2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 120/ - Retailers' Occupation Tax Act.

(35 ILCS 120/1) (from Ch. 120, par. 440)
Sec. 1. Definitions. "Sale at retail" means any transfer of the
ownership of or title to
tangible personal property to a purchaser, for the purpose of use or
consumption, and not for the purpose of resale in any form as tangible
personal property to the extent not first subjected to a use for which it
was purchased, for a valuable consideration:  Provided that the property
purchased is deemed to be purchased for the purpose of resale, despite
first being used, to the extent to which it is resold as an ingredient of
an intentionally produced product or byproduct of manufacturing.  For this
purpose, slag produced as an incident to manufacturing pig iron or steel
and sold is considered to be an intentionally produced byproduct of
manufacturing.  Transactions whereby the possession of the property is
transferred but the seller retains the title as security for payment of the
selling price shall be deemed to be sales.
"Sale at retail" shall be construed to include any transfer of the
ownership of or title to tangible personal property to a purchaser, for use
or consumption by any other person to whom such purchaser may transfer the
tangible personal property without a valuable consideration, and to include
any transfer, whether made for or without a valuable consideration, for
resale in any form as tangible personal property unless made in compliance
with Section 2c of this Act.
Sales of tangible personal property, which property, to the extent not
first subjected to a use for which it was purchased, as an ingredient or
constituent, goes into and forms a part of tangible personal property
subsequently the subject of a "Sale at retail", are not sales at retail as
defined in this Act:  Provided that the property purchased is deemed to be
purchased for the purpose of resale, despite first being used, to the
extent to which it is resold as an ingredient of an intentionally produced
product or byproduct of manufacturing.
"Sale at retail" shall be construed to include any Illinois florist's
sales transaction in which the purchase order is received in Illinois by a
florist and the sale is for use or consumption, but the Illinois florist
has a florist in another state deliver the property to the purchaser or the
purchaser's donee in such other state.
Nonreusable tangible personal property that is used by persons engaged in
the business of operating a restaurant, cafeteria, or drive-in is a sale for
resale when it is transferred to customers in the ordinary course of business
as part of the sale of food or beverages and is used to deliver, package, or
consume food or beverages, regardless of where consumption of the food or
beverages occurs.  Examples of those items include, but are not limited to
nonreusable, paper and plastic cups, plates, baskets, boxes, sleeves, buckets
or other containers, utensils, straws, placemats, napkins, doggie bags, and
wrapping or packaging
materials that are transferred to customers as part of the sale of food or
beverages in the ordinary course of business.
The purchase, employment and transfer of such tangible personal property
as newsprint and ink for the primary purpose of conveying news (with or
without other information) is not a purchase, use or sale of tangible
personal property.
A person whose activities are organized and conducted primarily as a
not-for-profit service enterprise, and who engages in selling tangible
personal property at retail (whether to the public or merely to members and
their guests) is engaged in the business of selling tangible personal
property at retail with respect to such transactions, excepting only a
person organized and operated exclusively for charitable, religious or
educational purposes either (1), to the extent of sales by such person to
its members, students, patients or inmates of tangible personal property to
be used primarily for the purposes of such person, or (2), to the extent of
sales by such person of tangible personal property which is not sold or
offered for sale by persons organized for profit.  The selling of school
books and school supplies by schools at retail to students is not
"primarily for the purposes of" the school which does such selling.  The
provisions of this paragraph shall not apply to nor subject to taxation
occasional dinners, socials or similar activities of a person organized and
operated exclusively for charitable, religious or educational purposes,
whether or not such activities are open to the public.
A person who is the recipient of a grant or contract under Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and serves meals to
participants in the federal Nutrition Program for the Elderly in return for
contributions established in amount by the individual participant pursuant
to a schedule of suggested fees as provided for in the federal Act is not
engaged in the business of selling tangible personal property at retail
with respect to such transactions.
"Purchaser" means anyone who, through a sale at retail, acquires the
ownership of or title to tangible personal property for a valuable
consideration.
"Reseller of motor fuel" means any person engaged in the business of selling
or delivering or transferring title of motor fuel to another person
other than for use or consumption.
No person shall act as a reseller of motor fuel within this State without
first being registered as a reseller pursuant to Section 2c or a retailer
pursuant to Section 2a.
"Selling price" or the "amount of sale" means the consideration for a
sale valued in money whether received in money or otherwise, including
cash, credits, property, other than as hereinafter provided, and services,
but, prior to January 1, 2020 and beginning again on January 1, 2022, not including the value of or credit given for traded-in tangible
personal property where the item that is traded-in is of like kind and
character as that which is being sold; beginning January 1, 2020 and until January 1, 2022, "selling price" includes the portion of the value of or credit given for traded-in motor vehicles of the First Division as defined in Section 1-146 of the Illinois Vehicle Code of like kind and character as that which is being sold that exceeds $10,000. "Selling price" shall be determined without any
deduction on account of the cost of the property sold, the cost of
materials used, labor or service cost or any other expense whatsoever, but
does not include charges that are added to prices by sellers on account of
the seller's tax liability under this Act, or on account of the seller's
duty to collect, from the purchaser, the tax that is imposed by the Use Tax
Act, or, except as otherwise provided with respect to any cigarette tax imposed by a home rule unit, on account of the seller's tax liability under any local occupation tax administered by the Department, or, except as otherwise provided with respect to any cigarette tax imposed by a home rule unit on account of the seller's duty to collect, from the purchasers, the tax that is imposed under any local use tax administered by the Department.
Effective December 1, 1985, "selling price" shall include charges that
are added to prices by sellers on account of the seller's
tax liability under the Cigarette Tax Act, on account of the sellers'
duty to collect, from the purchaser, the tax imposed under the Cigarette
Use Tax Act, and on account of the seller's duty to collect, from the
purchaser, any cigarette tax imposed by a home rule unit.
Notwithstanding any law to the contrary, for any motor vehicle, as defined in Section 1-146 of the Vehicle Code, that is sold on or after January 1, 2015 for the purpose of leasing the vehicle for a defined period that is longer than one year and (1) is a motor vehicle of the second division that: (A) is a self-contained motor vehicle designed or permanently converted to provide living quarters for recreational, camping, or travel use, with direct walk through access to the living quarters from the driver's seat; (B) is of the van configuration designed for the transportation of not less than 7 nor more than 16 passengers; or (C) has a gross vehicle weight rating of 8,000 pounds or less or (2) is a motor vehicle of the first division, "selling price" or "amount of sale" means the consideration received by the lessor pursuant to the lease contract, including amounts due at lease signing and all monthly or other regular payments charged over the term of the lease.  Also included in the selling price is any amount received by the lessor from the lessee for the leased vehicle that is not calculated at the time the lease is executed, including, but not limited to, excess mileage charges and charges for excess wear and tear.  For sales that occur in Illinois, with respect to any amount received by the lessor from the lessee for the leased vehicle that is not calculated at the time the lease is executed, the lessor who purchased the motor vehicle does not incur the tax imposed by the Use Tax Act on those amounts, and the retailer who makes the retail sale of the motor vehicle to the lessor is not required to collect the tax imposed by the Use Tax Act or to pay the tax imposed by this Act on those amounts.  However, the lessor who purchased the motor vehicle assumes the liability for reporting and paying the tax on those amounts directly to the Department in the same form (Illinois Retailers' Occupation Tax, and local retailers' occupation taxes, if applicable) in which the retailer would have reported and paid such tax if the retailer had accounted for the tax to the Department.  For amounts received by the lessor from the lessee that are not calculated at the time the lease is executed, the lessor must file the return and pay the tax to the Department by the due date otherwise required by this Act for returns other than transaction returns.  If the retailer is entitled under this Act to a discount for collecting and remitting the tax imposed under this Act to the Department with respect to the sale of the motor vehicle to the lessor, then the right to the discount provided in this Act shall be transferred to the lessor with respect to the tax paid by the lessor for any amount received by the lessor from the lessee for the leased vehicle that is not calculated at the time the lease is executed; provided that the discount is only allowed if the return is timely filed and for amounts timely paid.  The "selling price" of a motor vehicle that is sold on or after January 1, 2015 for the purpose of leasing for a defined period of longer than one year shall not be reduced by the value of or credit given for traded-in tangible personal property owned by the lessor, nor shall it be reduced by the value of or credit given for traded-in tangible personal property owned by the lessee, regardless of whether the trade-in value thereof is assigned by the lessee to the lessor.  In the case of a motor vehicle that is sold for the purpose of leasing for a defined period of longer than one year, the sale occurs at the time of the delivery of the vehicle, regardless of the due date of any lease payments. A lessor who incurs a Retailers' Occupation Tax liability on the sale of a motor vehicle coming off lease may not take a credit against that liability for the Use Tax the lessor paid upon the purchase of the motor vehicle (or for any tax the lessor paid with respect to any amount received by the lessor from the lessee for the leased vehicle that was not calculated at the time the lease was executed) if the selling price of the motor vehicle at the time of purchase was calculated using the definition of "selling price" as defined in this paragraph.

Notwithstanding any other provision of this Act to the contrary, lessors shall file all returns and make all payments required under this paragraph to the Department by electronic means in the manner and form as required by the Department.  This paragraph does not apply to leases of motor vehicles for which, at the time the lease is entered into, the term of the lease is not a defined period, including leases with a defined initial period with the option to continue the lease on a month-to-month or other basis beyond the initial defined period.
The phrase "like kind and character" shall be liberally construed
(including but not limited to any form of motor vehicle for any form of
motor vehicle, or any kind of farm or agricultural implement for any other
kind of farm or agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from retailers'
occupation tax and use tax as an isolated or occasional sale.
"Gross receipts" from the sales of tangible personal property at retail
means the total selling price or the amount of such sales, as hereinbefore
defined.  In the case of charge and time sales, the amount thereof shall be
included only as and when payments are received by the seller.
Receipts or other consideration derived by a seller from
the sale, transfer or assignment of accounts receivable to a wholly owned
subsidiary will not be deemed payments prior to the time the purchaser
makes payment on such accounts.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership, association,
joint stock company, joint adventure, public or private corporation, limited
liability company, or a receiver, executor, trustee, guardian or other
representative appointed by order of any court.
The isolated or occasional sale of tangible personal property at retail
by a person who does not hold himself out as being engaged (or who does not
habitually engage) in selling such tangible personal property at retail, or
a sale through a bulk vending machine, does not constitute engaging in a
business of selling such tangible personal property at retail within the
meaning of this Act; provided that any person who is engaged in a business
which is not subject to the tax imposed by this Act because of involving
the sale of or a contract to sell real estate or a construction contract to
improve real estate or a construction contract to engineer, install, and
maintain an integrated system of products, but who, in the course of
conducting such business,
transfers tangible personal property to users or consumers in the finished
form in which it was purchased, and which does not become real estate or was
not engineered and installed, under any provision of a construction contract or
real estate sale or real estate sales agreement entered into with some other
person arising out of or because of such nontaxable business, is engaged in the
business of selling tangible personal property at retail to the extent of the
value of the tangible personal property so transferred. If, in such a
transaction, a separate charge is made for the tangible personal property so
transferred, the value of such property, for the purpose of this Act, shall be
the amount so separately charged, but not less than the cost of such property
to the transferor; if no separate charge is made, the value of such property,
for the purposes of this Act, is the cost to the transferor of such tangible
personal property. Construction contracts for the improvement of real estate
consisting of engineering, installation, and maintenance of voice, data, video,
security, and all telecommunication systems do not constitute engaging in a
business of selling tangible personal property at retail within the meaning of
this Act if they are sold at one specified contract price.
A person who holds himself or herself out as being engaged (or who habitually
engages) in selling tangible personal property at retail is a person
engaged in the business of selling tangible personal property at retail
hereunder with respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs and produces
such tangible personal property on special order for the purchaser and in
such a way as to render the property of value only to such purchaser, if
such tangible personal property so produced on special order serves
substantially the same function as stock or standard items of tangible
personal property that are sold at retail.
Persons who engage in the business of transferring tangible personal
property upon the redemption of trading stamps are engaged in the business
of selling such property at retail and shall be liable for and shall pay
the tax imposed by this Act on the basis of the retail value of the
property transferred upon redemption of such stamps.
"Bulk vending machine" means a vending machine,
containing unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children
which, when a coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
"Remote retailer" means a retailer that does not maintain within this State, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within this State under the authority of the retailer or its subsidiary, irrespective of whether such place of business or agent is located here permanently or temporarily or whether such retailer or subsidiary is licensed to do business in this State.
"Marketplace" means a physical or electronic place, forum, platform, application, or other method by which a marketplace seller sells or offers to sell items.
"Marketplace facilitator" means a person who, pursuant to an agreement with an unrelated third-party marketplace seller, directly or indirectly through one or more affiliates facilitates a retail sale by an unrelated third party marketplace seller by:
(1) listing or advertising for sale by the     marketplace seller in a marketplace, tangible personal property that is subject to tax under this Act; and
(2) either directly or indirectly, through agreements     or arrangements with third parties, collecting payment from the customer and transmitting that payment to the marketplace seller regardless of whether the marketplace facilitator receives compensation or other consideration in exchange for its services.
A person who provides advertising services, including listing products for sale, is not considered a marketplace facilitator, so long as the advertising service platform or forum does not engage, directly or indirectly through one or more affiliated persons, in the activities described in paragraph (2) of this definition of "marketplace facilitator".
"Marketplace facilitator" does not include any person licensed under the Auction License Act. This exemption does not apply to any person who is an Internet auction listing service, as defined by the Auction License Act.
"Marketplace seller" means a person that makes sales through a marketplace operated by an unrelated third party marketplace facilitator.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20; 102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff. 5-13-22.)
(35 ILCS 120/1a) (from Ch. 120, par. 440a)
Sec. 1a. 
		
		"Pollution control facilities" means any system, method,
construction, device or appliance appurtenant thereto sold or used or
intended for the primary purpose of eliminating, preventing, or reducing
air and water pollution as the term "air pollution" or "water pollution" is
defined in the "Environmental Protection Act", enacted by the 76th General
Assembly, or for the primary purpose of treating, pretreating, modifying or
disposing of any potential solid, liquid or gaseous pollutant which if
released without such treatment, pretreatment, modification or disposal
might be harmful, detrimental or offensive to human, plant or animal life,
or to property.
Until July 1, 2003, the purchase, employment and transfer of such
tangible personal property
as pollution control facilities is not a purchase, use or sale of tangible
personal property.
(Source: P.A. 93-24, eff. 6-20-03.)
(35 ILCS 120/1a-1) (from Ch. 120, par. 440a-1)
Sec. 1a-1. 
		
		"Low sulfur dioxide emission coal fueled devices" means
any device sold or used or intended for the purpose of burning, combusting
or converting locally available coal in a manner which eliminates or significantly
reduces the need for additional sulfur dioxide abatement that would otherwise
be required under State or Federal air emission standards.  Such device
includes all machinery, equipment, structures and all related apparatus
of a coal gasification facility, including coal feeding equipment, designed
to convert locally available coal into a low sulfur gaseous fuel and to
manage all waste and byproduct streams.
The purchase, employment and transfer of such tangible personal property
as low sulfur dioxide emission coal fueled devices is not a purchase, use or sale
of tangible personal property.
This amendatory Act of 1981 is not intended to nor does it make any change
in the meaning of any provision in this Section but is intended to remove
possible ambiguities, thereby confirming the existing meaning of this Section
in effect prior to the effective date of this amendatory Act of 1981.
(Source: P.A. 82-672.)
(35 ILCS 120/1c) (from Ch. 120, par. 440c)
Sec. 1c. A person who is engaged in the business of leasing or
renting motor vehicles or, beginning July 1, 2003, aircraft or, beginning September 1, 2004, watercraft to others and
who, in connection with such
business sells any used motor vehicle,
						
aircraft, or watercraft to a purchaser for his
use and not
for the purpose of resale, is a retailer engaged in the business of
selling tangible personal property at retail under this Act to the
extent of the value of the motor vehicle,
						
						aircraft, or watercraft sold. For the purpose of
this
Section "motor vehicle" has the meaning prescribed in Section 1-157 of
the Illinois Vehicle Code, as now or hereafter amended.
For the purpose of this Section "aircraft" has the meaning prescribed in
Section
3 of the
Illinois Aeronautics Act.
For the purpose of this Section, "watercraft" has the meaning prescribed in Section 5-5 of the Watercraft Use Tax Law. (Nothing
provided herein shall affect liability incurred under this Act because
of the sale at retail of such motor vehicles, aircraft, or watercraft to a lessor.)
(Source: P.A. 93-24, eff. 6-20-03; 93-840, eff. 7-30-04.)
(35 ILCS 120/1d) (from Ch. 120, par. 440d)
Sec. 1d. Subject to the provisions of Section 1f, all tangible personal
property to be used or consumed within an enterprise zone established
pursuant to the "Illinois Enterprise Zone Act", as amended, or subject to
the provisions of Section 5.5 of the Illinois Enterprise Zone Act, all
tangible personal property to be used or consumed by any High Impact Business,
in the process of the manufacturing or assembly of tangible personal property
for wholesale or retail sale or lease or in the process of graphic arts
production if used or consumed at a facility which is a Department of
Commerce and Economic Opportunity certified business and located in a county
of more than 4,000 persons and less than 45,000 persons is exempt from
the tax imposed by
this Act.  This exemption includes repair and replacement parts for
machinery and equipment used primarily in the process of manufacturing or
assembling tangible personal property or in the process of graphic arts
production if used or consumed at a facility which is a Department of
Commerce and Economic Opportunity certified business and located in a county
of more than 4,000 persons and less than 45,000 persons for wholesale or retail sale, or
lease, and equipment, manufacturing or graphic arts fuels, material and
supplies for the
maintenance, repair or operation of such manufacturing or assembling
or graphic arts machinery or equipment. The exemption provided in this Section for tangible personal property to be used or consumed in the process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease, and the repair and replacement parts for that machinery and equipment, does not apply to such property used or consumed in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.  The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this exemption.
(Source: P.A. 98-583, eff. 1-1-14.)
(35 ILCS 120/1e) (from Ch. 120, par. 440e)
Sec. 1e. 
		
		Subject to the provisions of Section 1f, or subject to the
provisions of Section 5.5 of the Illinois Enterprise Zone Act, all tangible
personal property to be used or consumed in the operation of pollution
control facilities, as defined in Section 1a of this Act, within an
enterprise zone established pursuant to the "Illinois Enterprise Zone Act",
as amended, shall be exempt from the tax imposed by this Act.
(Source: P.A. 85-1182.)
(35 ILCS 120/1f) (from Ch. 120, par. 440f)
Sec. 1f. Except for High Impact Businesses, the exemption stated in
Sections 1d and 1e of this Act shall only apply to business enterprises which:
(1) either (i) make investments which cause the     creation of a minimum of 200 full-time equivalent jobs in Illinois or (ii) make investments which cause the retention of a minimum of 2000 full-time jobs in Illinois or (iii) make investments of a minimum of $40,000,000 and retain at least 90% of the jobs in place on the date on which the exemption is granted and for the duration of the exemption; and
(2) are located in an Enterprise Zone established     pursuant to the Illinois Enterprise Zone Act; and
(3) are certified by the Department of Commerce and     Economic Opportunity as complying with the requirements specified in clauses (1) and (2).
In addition, from March 1, 2010 to July 31, 2012, the exemption stated in
Sections 1d and 1e of this Act shall also apply to a business enterprise that (i) complied with the requirements specified in clause (1) above as of March 1, 2010, (ii) receives certification from the Department of Commerce and Economic Opportunity, (iii) was a Department of Commerce and Economic Opportunity certified business enterprise in 2009,  and (iv) retained a minimum of 500 full-time equivalent jobs in Illinois in 2009 and 2010, 675 full-time equivalent jobs in Illinois in 2011, 850 full-time equivalent jobs in Illinois in 2012, and 1,000 full-time equivalent jobs in Illinois in 2013; those jobs must have been created in the manufacturing sector as defined by the North American Industry Classification System.
Any business enterprise seeking to avail itself of the exemptions stated
in Sections 1d or 1e, or both, shall make application to the Department of
Commerce and Economic Opportunity in such form and providing such information
as may be prescribed by the Department of Commerce and Economic Opportunity.
However, no business enterprise shall be required, as a condition for
certification under clause (3) of this Section, to attest that its decision
to invest under clause (1) of this Section and to locate under clause (2)
of this Section is predicated upon the availability of the exemptions
authorized by Sections 1d or 1e.
The Department of Commerce and Economic Opportunity shall determine whether
the business enterprise meets the criteria prescribed in this Section.  If
the Department of Commerce and Economic Opportunity determines that such
business enterprise meets the criteria, it shall issue a certificate of
eligibility for exemption to the business enterprise in such form as is
prescribed by the Department of Revenue.  The Department of Commerce and
Economic Opportunity shall act upon such certification requests within 60 days
after receipt of the application, and shall file with the Department of
Revenue a copy of each certificate of eligibility for exemption.
The Department of Commerce and Economic Opportunity shall have the power to
promulgate rules and regulations to carry out the provisions of this
Section including the power to define the amounts and types of eligible
investments not specified in this Section which business enterprises
must make in order to receive the exemptions stated in Sections 1d and 1e
of this Act; and to require that any business enterprise that is granted a
tax exemption repay the exempted tax if the business enterprise fails to
comply with the terms and conditions of the certification.
Such certificate of eligibility for exemption shall be presented by the
business enterprise to its supplier when making the initial purchase of
tangible personal property for which an exemption is granted by Section 1d or
Section 1e, or both, together with a certification by the business enterprise
that such tangible personal property is exempt from taxation under Section
1d or Section 1e and by indicating the exempt status of each subsequent
purchase on the face of the purchase order.
The Department of Commerce and Economic Opportunity shall determine the
period during which such exemption from the taxes imposed under this Act is
in effect which shall not exceed 20 years.
(Source: P.A. 100-1032, eff. 8-22-18.)
(35 ILCS 120/1g) (from Ch. 120, par. 440g)
Sec. 1g. 
		Application for exemption identification number. 
		On or before
December 31, 1986, except as hereinafter provided, each entity otherwise
eligible under exemption (11) of Section 2-5 of this Act and on and after the
effective date of this amendatory Act of the 92nd General Assembly each entity
otherwise eligible under exemption (9) of Section 2-5 of this Act shall make
application to the Department for an
exemption identification number. In the case of a corporation, society,
association, foundation, or institution organized and operated
exclusively for charitable purposes and that has more than 50
subsidiary organizations in Illinois, the Department, in its sole
discretion, may issue one exemption identification number to be used by the
parent organization and each subsidiary organization.
Each exemption identification number or renewal number
shall be valid for 5 years after the first day of the month following the
month of issuance. Not less than 3 months before the
expiration date, an application for renewal shall be filed.
Each application for an exemption identification number or a renewal
number shall contain information and be
accompanied by documentation as shall be requested by the Department.
(Source: P.A. 92-35, eff. 7-1-01.)
(35 ILCS 120/1h) (from Ch. 120, par. 440h)
Sec. 1h. 
Upon request made on or after July 1, 1987, the Department
shall furnish to any county or municipality a list containing the name of
each corporation, society, association, foundation or institution organized
and operated exclusively for charitable, religious or educational purposes,
and each not-for-profit corporation, society, association, foundation,
institution or organization which has no compensated officers or employees
and which is organized and operated primarily for the recreation of persons
55 years of age or older, which had a valid exemption identification number
on the first day of January or July, as the case may be, proceeding the date
on which such request is received and which is located within the corporate
limits of such municipality or the unincorporated territory of such county,
except that the list need not include subsidiary organizations using an
exemption identification number issued to its parent organization as
provided by Section 1g of this Act.
(Source: P.A. 97-813, eff. 7-13-12.)
(35 ILCS 120/1i) (from Ch. 120, par. 440i)
Sec. 1i. High Impact Service Facility means a facility used primarily
for the sorting, handling and
redistribution of mail, freight, cargo, or other parcels received from agents
or
employees of the handler or shipper for processing at a common location and
redistribution to other employees or agents for delivery to an ultimate
destination on an item-by-item basis, and which:  (1) will make an
investment in a business enterprise project of $100,000,000 dollars or more;
(2)
will cause the creation of at least 750 to 1,000 jobs or more in an
enterprise zone
established pursuant to the Illinois Enterprise Zone Act; and (3) is
certified by the Department of Commerce and Economic Opportunity as
contractually obligated to meet the requirements specified in divisions (1)
and (2) of this paragraph within the time period as specified by the
certification.  Any business enterprise project applying for the exemption
stated
in this Section shall make application to the Department of Commerce and
Economic Opportunity in such form and providing such information as may be
prescribed by the Department of Commerce and Economic Opportunity.
The Department of Commerce and Economic Opportunity shall determine whether
the business enterprise project meets the criteria prescribed in this
Section.  If
the Department of Commerce and Economic Opportunity determines that such
business enterprise project meets the criteria, it shall issue a
certificate of
eligibility for exemption to the business enterprise in such form as is
prescribed by the Department of Revenue.  The Department of Commerce and
Economic Opportunity shall act upon such certification requests within 60 days
after receipt of the application, and shall file with the Department of
Revenue a copy of each certificate of eligibility for exemption.
The Department of Commerce and Economic Opportunity shall have the power to
promulgate rules and regulations to carry out the provisions of this
Section and to require that any business enterprise that is granted a tax
exemption repay the exempted tax if the business enterprise fails to comply
with the terms and conditions of the certification.
The certificate of eligibility for exemption shall be presented by the
business enterprise to its supplier when making
the initial purchase of machinery and equipment for which an exemption is
granted by Section 1j of this Act, together with a certification by the
business enterprise that such machinery and equipment is exempt from
taxation under Section 1j of this Act and by indicating the exempt status
of each subsequent purchase on the face of the purchase order.
The certification of eligibility for exemption shall be presented by the
business enterprise to its supplier when making the purchase of jet fuel and
petroleum products for which an exemption is granted by Section 1j.1 of this
Act, together with a certification by the business enterprise that such jet
fuel and petroleum product, are exempt from taxation under Section 1j.1 of this
Act, and by indicating the exempt status of each subsequent purchase on the
face of the purchase order.
The Department of Commerce and Economic Opportunity shall determine the
period during which such exemption from the taxes imposed under this Act
will remain in effect.
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 120/1j) (from Ch. 120, par. 440j)
Sec. 1j. 
		
		Exemption - Machinery or Equipment used in the operation of
high impact service facilities.  Subject to the provisions of Section 1i of
this Act, machinery or equipment used in the operation of a high impact
service facility, as defined in Section 1i of this Act, located within an
enterprise zone established pursuant to the Illinois Enterprise Zone Act
shall be exempt from the tax imposed by this Act. Machinery and equipment,
new and replacement, shall include, but not be limited to:  (i) motor
driven heavy equipment not considered rolling stock which is used for the
purpose of transporting parcels, machinery, or equipment, or
trailers used for the shipment of parcels, and equipment used to maintain
and provide in-house services, within the confines of the
facility, and (ii) automated machinery and equipment used for the
purposes of transporting parcels within the facility, along with all
components, parts, pieces, and computer software or hardware contained in
the electronic control systems related thereto.
The Department of Revenue shall promulgate such rules and regulations as
necessary to further define machinery and equipment eligible for exemption
in a high impact service facility.
(Source: P.A. 85-1409.)
(35 ILCS 120/1j.1)
Sec. 1j.1. Exemption; jet fuel used in the operation of high impact
service
facilities.
Subject to the provisions of Section 1i of this Act, jet fuel and petroleum
products sold to and used in the conduct of its business of sorting, handling
and redistribution of mail, freight, cargo or other parcels in the operation of
a high impact service facility, as defined in Section 1i of this Act, located
within an enterprise zone established pursuant to the Illinois Enterprise Zone
Act shall be exempt from the tax imposed by this Act, provided that the
business enterprise has waived its right to a tax exemption of the charges
imposed under Section 9-222.1 of the Public Utilities Act.  The Department of
Commerce and Economic Opportunity shall promulgate rules
necessary to further define jet fuel and petroleum products sold to, used, and
eligible for exemption in a high impact service facility.  The minimum period
for which an exemption from taxes is granted by this Section is 10 years,
regardless of the duration of the enterprise zone in which the project is
located.
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 120/1j.2)
Sec. 1j.2. 
		Exceptions. 
		High impact service facilities qualifying under
this
Act
and seeking the exemption under 1j.1 shall be ineligible for the exemptions of
taxes imposed under Section 9-222.1 of the Public Utilities Act.  High impact
service facilities qualifying under this Act and seeking the exemption under
Section 9-222.1 of the Public Utilities Act shall be ineligible for the
exemptions of
taxes as described in Section 1j.1.
(Source: P.A. 90-42, eff. 1-1-98.)
(35 ILCS 120/1k) (from Ch. 120, par. 440k)
Sec. 1k. Aircraft maintenance facility means a facility operated by an
interstate carrier for hire that is used primarily for the maintenance,
rebuilding or repair of aircraft, aircraft parts and auxiliary equipment
owned or leased by that carrier and used by that carrier as rolling stock
moving in interstate commerce, and which: (1) will make an investment by
the interstate carrier for hire of $400,000,000 or more in an enterprise
zone; (2) will cause the creation of at least 5,000 full-time jobs in that
enterprise zone; (3) is located in a county with population not less than
150,000 and not more than 200,000 and that contains 3 enterprise zones as
of December 31, 1990; (4) enters into a legally binding agreement with the
Department of Commerce and Economic Opportunity to comply with clauses (1) and
(2) of this paragraph within a time period specified in the rules and
regulations promulgated pursuant to this Section; and (5) is certified by
the Department of Commerce and Economic Opportunity to be in compliance with
clauses (1), (2), (3) and (4) of this Section.  Any aircraft maintenance
facility applying for the exemption stated in this Section shall make
application to the Department of Commerce and Economic Opportunity in such
form and providing such information as may be prescribed by the Department
of Commerce and Economic Opportunity.
The Department of Commerce and Economic Opportunity shall determine whether
the facility meets the criteria prescribed in this Section.  If the
Department of Commerce and Economic Opportunity determines
that the facility meets the criteria, it shall issue a certificate of
eligibility for exemption in the form prescribed by the Department of
Revenue to the business enterprise operating the facility.  The Department
of Commerce and Economic Opportunity shall act upon certification request
within 60 days after receipt of application, and shall file with the
Department of Revenue a copy of each certificate of eligibility for exemption.
The Department of Commerce and Economic Opportunity shall promulgate rules
and regulations to carry out the provisions of this Section, and to require
that any business enterprise that is granted a tax exemption pay the
exempted tax to the Department of Revenue if the business enterprise fails
to comply with the terms and conditions of the certification, and pay all
penalties and interest on that exempted tax as determined by the
Department of Revenue.
The certificate of eligibility for exemption shall be presented by the
business enterprise to its supplier when making the initial purchase of
machinery and equipment for which an exemption is granted by Section 1m or
Section 1n of this Act, or both, together with a certification by the
business enterprise that the machinery and equipment is exempt from
taxation under Section 1m or 1n of this Act.  The exempt status, if any, of
each subsequent purchase shall be indicated on the face of the purchase order.
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 120/1m) (from Ch. 120, par. 440m)
Sec. 1m. 
		
		Subject to the provisions of Section 1k of this Act,
machinery and equipment used in the operation of an aircraft maintenance
facility as defined in Section 1k, located within an enterprise zone shall
be exempt from the tax imposed by this Act.  The machinery and equipment
exempted by this Section is limited to machinery and equipment used
primarily to maintain, rebuild or repair aircraft used as rolling stock
moving in interstate commerce for hire by the operator of the facility.
The Department of Revenue shall promulgate any rules and regulations
necessary to further define machinery and equipment eligible for exemption
in an aircraft maintenance facility.
(Source: P.A. 86-1490.)
(35 ILCS 120/1n) (from Ch. 120, par. 440n)
Sec. 1n. 
		
		Subject to the provisions of Section 1k, all tangible
personal property to be used or consumed, within an enterprise zone
established pursuant to the Illinois Enterprise Zone Act, by any aircraft
maintenance facility, directly in the process of maintaining, rebuilding or
repairing aircraft is exempt from the tax imposed by this Act.  The
exemption includes repair and replacement parts for machinery and equipment
used primarily in the process of maintaining, rebuilding or repairing
aircraft, and also includes equipment, fuels, material and supplies for the
maintenance, repair or operation of such machinery or equipment.
(Source: P.A. 86-1490.)
(35 ILCS 120/1o)
Sec. 1o. Aircraft support center exemption.
(a) For the purposes of this Act, "aircraft support center" means a
support center operated by a
carrier for hire that is used primarily for the maintenance,
rebuilding, or repair of aircraft, aircraft parts, and auxiliary equipment,
and which carrier:
(1) will make an investment of $30,000,000 or more at     a federal Air Force Base located in this State;
(2) will cause the creation of at least 750 full-time     jobs at a joint use military and civilian airport at that federal Air Force Base;
(3) enters into a legally binding agreement with the     Department of Commerce and Economic Opportunity to comply with paragraphs (1) and (2) within a time period specified in the rules and regulations promulgated by the Department of Commerce and Economic Opportunity  pursuant to this subsection; and
(4) is certified by the Department of Commerce and     Economic Opportunity to be in compliance with paragraphs (1), (2), and (3).
					Any aircraft support center
applying for an exemption stated in this Section shall make
application to the Department of Commerce and Economic Opportunity in such
form and providing such information as may be prescribed by that Department.
The Department of Commerce and Economic Opportunity shall determine whether the
aircraft
support center meets the criteria prescribed in this subsection.  If the
Department of Commerce and Economic Opportunity determines
that the aircraft support center meets the criteria, it shall issue a
certificate of
eligibility for exemption in the form prescribed by the Department of
Revenue to the carrier operating the aircraft support center.  The
Department
of Commerce and Economic Opportunity shall act upon certification request
within 60 days after receipt of application and shall file with the
Department of Revenue a copy of each certificate of eligibility for exemption.
The Department of Commerce and Economic Opportunity shall promulgate rules
and regulations to carry out the provisions of this subsection and to require
that any business operating an aircraft support center that is granted a tax
exemption pay the
exempted tax to the Department of Revenue if the business fails
to comply with the terms and conditions of the certification and pay all
penalties and interest on that exempted tax as determined by the
Department of Revenue.
The certificate of eligibility for exemption shall be presented by the
carrier operating an aircraft support center to its supplier when making the
initial purchase of items
for which an exemption is granted by this Section
together with a certification by the
business that the items are exempt from
taxation under this Act.  The exempt status, if any, of
each subsequent purchase shall be indicated on the face of the purchase order.
(b) Subject to the provisions of this subsection, jet fuel and petroleum
products used or consumed
by any aircraft
support center directly in the process of maintaining, rebuilding, or
repairing aircraft is exempt from the tax imposed by this Act.  The
Department of Revenue shall promulgate any rules necessary to further define
the items eligible for exemption.
(c) This Section is exempt from the provisions of Section 2-70.
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 120/1p)
Sec. 1p. (Repealed).
(Source: P.A. 94-546, eff. 1-1-06. Repealed by P.A. 94-781, eff. 5-19-06.)
(35 ILCS 120/1q)
Sec. 1q. Building materials exemption; Illiana Expressway public private partnership.
(a) Each retailer that makes a qualified sale of building materials to be incorporated into the Illiana Expressway as defined in the Public Private Agreements for the Illiana Expressway Act, by remodeling, rehabilitating, or new construction, may deduct receipts from those sales when calculating the tax imposed by this Act.
(b) As used in this Section, "qualified sale" means a sale of building materials that will be incorporated into the Illiana Expressway for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the Illinois Department of Transportation, which has authority over the project.
(c) To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the Illinois Department of Transportation, which has jurisdiction over the project into which the building materials will be incorporated is located. The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:
(1) statement that the project identified in the     Certificate meets all the requirements of the Illinois Department of Transportation;
(2) the location or address of the project; and
(3) the signature of the Secretary of the Illinois     Department of Transportation, which has authority over the Illiana Expressway or the Secretary's delegate.
(d) In addition to meeting the requirements of subsection (c) of this Act, the retailer must obtain a certificate from the purchaser that contains all of the following:
(1) a statement that the building materials are being     purchased for incorporation into the Illiana Expressway in accordance with the Public Private Agreements for the Illiana Expressway Act;
(2) the location or address of the project into which     the building materials will be incorporated;
(3) the name of the project;
(4) a description of the building materials being     purchased; and
(5) the purchaser's signature and date of purchase.
(e) This Section is exempt from Section 2-70 of this Act.
(Source: P.A. 96-913, eff. 6-9-10.)
(35 ILCS 120/1r)
Sec. 1r. Building materials exemption; public-private partnership transportation projects.
(a) Each retailer that makes a qualified sale of building materials to be incorporated into a "project" as defined in the Public-Private Partnerships for Transportation Act, by remodeling, rehabilitating, or new construction, may deduct receipts from those sales when calculating the tax imposed by this Act.
(b) As used in this Section, "qualified sale" means a sale of building materials that will be incorporated into a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the agency having authority over the project.
(c) To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the agency having jurisdiction over the project into which the building materials will be incorporated is located. The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:
(1) statement that the project identified in the     Certificate meets all the requirements of the agency having authority over the project;
(2) the location or address of the project; and
(3) the signature of the director of the agency with     authority over the project or the director's delegate.
(d) In addition to meeting the requirements of subsection (c) of this Act, the retailer must obtain a certificate from the purchaser that contains all of the following:
(1) a statement that the building materials are being     purchased for incorporation into a project in accordance with the Public-Private Partnerships for Transportation Act;
(2) the location or address of the project into which     the building materials will be incorporated;
(3) the name of the project;
(4) a description of the building materials being     purchased; and
(5) the purchaser's signature and date of purchase.
(e) This Section is exempt from Section 2-70 of this Act.
(Source: P.A. 97-502, eff. 8-23-11.)
(35 ILCS 120/1s)
Sec. 1s. Building materials exemption; South Suburban Airport public-private partnership.
(a) Each retailer that makes a qualified sale of building materials to be incorporated into the South Suburban Airport as defined in the Public-Private Agreements for the South Suburban Airport Act, by remodeling, rehabilitating, or new construction, may deduct receipts from those sales when  calculating the tax imposed by this Act.
(b) As used in this Section, "qualified sale" means a sale  of building materials that will be incorporated into the  South Suburban Airport for which a Certificate of Eligibility for  Sales Tax Exemption has been issued by the Illinois Department  of Transportation, which has authority over the project.
(c) To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the Illinois Department of Transportation, which has jurisdiction over the project into which the building materials will be incorporated is located.  The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:
(1) statement that the project identified in the     Certificate meets all the requirements of the Illinois  Department of Transportation;
(2) the location or address of the project; and
(3) the signature of the Secretary of the Illinois     Department of Transportation, which has authority over the  South Suburban Airport or the Secretary's delegate.
(d) In addition to meeting the requirements of subsection  (c) of this Act, the retailer must obtain a certificate from the purchaser that contains all of the following:
(1) a statement that the building materials are being     purchased for incorporation into the South Suburban Airport in  accordance with the Public-Private Agreements for the  South Suburban Airport Act;
(2) the location or address of the project into which      the building materials will be incorporated;
(3) the name of the project;
(4) a description of the building materials being     purchased; and
(5) the purchaser's signature and date of purchase.
(e) This Section is exempt from Section 2-70 of this Act.
(Source: P.A. 98-109, eff. 7-25-13.)
(35 ILCS 120/2) (from Ch. 120, par. 441)
Sec. 2. Tax imposed.
(a) A tax is imposed upon persons engaged in the
business of selling at retail tangible personal property, including
computer software, and including photographs, negatives, and positives that
are the product of photoprocessing, but not including products of
photoprocessing produced for use in motion pictures for public commercial
exhibition.
Beginning January 1, 2001, prepaid telephone calling arrangements shall be
considered tangible personal property subject to the tax imposed under this Act
regardless of the form in which those arrangements may be embodied,
transmitted, or fixed by any method now known or hereafter developed. Sales of (1) electricity delivered to customers by wire;  (2) natural or artificial gas that is delivered to customers through pipes, pipelines, or mains;  and (3) water that is delivered to customers through pipes, pipelines, or mains are not subject to tax under this Act.  The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this Act.
(b) Beginning on January 1, 2021, a remote retailer is engaged in the occupation of selling at retail in Illinois for purposes of this Act, if:
(1) the cumulative gross receipts from sales of     tangible personal property to purchasers in Illinois are $100,000 or more; or
(2) the retailer enters into 200 or more separate     transactions for the sale of tangible personal property to purchasers in Illinois.
Remote retailers that meet or exceed the threshold in either paragraph (1) or (2) above shall be liable for all applicable State retailers' and locally imposed retailers' occupation taxes administered by the Department on all retail sales to Illinois purchasers.
The remote retailer shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either paragraph (1) or (2) of this subsection for the preceding 12-month period.  If the retailer meets the criteria of either paragraph (1) or (2) for a 12-month period, he or she is considered a retailer maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and all retailers' occupation tax imposed by local taxing jurisdictions in Illinois, provided such local taxes are administered by the Department, and to file all applicable returns for one year. At the end of that one-year period, the retailer shall determine whether the retailer met the criteria of either paragraph (1) or (2) for the preceding 12-month period.  If the retailer met the criteria in either paragraph (1) or (2) for the preceding 12-month period, he or she is considered a retailer maintaining a place of business in this State and is required to collect and remit all applicable State and local retailers' occupation taxes and file returns for the subsequent year. If, at the end of a one-year period, a retailer that was required to collect and remit the tax imposed under this Act determines that he or she did not meet the criteria in either paragraph (1) or (2) during the preceding 12-month period, then the retailer shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either paragraph (1) or (2) for the preceding 12-month period.
(b-5) For the purposes of this Section, neither the gross receipts from nor the number of separate transactions for sales of tangible personal property to purchasers in Illinois that a remote retailer makes through a marketplace facilitator shall be included for the purposes of determining whether he or she has met the thresholds of subsection (b) of this Section so long as the remote retailer has received certification from the marketplace facilitator that the marketplace facilitator is legally responsible for payment of tax on such sales.
(b-10) A remote retailer required to collect taxes imposed under the Use Tax Act on retail sales made to Illinois purchasers shall be liable to the Department for such taxes, except when the remote retailer is relieved of the duty to remit such taxes by virtue of having paid to the Department taxes imposed by this Act in accordance with this Section upon his or her gross receipts from such sales.
(c) Marketplace facilitators engaged in the business of selling at retail tangible personal property in Illinois. Beginning January 1, 2021, a marketplace facilitator is engaged in the occupation of selling at retail tangible personal property in Illinois for purposes of this Act if, during the previous 12-month period:
(1) the cumulative gross receipts from sales of     tangible personal property on its own behalf or on behalf of marketplace sellers to purchasers in Illinois equals $100,000 or more; or
(2) the marketplace facilitator enters into 200 or     more separate transactions on its own behalf or on behalf of marketplace sellers for the sale of tangible personal property to purchasers in Illinois, regardless of whether the marketplace facilitator or marketplace sellers for whom such sales are facilitated are registered as retailers in this State.
A marketplace facilitator who meets either paragraph (1) or (2) of this subsection is required to remit the applicable State retailers' occupation taxes under this Act and local retailers' occupation taxes administered by the Department on all taxable sales of tangible personal property made by the marketplace facilitator or facilitated for marketplace sellers to customers in this State.  A marketplace facilitator selling or facilitating the sale of tangible personal property to customers in this State is subject to all applicable procedures and requirements of this Act.
The marketplace facilitator shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either paragraph (1) or (2) of this subsection for the preceding 12-month period.  If the marketplace facilitator meets the criteria of either paragraph (1) or (2) for a 12-month period, he or she is considered a retailer maintaining a place of business in this State and is required to remit the tax imposed under this Act and all retailers' occupation tax imposed by local taxing jurisdictions in Illinois, provided such local taxes are administered by the Department, and to file all applicable returns for one year. At the end of that one-year period, the marketplace facilitator shall determine whether it met the criteria of either paragraph (1) or (2) for the preceding 12-month period.  If the marketplace facilitator met the criteria in either paragraph (1) or (2) for the preceding 12-month period, it is considered a retailer maintaining a place of business in this State and is required to collect and remit all applicable State and local retailers' occupation taxes and file returns for the subsequent year. If at the end of a one-year period a marketplace facilitator that was required to collect and remit the tax imposed under this Act determines that he or she did not meet the criteria in either paragraph (1) or (2) during the preceding 12-month period, the marketplace facilitator shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether he or she meets the criteria of either paragraph (1) or (2) for the preceding 12-month period.
A marketplace facilitator shall be entitled to any credits, deductions, or adjustments to the sales price otherwise provided to the marketplace seller, in addition to any such adjustments provided directly to the marketplace facilitator.  This Section pertains to, but is not limited to, adjustments such as discounts, coupons, and  rebates.   In addition, a marketplace facilitator shall be entitled to the retailers' discount provided in Section 3 of the Retailers' Occupation Tax Act on all marketplace sales, and the marketplace  seller shall not include sales made through a marketplace facilitator when computing any retailers' discount on remaining sales.   Marketplace facilitators shall report and remit the applicable State and local retailers' occupation taxes on sales  facilitated for marketplace sellers separately from any sales or use tax collected on taxable retail sales made directly by the marketplace facilitator or its affiliates.
The marketplace facilitator is liable for the remittance of all applicable State retailers' occupation taxes under this Act and local retailers' occupation taxes administered by the Department on sales through the marketplace and is subject to audit on all such sales.  The Department shall not audit marketplace sellers for their marketplace sales where a marketplace facilitator remitted the applicable State and local retailers' occupation taxes unless the marketplace facilitator seeks relief as a result of incorrect information provided to the marketplace facilitator by a marketplace seller as set forth in this Section. The marketplace facilitator shall not be held liable for tax on any sales made by a marketplace seller that take place outside of the marketplace and which are not a part of any agreement between a marketplace facilitator and a marketplace seller.  In addition, marketplace facilitators shall not be held liable to State and local governments of Illinois for having charged and remitted an incorrect amount of State and local retailers' occupation tax if, at the time of the sale, the tax is computed based on erroneous data provided by the State in database files on tax rates, boundaries, or taxing jurisdictions or incorrect information provided to the marketplace facilitator by the marketplace seller.
(d) A marketplace facilitator shall:
(1) certify to each marketplace seller that the     marketplace facilitator assumes the rights and duties of a retailer under this Act with respect to sales made by the marketplace seller through the marketplace; and
(2) remit taxes imposed by this Act as required by     this Act for sales made through the marketplace.
(e) A marketplace seller shall retain books and records for all sales made through a marketplace in accordance with the requirements of this Act.
(f) A marketplace facilitator is subject to audit on all marketplace sales for which it is considered to be the retailer, but shall not be liable for tax or subject to audit on sales made by marketplace sellers outside of the marketplace.
(g) A marketplace facilitator required to collect taxes imposed under the Use Tax Act on marketplace sales made to Illinois purchasers shall be liable to the Department for such taxes, except when the marketplace facilitator is relieved of the duty to remit such taxes by virtue of having paid to the Department taxes imposed by this Act in accordance with this Section upon his or her gross receipts from such sales.
(h) Nothing in this Section shall allow the Department to collect retailers' occupation taxes from both the marketplace facilitator and marketplace seller on the same transaction.
(i) If, for any reason, the Department is prohibited from enforcing the marketplace facilitator's duty under this Act to remit taxes pursuant to this Section, the duty to remit such taxes remains with the marketplace seller.
(j) Nothing in this Section affects the obligation of any consumer to remit use tax for any taxable transaction for which a certified service provider acting on behalf of a remote retailer or a marketplace facilitator does not collect and remit the appropriate tax.
(k)  Nothing in this Section shall allow the Department to collect the retailers' occupation tax from both the marketplace facilitator and the marketplace seller.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
(35 ILCS 120/2-5)
(Text of Section from P.A. 103-9, Article 5, Section 5-20)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,     including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
Farm machinery and equipment shall include precision     farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,     sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals.  This item (2) is exempt from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and     equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
(4) Until July 1, 2003 and beginning again September     1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
(5) A motor vehicle that is used for automobile     renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored     student organization affiliated with an elementary or secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of     the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair     association for use in conducting, operating, or promoting the county fair.
(9) Personal property sold to a not-for-profit arts     or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services.  These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
(10) Personal property sold by a corporation,     society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
(11) Personal property sold to a governmental body,     to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,     2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this  exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
(13) Proceeds from sales to owners, lessors, or     shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
(14) Machinery and equipment that will be used by the     purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.    The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately     stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
(16) Tangible personal property sold to a purchaser     if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
(17) Tangible personal property sold to a common     carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or     silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,     drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,     including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
(21) Until July 1, 2028, coal and aggregate     exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)  for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is     received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,     barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this     Section, a  motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state.  The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply     if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois.  The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act.  At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence.  In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale.  The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed     under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act,  if all of the following conditions are met:
(1) the aircraft leaves this State within 15 days         after the later of  either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
(2) the aircraft is not based or registered in         this State after the sale of the aircraft; and
(3) the seller retains in his or her books and         records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department,  certifying that the requirements of this item (25-7) are met.  The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or     otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
"Registered in this State" means an aircraft     registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
This paragraph (25-7) is exempt from the provisions     of Section 2-70.
(26) Semen used for artificial insemination of     livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with     and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)  for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized     for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(29) Personal property sold to a lessor who leases     the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold     at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code.  This paragraph is exempt from the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in     Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes.  For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
(34) Beginning January 1, 2000, personal property,     including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children.  This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December     31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines.  Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines.  This paragraph is exempt from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,     2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and     communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold     to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June     30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State.  The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38).  The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act.  Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal     property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through     December 31, 2029, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft. However, until January 1, 2024, this exemption excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films.
Beginning January 1, 2010 and continuing through     December 31, 2023, this exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. From January 1, 2024 through December 31, 2029, this exemption applies only to the use of qualifying tangible personal property by: (A) persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations; and (B) persons who engage in the modification, replacement, repair, and maintenance of aircraft engines or power plants without regard to whether or not those persons meet the qualifications of item (A).
The changes made to this paragraph (40) by Public Act     98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(41) Tangible personal property sold to a     public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December     31, 2026, menstrual pads, tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental     Purchase Agreement Occupation and Use Tax.  The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(44) Qualified tangible personal property used in the     construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity     shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of         buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:         electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of     Section 2-70.
(45)  Beginning January 1, 2020 and through December     31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act.  A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator.  Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act.  No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
(46) Beginning July 1, 2022, breast pumps, breast     pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(47) Tangible personal property sold by or on behalf     of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (47) is exempt from the provisions of Section 2-70. (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section 5-20, eff. 6-7-23.)
(Text of Section from P.A. 103-9, Article 15, Section 15-20)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,     including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
Farm machinery and equipment shall include precision     farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,     sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and     equipment also includes electrical power generation equipment used primarily for production agriculture.
This item (2) is exempt from the provisions of     Section 2-70.
(3) Until July 1, 2003, distillation machinery and     equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
(4) Until July 1, 2003 and beginning again September     1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
(5) A motor vehicle that is used for automobile     renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored     student organization affiliated with an elementary or secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of     the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair     association for use in conducting, operating, or promoting the county fair.
(9) Personal property sold to a not-for-profit arts     or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services.  These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
(10) Personal property sold by a corporation,     society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
(11) Personal property sold to a governmental body,     to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,     2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this  exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
(13) Proceeds from sales to owners, lessors, or     shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
(14) Machinery and equipment that will be used by the     purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.    The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately     stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
(16) Tangible personal property sold to a purchaser     if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
(17) Tangible personal property sold to a common     carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or     silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,     drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,     including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
(21) Until July 1, 2028, coal and aggregate     exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)  for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is     received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,     barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this     Section, a  motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state.  The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply     if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois.  The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act.  At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence.  In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale.  The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed     under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act,  if all of the following conditions are met:
(1) the aircraft leaves this State within 15 days         after the later of  either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
(2) the aircraft is not based or registered in         this State after the sale of the aircraft; and
(3) the seller retains in his or her books and         records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department,  certifying that the requirements of this item (25-7) are met.  The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or     otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
"Registered in this State" means an aircraft     registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
This paragraph (25-7) is exempt from the provisions     of Section 2-70.
(26) Semen used for artificial insemination of     livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with     and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)  for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized     for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(29) Personal property sold to a lessor who leases     the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold     at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code.  This paragraph is exempt from the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in     Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes.  For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
(34) Beginning January 1, 2000, personal property,     including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children.  This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December     31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines.  Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines.  This paragraph is exempt from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,     2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and     communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold     to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June     30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State.  The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38).  The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act.  Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal     property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through     December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (40) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(41) Tangible personal property sold to a     public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December     31, 2026, menstrual pads, tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental     Purchase Agreement Occupation and Use Tax.  The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(44) Qualified tangible personal property used in the     construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity     shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of         buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:         electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of     Section 2-70.
(45)  Beginning January 1, 2020 and through December     31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act.  A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator.  Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act.  No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
(46) Beginning July 1, 2022, breast pumps, breast     pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(47) Tangible personal property sold by or on behalf     of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (47) is exempt from the provisions of Section 2-70. (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 15, Section 15-20, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,     including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
Farm machinery and equipment shall include precision     farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,     sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals.  This item (2) is exempt from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and     equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
(4) Until July 1, 2003 and beginning again September     1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
(5) A motor vehicle that is used for automobile     renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored     student organization affiliated with an elementary or secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of     the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair     association for use in conducting, operating, or promoting the county fair.
(9) Personal property sold to a not-for-profit arts     or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services.  These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
(10) Personal property sold by a corporation,     society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
(11) Personal property sold to a governmental body,     to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,     2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this  exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
(13) Proceeds from sales to owners, lessors, or     shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
(14) Machinery and equipment that will be used by the     purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.    The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately     stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
(16) Tangible personal property sold to a purchaser     if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
(17) Tangible personal property sold to a common     carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or     silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,     drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,     including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
(21) Until July 1, 2028, coal and aggregate     exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)  for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is     received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,     barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this     Section, a  motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state.  The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply     if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois.  The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act.  At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence.  In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale.  The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed     under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act,  if all of the following conditions are met:
(1) the aircraft leaves this State within 15 days         after the later of  either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
(2) the aircraft is not based or registered in         this State after the sale of the aircraft; and
(3) the seller retains in his or her books and         records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department,  certifying that the requirements of this item (25-7) are met.  The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or     otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
"Registered in this State" means an aircraft     registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
This paragraph (25-7) is exempt from the provisions     of Section 2-70.
(26) Semen used for artificial insemination of     livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with     and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)  for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized     for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(29) Personal property sold to a lessor who leases     the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold     at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code.  This paragraph is exempt from the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in     Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes.  For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
(34) Beginning January 1, 2000, personal property,     including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children.  This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December     31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines.  Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines.  This paragraph is exempt from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,     2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and     communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold     to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June     30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State.  The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38).  The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act.  Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal     property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through     December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (40) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(41) Tangible personal property sold to a     public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December     31, 2026, menstrual pads, tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental     Purchase Agreement Occupation and Use Tax.  The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(44) Qualified tangible personal property used in the     construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity     shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of         buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:         electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of     Section 2-70.
(45)  Beginning January 1, 2020 and through December     31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act.  A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator.  Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act.  No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
(46) Beginning July 1, 2022, breast pumps, breast     pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(47) Tangible personal property sold by or on behalf     of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (47) is exempt from the provisions of Section 2-70. (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-384)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the sale of
the following tangible personal property are exempt from the tax imposed
by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,     including that manufactured on special order, certified by the purchaser to be used primarily for production agriculture or State or federal agricultural programs, including individual replacement parts for the machinery and equipment, including machinery and equipment purchased for lease, and including implements of husbandry defined in Section 1-130 of the Illinois Vehicle Code, farm machinery and agricultural chemical and fertilizer spreaders, and nurse wagons required to be registered under Section 3-809 of the Illinois Vehicle Code, but excluding other motor vehicles required to be registered under the Illinois Vehicle Code. Horticultural polyhouses or hoop houses used for propagating, growing, or overwintering plants shall be considered farm machinery and equipment under this item (2). Agricultural chemical tender tanks and dry boxes shall include units sold separately from a motor vehicle required to be licensed and units sold mounted on a motor vehicle required to be licensed, if the selling price of the tender is separately stated.
Farm machinery and equipment shall include precision     farming equipment that is installed or purchased to be installed on farm machinery and equipment including, but not limited to, tractors, harvesters, sprayers, planters, seeders, or spreaders. Precision farming equipment includes, but is not limited to, soil testing sensors, computers, monitors, software, global positioning and mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,     sensors, software, and related equipment used primarily in the computer-assisted operation of production agriculture facilities, equipment, and activities such as, but not limited to, the collection, monitoring, and correlation of animal and crop data for the purpose of formulating animal diets and agricultural chemicals.  This item (2) is exempt from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and     equipment, sold as a unit or kit, assembled or installed by the retailer, certified by the user to be used only for the production of ethyl alcohol that will be used for consumption as motor fuel or as a component of motor fuel for the personal use of the user, and not subject to sale or resale.
(4) Until July 1, 2003 and beginning again September     1, 2004 through August 30, 2014, graphic arts machinery and equipment, including repair and replacement parts, both new and used, and including that manufactured on special order or purchased for lease, certified by the purchaser to be used primarily for graphic arts production. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a graphic arts product. Beginning on July 1, 2017, graphic arts machinery and equipment is included in the manufacturing and assembling machinery and equipment exemption under paragraph (14).
(5) A motor vehicle that is used for automobile     renting, as defined in the Automobile Renting Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored     student organization affiliated with an elementary or secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of     the selling price of a passenger car the sale of which is subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair     association for use in conducting, operating, or promoting the county fair.
(9) Personal property sold to a not-for-profit arts     or cultural organization that establishes, by proof required by the Department by rule, that it has received an exemption under Section 501(c)(3) of the Internal Revenue Code and that is organized and operated primarily for the presentation or support of arts or cultural programming, activities, or services.  These organizations include, but are not limited to, music and dramatic arts organizations such as symphony orchestras and theatrical groups, arts and cultural service organizations, local arts councils, visual arts organizations, and media arts organizations. On and after July 1, 2001 (the effective date of Public Act 92-35), however, an entity otherwise eligible for this exemption shall not make tax-free purchases unless it has an active identification number issued by the Department.
(10) Personal property sold by a corporation,     society, association, foundation, institution, or organization, other than a limited liability company, that is organized and operated as a not-for-profit service enterprise for the benefit of persons 65 years of age or older if the personal property was not purchased by the enterprise for the purpose of resale by the enterprise.
(11) Except as otherwise provided in this Section,     personal property sold to a governmental body, to a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, or to a not-for-profit corporation, society, association, foundation, institution, or organization that has no compensated officers or employees and that is organized and operated primarily for the recreation of persons 55 years of age or older. A limited liability company may qualify for the exemption under this paragraph only if the limited liability company is organized and operated exclusively for educational purposes. On and after July 1, 1987, however, no entity otherwise eligible for this exemption shall make tax-free purchases unless it has an active identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,     2004, motor vehicles of the second division with a gross vehicle weight in excess of 8,000 pounds that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, 2004 and through June 30, 2005, the use in this State of motor vehicles of the second division: (i) with a gross vehicle weight rating in excess of 8,000 pounds; (ii) that are subject to the commercial distribution fee imposed under Section 3-815.1 of the Illinois Vehicle Code; and (iii) that are primarily used for commercial purposes. Through June 30, 2005, this  exemption applies to repair and replacement parts added after the initial purchase of such a motor vehicle if that motor vehicle is used in a manner that would qualify for the rolling stock exemption otherwise provided for in this Act. For purposes of this paragraph, "used for commercial purposes" means the transportation of persons or property in furtherance of any commercial or industrial enterprise whether for-hire or not.
(13) Proceeds from sales to owners, lessors, or     shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce and equipment operated by a telecommunications provider, licensed as a common carrier by the Federal Communications Commission, which is permanently installed in or affixed to aircraft moving in interstate commerce.
(14) Machinery and equipment that will be used by the     purchaser, or a lessee of the purchaser, primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, whether the sale or lease is made directly by the manufacturer or by some other person, whether the materials used in the process are owned by the manufacturer or some other person, or whether the sale or lease is made apart from or as an incident to the seller's engaging in the service occupation of producing machines, tools, dies, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser. The exemption provided by this paragraph (14) does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.    The provisions of Public Act 98-583 are declaratory of existing law as to the meaning and scope of this exemption. Beginning on July 1, 2017, the exemption provided by this paragraph (14) includes, but is not limited to, graphic arts machinery and equipment, as defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately     stated on customers' bills for purchase and consumption of food and beverages, to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed.
(16) Tangible personal property sold to a purchaser     if the purchaser is exempt from use tax by operation of federal law. This paragraph is exempt from the provisions of Section 2-70.
(17) Tangible personal property sold to a common     carrier by rail or motor that receives the physical possession of the property in Illinois and that transports the property, or shares with another common carrier in the transportation of the property, out of Illinois on a standard uniform bill of lading showing the seller of the property as the shipper or consignor of the property to a destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or     silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,     drilling, and production equipment, including (i) rigs and parts of rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and tubular goods, including casing and drill strings, (iii) pumps and pump-jack units, (iv) storage tanks and flow lines, (v) any individual replacement part for oil field exploration, drilling, and production equipment, and (vi) machinery and equipment purchased for lease; but excluding motor vehicles required to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,     including repair and replacement parts, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily for photoprocessing, and including photoprocessing machinery and equipment purchased for lease.
(21) Until July 1, 2028, coal and aggregate     exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment, including replacement parts and equipment, and including equipment purchased for lease, but excluding motor vehicles required to be registered under the Illinois Vehicle Code. The changes made to this Section by Public Act 97-767 apply on and after July 1, 2003, but no claim for credit or refund is allowed on or after August 16, 2013 (the effective date of Public Act 98-456)  for such taxes paid during the period beginning July 1, 2003 and ending on August 16, 2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products     sold to or used by an air carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight that (i) is engaged in foreign trade or is engaged in trade between the United States and any of its possessions and (ii) transports at least one individual or package for hire from the city of origination to the city of final destination on the same aircraft, without regard to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is     received by a florist who is located outside Illinois, but who has a florist located in Illinois deliver the property to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,     barges, or vessels that are used primarily in or for the transportation of property or the conveyance of persons for hire on rivers bordering on this State if the fuel is delivered by the seller to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this     Section, a  motor vehicle sold in this State to a nonresident even though the motor vehicle is delivered to the nonresident in this State, if the motor vehicle is not to be titled in this State, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state.  The issuance of the drive-away permit or having the out-of-state registration plates to be transferred is prima facie evidence that the motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply     if the state in which the motor vehicle will be titled does not allow a reciprocal exemption for a motor vehicle sold and delivered in that state to an Illinois resident but titled in Illinois.  The tax collected under this Act on the sale of a motor vehicle in this State to a resident of another state that does not allow a reciprocal exemption shall be imposed at a rate equal to the state's rate of tax on taxable property in the state in which the purchaser is a resident, except that the tax shall not exceed the tax that would otherwise be imposed under this Act.  At the time of the sale, the purchaser shall execute a statement, signed under penalty of perjury, of his or her intent to title the vehicle in the state in which the purchaser is a resident within 30 days after the sale and of the fact of the payment to the State of Illinois of tax in an amount equivalent to the state's rate of tax on taxable property in his or her state of residence and shall submit the statement to the appropriate tax collection agency in his or her state of residence.  In addition, the retailer must retain a signed copy of the statement in his or her records. Nothing in this item shall be construed to require the removal of the vehicle from this state following the filing of an intent to title the vehicle in the purchaser's state of residence if the purchaser titles the vehicle in his or her state of residence within 30 days after the date of sale.  The tax collected under this Act in accordance with this item (25-5) shall be proportionately distributed as if the tax were collected at the 6.25% general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed     under this Act on the sale of an aircraft, as defined in Section 3 of the Illinois Aeronautics Act,  if all of the following conditions are met:
(1) the aircraft leaves this State within 15 days         after the later of  either the issuance of the final billing for the sale of the aircraft, or the authorized approval for return to service, completion of the maintenance record entry, and completion of the test flight and ground test for inspection, as required by 14 CFR 91.407;
(2) the aircraft is not based or registered in         this State after the sale of the aircraft; and
(3) the seller retains in his or her books and         records and provides to the Department a signed and dated certification from the purchaser, on a form prescribed by the Department,  certifying that the requirements of this item (25-7) are met.  The certificate must also include the name and address of the purchaser, the address of the location where the aircraft is to be titled or registered, the address of the primary physical location of the aircraft, and other information that the Department may reasonably require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or     otherwise used, excluding post-sale customizations as defined in this Section, for 10 or more days in each 12-month period immediately following the date of the sale of the aircraft.
"Registered in this State" means an aircraft     registered with the Department of Transportation, Aeronautics Division, or titled or registered with the Federal Aviation Administration to an address located in this State.
This paragraph (25-7) is exempt from the provisions     of Section 2-70.
(26) Semen used for artificial insemination of     livestock for direct agricultural production.
(27) Horses, or interests in horses, registered with     and meeting the requirements of any of the Arabian Horse Club Registry of America, Appaloosa Horse Club, American Quarter Horse Association, United States Trotting Association, or Jockey Club, as appropriate, used for purposes of breeding or racing for prizes. This item (27) is exempt from the provisions of Section 2-70, and the exemption provided for under this item (27) applies for all periods beginning May 30, 1995, but no claim for credit or refund is allowed on or after January 1, 2008 (the effective date of Public Act 95-88)  for such taxes paid during the period beginning May 30, 2000 and ending on January 1, 2008 (the effective date of Public Act 95-88).
(28) Computers and communications equipment utilized     for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(29) Personal property sold to a lessor who leases     the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is donated for disaster relief to be used in a State or federally declared disaster area in Illinois or bordering Illinois by a manufacturer or retailer that is registered in this State to a corporation, society, association, foundation, or institution that has been issued a sales tax exemption identification number by the Department that assists victims of the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after     December 31, 1995 and ending with taxable years ending on or before December 31, 2004, personal property that is used in the performance of infrastructure repairs in this State, including but not limited to municipal roads and streets, access roads, bridges, sidewalks, waste disposal systems, water and sewer line extensions, water distribution and purification facilities, storm water drainage and retention facilities, and sewage treatment facilities, resulting from a State or federally declared disaster in Illinois or bordering Illinois when such repairs are initiated on facilities located in the declared disaster area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold     at a "game breeding and hunting preserve area" as that term is used in the Wildlife Code.  This paragraph is exempt from the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in     Section 1-146 of the Illinois Vehicle Code, that is donated to a corporation, limited liability company, society, association, foundation, or institution that is determined by the Department to be organized and operated exclusively for educational purposes.  For purposes of this exemption, "a corporation, limited liability company, society, association, foundation, or institution organized and operated exclusively for educational purposes" means all tax-supported public schools, private schools that offer systematic instruction in useful branches of learning by methods common to public schools and that compare favorably in their scope and intensity with the course of study presented in tax-supported schools, and vocational or technical schools or institutes organized and operated exclusively to provide a course of study of not less than 6 weeks duration and designed to prepare individuals to follow a trade or to pursue a manual, technical, mechanical, industrial, business, or commercial occupation.
(34) Beginning January 1, 2000, personal property,     including food, purchased through fundraising events for the benefit of a public or private elementary or secondary school, a group of those schools, or one or more school districts if the events are sponsored by an entity recognized by the school district that consists primarily of volunteers and includes parents and teachers of the school children.  This paragraph does not apply to fundraising events (i) for the benefit of private home instruction or (ii) for which the fundraising entity purchases the personal property sold at the events from another individual or entity that sold the property for the purpose of resale by the fundraising entity and that profits from the sale to the fundraising entity. This paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December     31, 2001, new or used automatic vending machines that prepare and serve hot food and beverages, including coffee, soup, and other items, and replacement parts for these machines.  Beginning January 1, 2002 and through June 30, 2003, machines and parts for machines used in commercial, coin-operated amusement and vending business if a use or occupation tax is paid on the gross receipts derived from the use of the commercial, coin-operated amusement and vending machines.  This paragraph is exempt from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,     2016, food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics, for human use, when purchased for use by a person receiving medical assistance under Article V of the Illinois Public Aid Code who resides in a licensed long-term care facility, as defined in the Nursing Home Care Act, or a licensed facility as defined in the ID/DD Community Care Act, the MC/DD Act, or the Specialized Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and     communications equipment utilized for any hospital purpose and equipment used in the diagnosis, analysis, or treatment of hospital patients sold to a lessor who leases the equipment, under a lease of one year or longer executed or in effect at the time of the purchase, to a hospital that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold     to a lessor who leases the property, under a lease of one year or longer executed or in effect at the time of the purchase, to a governmental body that has been issued an active tax exemption identification number by the Department under Section 1g of this Act.  This paragraph is exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June     30, 2016, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption thereafter solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and thereafter used or consumed solely outside this State.  The Director of Revenue shall, pursuant to rules adopted in accordance with the Illinois Administrative Procedure Act, issue a permit to any taxpayer in good standing with the Department who is eligible for the exemption under this paragraph (38).  The permit issued under this paragraph (38) shall authorize the holder, to the extent and in the manner specified in the rules adopted under this Act, to purchase tangible personal property from a retailer exempt from the taxes imposed by this Act.  Taxpayers shall maintain all necessary books and records to substantiate the use and consumption of all such tangible personal property outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal     property used in the construction or maintenance of a community water supply, as defined under Section 3.145 of the Environmental Protection Act, that is operated by a not-for-profit corporation that holds a valid water supply permit issued under Title IV of the Environmental Protection Act. This paragraph is exempt from the provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through     December 31, 2024, materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft. This exemption includes consumable supplies used in the modification, refurbishment, completion, replacement, repair, and maintenance of aircraft, but excludes any materials, parts, equipment, components, and consumable supplies used in the modification, replacement, repair, and maintenance of aircraft engines or power plants, whether such engines or power plants are installed or uninstalled upon any such aircraft. "Consumable supplies" include, but are not limited to, adhesive, tape, sandpaper, general purpose lubricants, cleaning solution, latex gloves, and protective films. This exemption applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, replace, or maintain an aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. The exemption does not include aircraft operated by a commercial air carrier providing scheduled passenger air service pursuant to authority issued under Part 121 or Part 129 of the Federal Aviation Regulations. The changes made to this paragraph (40) by Public Act 98-534 are declarative of existing law. It is the intent of the General Assembly that the exemption under this paragraph (40) applies continuously from January 1, 2010 through December 31, 2024; however, no claim for credit or refund is allowed for taxes paid as a result of the disallowance of this exemption on or after January 1, 2015 and prior to February 5, 2020 (the effective date of Public Act 101-629).
(41) Tangible personal property sold to a     public-facilities corporation, as described in Section 11-65-10 of the Illinois Municipal Code, for purposes of constructing or furnishing a municipal convention hall, but only if the legal title to the municipal convention hall is transferred to the municipality without any further consideration by or on behalf of the municipality at the time of the completion of the municipal convention hall or upon the retirement or redemption of any bonds or other debt instruments issued by the public-facilities corporation in connection with the development of the municipal convention hall.  This exemption includes existing public-facilities corporations as provided in Section 11-65-25 of the Illinois Municipal Code.  This paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December     31, 2026, menstrual pads, tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental     Purchase Agreement Occupation and Use Tax.  The purchaser must certify that the item is purchased to be rented subject to a rental purchase agreement, as defined in the Rental Purchase Agreement Act, and provide proof of registration under the Rental Purchase Agreement Occupation and Use Tax Act. This paragraph is exempt from the provisions of Section 2-70.
(44) Qualified tangible personal property used in the     construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant.  Data centers that would have qualified for a certificate of exemption prior to January 1, 2020 had Public Act 101-31 been in effect, may apply for and obtain an exemption for subsequent purchases of computer equipment or enabling software purchased or leased to upgrade, supplement, or replace computer equipment or enabling software purchased or leased in the original investment that would have qualified.
The Department of Commerce and Economic Opportunity     shall grant a certificate of exemption under this item (44) to qualified data centers as defined by Section 605-1025 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of         buildings rehabilitated or constructed to house working servers in one physical location or multiple sites within the State of Illinois.
"Qualified tangible personal property" means:         electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center.  The term "qualified tangible personal property" also includes building materials physically incorporated into the qualifying data center.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department of Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of     Section 2-70.
(45)  Beginning January 1, 2020 and through December     31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due under this Act but for which use tax has been collected and remitted to the Department by a marketplace facilitator under Section 2d of the Use Tax Act are exempt from tax under this Act.  A marketplace seller claiming this exemption shall maintain books and records demonstrating that the use tax on such sales has been collected and remitted by a marketplace facilitator.  Marketplace sellers that have properly remitted tax under this Act on such sales may file a claim for credit as provided in Section 6 of this Act.  No claim is allowed, however, for such taxes for which a credit or refund has been issued to the marketplace facilitator under the Use Tax Act, or for which the marketplace facilitator has filed a claim for credit or refund under the Use Tax Act.
(46) Beginning July 1, 2022, breast pumps, breast     pump collection and storage supplies, and breast pump kits. This item (46) is exempt from the provisions of Section 2-70. As used in this item (46):
"Breast pump" means an electrically controlled or     manually controlled pump device designed or marketed to be used to express milk from a human breast during lactation, including the pump device and any battery, AC adapter, or other power supply unit that is used to power the pump device and is packaged and sold with the pump device at the time of sale.
"Breast pump collection and storage supplies" means     items of tangible personal property designed or marketed to be used in conjunction with a breast pump to collect milk expressed from a human breast and to store collected milk until it is ready for consumption.
"Breast pump collection and storage supplies"     includes, but is not limited to: breast shields and breast shield connectors; breast pump tubes and tubing adapters; breast pump valves and membranes; backflow protectors and backflow protector adaptors; bottles and bottle caps specific to the operation of the breast pump; and breast milk storage bags.
"Breast pump collection and storage supplies" does     not include: (1) bottles and bottle caps not specific to the operation of the breast pump; (2) breast pump travel bags and other similar carrying accessories, including ice packs, labels, and other similar products; (3) breast pump cleaning supplies; (4) nursing bras, bra pads, breast shells, and other similar products; and (5) creams, ointments, and other similar products that relieve breastfeeding-related symptoms or conditions of the breasts or nipples, unless sold as part of a breast pump kit that is pre-packaged by the breast pump manufacturer or distributor.
"Breast pump kit" means a kit that: (1) contains no     more than a breast pump, breast pump collection and storage supplies, a rechargeable battery for operating the breast pump, a breastmilk cooler, bottle stands, ice packs, and a breast pump carrying case; and (2) is pre-packaged as a breast pump kit by the breast pump manufacturer or distributor.
(47) Tangible personal property sold by or on behalf     of the State Treasurer pursuant to the Revised Uniform Unclaimed Property Act.  This item (47) is exempt from the provisions of Section 2-70.
(48) Beginning on January 1, 2024, tangible personal     property purchased by an active duty member of the armed forces of the United States who presents valid military identification and purchases the property using a form of payment where the federal government is the payor. The member of the armed forces must complete, at the point of sale, a form prescribed by the Department of Revenue documenting that the transaction is eligible for the exemption under this paragraph.  Retailers must keep the form as documentation of the exemption in their records for a period of not less than 6 years. "Armed forces of the United States" means the United States Army, Navy, Air Force, Marine Corps, or Coast Guard. This paragraph is exempt from the provisions of Section 2-70. (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1026, eff. 5-27-22; 103-384, eff. 1-1-24.)
(35 ILCS 120/2-5.5)
Sec. 2-5.5. Food and drugs sold by not-for-profit organizations; exemption. The Department shall not collect the 1% tax imposed under this Act from any not-for-profit organization that sells
food in a food distribution program at a price below the retail cost of the
food to purchasers who, as a condition of participation in the program, are
required to perform community service, located in a county or municipality that
notifies the Department, in writing, that the county or municipality does not
want the tax to be collected from any of such organizations located
in the county or municipality.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 120/2-6)
Sec. 2-6. Building materials exemption; intermodal terminal facility areas. Each retailer that makes a qualified sale of  building materials to be incorporated into real estate in a redevelopment project area within an intermodal terminal facility area in accordance with Section 11-74.4-3.1 of the Illinois Municipal Code by remodeling, rehabilitating, or new construction may deduct receipts from those sales when calculating the tax imposed by this Act.  For purposes of this Section, "qualified sale" means a sale of building materials that will be incorporated into real estate as part of an industrial or commercial project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the corporate authorities of the municipality in which the building project is located.  To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the corporate authorities of the municipality in which the real estate  into which the building materials will be incorporated is located.  The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:
(1)   A statement that the commercial or industrial     project identified in the Certificate meets all the requirements of the jurisdiction in which the project is located.
(2)   The location or address of the building project.
(3)   The signature of the chief executive officer of     the municipality in which the building project is located, or the chief executive officer's delegate.
In addition, the retailer must obtain a certificate from the purchaser that contains all of the following:
(1)   A statement  that the building materials are     being purchased for incorporation into real estate located in an intermodal terminal facility area included in a redevelopment project area in accordance with Section 11-74.4-3.1 of the Illinois Municipal Code.
(2)   The location or address of the real estate into     which the building materials will be incorporated.
(3)   The name of the intermodal terminal facility     area in which that real estate is located.
(4)   A description of the building materials being     purchased.
(5)   The purchaser's signature and date of purchase.     The provisions of this Section are exempt from Section 2-70.
(Source: P.A. 94-781, eff. 5-19-06.)
(35 ILCS 120/2-7)
Sec. 2-7. 
		Aggregate manufacturing exemption. 
		Through June 30, 2003,
gross receipts from proceeds
from the sale of aggregate exploration, mining, offhighway hauling, processing,
maintenance, and reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but excluding motor
vehicles required to be registered under the Illinois Vehicle Code, are exempt
from the tax imposed by this Act.
(Source: P.A. 92-603, eff. 6-28-02; 93-24, eff. 6-20-03.)
(35 ILCS 120/2-8)
Sec. 2-8. Sales tax holiday items.
(a)  Any tangible personal property described in this subsection is a sales tax holiday item and qualifies for the
1.25% reduced rate of tax for the period set forth in Section 2-10 of this Act (hereinafter
referred to as the Sales Tax Holiday Period). The reduced rate on these items shall be
administered under the provisions of subsection (b) of this Section. The following items are subject to the
reduced rate:
(1)  Clothing items that each have a retail selling     price of less than $125.
"Clothing" means, unless otherwise specified in this     Section, all human wearing apparel suitable for general use. "Clothing" does not include clothing accessories, protective equipment, or sport or recreational equipment. "Clothing" includes, but is not limited to: household and shop aprons; athletic supporters; bathing suits and caps; belts and suspenders; boots; coats and jackets; ear muffs; footlets; gloves and mittens for general use; hats and caps; hosiery; insoles for shoes; lab coats; neckties; overshoes; pantyhose; rainwear; rubber pants; sandals; scarves; shoes and shoelaces; slippers; sneakers; socks and stockings; steel-toed shoes; underwear; and school uniforms.
"Clothing accessories" means, but is not limited to:     briefcases; cosmetics; hair notions, including, but not limited to barrettes, hair bows, and hair nets; handbags; handkerchiefs; jewelry; non-prescription sunglasses; umbrellas; wallets; watches; and wigs and hair pieces.
"Protective equipment" means, but is not limited to:     breathing masks; clean room apparel and equipment; ear and hearing protectors; face shields; hard hats; helmets; paint or dust respirators; protective gloves; safety glasses and goggles; safety belts; tool belts; and welder's gloves and masks.
"Sport or recreational equipment" means, but is not     limited to: ballet and tap shoes; cleated or spiked athletic shoes; gloves, including, but not limited to, baseball, bowling, boxing, hockey, and golf gloves; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder pads; ski boots; waders; and wetsuits and fins.
(2)  School supplies.  "School supplies" means,     unless otherwise specified in this Section, items used by a student in a course of study.  The purchase of school supplies for use by persons other than students for use in a course of study are not eligible for the reduced rate of tax. "School supplies" do not include school art supplies; school instructional materials; cameras; film and memory cards; videocameras, tapes, and videotapes; computers; cell phones; Personal Digital Assistants (PDAs); handheld electronic schedulers; and school computer supplies.
"School supplies" includes, but is not limited to:     binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; expandable, pocket, plastic, and manila folders; glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper, including loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencils; pencil leads; pens; ink and ink refills for pens; pencil boxes and other school supply boxes; pencil sharpeners; protractors; rulers; scissors; and writing tablets.
"School art supply" means an item commonly used by a     student in a course of study for artwork and includes only the following items: clay and glazes; acrylic, tempera, and oil paint; paintbrushes for artwork; sketch and drawing  pads; and watercolors.
"School instructional material" means written     material commonly used by a student in a course of study as a reference and to learn the subject being taught and includes only the following items: reference books; reference maps and globes; textbooks; and workbooks.
"School computer supply" means an item commonly used     by a student in a course of study in which a computer is used and applies only to the following items: flashdrives and other computer data storage devices; data storage media, such as diskettes and compact disks; boxes and cases for disk storage; external ports or drives; computer cases; computer cables; computer printers; and printer cartridges, toner, and ink.
(b)  Administration. Notwithstanding any other provision of this Act, the reduced rate of
tax under Section 3-10 of this Act for clothing and school supplies shall be
administered by the Department under the provisions of this subsection (b).
(1)  Bundled sales.  Items that qualify for the     reduced rate of tax that are bundled together with items that do not qualify for the reduced rate of tax and that are sold for one itemized price will be subject to the reduced rate of tax only if the value of the items that qualify for the reduced rate of tax exceeds the value of the items that do not qualify for the reduced rate of tax.
(2)  Coupons and discounts.  An unreimbursed discount     by the seller reduces the sales price of the property so that the discounted sales price determines whether the sales price is within a sales tax holiday price threshold. A coupon or other reduction in the sales price is treated as a discount if the seller is not reimbursed for the coupon or reduction amount by a third party.
(3)  Splitting of items normally sold together.      Articles that are normally sold as a single unit must continue to be sold in that manner. Such articles cannot be priced separately and sold as individual items in order to obtain the reduced rate of tax. For example, a pair of shoes cannot have each shoe sold separately so that the sales price of each shoe is within a sales tax holiday price threshold.
(4)  Rain checks.  A rain check is a procedure that     allows a customer to purchase an item at a certain price at a later time because the particular item was out of stock. Eligible property that customers purchase during the Sales Tax Holiday Period with the use of a rain check will qualify for the reduced rate of tax regardless of when the rain check was issued. Issuance of a rain check during the Sales Tax Holiday Period will not qualify eligible property for the reduced rate of tax if the property is actually purchased after the Sales Tax Holiday Period.
(5)  Exchanges.  The procedure for an exchange in     regards to a sales tax holiday is as follows:
(A)  If a customer purchases an item of eligible         property during the Sales Tax Holiday Period, but later exchanges the item for a similar eligible item, even if a different size, different color, or other feature, no additional tax is due even if the exchange is made after the Sales Tax Holiday Period.
(B)  If a customer purchases an item of eligible         property during the Sales Tax Holiday Period, but after the Sales Tax Holiday Period has ended, the customer returns the item and receives credit on the purchase of a different item, the 6.25% general merchandise sales tax rate is due on the sale of the newly purchased item.
(C)  If a customer purchases an item of eligible         property before the Sales Tax Holiday Period, but during the Sales Tax Holiday Period the customer returns the item and receives credit on the purchase of a different item of eligible property, the reduced rate of tax is due on the sale of the new item if the new item is purchased during the Sales Tax Holiday Period.
(6)  (Blank).
(7)  Order date and back orders.  For the purpose of     a sales tax holiday, eligible property qualifies for the reduced rate of tax if: (i)  the item is both delivered to and paid for by the customer during the Sales Tax Holiday Period or (ii) the customer orders and pays for the item and the seller accepts the order during the Sales Tax Holiday Period for immediate shipment, even if delivery is made after the Sales Tax Holiday Period.  The seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an "in date" stamp on an order or assignment of an "order number" to an order within the Sales Tax Holiday Period. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment notwithstanding that the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.
(8)  Returns.  For a 60-day period immediately after     the Sales Tax Holiday Period, if a customer returns an item that would qualify for the reduced rate of tax, credit for or refund of sales tax shall be given only at the reduced rate unless the customer provides a receipt or invoice that shows tax was paid at the 6.25% general merchandise rate, or the seller has sufficient documentation to show that tax was paid at the 6.25% general merchandise rate on the specific item. This 60-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that the appropriate sales tax rate was paid on returned merchandise. The 60-day period is not intended to change a seller's policy on the time period during which the seller will accept returns.
(c)  The Department may implement the provisions of this Section through the use of
emergency rules, along with permanent rules filed concurrently with such
emergency rules, in accordance with the provisions of Section 5-45 of the Illinois
Administrative Procedure Act. For purposes of the Illinois Administrative
Procedure Act, the adoption of rules to implement the provisions of this Section shall
be deemed an emergency and necessary for the public interest, safety, and welfare.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 120/2-9)
(Text of Section from P.A. 102-700)
Sec. 2-9. Hospital exemption.
(a)  Tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act  and meets the criteria for an exemption under this Section, is exempt from taxation under this Act.
(b)  A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption  is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois.
(c)  The following services and activities shall be considered for purposes of making the calculations required by subsection (b):
(1) Charity care.  Free or discounted services     provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
(2) Health services to low-income and underserved     individuals.  Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals.  Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for  or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention;  free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
(3) Subsidy of State or local governments.  Direct or     indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
(4) Support for State health care programs for     low-income individuals.  At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program.  The amount of subsidy for purposes of this item (4) is calculated in the same manner as  unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
(5) Dual-eligible subsidy.  The amount of subsidy     provided to government by treating dual-eligible Medicare/Medicaid patients.  The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
(6) Relief of the burden of government  related to       health care.  Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals.  Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals.  The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs.  Such costs for the numerator and denominator shall be determined by multiplying  gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I).  In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
(7) Any other activity by the relevant hospital     entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
(d)  The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b).  For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year.  If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for     consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
(2) the amount of unreimbursed costs and the amount     of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
(f) (Blank).
(g) Estimation of Exempt Property Tax Liability.  The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the     estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
(A) the lesser of (i) the actual assessed value,         if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
(B) the applicable State equalization rate         (yielding the equalized assessed value), by
(C)  the applicable tax rate.
(2) The estimated assessed value of the exempt     portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
(A) The "estimated fair market value of buildings         on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average  building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
(B) Depreciation, for purposes of calculating the         estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings.  If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
(C) The estimated assessed value of the land         portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
(3) The assessment factor, State equalization rate,     and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
(4) The method utilized to calculate estimated     property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
(h)  For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,     building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
(2) "Hospital owner" means a not-for-profit     corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
(3)  "Hospital affiliate" means any corporation,     partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
(4) "Hospital system" means a hospital and one or     more other hospitals or hospital affiliates related by common control or ownership.
(5) "Control" relating to hospital owners, hospital     affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
(6) "Hospital applicant" means a hospital owner or     hospital affiliate that files an application for an exemption or renewal of exemption  under this Section.
(7) "Relevant hospital entity" means (A) the hospital     owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
(8) "Subject property" means property used for the     calculation under subsection (b) of this Section.
(9) "Hospital year" means the fiscal year of the     relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(k) This Section is exempt from the provisions of Section 2-70.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section from P.A. 102-886)
Sec. 2-9. Hospital exemption.
(a)  Until July 1, 2027, tangible personal property sold to or used by a hospital owner that owns one or more hospitals licensed under the Hospital Licensing Act or operated under the University of Illinois Hospital Act, or a hospital affiliate that is not already exempt under another provision of this Act  and meets the criteria for an exemption under this Section, is exempt from taxation under this Act.
(b)  A hospital owner or hospital affiliate satisfies the conditions for an exemption under this Section if the value of qualified services or activities listed in subsection (c) of this Section for the hospital year equals or exceeds the relevant hospital entity's estimated property tax liability, without regard to any property tax exemption granted under Section 15-86 of the Property Tax Code, for the calendar year in which exemption or renewal of exemption  is sought. For purposes of making the calculations required by this subsection (b), if the relevant hospital entity is a hospital owner that owns more than one hospital, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities relating to the hospital that includes the subject property, and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to the properties comprising that hospital. In the case of a multi-state hospital system or hospital affiliate, the value of the services or activities listed in subsection (c) shall be calculated on the basis of only those services and activities that occur in Illinois and the relevant hospital entity's estimated property tax liability shall be calculated only with respect to its property located in Illinois.
(c)  The following services and activities shall be considered for purposes of making the calculations required by subsection (b):
(1) Charity care.  Free or discounted services     provided pursuant to the relevant hospital entity's financial assistance policy, measured at cost, including discounts provided under the Hospital Uninsured Patient Discount Act.
(2) Health services to low-income and underserved     individuals.  Other unreimbursed costs of the relevant hospital entity for providing without charge, paying for, or subsidizing goods, activities, or services for the purpose of addressing the health of low-income or underserved individuals.  Those activities or services may include, but are not limited to: financial or in-kind support to affiliated or unaffiliated hospitals, hospital affiliates, community clinics, or programs that treat low-income or underserved individuals; paying for  or subsidizing health care professionals who care for low-income or underserved individuals; providing or subsidizing outreach or educational services to low-income or underserved individuals for disease management and prevention;  free or subsidized goods, supplies, or services needed by low-income or underserved individuals because of their medical condition; and prenatal or childbirth outreach to low-income or underserved persons.
(3) Subsidy of State or local governments.  Direct or     indirect financial or in-kind subsidies of State or local governments by the relevant hospital entity that pay for or subsidize activities or programs related to health care for low-income or underserved individuals.
(4) Support for State health care programs for     low-income individuals.  At the election of the hospital applicant for each applicable year, either (A) 10% of payments to the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) under Medicaid or other means-tested programs, including, but not limited to, General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program or (B) the amount of subsidy provided by the relevant hospital entity and  any hospital affiliate designated by the relevant hospital entity (provided that such hospital affiliate's operations provide financial or operational support for or receive financial or operational support from the relevant hospital entity) to State or local government in treating Medicaid recipients and recipients of means-tested programs, including but not limited to General Assistance, the Covering ALL KIDS Health Insurance Act, and the State Children's Health Insurance Program.  The amount of subsidy for purposes of this item (4) is calculated in the same manner as  unreimbursed costs are calculated for Medicaid and other means-tested government programs in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly.
(5) Dual-eligible subsidy.  The amount of subsidy     provided to government by treating dual-eligible Medicare/Medicaid patients.  The amount of subsidy for purposes of this item (5) is calculated by multiplying the relevant hospital entity's unreimbursed costs for Medicare, calculated in the same manner as determined in the Schedule H of IRS Form 990 in effect on the effective date of this amendatory Act of the 97th General Assembly, by the relevant hospital entity's ratio of dual-eligible patients to total Medicare patients.
(6) Relief of the burden of government  related to       health care.  Except to the extent otherwise taken into account in this subsection, the portion of unreimbursed costs of the relevant hospital entity attributable to providing, paying for, or subsidizing goods, activities, or services that relieve the burden of government related to health care for low-income individuals.  Such activities or services shall include, but are not limited to, providing emergency, trauma, burn, neonatal, psychiatric, rehabilitation, or other special services; providing medical education; and conducting medical research or training of health care professionals.  The portion of those unreimbursed costs attributable to benefiting low-income individuals shall be determined using the ratio calculated by adding the relevant hospital entity's costs attributable to charity care, Medicaid, other means-tested government programs, Medicare patients with disabilities under age 65, and dual-eligible Medicare/Medicaid patients and dividing that total by the relevant hospital entity's total costs.  Such costs for the numerator and denominator shall be determined by multiplying  gross charges by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I).  In the case of emergency services, the ratio shall be calculated using costs (gross charges multiplied by the cost to charge ratio taken from the hospital's most recently filed Medicare cost report (CMS 2252-10 Worksheet, Part I)) of patients treated in the relevant hospital entity's emergency department.
(7) Any other activity by the relevant hospital     entity that the Department determines relieves the burden of government or addresses the health of low-income or underserved individuals.
(d)  The hospital applicant shall include information in its exemption application establishing that it satisfies the requirements of subsection (b).  For purposes of making the calculations required by subsection (b), the hospital applicant may for each year elect to use either (1) the value of the services or activities listed in subsection (e) for the hospital year or (2) the average value of those services or activities for the 3 fiscal years ending with the hospital year.  If the relevant hospital entity has been in operation for less than 3 completed fiscal years, then the latter calculation, if elected, shall be performed on a pro rata basis.
(e) For purposes of making the calculations required by this Section:
(1) particular services or activities eligible for     consideration under any of the paragraphs (1) through (7) of subsection (c) may not be counted under more than one of those paragraphs; and
(2) the amount of unreimbursed costs and the amount     of subsidy shall not be reduced by restricted or unrestricted payments received by the relevant hospital entity as contributions deductible under Section 170(a) of the Internal Revenue Code.
(f) (Blank).
(g) Estimation of Exempt Property Tax Liability.  The estimated property tax liability used for the determination in subsection (b) shall be calculated as follows:
(1) "Estimated property tax liability" means the     estimated dollar amount of property tax that would be owed, with respect to the exempt portion of each of the relevant hospital entity's properties that are already fully or partially exempt, or for which an exemption in whole or in part is currently being sought, and then aggregated as applicable, as if the exempt portion of those properties were subject to tax, calculated with respect to each such property by multiplying:
(A) the lesser of (i) the actual assessed value,         if any, of the portion of the property for which an exemption is sought or (ii) an estimated assessed value of the exempt portion of such property as determined in item (2) of this subsection (g), by
(B) the applicable State equalization rate         (yielding the equalized assessed value), by
(C)  the applicable tax rate.
(2) The estimated assessed value of the exempt     portion of the property equals the sum of (i) the estimated fair market value of buildings on the property, as determined in accordance with subparagraphs (A) and (B) of this item (2), multiplied by the applicable assessment factor, and (ii) the estimated assessed value of the land portion of the property, as determined in accordance with subparagraph (C).
(A) The "estimated fair market value of buildings         on the property" means the replacement value of any exempt portion of buildings on the property, minus depreciation, determined utilizing the cost replacement method whereby the exempt square footage of all such buildings is multiplied by the replacement cost per square foot for Class A Average  building found in the most recent edition of the Marshall & Swift Valuation Services Manual, adjusted by any appropriate current cost and local multipliers.
(B) Depreciation, for purposes of calculating the         estimated fair market value of buildings on the property, is applied by utilizing a weighted mean life for the buildings based on original construction and assuming a 40-year life for hospital buildings and the applicable life for other types of buildings as specified in the American Hospital Association publication "Estimated Useful Lives of Depreciable Hospital Assets". In the case of hospital buildings, the remaining life is divided by 40 and this ratio is multiplied by the replacement cost of the buildings to obtain an estimated fair market value of buildings.  If a hospital building is older than 35 years, a remaining life of 5 years for residual value is assumed; and if a building is less than 8 years old, a remaining life of 32 years is assumed.
(C) The estimated assessed value of the land         portion of the property shall be determined by multiplying (i) the per square foot average of the assessed values of three parcels of land (not including farm land, and excluding the assessed value of the improvements thereon) reasonably comparable to the property, by (ii) the number of square feet comprising the exempt portion of the property's land square footage.
(3) The assessment factor, State equalization rate,     and tax rate (including any special factors such as Enterprise Zones) used in calculating the estimated property tax liability shall be for the most recent year that is publicly available from the applicable chief county assessment officer or officers at least 90 days before the end of the hospital year.
(4) The method utilized to calculate estimated     property tax liability for purposes of this Section 15-86 shall not be utilized for the actual valuation, assessment, or taxation of property pursuant to the Property Tax Code.
(h)  For the purpose of this Section, the following terms shall have the meanings set forth below:
(1) "Hospital" means any institution, place,     building, buildings on a campus, or other health care facility located in Illinois that is licensed under the Hospital Licensing Act and has a hospital owner.
(2) "Hospital owner" means a not-for-profit     corporation that is the titleholder of a hospital, or the owner of the beneficial interest in an Illinois land trust that is the titleholder of a hospital.
(3)  "Hospital affiliate" means any corporation,     partnership, limited partnership, joint venture, limited liability company, association or other organization, other than a hospital owner, that directly or indirectly controls, is controlled by, or is under common control with one or more hospital owners and that supports, is supported by, or acts in furtherance of the exempt health care purposes of at least one of those hospital owners' hospitals.
(4) "Hospital system" means a hospital and one or     more other hospitals or hospital affiliates related by common control or ownership.
(5) "Control" relating to hospital owners, hospital     affiliates, or hospital systems means possession, direct or indirect, of the power to direct or cause the direction of the management and policies of the entity, whether through ownership of assets, membership interest, other voting or governance rights, by contract or otherwise.
(6) "Hospital applicant" means a hospital owner or     hospital affiliate that files an application for an exemption or renewal of exemption  under this Section.
(7) "Relevant hospital entity" means (A) the hospital     owner, in the case of a hospital applicant that is a hospital owner, and (B) at the election of a hospital applicant that is a hospital affiliate, either (i) the hospital affiliate or (ii) the hospital system to which the hospital applicant belongs, including any hospitals or hospital affiliates that are related by common control or ownership.
(8) "Subject property" means property used for the     calculation under subsection (b) of this Section.
(9) "Hospital year" means the fiscal year of the     relevant hospital entity, or the fiscal year of one of the hospital owners in the hospital system if the relevant hospital entity is a hospital system with members with different fiscal years, that ends in the year for which the exemption is sought.
(i) It is the intent of the General Assembly that any exemptions taken, granted, or renewed under this Section prior to the effective date of this amendatory Act of the 100th General Assembly are hereby validated.
(j) It is the intent of the General Assembly that the exemption under this Section applies on a continuous basis. If this amendatory Act of the 102nd General Assembly takes effect after July 1, 2022, any exemptions taken, granted, or renewed under this Section on or after July 1, 2022 and prior to the effective date of this amendatory Act of the 102nd General Assembly are hereby validated.
(Source: P.A. 102-886, eff. 5-17-22.)
(35 ILCS 120/2-10)
Sec. 2-10. Rate of tax. Unless otherwise provided in this Section,
the tax imposed by this Act is at the rate of 6.25% of gross receipts
from sales of tangible personal property made in the course of business.
Beginning on July 1, 2000 and through December 31, 2000, with respect to
motor fuel, as defined in Section 1.1 of the Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of the Use Tax Act, the tax is
imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and beginning again on August 5, 2022 through August 14, 2022, with respect to sales tax holiday items as defined in Section 2-8 of this Act, the
tax is imposed at the rate of 1.25%.
Within 14 days after July 1, 2000 (the effective date of Public Act 91-872), each retailer of motor fuel and gasohol shall cause the
following notice to be posted in a prominently visible place on each retail
dispensing device that is used to dispense motor
fuel or gasohol in the State of Illinois:  "As of July 1, 2000, the State of
Illinois has eliminated the State's share of sales tax on motor fuel and
gasohol through December 31, 2000. The price on this pump should reflect the
elimination of the tax."  The notice shall be printed in bold print on a sign
that is no smaller than 4 inches by 8 inches.  The sign shall be clearly
visible to customers.  Any retailer who fails to post or maintain a required
sign through December 31, 2000 is guilty of a petty offense for which the fine
shall be $500 per day per each retail premises where a violation occurs.
With respect to gasohol, as defined in the Use Tax Act, the tax imposed
by this Act applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the proceeds of
sales made on or after July 1, 2003 and on or before July 1, 2017, (iii) 100% of the proceeds of sales
made after July 1, 2017 and prior to January 1, 2024, (iv) 90% of the proceeds of sales made on or after January 1, 2024 and on or before December 31, 2028, and (v) 100% of the proceeds of sales made after December 31, 2028.
If, at any time, however, the tax under this Act on sales of gasohol, as
defined in
the Use Tax Act, is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of gasohol
made during that time.
With respect to mid-range ethanol blends, as defined in Section 3-44.3 of the Use Tax Act, the tax imposed by this Act applies to (i)  80%
of the proceeds of sales made on or after January 1, 2024 and on or before December 31, 2028 and (ii)  100% of the proceeds of sales made
after December 31, 2028.  If, at any time, however, the tax under this Act on sales of mid-range ethanol blends is
imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100% of the proceeds
of sales of mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, as defined in the Use Tax Act,
the
tax
imposed by this Act does not apply to the proceeds of sales made on or after
July 1, 2003 and on or before December 31, 2028 but applies to 100% of the
proceeds of sales made thereafter.
With respect to biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no
more than 10% biodiesel, the tax imposed by this Act
applies to (i) 80% of the proceeds of sales made on or after July 1, 2003
and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before January 1, 2024. On and after January 1, 2024 and on or before December 31, 2030, the taxation of biodiesel, renewable diesel, and biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax Act.
If, at any time, however, the tax under this Act on sales of biodiesel blends,
as
defined in the Use Tax Act, with no less than 1% and no more than 10% biodiesel
is imposed at the rate of 1.25%, then the
tax imposed by this Act applies to 100% of the proceeds of sales of biodiesel
blends with no less than 1% and no more than 10% biodiesel
 made
during that time.
With respect to biodiesel, as defined in the Use Tax Act, and biodiesel
blends, as defined in the Use Tax Act, with
more than 10% but no more than 99% biodiesel, the tax imposed by this Act
does not apply to the proceeds of sales made on or after July 1, 2003
and on or before December 31, 2023. On and after January 1, 2024 and on or before December 31, 2030, the taxation of biodiesel, renewable diesel, and biodiesel blends shall be as provided in Section 3-5.1 of the Use Tax Act.
Until July 1, 2022 and beginning again on July 1, 2023, with respect to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and
food that has been prepared for immediate consumption), the tax is imposed at the rate of 1%. Beginning July 1, 2022 and until July 1, 2023, with respect to food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption), the tax is imposed at the rate of 0%.
With respect to prescription and
nonprescription medicines, drugs, medical appliances, products classified as Class III medical devices by the United States Food and Drug Administration that are used for cancer treatment pursuant to a prescription, as well as any accessories and components related to those devices, modifications to a motor
vehicle for the purpose of rendering it usable by a person with a disability, and
insulin, blood sugar testing materials, syringes, and needles used by human diabetics, the tax is imposed at the rate of 1%. For the purposes of this
Section, until September 1, 2009: the term "soft drinks" means any complete, finished, ready-to-use,
non-alcoholic drink, whether carbonated or not, including, but not limited to,
soda water, cola, fruit juice, vegetable juice, carbonated water, and all other
preparations commonly known as soft drinks of whatever kind or description that
are contained in any closed or sealed bottle, can, carton, or container,
regardless of size; but "soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing 50% or more
natural fruit or vegetable juice.
Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "soft drinks" means non-alcoholic beverages that contain natural or artificial sweeteners.  "Soft drinks" does not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or greater than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other provisions of this
Act, "food for human consumption that is to be consumed off the premises where
it is sold" includes all food sold through a vending machine, except soft
drinks and food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning August 1, 2009, and notwithstanding any other provisions of this Act, "food for human consumption that is to be consumed off the premises where it is sold" includes all food sold through a vending machine, except soft drinks, candy, and food products that are dispensed hot from a vending machine, regardless of the location of the vending machine.
Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "food for human consumption that is to be consumed off the premises where
it is sold" does not include candy.  For purposes of this Section, "candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts or other ingredients or flavorings in the form of bars, drops, or pieces.  "Candy" does not include any preparation that contains flour or requires refrigeration.
Notwithstanding any other provisions of this
Act, beginning September 1, 2009, "nonprescription medicines and drugs"  does not include grooming and hygiene products.  For purposes of this Section, "grooming and hygiene products" includes, but is not limited to, soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions and screens, unless those products are available by prescription only, regardless of whether the products meet the definition of "over-the-counter-drugs".  For the purposes of this paragraph, "over-the-counter-drug" means a drug for human use that contains a label that identifies the product as a drug as required by 21 CFR 201.66.  The "over-the-counter-drug" label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a     list of those ingredients contained in the compound, substance or preparation.
Beginning on January 1, 2014 (the effective date of Public Act 98-122), "prescription and nonprescription medicines and drugs" includes medical cannabis purchased from a registered dispensing organization under the Compassionate Use of Medical Cannabis Program Act.
As used in this Section, "adult use cannabis" means cannabis subject to tax under the Cannabis Cultivation Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and does not include cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff. 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
(35 ILCS 120/2-10.5)
Sec. 2-10.5. 
		
		Direct payment program; purchaser's providing of permit to
retailer; retailer relieved of collecting use tax and local retailers'
occupation tax reimbursements from purchaser; direct payment of retailers'
occupation tax and local retailers' occupation tax by purchaser.
(a) Beginning on July 1, 2001 there is established in this State a Direct
Payment Program to be administered by the Department.  The Department shall
issue a Direct Pay Permit to applicants who have been approved to participate
in the Direct Payment Program.  Each person applying to participate in the
Direct Payment Program must demonstrate (1) the applicant's ability to comply
with the retailers' occupation tax laws and the use tax laws in effect in this
State and that the applicant's accounting system will reflect the proper amount
of tax due, (2) that the applicant has a valid business purpose for
participating in the Direct Payment Program, and (3) how the applicant's
participation in the Direct Payment Program will benefit tax compliance.
Application shall be made on forms provided by the Department and shall contain
information as the Department may reasonably require.  The Department shall
approve or deny an applicant within 90 days after the Department's receipt of
the application, unless the Department makes a written request for additional
information from the applicant.
(b) A person who has been approved for the Direct Payment Program and who
has been issued a Direct Pay Permit by the Department is relieved of paying tax
to a retailer when purchasing tangible personal property for use or
consumption, except as provided in subsection (d), by providing that retailer a
copy of that Direct Pay Permit.   A retailer who accepts a copy of a customer's
Direct Pay Permit is relieved of the obligation to remit the tax imposed by
this Act on the transaction.  References in this Section to "the tax imposed by
this Act" include any local occupation taxes administered by the Department
that would be incurred on the retail sale.
(c) Once the holder of a Direct Pay Permit uses that Permit to relieve the
Permit holder from paying tax to a particular retailer, the holder must use its
Permit for all purchases, except as provided in subsection (d), from that
retailer for so long as the Permit is valid.
(d) Direct Pay Permits are not valid and shall not be used for sales or
purchases of:
(1) food or beverage;
(2) tangible personal property required to be titled     or registered with an agency of government; or
(3) any transactions subject to the Service     Occupation Tax Act or Service Use Tax Act.
(e) Direct Pay Permits are not assignable and are not transferable.  As an
illustration, a construction contractor shall not make purchases using a
customer's Direct Pay Permit.
(f) A Direct Pay Permit is valid until it is revoked by the Department or
until the holder notifies the Department in writing that the holder is
withdrawing from the Direct Payment Program.  A Direct Pay Permit can be
revoked by the Department, after notice and hearing, if the holder violates any
provision of this Act, any provision of the Illinois Use Tax Act, or any
provision of any Act imposing a local retailers' occupation tax administered by
the Department.
(g) The holder of a Direct Pay Permit who has been relieved of paying tax to
a retailer on a purchase for use or consumption by representing to that
retailer that it would pay all applicable taxes directly to the Department
shall pay those taxes to the Department not later than the 20th day of the
month following the month in which the purchase was made.  Permit holders
making such purchases are subject to all provisions of this Act, and the tax
must be reported and paid as retailers' occupation tax in the same manner that
the retailer from whom the purchases were made would have reported and paid it,
including any local retailers' occupation taxes applicable to that retail sale.
Notwithstanding any other provision of this Act, Permit holders shall make all
payments to the Department through the use of electronic funds transfer.
(Source: P.A. 92-484, eff. 8-23-01.)
(35 ILCS 120/2-12)
Sec. 2-12. Location where retailer is deemed to be engaged in the business of selling.  The purpose of this Section is to specify where a retailer is deemed to be engaged in the business of selling tangible personal property for the purposes of this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act, and for the purpose of collecting any other local retailers' occupation tax administered by the Department.  This Section applies only with respect to the particular selling activities described in the following paragraphs.  The provisions of this Section are not intended to, and shall not be interpreted to, affect where a retailer is deemed to be engaged in the business of selling with respect to any activity that is not specifically described in the following paragraphs.
(1)  If a purchaser who is present at the retailer's     place of business, having no prior commitment to the retailer, agrees to purchase and makes payment for tangible personal property at the retailer's place of business, then the transaction shall be deemed an over-the-counter sale occurring at the retailer's same place of business where the purchaser was present and made payment for that tangible personal property if the retailer regularly stocks the purchased tangible personal property or similar tangible personal property in the quantity, or similar quantity, for sale at the retailer's same place of business and then either (i) the purchaser takes possession of the tangible personal property at the same place of business or (ii) the retailer delivers or arranges for the tangible personal property to be delivered to the purchaser.
(2)  If a purchaser, having no prior commitment to     the retailer, agrees to purchase tangible personal property and makes payment over the phone, in writing, or via the Internet and takes possession of the tangible personal property at the retailer's place of business, then the sale shall be deemed to have occurred at the retailer's place of business where the purchaser takes possession of the property if the retailer regularly stocks the item or similar items in the quantity, or similar quantities, purchased by the purchaser.
(3)  A retailer is deemed to be engaged in the     business of selling food, beverages, or other tangible personal property through a vending machine at the location where the vending machine is located at the time the sale is made if (i) the vending machine is a device operated by coin, currency, credit card, token, coupon or similar device; (2) the food, beverage or other tangible personal property is contained within the vending machine and dispensed from the vending machine; and (3) the purchaser takes possession of the purchased food, beverage or other tangible personal property immediately.
(4)  Minerals.  A producer of coal or other mineral     mined in Illinois is deemed to be engaged in the business of selling at the place where the coal or other mineral mined in Illinois is extracted from the earth.  With respect to minerals (i) the term "extracted from the earth" means the location at which the coal or other mineral is extracted from the mouth of the mine, and (ii) a "mineral" includes not only coal, but also oil, sand, stone taken from a quarry, gravel and any other thing commonly regarded as a mineral and extracted from the earth.  This paragraph does not apply to coal or another mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or foreign commerce.
(5)  A retailer selling tangible personal property to     a nominal lessee or bailee pursuant to a lease with a dollar or other nominal option to purchase is engaged in the business of selling at the location where the property is first delivered to the lessee or bailee for its intended use.
(6) Beginning on January 1, 2021, a remote retailer     making retail sales of tangible personal property that meet or exceed the thresholds established in paragraph (1) or (2) of subsection (b) of Section 2 of this Act is engaged in the business of selling at the Illinois location to which the tangible personal property is shipped or delivered or at which possession is taken by the purchaser.
(7) Beginning January 1, 2021, a marketplace     facilitator facilitating sales of tangible personal property that meet or exceed one of the thresholds established in paragraph (1) or (2) of subsection (c) of Section 2 of this Act is deemed to be engaged in the business of selling at the Illinois location to which the tangible personal property is shipped or delivered or at which possession is taken by the purchaser when the sale is made by a marketplace seller on the marketplace facilitator's marketplace. (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
(35 ILCS 120/2-15) (from Ch. 120, par. 441-15)
Sec. 2-15. 
		Photoprocessing. 
		For purposes of the tax imposed on
photographs, negatives, and positives by this Act, "photoprocessing"
includes, but is not limited to, developing films, positives, negatives,
and transparencies, and tinting, coloring, making, and enlarging prints.
Photoprocessing does not include color separation, typesetting, and
platemaking by photographic means in the graphic arts industry and does not
include any procedure, process, or activity connected with the creation of
the images on the film from which the negatives, positives, or photographs
are derived.  The charge for in-house photoprocessing may not be less than
the photoprocessor's cost price of materials.  In transactions in which
products of photoprocessing are sold in conjunction with other services, if
a charge for the photoprocessing component is not separately stated, tax is
imposed on 50% of the entire selling price unless the sale is made by a
professional photographer, in which case tax is imposed on 10% of the
entire selling price.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-20) (from Ch. 120, par. 441-20)
Sec. 2-20. 
		Bullion. 
		
For purposes of this Act, "bullion" means
gold, silver, or platinum in a bulk state with a purity of not less
than 980 parts per 1,000.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-22)
Sec. 2-22. Certification of airport-related purpose.
(a) Initial certification and annual recertification. If a unit of local government has an airport-related purpose, as defined in Section 6z-20.2 of the State Finance Act, which would allow any retailers' occupation tax and service occupation tax imposed by the unit of local government and administered by the Department to include tax on aviation fuel, then, on or before September 1, 2019, and on or before each April 1 thereafter, the unit of local government must certify to the Department of Transportation, in the form and manner required by the Department of Transportation, that it has an airport-related purpose. All disputes regarding whether or not a unit of local government has an airport-related purpose shall be resolved by the Department of Transportation.
On or before October 1, 2019, and on or before each May 1 thereafter, the Department of Transportation shall provide to the Department a list of units of local government that have certified to the Department of Transportation that they have an airport-related purpose. If a unit of local government is included in the list of units of local government that have certified that they have an airport-related purpose that is provided by the Department of Transportation to the Department on or before October 1, 2019, then, beginning on December 1, 2019, any retailers' occupation tax and service occupation tax imposed by the unit of local government and administered by the Department shall continue to be collected on aviation fuel sold in that unit of local government. Failure by a unit of local government to file an initial certification shall be treated as confirmation that the unit of local government does not have an airport-related purpose, thereby exempting, beginning on December 1, 2019, aviation fuel from any retailers' occupation tax and service occupation tax imposed by the unit of local government and administered by the Department.
Beginning in 2020 and in each year thereafter, if a unit of local government is included in the list of units of local government that have certified that they have an airport-related purpose that is provided by the Department of Transportation to the Department on or before May 1, then any retailers' occupation tax and service occupation tax imposed by the unit of local government and administered by the Department shall continue to be (or begin to be, as the case may be) collected on aviation fuel sold in that unit of local government beginning on the following July 1.  Once a unit of local government has certified that it has an airport-related purpose, failure during an annual recertification period to file a certification that it has an airport-related purpose shall be treated as confirmation that it no longer has an airport-related purpose, thereby exempting, beginning on July 1 of that year, aviation fuel from any retailers' occupation tax and service occupation tax imposed by the unit of local government and administered by the Department.
(b) Penalties. If a unit of local government certifies that it has an airport-related purpose and therefore receives tax revenues from a tax imposed by the unit of local government and administered by the Department of Revenue on sales of aviation fuel, but the Federal Aviation Administration thereafter determines that the tax revenues on aviation fuel generated by that tax were expended by the unit of local government for a purpose other than an airport-related purpose and the Federal Aviation Administration imposes a penalty on the State of Illinois as a result, then the State is authorized to pass this penalty on to the unit of local government by withholding an amount up to the amount of the penalty out of local retailers' occupation taxes and service occupation taxes to be allocated to the unit of local government by the State.
(Source: P.A. 101-604, eff. 12-13-19.)
(35 ILCS 120/2-25) (from Ch. 120, par. 441-25)
Sec. 2-25. Computer software. For the purposes of this Act, "computer
software" means a set of statements, data,
or instructions to be used directly or indirectly in a computer in order to
bring about a certain result in any form in which those statements, data, or
instructions may be embodied, transmitted, or fixed, by any method now known
or hereafter developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or communicated to humans,
and includes prewritten or canned software that is held for repeated sale
or lease, and all associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices or media, but
does not include software that is adapted to specific individualized
requirements of a purchaser, custom-made and modified software designed for
a particular or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of manufacturing or
assembling tangible personal property for wholesale or retail sale or
lease. Software used to operate machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains is considered "computer software".     The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this exemption.
For the purposes of this Act, computer software shall be considered to be
tangible personal property.
(Source: P.A. 98-583, eff. 1-1-14.)
(35 ILCS 120/2-27)
Sec. 2-27. 
		Prepaid telephone calling arrangements. 
		"Prepaid telephone
calling arrangements" mean the right to exclusively purchase telephone or
telecommunications services that must be paid for in advance and enable the
origination of one or more intrastate, interstate, or international telephone
calls or other telecommunications using an access number, an authorization
code, or both, whether manually or electronically dialed, for which payment to
a retailer must be made in advance, provided that, unless recharged, no further
service is provided once that prepaid amount of service has been consumed.
Prepaid telephone calling arrangements include the recharge of a prepaid
calling arrangement.  For purposes of this Section, "recharge" means the
purchase of additional prepaid telephone or telecommunications services whether
or not the purchaser acquires a different access number or authorization code.
For purposes of this Section, "telecommunications" means that term as defined
in Section 2 of the Telecommunications Excise Tax Act.
"Prepaid telephone calling arrangement" does not
include an arrangement whereby the service provider reflects the amount of
the purchase as a credit on an account for a customer under an existing
subscription plan.
(Source: P.A. 91-870, eff. 6-22-00.)
(35 ILCS 120/2-30) (from Ch. 120, par. 441-30)
Sec. 2-30. Graphic arts production. For purposes of this Act, "graphic arts
production" means the production of tangible personal property for wholesale or retail sale or lease by means of printing, including ink jet printing, by one or more of the
processes described in Groups 323110 through 323122 of Subsector 323, Groups
511110 through 511199 of Subsector 511, and Group 512230 of Subsector 512 of
the North American Industry Classification System published by the U.S. Office
of Management and Budget, 1997 edition.  Graphic arts production does not
include (i) the transfer of images onto paper or other tangible personal
property by means of photocopying or (ii) final printed products in electronic
or audio form, including the production of software or audio-books. For purposes of this Section, persons engaged primarily in the business of printing or publishing newspapers or magazines that qualify as newsprint and ink, by one or more of the processes described in Groups 511110 through 511199 of subsector 511 of the North American Industry Classification System published by the U.S. Office of Management and Budget, 1997 edition, are deemed to be engaged in graphic arts production.
(Source: P.A. 96-116, eff. 7-31-09.)
(35 ILCS 120/2-35) (from Ch. 120, par. 441-35)
Sec. 2-35. 
		Production agriculture. 
		For purposes of this Act, "production agriculture"
means the raising
of or the propagation of livestock; crops for sale for human consumption;
crops for livestock consumption; and production seed stock grown for the
propagation of feed grains and the husbandry of animals or for the purpose
of providing a food product, including the husbandry of blood stock as a
main source of providing a food product.
"Production agriculture" also means animal husbandry, floriculture,
aquaculture,
horticulture, and viticulture.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-40) (from Ch. 120, par. 441-40)
Sec. 2-40. 
		Purchaser refunds. 
		If a seller collects an amount (however
designated) that purports to reimburse the seller for retailers' occupation
tax liability measured by receipts that are not subject to retailers'
occupation tax, or if a seller, in collecting an amount (however
designated) that purports to reimburse the seller for retailers' occupation
tax liability measured by receipts that are subject to tax under this Act,
collects more from the purchaser than the seller's retailers' occupation
tax liability on the transaction, the purchaser shall have a legal right to
claim a refund of that amount from the seller.  If, however, that amount is
not refunded to the purchaser for any reason, the seller is liable to pay
that amount to the Department.  This paragraph does not
apply to an amount collected by the seller as reimbursement for the
seller's retailers' occupation tax liability on receipts that are
subject to tax under this Act as long as the collection is made in
compliance with the tax collection brackets prescribed by the Department
in its rules and regulations.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
Sec. 2-45. Manufacturing and assembly exemption. The manufacturing
and assembly machinery and equipment exemption includes machinery
and equipment that replaces machinery
and equipment in an existing manufacturing facility as well as machinery
and equipment that are for use in an expanded or new
manufacturing facility.
The machinery and equipment exemption also includes machinery
and equipment used in the
general maintenance or repair of exempt machinery and equipment or for
in-house manufacture of exempt machinery and equipment.
Beginning on July 1, 2017, the manufacturing and assembling machinery and equipment exemption also includes graphic arts machinery and equipment, as defined in paragraph (4) of Section 2-5. The machinery and equipment exemption does not include machinery and equipment used in (i) the generation of electricity for wholesale or retail sale; (ii) the generation or treatment of natural or artificial gas for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains; or (iii) the treatment of water for wholesale or retail sale that is delivered to customers through pipes, pipelines, or mains.    The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this exemption. For the purposes of this exemption, terms have the following meanings:
(1) "Manufacturing process" means the production of     an article of tangible personal property, whether the article is a finished product or an article for use in the process of manufacturing or assembling a different article of tangible personal property, by a procedure commonly regarded as manufacturing, processing, fabricating, or refining that changes some existing material or materials into a material with a different form, use, or name.  In relation to a recognized integrated business composed of a series of operations that collectively constitute manufacturing, or individually constitute manufacturing operations, the manufacturing process commences with the first operation or stage of production in the series and does not end until the completion of the final product in the last operation or stage of production in the series.  For purposes of this exemption, photoprocessing is a manufacturing process of tangible personal property for wholesale or retail sale.
(2) "Assembling process" means the production of an     article of tangible personal property, whether the article is a finished product or an article for use in the process of manufacturing or assembling a different article of tangible personal property, by the combination of existing materials in a manner commonly regarded as assembling that results in a material of a different form, use, or name.
(3) "Machinery" means major mechanical machines or     major components of those machines contributing to a manufacturing or assembling process.
(4) "Equipment" includes an independent device or     tool separate from machinery but essential to an integrated manufacturing or assembly process; including computers used primarily in a manufacturer's computer assisted design, computer assisted manufacturing (CAD/CAM) system; any subunit or assembly comprising a component of any machinery or auxiliary, adjunct, or attachment parts of machinery, such as tools, dies, jigs, fixtures, patterns, and molds; and any parts that require periodic replacement in the course of normal operation; but does not include hand tools. Equipment includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a product being manufactured or assembled for wholesale or retail sale or lease.
(5) "Production related tangible personal property"     means all tangible personal property that is used or consumed by the purchaser in a manufacturing facility in which a manufacturing process takes place and includes, without limitation,  tangible personal property that is purchased for incorporation into real estate within a manufacturing facility, supplies and consumables used in a manufacturing facility including fuels, coolants, solvents, oils, lubricants, and adhesives, hand tools, protective apparel, and fire and safety equipment used or consumed within a manufacturing facility, and tangible personal property that is used or consumed in activities such as research and development, preproduction material handling, receiving, quality control, inventory control, storage, staging, and packaging for shipping and transportation purposes. "Production related tangible personal property" does not include (i) tangible personal property that is used, within or without a manufacturing facility, in sales, purchasing, accounting, fiscal management, marketing, personnel recruitment or selection, or landscaping or (ii) tangible personal property that is required to be titled or registered with a department, agency, or unit of federal, State, or local government.
The manufacturing and assembling machinery and equipment exemption includes production related tangible personal property that is purchased on or after July 1, 2007 and on or before June 30, 2008 and on or after July 1, 2019. The exemption for production related tangible personal property purchased on or after July 1, 2007 and before June 30, 2008 is subject to both of  the following limitations:
(1) The maximum amount of the exemption for any one     taxpayer may not exceed 5% of the purchase price of production related tangible personal property that is purchased on or after July 1, 2007 and on or before June 30, 2008. A credit under Section 3-85 of this Act may not be earned by the purchase of production related tangible personal property for which an exemption is received under this Section.
(2) The maximum aggregate amount of  the exemptions     for production related tangible personal property  awarded under this Act and the Use  Tax Act to all taxpayers may not exceed $10,000,000. If the claims for the exemption exceed $10,000,000, then the Department shall reduce the amount of the exemption to each taxpayer on a pro rata basis.The Department shall adopt rules to implement and administer the exemption for production related tangible personal property.
The manufacturing and assembling machinery and equipment exemption
includes the sale of materials to a purchaser who produces exempted types
of machinery, equipment, or tools and who rents or leases that machinery,
equipment, or tools to a manufacturer of tangible personal property.  This
exemption also includes the sale of materials to a purchaser who manufactures
those materials into an exempted type of machinery, equipment, or tools
that the purchaser uses himself or herself in the manufacturing of tangible
personal property.  The purchaser of the machinery and equipment who has an
active resale registration number shall furnish that number to the seller
at the time of purchase.  A purchaser of the machinery, equipment, and
tools without an active resale registration number shall furnish to the
seller a certificate of exemption stating facts
establishing the exemption, and that certificate shall
be available to the Department for inspection or audit.  Informal
rulings, opinions, or letters issued by the Department in response to an
inquiry or request for an opinion from any person regarding the coverage and
applicability of this exemption to specific devices shall be published,
maintained as a public record,
and made available for public inspection and copying.  If the informal
ruling, opinion, or letter contains trade secrets or other confidential
information, where possible, the Department shall delete that information
before publication.  Whenever informal rulings, opinions, or letters
contain a policy of general applicability, the Department shall
formulate and adopt that policy as a rule in accordance with the Illinois
Administrative Procedure Act.
The manufacturing and assembling machinery and equipment
exemption is exempt from the provisions of Section 2-70.
(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-604, eff. 12-13-19.)
(35 ILCS 120/2-50) (from Ch. 120, par. 441-50)
Sec. 2-50. 
		Rolling stock exemption. 
		Except as provided in Section 2-51 of
this Act, the rolling
stock exemption
applies to rolling stock used by an
interstate carrier for hire, even just between points in Illinois, if the
rolling stock transports, for hire, persons whose journeys or property
whose shipments originate or terminate outside Illinois.
(Source: P.A. 93-23, eff. 6-20-03.)
(35 ILCS 120/2-51)
Sec. 2-51. Motor vehicles; trailers; use as rolling stock definition.
(a) (Blank).
(b) (Blank).
(c) This subsection (c) applies to motor vehicles, other than limousines, purchased through June 30, 2017. For motor vehicles, other than limousines, purchased on or after July 1, 2017, subsection (d-5) applies. This subsection (c) applies to limousines purchased before, on, or after July 1, 2017. "Use as rolling stock moving in interstate commerce" in paragraph (13) of Section 2-5 occurs for motor vehicles, as defined in Section 1-146 of the Illinois Vehicle Code, when during a 12-month period the rolling stock has carried persons or property for hire in interstate commerce for greater than 50% of its total trips for that period or for greater than 50% of its total miles for that period.   The person claiming the exemption shall make an election at the time of purchase to use either the trips or mileage method.   Persons who purchased motor vehicles prior to July 1, 2004 shall make an election to use either the trips or mileage method and document that election in their books and records.  If no election is made under this subsection to use the trips or mileage method, the person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles, motor vehicles that carry persons or property for hire, even just between points in Illinois, will be considered used for hire in interstate commerce if the motor vehicle transports persons whose journeys or property whose shipments originate or terminate outside Illinois. The exemption for motor vehicles
used as rolling stock moving in interstate commerce may be
claimed only for the following vehicles: (i) motor vehicles whose gross vehicle weight
rating exceeds 16,000 pounds; and (ii) limousines, as defined in Section 1-139.1 of the Illinois Vehicle Code. Through June 30, 2017, this definition applies to all property purchased for the purpose of being attached to those motor vehicles as a part thereof. On and after July 1, 2017, this definition applies to property purchased for the purpose of being attached to limousines as a part thereof.
(d) For purchases made through June 30, 2017, "use as rolling stock moving in interstate commerce" in paragraph (13) of Section 2-5 occurs for trailers, as defined in Section 1-209 of the Illinois Vehicle Code, semitrailers as defined in Section 1-187 of the Illinois Vehicle Code, and pole trailers as defined in Section 1-161 of the Illinois Vehicle Code, when during a 12-month period the rolling stock has carried persons or property for hire in interstate commerce for greater than 50% of its total trips for that period or for greater than 50% of its total miles for that period.  The person claiming the exemption for a trailer or trailers that will not be dedicated to a motor vehicle or group of motor vehicles shall make an election at the time of purchase to use either the trips or mileage method.  Persons who purchased trailers prior to July 1, 2004 that are not dedicated to a motor vehicle or group of motor vehicles shall make an election to use either the trips or mileage method and document that election in their books and records. If no election is made under this subsection to use the trips or mileage method, the person shall be deemed to have chosen the mileage method.
For purposes of determining qualifying trips or miles, trailers, semitrailers, or pole trailers that carry property for hire, even just between points in Illinois, will be considered used for hire in interstate commerce if the trailers, semitrailers, or pole trailers transport property whose shipments originate or terminate outside Illinois.   This definition applies to all property purchased for the purpose of being attached to those trailers, semitrailers, or pole trailers as a part thereof.  In lieu of a person providing documentation regarding the qualifying use of each individual trailer, semitrailer, or pole trailer, that person may document such qualifying use by providing documentation of the following:
(1) If a trailer, semitrailer, or pole trailer is     dedicated to a motor vehicle that qualifies as rolling stock moving in interstate commerce under subsection (c) of this Section, then that trailer, semitrailer, or pole trailer qualifies as rolling stock moving in interstate commerce under this subsection.
(2) If a trailer, semitrailer, or pole trailer is     dedicated to a group of motor vehicles that all qualify as rolling stock moving in interstate commerce under subsection (c) of this Section, then that trailer, semitrailer, or pole trailer qualifies as rolling stock moving in interstate commerce under this subsection.
(3) If one or more trailers, semitrailers, or pole     trailers are dedicated to a group of motor vehicles and not all of those motor vehicles in that group qualify as rolling stock moving in interstate commerce under subsection (c) of this Section, then the percentage of those trailers, semitrailers, or pole trailers that qualifies as rolling stock moving in interstate commerce under this subsection is equal to the percentage of those motor vehicles in that group that qualify as rolling stock moving in interstate commerce under subsection (c) of this Section to which those trailers, semitrailers, or pole trailers are dedicated.   However, to determine the qualification for the exemption provided under this item (3), the mathematical application of the qualifying percentage to one or more trailers, semitrailers, or pole trailers under this subpart shall not be allowed as to any fraction of a trailer, semitrailer, or pole trailer.
(d-5) For motor vehicles and trailers purchased on or after July 1, 2017, "use as rolling stock moving in interstate commerce" means that:
(1) the motor vehicle or trailer is used to transport     persons or property for hire;
(2) for purposes of the exemption under paragraph     (13) of Section 2-5, the purchaser who is an owner, lessor, or shipper claiming the exemption certifies that the motor vehicle or trailer will be utilized, from the time of purchase and continuing through the statute of limitations for issuing a notice of tax liability under this Act, by an interstate carrier or carriers for hire who hold, and are required by Federal Motor Carrier Safety Administration regulations to hold, an active USDOT Number with the Carrier Operation listed as "Interstate" and the Operation Classification listed as "authorized for hire", "exempt for hire", or both "authorized for hire" and "exempt for hire";  except that this paragraph (2) does not apply to a motor vehicle or trailer used  at an airport to support the operation of an aircraft moving in interstate commerce, as long as (i) in the case of a motor vehicle, the motor vehicle meets paragraphs (1) and (3) of this subsection (d-5) or (ii) in the case of a trailer, the trailer meets paragraph (1) of this subsection (d-5); and
(3) for motor vehicles, the gross vehicle weight     rating exceeds 16,000 pounds.
The definition of "use as rolling stock moving in interstate commerce" in this subsection (d-5) applies to all property purchased on or after July 1, 2017 for the purpose of being attached to a motor vehicle or trailer as a part thereof, regardless of whether the motor vehicle or trailer was purchased before, on, or after July 1, 2017.
If an item ceases to meet requirements (1) through (3) under this subsection (d-5), then the tax is imposed on the selling price, allowing for a reasonable depreciation for the period during which the item qualified for the exemption.
For purposes of this subsection (d-5):
"Motor vehicle" excludes limousines, but otherwise     means that term as defined in Section 1-146 of the Illinois Vehicle Code.
"Trailer" means (i) "trailer", as defined in Section     1-209 of the Illinois Vehicle Code, (ii) "semitrailer", as defined in Section 1-187 of the Illinois Vehicle Code, and (iii) "pole trailer", as defined in Section 1-161 of the Illinois Vehicle Code.
(e) For aircraft and watercraft purchased on or after January 1, 2014, "use as rolling stock moving in interstate commerce" in paragraph (13) of Section 2-5 occurs when, during a 12-month period, the rolling stock has carried persons or property for hire in interstate commerce for greater than 50% of its total trips for that period or for greater than 50% of its total miles for that period.  The person claiming the exemption shall make an election at the time of purchase to use either the trips or mileage method and document that election in their books and records.  If no election is made under this subsection to use the trips or mileage method, the person shall be deemed to have chosen the mileage method.  For aircraft, flight hours may be used in lieu of recording miles in determining whether the aircraft meets the mileage test in this subsection.  For watercraft, nautical miles or trip hours may be used in lieu of recording miles in determining whether the watercraft meets the mileage test in this subsection.
Notwithstanding any other provision of law to the contrary, property purchased on or after January 1, 2014 for the purpose of being attached to aircraft or watercraft as a part thereof qualifies as rolling stock moving in interstate commerce only if the aircraft or watercraft to which it will be attached qualifies as rolling stock moving in interstate commerce under the test set forth in this subsection (e), regardless of when the aircraft or watercraft was purchased. Persons who purchased aircraft or watercraft prior to January 1, 2014 shall make an election to use either the trips or mileage method and document that election in their books and records for the purpose of determining whether property purchased on or after January 1, 2014 for the purpose of being attached to aircraft or watercraft as a part thereof qualifies as rolling stock moving in interstate commerce under this subsection (e).
(f) The election to use either the trips or mileage method made under the provisions of subsections (c), (d), or (e) of this Section will remain in effect for the duration of the purchaser's ownership of that item.
(Source: P.A. 100-321, eff. 8-24-17.)
(35 ILCS 120/2-54)
Sec. 2-54. Building materials exemption; River Edge Redevelopment Zones.
(a) Each retailer that makes a qualified sale of building materials to be incorporated into real estate within a River Edge Redevelopment Zone in accordance with the River Edge Redevelopment Zone Act by remodeling, rehabilitating, or new construction may deduct receipts from those sales when calculating the tax imposed by this Act. For purposes of this Section, "qualified sale" means a sale of building materials that will be incorporated into real estate as part of an industrial or commercial project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the corporate authorities of the municipality in which the building project is located.
(b) Before July 1, 2013, to document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the corporate authorities of the municipality in which the real estate into which the building materials will be incorporated is located. The Certificate of Eligibility for Sales Tax Exemption must contain all of the following:
(1) A statement that the commercial or industrial     project identified in the Certificate meets all the requirements of the jurisdiction in which the project is located.
(2) The location or address of the building project.
(3) The signature of the chief executive officer of     the municipality in which the building project is located, or the chief executive officer's delegate.
(c) Before July 1, 2013, in addition, the retailer must obtain a certificate from the purchaser that contains all of the following:
(1) A statement that the building materials are being     purchased for incorporation into real estate located in a River Edge Redevelopment Zone included in a redevelopment project area in accordance with River Edge Redevelopment Zone Act.
(2) The location or address of the real estate into     which the building materials will be incorporated.
(3) The name of the River Edge Redevelopment Zone in     which that real estate is located.
(4) A description of the building materials being     purchased.
(5) The purchaser's signature and date of purchase.
(d) On and after July 1, 2013, to document the exemption allowed under this Section the retailer must obtain from the purchaser the purchaser's River Edge Building Materials Exemption Certificate number issued by the Department. A construction contractor or other entity shall not make tax-free purchases unless it has an active Exemption Certificate issued by the Department at the time of purchase.
Upon request from the corporate authorities of the municipality in which the building project is located, the Department shall issue a River Edge Building Materials Exemption Certificate for each construction contractor or other entity identified by the corporate authorities of the municipality in which the building project is located.  The Department shall make the Exemption Certificates available to the corporate authorities of the municipality in which the building project is located and each construction contractor or other entity. The request for River Edge Building Materials Exemption Certificates from the corporate authorities of the municipality in which the building project is located to the Department must include the following information:
(1) the name and address of the construction     contractor or other entity;
(2) the name and number of the River Edge     Redevelopment Zone in which the building project is located;
(3) the name and location or address of the building     project in the River Edge Redevelopment Zone;
(4) the estimated amount of the exemption for each     construction contractor or other entity for which a request for Exemption Certificate is made, based on a stated estimated average tax rate and the percentage of the contract that consists of materials;
(5) the period of time over which supplies for the     project are expected to be purchased; and
(6) other reasonable information as the Department     may require, including but not limited to FEIN numbers, to determine if the contractor or other entity, or any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity,  is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The Department shall issue the River Edge Building Materials Exemption Certificates within 3 business days after receipt of request from the corporate authorities of the municipality in which the building project is located.  This requirement does not apply in circumstances where the Department, for reasonable cause, is unable to issue the Exemption Certificate within 3 business days. The Department may refuse to issue an Exemption Certificate if the owner, any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department. The River Edge Building Materials Exemption Certificate shall contain language stating that, if the construction contractor or other entity who is issued the Exemption Certificate makes a tax-exempt purchase as described in this Section that is not eligible for exemption under this Section,  or allows another person to make a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that is not eligible for the exemption.
The Department, in its discretion, may require that the request for River Edge Building Materials Exemption Certificates be submitted electronically. The Department may, in its discretion, issue the Exemption Certificates electronically. The River Edge Building Materials Exemption Certificate number shall be designed in such a way that the Department can identify from the unique number on the Exemption Certificate issued to a given construction contractor or other entity, the name of the River Edge Redevelopment Zone in which the building project is located, the project for which the Exemption Certificate is issued, and the construction contractor or other entity to whom the Exemption Certificate is issued. The Exemption Certificate shall contain an expiration date, which shall be no more than 2 years after the date of issuance. At the request of the corporate authorities of the municipality in which the building project is located, the Department may renew an Exemption Certificate. After the Department issues Exemption Certificates for a given River Edge building project, the corporate authorities of the municipality in which the building project is located may notify the Department of additional construction contractors or other entities eligible for a River Edge Building Materials Exemption Certificate. Upon notification by the corporate authorities of the municipality in which the building project is located, and subject to the other provisions of this subsection (d), the Department shall issue a River Edge Building Materials Exemption Certificate to each additional construction contractor or other entity identified by the corporate authorities of the municipality in which the building project is located. The corporate authorities of the municipality in which the building project is located may notify the Department to rescind a Building Materials Exemption Certificate previously issued by the Department but that has not yet expired. Upon notification by the corporate authorities of the municipality in which the building project is located, and subject to the other provisions of this subsection (d), the Department shall issue the rescission of the River Edge Building Materials Exemption Certificate to the construction contractor or other entity identified by the corporate authorities of the municipality in which the building project is located and provide a copy to the corporate authorities of the municipality in which the building project is located.
If the Department of Revenue determines that a construction contractor or other entity that was issued an Exemption Certificate under this subsection (d) made a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, or allowed another person to make a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that was not eligible for the exemption.
Notwithstanding anything to the contrary in this Section, for River Edge building projects already in existence and for which construction contracts are already in place on July 1, 2013, the request for River Edge Building Materials Exemption Certificates from the corporate authorities of the municipality in which the building project is located to the Department for these pre-existing construction contractors and other entities must include the information required under subsection (d), but not including the information listed in items (4) and (5). For any new construction contract entered into on or after July 1, 2013, however, all of the information in this subsection (d) must be provided.
(e) The provisions of this Section are exempt from Section 2-70.
(Source: P.A. 98-109, eff. 7-25-13.)
(35 ILCS 120/2-55) (from Ch. 120, par. 441-55)
Sec. 2-55. 
		Serviceman transfer. 
		Tangible personal property
purchased by a serviceman, as defined in Section 2 of the Service
Occupation Tax Act, is subject to the tax imposed by this Act when
purchased for transfer by the serviceman incidental to completion of a
maintenance agreement.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-60) (from Ch. 120, par. 441-60)
Sec. 2-60. 
		Interstate commerce exemption. 
		No  tax is imposed under this
Act upon the privilege of engaging in a business in interstate commerce or
otherwise, when the business may not, under the Constitution and statutes
of the United States, be made the subject of taxation by this State.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-65) (from Ch. 120, par. 441-65)
Sec. 2-65. 
		Liability because of amendatory Act. 
		Revisions in Section
2 (now Sections 2 through 2-65) by Public Act 85-1135 do not affect tax
liability that arose before January 1, 1990.
(Source: P.A. 91-51, eff. 6-30-99.)
(35 ILCS 120/2-70)
Sec. 2-70. Sunset of exemptions, credits, and deductions.
(a) The application
of every exemption, credit, and deduction against tax imposed by this Act that
becomes law after the effective date of this amendatory Act of 1994 shall be
limited by a reasonable and appropriate sunset date.  A taxpayer is not
entitled to take the exemption, credit, or deduction beginning on the sunset
date and thereafter.  Except as provided in subsection (b) of this Section, if a reasonable and appropriate sunset date is not
specified in the Public Act that creates the exemption, credit, or deduction, a
taxpayer shall not be entitled to take the exemption, credit, or deduction
beginning 5 years after the effective date of the Public Act creating the
exemption, credit, or deduction and thereafter.
(b) Notwithstanding the provisions of subsection (a) of this Section, the sunset date of any exemption, credit, or deduction that is scheduled to expire in 2011, 2012, or 2013 by operation of this Section shall be extended by 5 years.
(Source: P.A. 97-636, eff. 6-1-12.)
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
Sec. 2a. It is unlawful for any person to engage in the business of
selling tangible personal property at retail in this State without a
certificate of registration from the Department. Application
for a certificate of registration shall be made to the Department upon
forms furnished by it. Each such application shall be signed and verified
and shall state: (1) the name and social security number of the
applicant; (2) the address of his principal place
of business; (3) the address of the principal place of business from which
he engages in the business of selling tangible personal property at retail
in this State and the addresses of all other places of business, if any
(enumerating such addresses, if any, in a separate list attached to and
made a part of the application), from which he engages in the business of
selling tangible personal property at retail in this State; (4)
the
name and address of the person or persons who will be responsible for
filing returns and payment of taxes due under this Act; (5) in the case of a publicly traded corporation, the name and title of the Chief Financial Officer, Chief Operating Officer, and any other officer or employee with responsibility for preparing tax returns under this Act, and, in the
case of
all other corporations, the name, title, and social security number of
each corporate officer; (6) in the case of a limited liability
company, the
name, social security number, and FEIN number of
each
manager and member; and (7) such other information
as the Department may reasonably require.  The application shall contain
an acceptance of responsibility signed by the person or persons who will be
responsible for filing returns and payment of the taxes due under this
Act.  If the applicant will sell tangible personal property at retail
through vending machines, his application to register shall indicate the
number of vending machines to be so operated.  If requested by the Department at any time, that person shall verify the total number of vending machines he or she uses in his or her business of selling tangible personal property at retail.
The Department shall provide by rule for an expedited business registration process for remote retailers required to register and file under subsection (b) of Section 2 who use a certified service provider to file their returns under this Act. Such expedited registration process shall allow the Department to register a taxpayer based upon the same registration information required by the Streamlined Sales Tax Governing Board for states participating in the Streamlined Sales Tax Project.
The Department may deny a certificate of registration to any applicant
if a person who is named as the owner, a partner, a manager or member of a limited liability
company, or a corporate officer of the applicant on the application for the certificate of registration is or
has been named as the owner, a partner, a manager or member of a limited
liability company, or a corporate officer on the application for the certificate of registration of another retailer
that (i) is in default for moneys due under this Act or any other tax or fee Act administered by the Department or (ii) fails to file any  return, on or before the due date prescribed for filing that return (including any extensions of time granted by the Department), that the retailer is required to file under this Act or any other tax or fee Act administered by the Department. For purposes of this paragraph only, in determining whether a person is in default for moneys due, the Department shall include only amounts established as a final liability within the 23 years prior to the date of the Department's notice of denial of a certificate of registration.
The Department may require an applicant for a certificate of registration hereunder to, at
the time of filing such application, furnish a bond from a surety company
authorized to do business in the State of Illinois, or an irrevocable
bank letter of credit or a bond signed by 2
personal sureties who have filed, with the Department, sworn statements
disclosing net assets equal to at least 3 times the amount of the bond to
be required of such applicant, or a bond secured by an assignment of a bank
account or certificate of deposit, stocks or bonds, conditioned upon the
applicant paying to the State of Illinois all moneys becoming due under
this Act and under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of registration that is
issued to the applicant under this Act will permit the applicant to engage
in business without registering separately under such other law, ordinance
or resolution. In making a determination as to whether to require a bond or other security, the Department shall take into consideration whether the owner, any partner, any manager or member of a limited liability company, or a corporate officer of the applicant is or has been the owner, a partner, a manager or member of a limited liability company, or a corporate officer of another retailer that is in default for moneys due under this Act or any other tax or fee Act administered by the Department; and whether the owner, any partner, any manager or member of a limited liability company, or a corporate officer of the applicant is or has been the owner, a partner, a manager or member of a limited liability company, or a corporate officer of another retailer whose certificate of registration has been revoked within the previous 5 years under this Act or any other tax or fee Act administered by the Department.  If a bond or other security is required, the Department shall fix the amount of the bond or other security, taking into consideration the amount of money expected to become due from the applicant under this Act and under any other State tax law or municipal or county tax ordinance or resolution under which the certificate of registration that is issued to the applicant under this Act will permit the applicant to engage in business without registering separately under such other law, ordinance, or resolution. The amount of security required by
the Department shall be such as, in its opinion, will protect the State of
Illinois against failure to pay the amount which may become due from the
applicant under this Act and under any other State tax law or municipal or
county tax ordinance or resolution under which the certificate of
registration that is issued to the applicant under this Act will permit the
applicant to engage in business without registering separately under such
other law, ordinance or resolution, but the amount of the security required
by the Department shall not exceed three times the amount of the
applicant's average monthly tax liability, or $50,000.00, whichever amount
is lower.
No certificate of registration under this Act shall be issued by the
Department until the applicant provides the Department with satisfactory
security, if required, as herein provided for.
Upon receipt of the application for certificate of registration in
proper form, and upon approval by the Department of the security furnished
by the applicant, if required, the Department shall issue to such applicant a
certificate of registration which shall permit the person to whom it is
issued to engage in the business of selling tangible personal property at
retail in this State. The certificate of registration shall be
conspicuously displayed at the place of business which the person so
registered states in his application to be the principal place of business
from which he engages in the business of selling tangible personal property
at retail in this State.
No certificate of registration issued prior to July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed prior to July 1, 2017 by a taxpayer who files returns
required by this Act on a monthly basis shall be valid after the expiration
of 5 years from the date of its issuance or last renewal.  No certificate of registration issued on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after  July 1, 2017 by a taxpayer who files returns
required by this Act on a monthly basis shall be valid after the expiration
of one year from the date of its issuance or last renewal. The expiration
date of a sub-certificate of registration shall be that of the certificate
of registration to which the sub-certificate relates.  Prior to July 1, 2017, a certificate of
registration shall automatically be renewed, subject to revocation as
provided by this Act, for an additional 5 years from the date of its
expiration unless otherwise notified by the Department as provided by this
paragraph.  On and after July 1, 2017, a certificate of
registration shall automatically be renewed, subject to revocation as
provided by this Act, for an additional one year from the date of its
expiration unless otherwise notified by the Department as provided by this
paragraph.
Where a taxpayer to whom a certificate of registration is
issued under this Act is in default to the State of Illinois for delinquent
returns or for moneys due
under this Act or any other State tax law or municipal or county ordinance
administered or enforced by the Department, the Department shall, not less
than 60 days before the expiration date of such certificate of
registration, give notice to the taxpayer to whom the certificate was
issued of the account period of the delinquent returns, the amount of
tax,
penalty and interest due and owing from the
taxpayer, and that the certificate of registration shall not be
automatically renewed upon its expiration date unless the taxpayer, on or
before the date of expiration, has filed and paid the delinquent returns or
paid the defaulted amount in full.  A
taxpayer to whom such a notice is issued shall be deemed an applicant for
renewal.  The Department shall promulgate regulations establishing
procedures for taxpayers who file returns on a monthly basis but desire and
qualify to change to a quarterly or yearly filing basis and will no longer
be subject to renewal under this Section, and for taxpayers who file
returns on a yearly or quarterly basis but who desire or are required to
change to a monthly filing basis and will be subject to renewal under
this Section.
The Department may in its discretion approve renewal by an applicant
who is in default if, at the time of application for renewal, the applicant
files all of the delinquent returns or pays to the Department such
percentage of the defaulted amount as may be
determined by the Department and agrees in writing to waive all limitations
upon the Department for collection of the remaining defaulted amount to the
Department over a period not to exceed 5 years from the date of renewal of
the certificate; however, no renewal application submitted by an applicant
who is in default shall be approved if the immediately preceding renewal by
the applicant was conditioned upon the installment payment
agreement described in this Section.  The payment agreement herein provided
for shall be in addition to and not in lieu of the security that may be required by
this Section of a taxpayer who is no longer considered a prior continuous
compliance taxpayer.  The execution of the payment agreement as provided in
this Act shall not toll the accrual of interest at the statutory rate.
The Department may suspend a certificate of registration if the Department finds that the person to whom the certificate of registration has been issued knowingly sold contraband cigarettes.
A certificate of registration issued under this Act more than 5 years
before January 1, 1990 (the effective date of Public Act 86-383) shall expire and
be subject to the renewal provisions of this Section on the next
anniversary of the date of issuance of such certificate which occurs more
than 6 months after January 1, 1990 (the effective date of Public Act 86-383).  A
certificate of registration issued less than 5 years before January 1, 1990 (the effective
date of Public Act 86-383) shall expire and be subject to the
renewal provisions of this Section on the 5th anniversary of the issuance
of the certificate.
If the person so registered states that he operates other places of
business from which he engages in the business of selling tangible personal
property at retail in this State, the Department shall furnish him with a
sub-certificate of registration for each such place of business, and the
applicant shall display the appropriate sub-certificate of registration at
each such place of business. All sub-certificates of registration shall
bear the same registration number as that appearing upon the certificate of
registration to which such sub-certificates relate.
If the applicant will sell tangible personal property at retail through
vending machines, the Department shall furnish him with a sub-certificate
of registration for each such vending machine, and the applicant shall
display the appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of registration to a
conspicuous part of such vending machine. If a person who is registered to sell tangible personal property at retail through vending machines adds an additional vending machine or additional vending machines to the number of vending machines he or she uses in his or her business of selling tangible personal property at retail, he or she shall notify the Department, on a form prescribed by the Department, to request an additional sub-certificate or additional sub-certificates of registration, as applicable.  With each such request, the applicant shall report the number of sub-certificates of registration he or she is requesting as well as the total number of vending machines from which he or she makes retail sales.
Where the same person engages in 2 or more businesses of selling
tangible personal property at retail in this State, which businesses are
substantially different in character or engaged in under different trade
names or engaged in under other substantially dissimilar circumstances (so
that it is more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered), the
Department may require or permit such person (subject to the same
requirements concerning the furnishing of security as those that are
provided for hereinbefore in this Section as to each application for a
certificate of registration) to apply for and obtain a separate certificate
of registration for each such business or for any of such businesses, under
a single certificate of registration supplemented by related
sub-certificates of registration.
Any person who is registered under the Retailers' Occupation Tax Act
as of March 8, 1963, and who, during the 3-year period immediately prior to
March 8, 1963, or during a continuous 3-year period part of which passed
immediately before and the remainder of which passes immediately after
March 8, 1963, has been so registered continuously and who is determined by
the Department not to have been either delinquent or deficient in the
payment of tax liability during that period under this Act or under any
other State tax law or municipal or county tax ordinance or resolution
under which the certificate of registration that is issued to the
registrant under this Act will permit the registrant to engage in business
without registering separately under such other law, ordinance or
resolution, shall be considered to be a Prior Continuous Compliance
taxpayer. Also any taxpayer who has, as verified by the Department,
faithfully and continuously complied with the condition of his bond or
other security under the provisions of this Act for a period of 3
consecutive years shall be considered to be a Prior Continuous Compliance
taxpayer.
Every Prior Continuous Compliance taxpayer shall be exempt from all
requirements under this Act concerning the furnishing of a bond or other security as a
condition precedent to his being authorized to engage in the business of
selling tangible personal property at retail in this State. This exemption
shall continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing of any returns,
or is determined by the Department (either through the Department's
issuance of a final assessment which has become final under the Act, or by
the taxpayer's filing of a return which admits tax that is not paid to be
due) to be delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax ordinance or
resolution under which the certificate of registration that is issued to
the registrant under this Act will permit the registrant to engage in
business without registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject to all the
financial responsibility requirements of this Act and, as a condition of
being allowed to continue to engage in the business of selling tangible
personal property at retail, may be required to post bond or other
acceptable security with the Department covering liability which such
taxpayer may thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to post bond or
other acceptable security with this Department guaranteeing the payment of
such admitted or established liability.
No certificate of registration shall be issued to any person who is in
default to the State of Illinois for moneys due under this Act or under any
other State tax law or municipal or county tax ordinance or resolution
under which the certificate of registration that is issued to the applicant
under this Act will permit the applicant to engage in business without
registering separately under such other law, ordinance or resolution.
Any person aggrieved by any decision of the Department under this
Section may, within 20 days after notice of such decision, protest and
request a hearing, whereupon the Department shall give notice to such
person of the time and place fixed for such hearing and shall hold a
hearing in conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In the absence
of such a protest within 20 days, the Department's decision shall become
final without any further determination being made or notice given.
With respect to security other than bonds (upon which the Department may
sue in the event of a forfeiture), if the taxpayer fails to pay, when due,
any amount whose payment such security guarantees, the Department shall,
after such liability is admitted by the taxpayer or established by the
Department through the issuance of a final assessment that has become final
under the law, convert the security which that taxpayer has furnished into
money for the State, after first giving the taxpayer at least 10 days'
written notice, by registered or certified mail, to pay the liability or
forfeit such security to the Department. If the security consists of stocks
or bonds or other securities which are listed on a public exchange, the
Department shall sell such securities through such public exchange. If
the security consists of an irrevocable bank letter of credit, the
Department shall convert the security in the manner provided for in the
Uniform Commercial Code. If the security consists of a bank certificate of
deposit, the Department shall convert the security into money by demanding
and collecting the amount of such bank certificate of deposit from the bank
which issued such certificate. If the security consists of a type of stocks
or other securities which are not listed on a public exchange, the
Department shall sell such security to the highest and best bidder after
giving at least 10 days' notice of the date, time and place of the intended
sale by publication in the "State Official Newspaper". If the Department
realizes more than the amount of such liability from the security, plus the
expenses incurred by the Department in converting the security into money,
the Department shall pay such excess to the taxpayer who furnished such
security, and the balance shall be paid into the State Treasury.
The Department shall discharge any surety and shall release and return
any security deposited, assigned, pledged or otherwise provided to it by
a taxpayer under this Section within 30 days after:
(1) such taxpayer becomes a Prior Continuous     Compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on     which he is required to remit tax to the Department, has filed a final tax return, and has paid to the Department an amount sufficient to discharge his remaining tax liability, as determined by the Department,  under this Act and under every other State tax law or municipal or county tax ordinance or resolution under which the certificate of registration issued under this Act permits the registrant to engage in business without registering separately under such other law, ordinance or resolution.  The Department shall make a final determination of the taxpayer's outstanding tax liability as expeditiously as possible after his final tax return has been filed; if the Department cannot make such final determination within 45 days after receiving the final tax return, within such period it shall so notify the taxpayer, stating its reasons therefor.(Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
(35 ILCS 120/2b) (from Ch. 120, par. 441b)
Sec. 2b. 
		
		The Department may, after notice and a hearing as
provided herein,
revoke the certificate of registration of any person who violates any of
the provisions of this Act. Before revocation of a certificate of
registration the Department shall, within 90 days after non-compliance
and at least 7 days prior to the date of the
hearing, give the person so accused notice in writing of the charge against
him or her, and on the date designated shall conduct a hearing upon
this matter.  The lapse of such 90 day period shall not preclude the
Department from conducting revocation proceedings at a later date if
necessary.  Any hearing held under this Section shall be conducted by the Director of
Revenue or by any officer or employee of the Department designated, in
writing, by the Director of Revenue.
Upon the hearing of any such proceeding, the Director of Revenue, or any
officer or employee of the Department designated, in writing, by the
Director of Revenue, may administer oaths and the Department may procure by
its subpoena the attendance of witnesses and, by its subpoena duces tecum,
the production of relevant books and papers. Any circuit court, upon application
either of the accused or of the
Department, may, by order duly entered, require the attendance of witnesses
and the production of relevant books and papers, before the Department in
any hearing relating to the revocation of certificates of registration.
Upon refusal or neglect to obey the order of the court, the court may
compel obedience thereof by proceedings for contempt.
The Department may, by application to any circuit court,
obtain an injunction
restraining any person who engages in the
business of selling tangible personal property at retail in this State
without a certificate of registration (either because the certificate
of registration has been revoked or because of a failure to obtain a
certificate of registration in the first instance) from engaging in such
business until such person, as if he or she were a new applicant for
a certificate of registration, shall comply with all of the conditions,
restrictions and requirements of Section 2a of this Act and qualify for and
obtain a
certificate of registration. Upon refusal or neglect to obey the order of
the court, the court may compel obedience
thereof by proceedings for contempt.
It shall not be a defense in a proceeding before the Department to
revoke a certificate of registration issued under the Act, or in any action
by the Department to collect any tax due under this Act, that the holder of
the certificate is a party to an installment payment agreement under
Section 2a of this Act if the liability which is the basis of the
revocation proceeding, or the tax that is sought to be collected: (1) was
incurred after the date of the agreement was approved by the Department;
or (2) was incurred prior to the date the agreement was approved by the
Department, but was not included in the agreement; or (3) was included in
the agreement, but the taxpayer is in default of the agreement.
(Source: P.A. 86-338; 86-383; 86-1028.)
(35 ILCS 120/2c) (from Ch. 120, par. 441c)
Sec. 2c. 
		
		If the purchaser is not registered with the Department as a
taxpayer, but claims to be a reseller of the tangible personal property in
such a way that such resales are not taxable under this Act or under some
other tax law which the Department may administer, such purchaser (except
in the case of an out-of-State purchaser who will always resell and deliver
the property to his customers outside Illinois) shall apply to the
Department for a resale number. Such applicant shall state facts which will
show the Department why such applicant is not liable for tax under this Act
or under some other tax law which the Department may administer on any of
his resales and shall furnish such additional information as the Department
may reasonably require.
Upon approval of the application, the Department shall assign a resale
number to the applicant and shall certify such number to him. The
Department may cancel any such number which is obtained through
misrepresentation, or which is used to make a purchase tax-free when the
purchase in fact is not a purchase for resale, or which no longer applies
because of the purchaser's having discontinued the making of tax exempt
resales of the property.
The Department may restrict the use of the number to one year at a time
or to some other definite period if the Department finds it impracticable
or otherwise inadvisable to issue such numbers for indefinite periods.
Except as provided hereinabove in this Section, a sale shall be made
tax-free on the ground of being a sale for resale if the purchaser has
an active registration number or resale number from the Department and
furnishes that number to the seller in connection with certifying to the
seller that any sale to such purchaser is nontaxable because of being a
sale for resale.
Failure to present an active registration number or resale number and a
certification to the seller that a sale is for resale creates a presumption
that a sale is not for resale.  This presumption may be rebutted by other
evidence that all of the seller's sales are sale for resale, or that a
particular sale is a sale for resale.
(Source: P.A. 83-1463.)
(35 ILCS 120/2d) (from Ch. 120, par. 441d)
Sec. 2d. Tax prepayment by motor fuel retailer.
(a) Any person engaged in the business of selling motor fuel at
retail, as defined in the Motor Fuel Tax Law, and who is not a
licensed distributor or supplier, as defined in the Motor Fuel Tax Law,
shall prepay to his or her distributor, supplier, or other reseller of
motor fuel a portion of the tax imposed by this Act if the distributor,
supplier, or other reseller of motor fuel is registered under Section 2a or
Section 2c of this Act.  The prepayment requirement provided for in this
Section does not apply to liquid propane gas.
(b) Beginning on July 1, 2000 and through December 31, 2000, the Retailers'
Occupation Tax paid to the distributor, supplier,
or other reseller shall be an amount equal to $0.01 per
gallon of the motor fuel, except gasohol as defined in Section 2-10 of
this Act which shall be an amount equal to $0.01 per gallon,
purchased from the distributor, supplier, or other reseller.
(c) Before July 1, 2000 and then beginning on January 1, 2001 and through June
30, 2003,
the Retailers' Occupation Tax paid
to the distributor, supplier, or other reseller shall be an amount equal to
$0.04 per gallon
of the motor fuel, except gasohol as defined in Section 2-10 of this Act which
shall be an
amount equal to $0.03 per gallon, purchased from the distributor, supplier, or
other
reseller.
(d) Beginning July 1, 2003 and through December 31, 2010, the Retailers' Occupation Tax paid
to
the
distributor, supplier, or other reseller shall be an amount equal to $0.06 per
gallon of the
motor fuel, except gasohol as defined in Section 2-10 of this Act which shall
be an
amount equal to $0.05 per gallon, purchased from the distributor, supplier, or
other
reseller.
(e) Beginning on January 1, 2011 and thereafter, the Retailers' Occupation Tax paid to the distributor, supplier, or other reseller shall be at the rate established by the Department under this subsection.  The rate shall be established by the Department on January 1 and July 1 of each year using the average selling price, as defined in Section 1 of this Act, per gallon of motor fuel sold in the State during the previous 6 months and multiplying that amount by 6.25% to determine the cents per gallon rate.  Beginning on January 1, 2024 and through December 31, 2028,  in the case of gasohol, as defined in Section 3-40 of the Use Tax Act, the rate shall be 90% of the rate established by the Department under this subsection for motor fuel.  Beginning on January 1, 2024 and through December 31, 2028, in the case of mid-range ethanol blends, as defined in Section 3-44.3 of the Use Tax Act, the rate shall be 80% of the rate established by the Department under this subsection for motor fuel. The Department shall provide persons subject to this Section notice of the rate established under this subsection at least 20 days prior to each January 1 and July 1.  Publication of the established rate on the Department's internet website shall constitute sufficient notice under this Section.  The Department may use data derived from independent surveys conducted or accumulated by third parties to determine the average selling price per gallon of motor fuel sold in the State.
(f) Any person engaged in the business of selling motor fuel at retail shall
be entitled to a credit against tax due under this Act in an amount equal
to the tax paid to the distributor, supplier, or other reseller.
(g) Every distributor, supplier, or other reseller registered as provided in
Section 2a or Section 2c of this Act shall remit the prepaid tax on all
motor fuel that is due from any person engaged in the business of selling
at retail motor fuel with the returns filed under Section 2f or Section 3
of this Act, but the vendors discount provided in Section 3 shall not apply
to the amount of prepaid tax that is remitted. Any distributor or supplier
who fails to properly collect and remit the tax shall be liable for the
tax.  For purposes of this Section, the prepaid tax is due on invoiced
gallons sold during a month by the 20th day of the following month.
(Source: P.A. 103-9, eff. 6-7-23.)
(35 ILCS 120/2e) (from Ch. 120, par. 441e)
Sec. 2e. 
		
		Every such distributor or supplier shall deliver a statement
of tax paid to each purchaser and the Department of Revenue not later
than the 20th day of the month following the month during which a
transaction occurred, showing: the number of gallons of motor fuel sold or
distributed during the preceding month to that purchaser; identifying the
purchaser to whom it was sold or distributed, including the purchaser's tax
registration number; and the amount collected from the purchaser.
(Source: P.A. 87-14.)
(35 ILCS 120/2f) (from Ch. 120, par. 441f)
Sec. 2f. 
		
		Resellers of motor fuel shall file a return by
the 20th of the month following the month during which a transaction occurred
showing an itemized statement of the amount of motor fuel sold, distributed and used
by the reseller, identifying the purchaser to whom it was sold
including the purchaser's tax registration number, the amount of tax
collected from the purchaser, or delivery point if
the motor fuel was delivered to an unregistered purchaser outside this State,
name and address and the total quantity of motor fuel sold or transferred
to each purchaser in the preceding calendar month and such other information
as the Department may reasonably require.
(Source: P.A. 87-14.)
(35 ILCS 120/2g) (from Ch. 120, par. 441g)
Sec. 2g. 
		
		All provisions of Sections 4 through 13.5 of this Act shall
apply, as far as practicable, to returns filed pursuant to Section 2f.
(Source: P.A. 87-895.)
(35 ILCS 120/2h) (from Ch. 120, par. 441h)
Sec. 2h. 
		
		For purposes of this Act, a corporation, limited liability
company, society, association, foundation or institution organized and operated
exclusively for educational purposes shall include:  all tax-supported public
schools; private schools which offer systematic instruction in useful branches
of learning by methods common to public schools and which compare favorably in
their scope and intensity with the course of study presented in tax-supported
schools; licensed day care centers as defined in Section 2.09 of the Child Care
Act of 1969 which are operated by a not for profit corporation, society,
association, foundation, institution or organization; vocational
or technical schools or institutes organized and operated exclusively to
provide a course of study of not less than 6 weeks duration and designed
to prepare individuals to follow a trade or to pursue a manual, technical,
mechanical, industrial, business or commercial occupation.
However, a corporation, limited liability company, society, association,
foundation or institution organized  and operated for the purpose of offering
professional, trade or business seminars of short duration, self-improvement or
personality development courses, courses which are avocational or recreational
in nature, courses pursued entirely by open circuit television or radio,
correspondence courses, or courses which do not provide specialized training
within a specific vocational or technical field shall not be considered to be
organized and operated exclusively for educational purposes.
(Source: P.A. 88-480.)
(35 ILCS 120/2i) (from Ch. 120, par. 441i)
Sec. 2i. 
		
		Notwithstanding any other provision to the contrary, any person
who is required to file a bond pursuant to any provision of this Act and
who has continuously complied with all provisions of this Act for 24 or
more consecutive months, shall no longer be required to comply with the
bonding provisions of this Act so long as such person continues his compliance
with the provisions of this Act.
(Source: P.A. 84-1408.)
(35 ILCS 120/2j)
Sec. 2j. Sorbent purchasing reports. Illinois businesses that purchase sorbents for use in mercury control, as described in 35 Ill. Adm.  Code 225, shall file a monthly report with the Department stating the amount of sorbent purchased during the previous month, the purchase price of the sorbent, the amount of State occupation and use taxes paid on the purchase of the sorbent (whether to the selling retailer or directly to the Department of Revenue pursuant to a direct pay permit), and any other information the Department may reasonably require. In sales of sorbents between related parties, the purchase price of the sorbent must have been determined in an arms-length transaction. The report shall be filed with the Department on or before the 20th day of each month following a month in which sorbents were purchased, on a form provided by the Department. However, no report need be filed in a month when the taxpayer made no reportable purchases of sorbents in the previous month. The Department shall provide a monthly summary of these reports to the Illinois Environmental Protection Agency. Upon request, the Illinois Environmental Protection Agency shall provide the Department with a list of Illinois businesses that are subject to 35 Ill. Adm. Code 225.
(Source: P.A. 97-95, eff. 7-12-11.)
(35 ILCS 120/3) (from Ch. 120, par. 442)
(Text of Section from P.A. 103-9)
Sec. 3. Except as provided in this Section, on or before the twentieth
day of each calendar month, every person engaged in the business of
selling tangible personal property at retail in this State during the
preceding calendar month shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his     principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;
3. Total amount of receipts received by him during     the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;
4. Total amount received by him during the preceding     calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during     the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;
7. The amount of credit provided in Section 2d of     this Act;
8. The amount of tax due, including the amount of tax     that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the     Department may require.
On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically.  Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of prepaid tax issued
pursuant to Section 2e for which credit is claimed.
Prior to October 1, 2003, and on and after September 1, 2004 a retailer may accept a Manufacturer's Purchase
Credit
certification from a purchaser in satisfaction of Use Tax
as provided in Section 3-85 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-85
of the Use Tax Act.  A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided
in
Section 3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts
subject to tax from a qualifying purchase.  A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed.  Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
Beginning on July 1, 2023 and through December 31, 2032, a retailer may accept a Sustainable Aviation Fuel Purchase Credit certification from an air common carrier-purchaser in satisfaction of Use Tax on aviation fuel as provided in Section 3-87 of the Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-87 of the Use Tax Act. A Sustainable Aviation Fuel Purchase Credit certification accepted by a retailer in accordance with this paragraph may be used by that retailer to satisfy Retailers' Occupation Tax liability (but not in satisfaction of penalty or interest) in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a sale of aviation fuel. In addition, for a sale of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, retailers must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold by the retailer and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under Section 3-87 of the Use Tax Act. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter.  The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business     from which he engages in the business of selling tangible personal property at retail in this State;
3. The total amount of taxable receipts received by     him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of     this Act;
5. The amount of tax due; and
6. Such other reasonable information as the     Department may require.
Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return.  The requirements related to the return shall be as otherwise provided in this Section.  Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department.  For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a licensed
distributor, importing distributor, or manufacturer, as defined in the Liquor
Control Act of 1934, but is engaged in the business of
selling, at retail, alcoholic liquor
 shall file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total amount paid for
alcoholic liquor purchased during the preceding month and such other
information as is reasonably required by the Department.
The Department may adopt rules to require
that this statement be filed in an electronic or telephonic format.  Such rules
may provide for exceptions from the filing requirements of this paragraph.  For
the
purposes of this
paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing distributor, and
manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934,
shall file a
statement with the Department of Revenue, no later than the 10th day of the
month for the
preceding month during which transactions occurred, by electronic means,
showing the
total amount of gross receipts from the sale of alcoholic liquor sold or
distributed during
the preceding month to purchasers; identifying the purchaser to whom it was
sold or
distributed; the purchaser's tax registration number; and such other
information
reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means  to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred.  The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information.  If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or creditable,
such amount shall be disregarded if it is less than 50 cents and shall be
increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993,
a taxpayer who has an average monthly tax liability of $150,000 or more shall
make all payments required by rules of the
Department by electronic funds transfer.  Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer.  The term "annual tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other State and local
occupation and use tax laws administered by the Department, for the immediately
preceding calendar year.
The term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this
Act, and under all other State and local occupation and use tax
laws administered by the Department, for the immediately preceding calendar
year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds
transfer.  All taxpayers
required to make payments by electronic funds transfer shall make those
payments for
a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with
the permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Any amount which is required to be shown or reported on any return or
other document under this Act shall, if such amount is not a whole-dollar
amount, be increased to the nearest whole-dollar amount in any case where
the fractional part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a dollar is less
than 50 cents.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department does not exceed
$200, the Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March of a given
year being due by April 20 of such year; with the return for April, May and
June of a given year being due by July 20 of such year; with the return for
July, August and September of a given year being due by October 20 of such
year, and with the return for October, November and December of a given
year being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability with the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
Where the same person has more than one business registered with the
Department under separate registrations under this Act, such person may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 2-5 of
this Act, then
that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting return form.  For
purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with an agency of
this State, so that all
retailers' occupation tax liability is required to be reported, and is
reported, on such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file monthly or
quarterly returns.  However, those retailers shall be required to
file returns on an annual basis.
The transaction reporting return, in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 1 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 1 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the day of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so.  The transaction reporting return and tax remittance or proof of
exemption from the Illinois use tax may be transmitted to the Department
by way of the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if titling or
registration is required) if the Department and such agency or State
officer determine that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
use tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer.  The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of the tax or proof
of exemption made to the Department before the retailer is willing to
take these actions and such user has not paid the tax to the retailer,
such user may certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed.  When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return period to
purchasers, on account of tangible personal property returned to the
seller, shall be allowed as a deduction under subdivision 5 of his monthly
or quarterly return, as the case may be, in case the
seller had theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had paid the tax
imposed by this Act with respect to such receipts.
Where the seller is a corporation, the return filed on behalf of such
corporation shall be signed by the president, vice-president, secretary
or treasurer or by the properly accredited agent of such corporation.
Where the seller is a limited liability company, the return filed on behalf
of the limited liability company shall be signed by a manager, member, or
properly accredited agent of the limited liability company.
Except as provided in this Section, the retailer filing the return
under this Section shall, at the time of filing such return, pay to the
Department the amount of tax imposed by this Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying data to
the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.  Any prepayment made pursuant to Section 2d
of this Act shall be included in the amount on which such
2.1% or 1.75% discount is computed.  In the case of retailers who report
and pay the tax on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales
tax to be remitted in accordance with Section 2d of this Act, was
$10,000
or more during the preceding 4 complete calendar quarters, he shall file a
return with the Department each month by the 20th day of the month next
following the month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax
to be remitted in accordance with Section 2d of this Act, was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred.
 If the month
during which such tax liability is incurred began prior to January 1, 1985,
each payment shall be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department not to exceed
1/4 of the average monthly liability of the taxpayer to the Department for
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability in such 4 quarter period).  If
the month during which such tax liability is incurred begins on or after
January 1, 1985 and prior to January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar
month of the preceding year.  If the month during which such tax
liability is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.  If the month
during which such tax liability is incurred begins on or after January 1,
1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each
payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period.  The
amount of such quarter monthly payments shall be credited against
the final tax liability of the taxpayer's return for that month.  Before
October 1, 2000, once
applicable, the requirement of the making of quarter monthly payments to
the Department by taxpayers having an average monthly tax liability of
$10,000 or more as determined in the manner provided above
shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000.  However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for a change in such taxpayer's reporting
status.  On and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as determined in the manner
provided above shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest liability) is less than
$19,000 or until such taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete calendar quarter
period is less than $20,000.  However, if a taxpayer can show the Department
that a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such taxpayer's
reporting status
unless it finds that such change is seasonal in nature and not likely to be
long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred.  If any such quarter monthly payment is not paid at the time or
in the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on the difference
between the minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d
of this Act to collect and remit prepaid taxes and has collected prepaid
taxes which average in excess of $25,000 per month during the preceding
2 complete calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such liability
is incurred.  If the month during which such tax liability is incurred
began prior to September 1, 1985 (the effective date of Public Act 84-221), each
payment shall be in an amount not less than 22.5% of the taxpayer's actual
liability under Section 2d.  If the month during which such tax liability
is incurred begins on or after January 1, 1986, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month of the
preceding calendar year.  If the month during which such tax liability is
incurred begins on or after January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar month of the
preceding year.  The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be.  Once
applicable, the requirement of the making of quarter monthly payments to
the Department pursuant to this paragraph shall continue until such
taxpayer's average monthly prepaid tax collections during the preceding 2
complete calendar quarters is $25,000 or less.  If any such quarter monthly
payment is not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes that
average in excess of $20,000 per month during the preceding 4 complete calendar
quarters shall file a return with the Department as required by Section 2f
and shall make payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred.  Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar month of the
preceding year.  The amount of the quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be.  Once applicable, the
requirement of the making of quarter monthly payments to the Department
pursuant to this paragraph shall continue until the taxpayer's average monthly
prepaid tax collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of lowest liability) is
less than $19,000 or until such taxpayer's average monthly liability to the
Department as computed for each calendar quarter of the 4 preceding complete
calendar quarters is less than $20,000.  If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Use Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown on an original
monthly return, the Department shall, if requested by the taxpayer, issue to
the taxpayer a credit memorandum no later than 30 days after the date of
payment.  The credit evidenced by such credit memorandum may
be assigned by the taxpayer to a similar taxpayer under this Act, the
Use Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations to be prescribed by the
Department.  If no such request is made, the taxpayer may credit such excess
payment against tax liability subsequently to be remitted to the Department
under this Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations
prescribed by the Department.  If the Department subsequently determined
that all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under Section 2d of
this Act which exceeds the taxpayer's liability to the Department under
this Act for the month for which the taxpayer is filing a return, the
Department shall issue the taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund, a special fund in the State treasury which
is hereby created, the net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund, a special fund in the State
treasury which is hereby created, 4% of the net revenue realized
for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund.  The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under  the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant
to this Act, (a) 1.75% thereof shall be paid into the Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989,
3.8% thereof shall be paid into the Build Illinois Fund; provided, however,
that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case may be, of the moneys received by the Department and required to
be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called the "Tax
Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys
being hereinafter called the "Tax Act Amount", and (2) the amount
transferred to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as hereinafter
defined), an amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts
specified below for fiscal years 1986 through 1993:
Fiscal Year
Annual Specified Amount
1986
$54,800,000
1987
$76,650,000
1988
$80,480,000
1989
$88,510,000
1990
$115,330,000
1991
$145,470,000
1992
$182,730,000
1993
$206,520,000;
and means the Certified Annual Debt Service Requirement (as defined in
Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever
is greater, for fiscal year 1994 and each fiscal year thereafter; and
further provided, that if on the last business day of any month the sum of
(1) the Tax Act Amount required to be deposited into the Build Illinois
Bond Account in the Build Illinois Fund during such month and (2) the
amount transferred to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to this clause (b)
for any fiscal year in excess of the greater of (i) the Tax Act Amount or
(ii) the Annual Specified Amount for such fiscal year.  The amounts payable
into the Build Illinois Fund under clause (b) of the first sentence in this
paragraph shall be payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking into account
any future investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the principal of,
premium, if any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and costs payable
with respect thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget).  If on the last
business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the Build Illinois
Fund in such month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of the Build
Illinois Bond Act, an amount equal to such deficiency shall be immediately
paid from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the first sentence
of this paragraph and shall reduce the amount otherwise payable for such
fiscal year pursuant to that clause (b).  The moneys received by the
Department pursuant to this Act and required to be deposited into the Build
Illinois Fund are subject to the pledge, claim and charge set forth in
Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year
Total Deposit
1993
$0
1994
53,000,000
1995
58,000,000
1996
61,000,000
1997
64,000,000
1998
68,000,000
1999
71,000,000
2000
75,000,000
2001
80,000,000
2002
93,000,000
2003
99,000,000
2004
103,000,000
2005
108,000,000
2006
113,000,000
2007
119,000,000
2008
126,000,000
2009
132,000,000
2010
139,000,000
2011
146,000,000
2012
153,000,000
2013
161,000,000
2014
170,000,000
2015
179,000,000
2016
189,000,000
2017
199,000,000
2018
210,000,000
2019
221,000,000
2020
233,000,000
2021
300,000,000
2022
300,000,000
2023
300,000,000
2024
300,000,000
2025
300,000,000
2026
300,000,000
2027
375,000,000
2028
375,000,000
2029
375,000,000
2030
375,000,000
2031
375,000,000
2032
375,000,000
2033
375,000,000
2034
375,000,000
2035
375,000,000
2036
450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs
or in any amendments
thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605-332 of the
Department of Commerce and Economic Opportunity

Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act.  The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year..............................Total Deposit
2024......................................$200,000,000
2025.....................................$206,000,000
2026.....................................$212,200,000
2027.....................................$218,500,000
2028.....................................$225,100,000
2029.....................................$288,700,000
2030.....................................$298,900,000
2031.....................................$309,300,000
2032.....................................$320,100,000
2033.....................................$331,200,000
2034.....................................$341,200,000
2035.....................................$351,400,000
2036.....................................$361,900,000
2037.....................................$372,800,000
2038.....................................$384,000,000
2039.....................................$395,500,000
2040.....................................$407,400,000
2041.....................................$419,600,000
2042.....................................$432,200,000
2043.....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized  from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol.  As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to
this Act, 75% thereof shall be paid into the State treasury and 25% shall
be reserved in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice.  Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last Federal income
tax return.  If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the retailer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference.  The retailer's annual
return to the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used from stock
or taken from stock and given away by the retailer during such year,
payroll information of the retailer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such retailer as provided for in this Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be     liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall     be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein.   Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly.  The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an annual
information return do not apply to a retailer who is not required to
file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding
month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the
State pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail selling space for
concessionaires or other types of sellers at the Illinois State Fair, DuQuoin
State Fair, county fairs, local fairs, art shows, flea markets and similar
exhibitions or events, including any transient merchant as defined by Section 2
of the Transient Merchant Act of 1987, is required to file a report with the
Department providing the name of the merchant's business, the name of the
person or persons engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the merchant, the
dates and location of the event and other reasonable information that the
Department may require.  The report must be filed not later than the 20th day
of the month next following the month during which the event with retail sales
was held.  Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible personal
property at retail as a concessionaire or other type of seller at the
Illinois State Fair, county fairs, art shows, flea markets and similar
exhibitions or events, or any transient merchants, as defined by Section 2
of the Transient Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a daily payment of
the full amount of tax due.  The Department shall impose this
requirement when it finds that there is a significant risk of loss of
revenue to the State at such an exhibition or event.  Such a finding
shall be based on evidence that a substantial number of concessionaires
or other sellers who are not residents of Illinois will be engaging in
the business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of loss of revenue
to the State.  The Department shall notify concessionaires and other sellers
affected by the imposition of this requirement.  In the absence of
notification by the Department, the concessionaires and other sellers
shall file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-9, eff. 6-7-23.)
(Text of Section from P.A. 103-154)
Sec. 3. Except as provided in this Section, on or before the twentieth
day of each calendar month, every person engaged in the business of
selling tangible personal property at retail in this State during the
preceding calendar month shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his     principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;
3. Total amount of receipts received by him during     the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;
4. Total amount received by him during the preceding     calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during     the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;
7. The amount of credit provided in Section 2d of     this Act;
8. The amount of tax due, including the amount of tax     that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the     Department may require.
On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically.  Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of prepaid tax issued
pursuant to Section 2e for which credit is claimed.
Prior to October 1, 2003, and on and after September 1, 2004 a retailer may accept a Manufacturer's Purchase
Credit
certification from a purchaser in satisfaction of Use Tax
as provided in Section 3-85 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-85
of the Use Tax Act.  A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided
in
Section 3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts
subject to tax from a qualifying purchase.  A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed.  Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter.  The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business     from which he engages in the business of selling tangible personal property at retail in this State;
3. The total amount of taxable receipts received by     him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of     this Act;
5. The amount of tax due; and
6. Such other reasonable information as the     Department may require.
Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return.  The requirements related to the return shall be as otherwise provided in this Section.  Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department.  For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a licensed
distributor, importing distributor, or manufacturer, as defined in the Liquor
Control Act of 1934, but is engaged in the business of
selling, at retail, alcoholic liquor
 shall file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total amount paid for
alcoholic liquor purchased during the preceding month and such other
information as is reasonably required by the Department.
The Department may adopt rules to require
that this statement be filed in an electronic or telephonic format.  Such rules
may provide for exceptions from the filing requirements of this paragraph.  For
the
purposes of this
paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing distributor, and
manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934,
shall file a
statement with the Department of Revenue, no later than the 10th day of the
month for the
preceding month during which transactions occurred, by electronic means,
showing the
total amount of gross receipts from the sale of alcoholic liquor sold or
distributed during
the preceding month to purchasers; identifying the purchaser to whom it was
sold or
distributed; the purchaser's tax registration number; and such other
information
reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means  to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred.  The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information.  If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or creditable,
such amount shall be disregarded if it is less than 50 cents and shall be
increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993,
a taxpayer who has an average monthly tax liability of $150,000 or more shall
make all payments required by rules of the
Department by electronic funds transfer.  Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer.  The term "annual tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other State and local
occupation and use tax laws administered by the Department, for the immediately
preceding calendar year.
The term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this
Act, and under all other State and local occupation and use tax
laws administered by the Department, for the immediately preceding calendar
year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds
transfer.  All taxpayers
required to make payments by electronic funds transfer shall make those
payments for
a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with
the permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Any amount which is required to be shown or reported on any return or
other document under this Act shall, if such amount is not a whole-dollar
amount, be increased to the nearest whole-dollar amount in any case where
the fractional part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a dollar is less
than 50 cents.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department does not exceed
$200, the Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March of a given
year being due by April 20 of such year; with the return for April, May and
June of a given year being due by July 20 of such year; with the return for
July, August and September of a given year being due by October 20 of such
year, and with the return for October, November and December of a given
year being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability with the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
Where the same person has more than one business registered with the
Department under separate registrations under this Act, such person may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 2-5 of
this Act, then
that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting return form.  For
purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with an agency of
this State, so that all
retailers' occupation tax liability is required to be reported, and is
reported, on such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file monthly or
quarterly returns.  However, those retailers shall be required to
file returns on an annual basis.
The transaction reporting return, in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 1 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 1 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the day of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so.  The transaction reporting return and tax remittance or proof of
exemption from the Illinois use tax may be transmitted to the Department
by way of the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if titling or
registration is required) if the Department and such agency or State
officer determine that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
use tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer.  The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of the tax or proof
of exemption made to the Department before the retailer is willing to
take these actions and such user has not paid the tax to the retailer,
such user may certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed.  When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return period to
purchasers, on account of tangible personal property returned to the
seller, shall be allowed as a deduction under subdivision 5 of his monthly
or quarterly return, as the case may be, in case the
seller had theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had paid the tax
imposed by this Act with respect to such receipts.
Where the seller is a corporation, the return filed on behalf of such
corporation shall be signed by the president, vice-president, secretary
or treasurer or by the properly accredited agent of such corporation.
Where the seller is a limited liability company, the return filed on behalf
of the limited liability company shall be signed by a manager, member, or
properly accredited agent of the limited liability company.
Except as provided in this Section, the retailer filing the return
under this Section shall, at the time of filing such return, pay to the
Department the amount of tax imposed by this Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying data to
the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.  Any prepayment made pursuant to Section 2d
of this Act shall be included in the amount on which such
2.1% or 1.75% discount is computed.  In the case of retailers who report
and pay the tax on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales
tax to be remitted in accordance with Section 2d of this Act, was
$10,000
or more during the preceding 4 complete calendar quarters, he shall file a
return with the Department each month by the 20th day of the month next
following the month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax
to be remitted in accordance with Section 2d of this Act, was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred.
 If the month
during which such tax liability is incurred began prior to January 1, 1985,
each payment shall be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department not to exceed
1/4 of the average monthly liability of the taxpayer to the Department for
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability in such 4 quarter period).  If
the month during which such tax liability is incurred begins on or after
January 1, 1985 and prior to January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar
month of the preceding year.  If the month during which such tax
liability is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.  If the month
during which such tax liability is incurred begins on or after January 1,
1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each
payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period.  The
amount of such quarter monthly payments shall be credited against
the final tax liability of the taxpayer's return for that month.  Before
October 1, 2000, once
applicable, the requirement of the making of quarter monthly payments to
the Department by taxpayers having an average monthly tax liability of
$10,000 or more as determined in the manner provided above
shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000.  However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for a change in such taxpayer's reporting
status.  On and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as determined in the manner
provided above shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest liability) is less than
$19,000 or until such taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete calendar quarter
period is less than $20,000.  However, if a taxpayer can show the Department
that a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such taxpayer's
reporting status
unless it finds that such change is seasonal in nature and not likely to be
long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred.  If any such quarter monthly payment is not paid at the time or
in the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on the difference
between the minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d
of this Act to collect and remit prepaid taxes and has collected prepaid
taxes which average in excess of $25,000 per month during the preceding
2 complete calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such liability
is incurred.  If the month during which such tax liability is incurred
began prior to September 1, 1985 (the effective date of Public Act 84-221), each
payment shall be in an amount not less than 22.5% of the taxpayer's actual
liability under Section 2d.  If the month during which such tax liability
is incurred begins on or after January 1, 1986, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month of the
preceding calendar year.  If the month during which such tax liability is
incurred begins on or after January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar month of the
preceding year.  The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be.  Once
applicable, the requirement of the making of quarter monthly payments to
the Department pursuant to this paragraph shall continue until such
taxpayer's average monthly prepaid tax collections during the preceding 2
complete calendar quarters is $25,000 or less.  If any such quarter monthly
payment is not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes that
average in excess of $20,000 per month during the preceding 4 complete calendar
quarters shall file a return with the Department as required by Section 2f
and shall make payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred.  Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar month of the
preceding year.  The amount of the quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be.  Once applicable, the
requirement of the making of quarter monthly payments to the Department
pursuant to this paragraph shall continue until the taxpayer's average monthly
prepaid tax collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of lowest liability) is
less than $19,000 or until such taxpayer's average monthly liability to the
Department as computed for each calendar quarter of the 4 preceding complete
calendar quarters is less than $20,000.  If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Use Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown on an original
monthly return, the Department shall, if requested by the taxpayer, issue to
the taxpayer a credit memorandum no later than 30 days after the date of
payment.  The credit evidenced by such credit memorandum may
be assigned by the taxpayer to a similar taxpayer under this Act, the
Use Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations to be prescribed by the
Department.  If no such request is made, the taxpayer may credit such excess
payment against tax liability subsequently to be remitted to the Department
under this Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations
prescribed by the Department.  If the Department subsequently determined
that all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under Section 2d of
this Act which exceeds the taxpayer's liability to the Department under
this Act for the month for which the taxpayer is filing a return, the
Department shall issue the taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund, a special fund in the State treasury which
is hereby created, the net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund, a special fund in the State
treasury which is hereby created, 4% of the net revenue realized
for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund.  The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under  the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant
to this Act, (a) 1.75% thereof shall be paid into the Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989,
3.8% thereof shall be paid into the Build Illinois Fund; provided, however,
that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case may be, of the moneys received by the Department and required to
be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called the "Tax
Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys
being hereinafter called the "Tax Act Amount", and (2) the amount
transferred to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as hereinafter
defined), an amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts
specified below for fiscal years 1986 through 1993:
Fiscal Year
Annual Specified Amount
1986
$54,800,000
1987
$76,650,000
1988
$80,480,000
1989
$88,510,000
1990
$115,330,000
1991
$145,470,000
1992
$182,730,000
1993
$206,520,000;
and means the Certified Annual Debt Service Requirement (as defined in
Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever
is greater, for fiscal year 1994 and each fiscal year thereafter; and
further provided, that if on the last business day of any month the sum of
(1) the Tax Act Amount required to be deposited into the Build Illinois
Bond Account in the Build Illinois Fund during such month and (2) the
amount transferred to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to this clause (b)
for any fiscal year in excess of the greater of (i) the Tax Act Amount or
(ii) the Annual Specified Amount for such fiscal year.  The amounts payable
into the Build Illinois Fund under clause (b) of the first sentence in this
paragraph shall be payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking into account
any future investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the principal of,
premium, if any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and costs payable
with respect thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget).  If on the last
business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the Build Illinois
Fund in such month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of the Build
Illinois Bond Act, an amount equal to such deficiency shall be immediately
paid from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the first sentence
of this paragraph and shall reduce the amount otherwise payable for such
fiscal year pursuant to that clause (b).  The moneys received by the
Department pursuant to this Act and required to be deposited into the Build
Illinois Fund are subject to the pledge, claim and charge set forth in
Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year
Total Deposit
1993
$0
1994
53,000,000
1995
58,000,000
1996
61,000,000
1997
64,000,000
1998
68,000,000
1999
71,000,000
2000
75,000,000
2001
80,000,000
2002
93,000,000
2003
99,000,000
2004
103,000,000
2005
108,000,000
2006
113,000,000
2007
119,000,000
2008
126,000,000
2009
132,000,000
2010
139,000,000
2011
146,000,000
2012
153,000,000
2013
161,000,000
2014
170,000,000
2015
179,000,000
2016
189,000,000
2017
199,000,000
2018
210,000,000
2019
221,000,000
2020
233,000,000
2021
300,000,000
2022
300,000,000
2023
300,000,000
2024
300,000,000
2025
300,000,000
2026
300,000,000
2027
375,000,000
2028
375,000,000
2029
375,000,000
2030
375,000,000
2031
375,000,000
2032
375,000,000
2033
375,000,000
2034
375,000,000
2035
375,000,000
2036
450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs
or in any amendments
thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any
amendments thereto hereafter enacted, beginning with the receipt of the first
report of taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy Infrastructure
Fund 80% of the net revenue realized from the 6.25% general rate on the
selling price of Illinois-mined coal that was sold to an eligible business.
For purposes of this paragraph, the term "eligible business" means a new
electric generating facility certified pursuant to Section 605-332 of the
Department of Commerce and Economic Opportunity

Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act.  The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year..............................Total Deposit
2024......................................$200,000,000
2025.....................................$206,000,000
2026.....................................$212,200,000
2027.....................................$218,500,000
2028.....................................$225,100,000
2029.....................................$288,700,000
2030.....................................$298,900,000
2031.....................................$309,300,000
2032.....................................$320,100,000
2033.....................................$331,200,000
2034.....................................$341,200,000
2035.....................................$351,400,000
2036.....................................$361,900,000
2037.....................................$372,800,000
2038.....................................$384,000,000
2039.....................................$395,500,000
2040.....................................$407,400,000
2041.....................................$419,600,000
2042.....................................$432,200,000
2043.....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized  from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol.  As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to
this Act, 75% thereof shall be paid into the State treasury and 25% shall
be reserved in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice.  Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last Federal income
tax return.  If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the retailer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference.  The retailer's annual
return to the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used from stock
or taken from stock and given away by the retailer during such year,
payroll information of the retailer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such retailer as provided for in this Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be     liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall     be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein.   Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly.  The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an annual
information return do not apply to a retailer who is not required to
file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding
month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the
State pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail selling space for
concessionaires or other types of sellers at the Illinois State Fair, DuQuoin
State Fair, county fairs, local fairs, art shows, flea markets and similar
exhibitions or events, including any transient merchant as defined by Section 2
of the Transient Merchant Act of 1987, is required to file a report with the
Department providing the name of the merchant's business, the name of the
person or persons engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the merchant, the
dates and location of the event and other reasonable information that the
Department may require.  The report must be filed not later than the 20th day
of the month next following the month during which the event with retail sales
was held.  Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible personal
property at retail as a concessionaire or other type of seller at the
Illinois State Fair, county fairs, art shows, flea markets and similar
exhibitions or events, or any transient merchants, as defined by Section 2
of the Transient Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a daily payment of
the full amount of tax due.  The Department shall impose this
requirement when it finds that there is a significant risk of loss of
revenue to the State at such an exhibition or event.  Such a finding
shall be based on evidence that a substantial number of concessionaires
or other sellers who are not residents of Illinois will be engaging in
the business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of loss of revenue
to the State.  The Department shall notify concessionaires and other sellers
affected by the imposition of this requirement.  In the absence of
notification by the Department, the concessionaires and other sellers
shall file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23.)
(Text of Section from P.A. 103-363)
Sec. 3. Except as provided in this Section, on or before the twentieth
day of each calendar month, every person engaged in the business of
selling tangible personal property at retail in this State during the
preceding calendar month shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his     principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;
3. Total amount of receipts received by him during     the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;
4. Total amount received by him during the preceding     calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during     the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;
7. The amount of credit provided in Section 2d of     this Act;
8. The amount of tax due, including the amount of tax     that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the     Department may require.
On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically.  Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after the proper notice
and demand for signature by the Department, the return shall be considered
valid and any amount shown to be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of prepaid tax issued
pursuant to Section 2e for which credit is claimed.
Prior to October 1, 2003, and on and after September 1, 2004 a retailer may accept a Manufacturer's Purchase
Credit
certification from a purchaser in satisfaction of Use Tax
as provided in Section 3-85 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-85
of the Use Tax Act.  A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided
in
Section 3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts
subject to tax from a qualifying purchase.  A Manufacturer's Purchase Credit
reported on any original or amended return
filed under
this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed.  Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's
Purchase Credit may be used after September 30, 2003 through August 31, 2004 to
satisfy any
tax liability imposed under this Act, including any audit liability.
The Department may require returns to be filed on a quarterly basis.
If so required, a return for each calendar quarter shall be filed on or
before the twentieth day of the calendar month following the end of such
calendar quarter.  The taxpayer shall also file a return with the
Department for each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business     from which he engages in the business of selling tangible personal property at retail in this State;
3. The total amount of taxable receipts received by     him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of     this Act;
5. The amount of tax due; and
6. Such other reasonable information as the     Department may require.
Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return.  The requirements related to the return shall be as otherwise provided in this Section.  Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department.  For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a licensed
distributor, importing distributor, or manufacturer, as defined in the Liquor
Control Act of 1934, but is engaged in the business of
selling, at retail, alcoholic liquor
 shall file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total amount paid for
alcoholic liquor purchased during the preceding month and such other
information as is reasonably required by the Department.
The Department may adopt rules to require
that this statement be filed in an electronic or telephonic format.  Such rules
may provide for exceptions from the filing requirements of this paragraph.  For
the
purposes of this
paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing distributor, and
manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934,
shall file a
statement with the Department of Revenue, no later than the 10th day of the
month for the
preceding month during which transactions occurred, by electronic means,
showing the
total amount of gross receipts from the sale of alcoholic liquor sold or
distributed during
the preceding month to purchasers; identifying the purchaser to whom it was
sold or
distributed; the purchaser's tax registration number; and such other
information
reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means  to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred.  The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information.  If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or creditable,
such amount shall be disregarded if it is less than 50 cents and shall be
increased to $1 if it is 50 cents or more.
Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.
Beginning October 1, 1993,
a taxpayer who has an average monthly tax liability of $150,000 or more shall
make all payments required by rules of the
Department by electronic funds transfer.  Beginning October 1, 1994, a taxpayer
who has an average monthly tax liability of $100,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 1995, a taxpayer who has an average monthly tax liability
of $50,000 or more shall make all
payments required by rules of the Department by electronic funds transfer.
Beginning October 1, 2000, a taxpayer who has an annual tax liability of
$200,000 or more shall make all payments required by rules of the Department by
electronic funds transfer.  The term "annual tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other State and local
occupation and use tax laws administered by the Department, for the immediately
preceding calendar year.
The term "average monthly tax liability" shall be the sum of the
taxpayer's liabilities under this
Act, and under all other State and local occupation and use tax
laws administered by the Department, for the immediately preceding calendar
year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the Department of
Revenue Law shall make all payments required by rules of the Department by
electronic funds transfer.
Before August 1 of each year beginning in 1993, the Department shall
notify all taxpayers required to make payments by electronic funds
transfer.  All taxpayers
required to make payments by electronic funds transfer shall make those
payments for
a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic funds transfer may
make payments by electronic funds transfer with
the permission of the Department.
All taxpayers required to make payment by electronic funds transfer and
any taxpayers authorized to voluntarily make payments by electronic funds
transfer shall make those payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to effectuate a
program of electronic funds transfer and the requirements of this Section.
Any amount which is required to be shown or reported on any return or
other document under this Act shall, if such amount is not a whole-dollar
amount, be increased to the nearest whole-dollar amount in any case where
the fractional part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a dollar is less
than 50 cents.
If the retailer is otherwise required to file a monthly return and if the
retailer's average monthly tax liability to the Department does not exceed
$200, the Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March of a given
year being due by April 20 of such year; with the return for April, May and
June of a given year being due by July 20 of such year; with the return for
July, August and September of a given year being due by October 20 of such
year, and with the return for October, November and December of a given
year being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or quarterly
return and if the retailer's average monthly tax liability with the
Department does not exceed $50, the Department may authorize his returns to
be filed on an annual basis, with the return for a given year being due by
January 20 of the following year.
Such quarter annual and annual returns, as to form and substance,
shall be subject to the same requirements as monthly returns.
Notwithstanding any other provision in this Act concerning the time
within which a retailer may file his return, in the case of any retailer
who ceases to engage in a kind of business which makes him responsible
for filing returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one month after
discontinuing such business.
Where the same person has more than one business registered with the
Department under separate registrations under this Act, such person may
not file each return that is due as a single return covering all such
registered businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with an agency of
this State, except as otherwise provided in this Section, every
retailer selling this kind of tangible personal property shall file,
with the Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor vehicles or
trailers transfers more than one aircraft, watercraft, motor
vehicle or trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale
or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or trailer to a
purchaser for use as a qualifying rolling stock as provided in Section 2-5 of
this Act, then
that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting return form.  For
purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with an agency of
this State, so that all
retailers' occupation tax liability is required to be reported, and is
reported, on such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file monthly or
quarterly returns.  However, those retailers shall be required to
file returns on an annual basis.
The transaction reporting return, in the case of motor vehicles
or trailers that are required to be registered with an agency of this
State, shall
be the same document as the Uniform Invoice referred to in Section 5-402
of the Illinois Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the traded-in
tangible personal property, if any, to the extent to which Section 1 of
this Act allows an exemption for the value of traded-in property; the
balance payable after deducting such trade-in allowance from the total
selling price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the purchaser by the
retailer on such transaction (or satisfactory evidence that such tax is
not due in that particular instance, if that is claimed to be the fact);
the place and date of the sale; a sufficient identification of the
property sold; such other information as is required in Section 5-402 of
the Illinois Vehicle Code, and such other information as the Department
may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show
the name and address of the seller; the name and address of the
purchaser; the amount of the selling price including the amount allowed
by the retailer for traded-in property, if any; the amount allowed by
the retailer for the traded-in tangible personal property, if any, to
the extent to which Section 1 of this Act allows an exemption for the
value of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of tax due
from the retailer with respect to such transaction; the amount of tax
collected from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that particular
instance, if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later than 20
days after the day of delivery of the item that is being sold, but may
be filed by the retailer at any time sooner than that if he chooses to
do so.  The transaction reporting return and tax remittance or proof of
exemption from the Illinois use tax may be transmitted to the Department
by way of the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if titling or
registration is required) if the Department and such agency or State
officer determine that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer shall remit
the proper amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department or its
agents, whereupon the Department shall issue, in the purchaser's name, a
use tax receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with whom, he must
title or register the tangible personal property that is involved (if
titling or registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this Act
precludes a user, who has paid the proper tax to the retailer, from
obtaining his certificate of title or other evidence of title or
registration (if titling or registration is required) upon satisfying
the Department that such user has paid the proper tax (if tax is due) to
the retailer.  The Department shall adopt appropriate rules to carry out
the mandate of this paragraph.
If the user who would otherwise pay tax to the retailer wants the
transaction reporting return filed and the payment of the tax or proof
of exemption made to the Department before the retailer is willing to
take these actions and such user has not paid the tax to the retailer,
such user may certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such certification)
transmit the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to the
Department and obtain his tax receipt or exemption determination, in
which event the transaction reporting return and tax remittance (if a
tax payment was required) shall be credited by the Department to the
proper retailer's account with the Department, but without the 2.1% or 1.75%
discount provided for in this Section being allowed.  When the user pays
the tax directly to the Department, he shall pay the tax in the same
amount and in the same form in which it would be remitted if the tax had
been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return period to
purchasers, on account of tangible personal property returned to the
seller, shall be allowed as a deduction under subdivision 5 of his monthly
or quarterly return, as the case may be, in case the
seller had theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had paid the tax
imposed by this Act with respect to such receipts.
Where the seller is a corporation, the return filed on behalf of such
corporation shall be signed by the president, vice-president, secretary
or treasurer or by the properly accredited agent of such corporation.
Where the seller is a limited liability company, the return filed on behalf
of the limited liability company shall be signed by a manager, member, or
properly accredited agent of the limited liability company.
Except as provided in this Section, the retailer filing the return
under this Section shall, at the time of filing such return, pay to the
Department the amount of tax imposed by this Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying data to
the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.  Any prepayment made pursuant to Section 2d
of this Act shall be included in the amount on which such
2.1% or 1.75% discount is computed.  In the case of retailers who report
and pay the tax on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly tax liability
to the Department
under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales
tax to be remitted in accordance with Section 2d of this Act, was
$10,000
or more during the preceding 4 complete calendar quarters, he shall file a
return with the Department each month by the 20th day of the month next
following the month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average monthly tax liability
to the Department under this Act, the Use Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax
to be remitted in accordance with Section 2d of this Act, was $20,000 or more
during the preceding 4 complete calendar quarters, he shall file a return with
the Department each month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make payment to the
Department on or before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred.
 If the month
during which such tax liability is incurred began prior to January 1, 1985,
each payment shall be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department not to exceed
1/4 of the average monthly liability of the taxpayer to the Department for
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability in such 4 quarter period).  If
the month during which such tax liability is incurred begins on or after
January 1, 1985 and prior to January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar
month of the preceding year.  If the month during which such tax
liability is incurred begins on or after January 1, 1987 and prior to
January 1, 1988, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.  If the month
during which such tax liability is incurred begins on or after January 1,
1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each
payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the month or 25% of
the taxpayer's liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the taxpayer's
liability for the same calendar month of the preceding year or 100% of the
taxpayer's actual liability for the quarter monthly reporting period.  The
amount of such quarter monthly payments shall be credited against
the final tax liability of the taxpayer's return for that month.  Before
October 1, 2000, once
applicable, the requirement of the making of quarter monthly payments to
the Department by taxpayers having an average monthly tax liability of
$10,000 or more as determined in the manner provided above
shall continue
until such taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until
such taxpayer's average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar quarter period
is less than $10,000.  However, if a taxpayer can show the
Department that
a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000 threshold
stated above, then
such taxpayer
may petition the Department for a change in such taxpayer's reporting
status.  On and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by taxpayers having an
average monthly tax liability of $20,000 or more as determined in the manner
provided above shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar quarters (excluding
the month of highest liability and the month of lowest liability) is less than
$19,000 or until such taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete calendar quarter
period is less than $20,000.  However, if a taxpayer can show the Department
that a substantial change in the taxpayer's business has occurred which causes
the taxpayer to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such taxpayer's
reporting status
unless it finds that such change is seasonal in nature and not likely to be
long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred.  If any such quarter monthly payment is not paid at the time or
in the amount required by this Section, then the taxpayer shall be liable for
penalties and interest on the difference
between the minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d
of this Act to collect and remit prepaid taxes and has collected prepaid
taxes which average in excess of $25,000 per month during the preceding
2 complete calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such liability
is incurred.  If the month during which such tax liability is incurred
began prior to September 1, 1985 (the effective date of Public Act 84-221), each
payment shall be in an amount not less than 22.5% of the taxpayer's actual
liability under Section 2d.  If the month during which such tax liability
is incurred begins on or after January 1, 1986, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month of the
preceding calendar year.  If the month during which such tax liability is
incurred begins on or after January 1, 1987, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar month of the
preceding year.  The amount of such quarter monthly payments shall be
credited against the final tax liability of the taxpayer's return for that
month filed under this Section or Section 2f, as the case may be.  Once
applicable, the requirement of the making of quarter monthly payments to
the Department pursuant to this paragraph shall continue until such
taxpayer's average monthly prepaid tax collections during the preceding 2
complete calendar quarters is $25,000 or less.  If any such quarter monthly
payment is not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after October 1, 2001.
Without regard to whether a taxpayer is required to make quarter monthly
payments as specified above, any taxpayer who is required by Section 2d of this
Act to collect and remit prepaid taxes and has collected prepaid taxes that
average in excess of $20,000 per month during the preceding 4 complete calendar
quarters shall file a return with the Department as required by Section 2f
and shall make payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred.  Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar month of the
preceding year.  The amount of the quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be.  Once applicable, the
requirement of the making of quarter monthly payments to the Department
pursuant to this paragraph shall continue until the taxpayer's average monthly
prepaid tax collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of lowest liability) is
less than $19,000 or until such taxpayer's average monthly liability to the
Department as computed for each calendar quarter of the 4 preceding complete
calendar quarters is less than $20,000.  If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer shall be liable
for penalties and interest on such difference, except insofar as the taxpayer
has previously made payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Use Tax Act, the Service
Occupation Tax Act and the Service Use Tax Act, as shown on an original
monthly return, the Department shall, if requested by the taxpayer, issue to
the taxpayer a credit memorandum no later than 30 days after the date of
payment.  The credit evidenced by such credit memorandum may
be assigned by the taxpayer to a similar taxpayer under this Act, the
Use Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations to be prescribed by the
Department.  If no such request is made, the taxpayer may credit such excess
payment against tax liability subsequently to be remitted to the Department
under this Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and regulations
prescribed by the Department.  If the Department subsequently determined
that all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under Section 2d of
this Act which exceeds the taxpayer's liability to the Department under
this Act for the month for which the taxpayer is filing a return, the
Department shall issue the taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund, a special fund in the State treasury which
is hereby created, the net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall pay into
the County and Mass Transit District Fund, a special fund in the State
treasury which is hereby created, 4% of the net revenue realized
for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of motor fuel and
gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall pay into
the Local Government Tax Fund 16% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of
tangible personal property other than aviation fuel sold on or after December 1, 2019.  This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund.  The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each
month the Department shall pay into the
Local Government Tax Fund 80% of the net revenue realized for the preceding
month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each
month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys received by the Department under  the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department pursuant
to this Act, (a) 1.75% thereof shall be paid into the Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989,
3.8% thereof shall be paid into the Build Illinois Fund; provided, however,
that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case may be, of the moneys received by the Department and required to
be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called the "Tax
Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys
being hereinafter called the "Tax Act Amount", and (2) the amount
transferred to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as hereinafter
defined), an amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts
specified below for fiscal years 1986 through 1993:
Fiscal Year
Annual Specified Amount
1986
$54,800,000
1987
$76,650,000
1988
$80,480,000
1989
$88,510,000
1990
$115,330,000
1991
$145,470,000
1992
$182,730,000
1993
$206,520,000;
and means the Certified Annual Debt Service Requirement (as defined in
Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever
is greater, for fiscal year 1994 and each fiscal year thereafter; and
further provided, that if on the last business day of any month the sum of
(1) the Tax Act Amount required to be deposited into the Build Illinois
Bond Account in the Build Illinois Fund during such month and (2) the
amount transferred to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to this clause (b)
for any fiscal year in excess of the greater of (i) the Tax Act Amount or
(ii) the Annual Specified Amount for such fiscal year.  The amounts payable
into the Build Illinois Fund under clause (b) of the first sentence in this
paragraph shall be payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking into account
any future investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the principal of,
premium, if any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and costs payable
with respect thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget).  If on the last
business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the Build Illinois
Fund in such month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of the Build
Illinois Bond Act, an amount equal to such deficiency shall be immediately
paid from other moneys received by the Department pursuant to the Tax Acts
to the Build Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the first sentence
of this paragraph and shall reduce the amount otherwise payable for such
fiscal year pursuant to that clause (b).  The moneys received by the
Department pursuant to this Act and required to be deposited into the Build
Illinois Fund are subject to the pledge, claim and charge set forth in
Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund as provided in
the preceding paragraph or in any amendment thereto hereafter enacted, the
following specified monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and Exposition
Authority provided under Section 8.25f of the State Finance Act, but not in
excess of sums designated as "Total Deposit", shall be deposited in the
aggregate from collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year
Total Deposit
1993
$0
1994
53,000,000
1995
58,000,000
1996
61,000,000
1997
64,000,000
1998
68,000,000
1999
71,000,000
2000
75,000,000
2001
80,000,000
2002
93,000,000
2003
99,000,000
2004
103,000,000
2005
108,000,000
2006
113,000,000
2007
119,000,000
2008
126,000,000
2009
132,000,000
2010
139,000,000
2011
146,000,000
2012
153,000,000
2013
161,000,000
2014
170,000,000
2015
179,000,000
2016
189,000,000
2017
199,000,000
2018
210,000,000
2019
221,000,000
2020
233,000,000
2021
300,000,000
2022
300,000,000
2023
300,000,000
2024
300,000,000
2025
300,000,000
2026
300,000,000
2027
375,000,000
2028
375,000,000
2029
375,000,000
2030
375,000,000
2031
375,000,000
2032
375,000,000
2033
375,000,000
2034
375,000,000
2035
375,000,000
2036
450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal year thereafter,
one-eighth of the amount requested in the certificate of the Chairman of
the Metropolitan Pier and Exposition Authority for that fiscal year, less
the amount deposited into the McCormick Place Expansion Project Fund by the
State Treasurer in the respective month under subsection (g) of Section 13
of the Metropolitan Pier and Exposition Authority Act, plus cumulative
deficiencies in the deposits required under this Section for previous
months and years, shall be deposited into the McCormick Place Expansion
Project Fund, until the full amount requested for the fiscal year, but not
in excess of the amount specified above as "Total Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund and the
McCormick Place Expansion Project Fund pursuant to the preceding paragraphs
or in any amendments
thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue
realized for the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Illinois Tax Increment Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the  Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act.  The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year..............................Total Deposit
2024......................................$200,000,000
2025.....................................$206,000,000
2026.....................................$212,200,000
2027.....................................$218,500,000
2028.....................................$225,100,000
2029.....................................$288,700,000
2030.....................................$298,900,000
2031.....................................$309,300,000
2032.....................................$320,100,000
2033.....................................$331,200,000
2034.....................................$341,200,000
2035.....................................$351,400,000
2036.....................................$361,900,000
2037.....................................$372,800,000
2038.....................................$384,000,000
2039.....................................$395,500,000
2040.....................................$407,400,000
2041.....................................$419,600,000
2042.....................................$432,200,000
2043.....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized  from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the  Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol.  As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department pursuant to
this Act, 75% thereof shall be paid into the State treasury and 25% shall
be reserved in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a taxpayer,
require the taxpayer to prepare and file with the Department on a form
prescribed by the Department within not less than 60 days after receipt
of the notice an annual information return for the tax year specified in
the notice.  Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last Federal income
tax return.  If the total receipts of the business as reported in the
Federal income tax return do not agree with the gross receipts reported to
the Department of Revenue for the same period, the retailer shall attach
to his annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference.  The retailer's annual
return to the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used from stock
or taken from stock and given away by the retailer during such year,
payroll information of the retailer's business during such year and any
additional reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly or annual
returns filed by such retailer as provided for in this Section.
If the annual information return required by this Section is not
filed when and as required, the taxpayer shall be liable as follows:
(i) Until January 1, 1994, the taxpayer shall be     liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall     be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest ranking
manager shall sign the annual return to certify the accuracy of the
information contained therein.   Any person who willfully signs the
annual return containing false or inaccurate information shall be guilty
of perjury and punished accordingly.  The annual return form prescribed
by the Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an annual
information return do not apply to a retailer who is not required to
file an income tax return with the United States Government.
As soon as possible after the first day of each month, upon certification
of the Department of Revenue, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to the Motor
Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized
under this Act for the second preceding
month.
Beginning April 1, 2000, this transfer is no longer required
and shall not be made.
Net revenue realized for a month shall be the revenue collected by the
State pursuant to this Act, less the amount paid out during that month as
refunds to taxpayers for overpayment of liability.
For greater simplicity of administration, manufacturers, importers
and wholesalers whose products are sold at retail in Illinois by
numerous retailers, and who wish to do so, may assume the responsibility
for accounting and paying to the Department all tax accruing under this
Act with respect to such sales, if the retailers who are affected do not
make written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail selling space for
concessionaires or other types of sellers at the Illinois State Fair, DuQuoin
State Fair, county fairs, local fairs, art shows, flea markets and similar
exhibitions or events, including any transient merchant as defined by Section 2
of the Transient Merchant Act of 1987, is required to file a report with the
Department providing the name of the merchant's business, the name of the
person or persons engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the merchant, the
dates and location of the event and other reasonable information that the
Department may require.  The report must be filed not later than the 20th day
of the month next following the month during which the event with retail sales
was held.  Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible personal
property at retail as a concessionaire or other type of seller at the
Illinois State Fair, county fairs, art shows, flea markets and similar
exhibitions or events, or any transient merchants, as defined by Section 2
of the Transient Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a daily payment of
the full amount of tax due.  The Department shall impose this
requirement when it finds that there is a significant risk of loss of
revenue to the State at such an exhibition or event.  Such a finding
shall be based on evidence that a substantial number of concessionaires
or other sellers who are not residents of Illinois will be engaging in
the business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of loss of revenue
to the State.  The Department shall notify concessionaires and other sellers
affected by the imposition of this requirement.  In the absence of
notification by the Department, the concessionaires and other sellers
shall file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-363, eff. 7-28-23.)
(35 ILCS 120/4) (from Ch. 120, par. 443)
Sec. 4. 
As soon as practicable after any return is filed, the Department
shall examine such return and shall, if necessary, correct such return
according to its best judgment and information.  If the correction
of a return results in an amount of tax that is understated on the taxpayer's
return due to a mathematical error, the Department shall notify the taxpayer
that the amount of tax in excess of that shown on the return is due and has
been assessed.
The term "mathematical error" means
arithmetic errors or incorrect computations on the return or supporting
schedules.
No such notice of additional tax due shall be issued on and
after each July 1 and January 1 covering gross receipts received during any
month or period of time more than 3 years prior to such July 1 and January 1,
respectively.  Such notice of additional tax due shall not be considered a
notice of tax liability nor shall the taxpayer have any right of protest.
In the event that the return is corrected for any reason other than
a mathematical error, any return so corrected
by the Department shall be prima facie correct and shall be prima facie
evidence of the correctness of the amount of tax due, as shown therein.  In
correcting transaction by transaction reporting returns provided for in
Section 3 of this Act, it shall be permissible for the Department to show
a single corrected return figure for any given period of a calendar month
instead of having to correct each transaction by transaction return form
individually and having to show a corrected return figure for each of such
transaction by transaction return forms.  In making a correction of
transaction by transaction, monthly or quarterly returns covering a period
of 6 months or more, it shall be permissible for the Department to show a
single corrected return figure for any given 6-month period.
Instead of requiring the person filing such return to file an amended
return, the Department may simply notify him of the correction or
corrections it has made.
Proof of such correction by the Department may be made at any hearing
before the Department or the Illinois Independent Tax Tribunal or in any legal proceeding by a reproduced copy or
computer print-out of the Department's record relating thereto in the name
of the Department under the certificate of the Director of Revenue.  If
reproduced copies of the Department's records are offered as proof of such
correction, the Director must certify that those copies are true and exact
copies of records on file with the Department.  If computer print-outs of
the Department's records are offered as proof of such correction, the
Director must certify that those computer print-outs are true and exact
representations of records properly entered into standard electronic
computing equipment, in the regular course of the Department's business, at
or reasonably near the time of the occurrence of the facts recorded, from
trustworthy and reliable information. Such certified reproduced copy or
certified computer print-out shall without further proof, be admitted into
evidence before the Department or in any legal proceeding and shall be
prima facie proof of the correctness of the amount of tax due, as shown therein.
If the tax computed upon the basis of the gross receipts as fixed by the
Department is greater than the amount of tax due under the return or
returns as filed, the Department shall (or if the tax or any part thereof
that is admitted to be due by a return or returns, whether filed on time or
not, is not paid, the Department may) issue the taxpayer a notice of tax
liability for the amount of tax claimed by the Department to be due,
together with a penalty in an amount determined in accordance with
Section 3-3 of the Uniform Penalty and Interest Act. Provided, that if the
incorrectness of any return or returns as determined by the Department is
due to negligence or fraud, said penalty shall be in an amount determined
in accordance with Section 3-5 or Section 3-6 of the Uniform Penalty and
Interest Act, as the case may be. If the notice of tax liability is not
based on a correction of the taxpayer's return or returns, but is based on
the taxpayer's failure to pay all or a part of the tax admitted by his
return or returns (whether filed on time or not) to be due, such notice of
tax liability shall be prima facie correct and shall be prima facie
evidence of the correctness of the amount of tax due, as shown therein.
Proof of such notice of tax liability by the Department may be made at
any hearing before the Department or the Illinois Independent Tax Tribunal or in any legal proceeding by a
reproduced copy of the Department's record relating thereto in the name of
the Department under the certificate of the Director of Revenue.  Such
reproduced copy shall without further proof, be admitted into evidence
before the Department or in any legal proceeding and shall be prima facie
proof of the correctness of the amount of tax due, as shown therein.
If the person filing any return dies or becomes a person under legal
disability at any time before the Department issues its notice of tax
liability, such notice shall be issued to the administrator, executor or
other legal representative, as such, of such person.
Except in case of a fraudulent return, or in the case of an amended return
(where a notice of tax liability may be issued on or after each January
1 and July 1 for an amended return filed not more than 3 years prior to
such January 1 or July 1, respectively),  no notice of tax
liability shall be issued on and after each January 1 and July 1 covering
gross receipts received during any month or period of time more than 3
years prior to such January 1 and July 1, respectively.  If, before the
expiration of the time prescribed in this Section for the issuance of a
notice of tax liability, both the Department and the taxpayer have
consented in writing to its issuance after such time, such notice may be
issued at any time prior to the expiration of the period agreed upon.  The
period so agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period previously agreed upon. The foregoing
limitations upon the issuance of a notice of tax liability shall not apply
to the issuance of a notice of tax liability with respect to any period of
time prior thereto in cases where the Department has, within the period of
limitation then provided, notified the person making the return of a notice
of tax liability even though such return, with which the tax that was shown
by such return to be due was paid when the return was filed, had not been
corrected by the Department in the manner required herein prior to the
issuance of such notice, but in no case shall the amount of any such notice
of tax liability for any period otherwise barred by this Act exceed for
such period the amount shown in the notice of tax liability theretofore issued.
If, when a tax or penalty under this Act becomes due and payable, the
person alleged to be liable therefor is out of the State, the notice of tax
liability may be issued within the times herein limited after his coming
into or return to the State; and if, after the tax or penalty under this
Act becomes due and payable, the person alleged to be liable therefor
departs from and remains out of the State, the time of his or her absence is no
part of the time limited for the issuance of the notice of tax liability;
but the foregoing provisions concerning absence from the State shall not
apply to any case in which, at the time when a tax or penalty becomes due
under this Act, the person allegedly liable therefor is not a resident of
this State.
The time limitation period on the Department's right to issue a notice
of tax liability shall not run during any period of time in which the Order
of any Court has the effect of enjoining or restraining the Department from
issuing the notice of tax liability.
If such person or legal representative shall within 60 days after such
notice of tax liability file a protest to said notice of tax liability with the Department and
request a hearing thereon, the Department shall give notice to such person
or legal representative of the time and place fixed for such hearing and
shall hold a hearing in conformity with the provisions of this Act, and
pursuant thereto shall issue to such person or legal representative a final
assessment for the amount found to be due as a result of such hearing. On or after July 1, 2013, protests concerning matters that are subject to the jurisdiction of the Illinois Independent Tax Tribunal shall be filed with the Illinois Independent Tax Tribunal in accordance with the Illinois Independent Tax Tribunal Act of 2012, and hearings concerning those matters shall be held before the Tribunal in accordance with that Act.  The Tribunal shall give notice to such
person of the time and place fixed for such hearing and shall hold a
hearing.  With respect to protests filed with the Department prior to July 1, 2013 that would otherwise be  subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 at any time on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed.  If made, the election shall be irrevocable.
If a protest to the notice of tax liability and a request for a hearing
thereon is not filed within 60 days after such notice, such notice of tax
liability shall become final without the necessity of a final assessment
being issued and shall be deemed to be a final assessment.
Notwithstanding any other provisions of this Act, any amount paid as tax or in respect of tax paid under this Act, other than amounts paid as quarter-monthly payments, shall be deemed assessed upon the date of receipt of payment.
After the issuance of a final assessment, or a notice of tax liability
which becomes final without the necessity of actually issuing a final
assessment as hereinbefore provided, the Department, at any time before
such assessment is reduced to judgment, may (subject to rules of the
Department) grant a rehearing (or grant departmental review and hold an
original hearing if no previous hearing in the matter has been held) upon
the application of the person aggrieved.  Pursuant to such hearing or
rehearing, the Department shall issue a revised final assessment to such
person or his legal representative for the amount found to be due as a
result of such hearing or rehearing.
(Source: P.A. 103-9, eff. 1-1-24.)
(35 ILCS 120/5) (from Ch. 120, par. 444)
Sec. 5. 
In case any person engaged in the business of selling tangible
personal property at retail fails to file a return when and as herein
required, but thereafter, prior to the Department's issuance of a notice
of tax liability under this Section, files a return and pays the tax, he
shall also pay a penalty in an amount determined in accordance with Section
3-3 of the Uniform Penalty and Interest Act.
In case any person engaged in the business of selling tangible
personal property at retail files the return at the time required by
this Act but fails to pay the tax, or any part thereof, when due, a penalty
in an amount determined in accordance with Section 3-3 of the Uniform
Penalty and Interest Act shall be added thereto.
In case any person engaged in the business of selling tangible
personal property at retail fails to file a return when and as herein
required, but thereafter, prior to the Department's issuance of a notice
of tax liability under this Section, files a return but fails to pay the
entire tax, a penalty in an amount determined in accordance with Section
3-3 of the Uniform Penalty and Interest Act shall be added thereto.
In case any person engaged in the business of selling tangible
personal property at retail fails to file a return, the Department shall
determine the amount of tax due from him according to its best judgment
and information, which amount so fixed by the Department shall be prima
facie correct and shall be prima facie evidence of the correctness of
the amount of tax due, as shown in such determination. In making any
such determination of tax due, it shall be permissible for the
Department to show a figure that represents the tax due for any given
period of 6 months instead of showing the amount of tax due for each
month separately. Proof of such determination by the Department may be
made at any hearing before the Department or in any legal proceeding by
a reproduced copy or computer print-out of the Department's record relating
thereto in the name of the Department under the certificate of the Director
of Revenue. If reproduced copies of the Department's records are offered as
proof of such determination, the Director must certify that those copies
are true and exact copies of records on file with the Department.  If computer
print-outs of the Department's records are offered as proof of such
determination, the Director must certify that those computer print-outs are
true and exact representations of records properly entered into standard
electronic computing equipment, in the regular course of the Department's
business, at or reasonably near the time of the occurrence of the facts
recorded, from trustworthy and reliable information. Such certified
reproduced copy or certified computer print-out shall, without further
proof, be admitted into evidence before the Department or in any legal
proceeding and shall be prima facie proof of the correctness of the amount
of tax due, as shown therein. The Department shall issue the taxpayer a
notice of tax liability for the amount of tax claimed by the Department to
be due, together with a penalty of 30% thereof.
However, where the failure to file any tax return required under this Act
on the date prescribed therefor (including any extensions thereof), is
shown to be unintentional and nonfraudulent and has not occurred in the 2
years immediately preceding the failure to file on the prescribed date or
is due to other reasonable cause the penalties imposed by this Act shall
not apply.
The taxpayer or the taxpayer's legal representative may,
within 60 days after such notice, file a protest to such notice of tax
liability with the Department and request a hearing thereon.  The Department shall give
notice to such person or the legal representative of such person of the
time and place fixed for such hearing, and shall hold a hearing in
conformity with the provisions of this Act, and pursuant thereto shall
issue a final assessment to such person or to the legal representative
of such person for the amount found to be due as a result of such hearing. On and after July 1, 2013, protests concerning matters that are under the jurisdiction of the Illinois Independent Tax Tribunal shall be filed with the Illinois Independent Tax Tribunal in accordance with the Illinois Independent Tax Tribunal Act of 2012, and hearings concerning those matters shall be held before the Tribunal in accordance with that Act.  With respect to protests filed with the Illinois Independent Tax Tribunal, the Tribunal shall give
notice to that person or the legal representative of that person of the
time and place fixed for a hearing, and shall hold a hearing in
conformity with the provisions of this Act and the Illinois Independent Tax Tribunal Act of 2012; and pursuant thereto the Department shall
issue a final assessment to such person or to the legal representative
of such person for the amount found to be due as a result of the hearing.  With respect to protests filed with the Department prior to July 1, 2013 that would otherwise be subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 at any time on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed.  If made, the election shall be irrevocable.
If a protest to the notice of tax liability and a request for a
hearing thereon is not filed within 60 days after such notice, such
notice of tax liability shall become final without the necessity of a
final assessment being issued and shall be deemed to be a final assessment.
After the issuance of a final assessment, or a notice of tax
liability which becomes final without the necessity of actually issuing
a final assessment as hereinbefore provided, the Department, at any time
before such assessment is reduced to judgment, may (subject to rules of
the Department) grant a rehearing (or grant departmental review and hold
an original hearing if no previous hearing in the matter has been held)
upon the application of the person aggrieved. Pursuant to such hearing
or rehearing, the Department shall issue a revised final assessment to
such person or his  legal representative for the amount found to be due
as a result of such hearing or rehearing.
Except in case of failure to file a return, or with the consent of the person
to whom the notice of tax liability is to be issued, no notice of tax liability
shall be issued on and after each July 1 and January 1 covering gross receipts
received during any month or period of time more than 3 years prior to such
July 1 and January 1, respectively, except that if a return is not filed at the
required time, no notice of tax liability may be issued on and after each July 1 and January 1 for such return filed more than 3 years prior to such July 1 and January 1, respectively. The foregoing limitations upon the issuance
of a notice of tax liability shall not apply to the issuance of any such notice
with respect to any period of time prior thereto in cases where the Department
has, within the period of limitation then provided, notified a person of the
amount of tax computed even though the Department had not determined the amount
of tax due from such person in the manner required herein prior to the issuance
of such notice, but in no case shall the amount of any such notice of tax
liability for any period otherwise barred by this Act exceed for such period
the amount shown in the notice theretofore issued.
If, when a tax or penalty under this Act becomes due and payable, the
person alleged to be liable therefor is out of the State, the notice of
tax liability may be issued within the times herein limited after his
or her coming into or return to the State; and if, after the tax or penalty
under this Act becomes due and payable, the person alleged to be liable
therefor departs from and remains out of the State, the time of his
or her absence is no part of the time limited for the issuance of the notice of
tax liability; but the foregoing provisions concerning absence from the
State shall not apply to any case in which, at the time when a tax or
penalty becomes due under this Act, the person allegedly liable therefor
is not a resident of this State.
The time limitation period on the Department's right to issue a
notice of tax liability shall not run during any period of time in which
the order of any court has the effect of enjoining or restraining the
Department from issuing the notice of tax liability.
In case of failure to pay the tax, or any portion thereof, or any
penalty provided for in this Act, or interest, when due, the Department may
bring suit to recover the amount of such tax, or portion thereof, or penalty
or interest; or, if the taxpayer has died or become a person under legal
disability, may file a claim therefor against his estate; provided that no such
suit with respect to any tax, or portion thereof, or penalty, or interest
shall be instituted more than 6 years after the date any proceedings in
court for review thereof have terminated or the time for the taking
thereof has expired without such proceedings being instituted, except
with the consent of the person from whom such tax or penalty or interest
is due; nor, except with such consent, shall such suit be instituted
more than 6 years after the date any return is filed with the Department
in cases where the return constitutes the basis for the suit for unpaid
tax, or portion thereof, or penalty provided for in this Act, or
interest: Provided that the time limitation period on the Department's
right to bring any such suit shall not run during any period of time in
which the order of any court has the effect of enjoining or restraining
the Department from bringing such suit.
After the expiration of the period within which the person assessed
may file an action for judicial review under the Administrative Review Law
or the Illinois Independent Tax Tribunal Act of 2012, as applicable, without such an action being filed, a certified copy of the final
assessment or revised final assessment of the Department may be filed
with the Circuit Court of the county in which the taxpayer has his
principal place of business, or of Sangamon County in those cases in
which the taxpayer does not have his principal place of business in this
State. The certified copy of the final assessment or revised final
assessment shall be accompanied by a certification which recites facts
that are sufficient to show that the Department complied with the
jurisdictional requirements of the Act in arriving at its final
assessment or its revised final assessment and that the taxpayer had his
opportunity for an administrative hearing and for judicial review,
whether he availed himself or herself of either or both of these opportunities
or not. If the court is satisfied that the Department complied with the
jurisdictional requirements of the Act in arriving at its final
assessment or its revised final assessment and that the taxpayer had his
opportunity for an administrative hearing and for judicial review,
whether he availed himself of either or both of these opportunities or
not, the court shall render judgment in favor of the Department and
against the taxpayer for the amount shown to be due by the final
assessment or the revised final assessment, plus any interest which may
be due, and such judgment shall be entered in the judgment docket of the
court. Such judgment shall bear the rate of interest as set by the Uniform
Penalty and Interest Act, but otherwise shall have the same effect as other
judgments. The judgment may be enforced, and all laws applicable to sales
for the enforcement of a judgment shall be applicable to sales made under
such judgments. The Department shall file the certified copy of its
assessment, as herein provided, with the Circuit Court within 6 years after
such assessment becomes final except when the taxpayer consents in writing
to an extension of such filing period, and except that the time limitation
period on the Department's right to file the certified copy of its
assessment with the Circuit Court shall not run during any period of time
in which the order of any court has the effect of enjoining or restraining
the Department from filing such certified copy of its assessment with the
Circuit Court.
If, when the cause of action for a proceeding in court accrues
against a person, he or she is out of the State, the action may be commenced
within the times herein limited, after his or her coming into or return to the
State; and if, after the cause of action accrues, he or she departs from and
remains out of the State, the time of his or her absence is no part of the time
limited for the commencement of the action; but the foregoing provisions
concerning absence from the State shall not apply to any case in which,
at the time the cause of action accrues, the party against whom the
cause of action accrues is not a resident of this State. The time within
which a court action is to be commenced by the Department hereunder
shall not run from the date the taxpayer files a petition in bankruptcy
under the Federal Bankruptcy Act until 30 days after notice of termination
or expiration of the automatic stay imposed by the Federal Bankruptcy Act.
No claim shall be filed against the estate of any deceased person or any
person under legal disability for any tax or penalty or part of either, or
interest, except in the manner prescribed and within the time limited by
the Probate Act of 1975, as amended.
The collection of tax or penalty or interest by any means provided
for herein shall not be a bar to any prosecution under this Act.
In addition to any penalty provided for in this Act, any amount of
tax which is not paid when due shall bear interest at the rate and in the
manner specified in Sections 3-2 and 3-9 of the Uniform Penalty and
Interest Act from the date when such tax becomes past due until such tax is
paid or a judgment therefor is obtained by the Department. If the time for
making or completing an audit of a taxpayer's books and records is extended
with the taxpayer's consent, at the request of and for the convenience of
the Department, beyond the date on which the statute of limitations upon
the issuance of a notice of tax liability by the Department otherwise would
run, no interest shall accrue during the period of such extension or until
a Notice of Tax Liability is issued, whichever occurs first.
In addition to any other remedy provided by this Act, and regardless
of whether the Department is making or intends to make use of such other
remedy, where a corporation or limited liability company registered under
this Act violates the provisions of this Act or of any rule or regulation
promulgated thereunder, the Department may give notice to the Attorney General
of the identity of such a corporation or limited liability company and of the
violations committed by such a corporation or limited liability company, for
such action as is not already provided for by this Act and as the Attorney
General may deem appropriate.
If the Department determines that an amount of tax or penalty or interest
was incorrectly assessed, whether as the result of a mistake of fact or an
error of law, the Department shall waive the amount of tax or penalty or
interest that accrued due to the incorrect assessment.
(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13; 98-584, eff. 8-27-13.)
(35 ILCS 120/5a) (from Ch. 120, par. 444a)
Sec. 5a. 
The Department shall have a lien for the tax herein imposed or any
portion thereof, or for any penalty provided for in this Act, or for any
amount of interest which may be due as provided for in Section 5 of this
Act, upon all the real and personal property of any person to whom a
final assessment or revised final assessment has been issued as provided in
this Act, or whenever a return is filed without payment of the tax or
penalty shown therein to be due, including all such property of such
persons acquired after receipt of such assessment or filing of such return.
The taxpayer is liable for the filing fee imposed by the Department for
filing the lien and the filing fee imposed by the Department to 
release the lien. The filing fees shall be paid to the Department in
addition to payment of the tax, penalty, and interest included in the amount of
the lien.
However, where the lien arises because of the issuance of a final
assessment or revised final assessment by the Department, such lien shall
not attach and the notice hereinafter referred to in this Section shall not
be filed until all proceedings in court for review of such final assessment
or revised final assessment have terminated or the time for the taking
thereof has expired without such proceedings being instituted.
Upon the granting of a rehearing or departmental review pursuant to
Section 4 or Section 5 of this Act after a lien has attached, such lien
shall remain in full force except to the extent to which the final
assessment may be reduced by a revised final assessment following such
rehearing or review.
The lien created by the issuance of a final assessment shall terminate
unless a notice of lien is filed, as provided in Section 5b hereof,
within 3 years from the date all proceedings in court for the review of
such final assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted, or (in the case of a
revised final assessment issued pursuant to a rehearing or departmental
review) within 3 years from the date all proceedings in court for the
review of such revised final assessment have terminated or the time for the
taking thereof has expired without such proceedings being instituted; and
where the lien results from the filing of a return without payment of the
tax or penalty shown therein to be due, the lien shall terminate unless a
notice of lien is filed, as provided in Section 5b hereof, within 3 years
from the date when such return is filed with the Department: Provided that
the time limitation period on the Department's right to file a notice of
lien shall not run (1) during any period of time in which the order of any
court has the effect of enjoining or restraining the Department from filing
such notice of lien, or (2) during the term of a repayment plan that taxpayer has entered into with the Department, as long as taxpayer remains in compliance with the terms of the repayment plan.
If the Department finds that a taxpayer is about to depart from the
State, or to conceal himself or his property, or to do any other act
tending to prejudice or to render wholly or partly ineffectual proceedings
to collect such tax unless such proceedings are brought without delay, or
if the Department finds that the collection of the amount due from any
taxpayer will be jeopardized by delay, the Department shall give the
taxpayer notice of such findings and shall make demand for immediate return
and payment of such tax, whereupon such tax shall become immediately due
and payable. If the taxpayer, within 5 days after such notice (or within
such extension of time as the Department may grant), does not comply with
such notice or show to the Department that the findings in such notice are
erroneous, the Department may file a notice of jeopardy assessment lien in
the State Tax Lien Registry and shall notify the taxpayer of such filing.
Such jeopardy assessment lien shall have the same scope and effect as the
statutory lien hereinbefore provided for in this Section.
If the taxpayer believes that he does not owe some or all of the tax for
which the jeopardy assessment lien against him has been filed, or that no
jeopardy to the revenue in fact exists, he may protest within 20 days after
being notified by the Department of the filing of such jeopardy assessment
lien and request a hearing, whereupon the Department shall hold a hearing
in conformity with the provisions of this Act and, pursuant thereto, shall
notify the taxpayer of its findings as to whether or not such jeopardy
assessment lien will be released. If not, and if the taxpayer is aggrieved
by this decision, he  may file an action for judicial review
of such final
determination of the Department in accordance with Section 12 of this Act
and the Administrative Review Law.
On and after July 1, 2013, protests concerning matters that are subject to the jurisdiction of the Illinois Independent Tax Tribunal shall be filed with the  Tribunal, and hearings on those matters shall be held before the Tribunal in accordance with the Illinois Independent Tax Tribunal Act of 2012.  The Tribunal shall
notify the taxpayer of its findings as to whether or not such jeopardy
assessment lien will be released. If not, and if the taxpayer is aggrieved
by this decision, he  may file an action for judicial review
of such final
determination of the Department in accordance with Section 12 of this Act
and the Illinois Independent Tax Tribunal Act of 2012.
With respect to protests filed with the Department prior to July 1, 2013 that would otherwise be subject to the jurisdiction of the Illinois Independent Tax Tribunal, the taxpayer may elect to be subject to the provisions of the Illinois Independent Tax Tribunal Act of 2012 at any time on or after July 1, 2013, but not later than 30 days after the date on which the protest was filed.  If made, the election shall be irrevocable.
If, pursuant to such hearing (or after an independent determination of
the facts by the Department without a hearing), the Department or the Tribunal determines
that some or all of the tax covered by the jeopardy assessment lien is not
owed by the taxpayer, or that no jeopardy to the revenue exists, or if on
judicial review the final judgment of the court is that the taxpayer does
not owe some or all of the tax covered by the jeopardy assessment lien
against him, or that no jeopardy to the revenue exists, the Department
shall release its jeopardy assessment lien to the extent of such finding of
nonliability for the tax, or to the extent of such finding of no jeopardy
to the revenue.
The Department shall also release its jeopardy assessment lien against
the taxpayer whenever the tax and penalty covered by such lien, plus any
interest which may be due, are paid
and the taxpayer has paid the Department in cash or by guaranteed remittance
an amount representing the filing fee for the lien and the filing fee for the
release of that lien. The Department shall file that release of lien in the State Tax Lien Registry.
Nothing in this Section shall be construed to give the Department a
preference over the rights of any bona fide purchaser, holder of a
security interest, mechanics lienholder, mortgagee, or judgment lien
creditor arising prior to the filing of a regular
notice of lien or a notice of jeopardy assessment lien in the State Tax Lien Registry: Provided, however, that the word "bona fide", as used in this
Section shall not include any mortgage of real or personal property or any
other credit transaction that results in the mortgagee or the holder of the
security acting as trustee for unsecured creditors of the taxpayer
mentioned in the notice of lien who executed such chattel or real property
mortgage or the document evidencing such credit transaction. Such lien
shall be inferior to the lien of general taxes, special assessments and
special taxes heretofore or hereafter levied by any political subdivision
of this State.
In case title to land to be affected by the notice of lien or notice of
jeopardy assessment lien is registered under the provisions of "An Act
concerning land titles", approved May 1, 1897, as amended, such notice
shall also be filed in the State Tax Lien Registry, and the
Department shall not have a preference over the rights of any bona fide
purchaser, mortgagee, judgment creditor or other lien holder arising prior
to the registration of such notice: Provided, however, that the word "bona
fide" shall not include any mortgage of real or personal property or any
other credit transaction that results in the mortgagee or the holder of the
security acting as trustee for unsecured creditors of the taxpayer
mentioned in the notice of lien who executed such chattel or real property
mortgage or the document evidencing such credit transaction.
Such regular lien or jeopardy assessment lien shall not be effective
against any purchaser with respect to any item in a retailer's stock in
trade purchased from the retailer in the usual course of such retailer's
business.
(Source: P.A. 100-22, eff. 1-1-18.)
(35 ILCS 120/5b) (from Ch. 120, par. 444b)
Sec. 5b. State Tax Lien Index.  The Department of Revenue shall maintain a State Tax Lien Index of all tax liens filed in the State Tax Lien Registry as provided for by the State Tax Lien Registration Act.
A notice of lien may be filed after the issuance of a revised final
assessment pursuant to a rehearing or departmental review under Section 4
or Section 5 of this Act.
When the lien obtained pursuant to this Act has been satisfied
and the taxpayer has paid the Department in cash or by guaranteed remittance
an amount representing the filing fee for the lien and the filing fee for the
release of that lien,
the Department shall issue a release
of lien and file that release of lien in the State Tax Lien Registry. The release of lien shall contain in legible letters a
statement as
follows:
FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
BE FILED IN THE STATE TAX LIEN REGISTRY.
When a certificate of complete or partial release of lien issued by the
Department is filed in the State Tax Lien Registry, the Department of Revenue shall permanently attach the certificate of release to the notice
of lien or notice of jeopardy assessment lien and shall enter the
certificate of release and the date in the "State Tax Lien Index" on the
line where the notice of lien or notice of jeopardy assessment lien is
entered.
(Source: P.A. 100-22, eff. 1-1-18.)
(35 ILCS 120/5c) (from Ch. 120, par. 444c)
Sec. 5c. 
Upon payment by the taxpayer to the Department in cash or by guaranteed
remittance of an amount representing the filing fee for the lien and the filing
fee for the release of that lien,
the Department shall issue a certificate of complete or partial
release of the lien
and file that complete or partial release of lien in the State Tax Lien Registry:
(a) to the extent that the fair market value of any     property subject to the lien exceeds the amount of the lien plus the amount of all prior liens upon such property;
(b) to the extent that such lien shall become     unenforceable;
(c) to the extent that the amount of such lien is     paid by the retailer whose property is subject to such lien, together with any interest which may become due under Section 5 of this Act between the date when the notice of lien is filed and the date when the amount of such lien is paid;
(d) to the extent that there is furnished to the     Department on a form to be approved and with a surety or sureties satisfactory to the Department a bond that is conditioned upon the payment of the amount of such lien, together with any interest which may become due under Section 5 of this Act after the notice of lien is filed, but before the amount thereof is fully paid;
(e) to the extent and under the circumstances     specified in Section 5a of this Act in the case of jeopardy assessment liens;
(f) to the extent to which an assessment is reduced     pursuant to a rehearing or departmental review under Section 4 or Section 5 of this Act.
A certificate of complete or partial release of any lien shall be held
conclusive that the lien upon the property covered by the certificate is
extinguished to the extent indicated by such certificate.
(Source: P.A. 100-22, eff. 1-1-18.)
(35 ILCS 120/5d) (from Ch. 120, par. 444d)
Sec. 5d. 
		
		The Department is not required to furnish any bond nor to
make a deposit for or pay any costs or fees of any court or officer thereof
in any judicial proceedings under this Act. Whenever a
certified copy of a judgment or order for attachment, issued from any
court for the enforcement or collection of any liability created by this
Act, is levied by any sheriff or coroner upon any personal property, and
such property is claimed by any person other than the
judgment debtor or the defendant in the attachment, or is
claimed by the judgment debtor or defendant in the attachment as exempt
from enforcement of a judgment thereon by virtue of the
exemption laws of this State, then the person making such claim shall give
notice in writing of his or her claim and of his or her intention to prosecute
the claim, to the sheriff or coroner within 10 days after the making of the
levy. On receiving such notice, the sheriff or coroner shall proceed in
accordance with Part 2 of Article XII of the Code of Civil Procedure, as
amended. The giving of such notice within the 10 day period is a condition precedent
to any judicial action against the sheriff or coroner for wrongfully
levying, seizing or selling the property and any such person who fails to
give such notice within that time is barred from bringing any judicial
action against such sheriff or coroner for injury or damages to or
conversion of the property.
(Source: P.A. 83-1362.)
(35 ILCS 120/5e) (from Ch. 120, par. 444e)
Sec. 5e. 
		
		In addition to any other remedy provided for by the laws of this
State,
and provided that no hearing or proceedings for review provided by this
Act shall be pending, and the time for the taking thereof shall have expired,
the Department may foreclose in the circuit court any
lien on real property for any tax or penalty imposed by this Act to the
same extent and in the same manner as in the enforcement of other liens.
Provided that such proceedings to foreclose shall not be instituted more
than 20 years after the filing of the notice of lien under the provisions of
Section 5b hereof, except that the time limitation period on the
Department's right to commence any such foreclosure proceeding shall not
run during any period of time in which a court order has the
effect of enjoining or restraining the Department from commencing such
foreclosure proceeding.  The process, practice and procedure for such
foreclosure shall be the same as provided in the Civil Practice Law, as
amended.  The provisions of this amendatory Act of 1984 shall apply to any lien
which has not expired before the effective date of this amendatory Act of 1984.
(Source: P.A. 83-1416.)
(35 ILCS 120/5f) (from Ch. 120, par. 444f)
Sec. 5f. 
		
		In addition to any other remedy provided for by the laws of
this State, if the tax imposed by this Act is not paid within the time
required by this Act, the Department, or some person designated by it,
may cause a demand to be made on the taxpayer for the payment of the
tax.  If the tax remains unpaid for 10 days after demand has been made
and no proceedings have been taken for review, the Department may issue
a warrant directed to the sheriff of any county of the State or to any
State officer authorized to serve process, commanding the sheriff or
other officer to levy upon property and rights to property (whether real
or personal, tangible or intangible) of the taxpayer, without exemption,
found within his or her jurisdiction, for the
payment of the amount of unpaid tax with the added penalties, interest
and the cost of executing the warrant.  The term "levy" includes the power
of distraint and seizure by any means.  In any case in which the warrant
to levy has been issued, the sheriff or other person to whom the warrant
was directed may seize and sell such property or rights to property.  Such
warrant shall be returned
to the Department together with the money collected by virtue of the
warrant within the time specified in the warrant, which may not be less
than 20 nor more than 90 days from the date of the warrant. The sheriff
or other officer to whom such warrant is directed shall proceed in the same
manner as is
prescribed by law for proceeding
against property to enforce
judgments which are entered by a circuit court of this State,
and is entitled to the same fees for his or her
services in executing the warrant, to be collected in the same manner.
The Department, or some officer, employee or agent designated by it, may
bid for and purchase any such property sold.
No proceedings for a levy under this Section may be commenced more
than 20 years after the latest date for filing of the notice of lien
under Section 5b of
this Act, without regard to whether such notice was actually filed.
Any officer or employee of the Department designated in writing by the
Director is authorized to serve process under this Section to levy upon
accounts or other intangible assets of a taxpayer held by a financial
organization, as defined by Section 1501 of the Illinois Income Tax Act.
In addition to any other provisions of this Section, any officer or
employee of the Department designated in writing by the Director may levy
upon the following property and rights to property belonging to a taxpayer:
contractual payments, accounts and notes receivable and other evidences of
debt, and interest on bonds, by serving a notice of levy on the person
making such payment.  Levy shall not be made until the Department has
caused a demand to be made on the taxpayer in the manner provided above.
In addition to any other provisions of this Section, any officer or
employee of the Department designated in writing by the Director, may levy
upon the salary, wages, commissions and bonuses of any employee, including officers, employees, or elected officials of
the
United States
as authorized by Section 5520a of the Government Organization and Employees
Act (5 U.S.C. 5520a), but not upon the salary or wages of officers, employees,
or elected officials of any state other than this State, by serving a notice of
levy on the employer.  Levy shall not be made until the Department has
caused a demand to be made on the employee in the manner provided above.
The provisions of Section 12-803 of the Code of Civil Procedure relating
to maximum compensation subject to collection under wage deduction orders
shall apply to all levies made upon compensation under this Section.
To the extent of the amount due on the levy, the employer or other person
making payments to the taxpayer shall hold any non-exempt wages or other
payments due or which subsequently come due.  The levy or balance due
thereon is a lien on wages or other payments due at the time of the service
of the notice of levy, and such lien shall continue as to subsequent
earnings and other payments until the total amount due upon the levy is
paid, except that such lien on subsequent earnings or other payments shall
terminate sooner if the employment relationship is terminated or if the
notice of levy is rescinded or modified.  The employer or other person
making payments to the taxpayer shall file, on or before the return dates
stated in the notice of levy (which shall not be more often than bimonthly)
a written answer under oath to interrogatories, setting forth the amount
due as wages or other payments to the taxpayer for the payment periods
ending immediately prior to the appropriate return date.  A lien obtained
hereunder shall have priority over any subsequent lien obtained pursuant to
Section 12-808 of the Code of Civil Procedure, except that liens for the
support of a spouse or dependent children shall have priority over all
liens obtained hereunder.
In any case where property or rights to property have been seized by an
officer of the Illinois Department of Law Enforcement, or successor agency
thereto, under the authority of
a warrant to levy issued by the Department of Revenue, the Department of
Revenue may take possession of and may sell such property or rights to
property and the Department of Revenue may contract with third persons to
conduct sales of such property or rights to the property. In the conduct of
such sales, the Department of Revenue shall proceed in the same manner as
is prescribed by law for proceeding against property to enforce judgments
which are entered by a circuit court of this State. If, in the Department's
opinion, no offer to purchase at such sale is acceptable and the State's
interest would be better served by retaining the property for sale at a
later date, then the Department may decline to accept any bid and may
retain the property for sale at a later date.
(Source: P.A. 89-399, eff. 8-20-95.)
(35 ILCS 120/5g) (from Ch. 120, par. 444g)
Sec. 5g. 
		
		Except as to any sale had by virtue of a judgment of
foreclosure in accordance with Article XV of the Code of Civil Procedure,
whenever any real estate has been or is sold at a judicial sale
or a sale for the enforcement of a judgment and such real estate is then
subject to a tax lien or
notice of tax lien in favor of the Department, as hereinbefore provided,
and which is junior or inferior to the lien so enforced or foreclosed by
or through that sale, the right to redeem in any manner under or by
virtue of such tax lien or claim for tax lien from such sale or from the
lien so foreclosed or enforced terminates at the end of 12 months from
the date upon which there is filed for record in the office of the
recorder for the county in which the lands so sold are
situated, if such lands are unregistered, or in the office of the
Registrar of Titles for such county, if such lands are registered, a
certified copy of the original or duplicate recorded or registered
certificate of such sale, such certified copy being endorsed by the
Director of Revenue showing service of a copy of such certificate upon
him or her, and upon such service it shall be the duty of such officer to make
such endorsement.   Service may be by United States
registered or certified mail.
(Source: P.A. 84-1462.)
(35 ILCS 120/5i) (from Ch. 120, par. 444i)
Sec. 5i. 
		
		Any person who incurs tax liability under this Act, and who
removes from this State or conceals his whereabouts, shall be deemed
thereby to appoint the Secretary of State of Illinois his agent for service
of process or notice in any judicial or administrative proceeding under
this Act. Such process or notice shall be served by the Department on the
Secretary of State by leaving, at the office of the Secretary of State at
least 15 days before the return day of such process or notice, a true and
certified copy thereof, and by sending to the taxpayer by registered or
certified mail, postage prepaid, a like and true certified copy, with an
endorsement thereon of the service upon said Secretary of State, addressed
to such taxpayer at his last known address.
Service of process or notice in the manner provided for in this Section,
under the circumstances specified in this Section, shall be of the same
force and validity as if served upon the taxpayer personally within this
State. Proof of such service upon the taxpayer in this State through the
Secretary of State as his agent and by mailing to the last known address of
the taxpayer may be made in such judicial or administrative proceeding by
the affidavit of the Director of Revenue, or by his duly authorized
representative who made such service, with a copy of the process or notice
that was so served attached to such affidavit.
(Source: Laws 1961, p. 1918.)
(35 ILCS 120/5j) (from Ch. 120, par. 444j)
Sec. 5j. If any taxpayer, outside the usual course of his business, sells or
transfers the major part of any one or more of (A) the stock of goods which
he is engaged in the business of selling, or (B) the furniture or fixtures,
(C) the machinery and equipment, or (D) the real property, of
any business that is subject to the
provisions of this Act, the purchaser or transferee of such asset shall,
no later than 10 business days prior to the sale or transfer, file a
notice of sale or transfer of business assets with the Department disclosing the
name and address of the seller
or transferor, the name and address of the purchaser or transferee, the
date of the sale or transfer, a copy of the sales contract and financing
agreements which shall include a description of the property sold, the
amount of the purchase price or a statement of other consideration for
the sale or transfer, the terms for payment of the purchase price, and
such other information as the Department
may reasonably require. If the purchaser or transferee fails to file the
above described notice of sale with the Department within the prescribed
time, the purchaser or transferee shall be personally liable for the amount
owed hereunder by the seller or transferor to the Department up to the
amount of the reasonable value of the property acquired by the purchaser or
transferee. The seller or transferor shall pay the Department
the amount of tax, penalty and interest (if any) due from him under this
Act up to the date of the payment of tax. The seller or
transferor, or the purchaser
or transferee, at least 10 business days before the date of the sale or transfer,
may notify the Department of the intended sale or transfer and request the
Department to audit the books and records of the seller or transferor, or
to do whatever else may be necessary to determine how much the seller or
transferor owes to the Department hereunder up to the date of the sale or
transfer. The Department shall take such steps as may be appropriate to
comply with such request.
Any order issued by the Department pursuant to this Section to withhold
from the purchase price shall be issued within 10 business days after the Department
receives notification of a sale as provided in this Section.
The purchaser or transferee shall withhold such portion of
the purchase price
as may be directed by the Department, but not to exceed a
minimum amount varying by type of business, as determined by the Department
pursuant to regulations, plus twice the outstanding unpaid liabilities and
twice the average liability of preceding filings times the number of
unfiled returns,
to cover the amount of all tax, penalty and interest due and unpaid by the
seller or transferor under this Act or, if the payment of money or property
is not involved, shall withhold the performance of the condition that
constitutes the consideration for the sale or transfer.  Within 60
business days after issuance of the initial order to
withhold, the Department shall provide written notice to the purchaser or
transferee of the actual amount of all taxes, penalties and interest then
due and whether or not additional amounts may become due as a result of
unfiled returns, pending assessments and audits not completed.  The
purchaser or transferee shall continue to withhold the amount directed to
be withheld by the initial order or such lesser amount as is specified by
the final withholding order or to withhold the performance of the condition
which constitutes the consideration for the sale or transfer
 until the
purchaser or transferee receives from the Department a certificate showing
that such tax,
penalty and interest have been paid or a certificate from the Department
showing that no tax, penalty or interest is due from the seller or
transferor under this Act.
The purchaser or transferee is relieved of any duty to continue to withhold from the
purchase price and of any liability for tax, penalty or interest due
hereunder from the seller or transferor if the Department fails to notify
the purchaser or transferee in the manner provided herein of the amount
to be withheld within 10 business days after the sale
or transfer has been reported to the Department or within 60 business days after
issuance of the initial order to withhold, as the case may be.
The Department shall have the right to determine amounts claimed on an
estimated basis to allow for non-filed periods, pending assessments and
audits not completed, however the purchaser or transferee shall be
personally liable only for the actual amount due when determined.
If the seller or transferor fails to pay the tax, penalty and interest
(if any) due from him hereunder and the Department makes timely claim
therefor against the purchaser or transferee as hereinabove provided, then
the purchaser or transferee shall pay the amount so withheld from the
purchase price to the Department. If the purchaser or transferee fails to
comply with the requirements of this Section, the purchaser or transferee
shall be personally liable to the Department for the amount owed hereunder
by the seller or transferor to the Department up to the amount of the
reasonable value of the property acquired by the purchaser or transferee.
Any person who shall acquire any property or rights thereto which, at
the time of such acquisition, is subject to a valid lien in favor of the
Department shall be personally liable to the Department for a sum equal to
the amount of taxes secured by such lien but not to exceed the reasonable
value of such property acquired by him.
(Source: P.A. 100-1171, eff. 1-4-19.)
(35 ILCS 120/5k) (from Ch. 120, par. 444k)
Sec. 5k. Building materials exemption; enterprise zone.
(a) Each retailer who makes a qualified sale of building
materials
to be incorporated into real estate in an enterprise zone
established by a county or municipality under the Illinois Enterprise Zone
Act
by remodeling,
rehabilitation or new construction, may deduct receipts from such sales
when calculating the tax imposed by this Act.
For purposes of this Section, before July  1, 2013, "qualified sale" means a sale of building
materials that will be incorporated into real estate as part of a building
project for which a Certificate of Eligibility for Sales Tax Exemption has been
issued by the administrator of the enterprise zone in which the building
project is located, and on and after July  1, 2013, "qualified sale" means a sale of building materials that will be incorporated into real estate as part of a building project for which an Enterprise Zone Building Materials Exemption Certificate has been issued to the purchaser by the Department. A construction contractor or other entity shall not make tax-free purchases unless it has an active Exemption Certificate issued by the Department at the time of the purchase.
(b) Before July  1, 2013, to document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the Certificate of
Eligibility for Sales Tax Exemption issued by the administrator of the
enterprise zone into which the building materials will be incorporated. On and after July  1, 2013, to document the exemption allowed under this Section, the retailer must obtain from the purchaser the certification required under subsection (c), which must contain the Enterprise Zone Building Materials Exemption Certificate number issued to the purchaser by the Department.
Upon request from the enterprise zone administrator, the Department shall issue an Enterprise Zone Building Materials Exemption Certificate for each construction contractor or other entity identified by the enterprise zone administrator.  The Department shall make the Exemption Certificates available directly to each enterprise zone administrator, construction contractor, or other entity.  The request for Enterprise Zone Building Materials Exemption Certificates from the enterprise zone administrator to the Department must include the following information:
(1) the name and address of the construction     contractor or other entity;
(2) the name and number of the enterprise zone;
(3) the name and location or address of the building     project in the enterprise zone;
(4) the estimated amount of the exemption for each     construction contractor or other entity for which a request for Exemption Certificate is made, based on a stated estimated average tax rate and the percentage of the contract that consists of materials;
(5) the period of time over which supplies for the     project are expected to be purchased; and
(6) other reasonable information as the Department     may require, including, but not limited to FEIN numbers, to determine if the contractor or other entity, or any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity,  is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The Department shall issue the Enterprise Zone Building Materials Exemption Certificates within 3 business days after receipt of request from the zone administrator.  This requirement does not apply in circumstances where the Department, for reasonable cause, is unable to issue the Exemption Certificate within 3 business days.  The Department may refuse to issue an Exemption Certificate if the owner, any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.  The Enterprise Zone Building Materials Exemption Certificate shall contain language stating that if the construction contractor or other entity who is issued the Exemption Certificate makes a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section or allows another person to make a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that is not eligible for the exemption.
The Department, in its discretion, may require that the request for Enterprise Zone Building Materials Exemption Certificates be submitted electronically.  The Department may, in its discretion, issue the Exemption Certificates electronically.  The Enterprise Zone Building Materials Exemption Certificate number shall be designed in such a way that the Department can identify from the unique number on the Exemption Certificate issued to a given construction contractor or other entity, the name of the Enterprise Zone, the project for which the Exemption Certificate is issued, and the construction contractor or other entity to whom the Exemption Certificate is issued.  The Exemption Certificate shall contain an expiration date, which shall be no more than 2 years after the date of issuance.  At the request of the zone administrator, the Department may renew an Exemption Certificate.  After the Department issues Exemption Certificates for a given enterprise zone project, the enterprise zone administrator may notify the Department of additional construction contractors or other entities eligible for an Enterprise Zone Building Materials Exemption Certificate.  Upon notification by the enterprise zone administrator and subject to the other provisions of this subsection (b), the Department shall issue an Enterprise Zone Building Materials Exemption Certificate to each additional construction contractor or other entity identified by the enterprise zone administrator. An enterprise zone administrator may notify the Department to rescind an Enterprise Zone Building Materials Exemption Certificate previously issued by the Department but that has not yet expired.  Upon notification by the enterprise zone administrator and subject to the other provisions of this subsection (b), the Department shall issue the rescission of the Enterprise Zone Building Materials Exemption Certificate to the construction contractor or other entity identified by the enterprise zone administrator and provide a copy to the enterprise zone administrator.
If the Department of Revenue determines that a construction contractor or other entity that was issued an Exemption Certificate under this subsection (b) made a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section or allowed another person to make a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that was not eligible for the exemption.
(c) In addition, the retailer must obtain certification from the purchaser that
contains:
(1) a statement that the building materials are being     purchased for incorporation into real estate located in an Illinois enterprise zone;
(2) the location or address of the real estate into     which the building materials will be incorporated;
(3) the name of the enterprise zone in which that     real estate is located;
(4) a description of the building materials being     purchased;
(5) on and after July 1, 2013, the purchaser's     Enterprise Zone Building Materials Exemption Certificate number issued by the Department; and
(6) the purchaser's signature and date of purchase.
(d) The deduction allowed by
this Section for the sale of building materials may be limited, to the
extent authorized by ordinance, adopted after the effective date of this
amendatory Act of 1992, by the municipality or county that created the
enterprise zone
into which the
building materials will be incorporated.
The ordinance, however, may neither require nor prohibit the purchase of
building materials from any retailer or class of retailers in order to qualify
for the exemption allowed under this Section.  The provisions of this Section
are exempt from Section
2-70.
(e) Notwithstanding anything to the contrary in this Section, for enterprise zone projects already in existence and for which construction contracts are already in place on July 1, 2013, the request for Enterprise Zone Building Materials Exemption Certificates from the enterprise zone administrator to the Department for these pre-existing construction contractors and other entities must include the information required under subsection (b), but not including the information listed in items (4) and (5).  For any new construction contract entered into on or after July 1, 2013, however, all of the information in subsection (b) must be provided.
(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
(35 ILCS 120/5l) (from Ch. 120, par. 444l)
Sec. 5l. Building materials exemption; High Impact Business.
(a) Beginning January 1, 1995, each retailer who makes a sale of
building materials that will be incorporated into a High Impact Business
location as designated by the Department of Commerce and Economic Opportunity

under Section 5.5 of the Illinois Enterprise Zone Act may deduct receipts from
such sales when calculating only the 6.25% State rate of tax
imposed by this Act. Beginning on the effective date of this amendatory Act of
1995, a retailer may also deduct receipts from such sales when calculating any
applicable local taxes. However, until the effective date of this amendatory
Act of 1995, a retailer may file claims for credit or refund to recover the
amount of any applicable local tax paid on such sales. No retailer who is
eligible for the deduction or credit
under Section 5k of this Act for making a sale of building materials to be
incorporated into real estate in an enterprise zone by rehabilitation,
remodeling or new construction shall be eligible for the deduction or
credit authorized under this Section.
(b) On and after July 1, 2013, in addition to any other requirements to document the exemption allowed under this Section, the retailer must obtain from the purchaser the purchaser's High Impact Business Building Materials Exemption Certificate number issued by the Department. A construction contractor or other entity shall not make tax-free purchases unless it has an active Exemption Certificate issued by the Department at the time of purchase.
Upon request from the designated High Impact Business, the Department shall issue a High Impact Business Building Materials Exemption Certificate for each construction contractor or other entity identified by the designated High Impact Business.  The Department shall make the Exemption Certificates available to each construction contractor or other entity and the designated High Impact Business.  The request for Building Materials Exemption Certificates from the designated High Impact Business to the Department must include the following information:
(1) the name and address of the construction     contractor or other entity;
(2) the name and location or address of the     designated High Impact Business;
(3) the estimated amount of the exemption for each     construction contractor or other entity for which a request for Exemption Certificate is made, based on a stated estimated average tax rate and the percentage of the contract that consists of materials;
(4) the period of time over which supplies for the     project are expected to be purchased; and
(5) other reasonable information as the Department     may require, including but not limited to FEIN numbers, to determine if the contractor or other entity, or any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity,  is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The Department shall issue the High Impact Business Building Materials Exemption Certificates within 3 business days after receipt of request from the designated High Impact Business.  This requirement does not apply in circumstances where the Department, for reasonable cause, is unable to issue the Exemption Certificate within 3 business days.  The Department may refuse to issue an Exemption Certificate if the owner, any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.  The High Impact Business Building Materials Exemption Certificate shall contain language stating that if the construction contractor or other entity who is issued the Exemption Certificate makes a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section or allows another person to make a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that is not eligible for the exemption.
The Department, in its discretion, may require that the request for High Impact Business Building Materials Exemption Certificates be submitted electronically.  The Department may, in its discretion, issue the Exemption Certificates electronically.  The High Impact Business Building Materials Exemption Certificate number shall be designed in such a way that the Department can identify from the unique number on the Exemption Certificate issued to a given construction contractor or other entity, the name of the designated High Impact Business and the construction contractor or other entity to whom the Exemption Certificate is issued.  The Exemption Certificate shall contain an expiration date, which shall be no more than 2 years after the date of issuance.  At the request of the designated High Impact Business, the Department may renew an Exemption Certificate.  After the Department issues Exemption Certificates for a given designated High Impact Business, the designated High Impact Business may notify the Department of additional construction contractors or other entities eligible for a Building Materials Exemption Certificate.  Upon notification by the designated High Impact Business and subject to the other provisions of this subsection (b), the Department shall issue a High Impact Business Building Materials Exemption Certificate to each additional construction contractor or other entity identified by the designated High Impact Business. A designated High Impact Business may notify the Department to rescind a Building Materials Exemption Certificate previously issued by the Department but that has not yet expired.  Upon notification by the designated High Impact Business and subject to the other provisions of this subsection (b), the Department shall issue the rescission of the Building Materials Exemption Certificate to the construction contractor or other entity identified by the designated High Impact Business and provide a copy to the designated High Impact Business.
If the Department of Revenue determines that a construction contractor or other entity that was issued an Exemption Certificate under this subsection (b) made a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section or allowed another person to make a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that was not eligible for the exemption.
(c) Notwithstanding anything to the contrary in this Section, for High Impact Businesses for which projects are already in existence and for which construction contracts are already in place on July 1, 2013, the request for High Impact Business Building Materials Exemption Certificates from the High Impact Business to the Department for these pre-existing construction contractors and other entities must include the information required under subsection (b), but not including the information listed in items (3) and (4).  For any new construction contract entered into on or after July 1, 2013, however, all of the information in subsection (b) must be provided.
(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
(35 ILCS 120/5m)
Sec. 5m. Building materials exemption; REV Illinois projects. Each retailer who makes a sale of building materials that will be incorporated into a REV Illinois Project for which a certificate of exemption has been issued by the Department of Commerce and Economic Opportunity under Section 105 of the Reimagining Energy and Vehicles in Illinois Act may deduct receipts from those sales when calculating any State or local use and occupation taxes. No retailer who is eligible for the deduction or credit under Section 5k of this Act related to enterprise zones or Section 5l of this Act related to High Impact Businesses for a given sale shall be eligible for the deduction or credit authorized under this Section for that same sale.
In addition to any other requirements to document the exemption allowed under this Section, the retailer must obtain the purchaser's REV Illinois Building Materials Exemption certificate number issued by the Department. A construction contractor or other entity shall not make tax-free purchases under this Section unless it has an active REV Illinois Building Materials Exemption Certificate issued by the Department at the time of purchase.
Upon request from the certified manufacturer, the Department shall issue a REV Illinois Building Materials Exemption Certificate for each construction contractor or other entity identified by the certified manufacturer. The Department shall make the REV Illinois Building Materials Exemption Certificates available to each construction contractor or other entity identified by the certified manufacturer and to the certified manufacturer. The request for REV Illinois Building Materials Exemption Certificates under this Section must include the following information:
(1) the name and address of the construction     contractor or other entity;
(2) the name and location or address of the building     project site;
(3) the estimated amount of the exemption for each     construction contractor or other entity for which a request for a REV Illinois Building Materials Exemption Certificate is made, based on a stated estimated average tax rate and the percentage of the contract that consists of materials;
(4) the period of time over which supplies for the     project are expected to be purchased; and
(5) other reasonable information as the Department     may require, including but not limited to FEIN numbers, to determine if the contractor or other entity, or any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity, is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The Department shall issue the REV Illinois Building Materials Exemption Certificates within 3 business days after receipt of the request from the certified manufacturer. This requirement does not apply in circumstances where the Department, for reasonable cause, is unable to issue the Exemption Certificate within 3 business days. The Department may refuse to issue a REV Illinois Building Materials Exemption Certificate if the owner, any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The REV Illinois Building Materials Exemption Certificate shall contain language stating that if the construction contractor or other entity who is issued the Exemption Certificate makes a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section or allows another person to make a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that is not eligible for the exemption.
The Department, in its discretion, may require that the request for REV Illinois Building Materials Exemption Certificates be submitted electronically. The Department may, in its discretion, issue the Exemption Certificates electronically. The REV Illinois Building Materials Exemption Certificate number shall be designed in such a way that the Department can identify from the unique number on the Exemption Certificate issued to a given construction contractor or other entity, the name of the REV Illinois project site and the construction contractor or other entity to whom the Exemption Certificate is issued. The REV Illinois Building Materials Exemption Certificate shall contain an expiration date, which shall be no more than 5 years after the date of issuance. At the request of the certified manufacturer, the Department may renew a REV Illinois Building Materials Exemption Certificate. After the Department issues Exemption Certificates for a given REV Illinois project site, the certified manufacturer may notify the Department of additional construction contractors or other entities that are eligible for a REV Illinois Building Materials Exemption Certificate. Upon receiving such a notification and subject to the other provisions of this Section, the Department shall issue a REV Illinois Building Materials Exemption Certificate to each additional construction contractor or other entity so identified. A certified manufacturer may ask the Department to rescind a REV Illinois Building Materials Exemption Certificate previously issued by the Department to a construction contractor or other entity working at that certified manufacturer's REV Illinois project site if that REV Illinois Building Materials Exemption Certificate has not yet expired. Upon receiving such a request and subject to the other provisions of this Section, the Department shall issue the rescission of the REV Illinois Building Materials Exemption Certificate to the construction contractor or other entity identified by the certified manufacturer and provide a copy of the rescission to the construction contractor or other entity and to the certified manufacturer.
If the Department of Revenue determines that a construction contractor or other entity that was issued an Exemption Certificate under this Section made a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section or allowed another person to make a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that was not eligible for the exemption.
This Section is exempt from the provisions of Section 2-70.
As used in this Section, "certified manufacturer" means a person certified by the Department of Commerce and Economic Opportunity under Section 105 of the Reimagining Energy and Vehicles in Illinois Act.
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
(35 ILCS 120/5n)
Sec. 5n. Building materials exemption; microchip and semiconductor manufacturing.  Each retailer who makes a sale of building materials that will be incorporated into real estate in a qualified facility for which a certificate of exemption has been issued by the Department of Commerce and Economic Opportunity under Section 110-105 of the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, may deduct receipts from such sales when calculating any State or local use and occupation taxes. No retailer who is eligible for the deduction or credit under Section 5k of this Act related to enterprise zones or Section 5l of this Act related to High Impact Businesses for a given sale shall be eligible for the deduction or credit authorized under this Section for that same sale.
In addition to any other requirements to document the exemption allowed under this Section, the retailer must obtain the purchaser's exemption certificate number issued by the Department. A construction contractor or other entity shall not make tax-free purchases unless it has an active exemption certificate issued by the Department at the time of purchase.
Upon request from a person that has been certified by the Department of Commerce and Economic Opportunity under the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, the Department shall issue a MICRO Illinois Building Materials Exemption Certificate for each construction contractor or other entity identified by the person so certified. The Department shall make the MICRO Illinois Building Materials Exemption Certificates available to each construction contractor or other entity as well as the person certified under the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act. The request for MICRO Illinois Building Materials Exemption Certificates must include the following information:
(1) the name and address of the construction     contractor or other entity;
(2) the name and location or address of the building     project site;
(3) the estimated amount of the exemption for each     construction contractor or other entity for which a request for an exemption certificate is made, based on a stated estimated average tax rate and the percentage of the contract that consists of materials;
(4) the period of time over which supplies for the     project are expected to be purchased; and
(5) other reasonable information as the Department     may require, including but not limited to FEIN numbers, to determine if the contractor or other entity, or any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity, is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The Department shall issue the exemption certificate within 3 business days after receipt of request. This requirement does not apply in circumstances where the Department, for reasonable cause, is unable to issue the exemption certificate within 3 business days. The Department may refuse to issue an  exemption certificate under this Section if the owner, any partner, or a corporate officer, and in the case of a limited liability company, any manager or member, of the construction contractor or other entity is or has been the owner, a partner, a corporate officer, and in the case of a limited liability company, a manager or member, of a person that is in default for moneys due to the Department under this Act or any other tax or fee Act administered by the Department.
The MICRO Illinois Building Materials Exemption Certificate shall contain language stating that, if the construction contractor or other entity who is issued the exemption certificate makes a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section or allows another person to make a tax-exempt purchase, as described in this Section, that is not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that is not eligible for the exemption.
The Department, in its discretion, may require that the request for a MICRO Illinois Exemption Certificate be submitted electronically. The Department may, in its discretion, issue the exemption certificates electronically. The MICRO Illinois Building Materials Exemption Certificate number shall be designed in such a way that the Department can identify from the unique number on the exemption certificate issued to a given construction contractor or other entity, the name of the entity to whom the exemption certificate is issued. The MICRO Illinois Building Materials Exemption Certificate shall contain an expiration date, which shall be no more than 5 years after the date of issuance. At the request of the entity to whom the exemption certificate is issued, the Department may renew an exemption certificate issued under this Section. After the Department issues exemption certificates under this Section, the certified entity may notify the Department of additional construction contractors or other entities eligible for an exemption certificate under this Section. Upon such a notification and subject to the other provisions of this Section, the Department shall issue an exemption certificate to each additional qualified construction contractor or other entity so identified. A certified entity may notify the Department to rescind an exemption certificate previously issued by the Department that has not yet expired. Upon such a notification and subject to the other provisions of this Section, the Department shall rescind the exemption certificate.
If the Department of Revenue determines that a construction contractor or other entity that was issued an exemption certificate under this Section made a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section or allowed another person to make a tax-exempt purchase, as described in this Section, that was not eligible for exemption under this Section, then, in addition to any tax or other penalty imposed, the construction contractor or other entity is subject to a penalty equal to the tax that would have been paid by the retailer under this Act as well as any applicable local retailers' occupation tax on the purchase that was not eligible for the exemption.
This Section is exempt from the provisions of Section 2-70.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 120/6) (from Ch. 120, par. 445)
Sec. 6. Credit memorandum or refund. If it appears, after claim therefor
filed with the Department, that
an amount of tax or penalty or interest has been paid which was not due under
this Act, whether as the result of a mistake of fact or an error of law,
except as hereinafter provided, then the Department shall issue a credit
memorandum or refund to the person who made the erroneous payment or, if
that person died or became a person under legal disability, to his or her
legal representative, as such.
For purposes of this Section, the tax is deemed to be erroneously paid by
a retailer when the manufacturer of a motor vehicle sold by the retailer
accepts
the return of that automobile and refunds to the purchaser the selling price of
that vehicle as provided in the New Vehicle Buyer Protection Act. When a
motor vehicle is returned for a refund of the purchase price under the New
Vehicle Buyer Protection Act, the Department shall issue a credit memorandum
or a refund for the amount of tax paid by the retailer under this Act
attributable to the initial sale of that vehicle. Claims submitted by the
retailer are subject to the same restrictions and procedures provided for in
this Act.
If it is determined that the Department
should issue a credit memorandum or refund, the Department may first apply
the amount thereof against any tax or penalty or interest due or to become
due under this Act or under the Use Tax Act, the Service Occupation Tax
Act, the Service Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act, from the person who made the
erroneous payment. If no tax or penalty or interest is due and no
proceeding is pending to determine whether such person is indebted to the
Department for tax or penalty or interest, the credit memorandum or refund
shall be issued to the claimant; or (in the case of a credit memorandum)
the credit memorandum may be assigned and set over by the lawful holder
thereof, subject to reasonable rules of the Department, to any other person
who is subject to this Act, the Use Tax Act, the Service Occupation Tax Act,
the Service Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act,
and the amount thereof applied by the Department against any tax or
penalty or interest due or to become due under this Act or under the Use
Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act,
any local occupation or use tax administered by the Department,
Section 4 of the Water Commission Act of
1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass
Transit District Act, or subsections (e), (f) and (g) of Section 4.03 of
the Regional Transportation Authority Act, from such assignee.  However, as
to any claim for credit or refund filed with the Department on and after
each January 1 and July 1 no amount of tax or penalty or interest
erroneously paid (either in total or partial liquidation of a tax or
penalty or amount of interest under this Act) more than 3 years prior to
such January 1 and July 1, respectively, shall be credited or refunded,
except that if both the Department and the taxpayer have agreed to an
extension of time to issue a notice of tax liability as
provided in Section 4 of this Act, such claim may be filed at any time
prior to the expiration of the period agreed upon. Notwithstanding any other provision of this Act to the contrary, for any period included in a claim for credit or refund for which the statute of limitations for issuing a notice of tax liability under this Act will expire less than 6 months after the date a taxpayer files the claim for credit or refund, the statute of limitations is automatically extended for 6 months from the date it would have otherwise expired.
No claim may be allowed for any amount paid to the Department, whether
paid voluntarily or involuntarily, if paid in total or partial liquidation
of an assessment which had become final before the claim for credit or
refund to recover the amount so paid is filed with the Department, or if
paid in total or partial liquidation of a judgment or order of
court. No credit may be allowed or refund made for any amount paid by or
collected from any claimant unless it appears (a) that the claimant bore
the burden of such amount and has not been relieved thereof nor reimbursed
therefor and has not shifted such burden directly or indirectly through
inclusion of such amount in the price of the tangible personal property
sold by him or her or in any manner whatsoever; and that no understanding or
agreement, written or oral, exists whereby he or she or his or her
legal representative may be relieved of the burden of such amount, be
reimbursed therefor or may shift the burden thereof; or (b) that he or she
or his or her legal representative has repaid unconditionally such amount
to his or her vendee (1) who bore the burden thereof and has not shifted
such burden directly or indirectly, in any manner whatsoever; (2) who, if
he or she has shifted such burden, has repaid unconditionally such amount
to his own vendee; and (3) who is not entitled to receive any reimbursement
therefor from any other source than from his or her vendor, nor to be
relieved of such burden in any manner whatsoever. No credit may be allowed
or refund made for any amount paid by or collected from any claimant unless
it appears that the claimant has unconditionally repaid, to the purchaser,
any amount collected from the purchaser and retained by the claimant with
respect to the same transaction under the Use Tax Act.
Any credit or refund that is allowed under this Section shall bear interest
at the rate and in the manner specified in the Uniform Penalty and Interest
Act.
In case the Department determines that the claimant is entitled to a
refund, such refund shall be made only from the Aviation Fuel Sales Tax Refund Fund or from such appropriation as may be
available for that purpose, as appropriate. If it appears unlikely that the amount available
 would permit everyone having a claim allowed during the period
covered by such appropriation or from the Aviation Fuel Sales Tax Refund Fund, as appropriate, to elect to receive a cash refund, the
Department, by rule or regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as hardship cases.
If a retailer who has failed to pay retailers' occupation tax on gross
receipts from retail sales is required by the Department to pay such tax,
such retailer, without filing any formal claim with the Department, shall
be allowed to take credit against such retailers' occupation tax liability
to the extent, if any, to which such retailer has paid an amount equivalent
to retailers' occupation tax or has paid use tax in error to his or her vendor
or vendors of the same tangible personal property which such retailer bought
for resale and did not first use before selling it, and no penalty or
interest shall be charged to such retailer on the amount of such credit.
However, when such credit is allowed to the retailer by the Department, the
vendor is precluded from refunding any of that tax to the retailer and
filing a claim for credit or refund with respect thereto with the
Department. The provisions of this amendatory Act shall be applied
retroactively, regardless of the date of the transaction.
(Source: P.A. 101-10, eff. 6-5-19; 102-40, eff. 6-25-21.)
(35 ILCS 120/6a) (from Ch. 120, par. 445a)
Sec. 6a. 
		
		Claims for credit or refund shall be prepared and filed upon forms
provided by the Department. Each claim shall state: (1) The name and
principal business address of the claimant; (2) the period covered by the
claim; (3) the total amount of credit or refund claimed, giving in detail
the net amount of taxable receipts reported each month or other return
period used by the claimant as the basis for filing returns in the period
covered by the claim; (4) the total amount of tax paid for each return
period; (5) receipts upon which tax liability is admitted for each return
period; (6) the amount of receipts on which credit or refund is claimed for
each return period; (7) the tax due for each return period as corrected;
(8) the amount of credit or refund claimed for each return period; (9)
reason or reasons why the amount, for which the claim is filed, is alleged
to have been paid in error; (10) a list of the evidence (documentary or
otherwise) which the claimant has available to establish his compliance
with Section 6 as to bearing the burden of the tax for which he seeks
credit or refund; (11) payments or parts thereof (if any) included in the
claim and paid by the claimant under protest; (12) sufficient information
to identify any suit which involves this Act, and to which the claimant is
a party, and (13) such other information as the Department may reasonably
require. Where the claimant is a corporation or limited liability company,
the claim filed on behalf of such corporation or limited liability company
shall be signed by the president, vice-president, secretary or treasurer, by
the properly accredited agent of such corporation, or by a manager, member, or
properly accredited agent of the limited liability company.
A claim for credit or refund shall be considered to have been filed with
the Department on the date upon which it is received by the Department.
Upon receipt of any claim for credit or refund filed under this Act, any
officer or employee of the Department, authorized in writing by the
Director of Revenue to acknowledge receipt of such claims on behalf of the
Department, shall execute on behalf of the Department, and shall deliver or
mail to the claimant or his duly authorized agent, a written receipt,
acknowledging that the claim has been filed with the Department, describing
the claim in sufficient detail to identify it and stating the date upon
which the claim was received by the Department. Such written receipt shall
be prima facie evidence that the Department received the claim described in
such receipt and shall be prima facie evidence of the date when such claim
was received by the Department. In the absence of such a written receipt,
the records of the Department as to when the claim was received by the
Department, or as to whether or not the claim was received at all by the
Department, shall be deemed to be prima facie correct upon these questions
in the event of any dispute between the claimant (or his legal
representative) and the Department concerning these questions.
(Source: P.A. 88-480.)
(35 ILCS 120/6b) (from Ch. 120, par. 445b)
Sec. 6b. 
		
		As soon as practicable after a claim for credit or refund is filed,
the Department shall examine the same and determine the amount of credit or
refund to which the claimant or the taxpayer's legal representative, in the
event that the taxpayer has died or become incompetent, is entitled and shall,
by its Notice of Tentative Determination of Claim, notify the claimant or his
legal representative of such determination, which determination shall be prima
facie correct. Proof of such determination by the Department may be made at any
hearing before the Department or in any legal proceeding by a reproduced copy
of the Department's record relating thereto, in the name of the Department
under the certificate of the Director of Revenue. Such reproduced copy shall,
without further proof, be admitted into evidence before the Department or in
any legal proceeding and shall be prima facie proof of the correctness of the
Department's determination, as shown therein. If such claimant, or the legal
representative of a deceased or incompetent taxpayer, within 60 days after
the Department's Notice of Tentative Determination of Claim, files a
protest thereto and requests a hearing thereon, the Department shall give
notice to such claimant, or the legal representative of a deceased taxpayer,
or a taxpayer who is under legal disability of the time and place fixed for
such hearing, and shall hold a hearing in conformity with the provisions of
this Act, and pursuant thereto shall issue its Final Determination of the
amount, if any, found to be due as a result of such hearing, to such claimant,
or the legal representative of a deceased taxpayer, or a taxpayer who is under
legal disability. The Department's Final Determination may be reviewed by the
proper Circuit Court, in the same manner, within the same time, upon the same
terms and conditions and to the same extent, as provided by Section 12 of this
Act.
In any case in which there has been an erroneous refund of
tax payable under this Act, a notice of tax liability may be issued at any
time within 3 years from the making of that refund, or within 5 years from
the making of that refund if it appears that any part of the refund was
induced by fraud or the misrepresentation of a material fact.  The amount
of any proposed assessment set forth in the notice shall be limited to the
amount of the erroneous refund.
(Source: P.A. 87-876; 87-879; 88-45.)
(35 ILCS 120/6c) (from Ch. 120, par. 445c)
Sec. 6c. 
		
		If a protest to the Department's Notice of Tentative Determination
of
Claim is not filed within 60 days and a request for a hearing
thereon is
not made as provided in Section 6b of this Act, the said Notice shall
thereupon become and operate as a Final Determination; and, if the
Department's Notice of Tentative Determination, upon becoming a Final
Determination, indicates no amount due to the claimant, or, upon issuance
of a credit memorandum or refund for the amount, if any, found by the
Department to be due, the claim in all its aspects shall be closed and no
longer open to protest, hearing, judicial review, or by any other
proceeding or action whatever, either before the Department or in any court
of this State. Claims for credit or refund hereunder must be filed with and
initially determined by the Department, the remedy herein provided being
exclusive; and no court shall have jurisdiction to determine the merits of
any claim except upon review as provided herein.
(Source: P.A. 90-491, eff. 1-1-98.)
(35 ILCS 120/6d)
Sec. 6d. Deduction for uncollectible debt.
(a) A retailer is relieved from liability for any tax that becomes due and payable if the tax is represented by amounts that are found to be worthless or uncollectible, have been charged off as bad debt on the retailer's books and records in accordance with generally accepted accounting principles, and have been claimed as a deduction pursuant to Section 166 of the Internal Revenue Code on the income tax return filed by the retailer. A retailer that has previously paid such a tax may, under rules and regulations adopted by the Department, take as a deduction the amount charged off by the retailer. If these accounts are thereafter, in whole or in part, collected by the retailer, the amount collected shall be included in the first return filed after the collection, and the tax shall be paid with the return.
(b) With respect to the payment of taxes on purchases made through a private-label credit card:
(1) If consumer accounts or receivables are found to     be worthless or uncollectible, the retailer may claim a deduction on a return in an amount equal to, or may obtain a refund of, the tax remitted by the retailer on the unpaid balance due if:
(A) the accounts or receivables have been charged         off as bad debt on the lender's books and records on or after January 1, 2016;
(B) the accounts or receivables have been claimed         as a          deduction pursuant to Section 166 of the Internal Revenue Code on the          federal income tax return filed by the lender; and
(C) a deduction was not previously claimed and a         refund was not previously allowed on that portion of the account or receivable.
(2) If the retailer or the lender subsequently     collects, in whole or in part, the accounts or receivables for which a deduction or refund has been granted under paragraph (1), the retailer must include the taxable percentage of the amount collected in the first return filed after the collection and pay the tax on the portion of that amount for which a deduction or refund was granted.
(3)  For purposes of the deduction or refund     allowable under this Section,     the limitations period for claiming the deduction or refund shall be the same     as the limitations period set forth in Section 6 of this Act for filing a claim for     credit, and shall commence on the date that the account or receivable has     been claimed as a bad debt deduction pursuant to Section 166 of the Internal     Revenue Code on the federal income tax return filed by the     lender, regardless of the date on which the sale of the tangible personal     property actually occurred.
(4) The deduction or refund allowed under this     Section:
(A) does not apply to credit sale transaction         amounts resulting from purchases of titled property;
(B) includes only those credit sale transaction         amounts that represent purchases from the retailer whose name or logo appears on the private-label credit card used to make those purchases;
(C)  may only be          taken by the taxpayer,         or its successors, that filed the return and          remitted tax on the original sale on which the deduction or refund claim is          based; and
(D) includes all credit sale transaction amounts         eligible under paragraph  (B) that are outstanding with respect to the specific private-label credit card account or receivable at the time the account or receivable is charged off, regardless of the date the credit sale transaction actually occurred.
(5) The retailer and lender shall maintain adequate     books, records, or other documentation supporting the charge off of the accounts or receivables for which a deduction was taken or a refund was claimed under this Section.  A retailer claiming a deduction or refund for bad debts from purchases made using a private label credit card shall meet the same standard of documentation as a retailer that claims a deduction or refund for bad debts that are from purchases made not using a private label credit card.  For purposes of computing the deduction or refund, payments on the accounts or receivables shall be prorated against the amounts outstanding on the account.
(c)  For purposes of this Section:
(1) "Retailer" means a person who holds himself or     herself out as being engaged (or who habitually engages) in selling tangible personal property at retail with respect to such sales and includes a retailer's affiliates.
(2) "Lender" means a person, or an affiliate,     assignee, or transferee of that person, who owns or has owned a private-label credit card account or an interest in a private-label credit card receivable that the person:
(A) purchased directly from a retailer who         remitted the tax imposed under this Act;
(B) originated pursuant to that person's contract         with the retailer who remitted the tax imposed under this Act; or
(C) acquired from a third party.
(3) "Private-label credit card" means a charge card     or credit card that carries, refers to, or is branded with the name or logo of a retailer and may only be used to make purchases from that retailer or that retailer's affiliates.
(4) "Affiliate" means an entity affiliated under     Section 1504 of the Internal Revenue Code, or an entity that would be an affiliate under that Section had the entity been a corporation.
(d) This Section is exempt from the provisions of Section 2-70 of this Act, Section 3-90 of the Use Tax Act, Section 3-55 of the Service Use Tax Act, Section 3-55 of the Service Occupation Tax Act, and any other provision of law  that provides that an exemption, credit, or  deduction automatically sunsets after a specified period of time after the effective date of the Public Act creating the exemption, credit, or deduction.
(Source: P.A. 99-217, eff. 7-31-15.)
(35 ILCS 120/7) (from Ch. 120, par. 446)
Sec. 7. 
Every person engaged in the business of selling tangible personal
property at retail in this State shall keep records and books of all sales
of tangible personal property, together with invoices, bills of lading,
sales records, copies of bills of sale, inventories prepared as of December
31 of each year or otherwise annually as has been the custom in the
specific trade and other pertinent papers and documents. Every person who
is engaged in the business of selling tangible personal property at retail
in this State and who, in connection with such business, also engages in
other activities (including, but not limited to, engaging in a service
occupation) shall keep such additional records and books of all such
activities as will accurately reflect the character and scope of such
activities and the amount of receipts realized therefrom.
The Department may adopt rules that establish requirements, including record
forms and formats, for records required to be kept and maintained by taxpayers.
For purposes of this Section, "records" means all data maintained by the
taxpayer, including data on paper, microfilm, microfiche or any type of
machine-sensible data compilation.
All books and records and other papers and documents which are required
by this Act to be kept shall be kept in the English language
and shall, at all times during business hours of the day, be subject to
inspection by the Department or its duly authorized agents and employees.
To support deductions made on the tax return form, or authorized under
this Act, on account of receipts from isolated or occasional sales of
tangible personal property, on account of receipts from sales of tangible
personal property for resale, on account of receipts from sales to
governmental bodies or other exempted types of purchasers, on account of
receipts from sales of tangible personal property in interstate commerce,
and on account of receipts from any other kind of transaction that is not
taxable under this Act, entries in any books, records or other pertinent
papers or documents of the taxpayer in relation thereto shall be in detail
sufficient to show the name and address of the taxpayer's customer in each
such transaction, the character of every such transaction, the date of
every such transaction, the amount of receipts realized from every such
transaction and such other information as may be necessary to establish the
non-taxable character of such transaction under this Act.
Except in the case of a sale to a purchaser who will always resell and
deliver the property to his customers outside Illinois, anyone claiming
that he has made a nontaxable sale for resale in some form as tangible
personal property shall also keep a record of the purchaser's registration
number or resale number with the Department.
It shall be presumed that all sales of tangible personal property are
subject to tax under this Act until the contrary is established, and the
burden of proving that a transaction is not taxable hereunder shall be upon
the person who would be required to remit the tax to the Department if such
transaction is taxable. In the course of any audit or investigation or
hearing by the Department with reference to a given taxpayer, if the
Department finds that the taxpayer lacks documentary evidence needed to
support the taxpayer's claim to exemption from tax hereunder, the
Department is authorized to notify the taxpayer in writing to produce such
evidence, and the taxpayer shall have 60 days subject to the right in the
Department to extend this period either on request for good cause shown or
on its own motion from the date when such notice is sent to the taxpayer by
certified or registered mail (or delivered to the taxpayer if the notice is
served personally) in which to obtain and produce such evidence for the
Department's inspection, failing which the matter shall be closed, and the
transaction shall be conclusively presumed to be taxable hereunder.
Books and records and other papers reflecting gross receipts received
during any period with respect to which the Department is authorized to
issue notices of tax liability as provided by Sections 4 and 5 of this
Act shall be preserved until the expiration of such period unless the
Department, in writing, shall authorize their destruction or disposal prior
to such expiration.
Any person who fails to keep books and records or fails to produce books and records for examination, as required by this Section and the rules adopted by the Department, is liable to pay to the Department, for deposit into the Tax Compliance and Administration Fund, a penalty of $1,000 for the first failure to keep books and records or produce books and records for examination and a penalty of $3,000 for each subsequent failure to keep books and records or produce books and records for examination as required by this Section and the rules adopted by the Department. The penalties imposed under this Section shall not apply if the taxpayer shows that he or she acted with ordinary business care and prudence. The Department may adopt rules to administer the penalties under this Section.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 120/8) (from Ch. 120, par. 447)
Sec. 8. 
For the purpose of administering and enforcing the provisions of
this Act, the Department, or any officer or employee of the Department
designated, in writing, by the Director thereof, may hold investigations
and hearings not otherwise delegated to the Illinois Independent Tax Tribunal concerning any matters covered by this Act and may examine any
books, papers, records or memoranda bearing upon the sales of tangible
personal property or services of any such person, and may require the
attendance of such person or any officer or employee of such person, or of
any person having knowledge of such business, and may take testimony and
require proof for its information. In the conduct of any investigation or
hearing, neither the Department nor any officer or employee thereof shall
be bound by the technical rules of evidence, and no informality in any
proceeding, or in the manner of taking testimony, shall invalidate any
order, decision, rule or regulation made or approved or confirmed by the
Department. The Director of Revenue, or any officer or employee of the
Department authorized by the Director thereof, shall have power to
administer oaths to such persons. The books, papers, records and memoranda
of the Department, or parts thereof, may be proved in any hearing,
investigation, or legal proceeding by a reproduced copy thereof under the
certificate of the Director of Revenue. Such reproduced copy shall, without
further proof, be admitted into evidence before the Department or in any
legal proceeding.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 120/9) (from Ch. 120, par. 448)
Sec. 9. 
No person shall be excused from testifying or from producing any
books, papers, records or memoranda in any investigation or upon any
hearing not otherwise delegated to the Illinois Independent Tax Tribunal, when ordered to do so by the department or any officer or employee
thereof, upon the ground that the testimony or evidence, documentary or
otherwise, may tend to incriminate him or subject him to a criminal
penalty, but no person shall be prosecuted or subjected to any criminal
penalty for, or on account of, any transaction made or thing concerning
which he may testify or produce evidence, documentary or otherwise, before
the department or an officer or employee thereof; provided, that such
immunity shall extend only to a natural person who, in obedience to a
subpoena, gives testimony under oath or produces evidence, documentary or
otherwise, under oath. No person so testifying shall be exempt from
prosecution and punishment for perjury committed in so testifying.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 120/10) (from Ch. 120, par. 449)
Sec. 10. 
		
		The Department or any officer or employee of the Department
designated, in writing, by the Director thereof, shall at its or his or
her own instance, or on the written request of any other party to the proceeding,
issue subpoenas requiring the attendance of and the giving of testimony by
witnesses, and subpoenas duces tecum requiring the production of books,
papers, records or memoranda. All subpoenas and subpoenas duces tecum
issued under the terms of this Act may be served by any person of full age.
The fees of witnesses for attendance and travel shall be the same as the
fees of witnesses before the circuit court of this State; such fees to be
paid when the witness is excused from further attendance. When the witness
is subpoenaed at the instance of the Department or any officer or employee
thereof, such fees shall be paid in the same manner as other expenses of
the Department, and when the witness is subpoenaed at the instance of any
other party to any such proceeding the Department may require that the cost
of service of the subpoena or subpoena duces tecum and the fee of the
witness be borne by the party at whose instance the witness is summoned. In
such case, the Department, in its discretion, may require a deposit to
cover the cost of such service and witness fees. A subpoena or subpoena
duces tecum issued as aforesaid shall be served in the same manner as a
subpoena issued out of a court.
Any circuit court of this State, upon the
application of the Department or any officer or employee thereof, or upon
the application of any other party to the proceeding, may, in its
discretion, compel the attendance of witnesses, the production of books,
papers, records or memoranda and the giving of testimony before the
Department or any officer or employee thereof conducting an investigation
or holding a hearing authorized by this Act, by an attachment for contempt,
or otherwise, in the same manner as production of evidence may be compelled
before the court.
The Department or any officer or employee thereof, or any other party in
an investigation or hearing before the Department, may cause the
depositions of witnesses within the State to be taken in the manner
prescribed by law for like depositions in civil actions in courts of this
State, and to that end compel the attendance of witnesses and the
production of books, papers, records or memoranda.
(Source: P.A. 83-334.)
(35 ILCS 120/11) (from Ch. 120, par. 450)
Sec. 11. All information received by the Department from returns filed
under this Act, or from any investigation conducted under this Act, shall
be confidential, except for official purposes, and any person, including a third party as defined in the Local Government Revenue Recapture Act, who divulges
any such information in any manner, except in accordance with a proper
judicial order or as otherwise provided by law, including the Local Government Revenue Recapture Act, shall be guilty of a Class
B misdemeanor with a fine not to exceed $7,500.
Nothing in this Act prevents the Director of Revenue from publishing or
making available to the public the names and addresses of persons filing
returns under this Act, or reasonable statistics concerning the operation
of the tax by grouping the contents of returns so the information in any
individual return is not disclosed.
Nothing in this Act prevents the Director of Revenue from divulging to
the United States Government or the government of any other state, or any
officer or agency thereof, for exclusively official purposes, information
received by the Department in administering this Act, provided that such
other governmental agency agrees to divulge requested tax information to
the Department.
The Department's furnishing of information derived from a taxpayer's
return or from an investigation conducted under this Act to the surety on a
taxpayer's bond that has been furnished to the Department under this Act,
either to provide notice to such surety of its potential liability under
the bond or, in order to support the Department's demand for payment from
such surety under the bond, is an official purpose within the meaning of
this Section.
The furnishing upon request of information obtained by the Department
from returns filed under this Act or investigations conducted under this
Act to the Illinois Liquor Control Commission for official use is deemed to
be an official purpose within the meaning of this Section.
Notice to a surety of potential liability shall not be given unless the
taxpayer has first been notified, not less than 10 days prior thereto, of
the Department's intent to so notify the surety.
The furnishing upon request of the Auditor General, or his authorized agents,
for official use, of returns filed and information related thereto under
this Act is deemed to be an official purpose within the meaning of this
Section.
Where an appeal or a protest has been filed on behalf of a taxpayer, the
furnishing upon request of the attorney for the taxpayer of returns filed
by the taxpayer and information related thereto under this Act is deemed
to be an official purpose within the meaning of this Section.
The furnishing of financial information to a municipality or county, upon request of the chief executive officer thereof, is an official purpose within the meaning of this Section,
provided the municipality or county agrees in
writing to the requirements of this Section. Information provided to municipalities and counties under this paragraph shall be limited to: (1)  the business name; (2) the business address; (3) the standard classification number assigned to the business; (4) net revenue distributed to the requesting municipality or county that is directly related to the  requesting municipality's or county's local share of the proceeds under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act distributed from the Local Government Tax Fund, and, if applicable, any locally imposed retailers' occupation tax or service occupation tax; and (5) a listing of all businesses within the requesting municipality or county by account identification number and address.  On and after July 1, 2015, the furnishing of financial information to municipalities and counties under this paragraph may be by electronic means. If the Department may furnish financial information to a municipality or county under this paragraph, then the chief executive officer of the municipality or county may, in turn, provide that financial information to a third party pursuant to the Local Government Revenue Recapture Act.  However, the third party shall agree in writing to the requirements of this Section and meet the requirements of the Local Government Revenue Recapture Act.
Information so provided shall be subject to all confidentiality provisions
of this Section.  The written agreement shall provide for reciprocity,
limitations on access, disclosure, and procedures for requesting information. For the purposes of furnishing financial information to a municipality or county under this Section, "chief executive officer" means the mayor of a city, the village board president of a village, the mayor or president of an incorporated town, the county executive of a county that has adopted the county executive form of government, the president of the board of commissioners of Cook County, or the chairperson of the county board or board of county commissioners of any other county.
The Department may make available to the Board of Trustees of any Metro
East Mass Transit District information contained on transaction reporting
returns required to be filed under Section 3 of this Act that report sales made
within the boundary of the taxing authority of that Metro East Mass Transit
District, as provided in Section 5.01 of the Local Mass Transit District Act.
The disclosure shall be made pursuant to a written agreement between the
Department and the Board of Trustees of a Metro East Mass Transit District,
which is an official purpose within the meaning of this Section.  The written
agreement between the Department and the Board of Trustees of a Metro East
Mass Transit District shall provide for reciprocity, limitations on access,
disclosure, and procedures for requesting information.  Information so provided
shall be subject to all confidentiality provisions of this Section.
The Director may make available to any State agency, including the
Illinois Supreme Court, which licenses persons to engage in any occupation,
information that a person licensed by such agency has failed to file
returns under this Act or pay the tax, penalty and interest shown therein,
or has failed to pay any final assessment of tax, penalty or interest due
under this Act.
The Director may make available to any State agency, including the Illinois
Supreme
Court, information regarding whether a bidder, contractor, or an affiliate of a
bidder or
contractor has failed to collect and remit Illinois Use tax on sales into
Illinois, or any tax
under this Act or pay the tax, penalty, and interest shown therein, or has
failed to pay any
final assessment of tax, penalty, or interest due under this Act, for the
limited purpose of
enforcing bidder and contractor certifications. The Director may make available
to units
of local government and school districts that require bidder and contractor
certifications,
as set forth in Sections 50-11 and 50-12 of the Illinois Procurement Code,
information
regarding whether a bidder, contractor, or an affiliate of a bidder or
contractor has failed
to collect and remit Illinois Use tax on sales into Illinois, file returns under
this Act, or
pay the tax, penalty, and interest shown therein, or has failed to pay any final
assessment
of tax, penalty, or interest due under this Act, for the limited purpose of
enforcing bidder
and contractor certifications. For purposes of this Section, the term
"affiliate" means any
entity that (1) directly, indirectly, or constructively controls another
entity,
(2) is directly,
indirectly, or constructively controlled by another entity, or (3) is subject
to
the control of
a common entity. For purposes of this Section, an entity controls another
entity
if it owns,
directly or individually, more than 10% of the voting securities of that
entity.
As used in
this Section, the term "voting security" means a security that (1) confers upon
the holder
the right to vote for the election of members of the board of directors or
similar governing
body of the business or (2) is convertible into, or entitles the holder to
receive upon its
exercise, a security that confers such a right to vote. A general partnership
interest is a
voting security.
The Director may make available to any State agency, including the
Illinois
Supreme Court, units of local government, and school districts, information
regarding
whether a bidder or contractor is an affiliate of a person who is not
collecting
and
remitting Illinois Use taxes for the limited purpose of enforcing bidder and
contractor
certifications.
The Director may also make available to the Secretary of State
information that a limited liability company, which has filed articles of
organization with the Secretary of State, or corporation which has been
issued a certificate of incorporation by the Secretary of State has failed to
file returns under this Act or pay the tax, penalty and interest shown therein,
or has failed to pay any final assessment of tax, penalty or interest due under
this Act.  An assessment is final when all proceedings in court for review of
such assessment have terminated or the time for the taking thereof has expired
without such proceedings being instituted.
The Director shall make available for public inspection in the Department's
principal office and for publication, at cost, administrative decisions issued
on or after January 1, 1995.  These decisions are to be made available in a
manner so that the following taxpayer information is not disclosed:
(1) The names, addresses, and identification numbers     of the taxpayer, related entities, and employees.
(2) At the sole discretion of the Director, trade     secrets or other confidential information identified as such by the taxpayer, no later than 30 days after receipt of an administrative decision, by such means as the Department shall provide by rule.
The Director shall determine the appropriate extent of the deletions allowed
in paragraph (2). In the event the taxpayer does not submit deletions, the
Director shall make only the deletions specified in paragraph (1).
The Director shall make available for public inspection and publication an
administrative decision within 180 days after the issuance of the
administrative decision. The term "administrative decision" has the same
meaning as defined in Section 3-101 of Article III of the Code of Civil
Procedure. Costs collected under this Section shall be paid into the Tax
Compliance and Administration Fund.
Nothing contained in this Act shall prevent the Director from divulging
information to any person pursuant to a request or authorization made by the
taxpayer or by an authorized representative of the taxpayer.
The furnishing of information obtained by the Department from returns filed under Public Act 101-10 to the Department of Transportation for purposes of compliance with Public Act 101-10 regarding aviation fuel is deemed to be an official purpose within the meaning of this Section.
The Director may make information available to the Secretary of State for the purpose of administering Section 5-901 of the Illinois Vehicle Code.
(Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20; 102-558, eff. 8-20-21; 102-941, eff. 7-1-22.)
(35 ILCS 120/11a) (from Ch. 120, par. 450a)
Sec. 11a. 
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and procedures of the
Department of Revenue under this Act, except that (1) paragraph (b) of Section
5-10 of the Illinois Administrative Procedure Act does not apply to final
orders, decisions and opinions of the Department, (2) subparagraph (a)2 of
Section 5-10 of the Illinois Administrative Procedure Act does not apply to
forms established by the Department for use under this Act, and (3) the
provisions of Section 10-45 of the Illinois Administrative Procedure Act
regarding proposals for decision are excluded and not applicable to the
Department under this Act to the extent Section 10-45 applies to hearings not otherwise delegated to the Illinois Independent Tax Tribunal.
(Source: P.A. 97-1129, eff. 8-28-12.)
(35 ILCS 120/12) (from Ch. 120, par. 451)
Sec. 12. 
The Department is authorized to make, promulgate and enforce such
reasonable rules and regulations relating to the administration and
enforcement of the provisions of this Act as may be deemed expedient.
Whenever notice is required by this Act, such notice may be given by
United States registered or certified mail, addressed to the person
concerned at his last known address, and proof of such mailing shall be
sufficient for the purposes of this Act.  Notice of any hearing provided for
by this Act shall be so given not less than 7 days prior to the day fixed
for the hearing. Following the initial contact of a person represented by
an attorney, the
Department shall not contact the person concerned but shall only
contact the attorney representing the person concerned.
All hearings provided for in this Act with respect to or concerning a
taxpayer having his or her principal place of business in this State other
than in Cook County shall be held at the Department's office nearest to the
location of the taxpayer's principal place of business: Provided that if
the taxpayer has his or her principal place of business in Cook County, such
hearing shall be held in Cook County; and provided, further, that if the
taxpayer does not have his or her principal place of business in this
State, such hearing shall be held in Sangamon County.
The Circuit Court of the County wherein the taxpayer has his or her principal
place of business, or of Sangamon County in those cases where the taxpayer
does not have his or her principal place of business in this State, shall have
power to review all final administrative decisions of the Department in
administering the provisions of this Act: Provided that if the
administrative proceeding which is to be reviewed judicially is a claim for
refund proceeding commenced in accordance with Section 6 of this Act and
Section 2a of "An Act in relation to the payment and disposition of moneys
received by officers and employees of the State of Illinois by virtue of
their office or employment", approved June 9, 1911, as amended, the
Circuit Court having jurisdiction of the action for judicial review under
this Section and under the Administrative Review Law, as amended, shall
be the same court that entered the temporary restraining order or preliminary
injunction which is provided for in Section 2a of "An Act in relation
to the payment and disposition of moneys received by officers and employees
of the State of Illinois by virtue of their office or employment", and
which enables such claim proceeding to be processed and disposed of as a
claim for refund proceeding rather than as a claim for credit proceeding.
The provisions of the Administrative Review Law, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of final administrative decisions of the Department
hereunder, except with respect to protests and hearings held before the Illinois Independent Tax Tribunal.  The provisions of the Illinois Independent Tax Tribunal Act of 2012, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for the
judicial review of administrative decisions of the Department that are subject to the jurisdiction of the Illinois Independent Tax Tribunal.  The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
Except with respect to decisions that are subject to the jurisdiction of the Illinois Independent Tax Tribunal, any person filing an action under the Administrative Review Law to review
a final
assessment or revised final assessment issued by the Department under this
Act shall, within 20 days after filing the complaint, file a bond with good
and sufficient surety or sureties residing in this State or licensed to do
business in this State or, instead of the bond, obtain an order from the court
imposing a lien upon
the plaintiff's property as hereinafter provided.
If the
person filing the complaint fails to comply with this bonding requirement
within 20 days after filing the complaint, the Department shall file a motion
to
dismiss and the court shall dismiss the action unless the person filing the
action complies with the bonding requirement set out in this provision within
30 days after the filing of the Department's motion to dismiss.  Upon dismissal of any
complaint for failure to comply with the jurisdictional
prerequisites herein set forth, the court is empowered to and shall enter
judgment against the taxpayer and in favor of the Department in the amount of
the final
assessment or revised final assessment, together with any interest which
may have accrued since the
Department issued the final assessment or revised final assessment, and for
costs, which judgment is enforceable
as other judgments for the payment of money.  The lien
provided for in this Section shall not be applicable to the real property
of a corporate surety duly licensed to do business in this State.  The
amount of such bond shall be fixed and approved by the court, but shall not
be less than the amount of the tax and penalty claimed to be due by the
Department in its final assessment or revised final assessment to the
person filing such bond, plus the amount of interest due from such person
to the Department at the time when the Department issued its final
assessment to such person.  Such bond shall be executed to the Department of
Revenue and shall be conditioned on the taxpayer's payment within 30 days
after termination of the proceedings for judicial review of the amount of
tax and penalty and interest found by the court to be due in such
proceedings for judicial review.  Such bond, when filed and approved, shall,
from such time until 2 years after termination of the proceedings for
judicial review in which the bond is filed, be a lien against the real
estate situated in the county in which the bond is filed, of the person
filing such bond, and of the surety or sureties on such bond, until the
condition of the bond has been complied with or until the bond has been
canceled as hereinafter provided.  If the person filing any such bond fails
to keep the condition thereof, such bond shall thereupon be forfeited, and
the Department may institute an action upon such bond in
its own name for the
entire amount of the bond and costs.  Such action upon the bond shall be in
addition to any other remedy provided for herein.  If the person filing such
bond complies with the condition thereof, or if, in the proceedings for
judicial review in which such bond is filed, the court determines that no
amount of tax or penalty or interest is due, such bond shall be canceled.
If the court finds in a particular case that the plaintiff cannot
procure and furnish a satisfactory surety or sureties for the kind of bond
required herein, the court may relieve the plaintiff of the obligation of
filing such bond, if, upon the timely application for a lien in lieu
thereof and accompanying proof therein submitted, the court is satisfied
that any such lien imposed would operate to secure the assessment in the
manner and to the degree as would a bond. Upon a finding that such lien
applied for would secure the assessment at issue, the court shall enter an
order, in lieu of such bond,
subjecting the plaintiff's real and personal property (including
subsequently acquired property), situated in the county in which such order
is entered, to a lien in favor of the Department.  Such lien shall be for
the amount of the tax and penalty claimed to be due by the Department in
its final assessment or revised final assessment, plus the amount of
interest due from such person to the Department at the time when the
Department issued its final assessment to such person, and shall continue
in full force and effect until the termination of the proceedings for
judicial review, or until the plaintiff pays, to the Department, the tax
and penalty and interest to secure which the lien is given, whichever
happens first.  In the exercise of its discretion, the court may impose a
lien regardless of the ratio of the taxpayer's assets to the final
assessment or revised final assessment plus the amount of the interest and
penalty.  Nothing in this Section shall be construed to give the
Department a preference over the rights of any bona fide purchaser,
mortgagee, judgment creditor or other lien holder arising prior to the
entry of the order creating such lien in favor of the Department: Provided,
however, that the word "bona fide", as used in this Section, shall not
include any mortgage of real or personal property or any other credit
transaction that results in the mortgagee or the holder of the security
acting as trustee for unsecured creditors of the taxpayer mentioned in the
order for lien who executed such chattel or real property mortgage or the
document evidencing such credit transaction.  Such lien shall be inferior to
the lien of general taxes, special assessments and special taxes heretofore
or hereafter levied by any political subdivision of this State.  Such lien
shall not be effective against any purchaser with respect to any item in a
retailer's stock in trade purchased from the retailer in the usual course
of such retailer's business, and such lien shall not be enforced against
the household effects, wearing apparel, or the books, tools or implements
of a trade or profession kept for use by any person.  Such lien shall not be
effective against real property whose title is registered under the
provisions of "An Act concerning land titles", approved May 1, 1897, as
amended, until the provisions of Section 85 of that Act are complied
with.
Service upon the Director of Revenue or the Assistant Director of
Revenue of the Department of Revenue of summons issued in an action to
review a final administrative decision of the Department shall be service
upon the Department.  The Department shall certify the record of its
proceedings if the taxpayer pays to it the sum of 75¢ per page of testimony
taken before the Department and 25¢ per page of all other matters contained
in such record, except that these charges may be waived where the
Department is satisfied that the aggrieved party is a poor person who
cannot afford to pay such charges.  If payment for such record is not made
by the taxpayer within 30 days after notice from the Department or the
Attorney General of the cost thereof, the court in which the proceeding is
pending, on motion of the Department, shall dismiss the complaint and
(where the administrative decision as to which the action for
judicial review
was filed is a final assessment or revised final assessment) shall enter
judgment against the taxpayer and in favor of the Department for the amount
of tax and penalty shown by the Department's final assessment or revised
final assessment to be due, plus interest as provided for in Section 5 of
this Act from the date when the liability upon which such interest
accrued became delinquent until the entry of the judgment
in the action for judicial review
under the Administrative Review Law, and also
for costs.
Whenever any proceeding provided by this Act is begun before the
Department, either by the Department or by a person subject to this Act,
and such person thereafter dies or becomes a person under legal disability
before such proceeding is concluded, the legal representative of the
deceased or person under legal disability shall notify the Department
of such death or legal disability.  Such legal representative,
as such, shall then be substituted
by the Department for such person.  If the legal representative fails to
notify the Department of his or her appointment as such legal
representative, the Department may, upon its own motion, substitute such
legal representative
in the proceeding pending before the Department for the person who died or
became a person under legal disability.
The changes made by this amendatory Act of 1995 apply to all actions
pending on and after the effective date of this amendatory Act of 1995 to
review a final
assessment or revised final assessment issued by the Department.
(Source: P.A. 97-1129, eff. 8-28-12; 98-463, eff. 8-16-13.)
(35 ILCS 120/13) (from Ch. 120, par. 452)
Sec. 13. Criminal penalties.
(a) When the amount due is under $300, any person engaged
in the business of selling tangible personal property at retail in this
State who fails to file a return, or who files a fraudulent return, or
any officer, employee or agent of a corporation, member, employee or
agent of a partnership, or manager, member, agent, or employee of a limited
liability company engaged in the business of selling tangible personal
property at retail in this State who, as such officer, employee, agent,
manager, or member is under a duty to file a return, or any officer, agent or
employee of a corporation, member, agent, or employee of a partnership, or
manager, member, agent, or employee of a limited liability company engaged in
the business of selling tangible personal property at retail in this State who
files or causes to be filed or signs or causes to be signed a fraudulent
return filed on behalf of such corporation or limited liability company, or
any accountant or other agent who knowingly enters false information on the
return of any taxpayer under this Act, is guilty of a Class 4 felony.
Any person who or any officer or director of any corporation, partner or
member of any partnership, or manager or member of a limited liability company
that: (a) violates Section 2a of this Act or (b) fails to keep books and
records, or fails to produce books and records as required by Section 7 or (c)
willfully violates a rule or regulation of the Department for the
administration and enforcement of this Act is guilty of a Class A misdemeanor.
Any person, manager or member of a limited liability company, or officer or
director of any corporation who engages in the business of selling tangible
personal property at retail after the certificate of registration of that
person, corporation, limited liability company, or partnership has been revoked
is guilty of a Class A misdemeanor.  Each day such person, corporation, or
partnership is engaged in business without a certificate of registration or
after the certificate of registration of that person, corporation, or
partnership has been revoked constitutes a separate offense.
Any purchaser who obtains a registration number or resale number from
the Department through misrepresentation, or who represents to a seller
that such purchaser has a registration number or a resale number from the
Department when he knows that he does not, or who uses his registration
number or resale number to make a seller believe that he is buying tangible
personal property for resale when such purchaser in fact knows that this is
not the case is guilty of a Class 4 felony.
Any distributor, supplier or other reseller of motor fuel registered
pursuant to Section 2a or 2c of this Act who fails to collect the prepaid
tax on invoiced gallons of motor fuel sold or who fails to deliver a statement
of tax paid to the purchaser or to the Department as required by Sections
2d and 2e of this Act, respectively, shall be guilty of a Class A misdemeanor
if the amount due is under $300, and a Class 4 felony if the amount due
is $300 or more.
When the amount due is under $300, any person who accepts money
that is due to the Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make the payment to the Department, but who
fails to remit such payment to the Department when due is guilty of a Class 4
felony.
Any seller who collects or attempts to collect an amount (however
designated) which purports to reimburse such seller for retailers'
occupation tax liability measured by receipts which such seller knows are
not subject to retailers' occupation tax, or any seller who knowingly
over-collects or attempts to over-collect an amount purporting to reimburse
such seller for retailers' occupation tax liability in a transaction which
is subject to the tax that is imposed by this Act, shall be guilty of a
Class 4 felony for each such offense.  This paragraph does not apply to
an amount collected by the seller as reimbursement for the seller's
retailers' occupation tax liability on receipts which are subject to tax
under this Act as long as such collection is made in compliance with the
tax collection brackets prescribed by the Department in its Rules and
Regulations.
When the amount due is $300 or more, any person engaged in the business
of selling tangible personal property at retail in this State who fails
to file a return, or who files a fraudulent return, or any officer, employee
or agent of a corporation, member, employee or agent of a partnership, or
manager, member, agent, or employee of a limited liability company engaged in
the business of selling tangible personal property at retail in this State who,
as such officer, employee, agent, manager, or member is under a duty to file a
return and who fails to file such return or any officer, agent, or employee of
a corporation, member, agent or employee of a partnership, or manager, member,
agent, or employee of a limited liability company engaged in the business of
selling tangible personal property at retail in this State who files or causes
to be filed or signs or causes to be signed a fraudulent return filed on behalf
of such corporation or limited liability company, or any accountant or other
agent who knowingly enters false information on the return of any taxpayer
under this Act is guilty of a Class 3 felony.
When the amount due is $300 or more, any person engaged in the business
of selling tangible personal property at retail in this State who accepts
money that is due to the Department under this
Act from a taxpayer for the purpose of acting as the taxpayer's agent to
make payment to the Department but fails to remit such payment to the
Department when due, is guilty of a Class 3 felony.
Any person whose principal place of business is in this State and
who is charged with a violation under this Section shall be
tried in the county where his principal place of business is
located unless he asserts a right to be tried in another venue.
Any taxpayer or agent of a taxpayer who with the intent to defraud
purports to make a payment due to the Department by issuing or delivering a
check or other order upon a real or fictitious depository for the payment
of money, knowing that it will not be paid by the depository, shall be
guilty of a deceptive practice in violation of Section 17-1 of the Criminal
Code of 2012.
(b)  A person commits the offense of sales tax evasion under this Act when he knowingly attempts in any manner to evade or defeat the tax imposed on him or on any other person, or the payment thereof, and he commits an affirmative act in furtherance of the evasion.  For purposes of this Section, an "affirmative act in furtherance of the evasion" means an act designed in whole or in part to (i)  conceal, misrepresent, falsify,  or manipulate any material fact or (ii) tamper with or destroy documents or materials related to a person's tax liability under this Act.  Two or more acts of sales tax evasion may be charged as a single count in any indictment, information, or complaint and the amount of tax deficiency may be aggregated for purposes of determining the amount of tax which is attempted to be or is evaded and the period between the first and last acts may be alleged as the date of the offense.
(1)  When the amount of tax, the assessment or     payment of which is attempted to be or is evaded is less than $500 a person is guilty of a Class 4 felony.
(2)  When the amount of tax, the assessment or     payment of which is attempted to be or is evaded is $500 or more but less than $10,000, a person is guilty of a Class 3 felony.
(3)  When the amount of tax, the assessment or     payment of which is attempted to be or is evaded is $10,000 or more but less than $100,000, a person is guilty of a Class 2 felony.
(4)  When the amount of tax, the assessment or     payment of which is attempted to be or is evaded is $100,000 or more, a person is guilty of a Class 1 felony.
Any person who knowingly sells, purchases, installs, transfers, possesses, uses, or accesses any automated sales suppression device, zapper, or phantom-ware in this State is guilty of a Class 3 felony.
For the purposes of this Section:
"Automated sales suppression device" or "zapper" means a software program that falsifies the electronic records of an electronic cash register or other point-of-sale system, including, but not limited to, transaction data and transaction reports.  The term includes the software program, any device that carries the software program, or an Internet link to the software program.
"Phantom-ware" means a hidden programming option embedded in the operating system of an electronic cash register or hardwired into an electronic cash register that can be used to create a second set of records or that can eliminate or manipulate transaction records in an electronic cash register.
"Electronic cash register" means a device that keeps a register or supporting documents through the use of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.
"Transaction data" includes: items purchased by a customer; the price of each item; a taxability determination for each item; a segregated tax amount for each taxed item; the amount of cash or credit tendered; the net amount returned to the customer in change; the date and time of the purchase; the name, address, and identification number of the vendor; and the receipt or invoice number of the transaction.
"Transaction report" means a report that documents, without limitation, the sales, taxes, or fees collected, media totals, and discount voids at an electronic cash register and that is printed on a cash register tape at the end of a day or shift, or a report that documents every action at an electronic cash register and is stored electronically.
(c) A prosecution for any act in violation of this Section may be commenced
at any time within 5 years of the commission of that act.
(Source: P.A. 97-1074, eff. 1-1-13; 97-1150, eff. 1-25-13; 98-352, eff. 1-1-14.)
(35 ILCS 120/13.5) (from Ch. 120, par. 452 1/2)
Sec. 13.5. 
		(Repealed).
(Source: Repealed by P.A. 87-205.)
(35 ILCS 120/13.7)
Sec. 13.7. Rulemaking.  Rulemaking authority to implement this amendatory Act of the 95th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.
(Source: P.A. 95-1053, eff. 1-1-10.)
(35 ILCS 120/14) (from Ch. 120, par. 453)
Sec. 14. 
		
		This Act shall be known as the "Retailers' Occupation Tax
Act" and the tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois or by any
municipal corporation or political subdivision thereof.
(Source: Laws 1933, p. 924.)