 realized from the taxes imposed on motor fuel and gasohol.

25 Beginning July 1, 2022 and until July 1, 2023, subject to the

26 payment of amounts into the State and Local Sales Tax Reform

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1 Fund, the Build Illinois Fund, the McCormick Place Expansion

2 Project Fund, the Illinois Tax Increment Fund, and the Tax

3 Compliance and Administration Fund as provided in this

4 Section, the Department shall pay each month into the Road

5 Fund the amount estimated to represent 32% of the net revenue

6 realized from the taxes imposed on motor fuel and gasohol.

7 Beginning July 1, 2023 and until July 1, 2024, subject to the

8 payment of amounts into the State and Local Sales Tax Reform

9 Fund, the Build Illinois Fund, the McCormick Place Expansion

10 Project Fund, the Illinois Tax Increment Fund, and the Tax

11 Compliance and Administration Fund as provided in this

12 Section, the Department shall pay each month into the Road

13 Fund the amount estimated to represent 48% of the net revenue

14 realized from the taxes imposed on motor fuel and gasohol.

15 Beginning July 1, 2024 and until July 1, 2025, subject to the

16 payment of amounts into the State and Local Sales Tax Reform

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

18 Project Fund, the Illinois Tax Increment Fund, and the Tax

19 Compliance and Administration Fund as provided in this

20 Section, the Department shall pay each month into the Road

21 Fund the amount estimated to represent 64% of the net revenue

22 realized from the taxes imposed on motor fuel and gasohol.

23 Beginning on July 1, 2025, subject to the payment of amounts

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

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

26 Illinois Tax Increment Fund, and the Tax Compliance and

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1 Administration Fund as provided in this Section, the

2 Department shall pay each month into the Road Fund the amount

3 estimated to represent 80% of the net revenue realized from

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

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

6 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the

7 meaning given to that term in Section 3-40 of the Use Tax Act.

8 Of the remainder of the moneys received by the Department

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

10 General Revenue Fund of the State treasury ~~Treasury~~ and 25%

11 shall be reserved in a special account and used only for the

12 transfer to the Common School Fund as part of the monthly

13 transfer from the General Revenue Fund in accordance with

14 Section 8a of the State Finance Act.

15 As soon as possible after the first day of each month, upon

16 certification of the Department of Revenue, the Comptroller

17 shall order transferred and the Treasurer shall transfer from

18 the General Revenue Fund to the Motor Fuel Tax Fund an amount

19 equal to 1.7% of 80% of the net revenue realized under this Act

20 for the second preceding month. Beginning April 1, 2000, this

21 transfer is no longer required and shall not be made.

22 Net revenue realized for a month shall be the revenue

23 collected by the State pursuant to this Act, less the amount

24 paid out during that month as refunds to taxpayers for

25 overpayment of liability.

26 (Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23;

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1 103-592, Article 75, Section 75-10, eff. 1-1-25; 103-592,

2 Article 110, Section 110-10, eff. 6-7-24; revised 11-26-24.)

3 Section 15. The Service Occupation Tax Act is amended by

4 changing Sections 3-10 and 9 as follows:

5 (35 ILCS 115/3-10)

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

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

8 the "selling price", as defined in Section 2 of the Service Use

9 Tax Act, of the tangible personal property, including, on and

10 after January 1, 2025, tangible personal property transferred

11 by lease. For the purpose of computing this tax, in no event

12 shall the "selling price" be less than the cost price to the

13 serviceman of the tangible personal property transferred. The

14 selling price of each item of tangible personal property

15 transferred as an incident of a sale of service may be shown as

16 a distinct and separate item on the serviceman's billing to

17 the service customer. If the selling price is not so shown, the

18 selling price of the tangible personal property is deemed to

19 be 50% of the serviceman's entire billing to the service

20 customer. When, however, a serviceman contracts to design,

21 develop, and produce special order machinery or equipment, the

22 tax imposed by this Act shall be based on the serviceman's cost

23 price of the tangible personal property transferred incident

24 to the completion of the contract.

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

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

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

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

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

6 tax imposed by this Act shall apply to (i) 70% of the cost

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

8 service on or after January 1, 1990, and before July 1, 2003,

9 (ii) 80% of the selling price of property transferred as an

10 incident to the sale of service on or after July 1, 2003 and on

11 or before July 1, 2017, (iii) 100% of the selling price of

12 property transferred as an incident to the sale of service

13 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of

14 the selling price of property transferred as an incident to

15 the sale of service on or after January 1, 2024 and on or

16 before December 31, 2028, and (v) 100% of the selling price of

17 property transferred as an incident to the sale of service

18 after December 31, 2028. If, at any time, however, the tax

19 under this Act on sales of gasohol, as defined in the Use Tax

20 Act, is imposed at the rate of 1.25%, then the tax imposed by

21 this Act applies to 100% of the proceeds of sales of gasohol

22 made during that time.

23 With respect to mid-range ethanol blends, as defined in

24 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act

25 applies to (i) 80% of the selling price of property

26 transferred as an incident to the sale of service on or after

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1 January 1, 2024 and on or before December 31, 2028 and (ii)

2 100% of the selling price of property transferred as an

3 incident to the sale of service after December 31, 2028. If, at

4 any time, however, the tax under this Act on sales of mid-range

5 ethanol blends is imposed at the rate of 1.25%, then the tax

6 imposed by this Act applies to 100% of the selling price of

7 mid-range ethanol blends transferred as an incident to the

8 sale of service during that time.

9 With respect to majority blended ethanol fuel, as defined

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

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

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

13 December 31, 2028 but applies to 100% of the selling price

14 thereafter.

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

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

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

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

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

20 2018 and (ii) 100% of the proceeds of the selling price after

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

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

23 taxation of biodiesel, renewable diesel, and biodiesel blends

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

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

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

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

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

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

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

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

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

7 than 10% but no more than 99% biodiesel material, the tax

8 imposed by this Act does not apply to the proceeds of the

9 selling price of property transferred as an incident to the

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

11 December 31, 2023. On and after January 1, 2024 and on or

12 before December 31, 2030, the taxation of biodiesel, renewable

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

14 3-5.1 of the Use Tax Act.

15 At the election of any registered serviceman made for each

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

17 cost price of tangible personal property transferred as an

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

19 the case of servicemen transferring prescription drugs or

20 servicemen engaged in graphic arts production, of the

21 aggregate annual total gross receipts from all sales of

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

23 serviceman's cost price of the tangible personal property

24 transferred incident to the sale of those services.

25 Until July 1, 2022 and from July 1, 2023 through December

26 31, 2025, the tax shall be imposed at the rate of 1% on food

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1 prepared for immediate consumption and transferred incident to

2 a sale of service subject to this Act or the Service Use Tax

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

4 the Nursing Home Care Act, the Assisted Living and Shared

5 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

6 Specialized Mental Health Rehabilitation Act of 2013, or the

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

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

9 and from July 1, 2023 through December 31, 2025, the tax shall

10 also be imposed at the rate of 1% on food for human consumption

11 that is to be consumed off the premises where it is sold (other

12 than alcoholic beverages, food consisting of or infused with

13 adult use cannabis, soft drinks, and food that has been

14 prepared for immediate consumption and is not otherwise

15 included in this paragraph).

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

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

18 immediate consumption and transferred incident to a sale of

19 service subject to this Act or the Service Use Tax Act by an

20 entity licensed under the Hospital Licensing Act, the Nursing

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

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

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

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

25 to the Life Care Facilities Act. Beginning July 1, 2022 and

26 until July 1, 2023, the tax shall also be imposed at the rate

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1 of 0% on food for human consumption that is to be consumed off

2 the premises where it is sold (other than alcoholic beverages,

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

4 drinks, and food that has been prepared for immediate

5 consumption and is not otherwise included in this paragraph).

6 On and after January 1, 2026, food prepared for immediate

7 consumption and transferred incident to a sale of service

8 subject to this Act or the Service Use Tax Act by an entity

9 licensed under the Hospital Licensing Act, the Nursing Home

10 Care Act, the Assisted Living and Shared Housing Act, the

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

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

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

14 to the Life Care Facilities Act is exempt from the tax imposed

15 by this Act. On and after January 1, 2026, food for human

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

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

18 infused with adult use cannabis, soft drinks, candy, and food

19 that has been prepared for immediate consumption and is not

20 otherwise included in this paragraph) is exempt from the tax

21 imposed by this Act.

22 The tax shall be imposed at the rate of 1% on prescription

23 and nonprescription medicines, drugs, medical appliances,

24 products classified as Class III medical devices by the United

25 States Food and Drug Administration that are used for cancer

26 treatment pursuant to a prescription, as well as any

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1 accessories and components related to those devices,

2 modifications to a motor vehicle for the purpose of rendering

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

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

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

6 1, 2009: the term "soft drinks" means any complete, finished,

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

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

9 vegetable juice, carbonated water, and all other preparations

10 commonly known as soft drinks of whatever kind or description

11 that are contained in any closed or sealed can, carton, or

12 container, regardless of size; but "soft drinks" does not

13 include coffee, tea, non-carbonated water, infant formula,

14 milk or milk products as defined in the Grade A Pasteurized

15 Milk and Milk Products Act, or drinks containing 50% or more

16 natural fruit or vegetable juice.

17 Notwithstanding any other provisions of this Act,

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

19 beverages that contain natural or artificial sweeteners. "Soft

20 drinks" does not include beverages that contain milk or milk

21 products, soy, rice or similar milk substitutes, or greater

22 than 50% of vegetable or fruit juice by volume.

23 Until August 1, 2009, and notwithstanding any other

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

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

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

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

2 regardless of the location of the vending machine. Beginning

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

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

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

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

7 products that are dispensed hot from a vending machine,

8 regardless of the location of the vending machine.

9 Notwithstanding any other provisions of this Act,

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

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

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

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

14 sweeteners in combination with chocolate, fruits, nuts or

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

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

17 flour or requires refrigeration.

18 Notwithstanding any other provisions of this Act,

19 beginning September 1, 2009, "nonprescription medicines and

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

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

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

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

24 lotions and screens, unless those products are available by

25 prescription only, regardless of whether the products meet the

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

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

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

3 as required by 21 CFR 201.66. The "over-the-counter-drug"

4 label includes:

5 (A) a "Drug Facts" panel; or

6 (B) a statement of the "active ingredient(s)" with a

7 list of those ingredients contained in the compound,

8 substance or preparation.

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

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

11 drugs" includes medical cannabis purchased from a registered

12 dispensing organization under the Compassionate Use of Medical

13 Cannabis Program Act.

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

15 cannabis subject to tax under the Cannabis Cultivation

16 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

17 and does not include cannabis subject to tax under the

18 Compassionate Use of Medical Cannabis Program Act.

19 Beginning January 1, 2026, in addition to all other rates

20 of tax imposed under this Act, a surcharge of 3.75% is imposed

21 on the selling price of (i) each firearm purchased in the State

22 and (ii) each firearm component part that is purchased in the

23 State and sold separately from the firearm. "Firearm" has the

24 meaning ascribed to that term in Section 1.1 of the Firearm

25 Owners Identification Card Act.

26 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;

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1 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,

2 Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;

3 103-154, eff. 6-30-23; 103-592, eff. 1-1-25; 103-781, eff.

4 8-5-24; revised 11-26-24.)

5 (35 ILCS 115/9) (from Ch. 120, par. 439.109)

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

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

8 of such tax at the time when he is required to file his return

9 for the period during which such tax was collectible, less a

10 discount of 2.1% prior to January 1, 1990, and 1.75% on and

11 after January 1, 1990, or $5 per calendar year, whichever is

12 greater, which is allowed to reimburse the serviceman for

13 expenses incurred in collecting the tax, keeping records,

14 preparing and filing returns, remitting the tax, and supplying

15 data to the Department on request. Beginning with returns due

16 on or after January 1, 2025, the vendor's discount allowed in

17 this Section, the Retailers' Occupation Tax Act, the Use Tax

18 Act, and the Service Use Tax Act, including any local tax

19 administered by the Department and reported on the same

20 return, shall not exceed $1,000 per month in the aggregate.

21 When determining the discount allowed under this Section,

22 servicemen shall include the amount of tax that would have

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

24 Public Act 102-700. The discount under this Section is not

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

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

2 47107(b) and 49 U.S.C. 47133. The discount allowed under this

3 Section is allowed only for returns that are filed in the

4 manner required by this Act. The Department may disallow the

5 discount for servicemen whose certificate of registration is

6 revoked at the time the return is filed, but only if the

7 Department's decision to revoke the certificate of

8 registration has become final.

9 Where such tangible personal property is sold under a

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

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

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

13 filed, the serviceman, in collecting the tax may collect, for

14 each tax return period, only the tax applicable to the part of

15 the selling price actually received during such tax return

16 period.

17 Except as provided hereinafter in this Section, on or

18 before the twentieth day of each calendar month, such

19 serviceman shall file a return for the preceding calendar

20 month in accordance with reasonable rules and regulations to

21 be promulgated by the Department of Revenue. Such return shall

22 be filed on a form prescribed by the Department and shall

23 contain such information as the Department may reasonably

24 require. The return shall include the gross receipts which

25 were received during the preceding calendar month or quarter

26 on the following items upon which tax would have been due but

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1 for the 0% rate imposed under Public Act 102-700: (i) food for

2 human consumption that is to be consumed off the premises

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

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

5 and food that has been prepared for immediate consumption);

6 and (ii) food prepared for immediate consumption and

7 transferred incident to a sale of service subject to this Act

8 or the Service Use Tax Act by an entity licensed under the

9 Hospital Licensing Act, the Nursing Home Care Act, the

10 Assisted Living and Shared Housing Act, the ID/DD Community

11 Care Act, the MC/DD Act, the Specialized Mental Health

12 Rehabilitation Act of 2013, or the Child Care Act of 1969, or

13 an entity that holds a permit issued pursuant to the Life Care

14 Facilities Act. The return shall also include the amount of

15 tax that would have been due on the items listed in the

16 previous sentence but for the 0% rate imposed under Public Act

17 102-700.

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

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

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

21 filed electronically. Servicemen who demonstrate that they do

22 not have access to the Internet or demonstrate hardship in

23 filing electronically may petition the Department to waive the

24 electronic filing requirement.

25 The Department may require returns to be filed on a

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

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

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

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

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

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

6 1. The name of the seller;

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

8 which he engages in business as a serviceman in this

9 State;

10 3. The total amount of taxable receipts received by

11 him during the preceding calendar month, including

12 receipts from charge and time sales, but less all

13 deductions allowed by law;

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

15 Act;

16 5. The amount of tax due;

17 5-5. The signature of the taxpayer; and

18 6. Such other reasonable information as the Department

19 may require.

20 Each serviceman required or authorized to collect the tax

21 herein imposed on aviation fuel acquired as an incident to the

22 purchase of a service in this State during the preceding

23 calendar month shall, instead of reporting and paying tax as

24 otherwise required by this Section, report and pay such tax on

25 a separate aviation fuel tax return. The requirements related

26 to the return shall be as otherwise provided in this Section.

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1 Notwithstanding any other provisions of this Act to the

2 contrary, servicemen transferring aviation fuel incident to

3 sales of service shall file all aviation fuel tax returns and

4 shall make all aviation fuel tax payments by electronic means

5 in the manner and form required by the Department. For

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

7 aviation gasoline.

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

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

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

11 due on the return shall be deemed assessed.

12 Notwithstanding any other provision of this Act to the

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

14 cannabis tax returns and shall make all cannabis tax payments

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

16 Department.

17 Prior to October 1, 2003, and on and after September 1,

18 2004 a serviceman may accept a Manufacturer's Purchase Credit

19 certification from a purchaser in satisfaction of Service Use

20 Tax as provided in Section 3-70 of the Service Use Tax Act if

21 the purchaser provides the appropriate documentation as

22 required by Section 3-70 of the Service Use Tax Act. A

23 Manufacturer's Purchase Credit certification, accepted prior

24 to October 1, 2003 or on or after September 1, 2004 by a

25 serviceman as provided in Section 3-70 of the Service Use Tax

26 Act, may be used by that serviceman to satisfy Service

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1 Occupation Tax liability in the amount claimed in the

2 certification, not to exceed 6.25% of the receipts subject to

3 tax from a qualifying purchase. A Manufacturer's Purchase

4 Credit reported on any original or amended return filed under

5 this Act after October 20, 2003 for reporting periods prior to

6 September 1, 2004 shall be disallowed. Manufacturer's Purchase

7 Credit reported on annual returns due on or after January 1,

8 2005 will be disallowed for periods prior to September 1,

9 2004. No Manufacturer's Purchase Credit may be used after

10 September 30, 2003 through August 31, 2004 to satisfy any tax

11 liability imposed under this Act, including any audit

12 liability.

13 Beginning on July 1, 2023 and through December 31, 2032, a

14 serviceman may accept a Sustainable Aviation Fuel Purchase

15 Credit certification from an air common carrier-purchaser in

16 satisfaction of Service Use Tax as provided in Section 3-72 of

17 the Service Use Tax Act if the purchaser provides the

18 appropriate documentation as required by Section 3-72 of the

19 Service Use Tax Act. A Sustainable Aviation Fuel Purchase

20 Credit certification accepted by a serviceman in accordance

21 with this paragraph may be used by that serviceman to satisfy

22 service occupation tax liability (but not in satisfaction of

23 penalty or interest) in the amount claimed in the

24 certification, not to exceed 6.25% of the receipts subject to

25 tax from a sale of aviation fuel. In addition, for a sale of

26 aviation fuel to qualify to earn the Sustainable Aviation Fuel

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1 Purchase Credit, servicemen must retain in their books and

2 records a certification from the producer of the aviation fuel

3 that the aviation fuel sold by the serviceman and for which a

4 sustainable aviation fuel purchase credit was earned meets the

5 definition of sustainable aviation fuel under Section 3-72 of

6 the Service Use Tax Act. The documentation must include detail

7 sufficient for the Department to determine the number of

8 gallons of sustainable aviation fuel sold.

9 If the serviceman's average monthly tax liability to the

10 Department does not exceed $200, the Department may authorize

11 his returns to be filed on a quarter annual basis, with the

12 return for January, February, and March of a given year being

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

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

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

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

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

18 January 20 of the following year.

19 If the serviceman's average monthly tax liability to the

20 Department does not exceed $50, the Department may authorize

21 his returns to be filed on an annual basis, with the return for

22 a given year being due by January 20 of the following year.

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

24 substance, shall be subject to the same requirements as

25 monthly returns.

26 Notwithstanding any other provision in this Act concerning

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

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

3 business which makes him responsible for filing returns under

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

5 Act with the Department not more than one month after

6 discontinuing such business.