Bill Text: IL SB0009 | 2017-2018 | 100th General Assembly | Engrossed
Bill Title: Creates the Sugar-Sweetened Beverage Tax Act. Imposes a tax on distributors of bottled sugar-sweetened beverages, syrups, or powders at the rate of $0.01 per ounce of bottled sugar-sweetened beverages sold or offered for sale to a retailer for sale in the State to a consumer. Requires those distributors to obtain permits. Provides that 2% of the moneys shall be deposited into the Tax Compliance and Administration Fund for the administrative costs of the Department of Revenue, and 98% of the moneys shall be deposited into the General Revenue Fund. Amends the Illinois Income Tax Act. Makes changes concerning the rate of tax. Extends the research and development credit for tax years ending prior to January 1, 2027. Creates an addition modification in an amount equal to the deduction for qualified domestic production activities allowed under Section 199 of the Internal Revenue Code. Makes changes concerning the definition of "unitary business group". Makes changes concerning estimated taxes. Amends the Film Production Services Tax Credit Act of 2008. Provides that no taxpayer may take a credit awarded under the Act for tax years beginning on or after January 1, 2027. Amends the Business Corporation Act of 1983. Makes changes concerning penalties and reports. Amends the Limited Liability Company Act. Makes changes concerning the fee for filing articles of organization. Effective immediately, but this Act does not take effect at all unless Senate Bills 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 12, and 13 of the 100th General Assembly become law.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2017-07-06 - Public Act . . . . . . . . . 100-0022 [SB0009 Detail]
Download: Illinois-2017-SB0009-Engrossed.html
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1 | AN ACT concerning revenue.
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2 | WHEREAS, the changes made by this Act are made under | ||||||
3 | subsection (a) of Section 3 of Article IX of the Illinois | ||||||
4 | Constitution. If there are future changes made to subsection | ||||||
5 | (a) of Section 3 of Article IX of the Illinois Constitution, | ||||||
6 | then it may result in evaluating the taxes on income imposed by | ||||||
7 | this Act; therefore
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8 | Be it enacted by the People of the State of Illinois,
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9 | represented in the General Assembly:
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10 | ARTICLE 5. BUDGET ECONOMIC STABILIZATION FUND ACT | ||||||
11 | Section 5-1. Short title. This Act may be cited as the | ||||||
12 | Budget Economic Stabilization Fund Act.
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13 | Section 5-5. Legislative intent. | ||||||
14 | The General Assembly finds that, in order to restore | ||||||
15 | Illinois' fiscal health, retaining a share of above-trend State | ||||||
16 | revenues for future needs and for reducing the need for new | ||||||
17 | taxes or increasing any rate of tax or otherwise modifying the | ||||||
18 | tax structure, including the elimination or modification of | ||||||
19 | deductions, exclusions, or exemptions, is a priority.
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20 | Section 5-10. Definitions. As used in this Act: |
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1 | "Above-trend revenues" means general funds revenue | ||||||
2 | collections that exceed 2.4% of the prior fiscal year's general | ||||||
3 | funds revenue collections. | ||||||
4 | "General funds" means the General Revenue Fund, the Common | ||||||
5 | School Fund, the Education Assistance Fund, and the General | ||||||
6 | Revenue Common School Special Account Fund. | ||||||
7 | "General funds revenue collections" means, for each fiscal | ||||||
8 | year, all gross personal and corporate income taxes, other | ||||||
9 | taxes, fees, and other revenues expected to be deposited into | ||||||
10 | the State's general funds and recurring transfers into general | ||||||
11 | funds from the State Lottery and gaming, but does not include | ||||||
12 | other transfers and federal funds. | ||||||
13 | "Unpaid bills" means: pending vouchers approved for | ||||||
14 | payment but not paid as of December 31st for each fiscal year | ||||||
15 | by the Office of the Comptroller; pending transfers required by | ||||||
16 | State statute that have been recorded but have not been paid | ||||||
17 | from the General Revenue Fund, Common School Fund, or Education | ||||||
18 | Assistance Fund; and all vouchers for invoices that have been | ||||||
19 | certified as a proper bill, as defined by the State Prompt | ||||||
20 | Payment Act, by the Departments of Healthcare and Family | ||||||
21 | Services, Central Management Services, Human Services, | ||||||
22 | Revenue, and Aging but not yet approved by the Comptroller as | ||||||
23 | of December 31st of each fiscal year from the General Revenue | ||||||
24 | Fund, Common School Fund, Education Assistance Fund, Health | ||||||
25 | Insurance Fund, Income Tax Refund Fund, and Healthcare Provider | ||||||
26 | Relief Fund.
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1 | Section 5-15. Certification of the backlog of bills. The | ||||||
2 | amount of unpaid bills shall be reported by the Comptroller and | ||||||
3 | the Departments of Healthcare and Family Services, Central | ||||||
4 | Management Services, Human Services, Revenue, and Aging to the | ||||||
5 | Governor's Office of Management and Budget no later than | ||||||
6 | January 10th of each year. By January 15th of each year, the | ||||||
7 | Governor's Office of Management and Budget shall notify the | ||||||
8 | Comptroller, Treasurer, the Speaker and Minority Leader of the | ||||||
9 | House, and the President and Minority Leader of the Senate of | ||||||
10 | the total amount of unpaid bills as of the preceding December | ||||||
11 | 31st.
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12 | Section 5-20. Payment of unpaid bills. If unpaid bills | ||||||
13 | total more than $1,000,000,000, the Governor shall include in | ||||||
14 | his or her budget for the next fiscal year an amount to pay | ||||||
15 | unpaid bills equal to the lesser of (i) 50% of above-trend | ||||||
16 | revenues that the Governor projects to be received by the State | ||||||
17 | in the next fiscal year or (ii) the amount of above-trend | ||||||
18 | revenues needed to reduce the unpaid bills to $1,000,000,000. | ||||||
19 | This amount to pay off unpaid bills shall be included in the | ||||||
20 | Governor's budget as an appropriation to the Bill Backlog | ||||||
21 | Payment Fund from the General Revenue Fund. Nothing in this Act | ||||||
22 | prohibits the Governor from including in his or her budget, or | ||||||
23 | the General Assembly from appropriating, additional moneys for | ||||||
24 | the payment of unpaid bills. If for any reason the |
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1 | appropriations enacted are insufficient to meet the payment of | ||||||
2 | unpaid bills required to be included in the Governor's budget | ||||||
3 | under this Section, then there is hereby appropriated, on a | ||||||
4 | continuing annual basis in each fiscal year, from the General | ||||||
5 | Revenue Fund, the amounts necessary for this payment.
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6 | Section 5-25. Transfers into the Budget Economic | ||||||
7 | Stabilization Fund. | ||||||
8 | (a) If unpaid bills total less than $1,000,000,000 the | ||||||
9 | Governor shall include in his or her budget for the next fiscal | ||||||
10 | year at least 50% of any above-trend revenues that the Governor | ||||||
11 | projects to be received in the next fiscal year for deposit to | ||||||
12 | the Budget Economic Stabilization Fund as an appropriation from | ||||||
13 | the General Revenue Fund. Except as provided in subsection (b) | ||||||
14 | of this Section, if for any reason the appropriations enacted | ||||||
15 | are insufficient to make the deposit required by this Section, | ||||||
16 | then this Section shall constitute a continuing appropriation | ||||||
17 | from the General Revenue Fund of all amounts necessary for this | ||||||
18 | deposit. | ||||||
19 | (b) If the balance of the Budget Economic Stabilization | ||||||
20 | Fund at the beginning of the next fiscal year is projected by | ||||||
21 | the Governor to exceed 5% of the general funds revenue | ||||||
22 | collections estimated for the next fiscal year, transfers into | ||||||
23 | the Budget Economic Stabilization Fund are not required for | ||||||
24 | that fiscal year.
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1 | Section 5-30. Withdrawal from Budget Economic | ||||||
2 | Stabilization Fund. | ||||||
3 | (a) Upon the direction of the Governor at any time within a | ||||||
4 | fiscal year and within the limitations set forth in this | ||||||
5 | Section, the Comptroller and the Treasurer shall transfer the | ||||||
6 | amounts designated by the Governor from the Budget Economic | ||||||
7 | Stabilization Fund to general funds as specified by the | ||||||
8 | Governor. The transfer shall be made as soon as practicable on | ||||||
9 | or after the 30th day after the Governor has provided written | ||||||
10 | notice of his or her direction to transfer to the Clerk of the | ||||||
11 | House of Representatives, the Secretary of the Senate, and the | ||||||
12 | Index Department of the Office of the Secretary of State, with | ||||||
13 | copies of the notice provided to the Comptroller and Treasurer. | ||||||
14 | The notice shall be published on the website of the Governor's | ||||||
15 | Office of Management and Budget. The amount directed to be | ||||||
16 | transferred may not exceed the limits set forth in subsection | ||||||
17 | (c) of this Section. The Governor may direct a transfer from | ||||||
18 | the Budget Economic Stabilization Fund to any of the general | ||||||
19 | funds only if: he or she estimates that general funds revenue | ||||||
20 | collections for the current fiscal year will be less than the | ||||||
21 | general funds revenue collections as estimated at the time of | ||||||
22 | enactment of appropriations for the current fiscal year; the | ||||||
23 | transfer is necessary to provide for the health, safety, and | ||||||
24 | welfare of the people of the State of Illinois; and the funds | ||||||
25 | transferred are to be spent within previously enacted | ||||||
26 | appropriations. |
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1 | (b) In addition to transfers directed by the Governor | ||||||
2 | within a fiscal year, transfers or appropriations from the | ||||||
3 | Budget Economic Stabilization Fund for the current or next | ||||||
4 | fiscal year may be made by vote of the General Assembly if: | ||||||
5 | (1) the General Assembly projects that general funds | ||||||
6 | revenue collections for the current or next fiscal year are | ||||||
7 | less than the general funds revenue collections as | ||||||
8 | estimated at the time of enactment of appropriations for | ||||||
9 | the current fiscal year for the preceding year; | ||||||
10 | (2) the General Assembly finds that general funds | ||||||
11 | revenue collections have remained stagnant or dropped | ||||||
12 | during 2 consecutive fiscal quarters within the preceding | ||||||
13 | 12 months as compared to the corresponding 2 fiscal | ||||||
14 | quarters of the prior fiscal year; or | ||||||
15 | (3) that the State Coincident Index for the State of | ||||||
16 | Illinois has remained stagnant or dropped over 2 | ||||||
17 | consecutive quarters within the preceding 12 months, as | ||||||
18 | published in the Federal Reserve Bank of Philadelphia's | ||||||
19 | publication entitled "State Coincident Indexes" or its | ||||||
20 | successor publication. | ||||||
21 | (c) Transfers or appropriations from the Budget Economic | ||||||
22 | Stabilization Fund may not, during any fiscal year, exceed the | ||||||
23 | lesser of: | ||||||
24 | (1) 50% of the Budget Economic Stabilization Fund's | ||||||
25 | balance; | ||||||
26 | (2) in the case of appropriation enacted by the General |
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1 | Assembly, 50% of the difference between (i) general funds | ||||||
2 | revenue collections, as projected by the Commission on | ||||||
3 | Government Forecasting and Accountability to be received | ||||||
4 | in the next fiscal year, and (ii) a revised general fund | ||||||
5 | revenue collections projection for the current fiscal year | ||||||
6 | presented to the General Assembly by the Commission on | ||||||
7 | Government Forecasting and Accountability; or | ||||||
8 | (3) in the case of transfers to be directed by the | ||||||
9 | Governor within a fiscal year, 50% of the difference | ||||||
10 | between (i) general funds revenue collections, to be | ||||||
11 | received in the next fiscal year as projected by the | ||||||
12 | Governor, and (ii) a revised general fund revenue | ||||||
13 | collections projection for the current fiscal year as | ||||||
14 | projected by the Governor.
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15 | Section 5-35. Fund creation. | ||||||
16 | (a) There is created the Budget Economic Stabilization Fund | ||||||
17 | as a special fund in the State Treasury consisting of moneys | ||||||
18 | appropriated or transferred to that Fund as provided in Section | ||||||
19 | 5-30 of this Act and as otherwise provided by law. All earnings | ||||||
20 | on Budget Economic Stabilization Fund investments shall be | ||||||
21 | deposited into that Fund. | ||||||
22 | (b) There is created the Bill Backlog Payment Fund as a | ||||||
23 | special fund in the State Treasury consisting of moneys | ||||||
24 | appropriated or transferred to that Fund as provided in Section - | ||||||
25 | 25 of this Act and as otherwise provided by law. All earnings |
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1 | on Bill Backlog Payment Fund investments shall be deposited | ||||||
2 | into that Fund.
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3 | ARTICLE 10. VIDEO SERVICE TAX MODERNIZATION | ||||||
4 | Section 10-1. Short title. This Act may be cited as the | ||||||
5 | Video Service Tax Modernization Act.
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6 | Section 10-5. Application. This Act applies to the | ||||||
7 | provision of direct-to-home
satellite service, direct | ||||||
8 | broadcast satellite service, and digital
audio-visual works on | ||||||
9 | or after the effective date of this Act. | ||||||
10 | This Act does not apply to: (1) satellite radio service or
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11 | subscription radio service whereby a digital radio signal
is | ||||||
12 | broadcast without any corresponding or related video
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13 | programming or services; or (2) a satellite television
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14 | transmission of simulcast horse races broadcast from or
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15 | received at locations operated by an organization licensee,
an | ||||||
16 | inter-track wagering licensee, or an inter-track
wagering | ||||||
17 | location licensee licensed under the Illinois
Horse Racing Act | ||||||
18 | of 1975.
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19 | Section 10-10. Definitions. As used in this Act: | ||||||
20 | "Department" means the Department of Revenue. | ||||||
21 | "Digital audio-visual works" means a series of related
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22 | images that, when shown in succession, impart an
impression of |
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1 | motion, together with accompanying sounds, if
any, sold to an | ||||||
2 | end user with rights of less than permanent
use. "Digital | ||||||
3 | audio-visual works" does not include
cable service provided by | ||||||
4 | a cable operator, as those
terms are defined in 47 U.S.C. 522, | ||||||
5 | and does not include
video service provided by a holder, as | ||||||
6 | those terms are
defined in Article 21 of the Public Utilities | ||||||
7 | Act. | ||||||
8 | "Direct broadcast satellite service" means video
services | ||||||
9 | transmitted or broadcast by satellite directly to
the | ||||||
10 | subscriber's premises with the use of or accompanied by
ground | ||||||
11 | receiving or distribution equipment, including, but not
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12 | limited to, infrastructure to provide Internet access used
in | ||||||
13 | the transmission or broadcast of such video services, at
the | ||||||
14 | subscriber's premises, but not in the uplink process to
the | ||||||
15 | satellite, and includes, but is not limited to, the
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16 | retransmission of local broadcast television, the provision
of | ||||||
17 | premium channels, other recurring monthly services,
service | ||||||
18 | and pay-per-view, video-on-demand, and other
event-based | ||||||
19 | services. | ||||||
20 | "Direct-to-home satellite service" has the meaning given | ||||||
21 | to that term in Public Law No. 104-104,
Title VI, Section | ||||||
22 | 602(a), February 8, 1996, 110 Stat. 144
(reprinted at 47 U.S.C. | ||||||
23 | 152). | ||||||
24 | "End user" means any person other than a
person who | ||||||
25 | receives by contract a product transferred
electronically for | ||||||
26 | further commercial broadcast,
rebroadcast, transmission, |
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1 | retransmission, licensing,
relicensing, distribution, | ||||||
2 | redistribution, or
exhibition of the product, in whole or in | ||||||
3 | part, to
another person or persons. | ||||||
4 | "Gross revenue" means all consideration of any kind
or | ||||||
5 | nature received by a provider, or an affiliate of the
provider, | ||||||
6 | in connection with the provision of direct-to-home
satellite | ||||||
7 | service, direct broadcast satellite service,
or digital | ||||||
8 | audio-visual works to subscribers. "Gross revenue" does not | ||||||
9 | include: | ||||||
10 | (1) charges for the rental of equipment related
to the | ||||||
11 | provision of direct-to-home satellite service,
direct | ||||||
12 | broadcast satellite service, or digital audiovisual
works; | ||||||
13 | (2) activation, installation, repair, or
maintenance | ||||||
14 | charges or similar service charges
related to the provision | ||||||
15 | of direct-to-home satellite
service, direct broadcast | ||||||
16 | satellite service, or digital
audio-visual works; | ||||||
17 | (3) service order charges, service termination | ||||||
18 | charges, or any other administrative charges related
to the | ||||||
19 | provision of direct-to-home satellite service,
direct | ||||||
20 | broadcast satellite service, or digital audiovisual
works; | ||||||
21 | (4) revenue not actually received,
regardless of | ||||||
22 | whether it is billed, including, but not
limited to, bad | ||||||
23 | debts; | ||||||
24 | (5) revenue received by an affiliate or other
person in | ||||||
25 | exchange for supplying goods and services
used by a | ||||||
26 | provider; |
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1 | (6) the amount of any refunds, rebates, or
discounts | ||||||
2 | made to subscribers, advertisers, or other persons; | ||||||
3 | (7) revenue from any service that is subject to
tax | ||||||
4 | under the Service Occupation Tax Act, Retailers'
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5 | Occupation Tax Act, Service Use Tax Act, or Use Tax
Act; | ||||||
6 | (8) the tax imposed by this Act or any other tax
of | ||||||
7 | general applicability imposed on a provider or a
purchaser | ||||||
8 | of direct-to-home satellite service, direct
broadcast | ||||||
9 | satellite service, or digital audio-visual
works by a | ||||||
10 | federal, State, or local governmental
entity and required | ||||||
11 | to be collected by a person and
remitted to the taxing | ||||||
12 | entity; | ||||||
13 | (9) late payment fees collected from subscribers; | ||||||
14 | (10) charges, other than those charges
specifically | ||||||
15 | described in this Act, that are
aggregated or bundled with | ||||||
16 | such specifically-described
charges on a subscriber's | ||||||
17 | bill, if the
provider can reasonably identify the charges | ||||||
18 | in its
books and records kept in the regular course of
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19 | business; | ||||||
20 | (11) revenue from advertising services; or | ||||||
21 | (12) charges that may not be taxed pursuant to
the | ||||||
22 | federal Internet Tax Freedom Act. | ||||||
23 | "Permanent" means perpetual or for an
indefinite or | ||||||
24 | unspecified length of time. | ||||||
25 | "Person" means a natural individual, firm, trust,
estate, | ||||||
26 | partnership, association, joint stock company,
joint venture, |
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1 | corporation, or limited liability company, or a
receiver, | ||||||
2 | trustee, guardian, or other representative
appointed by order | ||||||
3 | of any court, and includes the federal and State
governments, | ||||||
4 | including State universities created by
statute, and | ||||||
5 | municipalities, counties, and other political
subdivisions of | ||||||
6 | this State. | ||||||
7 | "Premises" means a residence or place of business of a
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8 | subscriber in this State. | ||||||
9 | "Provider" means a person who transmits, broadcasts,
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10 | sells, or distributes direct-to-home satellite service,
direct | ||||||
11 | broadcast satellite service, or digital audio-visual
works to | ||||||
12 | subscribers in the State. | ||||||
13 | "Subscriber" means a member of the
general public who | ||||||
14 | receives direct-to-home satellite
service, direct broadcast | ||||||
15 | satellite service, or digital
audio-visual works from a | ||||||
16 | provider and does not further
distribute the service in the | ||||||
17 | ordinary course of
business.
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18 | Section 10-15. Imposition of tax. | ||||||
19 | (a) A tax is imposed upon the act or privilege of
providing | ||||||
20 | direct-to-home satellite service, direct
broadcast satellite | ||||||
21 | service, or digital audio-visual works
to a subscriber in this | ||||||
22 | State by any provider
at the rate of 5% of the provider's gross | ||||||
23 | revenues derived
from or attributable to that subscriber. | ||||||
24 | (b) For purposes of the tax imposed by subsection (a),
a | ||||||
25 | subscriber is in this State if the
subscriber's street address |
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1 | representative of
where the subscriber's use or access of the | ||||||
2 | direct-to-home
satellite service, direct broadcast satellite | ||||||
3 | service, or
digital audio visual work primarily occurs, which | ||||||
4 | must be
the street address of the subscriber based on
such | ||||||
5 | other information kept by the provider in the regular
course of | ||||||
6 | its business. | ||||||
7 | (c) The tax imposed by subsection (a) may be passed
through | ||||||
8 | to, and collected from, the provider's subscribers in
Illinois. | ||||||
9 | To the extent allowed under federal or State
law, a provider | ||||||
10 | may identify as a separate line item on
each regular bill | ||||||
11 | issued to a subscriber the
amount of the total bill assessed as | ||||||
12 | a tax under this Act. | ||||||
13 | (d) To prevent actual multi-state taxation upon the act or | ||||||
14 | privilege that is subject to taxation under this Act, any | ||||||
15 | taxpayer, upon proof that that taxpayer has paid a tax in | ||||||
16 | another state on such event, shall be allowed a credit against | ||||||
17 | the tax imposed in this Act to the extent of the amount of such | ||||||
18 | tax properly due and paid in such other state. However, such | ||||||
19 | tax is not imposed on the act or privilege to the extent such | ||||||
20 | act or privilege may not, under the Constitution and statutes | ||||||
21 | of the United States, be made the subject of taxation by the | ||||||
22 | State.
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23 | Section 10-20. Remittances. | ||||||
24 | (a) On or before the twentieth day of each calendar
month, | ||||||
25 | every provider of direct-to-home satellite service,
direct |
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1 | broadcast satellite service, or digital audio-visual
works | ||||||
2 | that provides such service or services to a
subscriber in this | ||||||
3 | State during the preceding
calendar month shall file a return | ||||||
4 | with the Department, in
a form prescribed by the Department, | ||||||
5 | stating: | ||||||
6 | (1) the name of the provider; | ||||||
7 | (2) the address of the provider's principal
place of | ||||||
8 | business; | ||||||
9 | (3) the total amount of gross revenues received by
the | ||||||
10 | provider during the preceding calendar month,
quarter, or | ||||||
11 | year, as the case may be, from the
provision of | ||||||
12 | direct-to-home satellite service, direct
broadcast | ||||||
13 | satellite service, or digital audio-visual
works during | ||||||
14 | that preceding calendar month, quarter,
or year and upon | ||||||
15 | the basis of which the tax is
imposed; | ||||||
16 | (4) the amount of tax due; | ||||||
17 | (5) the signature of the taxpayer; and | ||||||
18 | (6) such other reasonable information as the
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19 | Department may require. | ||||||
20 | (b) If a taxpayer fails to sign a return within 30
days | ||||||
21 | after the proper notice and demand for signature by
the | ||||||
22 | Department is received by the taxpayer, then the return
shall | ||||||
23 | be considered valid and any amount shown to be due on
the | ||||||
24 | return shall be deemed assessed. | ||||||
25 | (c) If the provider is otherwise required to file a
monthly | ||||||
26 | return, and if the provider's average monthly tax
liability to |
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1 | the Department under this Act does not exceed
$200, the | ||||||
2 | Department may authorize the provider's returns
to be filed on | ||||||
3 | a quarter annual basis, with the return for
January, February, | ||||||
4 | and March of a given year being due by
April 20 of that year; | ||||||
5 | with the return for April, May, and
June of a given year being | ||||||
6 | due by July 20 of that year;
with the return for July, August, | ||||||
7 | and September of a given
year being due by October 20 of that | ||||||
8 | year, and with the
return for October, November, and December | ||||||
9 | of a given year
being due by January 20 of the following year. | ||||||
10 | (d) If the provider is otherwise required to file a
monthly | ||||||
11 | or quarterly return, and if the provider's average
monthly tax | ||||||
12 | liability with the Department under this Act
does not exceed | ||||||
13 | $50, the Department may authorize the
provider's returns to be | ||||||
14 | filed on an annual basis, with the
return for a given year | ||||||
15 | being due by January 20 of the
following year. | ||||||
16 | (e) Those quarterly and annual returns shall be
subject to | ||||||
17 | the same requirements as to form and substance
as monthly | ||||||
18 | returns. | ||||||
19 | (f) A taxpayer who has an annual tax liability in the | ||||||
20 | amount
set forth in subsection (b) of Section 2505-210 of the
| ||||||
21 | Department of Revenue Law shall make all payments required
by | ||||||
22 | rules of the Department by electronic funds transfer. | ||||||
23 | Any taxpayer not required to make payments by
electronic | ||||||
24 | funds transfer may make payments by electronic
funds transfer | ||||||
25 | with the permission of the Department. | ||||||
26 | All taxpayers required to make payment by
electronic funds |
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| |||||||
1 | transfer and any taxpayers authorized to
voluntarily make | ||||||
2 | payments by electronic funds transfer
shall make those payments | ||||||
3 | in the manner authorized by the
Department.
| ||||||
4 | Section 10-25. Records. | ||||||
5 | (a) A provider on whom the tax is imposed by this Act
shall | ||||||
6 | maintain the necessary records, and any other
information | ||||||
7 | required by the Department, to determine the
amount of the tax | ||||||
8 | that the provider is required to remit
and any credit that the | ||||||
9 | provider is entitled to claim under
this Act. | ||||||
10 | (b) The records shall be open at all times to
inspection by | ||||||
11 | the Department.
| ||||||
12 | Section 10-30. Rules. The Department is authorized to adopt | ||||||
13 | and
enforce any reasonable rules and to prescribe such forms
| ||||||
14 | relating to the administration and enforcement of this Act
as | ||||||
15 | it may deem appropriate.
| ||||||
16 | Section 10-35. Incorporation of Retailers' Occupation Tax | ||||||
17 | Act and Uniform Penalty and Interest Act. All of the provisions | ||||||
18 | of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, and 5j of the | ||||||
19 | Retailers' Occupation Tax Act, which are not inconsistent with | ||||||
20 | this Act, and the Uniform Penalty and Interest Act, shall | ||||||
21 | apply, as far as practicable, to the subject matter of this Act | ||||||
22 | to the same extent as if such provisions were included herein. | ||||||
23 | References in those incorporated Sections to taxpayers and to |
| |||||||
| |||||||
1 | persons engaged in the business of selling tangible personal | ||||||
2 | property at retail mean providers of direct-to-home satellite | ||||||
3 | service,
direct broadcast satellite service, or digital | ||||||
4 | audio-visual
works when used in this Act.
| ||||||
5 | ARTICLE 15. ENTERTAINMENT TAX FAIRNESS ACT | ||||||
6 | Section 15-1. Short title. This Act may be cited as the | ||||||
7 | Entertainment Tax Fairness Act.
| ||||||
8 | Section 15-5. Application. This Act applies to all | ||||||
9 | subscribers of entertainment in this State for the privilege to | ||||||
10 | witness, view, or otherwise enjoy the entertainment. | ||||||
11 | This Act does not apply to: (1) satellite radio service or
| ||||||
12 | subscription radio service whereby a digital radio signal
is | ||||||
13 | broadcast without any corresponding or related video
| ||||||
14 | programming or services; or (2) a satellite television
| ||||||
15 | transmission of simulcast horse races broadcast from or
| ||||||
16 | received at locations operated by an organization licensee,
an | ||||||
17 | inter-track wagering licensee, or an inter-track
wagering | ||||||
18 | location licensee licensed under the Illinois
Horse Racing Act | ||||||
19 | of 1975.
| ||||||
20 | Section 15-10. Definitions. As used in this Act: | ||||||
21 | "Cable service" has the meaning given to that term in item | ||||||
22 | (6) of 47 U.S.C. 522. |
| |||||||
| |||||||
1 | "Department" means the Department of Revenue. | ||||||
2 | "Digital audio-visual works service" means the | ||||||
3 | transmission of a series of related
images that, when shown in | ||||||
4 | succession, impart an
impression of motion, together with | ||||||
5 | accompanying sounds, if
any, sold to an end user with rights of | ||||||
6 | less than permanent
use. "Digital audio-visual works service" | ||||||
7 | does not include
cable service or
video service. | ||||||
8 | "Direct broadcast satellite service" means video
services | ||||||
9 | transmitted or broadcast by satellite directly to
the | ||||||
10 | subscriber's premises with the use of or accompanied by
ground | ||||||
11 | receiving or distribution equipment, including, but not
| ||||||
12 | limited to, infrastructure to provide Internet access used
in | ||||||
13 | the transmission or broadcast of such video services, at
the | ||||||
14 | subscriber's premises, but not in the uplink process to
the | ||||||
15 | satellite, and includes, but is not limited to, the
| ||||||
16 | retransmission of local broadcast television, the provision
of | ||||||
17 | premium channels, other recurring monthly services,
service | ||||||
18 | and pay-per-view, video-on-demand, and other
event-based | ||||||
19 | services. | ||||||
20 | "Direct-to-home satellite service" has the meaning given | ||||||
21 | to that term in Public Law No. 104-104,
Title VI, Section | ||||||
22 | 602(a), February 8, 1996, 110 Stat. 144
(reprinted at 47 U.S.C. | ||||||
23 | 152). | ||||||
24 | "End user" means any person other than a
person who | ||||||
25 | receives by contract a product transferred
electronically for | ||||||
26 | further commercial broadcast,
rebroadcast, transmission, |
| |||||||
| |||||||
1 | retransmission, licensing,
relicensing, distribution, | ||||||
2 | redistribution, or
exhibition of the product, in whole or in | ||||||
3 | part, to
another person or persons. | ||||||
4 | "Entertainment" means any paid video programming whether | ||||||
5 | transmitted by cable service, direct-to-home satellite | ||||||
6 | service, direct broadcast satellite service, digital | ||||||
7 | audio-visual works service, or video service to a subscriber in | ||||||
8 | this State. | ||||||
9 | "Permanent" means perpetual or for an
indefinite or | ||||||
10 | unspecified length of time. | ||||||
11 | "Provider" means a person who transmits, broadcasts,
| ||||||
12 | sells, or distributes cable service, direct-to-home satellite | ||||||
13 | service,
direct broadcast satellite service, digital | ||||||
14 | audio-visual works service, or video service to subscribers in | ||||||
15 | the State. | ||||||
16 | "Subscriber" means a member of the
general public who | ||||||
17 | receives cable service, direct-to-home satellite
service, | ||||||
18 | direct broadcast satellite service, or digital
audio-visual | ||||||
19 | works service, or video service from a provider and does not | ||||||
20 | further
distribute the service in the ordinary course of
| ||||||
21 | business. | ||||||
22 | "Video service" has the meaning given to that term in the | ||||||
23 | Cable and Video Competition Law of 2007 of the Public Utilities | ||||||
24 | Act.
| ||||||
25 | Section 15-15. Imposition of tax. |
| |||||||
| |||||||
1 | (a) A tax is imposed upon the subscribers of entertainment | ||||||
2 | in this State at the rate of 1% of the charges paid for the | ||||||
3 | privilege to witness, view, or otherwise enjoy the | ||||||
4 | entertainment. | ||||||
5 | (b) For purposes of the tax imposed by subsection (a),
a | ||||||
6 | subscriber is in this State if the
subscriber's street address | ||||||
7 | is representative of
where the subscriber's use or access of | ||||||
8 | the entertainment primarily occurs, which must be
the street | ||||||
9 | address of the subscriber based on
such other information kept | ||||||
10 | by the provider in the regular
course of its business. | ||||||
11 | (c) The provider of the entertainment shall collect and | ||||||
12 | secure from each subscriber the tax imposed by this Act and | ||||||
13 | remit the tax to the Department as set forth in Section 15-20 | ||||||
14 | of this Act.
| ||||||
15 | Section 15-20. Remittances. | ||||||
16 | (a) On or before the twentieth day of each calendar
month, | ||||||
17 | every provider shall file a return with the Department, in
a | ||||||
18 | form prescribed by the Department, stating: | ||||||
19 | (1) the name of the provider; | ||||||
20 | (2) the address of the provider's principal
place of | ||||||
21 | business; | ||||||
22 | (3) the total amount of tax revenues collected by
the | ||||||
23 | provider under this Act during the preceding calendar | ||||||
24 | month,
quarter, or year, as the case may be, during that | ||||||
25 | preceding calendar month, quarter,
or year and upon the |
| |||||||
| |||||||
1 | basis of which the tax is
imposed; | ||||||
2 | (4) the amount of tax due; | ||||||
3 | (5) the signature of the provider; and | ||||||
4 | (6) such other reasonable information as the
| ||||||
5 | Department may require. | ||||||
6 | (b) If a provider fails to sign a return within 30
days | ||||||
7 | after the proper notice and demand for signature by
the | ||||||
8 | Department is received by the provider, then the return
shall | ||||||
9 | be considered valid and any amount shown to be due on
the | ||||||
10 | return shall be deemed assessed. | ||||||
11 | (c) If the provider is otherwise required to file a
monthly | ||||||
12 | return, and if the amount collected by the provider under this | ||||||
13 | Act does not exceed
$200, the Department may authorize the | ||||||
14 | provider's returns
to be filed on a quarter annual basis, with | ||||||
15 | the return for
January, February, and March of a given year | ||||||
16 | being due by
April 20 of that year; with the return for April, | ||||||
17 | May, and
June of a given year being due by July 20 of that year;
| ||||||
18 | with the return for July, August, and September of a given
year | ||||||
19 | being due by October 20 of that year, and with the
return for | ||||||
20 | October, November, and December of a given year
being due by | ||||||
21 | January 20 of the following year. | ||||||
22 | (d) If the provider is otherwise required to file a
monthly | ||||||
23 | or quarterly return, and if the amount collected by the | ||||||
24 | provider under this Act
does not exceed $50, the Department may | ||||||
25 | authorize the
provider's returns to be filed on an annual | ||||||
26 | basis, with the
return for a given year being due by January 20 |
| |||||||
| |||||||
1 | of the
following year. | ||||||
2 | (e) Those quarterly and annual returns shall be
subject to | ||||||
3 | the same requirements as to form and substance
as monthly | ||||||
4 | returns. | ||||||
5 | (f) A provider responsible for collecting and remitting the | ||||||
6 | amount
set forth in subsection (b) of Section 2505-210 of the
| ||||||
7 | Department of Revenue Law shall make all payments required
by | ||||||
8 | rules of the Department by electronic funds transfer. | ||||||
9 | Any provider not required to make payments by
electronic | ||||||
10 | funds transfer may make payments by electronic
funds transfer | ||||||
11 | with the permission of the Department. | ||||||
12 | All providers required to make payment by
electronic funds | ||||||
13 | transfer and any taxpayers authorized to
voluntarily make | ||||||
14 | payments by electronic funds transfer
shall make those payments | ||||||
15 | in the manner authorized by the
Department.
| ||||||
16 | Section 15-25. Records. | ||||||
17 | (a) A provider subject to this Act
shall maintain the | ||||||
18 | necessary records, and any other
information required by the | ||||||
19 | Department, to determine the
amount of the tax that the | ||||||
20 | provider is required to collect and remit
and any credit that | ||||||
21 | the provider is entitled to claim under
this Act. | ||||||
22 | (b) The records shall be open at all times to
inspection by | ||||||
23 | the Department.
| ||||||
24 | Section 15-30. Rules. The Department is authorized to adopt |
| |||||||
| |||||||
1 | and
enforce any reasonable rules and to prescribe such forms
| ||||||
2 | relating to the administration and enforcement of this Act
as | ||||||
3 | it may deem appropriate.
| ||||||
4 | Section 15-35. Incorporation of Retailers' Occupation Tax | ||||||
5 | Act and Uniform Penalty and Interest Act. All of the provisions | ||||||
6 | of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, and 5j of the | ||||||
7 | Retailers' Occupation Tax Act, which are not inconsistent with | ||||||
8 | this Act, and the Uniform Penalty and Interest Act, shall | ||||||
9 | apply, as far as practicable, to the subject matter of this Act | ||||||
10 | to the same extent as if such provisions were included herein. | ||||||
11 | References in those incorporated Sections to taxpayers and to | ||||||
12 | persons engaged in the business of selling tangible personal | ||||||
13 | property at retail mean providers of direct-to-home satellite | ||||||
14 | service,
direct broadcast satellite service, or digital | ||||||
15 | audio-visual
works service when used in this Act.
| ||||||
16 | ARTICLE 30. AMENDATORY PROVISIONS | ||||||
17 | Section 30-5. The State Finance Act is amended by changing | ||||||
18 | Section 6z-51 and by adding Sections 5.878 and 5.879 as | ||||||
19 | follows:
| ||||||
20 | (30 ILCS 105/5.878 new) | ||||||
21 | Sec. 5.878. The Budget Economic Stabilization Fund.
|
| |||||||
| |||||||
1 | (30 ILCS 105/5.879 new) | ||||||
2 | Sec. 5.879. The Bill Backlog Payment Fund.
| ||||||
3 | (30 ILCS 105/6z-51)
| ||||||
4 | Sec. 6z-51. Budget Stabilization Fund.
| ||||||
5 | (a) The Budget Stabilization Fund, a special fund in the | ||||||
6 | State Treasury,
shall consist of moneys appropriated or | ||||||
7 | transferred to that Fund, as provided
in Section 6z-43 and as | ||||||
8 | otherwise provided by law.
All earnings on Budget Stabilization | ||||||
9 | Fund investments shall be deposited into
that Fund.
| ||||||
10 | (b) Until an initial transfer has been made to the Budget | ||||||
11 | Economic Stabilization Fund under Section 5-30 of the Budget | ||||||
12 | Economic Stabilization Fund Act, the The State Comptroller may | ||||||
13 | direct the State Treasurer to transfer moneys
from the Budget | ||||||
14 | Stabilization Fund to the General Revenue Fund in order to meet
| ||||||
15 | cash flow deficits resulting from timing variations between | ||||||
16 | disbursements
and the receipt
of funds within a fiscal year. | ||||||
17 | Any moneys so borrowed in any fiscal year other than Fiscal | ||||||
18 | Year 2011 shall be repaid by June
30 of the fiscal year in | ||||||
19 | which they were borrowed.
Any moneys so borrowed in Fiscal Year | ||||||
20 | 2011 shall be repaid no later than July 15, 2011.
| ||||||
21 | (c) During Fiscal Year 2017 only, amounts may be expended | ||||||
22 | from the Budget Stabilization Fund only pursuant to specific | ||||||
23 | authorization by appropriation. Any moneys expended pursuant | ||||||
24 | to appropriation shall not be subject to repayment. | ||||||
25 | (Source: P.A. 99-523, eff. 6-30-16.)
|
| |||||||
| |||||||
1 | Section 30-10. The Illinois Income Tax Act is amended by | ||||||
2 | changing Sections 201, 203, 204, 208, 212, 222, 804, 901, and | ||||||
3 | 1501 and by adding Section 225 as follows:
| ||||||
4 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
5 | Sec. 201. Tax Imposed. | ||||||
6 | (a) In general. A tax measured by net income is hereby | ||||||
7 | imposed on every
individual, corporation, trust and estate for | ||||||
8 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
9 | of earning or receiving income in or
as a resident of this | ||||||
10 | State. Such tax shall be in addition to all other
occupation or | ||||||
11 | privilege taxes imposed by this State or by any municipal
| ||||||
12 | corporation or political subdivision thereof. | ||||||
13 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
14 | Section shall be
determined as follows, except as adjusted by | ||||||
15 | subsection (d-1): | ||||||
16 | (1) In the case of an individual, trust or estate, for | ||||||
17 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
18 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
19 | year. | ||||||
20 | (2) In the case of an individual, trust or estate, for | ||||||
21 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
22 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
23 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
24 | July 1, 1989, as calculated under Section 202.3, and (ii) |
| |||||||
| |||||||
1 | 3% of the
taxpayer's net income for the period after June | ||||||
2 | 30, 1989, as calculated
under Section 202.3. | ||||||
3 | (3) In the case of an individual, trust or estate, for | ||||||
4 | taxable years
beginning after June 30, 1989, and ending | ||||||
5 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
6 | taxpayer's net
income for the taxable year. | ||||||
7 | (4) In the case of an individual, trust, or estate, for | ||||||
8 | taxable years beginning prior to January 1, 2011, and | ||||||
9 | ending after December 31, 2010, an amount equal to the sum | ||||||
10 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
11 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
12 | (ii) 5% of the taxpayer's net income for the period after | ||||||
13 | December 31, 2010, as calculated under Section 202.5. | ||||||
14 | (5) In the case of an individual, trust, or estate, for | ||||||
15 | taxable years beginning on or after January 1, 2011, and | ||||||
16 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
17 | the taxpayer's net income for the taxable year. | ||||||
18 | (5.1) In the case of an individual, trust, or estate, | ||||||
19 | for taxable years beginning prior to January 1, 2015, and | ||||||
20 | ending after December 31, 2014, an amount equal to the sum | ||||||
21 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
22 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
23 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
24 | after December 31, 2014, as calculated under Section 202.5. | ||||||
25 | (5.2) In the case of an individual, trust, or estate, | ||||||
26 | for taxable years beginning on or after January 1, 2015, |
| |||||||
| |||||||
1 | and ending prior to January 1, 2017 January 1, 2025 , an | ||||||
2 | amount equal to 3.75% of the taxpayer's net income for the | ||||||
3 | taxable year. | ||||||
4 | (5.3) In the case of an individual, trust, or estate, | ||||||
5 | for taxable years beginning prior to January 1, 2017 | ||||||
6 | January 1, 2025 , and ending after December 31, 2016 | ||||||
7 | December 31, 2024 , an amount equal to the sum of (i) 3.75% | ||||||
8 | of the taxpayer's net income for the period prior to | ||||||
9 | January 1, 2017 January 1, 2025 , as calculated under | ||||||
10 | Section 202.5, and (ii) 4.95% 3.25% of the taxpayer's net | ||||||
11 | income for the period after December 31, 2016 December 31, | ||||||
12 | 2024 , as calculated under Section 202.5. | ||||||
13 | (5.4) In the case of an individual, trust, or estate, | ||||||
14 | for taxable years beginning on or after January 1, 2017 | ||||||
15 | January 1, 2025 , an amount equal to 4.95% 3.25% of the | ||||||
16 | taxpayer's net income for the taxable year. | ||||||
17 | (6) In the case of a corporation, for taxable years
| ||||||
18 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
19 | taxpayer's net income for the taxable year. | ||||||
20 | (7) In the case of a corporation, for taxable years | ||||||
21 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
22 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
23 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
24 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
25 | taxpayer's net
income for the period after June 30, 1989, | ||||||
26 | as calculated under Section
202.3. |
| |||||||
| |||||||
1 | (8) In the case of a corporation, for taxable years | ||||||
2 | beginning after
June 30, 1989, and ending prior to January | ||||||
3 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
4 | income for the
taxable year. | ||||||
5 | (9) In the case of a corporation, for taxable years | ||||||
6 | beginning prior to January 1, 2011, and ending after | ||||||
7 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
8 | of the taxpayer's net income for the period prior to | ||||||
9 | January 1, 2011, as calculated under Section 202.5, and | ||||||
10 | (ii) 7% of the taxpayer's net income for the period after | ||||||
11 | December 31, 2010, as calculated under Section 202.5. | ||||||
12 | (10) In the case of a corporation, for taxable years | ||||||
13 | beginning on or after January 1, 2011, and ending prior to | ||||||
14 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
15 | net income for the taxable year. | ||||||
16 | (11) In the case of a corporation, for taxable years | ||||||
17 | beginning prior to January 1, 2015, and ending after | ||||||
18 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
19 | the taxpayer's net income for the period prior to January | ||||||
20 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
21 | of the taxpayer's net income for the period after December | ||||||
22 | 31, 2014, as calculated under Section 202.5. | ||||||
23 | (12) In the case of a corporation, for taxable years | ||||||
24 | beginning on or after January 1, 2015, and ending prior to | ||||||
25 | January 1, 2017 January 1, 2025 , an amount equal to 5.25% | ||||||
26 | of the taxpayer's net income for the taxable year. |
| |||||||
| |||||||
1 | (13) In the case of a corporation, for taxable years | ||||||
2 | beginning prior to January 1, 2017 January 1, 2025 , and | ||||||
3 | ending after December 31, 2016 December 31, 2024 , an amount | ||||||
4 | equal to the sum of (i) 5.25% of the taxpayer's net income | ||||||
5 | for the period prior to January 1, 2017 January 1, 2025 , as | ||||||
6 | calculated under Section 202.5, and (ii) 7% 4.8% of the | ||||||
7 | taxpayer's net income for the period after December 31, | ||||||
8 | 2016 December 31, 2024 , as calculated under Section 202.5. | ||||||
9 | (14) In the case of a corporation, for taxable years | ||||||
10 | beginning on or after January 1, 2017 January 1, 2025 , an | ||||||
11 | amount equal to 7% 4.8% of the taxpayer's net income for | ||||||
12 | the taxable year. | ||||||
13 | The rates under this subsection (b) are subject to the | ||||||
14 | provisions of Section 201.5. | ||||||
15 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
16 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
17 | income
tax, there is also hereby imposed the Personal Property | ||||||
18 | Tax Replacement
Income Tax measured by net income on every | ||||||
19 | corporation (including Subchapter
S corporations), partnership | ||||||
20 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
21 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
22 | income in or as a resident of this State. The Personal Property
| ||||||
23 | Tax Replacement Income Tax shall be in addition to the income | ||||||
24 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
25 | addition to all other
occupation or privilege taxes imposed by | ||||||
26 | this State or by any municipal
corporation or political |
| |||||||
| |||||||
1 | subdivision thereof. | ||||||
2 | (d) Additional Personal Property Tax Replacement Income | ||||||
3 | Tax Rates.
The personal property tax replacement income tax | ||||||
4 | imposed by this subsection
and subsection (c) of this Section | ||||||
5 | in the case of a corporation, other
than a Subchapter S | ||||||
6 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
7 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
8 | income for the taxable year, except that
beginning on January | ||||||
9 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
10 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
11 | partnership, trust or a Subchapter S corporation shall be an | ||||||
12 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
13 | for the taxable year. | ||||||
14 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
15 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
16 | Illinois Insurance Code,
whose state or country of domicile | ||||||
17 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
18 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
19 | are 50% or more of its total insurance
premiums as determined | ||||||
20 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
21 | that for purposes of this determination premiums from | ||||||
22 | reinsurance do
not include premiums from inter-affiliate | ||||||
23 | reinsurance arrangements),
beginning with taxable years ending | ||||||
24 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
25 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
26 | increased) to the rate at which the total amount of tax imposed |
| |||||||
| |||||||
1 | under this Act,
net of all credits allowed under this Act, | ||||||
2 | shall equal (i) the total amount of
tax that would be imposed | ||||||
3 | on the foreign insurer's net income allocable to
Illinois for | ||||||
4 | the taxable year by such foreign insurer's state or country of
| ||||||
5 | domicile if that net income were subject to all income taxes | ||||||
6 | and taxes
measured by net income imposed by such foreign | ||||||
7 | insurer's state or country of
domicile, net of all credits | ||||||
8 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
9 | income by the foreign insurer's state of domicile.
For the | ||||||
10 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
11 | a
mutual insurer under common management. | ||||||
12 | (1) For the purposes of subsection (d-1), in no event | ||||||
13 | shall the sum of the
rates of tax imposed by subsections | ||||||
14 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
15 | (A) the total amount of tax imposed on such foreign | ||||||
16 | insurer under
this Act for a taxable year, net of all | ||||||
17 | credits allowed under this Act, plus | ||||||
18 | (B) the privilege tax imposed by Section 409 of the | ||||||
19 | Illinois Insurance
Code, the fire insurance company | ||||||
20 | tax imposed by Section 12 of the Fire
Investigation | ||||||
21 | Act, and the fire department taxes imposed under | ||||||
22 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
23 | equals 1.25% for taxable years ending prior to December 31, | ||||||
24 | 2003, or
1.75% for taxable years ending on or after | ||||||
25 | December 31, 2003, of the net
taxable premiums written for | ||||||
26 | the taxable year,
as described by subsection (1) of Section |
| |||||||
| |||||||
1 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
2 | no event increase the rates imposed under subsections
(b) | ||||||
3 | and (d). | ||||||
4 | (2) Any reduction in the rates of tax imposed by this | ||||||
5 | subsection shall be
applied first against the rates imposed | ||||||
6 | by subsection (b) and only after the
tax imposed by | ||||||
7 | subsection (a) net of all credits allowed under this | ||||||
8 | Section
other than the credit allowed under subsection (i) | ||||||
9 | has been reduced to zero,
against the rates imposed by | ||||||
10 | subsection (d). | ||||||
11 | This subsection (d-1) is exempt from the provisions of | ||||||
12 | Section 250. | ||||||
13 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
14 | against the Personal Property Tax Replacement Income Tax for
| ||||||
15 | investment in qualified property. | ||||||
16 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
17 | of
the basis of qualified property placed in service during | ||||||
18 | the taxable year,
provided such property is placed in | ||||||
19 | service on or after
July 1, 1984. There shall be allowed an | ||||||
20 | additional credit equal
to .5% of the basis of qualified | ||||||
21 | property placed in service during the
taxable year, | ||||||
22 | provided such property is placed in service on or
after | ||||||
23 | July 1, 1986, and the taxpayer's base employment
within | ||||||
24 | Illinois has increased by 1% or more over the preceding | ||||||
25 | year as
determined by the taxpayer's employment records | ||||||
26 | filed with the
Illinois Department of Employment Security. |
| |||||||
| |||||||
1 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
2 | met the 1% growth in base employment for
the first year in | ||||||
3 | which they file employment records with the Illinois
| ||||||
4 | Department of Employment Security. The provisions added to | ||||||
5 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
6 | Act 87-895) shall be
construed as declaratory of existing | ||||||
7 | law and not as a new enactment. If,
in any year, the | ||||||
8 | increase in base employment within Illinois over the
| ||||||
9 | preceding year is less than 1%, the additional credit shall | ||||||
10 | be limited to that
percentage times a fraction, the | ||||||
11 | numerator of which is .5% and the denominator
of which is | ||||||
12 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
13 | not be
allowed to the extent that it would reduce a | ||||||
14 | taxpayer's liability in any tax
year below zero, nor may | ||||||
15 | any credit for qualified property be allowed for any
year | ||||||
16 | other than the year in which the property was placed in | ||||||
17 | service in
Illinois. For tax years ending on or after | ||||||
18 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
19 | credit shall be allowed for the tax year in
which the | ||||||
20 | property is placed in service, or, if the amount of the | ||||||
21 | credit
exceeds the tax liability for that year, whether it | ||||||
22 | exceeds the original
liability or the liability as later | ||||||
23 | amended, such excess may be carried
forward and applied to | ||||||
24 | the tax liability of the 5 taxable years following
the | ||||||
25 | excess credit years if the taxpayer (i) makes investments | ||||||
26 | which cause
the creation of a minimum of 2,000 full-time |
| |||||||
| |||||||
1 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
2 | enterprise zone established pursuant to the Illinois
| ||||||
3 | Enterprise Zone Act and (iii) is certified by the | ||||||
4 | Department of Commerce
and Community Affairs (now | ||||||
5 | Department of Commerce and Economic Opportunity) as | ||||||
6 | complying with the requirements specified in
clause (i) and | ||||||
7 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
8 | Community Affairs (now Department of Commerce and Economic | ||||||
9 | Opportunity) shall notify the Department of Revenue of all | ||||||
10 | such
certifications immediately. For tax years ending | ||||||
11 | after December 31, 1988,
the credit shall be allowed for | ||||||
12 | the tax year in which the property is
placed in service, | ||||||
13 | or, if the amount of the credit exceeds the tax
liability | ||||||
14 | for that year, whether it exceeds the original liability or | ||||||
15 | the
liability as later amended, such excess may be carried | ||||||
16 | forward and applied
to the tax liability of the 5 taxable | ||||||
17 | years following the excess credit
years. The credit shall | ||||||
18 | be applied to the earliest year for which there is
a | ||||||
19 | liability. If there is credit from more than one tax year | ||||||
20 | that is
available to offset a liability, earlier credit | ||||||
21 | shall be applied first. | ||||||
22 | (2) The term "qualified property" means property | ||||||
23 | which: | ||||||
24 | (A) is tangible, whether new or used, including | ||||||
25 | buildings and structural
components of buildings and | ||||||
26 | signs that are real property, but not including
land or |
| |||||||
| |||||||
1 | improvements to real property that are not a structural | ||||||
2 | component of a
building such as landscaping, sewer | ||||||
3 | lines, local access roads, fencing, parking
lots, and | ||||||
4 | other appurtenances; | ||||||
5 | (B) is depreciable pursuant to Section 167 of the | ||||||
6 | Internal Revenue Code,
except that "3-year property" | ||||||
7 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
8 | eligible for the credit provided by this subsection | ||||||
9 | (e); | ||||||
10 | (C) is acquired by purchase as defined in Section | ||||||
11 | 179(d) of
the Internal Revenue Code; | ||||||
12 | (D) is used in Illinois by a taxpayer who is | ||||||
13 | primarily engaged in
manufacturing, or in mining coal | ||||||
14 | or fluorite, or in retailing, or was placed in service | ||||||
15 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
16 | Zone established pursuant to the River Edge | ||||||
17 | Redevelopment Zone Act; and | ||||||
18 | (E) has not previously been used in Illinois in | ||||||
19 | such a manner and by
such a person as would qualify for | ||||||
20 | the credit provided by this subsection
(e) or | ||||||
21 | subsection (f). | ||||||
22 | (3) For purposes of this subsection (e), | ||||||
23 | "manufacturing" means
the material staging and production | ||||||
24 | of tangible personal property by
procedures commonly | ||||||
25 | regarded as manufacturing, processing, fabrication, or
| ||||||
26 | assembling which changes some existing material into new |
| |||||||
| |||||||
1 | shapes, new
qualities, or new combinations. For purposes of | ||||||
2 | this subsection
(e) the term "mining" shall have the same | ||||||
3 | meaning as the term "mining" in
Section 613(c) of the | ||||||
4 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
5 | the term "retailing" means the sale of tangible personal | ||||||
6 | property for use or consumption and not for resale, or
| ||||||
7 | services rendered in conjunction with the sale of tangible | ||||||
8 | personal property for use or consumption and not for | ||||||
9 | resale. For purposes of this subsection (e), "tangible | ||||||
10 | personal property" has the same meaning as when that term | ||||||
11 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
12 | taxable years ending after December 31, 2008, does not | ||||||
13 | include the generation, transmission, or distribution of | ||||||
14 | electricity. | ||||||
15 | (4) The basis of qualified property shall be the basis
| ||||||
16 | used to compute the depreciation deduction for federal | ||||||
17 | income tax purposes. | ||||||
18 | (5) If the basis of the property for federal income tax | ||||||
19 | depreciation
purposes is increased after it has been placed | ||||||
20 | in service in Illinois by
the taxpayer, the amount of such | ||||||
21 | increase shall be deemed property placed
in service on the | ||||||
22 | date of such increase in basis. | ||||||
23 | (6) The term "placed in service" shall have the same
| ||||||
24 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
25 | (7) If during any taxable year, any property ceases to
| ||||||
26 | be qualified property in the hands of the taxpayer within |
| |||||||
| |||||||
1 | 48 months after
being placed in service, or the situs of | ||||||
2 | any qualified property is
moved outside Illinois within 48 | ||||||
3 | months after being placed in service, the
Personal Property | ||||||
4 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
5 | increased. Such increase shall be determined by (i) | ||||||
6 | recomputing the
investment credit which would have been | ||||||
7 | allowed for the year in which
credit for such property was | ||||||
8 | originally allowed by eliminating such
property from such | ||||||
9 | computation and, (ii) subtracting such recomputed credit
| ||||||
10 | from the amount of credit previously allowed. For the | ||||||
11 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
12 | qualified property resulting
from a redetermination of the | ||||||
13 | purchase price shall be deemed a disposition
of qualified | ||||||
14 | property to the extent of such reduction. | ||||||
15 | (8) Unless the investment credit is extended by law, | ||||||
16 | the
basis of qualified property shall not include costs | ||||||
17 | incurred after
December 31, 2018, except for costs incurred | ||||||
18 | pursuant to a binding
contract entered into on or before | ||||||
19 | December 31, 2018. | ||||||
20 | (9) Each taxable year ending before December 31, 2000, | ||||||
21 | a partnership may
elect to pass through to its
partners the | ||||||
22 | credits to which the partnership is entitled under this | ||||||
23 | subsection
(e) for the taxable year. A partner may use the | ||||||
24 | credit allocated to him or her
under this paragraph only | ||||||
25 | against the tax imposed in subsections (c) and (d) of
this | ||||||
26 | Section. If the partnership makes that election, those |
| |||||||
| |||||||
1 | credits shall be
allocated among the partners in the | ||||||
2 | partnership in accordance with the rules
set forth in | ||||||
3 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
4 | promulgated under that Section, and the allocated amount of | ||||||
5 | the credits shall
be allowed to the partners for that | ||||||
6 | taxable year. The partnership shall make
this election on | ||||||
7 | its Personal Property Tax Replacement Income Tax return for
| ||||||
8 | that taxable year. The election to pass through the credits | ||||||
9 | shall be
irrevocable. | ||||||
10 | For taxable years ending on or after December 31, 2000, | ||||||
11 | a
partner that qualifies its
partnership for a subtraction | ||||||
12 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
13 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
14 | S
corporation for a subtraction under subparagraph (S) of | ||||||
15 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
16 | allowed a credit under this subsection
(e) equal to its | ||||||
17 | share of the credit earned under this subsection (e) during
| ||||||
18 | the taxable year by the partnership or Subchapter S | ||||||
19 | corporation, determined in
accordance with the | ||||||
20 | determination of income and distributive share of
income | ||||||
21 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
22 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
23 | of Section 250. | ||||||
24 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
25 | Redevelopment Zone. | ||||||
26 | (1) A taxpayer shall be allowed a credit against the |
| |||||||
| |||||||
1 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
2 | investment in qualified
property which is placed in service | ||||||
3 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
4 | Enterprise Zone Act or, for property placed in service on | ||||||
5 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
6 | established pursuant to the River Edge Redevelopment Zone | ||||||
7 | Act. For partners, shareholders
of Subchapter S | ||||||
8 | corporations, and owners of limited liability companies,
| ||||||
9 | if the liability company is treated as a partnership for | ||||||
10 | purposes of
federal and State income taxation, there shall | ||||||
11 | be allowed a credit under
this subsection (f) to be | ||||||
12 | determined in accordance with the determination
of income | ||||||
13 | and distributive share of income under Sections 702 and 704 | ||||||
14 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
15 | shall be .5% of the
basis for such property. The credit | ||||||
16 | shall be available only in the taxable
year in which the | ||||||
17 | property is placed in service in the Enterprise Zone or | ||||||
18 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
19 | the extent that it would reduce a taxpayer's
liability for | ||||||
20 | the tax imposed by subsections (a) and (b) of this Section | ||||||
21 | to
below zero. For tax years ending on or after December | ||||||
22 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
23 | which the property is placed in
service, or, if the amount | ||||||
24 | of the credit exceeds the tax liability for that
year, | ||||||
25 | whether it exceeds the original liability or the liability | ||||||
26 | as later
amended, such excess may be carried forward and |
| |||||||
| |||||||
1 | applied to the tax
liability of the 5 taxable years | ||||||
2 | following the excess credit year.
The credit shall be | ||||||
3 | applied to the earliest year for which there is a
| ||||||
4 | liability. If there is credit from more than one tax year | ||||||
5 | that is available
to offset a liability, the credit | ||||||
6 | accruing first in time shall be applied
first. | ||||||
7 | (2) The term qualified property means property which: | ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and
structural components of buildings; | ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue
Code, except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (f); | ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of
the Internal Revenue Code; | ||||||
17 | (D) is used in the Enterprise Zone or River Edge | ||||||
18 | Redevelopment Zone by the taxpayer; and | ||||||
19 | (E) has not been previously used in Illinois in | ||||||
20 | such a manner and by
such a person as would qualify for | ||||||
21 | the credit provided by this subsection
(f) or | ||||||
22 | subsection (e). | ||||||
23 | (3) The basis of qualified property shall be the basis | ||||||
24 | used to compute
the depreciation deduction for federal | ||||||
25 | income tax purposes. | ||||||
26 | (4) If the basis of the property for federal income tax |
| |||||||
| |||||||
1 | depreciation
purposes is increased after it has been placed | ||||||
2 | in service in the Enterprise
Zone or River Edge | ||||||
3 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
4 | increase shall be deemed property
placed in service on the | ||||||
5 | date of such increase in basis. | ||||||
6 | (5) The term "placed in service" shall have the same | ||||||
7 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
8 | (6) If during any taxable year, any property ceases to | ||||||
9 | be qualified
property in the hands of the taxpayer within | ||||||
10 | 48 months after being placed
in service, or the situs of | ||||||
11 | any qualified property is moved outside the
Enterprise Zone | ||||||
12 | or River Edge Redevelopment Zone within 48 months after | ||||||
13 | being placed in service, the tax
imposed under subsections | ||||||
14 | (a) and (b) of this Section for such taxable year
shall be | ||||||
15 | increased. Such increase shall be determined by (i) | ||||||
16 | recomputing
the investment credit which would have been | ||||||
17 | allowed for the year in which
credit for such property was | ||||||
18 | originally allowed by eliminating such
property from such | ||||||
19 | computation, and (ii) subtracting such recomputed credit
| ||||||
20 | from the amount of credit previously allowed. For the | ||||||
21 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
22 | qualified property resulting
from a redetermination of the | ||||||
23 | purchase price shall be deemed a disposition
of qualified | ||||||
24 | property to the extent of such reduction. | ||||||
25 | (7) There shall be allowed an additional credit equal | ||||||
26 | to 0.5% of the basis of qualified property placed in |
| |||||||
| |||||||
1 | service during the taxable year in a River Edge | ||||||
2 | Redevelopment Zone, provided such property is placed in | ||||||
3 | service on or after July 1, 2006, and the taxpayer's base | ||||||
4 | employment within Illinois has increased by 1% or more over | ||||||
5 | the preceding year as determined by the taxpayer's | ||||||
6 | employment records filed with the Illinois Department of | ||||||
7 | Employment Security. Taxpayers who are new to Illinois | ||||||
8 | shall be deemed to have met the 1% growth in base | ||||||
9 | employment for the first year in which they file employment | ||||||
10 | records with the Illinois Department of Employment | ||||||
11 | Security. If, in any year, the increase in base employment | ||||||
12 | within Illinois over the preceding year is less than 1%, | ||||||
13 | the additional credit shall be limited to that percentage | ||||||
14 | times a fraction, the numerator of which is 0.5% and the | ||||||
15 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
16 | (g) (Blank). | ||||||
17 | (h) Investment credit; High Impact Business. | ||||||
18 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
19 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
20 | allowed a credit
against the tax imposed by subsections (a) | ||||||
21 | and (b) of this Section for
investment in qualified
| ||||||
22 | property which is placed in service by a Department of | ||||||
23 | Commerce and Economic Opportunity
designated High Impact | ||||||
24 | Business. The credit shall be .5% of the basis
for such | ||||||
25 | property. The credit shall not be available (i) until the | ||||||
26 | minimum
investments in qualified property set forth in |
| |||||||
| |||||||
1 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
2 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
3 | time authorized in subsection (b-5) of the Illinois
| ||||||
4 | Enterprise Zone Act for entities designated as High Impact | ||||||
5 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
6 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
7 | Act, and shall not be allowed to the extent that it would
| ||||||
8 | reduce a taxpayer's liability for the tax imposed by | ||||||
9 | subsections (a) and (b) of
this Section to below zero. The | ||||||
10 | credit applicable to such investments shall be
taken in the | ||||||
11 | taxable year in which such investments have been completed. | ||||||
12 | The
credit for additional investments beyond the minimum | ||||||
13 | investment by a designated
high impact business authorized | ||||||
14 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
15 | Enterprise Zone Act shall be available only in the taxable | ||||||
16 | year in
which the property is placed in service and shall | ||||||
17 | not be allowed to the extent
that it would reduce a | ||||||
18 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
19 | and (b) of this Section to below zero.
For tax years ending | ||||||
20 | on or after December 31, 1987, the credit shall be
allowed | ||||||
21 | for the tax year in which the property is placed in | ||||||
22 | service, or, if
the amount of the credit exceeds the tax | ||||||
23 | liability for that year, whether
it exceeds the original | ||||||
24 | liability or the liability as later amended, such
excess | ||||||
25 | may be carried forward and applied to the tax liability of | ||||||
26 | the 5
taxable years following the excess credit year. The |
| |||||||
| |||||||
1 | credit shall be
applied to the earliest year for which | ||||||
2 | there is a liability. If there is
credit from more than one | ||||||
3 | tax year that is available to offset a liability,
the | ||||||
4 | credit accruing first in time shall be applied first. | ||||||
5 | Changes made in this subdivision (h)(1) by Public Act | ||||||
6 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
7 | reflect existing law. | ||||||
8 | (2) The term qualified property means property which: | ||||||
9 | (A) is tangible, whether new or used, including | ||||||
10 | buildings and
structural components of buildings; | ||||||
11 | (B) is depreciable pursuant to Section 167 of the | ||||||
12 | Internal Revenue
Code, except that "3-year property" | ||||||
13 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
14 | eligible for the credit provided by this subsection | ||||||
15 | (h); | ||||||
16 | (C) is acquired by purchase as defined in Section | ||||||
17 | 179(d) of the
Internal Revenue Code; and | ||||||
18 | (D) is not eligible for the Enterprise Zone | ||||||
19 | Investment Credit provided
by subsection (f) of this | ||||||
20 | Section. | ||||||
21 | (3) The basis of qualified property shall be the basis | ||||||
22 | used to compute
the depreciation deduction for federal | ||||||
23 | income tax purposes. | ||||||
24 | (4) If the basis of the property for federal income tax | ||||||
25 | depreciation
purposes is increased after it has been placed | ||||||
26 | in service in a federally
designated Foreign Trade Zone or |
| |||||||
| |||||||
1 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
2 | such increase shall be deemed property placed in service on
| ||||||
3 | the date of such increase in basis. | ||||||
4 | (5) The term "placed in service" shall have the same | ||||||
5 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
6 | (6) If during any taxable year ending on or before | ||||||
7 | December 31, 1996,
any property ceases to be qualified
| ||||||
8 | property in the hands of the taxpayer within 48 months | ||||||
9 | after being placed
in service, or the situs of any | ||||||
10 | qualified property is moved outside
Illinois within 48 | ||||||
11 | months after being placed in service, the tax imposed
under | ||||||
12 | subsections (a) and (b) of this Section for such taxable | ||||||
13 | year shall
be increased. Such increase shall be determined | ||||||
14 | by (i) recomputing the
investment credit which would have | ||||||
15 | been allowed for the year in which
credit for such property | ||||||
16 | was originally allowed by eliminating such
property from | ||||||
17 | such computation, and (ii) subtracting such recomputed | ||||||
18 | credit
from the amount of credit previously allowed. For | ||||||
19 | the purposes of this
paragraph (6), a reduction of the | ||||||
20 | basis of qualified property resulting
from a | ||||||
21 | redetermination of the purchase price shall be deemed a | ||||||
22 | disposition
of qualified property to the extent of such | ||||||
23 | reduction. | ||||||
24 | (7) Beginning with tax years ending after December 31, | ||||||
25 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
26 | subsection (h) and thereby is
granted a tax abatement and |
| |||||||
| |||||||
1 | the taxpayer relocates its entire facility in
violation of | ||||||
2 | the explicit terms and length of the contract under Section
| ||||||
3 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
4 | subsections
(a) and (b) of this Section shall be increased | ||||||
5 | for the taxable year
in which the taxpayer relocated its | ||||||
6 | facility by an amount equal to the
amount of credit | ||||||
7 | received by the taxpayer under this subsection (h). | ||||||
8 | (i) Credit for Personal Property Tax Replacement Income | ||||||
9 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
10 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
11 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
12 | (d) of this Section. This credit shall be computed by | ||||||
13 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
14 | Section by a fraction, the numerator
of which is base income | ||||||
15 | allocable to Illinois and the denominator of which is
Illinois | ||||||
16 | base income, and further multiplying the product by the tax | ||||||
17 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
18 | Any credit earned on or after December 31, 1986 under
this | ||||||
19 | subsection which is unused in the year
the credit is computed | ||||||
20 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
21 | and (b) for that year (whether it exceeds the original
| ||||||
22 | liability or the liability as later amended) may be carried | ||||||
23 | forward and
applied to the tax liability imposed by subsections | ||||||
24 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
25 | year, provided that no credit may
be carried forward to any | ||||||
26 | year ending on or
after December 31, 2003. This credit shall be
|
| |||||||
| |||||||
1 | applied first to the earliest year for which there is a | ||||||
2 | liability. If
there is a credit under this subsection from more | ||||||
3 | than one tax year that is
available to offset a liability the | ||||||
4 | earliest credit arising under this
subsection shall be applied | ||||||
5 | first. | ||||||
6 | If, during any taxable year ending on or after December 31, | ||||||
7 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
8 | Section for which a taxpayer
has claimed a credit under this | ||||||
9 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
10 | shall also be reduced. Such reduction shall be
determined by | ||||||
11 | recomputing the credit to take into account the reduced tax
| ||||||
12 | imposed by subsections (c) and (d). If any portion of the
| ||||||
13 | reduced amount of credit has been carried to a different | ||||||
14 | taxable year, an
amended return shall be filed for such taxable | ||||||
15 | year to reduce the amount of
credit claimed. | ||||||
16 | (j) Training expense credit. Beginning with tax years | ||||||
17 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
18 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
19 | imposed by subsections (a) and (b) under this Section
for all | ||||||
20 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
21 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
22 | of Illinois by a taxpayer, for educational or vocational | ||||||
23 | training in
semi-technical or technical fields or semi-skilled | ||||||
24 | or skilled fields, which
were deducted from gross income in the | ||||||
25 | computation of taxable income. The
credit against the tax | ||||||
26 | imposed by subsections (a) and (b) shall be 1.6% of
such |
| |||||||
| |||||||
1 | training expenses. For partners, shareholders of subchapter S
| ||||||
2 | corporations, and owners of limited liability companies, if the | ||||||
3 | liability
company is treated as a partnership for purposes of | ||||||
4 | federal and State income
taxation, there shall be allowed a | ||||||
5 | credit under this subsection (j) to be
determined in accordance | ||||||
6 | with the determination of income and distributive
share of | ||||||
7 | income under Sections 702 and 704 and subchapter S of the | ||||||
8 | Internal
Revenue Code. | ||||||
9 | Any credit allowed under this subsection which is unused in | ||||||
10 | the year
the credit is earned may be carried forward to each of | ||||||
11 | the 5 taxable
years following the year for which the credit is | ||||||
12 | first computed until it is
used. This credit shall be applied | ||||||
13 | first to the earliest year for which
there is a liability. If | ||||||
14 | there is a credit under this subsection from more
than one tax | ||||||
15 | year that is available to offset a liability the earliest
| ||||||
16 | credit arising under this subsection shall be applied first. No | ||||||
17 | carryforward
credit may be claimed in any tax year ending on or | ||||||
18 | after
December 31, 2003. | ||||||
19 | (k) Research and development credit. For tax years ending | ||||||
20 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
21 | beginning again for tax years ending on or after December 31, | ||||||
22 | 2004 , and ending prior to January 1, 2016, a taxpayer shall be
| ||||||
23 | allowed a credit against the tax imposed by subsections (a) and | ||||||
24 | (b) of this
Section for increasing research activities in this | ||||||
25 | State. The credit
allowed against the tax imposed by | ||||||
26 | subsections (a) and (b) shall be equal
to 6 1/2% of the |
| |||||||
| |||||||
1 | qualifying expenditures for increasing research activities
in | ||||||
2 | this State. For partners, shareholders of subchapter S | ||||||
3 | corporations, and
owners of limited liability companies, if the | ||||||
4 | liability company is treated as a
partnership for purposes of | ||||||
5 | federal and State income taxation, there shall be
allowed a | ||||||
6 | credit under this subsection to be determined in accordance | ||||||
7 | with the
determination of income and distributive share of | ||||||
8 | income under Sections 702 and
704 and subchapter S of the | ||||||
9 | Internal Revenue Code. | ||||||
10 | For purposes of this subsection, "qualifying expenditures" | ||||||
11 | means the
qualifying expenditures as defined for the federal | ||||||
12 | credit for increasing
research activities which would be | ||||||
13 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
14 | which are conducted in this State, "qualifying
expenditures for | ||||||
15 | increasing research activities in this State" means the
excess | ||||||
16 | of qualifying expenditures for the taxable year in which | ||||||
17 | incurred
over qualifying expenditures for the base period, | ||||||
18 | "qualifying expenditures
for the base period" means (i) for tax | ||||||
19 | years ending prior to December 31, 2017, the average of the | ||||||
20 | qualifying expenditures for
each year in the base period ; and | ||||||
21 | (2) for tax years ending on or after December 31, 2017, 50% of | ||||||
22 | the average of the qualifying expenditures for each year in the | ||||||
23 | base period , and "base period" means the 3 taxable years
| ||||||
24 | immediately preceding the taxable year for which the | ||||||
25 | determination is
being made. | ||||||
26 | Any credit in excess of the tax liability for the taxable |
| |||||||
| |||||||
1 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
2 | unused credit shown on its final completed return carried over | ||||||
3 | as a credit
against the tax liability for the following 5 | ||||||
4 | taxable years or until it has
been fully used, whichever occurs | ||||||
5 | first; provided that no credit earned in a tax year ending | ||||||
6 | prior to December 31, 2003 may be carried forward to any year | ||||||
7 | ending on or after December 31, 2003. | ||||||
8 | If an unused credit is carried forward to a given year from | ||||||
9 | 2 or more
earlier years, that credit arising in the earliest | ||||||
10 | year will be applied
first against the tax liability for the | ||||||
11 | given year. If a tax liability for
the given year still | ||||||
12 | remains, the credit from the next earliest year will
then be | ||||||
13 | applied, and so on, until all credits have been used or no tax
| ||||||
14 | liability for the given year remains. Any remaining unused | ||||||
15 | credit or
credits then will be carried forward to the next | ||||||
16 | following year in which a
tax liability is incurred, except | ||||||
17 | that no credit can be carried forward to
a year which is more | ||||||
18 | than 5 years after the year in which the expense for
which the | ||||||
19 | credit is given was incurred. | ||||||
20 | No inference shall be drawn from this amendatory Act of the | ||||||
21 | 91st General
Assembly in construing this Section for taxable | ||||||
22 | years beginning before January
1, 1999. | ||||||
23 | This subsection (k) is exempt from the provisions of | ||||||
24 | Section 250. | ||||||
25 | It is the intent of the General Assembly that the research | ||||||
26 | and development credit under this subsection (k) shall apply |
| |||||||
| |||||||
1 | continuously for all tax years ending on or after December 31, | ||||||
2 | 2004, including, but not limited to, the period beginning on | ||||||
3 | January 1, 2016 and ending on the effective date of this | ||||||
4 | amendatory Act of the 100th General Assembly. All actions taken | ||||||
5 | in reliance on the continuation of the credit under this | ||||||
6 | subsection (k) by any taxpayer are hereby validated. | ||||||
7 | (l) Environmental Remediation Tax Credit. | ||||||
8 | (i) For tax years ending after December 31, 1997 and on | ||||||
9 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
10 | credit against the tax
imposed by subsections (a) and (b) | ||||||
11 | of this Section for certain amounts paid
for unreimbursed | ||||||
12 | eligible remediation costs, as specified in this | ||||||
13 | subsection.
For purposes of this Section, "unreimbursed | ||||||
14 | eligible remediation costs" means
costs approved by the | ||||||
15 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
16 | Section 58.14 of the Environmental Protection Act that were | ||||||
17 | paid in performing
environmental remediation at a site for | ||||||
18 | which a No Further Remediation Letter
was issued by the | ||||||
19 | Agency and recorded under Section 58.10 of the | ||||||
20 | Environmental
Protection Act. The credit must be claimed | ||||||
21 | for the taxable year in which
Agency approval of the | ||||||
22 | eligible remediation costs is granted. The credit is
not | ||||||
23 | available to any taxpayer if the taxpayer or any related | ||||||
24 | party caused or
contributed to, in any material respect, a | ||||||
25 | release of regulated substances on,
in, or under the site | ||||||
26 | that was identified and addressed by the remedial
action |
| |||||||
| |||||||
1 | pursuant to the Site Remediation Program of the | ||||||
2 | Environmental Protection
Act. After the Pollution Control | ||||||
3 | Board rules are adopted pursuant to the
Illinois | ||||||
4 | Administrative Procedure Act for the administration and | ||||||
5 | enforcement of
Section 58.9 of the Environmental | ||||||
6 | Protection Act, determinations as to credit
availability | ||||||
7 | for purposes of this Section shall be made consistent with | ||||||
8 | those
rules. For purposes of this Section, "taxpayer" | ||||||
9 | includes a person whose tax
attributes the taxpayer has | ||||||
10 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
11 | and "related party" includes the persons disallowed a | ||||||
12 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
13 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
14 | a related taxpayer, as well as any of its
partners. The | ||||||
15 | credit allowed against the tax imposed by subsections (a) | ||||||
16 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
17 | remediation costs in
excess of $100,000 per site, except | ||||||
18 | that the $100,000 threshold shall not apply
to any site | ||||||
19 | contained in an enterprise zone as determined by the | ||||||
20 | Department of
Commerce and Community Affairs (now | ||||||
21 | Department of Commerce and Economic Opportunity). The | ||||||
22 | total credit allowed shall not exceed
$40,000 per year with | ||||||
23 | a maximum total of $150,000 per site. For partners and
| ||||||
24 | shareholders of subchapter S corporations, there shall be | ||||||
25 | allowed a credit
under this subsection to be determined in | ||||||
26 | accordance with the determination of
income and |
| |||||||
| |||||||
1 | distributive share of income under Sections 702 and 704 and
| ||||||
2 | subchapter S of the Internal Revenue Code. | ||||||
3 | (ii) A credit allowed under this subsection that is | ||||||
4 | unused in the year
the credit is earned may be carried | ||||||
5 | forward to each of the 5 taxable years
following the year | ||||||
6 | for which the credit is first earned until it is used.
The | ||||||
7 | term "unused credit" does not include any amounts of | ||||||
8 | unreimbursed eligible
remediation costs in excess of the | ||||||
9 | maximum credit per site authorized under
paragraph (i). | ||||||
10 | This credit shall be applied first to the earliest year
for | ||||||
11 | which there is a liability. If there is a credit under this | ||||||
12 | subsection
from more than one tax year that is available to | ||||||
13 | offset a liability, the
earliest credit arising under this | ||||||
14 | subsection shall be applied first. A
credit allowed under | ||||||
15 | this subsection may be sold to a buyer as part of a sale
of | ||||||
16 | all or part of the remediation site for which the credit | ||||||
17 | was granted. The
purchaser of a remediation site and the | ||||||
18 | tax credit shall succeed to the unused
credit and remaining | ||||||
19 | carry-forward period of the seller. To perfect the
| ||||||
20 | transfer, the assignor shall record the transfer in the | ||||||
21 | chain of title for the
site and provide written notice to | ||||||
22 | the Director of the Illinois Department of
Revenue of the | ||||||
23 | assignor's intent to sell the remediation site and the | ||||||
24 | amount of
the tax credit to be transferred as a portion of | ||||||
25 | the sale. In no event may a
credit be transferred to any | ||||||
26 | taxpayer if the taxpayer or a related party would
not be |
| |||||||
| |||||||
1 | eligible under the provisions of subsection (i). | ||||||
2 | (iii) For purposes of this Section, the term "site" | ||||||
3 | shall have the same
meaning as under Section 58.2 of the | ||||||
4 | Environmental Protection Act. | ||||||
5 | (m) Education expense credit. Beginning with tax years | ||||||
6 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
7 | of one or more qualifying pupils shall be allowed a credit
| ||||||
8 | against the tax imposed by subsections (a) and (b) of this | ||||||
9 | Section for
qualified education expenses incurred on behalf of | ||||||
10 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
11 | qualified education expenses, but in no
event may the total | ||||||
12 | credit under this subsection claimed by a
family that is the
| ||||||
13 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
14 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
15 | ending on or after December 31, 2017 . In no event shall a | ||||||
16 | credit under
this subsection reduce the taxpayer's liability | ||||||
17 | under this Act to less than
zero. Notwithstanding any other | ||||||
18 | provision of law, for taxable years beginning on or after | ||||||
19 | January 1, 2018, no taxpayer may claim a credit under this | ||||||
20 | subsection (m) if the taxpayer's adjusted gross income for the | ||||||
21 | taxable year exceeds (i) $500,000, in the case of spouses | ||||||
22 | filing a joint federal tax return or (ii) $250,000, in the case | ||||||
23 | of all other taxpayers. This subsection is exempt from the | ||||||
24 | provisions of Section 250 of this
Act. | ||||||
25 | For purposes of this subsection: | ||||||
26 | "Qualifying pupils" means individuals who (i) are |
| |||||||
| |||||||
1 | residents of the State of
Illinois, (ii) are under the age of | ||||||
2 | 21 at the close of the school year for
which a credit is | ||||||
3 | sought, and (iii) during the school year for which a credit
is | ||||||
4 | sought were full-time pupils enrolled in a kindergarten through | ||||||
5 | twelfth
grade education program at any school, as defined in | ||||||
6 | this subsection. | ||||||
7 | "Qualified education expense" means the amount incurred
on | ||||||
8 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
9 | book fees, and
lab fees at the school in which the pupil is | ||||||
10 | enrolled during the regular school
year. | ||||||
11 | "School" means any public or nonpublic elementary or | ||||||
12 | secondary school in
Illinois that is in compliance with Title | ||||||
13 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
14 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
15 | except that nothing shall be construed to require a child to
| ||||||
16 | attend any particular public or nonpublic school to qualify for | ||||||
17 | the credit
under this Section. | ||||||
18 | "Custodian" means, with respect to qualifying pupils, an | ||||||
19 | Illinois resident
who is a parent, the parents, a legal | ||||||
20 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
21 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
22 | credit.
| ||||||
23 | (i) For tax years ending on or after December 31, 2006, | ||||||
24 | a taxpayer shall be allowed a credit against the tax | ||||||
25 | imposed by subsections (a) and (b) of this Section for | ||||||
26 | certain amounts paid for unreimbursed eligible remediation |
| |||||||
| |||||||
1 | costs, as specified in this subsection. For purposes of | ||||||
2 | this Section, "unreimbursed eligible remediation costs" | ||||||
3 | means costs approved by the Illinois Environmental | ||||||
4 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
5 | Environmental Protection Act that were paid in performing | ||||||
6 | environmental remediation at a site within a River Edge | ||||||
7 | Redevelopment Zone for which a No Further Remediation | ||||||
8 | Letter was issued by the Agency and recorded under Section | ||||||
9 | 58.10 of the Environmental Protection Act. The credit must | ||||||
10 | be claimed for the taxable year in which Agency approval of | ||||||
11 | the eligible remediation costs is granted. The credit is | ||||||
12 | not available to any taxpayer if the taxpayer or any | ||||||
13 | related party caused or contributed to, in any material | ||||||
14 | respect, a release of regulated substances on, in, or under | ||||||
15 | the site that was identified and addressed by the remedial | ||||||
16 | action pursuant to the Site Remediation Program of the | ||||||
17 | Environmental Protection Act. Determinations as to credit | ||||||
18 | availability for purposes of this Section shall be made | ||||||
19 | consistent with rules adopted by the Pollution Control | ||||||
20 | Board pursuant to the Illinois Administrative Procedure | ||||||
21 | Act for the administration and enforcement of Section 58.9 | ||||||
22 | of the Environmental Protection Act. For purposes of this | ||||||
23 | Section, "taxpayer" includes a person whose tax attributes | ||||||
24 | the taxpayer has succeeded to under Section 381 of the | ||||||
25 | Internal Revenue Code and "related party" includes the | ||||||
26 | persons disallowed a deduction for losses by paragraphs |
| |||||||
| |||||||
1 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
2 | Code by virtue of being a related taxpayer, as well as any | ||||||
3 | of its partners. The credit allowed against the tax imposed | ||||||
4 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
5 | unreimbursed eligible remediation costs in excess of | ||||||
6 | $100,000 per site. | ||||||
7 | (ii) A credit allowed under this subsection that is | ||||||
8 | unused in the year the credit is earned may be carried | ||||||
9 | forward to each of the 5 taxable years following the year | ||||||
10 | for which the credit is first earned until it is used. This | ||||||
11 | credit shall be applied first to the earliest year for | ||||||
12 | which there is a liability. If there is a credit under this | ||||||
13 | subsection from more than one tax year that is available to | ||||||
14 | offset a liability, the earliest credit arising under this | ||||||
15 | subsection shall be applied first. A credit allowed under | ||||||
16 | this subsection may be sold to a buyer as part of a sale of | ||||||
17 | all or part of the remediation site for which the credit | ||||||
18 | was granted. The purchaser of a remediation site and the | ||||||
19 | tax credit shall succeed to the unused credit and remaining | ||||||
20 | carry-forward period of the seller. To perfect the | ||||||
21 | transfer, the assignor shall record the transfer in the | ||||||
22 | chain of title for the site and provide written notice to | ||||||
23 | the Director of the Illinois Department of Revenue of the | ||||||
24 | assignor's intent to sell the remediation site and the | ||||||
25 | amount of the tax credit to be transferred as a portion of | ||||||
26 | the sale. In no event may a credit be transferred to any |
| |||||||
| |||||||
1 | taxpayer if the taxpayer or a related party would not be | ||||||
2 | eligible under the provisions of subsection (i). | ||||||
3 | (iii) For purposes of this Section, the term "site" | ||||||
4 | shall have the same meaning as under Section 58.2 of the | ||||||
5 | Environmental Protection Act. | ||||||
6 | (o) For each of taxable years during the Compassionate Use | ||||||
7 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
8 | all taxpayers on income arising from the sale or exchange of | ||||||
9 | capital assets, depreciable business property, real property | ||||||
10 | used in the trade or business, and Section 197 intangibles of | ||||||
11 | an organization registrant under the Compassionate Use of | ||||||
12 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
13 | is equal to the amount of federal income tax liability for the | ||||||
14 | taxable year attributable to those sales and exchanges. The | ||||||
15 | surcharge imposed does not apply if: | ||||||
16 | (1) the medical cannabis cultivation center | ||||||
17 | registration, medical cannabis dispensary registration, or | ||||||
18 | the property of a registration is transferred as a result | ||||||
19 | of any of the following: | ||||||
20 | (A) bankruptcy, a receivership, or a debt | ||||||
21 | adjustment initiated by or against the initial | ||||||
22 | registration or the substantial owners of the initial | ||||||
23 | registration; | ||||||
24 | (B) cancellation, revocation, or termination of | ||||||
25 | any registration by the Illinois Department of Public | ||||||
26 | Health; |
| |||||||
| |||||||
1 | (C) a determination by the Illinois Department of | ||||||
2 | Public Health that transfer of the registration is in | ||||||
3 | the best interests of Illinois qualifying patients as | ||||||
4 | defined by the Compassionate Use of Medical Cannabis | ||||||
5 | Pilot Program Act; | ||||||
6 | (D) the death of an owner of the equity interest in | ||||||
7 | a registrant; | ||||||
8 | (E) the acquisition of a controlling interest in | ||||||
9 | the stock or substantially all of the assets of a | ||||||
10 | publicly traded company; | ||||||
11 | (F) a transfer by a parent company to a wholly | ||||||
12 | owned subsidiary; or | ||||||
13 | (G) the transfer or sale to or by one person to | ||||||
14 | another person where both persons were initial owners | ||||||
15 | of the registration when the registration was issued; | ||||||
16 | or | ||||||
17 | (2) the cannabis cultivation center registration, | ||||||
18 | medical cannabis dispensary registration, or the | ||||||
19 | controlling interest in a registrant's property is | ||||||
20 | transferred in a transaction to lineal descendants in which | ||||||
21 | no gain or loss is recognized or as a result of a | ||||||
22 | transaction in accordance with Section 351 of the Internal | ||||||
23 | Revenue Code in which no gain or loss is recognized. | ||||||
24 | (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, | ||||||
25 | eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756, | ||||||
26 | eff. 7-16-14.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
2 | Sec. 203. Base income defined. | ||||||
3 | (a) Individuals. | ||||||
4 | (1) In general. In the case of an individual, base | ||||||
5 | income means an
amount equal to the taxpayer's adjusted | ||||||
6 | gross income for the taxable
year as modified by paragraph | ||||||
7 | (2). | ||||||
8 | (2) Modifications. The adjusted gross income referred | ||||||
9 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
10 | sum of the
following amounts: | ||||||
11 | (A) An amount equal to all amounts paid or accrued | ||||||
12 | to the taxpayer
as interest or dividends during the | ||||||
13 | taxable year to the extent excluded
from gross income | ||||||
14 | in the computation of adjusted gross income, except | ||||||
15 | stock
dividends of qualified public utilities | ||||||
16 | described in Section 305(e) of the
Internal Revenue | ||||||
17 | Code; | ||||||
18 | (B) An amount equal to the amount of tax imposed by | ||||||
19 | this Act to the
extent deducted from gross income in | ||||||
20 | the computation of adjusted gross
income for the | ||||||
21 | taxable year; | ||||||
22 | (C) An amount equal to the amount received during | ||||||
23 | the taxable year
as a recovery or refund of real | ||||||
24 | property taxes paid with respect to the
taxpayer's | ||||||
25 | principal residence under the Revenue Act of
1939 and |
| |||||||
| |||||||
1 | for which a deduction was previously taken under | ||||||
2 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
3 | 1991, the retrospective application date of
Article 4 | ||||||
4 | of Public Act 87-17. In the case of multi-unit or | ||||||
5 | multi-use
structures and farm dwellings, the taxes on | ||||||
6 | the taxpayer's principal residence
shall be that | ||||||
7 | portion of the total taxes for the entire property | ||||||
8 | which is
attributable to such principal residence; | ||||||
9 | (D) An amount equal to the amount of the capital | ||||||
10 | gain deduction
allowable under the Internal Revenue | ||||||
11 | Code, to the extent deducted from gross
income in the | ||||||
12 | computation of adjusted gross income; | ||||||
13 | (D-5) An amount, to the extent not included in | ||||||
14 | adjusted gross income,
equal to the amount of money | ||||||
15 | withdrawn by the taxpayer in the taxable year from
a | ||||||
16 | medical care savings account and the interest earned on | ||||||
17 | the account in the
taxable year of a withdrawal | ||||||
18 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
19 | Care Savings Account Act or subsection (b) of Section | ||||||
20 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
21 | (D-10) For taxable years ending after December 31, | ||||||
22 | 1997, an
amount equal to any eligible remediation costs | ||||||
23 | that the individual
deducted in computing adjusted | ||||||
24 | gross income and for which the
individual claims a | ||||||
25 | credit under subsection (l) of Section 201; | ||||||
26 | (D-15) For taxable years 2001 and thereafter, an |
| |||||||
| |||||||
1 | amount equal to the
bonus depreciation deduction taken | ||||||
2 | on the taxpayer's federal income tax return for the | ||||||
3 | taxable
year under subsection (k) of Section 168 of the | ||||||
4 | Internal Revenue Code; | ||||||
5 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
6 | or otherwise disposes of property for which the | ||||||
7 | taxpayer was required in any taxable year to
make an | ||||||
8 | addition modification under subparagraph (D-15), then | ||||||
9 | an amount equal
to the aggregate amount of the | ||||||
10 | deductions taken in all taxable
years under | ||||||
11 | subparagraph (Z) with respect to that property. | ||||||
12 | If the taxpayer continues to own property through | ||||||
13 | the last day of the last tax year for which the | ||||||
14 | taxpayer may claim a depreciation deduction for | ||||||
15 | federal income tax purposes and for which the taxpayer | ||||||
16 | was allowed in any taxable year to make a subtraction | ||||||
17 | modification under subparagraph (Z), then an amount | ||||||
18 | equal to that subtraction modification.
| ||||||
19 | The taxpayer is required to make the addition | ||||||
20 | modification under this
subparagraph
only once with | ||||||
21 | respect to any one piece of property; | ||||||
22 | (D-17) An amount equal to the amount otherwise | ||||||
23 | allowed as a deduction in computing base income for | ||||||
24 | interest paid, accrued, or incurred, directly or | ||||||
25 | indirectly, (i) for taxable years ending on or after | ||||||
26 | December 31, 2004, to a foreign person who would be a |
| |||||||
| |||||||
1 | member of the same unitary business group but for the | ||||||
2 | fact that foreign person's business activity outside | ||||||
3 | the United States is 80% or more of the foreign | ||||||
4 | person's total business activity and (ii) for taxable | ||||||
5 | years ending on or after December 31, 2008, to a person | ||||||
6 | who would be a member of the same unitary business | ||||||
7 | group but for the fact that the person is prohibited | ||||||
8 | under Section 1501(a)(27) from being included in the | ||||||
9 | unitary business group because he or she is ordinarily | ||||||
10 | required to apportion business income under different | ||||||
11 | subsections of Section 304. The addition modification | ||||||
12 | required by this subparagraph shall be reduced to the | ||||||
13 | extent that dividends were included in base income of | ||||||
14 | the unitary group for the same taxable year and | ||||||
15 | received by the taxpayer or by a member of the | ||||||
16 | taxpayer's unitary business group (including amounts | ||||||
17 | included in gross income under Sections 951 through 964 | ||||||
18 | of the Internal Revenue Code and amounts included in | ||||||
19 | gross income under Section 78 of the Internal Revenue | ||||||
20 | Code) with respect to the stock of the same person to | ||||||
21 | whom the interest was paid, accrued, or incurred. | ||||||
22 | This paragraph shall not apply to the following:
| ||||||
23 | (i) an item of interest paid, accrued, or | ||||||
24 | incurred, directly or indirectly, to a person who | ||||||
25 | is subject in a foreign country or state, other | ||||||
26 | than a state which requires mandatory unitary |
| |||||||
| |||||||
1 | reporting, to a tax on or measured by net income | ||||||
2 | with respect to such interest; or | ||||||
3 | (ii) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person if | ||||||
5 | the taxpayer can establish, based on a | ||||||
6 | preponderance of the evidence, both of the | ||||||
7 | following: | ||||||
8 | (a) the person, during the same taxable | ||||||
9 | year, paid, accrued, or incurred, the interest | ||||||
10 | to a person that is not a related member, and | ||||||
11 | (b) the transaction giving rise to the | ||||||
12 | interest expense between the taxpayer and the | ||||||
13 | person did not have as a principal purpose the | ||||||
14 | avoidance of Illinois income tax, and is paid | ||||||
15 | pursuant to a contract or agreement that | ||||||
16 | reflects an arm's-length interest rate and | ||||||
17 | terms; or
| ||||||
18 | (iii) the taxpayer can establish, based on | ||||||
19 | clear and convincing evidence, that the interest | ||||||
20 | paid, accrued, or incurred relates to a contract or | ||||||
21 | agreement entered into at arm's-length rates and | ||||||
22 | terms and the principal purpose for the payment is | ||||||
23 | not federal or Illinois tax avoidance; or
| ||||||
24 | (iv) an item of interest paid, accrued, or | ||||||
25 | incurred, directly or indirectly, to a person if | ||||||
26 | the taxpayer establishes by clear and convincing |
| |||||||
| |||||||
1 | evidence that the adjustments are unreasonable; or | ||||||
2 | if the taxpayer and the Director agree in writing | ||||||
3 | to the application or use of an alternative method | ||||||
4 | of apportionment under Section 304(f).
| ||||||
5 | Nothing in this subsection shall preclude the | ||||||
6 | Director from making any other adjustment | ||||||
7 | otherwise allowed under Section 404 of this Act for | ||||||
8 | any tax year beginning after the effective date of | ||||||
9 | this amendment provided such adjustment is made | ||||||
10 | pursuant to regulation adopted by the Department | ||||||
11 | and such regulations provide methods and standards | ||||||
12 | by which the Department will utilize its authority | ||||||
13 | under Section 404 of this Act;
| ||||||
14 | (D-18) An amount equal to the amount of intangible | ||||||
15 | expenses and costs otherwise allowed as a deduction in | ||||||
16 | computing base income, and that were paid, accrued, or | ||||||
17 | incurred, directly or indirectly, (i) for taxable | ||||||
18 | years ending on or after December 31, 2004, to a | ||||||
19 | foreign person who would be a member of the same | ||||||
20 | unitary business group but for the fact that the | ||||||
21 | foreign person's business activity outside the United | ||||||
22 | States is 80% or more of that person's total business | ||||||
23 | activity and (ii) for taxable years ending on or after | ||||||
24 | December 31, 2008, to a person who would be a member of | ||||||
25 | the same unitary business group but for the fact that | ||||||
26 | the person is prohibited under Section 1501(a)(27) |
| |||||||
| |||||||
1 | from being included in the unitary business group | ||||||
2 | because he or she is ordinarily required to apportion | ||||||
3 | business income under different subsections of Section | ||||||
4 | 304. The addition modification required by this | ||||||
5 | subparagraph shall be reduced to the extent that | ||||||
6 | dividends were included in base income of the unitary | ||||||
7 | group for the same taxable year and received by the | ||||||
8 | taxpayer or by a member of the taxpayer's unitary | ||||||
9 | business group (including amounts included in gross | ||||||
10 | income under Sections 951 through 964 of the Internal | ||||||
11 | Revenue Code and amounts included in gross income under | ||||||
12 | Section 78 of the Internal Revenue Code) with respect | ||||||
13 | to the stock of the same person to whom the intangible | ||||||
14 | expenses and costs were directly or indirectly paid, | ||||||
15 | incurred, or accrued. The preceding sentence does not | ||||||
16 | apply to the extent that the same dividends caused a | ||||||
17 | reduction to the addition modification required under | ||||||
18 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
19 | subparagraph, the term "intangible expenses and costs" | ||||||
20 | includes (1) expenses, losses, and costs for, or | ||||||
21 | related to, the direct or indirect acquisition, use, | ||||||
22 | maintenance or management, ownership, sale, exchange, | ||||||
23 | or any other disposition of intangible property; (2) | ||||||
24 | losses incurred, directly or indirectly, from | ||||||
25 | factoring transactions or discounting transactions; | ||||||
26 | (3) royalty, patent, technical, and copyright fees; |
| |||||||
| |||||||
1 | (4) licensing fees; and (5) other similar expenses and | ||||||
2 | costs.
For purposes of this subparagraph, "intangible | ||||||
3 | property" includes patents, patent applications, trade | ||||||
4 | names, trademarks, service marks, copyrights, mask | ||||||
5 | works, trade secrets, and similar types of intangible | ||||||
6 | assets. | ||||||
7 | This paragraph shall not apply to the following: | ||||||
8 | (i) any item of intangible expenses or costs | ||||||
9 | paid, accrued, or incurred, directly or | ||||||
10 | indirectly, from a transaction with a person who is | ||||||
11 | subject in a foreign country or state, other than a | ||||||
12 | state which requires mandatory unitary reporting, | ||||||
13 | to a tax on or measured by net income with respect | ||||||
14 | to such item; or | ||||||
15 | (ii) any item of intangible expense or cost | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, if the taxpayer can establish, based | ||||||
18 | on a preponderance of the evidence, both of the | ||||||
19 | following: | ||||||
20 | (a) the person during the same taxable | ||||||
21 | year paid, accrued, or incurred, the | ||||||
22 | intangible expense or cost to a person that is | ||||||
23 | not a related member, and | ||||||
24 | (b) the transaction giving rise to the | ||||||
25 | intangible expense or cost between the | ||||||
26 | taxpayer and the person did not have as a |
| |||||||
| |||||||
1 | principal purpose the avoidance of Illinois | ||||||
2 | income tax, and is paid pursuant to a contract | ||||||
3 | or agreement that reflects arm's-length terms; | ||||||
4 | or | ||||||
5 | (iii) any item of intangible expense or cost | ||||||
6 | paid, accrued, or incurred, directly or | ||||||
7 | indirectly, from a transaction with a person if the | ||||||
8 | taxpayer establishes by clear and convincing | ||||||
9 | evidence, that the adjustments are unreasonable; | ||||||
10 | or if the taxpayer and the Director agree in | ||||||
11 | writing to the application or use of an alternative | ||||||
12 | method of apportionment under Section 304(f);
| ||||||
13 | Nothing in this subsection shall preclude the | ||||||
14 | Director from making any other adjustment | ||||||
15 | otherwise allowed under Section 404 of this Act for | ||||||
16 | any tax year beginning after the effective date of | ||||||
17 | this amendment provided such adjustment is made | ||||||
18 | pursuant to regulation adopted by the Department | ||||||
19 | and such regulations provide methods and standards | ||||||
20 | by which the Department will utilize its authority | ||||||
21 | under Section 404 of this Act;
| ||||||
22 | (D-19) For taxable years ending on or after | ||||||
23 | December 31, 2008, an amount equal to the amount of | ||||||
24 | insurance premium expenses and costs otherwise allowed | ||||||
25 | as a deduction in computing base income, and that were | ||||||
26 | paid, accrued, or incurred, directly or indirectly, to |
| |||||||
| |||||||
1 | a person who would be a member of the same unitary | ||||||
2 | business group but for the fact that the person is | ||||||
3 | prohibited under Section 1501(a)(27) from being | ||||||
4 | included in the unitary business group because he or | ||||||
5 | she is ordinarily required to apportion business | ||||||
6 | income under different subsections of Section 304. The | ||||||
7 | addition modification required by this subparagraph | ||||||
8 | shall be reduced to the extent that dividends were | ||||||
9 | included in base income of the unitary group for the | ||||||
10 | same taxable year and received by the taxpayer or by a | ||||||
11 | member of the taxpayer's unitary business group | ||||||
12 | (including amounts included in gross income under | ||||||
13 | Sections 951 through 964 of the Internal Revenue Code | ||||||
14 | and amounts included in gross income under Section 78 | ||||||
15 | of the Internal Revenue Code) with respect to the stock | ||||||
16 | of the same person to whom the premiums and costs were | ||||||
17 | directly or indirectly paid, incurred, or accrued. The | ||||||
18 | preceding sentence does not apply to the extent that | ||||||
19 | the same dividends caused a reduction to the addition | ||||||
20 | modification required under Section 203(a)(2)(D-17) or | ||||||
21 | Section 203(a)(2)(D-18) of this Act.
| ||||||
22 | (D-20) For taxable years beginning on or after | ||||||
23 | January 1,
2002 and ending on or before December 31, | ||||||
24 | 2006, in
the
case of a distribution from a qualified | ||||||
25 | tuition program under Section 529 of
the Internal | ||||||
26 | Revenue Code, other than (i) a distribution from a |
| |||||||
| |||||||
1 | College Savings
Pool created under Section 16.5 of the | ||||||
2 | State Treasurer Act or (ii) a
distribution from the | ||||||
3 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
4 | the amount excluded from gross income under Section | ||||||
5 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
6 | January 1, 2007, in the case of a distribution from a | ||||||
7 | qualified tuition program under Section 529 of the | ||||||
8 | Internal Revenue Code, other than (i) a distribution | ||||||
9 | from a College Savings Pool created under Section 16.5 | ||||||
10 | of the State Treasurer Act, (ii) a distribution from | ||||||
11 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
12 | distribution from a qualified tuition program under | ||||||
13 | Section 529 of the Internal Revenue Code that (I) | ||||||
14 | adopts and determines that its offering materials | ||||||
15 | comply with the College Savings Plans Network's | ||||||
16 | disclosure principles and (II) has made reasonable | ||||||
17 | efforts to inform in-state residents of the existence | ||||||
18 | of in-state qualified tuition programs by informing | ||||||
19 | Illinois residents directly and, where applicable, to | ||||||
20 | inform financial intermediaries distributing the | ||||||
21 | program to inform in-state residents of the existence | ||||||
22 | of in-state qualified tuition programs at least | ||||||
23 | annually, an amount equal to the amount excluded from | ||||||
24 | gross income under Section 529(c)(3)(B). | ||||||
25 | For the purposes of this subparagraph (D-20), a | ||||||
26 | qualified tuition program has made reasonable efforts |
| |||||||
| |||||||
1 | if it makes disclosures (which may use the term | ||||||
2 | "in-state program" or "in-state plan" and need not | ||||||
3 | specifically refer to Illinois or its qualified | ||||||
4 | programs by name) (i) directly to prospective | ||||||
5 | participants in its offering materials or makes a | ||||||
6 | public disclosure, such as a website posting; and (ii) | ||||||
7 | where applicable, to intermediaries selling the | ||||||
8 | out-of-state program in the same manner that the | ||||||
9 | out-of-state program distributes its offering | ||||||
10 | materials; | ||||||
11 | (D-21) For taxable years beginning on or after | ||||||
12 | January 1, 2007, in the case of transfer of moneys from | ||||||
13 | a qualified tuition program under Section 529 of the | ||||||
14 | Internal Revenue Code that is administered by the State | ||||||
15 | to an out-of-state program, an amount equal to the | ||||||
16 | amount of moneys previously deducted from base income | ||||||
17 | under subsection (a)(2)(Y) of this Section; | ||||||
18 | (D-22) For taxable years beginning on or after | ||||||
19 | January 1, 2009, in the case of a nonqualified | ||||||
20 | withdrawal or refund of moneys from a qualified tuition | ||||||
21 | program under Section 529 of the Internal Revenue Code | ||||||
22 | administered by the State that is not used for | ||||||
23 | qualified expenses at an eligible education | ||||||
24 | institution, an amount equal to the contribution | ||||||
25 | component of the nonqualified withdrawal or refund | ||||||
26 | that was previously deducted from base income under |
| |||||||
| |||||||
1 | subsection (a)(2)(y) of this Section, provided that | ||||||
2 | the withdrawal or refund did not result from the | ||||||
3 | beneficiary's death or disability; | ||||||
4 | (D-23) An amount equal to the credit allowable to | ||||||
5 | the taxpayer under Section 218(a) of this Act, | ||||||
6 | determined without regard to Section 218(c) of this | ||||||
7 | Act; | ||||||
8 | (D-24) For taxable years beginning on or after | ||||||
9 | January 1, 2017, an amount equal to the deduction | ||||||
10 | allowed under Section 199 of the Internal Revenue Code | ||||||
11 | for the taxable year; | ||||||
12 | and by deducting from the total so obtained the
sum of the | ||||||
13 | following amounts: | ||||||
14 | (E) For taxable years ending before December 31, | ||||||
15 | 2001,
any amount included in such total in respect of | ||||||
16 | any compensation
(including but not limited to any | ||||||
17 | compensation paid or accrued to a
serviceman while a | ||||||
18 | prisoner of war or missing in action) paid to a | ||||||
19 | resident
by reason of being on active duty in the Armed | ||||||
20 | Forces of the United States
and in respect of any | ||||||
21 | compensation paid or accrued to a resident who as a
| ||||||
22 | governmental employee was a prisoner of war or missing | ||||||
23 | in action, and in
respect of any compensation paid to a | ||||||
24 | resident in 1971 or thereafter for
annual training | ||||||
25 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
26 | United States Code as a member of the Illinois National |
| |||||||
| |||||||
1 | Guard or, beginning with taxable years ending on or | ||||||
2 | after December 31, 2007, the National Guard of any | ||||||
3 | other state.
For taxable years ending on or after | ||||||
4 | December 31, 2001, any amount included in
such total in | ||||||
5 | respect of any compensation (including but not limited | ||||||
6 | to any
compensation paid or accrued to a serviceman | ||||||
7 | while a prisoner of war or missing
in action) paid to a | ||||||
8 | resident by reason of being a member of any component | ||||||
9 | of
the Armed Forces of the United States and in respect | ||||||
10 | of any compensation paid
or accrued to a resident who | ||||||
11 | as a governmental employee was a prisoner of war
or | ||||||
12 | missing in action, and in respect of any compensation | ||||||
13 | paid to a resident in
2001 or thereafter by reason of | ||||||
14 | being a member of the Illinois National Guard or, | ||||||
15 | beginning with taxable years ending on or after | ||||||
16 | December 31, 2007, the National Guard of any other | ||||||
17 | state.
The provisions of this subparagraph (E) are | ||||||
18 | exempt
from the provisions of Section 250; | ||||||
19 | (F) An amount equal to all amounts included in such | ||||||
20 | total pursuant
to the provisions of Sections 402(a), | ||||||
21 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
22 | Internal Revenue Code, or included in such total as
| ||||||
23 | distributions under the provisions of any retirement | ||||||
24 | or disability plan for
employees of any governmental | ||||||
25 | agency or unit, or retirement payments to
retired | ||||||
26 | partners, which payments are excluded in computing net |
| |||||||
| |||||||
1 | earnings
from self employment by Section 1402 of the | ||||||
2 | Internal Revenue Code and
regulations adopted pursuant | ||||||
3 | thereto; | ||||||
4 | (G) The valuation limitation amount; | ||||||
5 | (H) An amount equal to the amount of any tax | ||||||
6 | imposed by this Act
which was refunded to the taxpayer | ||||||
7 | and included in such total for the
taxable year; | ||||||
8 | (I) An amount equal to all amounts included in such | ||||||
9 | total pursuant
to the provisions of Section 111 of the | ||||||
10 | Internal Revenue Code as a
recovery of items previously | ||||||
11 | deducted from adjusted gross income in the
computation | ||||||
12 | of taxable income; | ||||||
13 | (J) An amount equal to those dividends included in | ||||||
14 | such total which were
paid by a corporation which | ||||||
15 | conducts business operations in a River Edge | ||||||
16 | Redevelopment Zone or zones created under the River | ||||||
17 | Edge Redevelopment Zone Act, and conducts
| ||||||
18 | substantially all of its operations in a River Edge | ||||||
19 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
20 | exempt from the provisions of Section 250; | ||||||
21 | (K) An amount equal to those dividends included in | ||||||
22 | such total that
were paid by a corporation that | ||||||
23 | conducts business operations in a federally
designated | ||||||
24 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
25 | High Impact
Business located in Illinois; provided | ||||||
26 | that dividends eligible for the
deduction provided in |
| |||||||
| |||||||
1 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
2 | shall not be eligible for the deduction provided under | ||||||
3 | this subparagraph
(K); | ||||||
4 | (L) For taxable years ending after December 31, | ||||||
5 | 1983, an amount equal to
all social security benefits | ||||||
6 | and railroad retirement benefits included in
such | ||||||
7 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
8 | Revenue Code; | ||||||
9 | (M) With the exception of any amounts subtracted | ||||||
10 | under subparagraph
(N), an amount equal to the sum of | ||||||
11 | all amounts disallowed as
deductions by (i) Sections | ||||||
12 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
13 | and all amounts of expenses allocable
to interest and | ||||||
14 | disallowed as deductions by Section 265(1) of the | ||||||
15 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
16 | ending on or after August 13, 1999, Sections 171(a)(2), | ||||||
17 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
18 | Code, plus, for taxable years ending on or after | ||||||
19 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
20 | Revenue Code and, for taxable years ending on or after | ||||||
21 | December 31, 2008, any amount included in gross income | ||||||
22 | under Section 87 of the Internal Revenue Code; the | ||||||
23 | provisions of this
subparagraph are exempt from the | ||||||
24 | provisions of Section 250; | ||||||
25 | (N) An amount equal to all amounts included in such | ||||||
26 | total which are
exempt from taxation by this State |
| |||||||
| |||||||
1 | either by reason of its statutes or
Constitution
or by | ||||||
2 | reason of the Constitution, treaties or statutes of the | ||||||
3 | United States;
provided that, in the case of any | ||||||
4 | statute of this State that exempts income
derived from | ||||||
5 | bonds or other obligations from the tax imposed under | ||||||
6 | this Act,
the amount exempted shall be the interest net | ||||||
7 | of bond premium amortization; | ||||||
8 | (O) An amount equal to any contribution made to a | ||||||
9 | job training
project established pursuant to the Tax | ||||||
10 | Increment Allocation Redevelopment Act; | ||||||
11 | (P) An amount equal to the amount of the deduction | ||||||
12 | used to compute the
federal income tax credit for | ||||||
13 | restoration of substantial amounts held under
claim of | ||||||
14 | right for the taxable year pursuant to Section 1341 of | ||||||
15 | the
Internal Revenue Code or of any itemized deduction | ||||||
16 | taken from adjusted gross income in the computation of | ||||||
17 | taxable income for restoration of substantial amounts | ||||||
18 | held under claim of right for the taxable year; | ||||||
19 | (Q) An amount equal to any amounts included in such | ||||||
20 | total, received by
the taxpayer as an acceleration in | ||||||
21 | the payment of life, endowment or annuity
benefits in | ||||||
22 | advance of the time they would otherwise be payable as | ||||||
23 | an indemnity
for a terminal illness; | ||||||
24 | (R) An amount equal to the amount of any federal or | ||||||
25 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
26 | (S) An amount, to the extent included in adjusted |
| |||||||
| |||||||
1 | gross income, equal
to the amount of a contribution | ||||||
2 | made in the taxable year on behalf of the
taxpayer to a | ||||||
3 | medical care savings account established under the | ||||||
4 | Medical Care
Savings Account Act or the Medical Care | ||||||
5 | Savings Account Act of 2000 to the
extent the | ||||||
6 | contribution is accepted by the account
administrator | ||||||
7 | as provided in that Act; | ||||||
8 | (T) An amount, to the extent included in adjusted | ||||||
9 | gross income, equal to
the amount of interest earned in | ||||||
10 | the taxable year on a medical care savings
account | ||||||
11 | established under the Medical Care Savings Account Act | ||||||
12 | or the Medical
Care Savings Account Act of 2000 on | ||||||
13 | behalf of the
taxpayer, other than interest added | ||||||
14 | pursuant to item (D-5) of this paragraph
(2); | ||||||
15 | (U) For one taxable year beginning on or after | ||||||
16 | January 1,
1994, an
amount equal to the total amount of | ||||||
17 | tax imposed and paid under subsections (a)
and (b) of | ||||||
18 | Section 201 of this Act on grant amounts received by | ||||||
19 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
20 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
21 | (V) Beginning with tax years ending on or after | ||||||
22 | December 31, 1995 and
ending with tax years ending on | ||||||
23 | or before December 31, 2004, an amount equal to
the | ||||||
24 | amount paid by a taxpayer who is a
self-employed | ||||||
25 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
26 | in a Subchapter S corporation for health insurance or |
| |||||||
| |||||||
1 | long-term
care insurance for that taxpayer or that | ||||||
2 | taxpayer's spouse or dependents, to
the extent that the | ||||||
3 | amount paid for that health insurance or long-term care
| ||||||
4 | insurance may be deducted under Section 213 of the | ||||||
5 | Internal Revenue Code, has not been deducted on the | ||||||
6 | federal income tax return of the taxpayer,
and does not | ||||||
7 | exceed the taxable income attributable to that | ||||||
8 | taxpayer's income,
self-employment income, or | ||||||
9 | Subchapter S corporation income; except that no
| ||||||
10 | deduction shall be allowed under this item (V) if the | ||||||
11 | taxpayer is eligible to
participate in any health | ||||||
12 | insurance or long-term care insurance plan of an
| ||||||
13 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
14 | amount of the health insurance and long-term care | ||||||
15 | insurance
subtracted under this item (V) shall be | ||||||
16 | determined by multiplying total
health insurance and | ||||||
17 | long-term care insurance premiums paid by the taxpayer
| ||||||
18 | times a number that represents the fractional | ||||||
19 | percentage of eligible medical
expenses under Section | ||||||
20 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
21 | deducted on the taxpayer's federal income tax return; | ||||||
22 | (W) For taxable years beginning on or after January | ||||||
23 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
24 | gross income
in the taxable year from amounts converted | ||||||
25 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
26 | exempt from the provisions of Section
250; |
| |||||||
| |||||||
1 | (X) For taxable year 1999 and thereafter, an amount | ||||||
2 | equal to the
amount of any (i) distributions, to the | ||||||
3 | extent includible in gross income for
federal income | ||||||
4 | tax purposes, made to the taxpayer because of his or | ||||||
5 | her status
as a victim of persecution for racial or | ||||||
6 | religious reasons by Nazi Germany or
any other Axis | ||||||
7 | regime or as an heir of the victim and (ii) items
of | ||||||
8 | income, to the extent
includible in gross income for | ||||||
9 | federal income tax purposes, attributable to,
derived | ||||||
10 | from or in any way related to assets stolen from, | ||||||
11 | hidden from, or
otherwise lost to a victim of
| ||||||
12 | persecution for racial or religious reasons by Nazi | ||||||
13 | Germany or any other Axis
regime immediately prior to, | ||||||
14 | during, and immediately after World War II,
including, | ||||||
15 | but
not limited to, interest on the proceeds receivable | ||||||
16 | as insurance
under policies issued to a victim of | ||||||
17 | persecution for racial or religious
reasons
by Nazi | ||||||
18 | Germany or any other Axis regime by European insurance | ||||||
19 | companies
immediately prior to and during World War II;
| ||||||
20 | provided, however, this subtraction from federal | ||||||
21 | adjusted gross income does not
apply to assets acquired | ||||||
22 | with such assets or with the proceeds from the sale of
| ||||||
23 | such assets; provided, further, this paragraph shall | ||||||
24 | only apply to a taxpayer
who was the first recipient of | ||||||
25 | such assets after their recovery and who is a
victim of | ||||||
26 | persecution for racial or religious reasons
by Nazi |
| |||||||
| |||||||
1 | Germany or any other Axis regime or as an heir of the | ||||||
2 | victim. The
amount of and the eligibility for any | ||||||
3 | public assistance, benefit, or
similar entitlement is | ||||||
4 | not affected by the inclusion of items (i) and (ii) of
| ||||||
5 | this paragraph in gross income for federal income tax | ||||||
6 | purposes.
This paragraph is exempt from the provisions | ||||||
7 | of Section 250; | ||||||
8 | (Y) For taxable years beginning on or after January | ||||||
9 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
10 | moneys contributed in the taxable year to a College | ||||||
11 | Savings Pool account under
Section 16.5 of the State | ||||||
12 | Treasurer Act, except that amounts excluded from
gross | ||||||
13 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
14 | Revenue Code
shall not be considered moneys | ||||||
15 | contributed under this subparagraph (Y). For taxable | ||||||
16 | years beginning on or after January 1, 2005, a maximum | ||||||
17 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
18 | College Savings Pool account under Section 16.5 of the
| ||||||
19 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
20 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
21 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
22 | Internal
Revenue Code shall not be considered moneys | ||||||
23 | contributed under this subparagraph
(Y). For purposes | ||||||
24 | of this subparagraph, contributions made by an | ||||||
25 | employer on behalf of an employee, or matching | ||||||
26 | contributions made by an employee, shall be treated as |
| |||||||
| |||||||
1 | made by the employee. This
subparagraph (Y) is exempt | ||||||
2 | from the provisions of Section 250; | ||||||
3 | (Z) For taxable years 2001 and thereafter, for the | ||||||
4 | taxable year in
which the bonus depreciation deduction
| ||||||
5 | is taken on the taxpayer's federal income tax return | ||||||
6 | under
subsection (k) of Section 168 of the Internal | ||||||
7 | Revenue Code and for each
applicable taxable year | ||||||
8 | thereafter, an amount equal to "x", where: | ||||||
9 | (1) "y" equals the amount of the depreciation | ||||||
10 | deduction taken for the
taxable year
on the | ||||||
11 | taxpayer's federal income tax return on property | ||||||
12 | for which the bonus
depreciation deduction
was | ||||||
13 | taken in any year under subsection (k) of Section | ||||||
14 | 168 of the Internal
Revenue Code, but not including | ||||||
15 | the bonus depreciation deduction; | ||||||
16 | (2) for taxable years ending on or before | ||||||
17 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
18 | and then divided by 70 (or "y"
multiplied by | ||||||
19 | 0.429); and | ||||||
20 | (3) for taxable years ending after December | ||||||
21 | 31, 2005: | ||||||
22 | (i) for property on which a bonus | ||||||
23 | depreciation deduction of 30% of the adjusted | ||||||
24 | basis was taken, "x" equals "y" multiplied by | ||||||
25 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
26 | 0.429); and |
| |||||||
| |||||||
1 | (ii) for property on which a bonus | ||||||
2 | depreciation deduction of 50% of the adjusted | ||||||
3 | basis was taken, "x" equals "y" multiplied by | ||||||
4 | 1.0. | ||||||
5 | The aggregate amount deducted under this | ||||||
6 | subparagraph in all taxable
years for any one piece of | ||||||
7 | property may not exceed the amount of the bonus
| ||||||
8 | depreciation deduction
taken on that property on the | ||||||
9 | taxpayer's federal income tax return under
subsection | ||||||
10 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
11 | subparagraph (Z) is exempt from the provisions of | ||||||
12 | Section 250; | ||||||
13 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
14 | or otherwise disposes of
property for which the | ||||||
15 | taxpayer was required in any taxable year to make an
| ||||||
16 | addition modification under subparagraph (D-15), then | ||||||
17 | an amount equal to that
addition modification.
| ||||||
18 | If the taxpayer continues to own property through | ||||||
19 | the last day of the last tax year for which the | ||||||
20 | taxpayer may claim a depreciation deduction for | ||||||
21 | federal income tax purposes and for which the taxpayer | ||||||
22 | was required in any taxable year to make an addition | ||||||
23 | modification under subparagraph (D-15), then an amount | ||||||
24 | equal to that addition modification.
| ||||||
25 | The taxpayer is allowed to take the deduction under | ||||||
26 | this subparagraph
only once with respect to any one |
| |||||||
| |||||||
1 | piece of property. | ||||||
2 | This subparagraph (AA) is exempt from the | ||||||
3 | provisions of Section 250; | ||||||
4 | (BB) Any amount included in adjusted gross income, | ||||||
5 | other
than
salary,
received by a driver in a | ||||||
6 | ridesharing arrangement using a motor vehicle; | ||||||
7 | (CC) The amount of (i) any interest income (net of | ||||||
8 | the deductions allocable thereto) taken into account | ||||||
9 | for the taxable year with respect to a transaction with | ||||||
10 | a taxpayer that is required to make an addition | ||||||
11 | modification with respect to such transaction under | ||||||
12 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
13 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
14 | the amount of that addition modification, and
(ii) any | ||||||
15 | income from intangible property (net of the deductions | ||||||
16 | allocable thereto) taken into account for the taxable | ||||||
17 | year with respect to a transaction with a taxpayer that | ||||||
18 | is required to make an addition modification with | ||||||
19 | respect to such transaction under Section | ||||||
20 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
21 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
22 | addition modification. This subparagraph (CC) is | ||||||
23 | exempt from the provisions of Section 250; | ||||||
24 | (DD) An amount equal to the interest income taken | ||||||
25 | into account for the taxable year (net of the | ||||||
26 | deductions allocable thereto) with respect to |
| |||||||
| |||||||
1 | transactions with (i) a foreign person who would be a | ||||||
2 | member of the taxpayer's unitary business group but for | ||||||
3 | the fact that the foreign person's business activity | ||||||
4 | outside the United States is 80% or more of that | ||||||
5 | person's total business activity and (ii) for taxable | ||||||
6 | years ending on or after December 31, 2008, to a person | ||||||
7 | who would be a member of the same unitary business | ||||||
8 | group but for the fact that the person is prohibited | ||||||
9 | under Section 1501(a)(27) from being included in the | ||||||
10 | unitary business group because he or she is ordinarily | ||||||
11 | required to apportion business income under different | ||||||
12 | subsections of Section 304, but not to exceed the | ||||||
13 | addition modification required to be made for the same | ||||||
14 | taxable year under Section 203(a)(2)(D-17) for | ||||||
15 | interest paid, accrued, or incurred, directly or | ||||||
16 | indirectly, to the same person. This subparagraph (DD) | ||||||
17 | is exempt from the provisions of Section 250; | ||||||
18 | (EE) An amount equal to the income from intangible | ||||||
19 | property taken into account for the taxable year (net | ||||||
20 | of the deductions allocable thereto) with respect to | ||||||
21 | transactions with (i) a foreign person who would be a | ||||||
22 | member of the taxpayer's unitary business group but for | ||||||
23 | the fact that the foreign person's business activity | ||||||
24 | outside the United States is 80% or more of that | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
1 | who would be a member of the same unitary business | ||||||
2 | group but for the fact that the person is prohibited | ||||||
3 | under Section 1501(a)(27) from being included in the | ||||||
4 | unitary business group because he or she is ordinarily | ||||||
5 | required to apportion business income under different | ||||||
6 | subsections of Section 304, but not to exceed the | ||||||
7 | addition modification required to be made for the same | ||||||
8 | taxable year under Section 203(a)(2)(D-18) for | ||||||
9 | intangible expenses and costs paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to the same foreign | ||||||
11 | person. This subparagraph (EE) is exempt from the | ||||||
12 | provisions of Section 250; | ||||||
13 | (FF) An amount equal to any amount awarded to the | ||||||
14 | taxpayer during the taxable year by the Court of Claims | ||||||
15 | under subsection (c) of Section 8 of the Court of | ||||||
16 | Claims Act for time unjustly served in a State prison. | ||||||
17 | This subparagraph (FF) is exempt from the provisions of | ||||||
18 | Section 250; and | ||||||
19 | (GG) For taxable years ending on or after December | ||||||
20 | 31, 2011, in the case of a taxpayer who was required to | ||||||
21 | add back any insurance premiums under Section | ||||||
22 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
23 | that part of a reimbursement received from the | ||||||
24 | insurance company equal to the amount of the expense or | ||||||
25 | loss (including expenses incurred by the insurance | ||||||
26 | company) that would have been taken into account as a |
| |||||||
| |||||||
1 | deduction for federal income tax purposes if the | ||||||
2 | expense or loss had been uninsured. If a taxpayer makes | ||||||
3 | the election provided for by this subparagraph (GG), | ||||||
4 | the insurer to which the premiums were paid must add | ||||||
5 | back to income the amount subtracted by the taxpayer | ||||||
6 | pursuant to this subparagraph (GG). This subparagraph | ||||||
7 | (GG) is exempt from the provisions of Section 250.
| ||||||
8 | (b) Corporations. | ||||||
9 | (1) In general. In the case of a corporation, base | ||||||
10 | income means an
amount equal to the taxpayer's taxable | ||||||
11 | income for the taxable year as
modified by paragraph (2). | ||||||
12 | (2) Modifications. The taxable income referred to in | ||||||
13 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
14 | of the following amounts: | ||||||
15 | (A) An amount equal to all amounts paid or accrued | ||||||
16 | to the taxpayer
as interest and all distributions | ||||||
17 | received from regulated investment
companies during | ||||||
18 | the taxable year to the extent excluded from gross
| ||||||
19 | income in the computation of taxable income; | ||||||
20 | (B) An amount equal to the amount of tax imposed by | ||||||
21 | this Act to the
extent deducted from gross income in | ||||||
22 | the computation of taxable income
for the taxable year; | ||||||
23 | (C) In the case of a regulated investment company, | ||||||
24 | an amount equal to
the excess of (i) the net long-term | ||||||
25 | capital gain for the taxable year, over
(ii) the amount |
| |||||||
| |||||||
1 | of the capital gain dividends designated as such in | ||||||
2 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
3 | Revenue Code and any amount
designated under Section | ||||||
4 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
5 | attributable to the taxable year (this amendatory Act | ||||||
6 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
7 | law and is not a new
enactment); | ||||||
8 | (D) The amount of any net operating loss deduction | ||||||
9 | taken in arriving
at taxable income, other than a net | ||||||
10 | operating loss carried forward from a
taxable year | ||||||
11 | ending prior to December 31, 1986; | ||||||
12 | (E) For taxable years in which a net operating loss | ||||||
13 | carryback or
carryforward from a taxable year ending | ||||||
14 | prior to December 31, 1986 is an
element of taxable | ||||||
15 | income under paragraph (1) of subsection (e) or
| ||||||
16 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
17 | the amount by which
addition modifications other than | ||||||
18 | those provided by this subparagraph (E)
exceeded | ||||||
19 | subtraction modifications in such earlier taxable | ||||||
20 | year, with the
following limitations applied in the | ||||||
21 | order that they are listed: | ||||||
22 | (i) the addition modification relating to the | ||||||
23 | net operating loss
carried back or forward to the | ||||||
24 | taxable year from any taxable year ending
prior to | ||||||
25 | December 31, 1986 shall be reduced by the amount of | ||||||
26 | addition
modification under this subparagraph (E) |
| |||||||
| |||||||
1 | which related to that net operating
loss and which | ||||||
2 | was taken into account in calculating the base | ||||||
3 | income of an
earlier taxable year, and | ||||||
4 | (ii) the addition modification relating to the | ||||||
5 | net operating loss
carried back or forward to the | ||||||
6 | taxable year from any taxable year ending
prior to | ||||||
7 | December 31, 1986 shall not exceed the amount of | ||||||
8 | such carryback or
carryforward; | ||||||
9 | For taxable years in which there is a net operating | ||||||
10 | loss carryback or
carryforward from more than one other | ||||||
11 | taxable year ending prior to December
31, 1986, the | ||||||
12 | addition modification provided in this subparagraph | ||||||
13 | (E) shall
be the sum of the amounts computed | ||||||
14 | independently under the preceding
provisions of this | ||||||
15 | subparagraph (E) for each such taxable year; | ||||||
16 | (E-5) For taxable years ending after December 31, | ||||||
17 | 1997, an
amount equal to any eligible remediation costs | ||||||
18 | that the corporation
deducted in computing adjusted | ||||||
19 | gross income and for which the
corporation claims a | ||||||
20 | credit under subsection (l) of Section 201; | ||||||
21 | (E-10) For taxable years 2001 and thereafter, an | ||||||
22 | amount equal to the
bonus depreciation deduction taken | ||||||
23 | on the taxpayer's federal income tax return for the | ||||||
24 | taxable
year under subsection (k) of Section 168 of the | ||||||
25 | Internal Revenue Code; | ||||||
26 | (E-11) If the taxpayer sells, transfers, abandons, |
| |||||||
| |||||||
1 | or otherwise disposes of property for which the | ||||||
2 | taxpayer was required in any taxable year to
make an | ||||||
3 | addition modification under subparagraph (E-10), then | ||||||
4 | an amount equal
to the aggregate amount of the | ||||||
5 | deductions taken in all taxable
years under | ||||||
6 | subparagraph (T) with respect to that property. | ||||||
7 | If the taxpayer continues to own property through | ||||||
8 | the last day of the last tax year for which the | ||||||
9 | taxpayer may claim a depreciation deduction for | ||||||
10 | federal income tax purposes and for which the taxpayer | ||||||
11 | was allowed in any taxable year to make a subtraction | ||||||
12 | modification under subparagraph (T), then an amount | ||||||
13 | equal to that subtraction modification.
| ||||||
14 | The taxpayer is required to make the addition | ||||||
15 | modification under this
subparagraph
only once with | ||||||
16 | respect to any one piece of property; | ||||||
17 | (E-12) An amount equal to the amount otherwise | ||||||
18 | allowed as a deduction in computing base income for | ||||||
19 | interest paid, accrued, or incurred, directly or | ||||||
20 | indirectly, (i) for taxable years ending on or after | ||||||
21 | December 31, 2004, to a foreign person who would be a | ||||||
22 | member of the same unitary business group but for the | ||||||
23 | fact the foreign person's business activity outside | ||||||
24 | the United States is 80% or more of the foreign | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
1 | who would be a member of the same unitary business | ||||||
2 | group but for the fact that the person is prohibited | ||||||
3 | under Section 1501(a)(27) from being included in the | ||||||
4 | unitary business group because he or she is ordinarily | ||||||
5 | required to apportion business income under different | ||||||
6 | subsections of Section 304. The addition modification | ||||||
7 | required by this subparagraph shall be reduced to the | ||||||
8 | extent that dividends were included in base income of | ||||||
9 | the unitary group for the same taxable year and | ||||||
10 | received by the taxpayer or by a member of the | ||||||
11 | taxpayer's unitary business group (including amounts | ||||||
12 | included in gross income pursuant to Sections 951 | ||||||
13 | through 964 of the Internal Revenue Code and amounts | ||||||
14 | included in gross income under Section 78 of the | ||||||
15 | Internal Revenue Code) with respect to the stock of the | ||||||
16 | same person to whom the interest was paid, accrued, or | ||||||
17 | incurred.
| ||||||
18 | This paragraph shall not apply to the following:
| ||||||
19 | (i) an item of interest paid, accrued, or | ||||||
20 | incurred, directly or indirectly, to a person who | ||||||
21 | is subject in a foreign country or state, other | ||||||
22 | than a state which requires mandatory unitary | ||||||
23 | reporting, to a tax on or measured by net income | ||||||
24 | with respect to such interest; or | ||||||
25 | (ii) an item of interest paid, accrued, or | ||||||
26 | incurred, directly or indirectly, to a person if |
| |||||||
| |||||||
1 | the taxpayer can establish, based on a | ||||||
2 | preponderance of the evidence, both of the | ||||||
3 | following: | ||||||
4 | (a) the person, during the same taxable | ||||||
5 | year, paid, accrued, or incurred, the interest | ||||||
6 | to a person that is not a related member, and | ||||||
7 | (b) the transaction giving rise to the | ||||||
8 | interest expense between the taxpayer and the | ||||||
9 | person did not have as a principal purpose the | ||||||
10 | avoidance of Illinois income tax, and is paid | ||||||
11 | pursuant to a contract or agreement that | ||||||
12 | reflects an arm's-length interest rate and | ||||||
13 | terms; or
| ||||||
14 | (iii) the taxpayer can establish, based on | ||||||
15 | clear and convincing evidence, that the interest | ||||||
16 | paid, accrued, or incurred relates to a contract or | ||||||
17 | agreement entered into at arm's-length rates and | ||||||
18 | terms and the principal purpose for the payment is | ||||||
19 | not federal or Illinois tax avoidance; or
| ||||||
20 | (iv) an item of interest paid, accrued, or | ||||||
21 | incurred, directly or indirectly, to a person if | ||||||
22 | the taxpayer establishes by clear and convincing | ||||||
23 | evidence that the adjustments are unreasonable; or | ||||||
24 | if the taxpayer and the Director agree in writing | ||||||
25 | to the application or use of an alternative method | ||||||
26 | of apportionment under Section 304(f).
|
| |||||||
| |||||||
1 | Nothing in this subsection shall preclude the | ||||||
2 | Director from making any other adjustment | ||||||
3 | otherwise allowed under Section 404 of this Act for | ||||||
4 | any tax year beginning after the effective date of | ||||||
5 | this amendment provided such adjustment is made | ||||||
6 | pursuant to regulation adopted by the Department | ||||||
7 | and such regulations provide methods and standards | ||||||
8 | by which the Department will utilize its authority | ||||||
9 | under Section 404 of this Act;
| ||||||
10 | (E-13) An amount equal to the amount of intangible | ||||||
11 | expenses and costs otherwise allowed as a deduction in | ||||||
12 | computing base income, and that were paid, accrued, or | ||||||
13 | incurred, directly or indirectly, (i) for taxable | ||||||
14 | years ending on or after December 31, 2004, to a | ||||||
15 | foreign person who would be a member of the same | ||||||
16 | unitary business group but for the fact that the | ||||||
17 | foreign person's business activity outside the United | ||||||
18 | States is 80% or more of that person's total business | ||||||
19 | activity and (ii) for taxable years ending on or after | ||||||
20 | December 31, 2008, to a person who would be a member of | ||||||
21 | the same unitary business group but for the fact that | ||||||
22 | the person is prohibited under Section 1501(a)(27) | ||||||
23 | from being included in the unitary business group | ||||||
24 | because he or she is ordinarily required to apportion | ||||||
25 | business income under different subsections of Section | ||||||
26 | 304. The addition modification required by this |
| |||||||
| |||||||
1 | subparagraph shall be reduced to the extent that | ||||||
2 | dividends were included in base income of the unitary | ||||||
3 | group for the same taxable year and received by the | ||||||
4 | taxpayer or by a member of the taxpayer's unitary | ||||||
5 | business group (including amounts included in gross | ||||||
6 | income pursuant to Sections 951 through 964 of the | ||||||
7 | Internal Revenue Code and amounts included in gross | ||||||
8 | income under Section 78 of the Internal Revenue Code) | ||||||
9 | with respect to the stock of the same person to whom | ||||||
10 | the intangible expenses and costs were directly or | ||||||
11 | indirectly paid, incurred, or accrued. The preceding | ||||||
12 | sentence shall not apply to the extent that the same | ||||||
13 | dividends caused a reduction to the addition | ||||||
14 | modification required under Section 203(b)(2)(E-12) of | ||||||
15 | this Act.
As used in this subparagraph, the term | ||||||
16 | "intangible expenses and costs" includes (1) expenses, | ||||||
17 | losses, and costs for, or related to, the direct or | ||||||
18 | indirect acquisition, use, maintenance or management, | ||||||
19 | ownership, sale, exchange, or any other disposition of | ||||||
20 | intangible property; (2) losses incurred, directly or | ||||||
21 | indirectly, from factoring transactions or discounting | ||||||
22 | transactions; (3) royalty, patent, technical, and | ||||||
23 | copyright fees; (4) licensing fees; and (5) other | ||||||
24 | similar expenses and costs.
For purposes of this | ||||||
25 | subparagraph, "intangible property" includes patents, | ||||||
26 | patent applications, trade names, trademarks, service |
| |||||||
| |||||||
1 | marks, copyrights, mask works, trade secrets, and | ||||||
2 | similar types of intangible assets. | ||||||
3 | This paragraph shall not apply to the following: | ||||||
4 | (i) any item of intangible expenses or costs | ||||||
5 | paid, accrued, or incurred, directly or | ||||||
6 | indirectly, from a transaction with a person who is | ||||||
7 | subject in a foreign country or state, other than a | ||||||
8 | state which requires mandatory unitary reporting, | ||||||
9 | to a tax on or measured by net income with respect | ||||||
10 | to such item; or | ||||||
11 | (ii) any item of intangible expense or cost | ||||||
12 | paid, accrued, or incurred, directly or | ||||||
13 | indirectly, if the taxpayer can establish, based | ||||||
14 | on a preponderance of the evidence, both of the | ||||||
15 | following: | ||||||
16 | (a) the person during the same taxable | ||||||
17 | year paid, accrued, or incurred, the | ||||||
18 | intangible expense or cost to a person that is | ||||||
19 | not a related member, and | ||||||
20 | (b) the transaction giving rise to the | ||||||
21 | intangible expense or cost between the | ||||||
22 | taxpayer and the person did not have as a | ||||||
23 | principal purpose the avoidance of Illinois | ||||||
24 | income tax, and is paid pursuant to a contract | ||||||
25 | or agreement that reflects arm's-length terms; | ||||||
26 | or |
| |||||||
| |||||||
1 | (iii) any item of intangible expense or cost | ||||||
2 | paid, accrued, or incurred, directly or | ||||||
3 | indirectly, from a transaction with a person if the | ||||||
4 | taxpayer establishes by clear and convincing | ||||||
5 | evidence, that the adjustments are unreasonable; | ||||||
6 | or if the taxpayer and the Director agree in | ||||||
7 | writing to the application or use of an alternative | ||||||
8 | method of apportionment under Section 304(f);
| ||||||
9 | Nothing in this subsection shall preclude the | ||||||
10 | Director from making any other adjustment | ||||||
11 | otherwise allowed under Section 404 of this Act for | ||||||
12 | any tax year beginning after the effective date of | ||||||
13 | this amendment provided such adjustment is made | ||||||
14 | pursuant to regulation adopted by the Department | ||||||
15 | and such regulations provide methods and standards | ||||||
16 | by which the Department will utilize its authority | ||||||
17 | under Section 404 of this Act;
| ||||||
18 | (E-14) For taxable years ending on or after | ||||||
19 | December 31, 2008, an amount equal to the amount of | ||||||
20 | insurance premium expenses and costs otherwise allowed | ||||||
21 | as a deduction in computing base income, and that were | ||||||
22 | paid, accrued, or incurred, directly or indirectly, to | ||||||
23 | a person who would be a member of the same unitary | ||||||
24 | business group but for the fact that the person is | ||||||
25 | prohibited under Section 1501(a)(27) from being | ||||||
26 | included in the unitary business group because he or |
| |||||||
| |||||||
1 | she is ordinarily required to apportion business | ||||||
2 | income under different subsections of Section 304. The | ||||||
3 | addition modification required by this subparagraph | ||||||
4 | shall be reduced to the extent that dividends were | ||||||
5 | included in base income of the unitary group for the | ||||||
6 | same taxable year and received by the taxpayer or by a | ||||||
7 | member of the taxpayer's unitary business group | ||||||
8 | (including amounts included in gross income under | ||||||
9 | Sections 951 through 964 of the Internal Revenue Code | ||||||
10 | and amounts included in gross income under Section 78 | ||||||
11 | of the Internal Revenue Code) with respect to the stock | ||||||
12 | of the same person to whom the premiums and costs were | ||||||
13 | directly or indirectly paid, incurred, or accrued. The | ||||||
14 | preceding sentence does not apply to the extent that | ||||||
15 | the same dividends caused a reduction to the addition | ||||||
16 | modification required under Section 203(b)(2)(E-12) or | ||||||
17 | Section 203(b)(2)(E-13) of this Act;
| ||||||
18 | (E-15) For taxable years beginning after December | ||||||
19 | 31, 2008, any deduction for dividends paid by a captive | ||||||
20 | real estate investment trust that is allowed to a real | ||||||
21 | estate investment trust under Section 857(b)(2)(B) of | ||||||
22 | the Internal Revenue Code for dividends paid; | ||||||
23 | (E-16) An amount equal to the credit allowable to | ||||||
24 | the taxpayer under Section 218(a) of this Act, | ||||||
25 | determined without regard to Section 218(c) of this | ||||||
26 | Act; |
| |||||||
| |||||||
1 | (E-17) For taxable years beginning on or after | ||||||
2 | January 1, 2017, an amount equal to the deduction | ||||||
3 | allowed under Section 199 of the Internal Revenue Code | ||||||
4 | for the taxable year; | ||||||
5 | and by deducting from the total so obtained the sum of the | ||||||
6 | following
amounts: | ||||||
7 | (F) An amount equal to the amount of any tax | ||||||
8 | imposed by this Act
which was refunded to the taxpayer | ||||||
9 | and included in such total for the
taxable year; | ||||||
10 | (G) An amount equal to any amount included in such | ||||||
11 | total under
Section 78 of the Internal Revenue Code; | ||||||
12 | (H) In the case of a regulated investment company, | ||||||
13 | an amount equal
to the amount of exempt interest | ||||||
14 | dividends as defined in subsection (b)
(5) of Section | ||||||
15 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
16 | for the taxable year; | ||||||
17 | (I) With the exception of any amounts subtracted | ||||||
18 | under subparagraph
(J),
an amount equal to the sum of | ||||||
19 | all amounts disallowed as
deductions by (i) Sections | ||||||
20 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
21 | interest expense by Section 291(a)(3) of the Internal | ||||||
22 | Revenue Code, and all amounts of expenses allocable to | ||||||
23 | interest and
disallowed as deductions by Section | ||||||
24 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
25 | taxable years
ending on or after August 13, 1999, | ||||||
26 | Sections
171(a)(2), 265,
280C, 291(a)(3), and |
| |||||||
| |||||||
1 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
2 | for tax years ending on or after December 31, 2011, | ||||||
3 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
4 | of the Internal Revenue Code and, for taxable years | ||||||
5 | ending on or after December 31, 2008, any amount | ||||||
6 | included in gross income under Section 87 of the | ||||||
7 | Internal Revenue Code and the policyholders' share of | ||||||
8 | tax-exempt interest of a life insurance company under | ||||||
9 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
10 | the case of a life insurance company with gross income | ||||||
11 | from a decrease in reserves for the tax year) or | ||||||
12 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
13 | the case of a life insurance company allowed a | ||||||
14 | deduction for an increase in reserves for the tax | ||||||
15 | year); the
provisions of this
subparagraph are exempt | ||||||
16 | from the provisions of Section 250; | ||||||
17 | (J) An amount equal to all amounts included in such | ||||||
18 | total which are
exempt from taxation by this State | ||||||
19 | either by reason of its statutes or
Constitution
or by | ||||||
20 | reason of the Constitution, treaties or statutes of the | ||||||
21 | United States;
provided that, in the case of any | ||||||
22 | statute of this State that exempts income
derived from | ||||||
23 | bonds or other obligations from the tax imposed under | ||||||
24 | this Act,
the amount exempted shall be the interest net | ||||||
25 | of bond premium amortization; | ||||||
26 | (K) An amount equal to those dividends included in |
| |||||||
| |||||||
1 | such total
which were paid by a corporation which | ||||||
2 | conducts
business operations in a River Edge | ||||||
3 | Redevelopment Zone or zones created under the River | ||||||
4 | Edge Redevelopment Zone Act and conducts substantially | ||||||
5 | all of its
operations in a River Edge Redevelopment | ||||||
6 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
7 | provisions of Section 250; | ||||||
8 | (L) An amount equal to those dividends included in | ||||||
9 | such total that
were paid by a corporation that | ||||||
10 | conducts business operations in a federally
designated | ||||||
11 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
12 | High Impact
Business located in Illinois; provided | ||||||
13 | that dividends eligible for the
deduction provided in | ||||||
14 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
15 | shall not be eligible for the deduction provided under | ||||||
16 | this subparagraph
(L); | ||||||
17 | (M) For any taxpayer that is a financial | ||||||
18 | organization within the meaning
of Section 304(c) of | ||||||
19 | this Act, an amount included in such total as interest
| ||||||
20 | income from a loan or loans made by such taxpayer to a | ||||||
21 | borrower, to the extent
that such a loan is secured by | ||||||
22 | property which is eligible for the River Edge | ||||||
23 | Redevelopment Zone Investment Credit. To determine the | ||||||
24 | portion of a loan or loans that is
secured by property | ||||||
25 | eligible for a Section 201(f) investment
credit to the | ||||||
26 | borrower, the entire principal amount of the loan or |
| |||||||
| |||||||
1 | loans
between the taxpayer and the borrower should be | ||||||
2 | divided into the basis of the
Section 201(f) investment | ||||||
3 | credit property which secures the
loan or loans, using | ||||||
4 | for this purpose the original basis of such property on
| ||||||
5 | the date that it was placed in service in the River | ||||||
6 | Edge Redevelopment Zone. The subtraction modification | ||||||
7 | available to taxpayer in any
year under this subsection | ||||||
8 | shall be that portion of the total interest paid
by the | ||||||
9 | borrower with respect to such loan attributable to the | ||||||
10 | eligible
property as calculated under the previous | ||||||
11 | sentence. This subparagraph (M) is exempt from the | ||||||
12 | provisions of Section 250; | ||||||
13 | (M-1) For any taxpayer that is a financial | ||||||
14 | organization within the
meaning of Section 304(c) of | ||||||
15 | this Act, an amount included in such total as
interest | ||||||
16 | income from a loan or loans made by such taxpayer to a | ||||||
17 | borrower,
to the extent that such a loan is secured by | ||||||
18 | property which is eligible for
the High Impact Business | ||||||
19 | Investment Credit. To determine the portion of a
loan | ||||||
20 | or loans that is secured by property eligible for a | ||||||
21 | Section 201(h) investment credit to the borrower, the | ||||||
22 | entire principal amount of
the loan or loans between | ||||||
23 | the taxpayer and the borrower should be divided into
| ||||||
24 | the basis of the Section 201(h) investment credit | ||||||
25 | property which
secures the loan or loans, using for | ||||||
26 | this purpose the original basis of such
property on the |
| |||||||
| |||||||
1 | date that it was placed in service in a federally | ||||||
2 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
3 | Illinois. No taxpayer that is
eligible for the | ||||||
4 | deduction provided in subparagraph (M) of paragraph | ||||||
5 | (2) of
this subsection shall be eligible for the | ||||||
6 | deduction provided under this
subparagraph (M-1). The | ||||||
7 | subtraction modification available to taxpayers in
any | ||||||
8 | year under this subsection shall be that portion of the | ||||||
9 | total interest
paid by the borrower with respect to | ||||||
10 | such loan attributable to the eligible
property as | ||||||
11 | calculated under the previous sentence; | ||||||
12 | (N) Two times any contribution made during the | ||||||
13 | taxable year to a
designated zone organization to the | ||||||
14 | extent that the contribution (i)
qualifies as a | ||||||
15 | charitable contribution under subsection (c) of | ||||||
16 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
17 | by its terms, be used for a
project approved by the | ||||||
18 | Department of Commerce and Economic Opportunity under | ||||||
19 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
20 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
21 | This subparagraph (N) is exempt from the provisions of | ||||||
22 | Section 250; | ||||||
23 | (O) An amount equal to: (i) 85% for taxable years | ||||||
24 | ending on or before
December 31, 1992, or, a percentage | ||||||
25 | equal to the percentage allowable under
Section | ||||||
26 | 243(a)(1) of the Internal Revenue Code of 1986 for |
| |||||||
| |||||||
1 | taxable years ending
after December 31, 1992, of the | ||||||
2 | amount by which dividends included in taxable
income | ||||||
3 | and received from a corporation that is not created or | ||||||
4 | organized under
the laws of the United States or any | ||||||
5 | state or political subdivision thereof,
including, for | ||||||
6 | taxable years ending on or after December 31, 1988, | ||||||
7 | dividends
received or deemed received or paid or deemed | ||||||
8 | paid under Sections 951 through
965 of the Internal | ||||||
9 | Revenue Code, exceed the amount of the modification
| ||||||
10 | provided under subparagraph (G) of paragraph (2) of | ||||||
11 | this subsection (b) which
is related to such dividends, | ||||||
12 | and including, for taxable years ending on or after | ||||||
13 | December 31, 2008, dividends received from a captive | ||||||
14 | real estate investment trust; plus (ii) 100% of the | ||||||
15 | amount by which dividends,
included in taxable income | ||||||
16 | and received, including, for taxable years ending on
or | ||||||
17 | after December 31, 1988, dividends received or deemed | ||||||
18 | received or paid or
deemed paid under Sections 951 | ||||||
19 | through 964 of the Internal Revenue Code and including, | ||||||
20 | for taxable years ending on or after December 31, 2008, | ||||||
21 | dividends received from a captive real estate | ||||||
22 | investment trust, from
any such corporation specified | ||||||
23 | in clause (i) that would but for the provisions
of | ||||||
24 | Section 1504 (b) (3) of the Internal Revenue Code be | ||||||
25 | treated as a member of
the affiliated group which | ||||||
26 | includes the dividend recipient, exceed the amount
of |
| |||||||
| |||||||
1 | the modification provided under subparagraph (G) of | ||||||
2 | paragraph (2) of this
subsection (b) which is related | ||||||
3 | to such dividends. This subparagraph (O) is exempt from | ||||||
4 | the provisions of Section 250 of this Act; | ||||||
5 | (P) An amount equal to any contribution made to a | ||||||
6 | job training project
established pursuant to the Tax | ||||||
7 | Increment Allocation Redevelopment Act; | ||||||
8 | (Q) An amount equal to the amount of the deduction | ||||||
9 | used to compute the
federal income tax credit for | ||||||
10 | restoration of substantial amounts held under
claim of | ||||||
11 | right for the taxable year pursuant to Section 1341 of | ||||||
12 | the
Internal Revenue Code; | ||||||
13 | (R) On and after July 20, 1999, in the case of an | ||||||
14 | attorney-in-fact with respect to whom an
interinsurer | ||||||
15 | or a reciprocal insurer has made the election under | ||||||
16 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
17 | 835, an amount equal to the excess, if
any, of the | ||||||
18 | amounts paid or incurred by that interinsurer or | ||||||
19 | reciprocal insurer
in the taxable year to the | ||||||
20 | attorney-in-fact over the deduction allowed to that
| ||||||
21 | interinsurer or reciprocal insurer with respect to the | ||||||
22 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
23 | Revenue Code for the taxable year; the provisions of | ||||||
24 | this subparagraph are exempt from the provisions of | ||||||
25 | Section 250; | ||||||
26 | (S) For taxable years ending on or after December |
| |||||||
| |||||||
1 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
2 | amount equal to all amounts of income allocable to a
| ||||||
3 | shareholder subject to the Personal Property Tax | ||||||
4 | Replacement Income Tax imposed
by subsections (c) and | ||||||
5 | (d) of Section 201 of this Act, including amounts
| ||||||
6 | allocable to organizations exempt from federal income | ||||||
7 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
8 | Code. This subparagraph (S) is exempt from
the | ||||||
9 | provisions of Section 250; | ||||||
10 | (T) For taxable years 2001 and thereafter, for the | ||||||
11 | taxable year in
which the bonus depreciation deduction
| ||||||
12 | is taken on the taxpayer's federal income tax return | ||||||
13 | under
subsection (k) of Section 168 of the Internal | ||||||
14 | Revenue Code and for each
applicable taxable year | ||||||
15 | thereafter, an amount equal to "x", where: | ||||||
16 | (1) "y" equals the amount of the depreciation | ||||||
17 | deduction taken for the
taxable year
on the | ||||||
18 | taxpayer's federal income tax return on property | ||||||
19 | for which the bonus
depreciation deduction
was | ||||||
20 | taken in any year under subsection (k) of Section | ||||||
21 | 168 of the Internal
Revenue Code, but not including | ||||||
22 | the bonus depreciation deduction; | ||||||
23 | (2) for taxable years ending on or before | ||||||
24 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
25 | and then divided by 70 (or "y"
multiplied by | ||||||
26 | 0.429); and |
| |||||||
| |||||||
1 | (3) for taxable years ending after December | ||||||
2 | 31, 2005: | ||||||
3 | (i) for property on which a bonus | ||||||
4 | depreciation deduction of 30% of the adjusted | ||||||
5 | basis was taken, "x" equals "y" multiplied by | ||||||
6 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
7 | 0.429); and | ||||||
8 | (ii) for property on which a bonus | ||||||
9 | depreciation deduction of 50% of the adjusted | ||||||
10 | basis was taken, "x" equals "y" multiplied by | ||||||
11 | 1.0. | ||||||
12 | The aggregate amount deducted under this | ||||||
13 | subparagraph in all taxable
years for any one piece of | ||||||
14 | property may not exceed the amount of the bonus
| ||||||
15 | depreciation deduction
taken on that property on the | ||||||
16 | taxpayer's federal income tax return under
subsection | ||||||
17 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
18 | subparagraph (T) is exempt from the provisions of | ||||||
19 | Section 250; | ||||||
20 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
21 | otherwise disposes of
property for which the taxpayer | ||||||
22 | was required in any taxable year to make an
addition | ||||||
23 | modification under subparagraph (E-10), then an amount | ||||||
24 | equal to that
addition modification. | ||||||
25 | If the taxpayer continues to own property through | ||||||
26 | the last day of the last tax year for which the |
| |||||||
| |||||||
1 | taxpayer may claim a depreciation deduction for | ||||||
2 | federal income tax purposes and for which the taxpayer | ||||||
3 | was required in any taxable year to make an addition | ||||||
4 | modification under subparagraph (E-10), then an amount | ||||||
5 | equal to that addition modification.
| ||||||
6 | The taxpayer is allowed to take the deduction under | ||||||
7 | this subparagraph
only once with respect to any one | ||||||
8 | piece of property. | ||||||
9 | This subparagraph (U) is exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (V) The amount of: (i) any interest income (net of | ||||||
12 | the deductions allocable thereto) taken into account | ||||||
13 | for the taxable year with respect to a transaction with | ||||||
14 | a taxpayer that is required to make an addition | ||||||
15 | modification with respect to such transaction under | ||||||
16 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
17 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
18 | the amount of such addition modification,
(ii) any | ||||||
19 | income from intangible property (net of the deductions | ||||||
20 | allocable thereto) taken into account for the taxable | ||||||
21 | year with respect to a transaction with a taxpayer that | ||||||
22 | is required to make an addition modification with | ||||||
23 | respect to such transaction under Section | ||||||
24 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
25 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
26 | addition modification, and (iii) any insurance premium |
| |||||||
| |||||||
1 | income (net of deductions allocable thereto) taken | ||||||
2 | into account for the taxable year with respect to a | ||||||
3 | transaction with a taxpayer that is required to make an | ||||||
4 | addition modification with respect to such transaction | ||||||
5 | under Section 203(a)(2)(D-19), Section | ||||||
6 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
7 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
8 | addition modification. This subparagraph (V) is exempt | ||||||
9 | from the provisions of Section 250;
| ||||||
10 | (W) An amount equal to the interest income taken | ||||||
11 | into account for the taxable year (net of the | ||||||
12 | deductions allocable thereto) with respect to | ||||||
13 | transactions with (i) a foreign person who would be a | ||||||
14 | member of the taxpayer's unitary business group but for | ||||||
15 | the fact that the foreign person's business activity | ||||||
16 | outside the United States is 80% or more of that | ||||||
17 | person's total business activity and (ii) for taxable | ||||||
18 | years ending on or after December 31, 2008, to a person | ||||||
19 | who would be a member of the same unitary business | ||||||
20 | group but for the fact that the person is prohibited | ||||||
21 | under Section 1501(a)(27) from being included in the | ||||||
22 | unitary business group because he or she is ordinarily | ||||||
23 | required to apportion business income under different | ||||||
24 | subsections of Section 304, but not to exceed the | ||||||
25 | addition modification required to be made for the same | ||||||
26 | taxable year under Section 203(b)(2)(E-12) for |
| |||||||
| |||||||
1 | interest paid, accrued, or incurred, directly or | ||||||
2 | indirectly, to the same person. This subparagraph (W) | ||||||
3 | is exempt from the provisions of Section 250;
| ||||||
4 | (X) An amount equal to the income from intangible | ||||||
5 | property taken into account for the taxable year (net | ||||||
6 | of the deductions allocable thereto) with respect to | ||||||
7 | transactions with (i) a foreign person who would be a | ||||||
8 | member of the taxpayer's unitary business group but for | ||||||
9 | the fact that the foreign person's business activity | ||||||
10 | outside the United States is 80% or more of that | ||||||
11 | person's total business activity and (ii) for taxable | ||||||
12 | years ending on or after December 31, 2008, to a person | ||||||
13 | who would be a member of the same unitary business | ||||||
14 | group but for the fact that the person is prohibited | ||||||
15 | under Section 1501(a)(27) from being included in the | ||||||
16 | unitary business group because he or she is ordinarily | ||||||
17 | required to apportion business income under different | ||||||
18 | subsections of Section 304, but not to exceed the | ||||||
19 | addition modification required to be made for the same | ||||||
20 | taxable year under Section 203(b)(2)(E-13) for | ||||||
21 | intangible expenses and costs paid, accrued, or | ||||||
22 | incurred, directly or indirectly, to the same foreign | ||||||
23 | person. This subparagraph (X) is exempt from the | ||||||
24 | provisions of Section 250;
| ||||||
25 | (Y) For taxable years ending on or after December | ||||||
26 | 31, 2011, in the case of a taxpayer who was required to |
| |||||||
| |||||||
1 | add back any insurance premiums under Section | ||||||
2 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
3 | that part of a reimbursement received from the | ||||||
4 | insurance company equal to the amount of the expense or | ||||||
5 | loss (including expenses incurred by the insurance | ||||||
6 | company) that would have been taken into account as a | ||||||
7 | deduction for federal income tax purposes if the | ||||||
8 | expense or loss had been uninsured. If a taxpayer makes | ||||||
9 | the election provided for by this subparagraph (Y), the | ||||||
10 | insurer to which the premiums were paid must add back | ||||||
11 | to income the amount subtracted by the taxpayer | ||||||
12 | pursuant to this subparagraph (Y). This subparagraph | ||||||
13 | (Y) is exempt from the provisions of Section 250; and | ||||||
14 | (Z) The difference between the nondeductible | ||||||
15 | controlled foreign corporation dividends under Section | ||||||
16 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
17 | income of the taxpayer, computed without regard to | ||||||
18 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
19 | without regard to any net operating loss deduction. | ||||||
20 | This subparagraph (Z) is exempt from the provisions of | ||||||
21 | Section 250. | ||||||
22 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
23 | "gross income"
in the case of a life insurance company, for | ||||||
24 | tax years ending on and after
December 31, 1994,
and prior | ||||||
25 | to December 31, 2011, shall mean the gross investment | ||||||
26 | income for the taxable year and, for tax years ending on or |
| |||||||
| |||||||
1 | after December 31, 2011, shall mean all amounts included in | ||||||
2 | life insurance gross income under Section 803(a)(3) of the | ||||||
3 | Internal Revenue Code.
| ||||||
4 | (c) Trusts and estates. | ||||||
5 | (1) In general. In the case of a trust or estate, base | ||||||
6 | income means
an amount equal to the taxpayer's taxable | ||||||
7 | income for the taxable year as
modified by paragraph (2). | ||||||
8 | (2) Modifications. Subject to the provisions of | ||||||
9 | paragraph (3), the
taxable income referred to in paragraph | ||||||
10 | (1) shall be modified by adding
thereto the sum of the | ||||||
11 | following amounts: | ||||||
12 | (A) An amount equal to all amounts paid or accrued | ||||||
13 | to the taxpayer
as interest or dividends during the | ||||||
14 | taxable year to the extent excluded
from gross income | ||||||
15 | in the computation of taxable income; | ||||||
16 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
17 | trust which, under
its governing instrument, is | ||||||
18 | required to distribute all of its income
currently, | ||||||
19 | $300; and (iii) any other trust, $100, but in each such | ||||||
20 | case,
only to the extent such amount was deducted in | ||||||
21 | the computation of
taxable income; | ||||||
22 | (C) An amount equal to the amount of tax imposed by | ||||||
23 | this Act to the
extent deducted from gross income in | ||||||
24 | the computation of taxable income
for the taxable year; | ||||||
25 | (D) The amount of any net operating loss deduction |
| |||||||
| |||||||
1 | taken in arriving at
taxable income, other than a net | ||||||
2 | operating loss carried forward from a
taxable year | ||||||
3 | ending prior to December 31, 1986; | ||||||
4 | (E) For taxable years in which a net operating loss | ||||||
5 | carryback or
carryforward from a taxable year ending | ||||||
6 | prior to December 31, 1986 is an
element of taxable | ||||||
7 | income under paragraph (1) of subsection (e) or | ||||||
8 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
9 | the amount by which addition
modifications other than | ||||||
10 | those provided by this subparagraph (E) exceeded
| ||||||
11 | subtraction modifications in such taxable year, with | ||||||
12 | the following limitations
applied in the order that | ||||||
13 | they are listed: | ||||||
14 | (i) the addition modification relating to the | ||||||
15 | net operating loss
carried back or forward to the | ||||||
16 | taxable year from any taxable year ending
prior to | ||||||
17 | December 31, 1986 shall be reduced by the amount of | ||||||
18 | addition
modification under this subparagraph (E) | ||||||
19 | which related to that net
operating loss and which | ||||||
20 | was taken into account in calculating the base
| ||||||
21 | income of an earlier taxable year, and | ||||||
22 | (ii) the addition modification relating to the | ||||||
23 | net operating loss
carried back or forward to the | ||||||
24 | taxable year from any taxable year ending
prior to | ||||||
25 | December 31, 1986 shall not exceed the amount of | ||||||
26 | such carryback or
carryforward; |
| |||||||
| |||||||
1 | For taxable years in which there is a net operating | ||||||
2 | loss carryback or
carryforward from more than one other | ||||||
3 | taxable year ending prior to December
31, 1986, the | ||||||
4 | addition modification provided in this subparagraph | ||||||
5 | (E) shall
be the sum of the amounts computed | ||||||
6 | independently under the preceding
provisions of this | ||||||
7 | subparagraph (E) for each such taxable year; | ||||||
8 | (F) For taxable years ending on or after January 1, | ||||||
9 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
10 | Section 164 of the Internal Revenue
Code if the trust | ||||||
11 | or estate is claiming the same tax for purposes of the
| ||||||
12 | Illinois foreign tax credit under Section 601 of this | ||||||
13 | Act; | ||||||
14 | (G) An amount equal to the amount of the capital | ||||||
15 | gain deduction
allowable under the Internal Revenue | ||||||
16 | Code, to the extent deducted from
gross income in the | ||||||
17 | computation of taxable income; | ||||||
18 | (G-5) For taxable years ending after December 31, | ||||||
19 | 1997, an
amount equal to any eligible remediation costs | ||||||
20 | that the trust or estate
deducted in computing adjusted | ||||||
21 | gross income and for which the trust
or estate claims a | ||||||
22 | credit under subsection (l) of Section 201; | ||||||
23 | (G-10) For taxable years 2001 and thereafter, an | ||||||
24 | amount equal to the
bonus depreciation deduction taken | ||||||
25 | on the taxpayer's federal income tax return for the | ||||||
26 | taxable
year under subsection (k) of Section 168 of the |
| |||||||
| |||||||
1 | Internal Revenue Code; and | ||||||
2 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
3 | or otherwise disposes of property for which the | ||||||
4 | taxpayer was required in any taxable year to
make an | ||||||
5 | addition modification under subparagraph (G-10), then | ||||||
6 | an amount equal
to the aggregate amount of the | ||||||
7 | deductions taken in all taxable
years under | ||||||
8 | subparagraph (R) with respect to that property. | ||||||
9 | If the taxpayer continues to own property through | ||||||
10 | the last day of the last tax year for which the | ||||||
11 | taxpayer may claim a depreciation deduction for | ||||||
12 | federal income tax purposes and for which the taxpayer | ||||||
13 | was allowed in any taxable year to make a subtraction | ||||||
14 | modification under subparagraph (R), then an amount | ||||||
15 | equal to that subtraction modification.
| ||||||
16 | The taxpayer is required to make the addition | ||||||
17 | modification under this
subparagraph
only once with | ||||||
18 | respect to any one piece of property; | ||||||
19 | (G-12) An amount equal to the amount otherwise | ||||||
20 | allowed as a deduction in computing base income for | ||||||
21 | interest paid, accrued, or incurred, directly or | ||||||
22 | indirectly, (i) for taxable years ending on or after | ||||||
23 | December 31, 2004, to a foreign person who would be a | ||||||
24 | member of the same unitary business group but for the | ||||||
25 | fact that the foreign person's business activity | ||||||
26 | outside the United States is 80% or more of the foreign |
| |||||||
| |||||||
1 | person's total business activity and (ii) for taxable | ||||||
2 | years ending on or after December 31, 2008, to a person | ||||||
3 | who would be a member of the same unitary business | ||||||
4 | group but for the fact that the person is prohibited | ||||||
5 | under Section 1501(a)(27) from being included in the | ||||||
6 | unitary business group because he or she is ordinarily | ||||||
7 | required to apportion business income under different | ||||||
8 | subsections of Section 304. The addition modification | ||||||
9 | required by this subparagraph shall be reduced to the | ||||||
10 | extent that dividends were included in base income of | ||||||
11 | the unitary group for the same taxable year and | ||||||
12 | received by the taxpayer or by a member of the | ||||||
13 | taxpayer's unitary business group (including amounts | ||||||
14 | included in gross income pursuant to Sections 951 | ||||||
15 | through 964 of the Internal Revenue Code and amounts | ||||||
16 | included in gross income under Section 78 of the | ||||||
17 | Internal Revenue Code) with respect to the stock of the | ||||||
18 | same person to whom the interest was paid, accrued, or | ||||||
19 | incurred.
| ||||||
20 | This paragraph shall not apply to the following:
| ||||||
21 | (i) an item of interest paid, accrued, or | ||||||
22 | incurred, directly or indirectly, to a person who | ||||||
23 | is subject in a foreign country or state, other | ||||||
24 | than a state which requires mandatory unitary | ||||||
25 | reporting, to a tax on or measured by net income | ||||||
26 | with respect to such interest; or |
| |||||||
| |||||||
1 | (ii) an item of interest paid, accrued, or | ||||||
2 | incurred, directly or indirectly, to a person if | ||||||
3 | the taxpayer can establish, based on a | ||||||
4 | preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person, during the same taxable | ||||||
7 | year, paid, accrued, or incurred, the interest | ||||||
8 | to a person that is not a related member, and | ||||||
9 | (b) the transaction giving rise to the | ||||||
10 | interest expense between the taxpayer and the | ||||||
11 | person did not have as a principal purpose the | ||||||
12 | avoidance of Illinois income tax, and is paid | ||||||
13 | pursuant to a contract or agreement that | ||||||
14 | reflects an arm's-length interest rate and | ||||||
15 | terms; or
| ||||||
16 | (iii) the taxpayer can establish, based on | ||||||
17 | clear and convincing evidence, that the interest | ||||||
18 | paid, accrued, or incurred relates to a contract or | ||||||
19 | agreement entered into at arm's-length rates and | ||||||
20 | terms and the principal purpose for the payment is | ||||||
21 | not federal or Illinois tax avoidance; or
| ||||||
22 | (iv) an item of interest paid, accrued, or | ||||||
23 | incurred, directly or indirectly, to a person if | ||||||
24 | the taxpayer establishes by clear and convincing | ||||||
25 | evidence that the adjustments are unreasonable; or | ||||||
26 | if the taxpayer and the Director agree in writing |
| |||||||
| |||||||
1 | to the application or use of an alternative method | ||||||
2 | of apportionment under Section 304(f).
| ||||||
3 | Nothing in this subsection shall preclude the | ||||||
4 | Director from making any other adjustment | ||||||
5 | otherwise allowed under Section 404 of this Act for | ||||||
6 | any tax year beginning after the effective date of | ||||||
7 | this amendment provided such adjustment is made | ||||||
8 | pursuant to regulation adopted by the Department | ||||||
9 | and such regulations provide methods and standards | ||||||
10 | by which the Department will utilize its authority | ||||||
11 | under Section 404 of this Act;
| ||||||
12 | (G-13) An amount equal to the amount of intangible | ||||||
13 | expenses and costs otherwise allowed as a deduction in | ||||||
14 | computing base income, and that were paid, accrued, or | ||||||
15 | incurred, directly or indirectly, (i) for taxable | ||||||
16 | years ending on or after December 31, 2004, to a | ||||||
17 | foreign person who would be a member of the same | ||||||
18 | unitary business group but for the fact that the | ||||||
19 | foreign person's business activity outside the United | ||||||
20 | States is 80% or more of that person's total business | ||||||
21 | activity and (ii) for taxable years ending on or after | ||||||
22 | December 31, 2008, to a person who would be a member of | ||||||
23 | the same unitary business group but for the fact that | ||||||
24 | the person is prohibited under Section 1501(a)(27) | ||||||
25 | from being included in the unitary business group | ||||||
26 | because he or she is ordinarily required to apportion |
| |||||||
| |||||||
1 | business income under different subsections of Section | ||||||
2 | 304. The addition modification required by this | ||||||
3 | subparagraph shall be reduced to the extent that | ||||||
4 | dividends were included in base income of the unitary | ||||||
5 | group for the same taxable year and received by the | ||||||
6 | taxpayer or by a member of the taxpayer's unitary | ||||||
7 | business group (including amounts included in gross | ||||||
8 | income pursuant to Sections 951 through 964 of the | ||||||
9 | Internal Revenue Code and amounts included in gross | ||||||
10 | income under Section 78 of the Internal Revenue Code) | ||||||
11 | with respect to the stock of the same person to whom | ||||||
12 | the intangible expenses and costs were directly or | ||||||
13 | indirectly paid, incurred, or accrued. The preceding | ||||||
14 | sentence shall not apply to the extent that the same | ||||||
15 | dividends caused a reduction to the addition | ||||||
16 | modification required under Section 203(c)(2)(G-12) of | ||||||
17 | this Act. As used in this subparagraph, the term | ||||||
18 | "intangible expenses and costs" includes: (1) | ||||||
19 | expenses, losses, and costs for or related to the | ||||||
20 | direct or indirect acquisition, use, maintenance or | ||||||
21 | management, ownership, sale, exchange, or any other | ||||||
22 | disposition of intangible property; (2) losses | ||||||
23 | incurred, directly or indirectly, from factoring | ||||||
24 | transactions or discounting transactions; (3) royalty, | ||||||
25 | patent, technical, and copyright fees; (4) licensing | ||||||
26 | fees; and (5) other similar expenses and costs. For |
| |||||||
| |||||||
1 | purposes of this subparagraph, "intangible property" | ||||||
2 | includes patents, patent applications, trade names, | ||||||
3 | trademarks, service marks, copyrights, mask works, | ||||||
4 | trade secrets, and similar types of intangible assets. | ||||||
5 | This paragraph shall not apply to the following: | ||||||
6 | (i) any item of intangible expenses or costs | ||||||
7 | paid, accrued, or incurred, directly or | ||||||
8 | indirectly, from a transaction with a person who is | ||||||
9 | subject in a foreign country or state, other than a | ||||||
10 | state which requires mandatory unitary reporting, | ||||||
11 | to a tax on or measured by net income with respect | ||||||
12 | to such item; or | ||||||
13 | (ii) any item of intangible expense or cost | ||||||
14 | paid, accrued, or incurred, directly or | ||||||
15 | indirectly, if the taxpayer can establish, based | ||||||
16 | on a preponderance of the evidence, both of the | ||||||
17 | following: | ||||||
18 | (a) the person during the same taxable | ||||||
19 | year paid, accrued, or incurred, the | ||||||
20 | intangible expense or cost to a person that is | ||||||
21 | not a related member, and | ||||||
22 | (b) the transaction giving rise to the | ||||||
23 | intangible expense or cost between the | ||||||
24 | taxpayer and the person did not have as a | ||||||
25 | principal purpose the avoidance of Illinois | ||||||
26 | income tax, and is paid pursuant to a contract |
| |||||||
| |||||||
1 | or agreement that reflects arm's-length terms; | ||||||
2 | or | ||||||
3 | (iii) any item of intangible expense or cost | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, from a transaction with a person if the | ||||||
6 | taxpayer establishes by clear and convincing | ||||||
7 | evidence, that the adjustments are unreasonable; | ||||||
8 | or if the taxpayer and the Director agree in | ||||||
9 | writing to the application or use of an alternative | ||||||
10 | method of apportionment under Section 304(f);
| ||||||
11 | Nothing in this subsection shall preclude the | ||||||
12 | Director from making any other adjustment | ||||||
13 | otherwise allowed under Section 404 of this Act for | ||||||
14 | any tax year beginning after the effective date of | ||||||
15 | this amendment provided such adjustment is made | ||||||
16 | pursuant to regulation adopted by the Department | ||||||
17 | and such regulations provide methods and standards | ||||||
18 | by which the Department will utilize its authority | ||||||
19 | under Section 404 of this Act;
| ||||||
20 | (G-14) For taxable years ending on or after | ||||||
21 | December 31, 2008, an amount equal to the amount of | ||||||
22 | insurance premium expenses and costs otherwise allowed | ||||||
23 | as a deduction in computing base income, and that were | ||||||
24 | paid, accrued, or incurred, directly or indirectly, to | ||||||
25 | a person who would be a member of the same unitary | ||||||
26 | business group but for the fact that the person is |
| |||||||
| |||||||
1 | prohibited under Section 1501(a)(27) from being | ||||||
2 | included in the unitary business group because he or | ||||||
3 | she is ordinarily required to apportion business | ||||||
4 | income under different subsections of Section 304. The | ||||||
5 | addition modification required by this subparagraph | ||||||
6 | shall be reduced to the extent that dividends were | ||||||
7 | included in base income of the unitary group for the | ||||||
8 | same taxable year and received by the taxpayer or by a | ||||||
9 | member of the taxpayer's unitary business group | ||||||
10 | (including amounts included in gross income under | ||||||
11 | Sections 951 through 964 of the Internal Revenue Code | ||||||
12 | and amounts included in gross income under Section 78 | ||||||
13 | of the Internal Revenue Code) with respect to the stock | ||||||
14 | of the same person to whom the premiums and costs were | ||||||
15 | directly or indirectly paid, incurred, or accrued. The | ||||||
16 | preceding sentence does not apply to the extent that | ||||||
17 | the same dividends caused a reduction to the addition | ||||||
18 | modification required under Section 203(c)(2)(G-12) or | ||||||
19 | Section 203(c)(2)(G-13) of this Act; | ||||||
20 | (G-15) An amount equal to the credit allowable to | ||||||
21 | the taxpayer under Section 218(a) of this Act, | ||||||
22 | determined without regard to Section 218(c) of this | ||||||
23 | Act; | ||||||
24 | (G-16) For taxable years beginning on or after | ||||||
25 | January 1, 2017, an amount equal to the deduction | ||||||
26 | allowed under Section 199 of the Internal Revenue Code |
| |||||||
| |||||||
1 | for the taxable year; | ||||||
2 | and by deducting from the total so obtained the sum of the | ||||||
3 | following
amounts: | ||||||
4 | (H) An amount equal to all amounts included in such | ||||||
5 | total pursuant
to the provisions of Sections 402(a), | ||||||
6 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
7 | Internal Revenue Code or included in such total as
| ||||||
8 | distributions under the provisions of any retirement | ||||||
9 | or disability plan for
employees of any governmental | ||||||
10 | agency or unit, or retirement payments to
retired | ||||||
11 | partners, which payments are excluded in computing net | ||||||
12 | earnings
from self employment by Section 1402 of the | ||||||
13 | Internal Revenue Code and
regulations adopted pursuant | ||||||
14 | thereto; | ||||||
15 | (I) The valuation limitation amount; | ||||||
16 | (J) An amount equal to the amount of any tax | ||||||
17 | imposed by this Act
which was refunded to the taxpayer | ||||||
18 | and included in such total for the
taxable year; | ||||||
19 | (K) An amount equal to all amounts included in | ||||||
20 | taxable income as
modified by subparagraphs (A), (B), | ||||||
21 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
22 | taxation by this State either by reason of its statutes | ||||||
23 | or
Constitution
or by reason of the Constitution, | ||||||
24 | treaties or statutes of the United States;
provided | ||||||
25 | that, in the case of any statute of this State that | ||||||
26 | exempts income
derived from bonds or other obligations |
| |||||||
| |||||||
1 | from the tax imposed under this Act,
the amount | ||||||
2 | exempted shall be the interest net of bond premium | ||||||
3 | amortization; | ||||||
4 | (L) With the exception of any amounts subtracted | ||||||
5 | under subparagraph
(K),
an amount equal to the sum of | ||||||
6 | all amounts disallowed as
deductions by (i) Sections | ||||||
7 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
8 | and all amounts of expenses allocable
to interest and | ||||||
9 | disallowed as deductions by Section 265(1) of the | ||||||
10 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
11 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
12 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
13 | Code, plus, (iii) for taxable years ending on or after | ||||||
14 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
15 | Revenue Code and, for taxable years ending on or after | ||||||
16 | December 31, 2008, any amount included in gross income | ||||||
17 | under Section 87 of the Internal Revenue Code; the | ||||||
18 | provisions of this
subparagraph are exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (M) An amount equal to those dividends included in | ||||||
21 | such total
which were paid by a corporation which | ||||||
22 | conducts business operations in a River Edge | ||||||
23 | Redevelopment Zone or zones created under the River | ||||||
24 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
25 | all of its operations in a River Edge Redevelopment | ||||||
26 | Zone or zones. This subparagraph (M) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (N) An amount equal to any contribution made to a | ||||||
3 | job training
project established pursuant to the Tax | ||||||
4 | Increment Allocation
Redevelopment Act; | ||||||
5 | (O) An amount equal to those dividends included in | ||||||
6 | such total
that were paid by a corporation that | ||||||
7 | conducts business operations in a
federally designated | ||||||
8 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
9 | High Impact Business located in Illinois; provided | ||||||
10 | that dividends eligible
for the deduction provided in | ||||||
11 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
12 | shall not be eligible for the deduction provided under | ||||||
13 | this
subparagraph (O); | ||||||
14 | (P) An amount equal to the amount of the deduction | ||||||
15 | used to compute the
federal income tax credit for | ||||||
16 | restoration of substantial amounts held under
claim of | ||||||
17 | right for the taxable year pursuant to Section 1341 of | ||||||
18 | the
Internal Revenue Code; | ||||||
19 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
20 | equal to the
amount of any
(i) distributions, to the | ||||||
21 | extent includible in gross income for
federal income | ||||||
22 | tax purposes, made to the taxpayer because of
his or | ||||||
23 | her status as a victim of
persecution for racial or | ||||||
24 | religious reasons by Nazi Germany or any other Axis
| ||||||
25 | regime or as an heir of the victim and (ii) items
of | ||||||
26 | income, to the extent
includible in gross income for |
| |||||||
| |||||||
1 | federal income tax purposes, attributable to,
derived | ||||||
2 | from or in any way related to assets stolen from, | ||||||
3 | hidden from, or
otherwise lost to a victim of
| ||||||
4 | persecution for racial or religious reasons by Nazi
| ||||||
5 | Germany or any other Axis regime
immediately prior to, | ||||||
6 | during, and immediately after World War II, including,
| ||||||
7 | but
not limited to, interest on the proceeds receivable | ||||||
8 | as insurance
under policies issued to a victim of | ||||||
9 | persecution for racial or religious
reasons by Nazi | ||||||
10 | Germany or any other Axis regime by European insurance
| ||||||
11 | companies
immediately prior to and during World War II;
| ||||||
12 | provided, however, this subtraction from federal | ||||||
13 | adjusted gross income does not
apply to assets acquired | ||||||
14 | with such assets or with the proceeds from the sale of
| ||||||
15 | such assets; provided, further, this paragraph shall | ||||||
16 | only apply to a taxpayer
who was the first recipient of | ||||||
17 | such assets after their recovery and who is a
victim of
| ||||||
18 | persecution for racial or religious reasons
by Nazi | ||||||
19 | Germany or any other Axis regime or as an heir of the | ||||||
20 | victim. The
amount of and the eligibility for any | ||||||
21 | public assistance, benefit, or
similar entitlement is | ||||||
22 | not affected by the inclusion of items (i) and (ii) of
| ||||||
23 | this paragraph in gross income for federal income tax | ||||||
24 | purposes.
This paragraph is exempt from the provisions | ||||||
25 | of Section 250; | ||||||
26 | (R) For taxable years 2001 and thereafter, for the |
| |||||||
| |||||||
1 | taxable year in
which the bonus depreciation deduction
| ||||||
2 | is taken on the taxpayer's federal income tax return | ||||||
3 | under
subsection (k) of Section 168 of the Internal | ||||||
4 | Revenue Code and for each
applicable taxable year | ||||||
5 | thereafter, an amount equal to "x", where: | ||||||
6 | (1) "y" equals the amount of the depreciation | ||||||
7 | deduction taken for the
taxable year
on the | ||||||
8 | taxpayer's federal income tax return on property | ||||||
9 | for which the bonus
depreciation deduction
was | ||||||
10 | taken in any year under subsection (k) of Section | ||||||
11 | 168 of the Internal
Revenue Code, but not including | ||||||
12 | the bonus depreciation deduction; | ||||||
13 | (2) for taxable years ending on or before | ||||||
14 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
15 | and then divided by 70 (or "y"
multiplied by | ||||||
16 | 0.429); and | ||||||
17 | (3) for taxable years ending after December | ||||||
18 | 31, 2005: | ||||||
19 | (i) for property on which a bonus | ||||||
20 | depreciation deduction of 30% of the adjusted | ||||||
21 | basis was taken, "x" equals "y" multiplied by | ||||||
22 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
23 | 0.429); and | ||||||
24 | (ii) for property on which a bonus | ||||||
25 | depreciation deduction of 50% of the adjusted | ||||||
26 | basis was taken, "x" equals "y" multiplied by |
| |||||||
| |||||||
1 | 1.0. | ||||||
2 | The aggregate amount deducted under this | ||||||
3 | subparagraph in all taxable
years for any one piece of | ||||||
4 | property may not exceed the amount of the bonus
| ||||||
5 | depreciation deduction
taken on that property on the | ||||||
6 | taxpayer's federal income tax return under
subsection | ||||||
7 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
8 | subparagraph (R) is exempt from the provisions of | ||||||
9 | Section 250; | ||||||
10 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
11 | otherwise disposes of
property for which the taxpayer | ||||||
12 | was required in any taxable year to make an
addition | ||||||
13 | modification under subparagraph (G-10), then an amount | ||||||
14 | equal to that
addition modification. | ||||||
15 | If the taxpayer continues to own property through | ||||||
16 | the last day of the last tax year for which the | ||||||
17 | taxpayer may claim a depreciation deduction for | ||||||
18 | federal income tax purposes and for which the taxpayer | ||||||
19 | was required in any taxable year to make an addition | ||||||
20 | modification under subparagraph (G-10), then an amount | ||||||
21 | equal to that addition modification.
| ||||||
22 | The taxpayer is allowed to take the deduction under | ||||||
23 | this subparagraph
only once with respect to any one | ||||||
24 | piece of property. | ||||||
25 | This subparagraph (S) is exempt from the | ||||||
26 | provisions of Section 250; |
| |||||||
| |||||||
1 | (T) The amount of (i) any interest income (net of | ||||||
2 | the deductions allocable thereto) taken into account | ||||||
3 | for the taxable year with respect to a transaction with | ||||||
4 | a taxpayer that is required to make an addition | ||||||
5 | modification with respect to such transaction under | ||||||
6 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
7 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
8 | the amount of such addition modification and
(ii) any | ||||||
9 | income from intangible property (net of the deductions | ||||||
10 | allocable thereto) taken into account for the taxable | ||||||
11 | year with respect to a transaction with a taxpayer that | ||||||
12 | is required to make an addition modification with | ||||||
13 | respect to such transaction under Section | ||||||
14 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
15 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
16 | addition modification. This subparagraph (T) is exempt | ||||||
17 | from the provisions of Section 250;
| ||||||
18 | (U) An amount equal to the interest income taken | ||||||
19 | into account for the taxable year (net of the | ||||||
20 | deductions allocable thereto) with respect to | ||||||
21 | transactions with (i) a foreign person who would be a | ||||||
22 | member of the taxpayer's unitary business group but for | ||||||
23 | the fact the foreign person's business activity | ||||||
24 | outside the United States is 80% or more of that | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
1 | who would be a member of the same unitary business | ||||||
2 | group but for the fact that the person is prohibited | ||||||
3 | under Section 1501(a)(27) from being included in the | ||||||
4 | unitary business group because he or she is ordinarily | ||||||
5 | required to apportion business income under different | ||||||
6 | subsections of Section 304, but not to exceed the | ||||||
7 | addition modification required to be made for the same | ||||||
8 | taxable year under Section 203(c)(2)(G-12) for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, to the same person. This subparagraph (U) | ||||||
11 | is exempt from the provisions of Section 250; | ||||||
12 | (V) An amount equal to the income from intangible | ||||||
13 | property taken into account for the taxable year (net | ||||||
14 | of the deductions allocable thereto) with respect to | ||||||
15 | transactions with (i) a foreign person who would be a | ||||||
16 | member of the taxpayer's unitary business group but for | ||||||
17 | the fact that the foreign person's business activity | ||||||
18 | outside the United States is 80% or more of that | ||||||
19 | person's total business activity and (ii) for taxable | ||||||
20 | years ending on or after December 31, 2008, to a person | ||||||
21 | who would be a member of the same unitary business | ||||||
22 | group but for the fact that the person is prohibited | ||||||
23 | under Section 1501(a)(27) from being included in the | ||||||
24 | unitary business group because he or she is ordinarily | ||||||
25 | required to apportion business income under different | ||||||
26 | subsections of Section 304, but not to exceed the |
| |||||||
| |||||||
1 | addition modification required to be made for the same | ||||||
2 | taxable year under Section 203(c)(2)(G-13) for | ||||||
3 | intangible expenses and costs paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to the same foreign | ||||||
5 | person. This subparagraph (V) is exempt from the | ||||||
6 | provisions of Section 250;
| ||||||
7 | (W) in the case of an estate, an amount equal to | ||||||
8 | all amounts included in such total pursuant to the | ||||||
9 | provisions of Section 111 of the Internal Revenue Code | ||||||
10 | as a recovery of items previously deducted by the | ||||||
11 | decedent from adjusted gross income in the computation | ||||||
12 | of taxable income. This subparagraph (W) is exempt from | ||||||
13 | Section 250; | ||||||
14 | (X) an amount equal to the refund included in such | ||||||
15 | total of any tax deducted for federal income tax | ||||||
16 | purposes, to the extent that deduction was added back | ||||||
17 | under subparagraph (F). This subparagraph (X) is | ||||||
18 | exempt from the provisions of Section 250; and | ||||||
19 | (Y) For taxable years ending on or after December | ||||||
20 | 31, 2011, in the case of a taxpayer who was required to | ||||||
21 | add back any insurance premiums under Section | ||||||
22 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
23 | that part of a reimbursement received from the | ||||||
24 | insurance company equal to the amount of the expense or | ||||||
25 | loss (including expenses incurred by the insurance | ||||||
26 | company) that would have been taken into account as a |
| |||||||
| |||||||
1 | deduction for federal income tax purposes if the | ||||||
2 | expense or loss had been uninsured. If a taxpayer makes | ||||||
3 | the election provided for by this subparagraph (Y), the | ||||||
4 | insurer to which the premiums were paid must add back | ||||||
5 | to income the amount subtracted by the taxpayer | ||||||
6 | pursuant to this subparagraph (Y). This subparagraph | ||||||
7 | (Y) is exempt from the provisions of Section 250. | ||||||
8 | (3) Limitation. The amount of any modification | ||||||
9 | otherwise required
under this subsection shall, under | ||||||
10 | regulations prescribed by the
Department, be adjusted by | ||||||
11 | any amounts included therein which were
properly paid, | ||||||
12 | credited, or required to be distributed, or permanently set
| ||||||
13 | aside for charitable purposes pursuant to Internal Revenue | ||||||
14 | Code Section
642(c) during the taxable year.
| ||||||
15 | (d) Partnerships. | ||||||
16 | (1) In general. In the case of a partnership, base | ||||||
17 | income means an
amount equal to the taxpayer's taxable | ||||||
18 | income for the taxable year as
modified by paragraph (2). | ||||||
19 | (2) Modifications. The taxable income referred to in | ||||||
20 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
21 | of the following amounts: | ||||||
22 | (A) An amount equal to all amounts paid or accrued | ||||||
23 | to the taxpayer as
interest or dividends during the | ||||||
24 | taxable year to the extent excluded from
gross income | ||||||
25 | in the computation of taxable income; |
| |||||||
| |||||||
1 | (B) An amount equal to the amount of tax imposed by | ||||||
2 | this Act to the
extent deducted from gross income for | ||||||
3 | the taxable year; | ||||||
4 | (C) The amount of deductions allowed to the | ||||||
5 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
6 | Revenue Code in calculating its taxable income; | ||||||
7 | (D) An amount equal to the amount of the capital | ||||||
8 | gain deduction
allowable under the Internal Revenue | ||||||
9 | Code, to the extent deducted from
gross income in the | ||||||
10 | computation of taxable income; | ||||||
11 | (D-5) For taxable years 2001 and thereafter, an | ||||||
12 | amount equal to the
bonus depreciation deduction taken | ||||||
13 | on the taxpayer's federal income tax return for the | ||||||
14 | taxable
year under subsection (k) of Section 168 of the | ||||||
15 | Internal Revenue Code; | ||||||
16 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
17 | or otherwise disposes of
property for which the | ||||||
18 | taxpayer was required in any taxable year to make an
| ||||||
19 | addition modification under subparagraph (D-5), then | ||||||
20 | an amount equal to the
aggregate amount of the | ||||||
21 | deductions taken in all taxable years
under | ||||||
22 | subparagraph (O) with respect to that property. | ||||||
23 | If the taxpayer continues to own property through | ||||||
24 | the last day of the last tax year for which the | ||||||
25 | taxpayer may claim a depreciation deduction for | ||||||
26 | federal income tax purposes and for which the taxpayer |
| |||||||
| |||||||
1 | was allowed in any taxable year to make a subtraction | ||||||
2 | modification under subparagraph (O), then an amount | ||||||
3 | equal to that subtraction modification.
| ||||||
4 | The taxpayer is required to make the addition | ||||||
5 | modification under this
subparagraph
only once with | ||||||
6 | respect to any one piece of property; | ||||||
7 | (D-7) An amount equal to the amount otherwise | ||||||
8 | allowed as a deduction in computing base income for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, (i) for taxable years ending on or after | ||||||
11 | December 31, 2004, to a foreign person who would be a | ||||||
12 | member of the same unitary business group but for the | ||||||
13 | fact the foreign person's business activity outside | ||||||
14 | the United States is 80% or more of the foreign | ||||||
15 | person's total business activity and (ii) for taxable | ||||||
16 | years ending on or after December 31, 2008, to a person | ||||||
17 | who would be a member of the same unitary business | ||||||
18 | group but for the fact that the person is prohibited | ||||||
19 | under Section 1501(a)(27) from being included in the | ||||||
20 | unitary business group because he or she is ordinarily | ||||||
21 | required to apportion business income under different | ||||||
22 | subsections of Section 304. The addition modification | ||||||
23 | required by this subparagraph shall be reduced to the | ||||||
24 | extent that dividends were included in base income of | ||||||
25 | the unitary group for the same taxable year and | ||||||
26 | received by the taxpayer or by a member of the |
| |||||||
| |||||||
1 | taxpayer's unitary business group (including amounts | ||||||
2 | included in gross income pursuant to Sections 951 | ||||||
3 | through 964 of the Internal Revenue Code and amounts | ||||||
4 | included in gross income under Section 78 of the | ||||||
5 | Internal Revenue Code) with respect to the stock of the | ||||||
6 | same person to whom the interest was paid, accrued, or | ||||||
7 | incurred.
| ||||||
8 | This paragraph shall not apply to the following:
| ||||||
9 | (i) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person who | ||||||
11 | is subject in a foreign country or state, other | ||||||
12 | than a state which requires mandatory unitary | ||||||
13 | reporting, to a tax on or measured by net income | ||||||
14 | with respect to such interest; or | ||||||
15 | (ii) an item of interest paid, accrued, or | ||||||
16 | incurred, directly or indirectly, to a person if | ||||||
17 | the taxpayer can establish, based on a | ||||||
18 | preponderance of the evidence, both of the | ||||||
19 | following: | ||||||
20 | (a) the person, during the same taxable | ||||||
21 | year, paid, accrued, or incurred, the interest | ||||||
22 | to a person that is not a related member, and | ||||||
23 | (b) the transaction giving rise to the | ||||||
24 | interest expense between the taxpayer and the | ||||||
25 | person did not have as a principal purpose the | ||||||
26 | avoidance of Illinois income tax, and is paid |
| |||||||
| |||||||
1 | pursuant to a contract or agreement that | ||||||
2 | reflects an arm's-length interest rate and | ||||||
3 | terms; or
| ||||||
4 | (iii) the taxpayer can establish, based on | ||||||
5 | clear and convincing evidence, that the interest | ||||||
6 | paid, accrued, or incurred relates to a contract or | ||||||
7 | agreement entered into at arm's-length rates and | ||||||
8 | terms and the principal purpose for the payment is | ||||||
9 | not federal or Illinois tax avoidance; or
| ||||||
10 | (iv) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer establishes by clear and convincing | ||||||
13 | evidence that the adjustments are unreasonable; or | ||||||
14 | if the taxpayer and the Director agree in writing | ||||||
15 | to the application or use of an alternative method | ||||||
16 | of apportionment under Section 304(f).
| ||||||
17 | Nothing in this subsection shall preclude the | ||||||
18 | Director from making any other adjustment | ||||||
19 | otherwise allowed under Section 404 of this Act for | ||||||
20 | any tax year beginning after the effective date of | ||||||
21 | this amendment provided such adjustment is made | ||||||
22 | pursuant to regulation adopted by the Department | ||||||
23 | and such regulations provide methods and standards | ||||||
24 | by which the Department will utilize its authority | ||||||
25 | under Section 404 of this Act; and
| ||||||
26 | (D-8) An amount equal to the amount of intangible |
| |||||||
| |||||||
1 | expenses and costs otherwise allowed as a deduction in | ||||||
2 | computing base income, and that were paid, accrued, or | ||||||
3 | incurred, directly or indirectly, (i) for taxable | ||||||
4 | years ending on or after December 31, 2004, to a | ||||||
5 | foreign person who would be a member of the same | ||||||
6 | unitary business group but for the fact that the | ||||||
7 | foreign person's business activity outside the United | ||||||
8 | States is 80% or more of that person's total business | ||||||
9 | activity and (ii) for taxable years ending on or after | ||||||
10 | December 31, 2008, to a person who would be a member of | ||||||
11 | the same unitary business group but for the fact that | ||||||
12 | the person is prohibited under Section 1501(a)(27) | ||||||
13 | from being included in the unitary business group | ||||||
14 | because he or she is ordinarily required to apportion | ||||||
15 | business income under different subsections of Section | ||||||
16 | 304. The addition modification required by this | ||||||
17 | subparagraph shall be reduced to the extent that | ||||||
18 | dividends were included in base income of the unitary | ||||||
19 | group for the same taxable year and received by the | ||||||
20 | taxpayer or by a member of the taxpayer's unitary | ||||||
21 | business group (including amounts included in gross | ||||||
22 | income pursuant to Sections 951 through 964 of the | ||||||
23 | Internal Revenue Code and amounts included in gross | ||||||
24 | income under Section 78 of the Internal Revenue Code) | ||||||
25 | with respect to the stock of the same person to whom | ||||||
26 | the intangible expenses and costs were directly or |
| |||||||
| |||||||
1 | indirectly paid, incurred or accrued. The preceding | ||||||
2 | sentence shall not apply to the extent that the same | ||||||
3 | dividends caused a reduction to the addition | ||||||
4 | modification required under Section 203(d)(2)(D-7) of | ||||||
5 | this Act. As used in this subparagraph, the term | ||||||
6 | "intangible expenses and costs" includes (1) expenses, | ||||||
7 | losses, and costs for, or related to, the direct or | ||||||
8 | indirect acquisition, use, maintenance or management, | ||||||
9 | ownership, sale, exchange, or any other disposition of | ||||||
10 | intangible property; (2) losses incurred, directly or | ||||||
11 | indirectly, from factoring transactions or discounting | ||||||
12 | transactions; (3) royalty, patent, technical, and | ||||||
13 | copyright fees; (4) licensing fees; and (5) other | ||||||
14 | similar expenses and costs. For purposes of this | ||||||
15 | subparagraph, "intangible property" includes patents, | ||||||
16 | patent applications, trade names, trademarks, service | ||||||
17 | marks, copyrights, mask works, trade secrets, and | ||||||
18 | similar types of intangible assets; | ||||||
19 | This paragraph shall not apply to the following: | ||||||
20 | (i) any item of intangible expenses or costs | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, from a transaction with a person who is | ||||||
23 | subject in a foreign country or state, other than a | ||||||
24 | state which requires mandatory unitary reporting, | ||||||
25 | to a tax on or measured by net income with respect | ||||||
26 | to such item; or |
| |||||||
| |||||||
1 | (ii) any item of intangible expense or cost | ||||||
2 | paid, accrued, or incurred, directly or | ||||||
3 | indirectly, if the taxpayer can establish, based | ||||||
4 | on a preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person during the same taxable | ||||||
7 | year paid, accrued, or incurred, the | ||||||
8 | intangible expense or cost to a person that is | ||||||
9 | not a related member, and | ||||||
10 | (b) the transaction giving rise to the | ||||||
11 | intangible expense or cost between the | ||||||
12 | taxpayer and the person did not have as a | ||||||
13 | principal purpose the avoidance of Illinois | ||||||
14 | income tax, and is paid pursuant to a contract | ||||||
15 | or agreement that reflects arm's-length terms; | ||||||
16 | or | ||||||
17 | (iii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, from a transaction with a person if the | ||||||
20 | taxpayer establishes by clear and convincing | ||||||
21 | evidence, that the adjustments are unreasonable; | ||||||
22 | or if the taxpayer and the Director agree in | ||||||
23 | writing to the application or use of an alternative | ||||||
24 | method of apportionment under Section 304(f);
| ||||||
25 | Nothing in this subsection shall preclude the | ||||||
26 | Director from making any other adjustment |
| |||||||
| |||||||
1 | otherwise allowed under Section 404 of this Act for | ||||||
2 | any tax year beginning after the effective date of | ||||||
3 | this amendment provided such adjustment is made | ||||||
4 | pursuant to regulation adopted by the Department | ||||||
5 | and such regulations provide methods and standards | ||||||
6 | by which the Department will utilize its authority | ||||||
7 | under Section 404 of this Act;
| ||||||
8 | (D-9) For taxable years ending on or after December | ||||||
9 | 31, 2008, an amount equal to the amount of insurance | ||||||
10 | premium expenses and costs otherwise allowed as a | ||||||
11 | deduction in computing base income, and that were paid, | ||||||
12 | accrued, or incurred, directly or indirectly, to a | ||||||
13 | person who would be a member of the same unitary | ||||||
14 | business group but for the fact that the person is | ||||||
15 | prohibited under Section 1501(a)(27) from being | ||||||
16 | included in the unitary business group because he or | ||||||
17 | she is ordinarily required to apportion business | ||||||
18 | income under different subsections of Section 304. The | ||||||
19 | addition modification required by this subparagraph | ||||||
20 | shall be reduced to the extent that dividends were | ||||||
21 | included in base income of the unitary group for the | ||||||
22 | same taxable year and received by the taxpayer or by a | ||||||
23 | member of the taxpayer's unitary business group | ||||||
24 | (including amounts included in gross income under | ||||||
25 | Sections 951 through 964 of the Internal Revenue Code | ||||||
26 | and amounts included in gross income under Section 78 |
| |||||||
| |||||||
1 | of the Internal Revenue Code) with respect to the stock | ||||||
2 | of the same person to whom the premiums and costs were | ||||||
3 | directly or indirectly paid, incurred, or accrued. The | ||||||
4 | preceding sentence does not apply to the extent that | ||||||
5 | the same dividends caused a reduction to the addition | ||||||
6 | modification required under Section 203(d)(2)(D-7) or | ||||||
7 | Section 203(d)(2)(D-8) of this Act; | ||||||
8 | (D-10) An amount equal to the credit allowable to | ||||||
9 | the taxpayer under Section 218(a) of this Act, | ||||||
10 | determined without regard to Section 218(c) of this | ||||||
11 | Act; | ||||||
12 | (D-11) For taxable years beginning on or after | ||||||
13 | January 1, 2017, an amount equal to the deduction | ||||||
14 | allowed under Section 199 of the Internal Revenue Code | ||||||
15 | for the taxable year; | ||||||
16 | and by deducting from the total so obtained the following | ||||||
17 | amounts: | ||||||
18 | (E) The valuation limitation amount; | ||||||
19 | (F) An amount equal to the amount of any tax | ||||||
20 | imposed by this Act which
was refunded to the taxpayer | ||||||
21 | and included in such total for the taxable year; | ||||||
22 | (G) An amount equal to all amounts included in | ||||||
23 | taxable income as
modified by subparagraphs (A), (B), | ||||||
24 | (C) and (D) which are exempt from
taxation by this | ||||||
25 | State either by reason of its statutes or Constitution | ||||||
26 | or
by reason of
the Constitution, treaties or statutes |
| |||||||
| |||||||
1 | of the United States;
provided that, in the case of any | ||||||
2 | statute of this State that exempts income
derived from | ||||||
3 | bonds or other obligations from the tax imposed under | ||||||
4 | this Act,
the amount exempted shall be the interest net | ||||||
5 | of bond premium amortization; | ||||||
6 | (H) Any income of the partnership which | ||||||
7 | constitutes personal service
income as defined in | ||||||
8 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
9 | in effect December 31, 1981) or a reasonable allowance | ||||||
10 | for compensation
paid or accrued for services rendered | ||||||
11 | by partners to the partnership,
whichever is greater; | ||||||
12 | this subparagraph (H) is exempt from the provisions of | ||||||
13 | Section 250; | ||||||
14 | (I) An amount equal to all amounts of income | ||||||
15 | distributable to an entity
subject to the Personal | ||||||
16 | Property Tax Replacement Income Tax imposed by
| ||||||
17 | subsections (c) and (d) of Section 201 of this Act | ||||||
18 | including amounts
distributable to organizations | ||||||
19 | exempt from federal income tax by reason of
Section | ||||||
20 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
21 | (I) is exempt from the provisions of Section 250; | ||||||
22 | (J) With the exception of any amounts subtracted | ||||||
23 | under subparagraph
(G),
an amount equal to the sum of | ||||||
24 | all amounts disallowed as deductions
by (i) Sections | ||||||
25 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
26 | and all amounts of expenses allocable to
interest and |
| |||||||
| |||||||
1 | disallowed as deductions by Section 265(1) of the | ||||||
2 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
3 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
4 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
5 | Code, plus, (iii) for taxable years ending on or after | ||||||
6 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
7 | Revenue Code and, for taxable years ending on or after | ||||||
8 | December 31, 2008, any amount included in gross income | ||||||
9 | under Section 87 of the Internal Revenue Code; the | ||||||
10 | provisions of this
subparagraph are exempt from the | ||||||
11 | provisions of Section 250; | ||||||
12 | (K) An amount equal to those dividends included in | ||||||
13 | such total which were
paid by a corporation which | ||||||
14 | conducts business operations in a River Edge | ||||||
15 | Redevelopment Zone or zones created under the River | ||||||
16 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
17 | all of its operations
from a River Edge Redevelopment | ||||||
18 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (L) An amount equal to any contribution made to a | ||||||
21 | job training project
established pursuant to the Real | ||||||
22 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
23 | (M) An amount equal to those dividends included in | ||||||
24 | such total
that were paid by a corporation that | ||||||
25 | conducts business operations in a
federally designated | ||||||
26 | Foreign Trade Zone or Sub-Zone and that is designated a
|
| |||||||
| |||||||
1 | High Impact Business located in Illinois; provided | ||||||
2 | that dividends eligible
for the deduction provided in | ||||||
3 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
4 | shall not be eligible for the deduction provided under | ||||||
5 | this
subparagraph (M); | ||||||
6 | (N) An amount equal to the amount of the deduction | ||||||
7 | used to compute the
federal income tax credit for | ||||||
8 | restoration of substantial amounts held under
claim of | ||||||
9 | right for the taxable year pursuant to Section 1341 of | ||||||
10 | the
Internal Revenue Code; | ||||||
11 | (O) For taxable years 2001 and thereafter, for the | ||||||
12 | taxable year in
which the bonus depreciation deduction
| ||||||
13 | is taken on the taxpayer's federal income tax return | ||||||
14 | under
subsection (k) of Section 168 of the Internal | ||||||
15 | Revenue Code and for each
applicable taxable year | ||||||
16 | thereafter, an amount equal to "x", where: | ||||||
17 | (1) "y" equals the amount of the depreciation | ||||||
18 | deduction taken for the
taxable year
on the | ||||||
19 | taxpayer's federal income tax return on property | ||||||
20 | for which the bonus
depreciation deduction
was | ||||||
21 | taken in any year under subsection (k) of Section | ||||||
22 | 168 of the Internal
Revenue Code, but not including | ||||||
23 | the bonus depreciation deduction; | ||||||
24 | (2) for taxable years ending on or before | ||||||
25 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
26 | and then divided by 70 (or "y"
multiplied by |
| |||||||
| |||||||
1 | 0.429); and | ||||||
2 | (3) for taxable years ending after December | ||||||
3 | 31, 2005: | ||||||
4 | (i) for property on which a bonus | ||||||
5 | depreciation deduction of 30% of the adjusted | ||||||
6 | basis was taken, "x" equals "y" multiplied by | ||||||
7 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
8 | 0.429); and | ||||||
9 | (ii) for property on which a bonus | ||||||
10 | depreciation deduction of 50% of the adjusted | ||||||
11 | basis was taken, "x" equals "y" multiplied by | ||||||
12 | 1.0. | ||||||
13 | The aggregate amount deducted under this | ||||||
14 | subparagraph in all taxable
years for any one piece of | ||||||
15 | property may not exceed the amount of the bonus
| ||||||
16 | depreciation deduction
taken on that property on the | ||||||
17 | taxpayer's federal income tax return under
subsection | ||||||
18 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
19 | subparagraph (O) is exempt from the provisions of | ||||||
20 | Section 250; | ||||||
21 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
22 | otherwise disposes of
property for which the taxpayer | ||||||
23 | was required in any taxable year to make an
addition | ||||||
24 | modification under subparagraph (D-5), then an amount | ||||||
25 | equal to that
addition modification. | ||||||
26 | If the taxpayer continues to own property through |
| |||||||
| |||||||
1 | the last day of the last tax year for which the | ||||||
2 | taxpayer may claim a depreciation deduction for | ||||||
3 | federal income tax purposes and for which the taxpayer | ||||||
4 | was required in any taxable year to make an addition | ||||||
5 | modification under subparagraph (D-5), then an amount | ||||||
6 | equal to that addition modification.
| ||||||
7 | The taxpayer is allowed to take the deduction under | ||||||
8 | this subparagraph
only once with respect to any one | ||||||
9 | piece of property. | ||||||
10 | This subparagraph (P) is exempt from the | ||||||
11 | provisions of Section 250; | ||||||
12 | (Q) The amount of (i) any interest income (net of | ||||||
13 | the deductions allocable thereto) taken into account | ||||||
14 | for the taxable year with respect to a transaction with | ||||||
15 | a taxpayer that is required to make an addition | ||||||
16 | modification with respect to such transaction under | ||||||
17 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
18 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
19 | the amount of such addition modification and
(ii) any | ||||||
20 | income from intangible property (net of the deductions | ||||||
21 | allocable thereto) taken into account for the taxable | ||||||
22 | year with respect to a transaction with a taxpayer that | ||||||
23 | is required to make an addition modification with | ||||||
24 | respect to such transaction under Section | ||||||
25 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
26 | 203(d)(2)(D-8), but not to exceed the amount of such |
| |||||||
| |||||||
1 | addition modification. This subparagraph (Q) is exempt | ||||||
2 | from Section 250;
| ||||||
3 | (R) An amount equal to the interest income taken | ||||||
4 | into account for the taxable year (net of the | ||||||
5 | deductions allocable thereto) with respect to | ||||||
6 | transactions with (i) a foreign person who would be a | ||||||
7 | member of the taxpayer's unitary business group but for | ||||||
8 | the fact that the foreign person's business activity | ||||||
9 | outside the United States is 80% or more of that | ||||||
10 | person's total business activity and (ii) for taxable | ||||||
11 | years ending on or after December 31, 2008, to a person | ||||||
12 | who would be a member of the same unitary business | ||||||
13 | group but for the fact that the person is prohibited | ||||||
14 | under Section 1501(a)(27) from being included in the | ||||||
15 | unitary business group because he or she is ordinarily | ||||||
16 | required to apportion business income under different | ||||||
17 | subsections of Section 304, but not to exceed the | ||||||
18 | addition modification required to be made for the same | ||||||
19 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
20 | paid, accrued, or incurred, directly or indirectly, to | ||||||
21 | the same person. This subparagraph (R) is exempt from | ||||||
22 | Section 250; | ||||||
23 | (S) An amount equal to the income from intangible | ||||||
24 | property taken into account for the taxable year (net | ||||||
25 | of the deductions allocable thereto) with respect to | ||||||
26 | transactions with (i) a foreign person who would be a |
| |||||||
| |||||||
1 | member of the taxpayer's unitary business group but for | ||||||
2 | the fact that the foreign person's business activity | ||||||
3 | outside the United States is 80% or more of that | ||||||
4 | person's total business activity and (ii) for taxable | ||||||
5 | years ending on or after December 31, 2008, to a person | ||||||
6 | who would be a member of the same unitary business | ||||||
7 | group but for the fact that the person is prohibited | ||||||
8 | under Section 1501(a)(27) from being included in the | ||||||
9 | unitary business group because he or she is ordinarily | ||||||
10 | required to apportion business income under different | ||||||
11 | subsections of Section 304, but not to exceed the | ||||||
12 | addition modification required to be made for the same | ||||||
13 | taxable year under Section 203(d)(2)(D-8) for | ||||||
14 | intangible expenses and costs paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to the same person. | ||||||
16 | This subparagraph (S) is exempt from Section 250; and
| ||||||
17 | (T) For taxable years ending on or after December | ||||||
18 | 31, 2011, in the case of a taxpayer who was required to | ||||||
19 | add back any insurance premiums under Section | ||||||
20 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
21 | that part of a reimbursement received from the | ||||||
22 | insurance company equal to the amount of the expense or | ||||||
23 | loss (including expenses incurred by the insurance | ||||||
24 | company) that would have been taken into account as a | ||||||
25 | deduction for federal income tax purposes if the | ||||||
26 | expense or loss had been uninsured. If a taxpayer makes |
| |||||||
| |||||||
1 | the election provided for by this subparagraph (T), the | ||||||
2 | insurer to which the premiums were paid must add back | ||||||
3 | to income the amount subtracted by the taxpayer | ||||||
4 | pursuant to this subparagraph (T). This subparagraph | ||||||
5 | (T) is exempt from the provisions of Section 250.
| ||||||
6 | (e) Gross income; adjusted gross income; taxable income. | ||||||
7 | (1) In general. Subject to the provisions of paragraph | ||||||
8 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
9 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
10 | gross income, or taxable income for
the taxable year shall | ||||||
11 | mean the amount of gross income, adjusted gross
income or | ||||||
12 | taxable income properly reportable for federal income tax
| ||||||
13 | purposes for the taxable year under the provisions of the | ||||||
14 | Internal
Revenue Code. Taxable income may be less than | ||||||
15 | zero. However, for taxable
years ending on or after | ||||||
16 | December 31, 1986, net operating loss
carryforwards from | ||||||
17 | taxable years ending prior to December 31, 1986, may not
| ||||||
18 | exceed the sum of federal taxable income for the taxable | ||||||
19 | year before net
operating loss deduction, plus the excess | ||||||
20 | of addition modifications over
subtraction modifications | ||||||
21 | for the taxable year. For taxable years ending
prior to | ||||||
22 | December 31, 1986, taxable income may never be an amount in | ||||||
23 | excess
of the net operating loss for the taxable year as | ||||||
24 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
25 | Internal Revenue Code, provided that when
taxable income of |
| |||||||
| |||||||
1 | a corporation (other than a Subchapter S corporation),
| ||||||
2 | trust, or estate is less than zero and addition | ||||||
3 | modifications, other than
those provided by subparagraph | ||||||
4 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
5 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
6 | trusts and estates, exceed subtraction modifications, an | ||||||
7 | addition
modification must be made under those | ||||||
8 | subparagraphs for any other taxable
year to which the | ||||||
9 | taxable income less than zero (net operating loss) is
| ||||||
10 | applied under Section 172 of the Internal Revenue Code or | ||||||
11 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
12 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
13 | Revenue Code. | ||||||
14 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
15 | subsection,
the taxable income properly reportable for | ||||||
16 | federal income tax purposes
shall mean: | ||||||
17 | (A) Certain life insurance companies. In the case | ||||||
18 | of a life
insurance company subject to the tax imposed | ||||||
19 | by Section 801 of the
Internal Revenue Code, life | ||||||
20 | insurance company taxable income, plus the
amount of | ||||||
21 | distribution from pre-1984 policyholder surplus | ||||||
22 | accounts as
calculated under Section 815a of the | ||||||
23 | Internal Revenue Code; | ||||||
24 | (B) Certain other insurance companies. In the case | ||||||
25 | of mutual
insurance companies subject to the tax | ||||||
26 | imposed by Section 831 of the
Internal Revenue Code, |
| |||||||
| |||||||
1 | insurance company taxable income; | ||||||
2 | (C) Regulated investment companies. In the case of | ||||||
3 | a regulated
investment company subject to the tax | ||||||
4 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
5 | investment company taxable income; | ||||||
6 | (D) Real estate investment trusts. In the case of a | ||||||
7 | real estate
investment trust subject to the tax imposed | ||||||
8 | by Section 857 of the
Internal Revenue Code, real | ||||||
9 | estate investment trust taxable income; | ||||||
10 | (E) Consolidated corporations. In the case of a | ||||||
11 | corporation which
is a member of an affiliated group of | ||||||
12 | corporations filing a consolidated
income tax return | ||||||
13 | for the taxable year for federal income tax purposes,
| ||||||
14 | taxable income determined as if such corporation had | ||||||
15 | filed a separate
return for federal income tax purposes | ||||||
16 | for the taxable year and each
preceding taxable year | ||||||
17 | for which it was a member of an affiliated group.
For | ||||||
18 | purposes of this subparagraph, the taxpayer's separate | ||||||
19 | taxable
income shall be determined as if the election | ||||||
20 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
21 | Code had been in effect for all such years; | ||||||
22 | (F) Cooperatives. In the case of a cooperative | ||||||
23 | corporation or
association, the taxable income of such | ||||||
24 | organization determined in
accordance with the | ||||||
25 | provisions of Section 1381 through 1388 of the
Internal | ||||||
26 | Revenue Code, but without regard to the prohibition |
| |||||||
| |||||||
1 | against offsetting losses from patronage activities | ||||||
2 | against income from nonpatronage activities; except | ||||||
3 | that a cooperative corporation or association may make | ||||||
4 | an election to follow its federal income tax treatment | ||||||
5 | of patronage losses and nonpatronage losses. In the | ||||||
6 | event such election is made, such losses shall be | ||||||
7 | computed and carried over in a manner consistent with | ||||||
8 | subsection (a) of Section 207 of this Act and | ||||||
9 | apportioned by the apportionment factor reported by | ||||||
10 | the cooperative on its Illinois income tax return filed | ||||||
11 | for the taxable year in which the losses are incurred. | ||||||
12 | The election shall be effective for all taxable years | ||||||
13 | with original returns due on or after the date of the | ||||||
14 | election. In addition, the cooperative may file an | ||||||
15 | amended return or returns, as allowed under this Act, | ||||||
16 | to provide that the election shall be effective for | ||||||
17 | losses incurred or carried forward for taxable years | ||||||
18 | occurring prior to the date of the election. Once made, | ||||||
19 | the election may only be revoked upon approval of the | ||||||
20 | Director. The Department shall adopt rules setting | ||||||
21 | forth requirements for documenting the elections and | ||||||
22 | any resulting Illinois net loss and the standards to be | ||||||
23 | used by the Director in evaluating requests to revoke | ||||||
24 | elections. Public Act 96-932 is declaratory of | ||||||
25 | existing law; | ||||||
26 | (G) Subchapter S corporations. In the case of: (i) |
| |||||||
| |||||||
1 | a Subchapter S
corporation for which there is in effect | ||||||
2 | an election for the taxable year
under Section 1362 of | ||||||
3 | the Internal Revenue Code, the taxable income of such
| ||||||
4 | corporation determined in accordance with Section | ||||||
5 | 1363(b) of the Internal
Revenue Code, except that | ||||||
6 | taxable income shall take into
account those items | ||||||
7 | which are required by Section 1363(b)(1) of the
| ||||||
8 | Internal Revenue Code to be separately stated; and (ii) | ||||||
9 | a Subchapter
S corporation for which there is in effect | ||||||
10 | a federal election to opt out of
the provisions of the | ||||||
11 | Subchapter S Revision Act of 1982 and have applied
| ||||||
12 | instead the prior federal Subchapter S rules as in | ||||||
13 | effect on July 1, 1982,
the taxable income of such | ||||||
14 | corporation determined in accordance with the
federal | ||||||
15 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
16 | (H) Partnerships. In the case of a partnership, | ||||||
17 | taxable income
determined in accordance with Section | ||||||
18 | 703 of the Internal Revenue Code,
except that taxable | ||||||
19 | income shall take into account those items which are
| ||||||
20 | required by Section 703(a)(1) to be separately stated | ||||||
21 | but which would be
taken into account by an individual | ||||||
22 | in calculating his taxable income. | ||||||
23 | (3) Recapture of business expenses on disposition of | ||||||
24 | asset or business. Notwithstanding any other law to the | ||||||
25 | contrary, if in prior years income from an asset or | ||||||
26 | business has been classified as business income and in a |
| |||||||
| |||||||
1 | later year is demonstrated to be non-business income, then | ||||||
2 | all expenses, without limitation, deducted in such later | ||||||
3 | year and in the 2 immediately preceding taxable years | ||||||
4 | related to that asset or business that generated the | ||||||
5 | non-business income shall be added back and recaptured as | ||||||
6 | business income in the year of the disposition of the asset | ||||||
7 | or business. Such amount shall be apportioned to Illinois | ||||||
8 | using the greater of the apportionment fraction computed | ||||||
9 | for the business under Section 304 of this Act for the | ||||||
10 | taxable year or the average of the apportionment fractions | ||||||
11 | computed for the business under Section 304 of this Act for | ||||||
12 | the taxable year and for the 2 immediately preceding | ||||||
13 | taxable years.
| ||||||
14 | (f) Valuation limitation amount. | ||||||
15 | (1) In general. The valuation limitation amount | ||||||
16 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
17 | (d)(2) (E) is an amount equal to: | ||||||
18 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
19 | amounts (to the
extent consisting of gain reportable | ||||||
20 | under the provisions of Section
1245 or 1250 of the | ||||||
21 | Internal Revenue Code) for all property in respect
of | ||||||
22 | which such gain was reported for the taxable year; plus | ||||||
23 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
24 | 1969 appreciation
amounts (to the extent consisting of | ||||||
25 | capital gain) for all property in
respect of which such |
| |||||||
| |||||||
1 | gain was reported for federal income tax purposes
for | ||||||
2 | the taxable year, or (ii) the net capital gain for the | ||||||
3 | taxable year,
reduced in either case by any amount of | ||||||
4 | such gain included in the amount
determined under | ||||||
5 | subsection (a) (2) (F) or (c) (2) (H). | ||||||
6 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
7 | (A) If the fair market value of property referred | ||||||
8 | to in paragraph
(1) was readily ascertainable on August | ||||||
9 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
10 | such property is the lesser of (i) the excess of
such | ||||||
11 | fair market value over the taxpayer's basis (for | ||||||
12 | determining gain)
for such property on that date | ||||||
13 | (determined under the Internal Revenue
Code as in | ||||||
14 | effect on that date), or (ii) the total gain realized | ||||||
15 | and
reportable for federal income tax purposes in | ||||||
16 | respect of the sale,
exchange or other disposition of | ||||||
17 | such property. | ||||||
18 | (B) If the fair market value of property referred | ||||||
19 | to in paragraph
(1) was not readily ascertainable on | ||||||
20 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
21 | amount for such property is that amount which bears
the | ||||||
22 | same ratio to the total gain reported in respect of the | ||||||
23 | property for
federal income tax purposes for the | ||||||
24 | taxable year, as the number of full
calendar months in | ||||||
25 | that part of the taxpayer's holding period for the
| ||||||
26 | property ending July 31, 1969 bears to the number of |
| |||||||
| |||||||
1 | full calendar
months in the taxpayer's entire holding | ||||||
2 | period for the
property. | ||||||
3 | (C) The Department shall prescribe such | ||||||
4 | regulations as may be
necessary to carry out the | ||||||
5 | purposes of this paragraph.
| ||||||
6 | (g) Double deductions. Unless specifically provided | ||||||
7 | otherwise, nothing
in this Section shall permit the same item | ||||||
8 | to be deducted more than once.
| ||||||
9 | (h) Legislative intention. Except as expressly provided by | ||||||
10 | this
Section there shall be no modifications or limitations on | ||||||
11 | the amounts
of income, gain, loss or deduction taken into | ||||||
12 | account in determining
gross income, adjusted gross income or | ||||||
13 | taxable income for federal income
tax purposes for the taxable | ||||||
14 | year, or in the amount of such items
entering into the | ||||||
15 | computation of base income and net income under this
Act for | ||||||
16 | such taxable year, whether in respect of property values as of
| ||||||
17 | August 1, 1969 or otherwise. | ||||||
18 | (Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198, | ||||||
19 | eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09; | ||||||
20 | 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff. | ||||||
21 | 6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507, | ||||||
22 | eff. 8-23-11; 97-905, eff. 8-7-12.)
| ||||||
23 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
|
| |||||||
| |||||||
1 | Sec. 204. Standard Exemption.
| ||||||
2 | (a) Allowance of exemption. In computing net income under | ||||||
3 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
4 | amounts determined under
subsections (b), (c) and (d), | ||||||
5 | multiplied by a fraction the numerator of which
is the amount | ||||||
6 | of the taxpayer's base income allocable to this State for the
| ||||||
7 | taxable year and the denominator of which is the taxpayer's | ||||||
8 | total base income
for the taxable year.
| ||||||
9 | (b) Basic amount. For the purpose of subsection (a) of this | ||||||
10 | Section,
except as provided by subsection (a) of Section 205 | ||||||
11 | and in this
subsection, each taxpayer shall be allowed a basic | ||||||
12 | amount of $1000, except
that for corporations the basic amount | ||||||
13 | shall be zero for tax years ending on
or
after December 31, | ||||||
14 | 2003, and for individuals the basic amount shall be:
| ||||||
15 | (1) for taxable years ending on or after December 31, | ||||||
16 | 1998 and prior to
December 31, 1999, $1,300;
| ||||||
17 | (2) for taxable years ending on or after December 31, | ||||||
18 | 1999 and prior to
December 31, 2000, $1,650;
| ||||||
19 | (3) for taxable years ending on or after December 31, | ||||||
20 | 2000 and prior to December 31, 2012, $2,000;
| ||||||
21 | (4) for taxable years ending on or after December 31, | ||||||
22 | 2012 and prior to December 31, 2013, $2,050; | ||||||
23 | (5) for taxable years ending on or after December 31, | ||||||
24 | 2013, $2,050 plus the cost-of-living adjustment under | ||||||
25 | subsection (d-5). | ||||||
26 | For taxable years ending on or after December 31, 1992, a |
| |||||||
| |||||||
1 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
2 | and who is claimed as a dependent
on another person's tax | ||||||
3 | return under the Internal Revenue Code shall
not be allowed any | ||||||
4 | basic amount under this subsection.
| ||||||
5 | (c) Additional amount for individuals. In the case of an | ||||||
6 | individual
taxpayer, there shall be allowed for the purpose of | ||||||
7 | subsection (a), in
addition to the basic amount provided by | ||||||
8 | subsection (b), an additional
exemption equal to the basic | ||||||
9 | amount for each
exemption in excess of one
allowable to such | ||||||
10 | individual taxpayer for the taxable year under Section
151 of | ||||||
11 | the Internal Revenue Code.
| ||||||
12 | (d) Additional exemptions for an individual taxpayer and | ||||||
13 | his or her
spouse. In the case of an individual taxpayer and | ||||||
14 | his or her spouse, he or
she shall each be allowed additional | ||||||
15 | exemptions as follows:
| ||||||
16 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
17 | years of age or older.
| ||||||
18 | (A) For taxpayer. An additional exemption of | ||||||
19 | $1,000 for the taxpayer if
he or she has attained the | ||||||
20 | age of 65 before the end of the taxable year.
| ||||||
21 | (B) For spouse when a joint return is not filed. An | ||||||
22 | additional
exemption of $1,000 for the spouse of the | ||||||
23 | taxpayer if a joint return is not
made by the taxpayer | ||||||
24 | and his spouse, and if the spouse has attained the age
| ||||||
25 | of 65 before the end of such taxable year, and, for the | ||||||
26 | calendar year in
which the taxable year of the taxpayer |
| |||||||
| |||||||
1 | begins, has no gross income and is
not the dependent of | ||||||
2 | another taxpayer.
| ||||||
3 | (2) Additional exemption for blindness of taxpayer or | ||||||
4 | spouse.
| ||||||
5 | (A) For taxpayer. An additional exemption of | ||||||
6 | $1,000 for the taxpayer if
he or she is blind at the | ||||||
7 | end of the taxable year.
| ||||||
8 | (B) For spouse when a joint return is not filed. An | ||||||
9 | additional
exemption of $1,000 for the spouse of the | ||||||
10 | taxpayer if a separate return is made
by the taxpayer, | ||||||
11 | and if the spouse is blind and, for the calendar year | ||||||
12 | in which
the taxable year of the taxpayer begins, has | ||||||
13 | no gross income and is not the
dependent of another | ||||||
14 | taxpayer. For purposes of this paragraph, the
| ||||||
15 | determination of whether the spouse is blind shall be | ||||||
16 | made as of the end of the
taxable year of the taxpayer; | ||||||
17 | except that if the spouse dies during such
taxable year | ||||||
18 | such determination shall be made as of the time of such | ||||||
19 | death.
| ||||||
20 | (C) Blindness defined. For purposes of this | ||||||
21 | subsection, an individual
is blind only if his or her | ||||||
22 | central visual acuity does not exceed 20/200 in
the | ||||||
23 | better eye with correcting lenses, or if his or her | ||||||
24 | visual acuity is
greater than 20/200 but is accompanied | ||||||
25 | by a limitation in the fields of
vision such that the | ||||||
26 | widest diameter of the visual fields subtends an angle
|
| |||||||
| |||||||
1 | no greater than 20 degrees.
| ||||||
2 | (d-5) Cost-of-living adjustment. For purposes of item (5) | ||||||
3 | of subsection (b), the cost-of-living adjustment for any | ||||||
4 | calendar year and for taxable years ending prior to the end of | ||||||
5 | the subsequent calendar year is equal to $2,050 times the | ||||||
6 | percentage (if any) by which: | ||||||
7 | (1) the Consumer Price Index for the preceding calendar | ||||||
8 | year, exceeds | ||||||
9 | (2) the Consumer Price Index for the calendar year | ||||||
10 | 2011. | ||||||
11 | The Consumer Price Index for any calendar year is the | ||||||
12 | average of the Consumer Price Index as of the close of the | ||||||
13 | 12-month period ending on August 31 of that calendar year. | ||||||
14 | The term "Consumer Price Index" means the last Consumer | ||||||
15 | Price Index for All Urban Consumers published by the United | ||||||
16 | States Department of Labor or any successor agency. | ||||||
17 | If any cost-of-living adjustment is not a multiple of $25, | ||||||
18 | that adjustment shall be rounded to the next lowest multiple of | ||||||
19 | $25. | ||||||
20 | (e) Cross reference. See Article 3 for the manner of | ||||||
21 | determining
base income allocable to this State.
| ||||||
22 | (f) Application of Section 250. Section 250 does not apply | ||||||
23 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
24 | (g) Notwithstanding any other provision of law, for taxable | ||||||
25 | years beginning on or after January 1, 2018, no taxpayer may | ||||||
26 | claim an exemption under this Section if the taxpayer's |
| |||||||
| |||||||
1 | adjusted gross income for the taxable year exceeds (i) | ||||||
2 | $500,000, in the case of spouses filing a joint federal tax | ||||||
3 | return or (ii) $250,000, in the case of all other taxpayers. | ||||||
4 | (Source: P.A. 97-507, eff. 8-23-11; 97-652, eff. 6-1-12 .)
| ||||||
5 | (35 ILCS 5/208) (from Ch. 120, par. 2-208)
| ||||||
6 | Sec. 208. Tax credit for residential real property taxes. | ||||||
7 | Beginning with tax years ending on or after December 31, 1991,
| ||||||
8 | every individual taxpayer shall be entitled to a tax credit | ||||||
9 | equal
to 5% of real property taxes paid by such taxpayer during | ||||||
10 | the
taxable year on the principal residence of the taxpayer. In | ||||||
11 | the
case of multi-unit or multi-use structures and farm | ||||||
12 | dwellings,
the taxes on the taxpayer's principal residence | ||||||
13 | shall be that
portion of the total taxes which is attributable | ||||||
14 | to such principal
residence. Notwithstanding any other | ||||||
15 | provision of law, for taxable years beginning on or after | ||||||
16 | January 1, 2018, no taxpayer may claim a credit under this | ||||||
17 | Section if the taxpayer's adjusted gross income for the taxable | ||||||
18 | year exceeds (i) $500,000, in the case of spouses filing a | ||||||
19 | joint federal tax return, or (ii) $250,000, in the case of all | ||||||
20 | other taxpayers.
| ||||||
21 | (Source: P.A. 87-17.)
| ||||||
22 | (35 ILCS 5/212)
| ||||||
23 | Sec. 212. Earned income tax credit.
| ||||||
24 | (a) With respect to the federal earned income tax credit |
| |||||||
| |||||||
1 | allowed for the
taxable year under Section 32 of the federal | ||||||
2 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||
3 | is entitled to a credit against the tax imposed by
subsections | ||||||
4 | (a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||||||
5 | federal tax credit for each taxable year beginning on or after
| ||||||
6 | January 1,
2000 and ending prior to December 31, 2012, (ii) | ||||||
7 | 7.5% of the federal tax credit for each taxable year beginning | ||||||
8 | on or after January 1, 2012 and ending prior to December 31, | ||||||
9 | 2013, and (iii) 10% of the federal tax credit for each taxable | ||||||
10 | year beginning on or after January 1, 2013 and beginning prior | ||||||
11 | to January 1, 2017, and (iv) 15% of the federal tax credit for | ||||||
12 | each taxable year beginning on or after January 1, 2017 .
| ||||||
13 | For a non-resident or part-year resident, the amount of the | ||||||
14 | credit under this
Section shall be in proportion to the amount | ||||||
15 | of income attributable to this
State.
| ||||||
16 | (b) For taxable years beginning before January 1, 2003, in | ||||||
17 | no event
shall a credit under this Section reduce the | ||||||
18 | taxpayer's
liability to less than zero. For each taxable year | ||||||
19 | beginning on or after
January 1, 2003, if the amount of the | ||||||
20 | credit exceeds the income tax liability
for the applicable tax | ||||||
21 | year, then the excess credit shall be refunded to the
taxpayer. | ||||||
22 | The amount of a refund shall not be included in the taxpayer's
| ||||||
23 | income or resources for the purposes of determining eligibility | ||||||
24 | or benefit
level in any means-tested benefit program | ||||||
25 | administered by a governmental entity
unless required by | ||||||
26 | federal law.
|
| |||||||
| |||||||
1 | (c) This Section is exempt from the provisions of Section | ||||||
2 | 250.
| ||||||
3 | (Source: P.A. 97-652, eff. 6-1-12 .)
| ||||||
4 | (35 ILCS 5/222) | ||||||
5 | Sec. 222. Live theater production credit. | ||||||
6 | (a) For tax years beginning on or after January 1, 2012 and | ||||||
7 | beginning prior to January 1, 2027 , a taxpayer who has received | ||||||
8 | a tax credit award under the Live Theater Production Tax Credit | ||||||
9 | Act is entitled to a credit against the taxes imposed under | ||||||
10 | subsections (a) and (b) of Section 201 of this Act in an amount | ||||||
11 | determined under that Act by the Department of Commerce and | ||||||
12 | Economic Opportunity. | ||||||
13 | (b) If the taxpayer is a partnership, limited liability | ||||||
14 | partnership, limited liability company, or Subchapter S | ||||||
15 | corporation, the tax credit award is allowed to the partners, | ||||||
16 | unit holders, or shareholders in accordance with the | ||||||
17 | determination of income and distributive share of income under | ||||||
18 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
19 | Code. | ||||||
20 | (c) A sale, assignment, or transfer of the tax credit award | ||||||
21 | may be made by the taxpayer earning the credit within one year | ||||||
22 | after the credit is awarded in accordance with rules adopted by | ||||||
23 | the Department of Commerce and Economic Opportunity. | ||||||
24 | (d) The Department of Revenue, in cooperation with the | ||||||
25 | Department of Commerce and Economic Opportunity, shall adopt |
| |||||||
| |||||||
1 | rules to enforce and administer the provisions of this Section. | ||||||
2 | (e) The tax credit award may not be carried back. If the | ||||||
3 | amount of the credit exceeds the tax liability for the year, | ||||||
4 | the excess may be carried forward and applied to the tax | ||||||
5 | liability of the 5 tax years following the excess credit year. | ||||||
6 | The tax credit award shall be applied to the earliest year for | ||||||
7 | which there is a tax liability. If there are credits from more | ||||||
8 | than one tax year that are available to offset liability, the | ||||||
9 | earlier credit shall be applied first. In no event may a credit | ||||||
10 | under this Section reduce the taxpayer's liability to less than | ||||||
11 | zero.
| ||||||
12 | (Source: P.A. 97-636, eff. 6-1-12 .)
| ||||||
13 | (35 ILCS 5/225 new) | ||||||
14 | Sec. 225. Credit for instructional materials and supplies. | ||||||
15 | For taxable years beginning on and after January 1, 2017, a | ||||||
16 | taxpayer shall be allowed a credit in the amount paid by the | ||||||
17 | taxpayer during the taxable year for instructional materials | ||||||
18 | and supplies with respect to classroom based instruction in a | ||||||
19 | qualified school, or $250, whichever is less, provided that the | ||||||
20 | taxpayer is a teacher, instructor, counselor, principal, or | ||||||
21 | aide in a qualified school for at least 900 hours during a | ||||||
22 | school year. | ||||||
23 | The credit may not be carried back and may not reduce the | ||||||
24 | taxpayer's liability to less than zero. If the amount of the | ||||||
25 | credit exceeds the tax liability for the year, the excess may |
| |||||||
| |||||||
1 | be carried forward and applied to the tax liability of the 5 | ||||||
2 | taxable years following the excess credit year. The tax credit | ||||||
3 | shall be applied to the earliest year for which there is a tax | ||||||
4 | liability. If there are credits for more than one year that are | ||||||
5 | available to offset a liability, the earlier credit shall be | ||||||
6 | applied first. | ||||||
7 | For purposes of this Section, the term "materials and | ||||||
8 | supplies" means amounts paid for instructional materials or | ||||||
9 | supplies that are designated for classroom use in any qualified | ||||||
10 | school. For purposes of this Section, the term "qualified | ||||||
11 | school" means a public school or non-public school located in | ||||||
12 | Illinois. | ||||||
13 | This Section is exempt from the provisions of Section 250.
| ||||||
14 | (35 ILCS 5/804) (from Ch. 120, par. 8-804)
| ||||||
15 | Sec. 804. Failure to Pay Estimated Tax.
| ||||||
16 | (a) In general. In case of any underpayment of estimated | ||||||
17 | tax by a
taxpayer, except as provided in subsection (d) or (e), | ||||||
18 | the taxpayer shall
be liable to a penalty in an amount | ||||||
19 | determined at the rate prescribed by
Section 3-3 of the Uniform | ||||||
20 | Penalty and Interest Act upon the amount of the
underpayment | ||||||
21 | (determined under subsection (b)) for each required | ||||||
22 | installment.
| ||||||
23 | (b) Amount of underpayment. For purposes of subsection (a), | ||||||
24 | the
amount of the underpayment shall be the excess of:
| ||||||
25 | (1) the amount of the installment which would be |
| |||||||
| |||||||
1 | required to be paid
under subsection (c), over
| ||||||
2 | (2) the amount, if any, of the installment paid on or | ||||||
3 | before the
last date prescribed for payment.
| ||||||
4 | (c) Amount of Required Installments.
| ||||||
5 | (1) Amount.
| ||||||
6 | (A) In General. Except as provided in paragraphs | ||||||
7 | (2) and (3), the amount of any
required installment | ||||||
8 | shall be 25% of the required annual payment.
| ||||||
9 | (B) Required Annual Payment. For purposes of | ||||||
10 | subparagraph (A),
the term "required annual payment" | ||||||
11 | means the lesser of:
| ||||||
12 | (i) 90% of the tax shown on the return for the | ||||||
13 | taxable year, or
if no return is filed, 90% of the | ||||||
14 | tax for such year;
| ||||||
15 | (ii) for installments due prior to February 1, | ||||||
16 | 2011, and after January 31, 2012, 100% of the tax | ||||||
17 | shown on the return of the taxpayer for the
| ||||||
18 | preceding taxable year if a return showing a | ||||||
19 | liability for tax was filed by
the taxpayer for the | ||||||
20 | preceding taxable year and such preceding year was | ||||||
21 | a
taxable year of 12 months; or
| ||||||
22 | (iii) for installments due after January 31, | ||||||
23 | 2011, and prior to February 1, 2012, 150% of the | ||||||
24 | tax shown on the return of the taxpayer for the | ||||||
25 | preceding taxable year if a return showing a | ||||||
26 | liability for tax was filed by the taxpayer for the |
| |||||||
| |||||||
1 | preceding taxable year and such preceding year was | ||||||
2 | a taxable year of 12 months.
| ||||||
3 | (2) Lower Required Installment where Annualized Income | ||||||
4 | Installment is Less
Than Amount Determined Under Paragraph | ||||||
5 | (1).
| ||||||
6 | (A) In General. In the case of any required | ||||||
7 | installment if a taxpayer
establishes that the | ||||||
8 | annualized income installment is less than the amount
| ||||||
9 | determined under paragraph (1),
| ||||||
10 | (i) the amount of such required installment | ||||||
11 | shall be the annualized
income installment, and
| ||||||
12 | (ii) any reduction in a required installment | ||||||
13 | resulting from the
application of this | ||||||
14 | subparagraph shall be recaptured by increasing the
| ||||||
15 | amount of the next required installment determined | ||||||
16 | under paragraph (1) by
the amount of such | ||||||
17 | reduction, and by increasing subsequent required
| ||||||
18 | installments to the extent that the reduction has | ||||||
19 | not previously been
recaptured under this clause.
| ||||||
20 | (B) Determination of Annualized Income | ||||||
21 | Installment. In the case of
any required installment, | ||||||
22 | the annualized income installment is the
excess, if | ||||||
23 | any, of:
| ||||||
24 | (i) an amount equal to the applicable | ||||||
25 | percentage of the tax for the
taxable year computed | ||||||
26 | by placing on an annualized basis the net income |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | for
months in the taxable year ending before the | |||||||||||||||||||||||||
2 | due date for the installment, over
| |||||||||||||||||||||||||
3 | (ii) the aggregate amount of any prior | |||||||||||||||||||||||||
4 | required installments for
the taxable year.
| |||||||||||||||||||||||||
5 | (C) Applicable Percentage.
| |||||||||||||||||||||||||
| ||||||||||||||||||||||||||
12 | (D) Annualized Net Income; Individuals. For | |||||||||||||||||||||||||
13 | individuals, net
income shall be placed on an | |||||||||||||||||||||||||
14 | annualized basis by:
| |||||||||||||||||||||||||
15 | (i) multiplying by 12, or in the case of a | |||||||||||||||||||||||||
16 | taxable year of
less than 12 months, by the number | |||||||||||||||||||||||||
17 | of months in the taxable year, the
net income | |||||||||||||||||||||||||
18 | computed without regard to the standard exemption | |||||||||||||||||||||||||
19 | for the months
in the taxable
year ending before | |||||||||||||||||||||||||
20 | the month in which the installment is required to | |||||||||||||||||||||||||
21 | be paid;
| |||||||||||||||||||||||||
22 | (ii) dividing the resulting amount by the | |||||||||||||||||||||||||
23 | number of months in the
taxable year ending before | |||||||||||||||||||||||||
24 | the month in which such installment date falls; and
| |||||||||||||||||||||||||
25 | (iii) deducting from such amount the standard | |||||||||||||||||||||||||
26 | exemption allowable for
the taxable year, such |
| |||||||
| |||||||
1 | standard exemption being determined as of the last
| ||||||
2 | date prescribed for payment of the installment.
| ||||||
3 | (E) Annualized Net Income; Corporations. For | ||||||
4 | corporations,
net income shall be placed on an | ||||||
5 | annualized basis by multiplying
by 12 the taxable | ||||||
6 | income
| ||||||
7 | (i) for the first 3 months of the taxable year, | ||||||
8 | in the case of the
installment required to be paid | ||||||
9 | in the 4th month,
| ||||||
10 | (ii) for the first 3 months or for the first 5 | ||||||
11 | months of the taxable
year, in the case of the | ||||||
12 | installment required to be paid in the 6th month,
| ||||||
13 | (iii) for the first 6 months or for the first 8 | ||||||
14 | months of the taxable
year, in the case of the | ||||||
15 | installment required to be paid in the 9th month, | ||||||
16 | and
| ||||||
17 | (iv) for the first 9 months or for the first 11 | ||||||
18 | months of the taxable
year, in the case of the | ||||||
19 | installment required to be paid in the 12th month
| ||||||
20 | of the taxable year,
| ||||||
21 | then dividing the resulting amount by the number of | ||||||
22 | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | ||||||
23 | case may be).
| ||||||
24 | (3) Notwithstanding any other provision of this | ||||||
25 | subsection (c), in the case of a federally regulated | ||||||
26 | exchange that elects to apportion its income under Section |
| |||||||
| |||||||
1 | 304(c-1) of this Act, the amount of each required | ||||||
2 | installment due prior to June 30 of the first taxable year | ||||||
3 | to which the election applies shall be 25% of the tax that | ||||||
4 | would have been shown on the return for that taxable year | ||||||
5 | if the taxpayer had not made such election. | ||||||
6 | (d) Exceptions. Notwithstanding the provisions of the | ||||||
7 | preceding
subsections, the penalty imposed by subsection (a) | ||||||
8 | shall not
be imposed if the taxpayer was not required to file | ||||||
9 | an Illinois income
tax return for the preceding taxable year, | ||||||
10 | or, for individuals, if the
taxpayer had no tax liability for | ||||||
11 | the preceding taxable year and such year
was a taxable year of | ||||||
12 | 12 months.
The penalty imposed by subsection (a) shall
also not | ||||||
13 | be imposed on any underpayments of estimated tax due before the
| ||||||
14 | effective date of this amendatory Act of 1998 which | ||||||
15 | underpayments are solely
attributable to the change in | ||||||
16 | apportionment from subsection (a) to subsection
(h) of Section | ||||||
17 | 304. The provisions of this amendatory Act of 1998 apply to tax
| ||||||
18 | years ending on or after December 31, 1998.
| ||||||
19 | (e) The penalty imposed for underpayment of estimated tax | ||||||
20 | by subsection
(a) of this Section shall not be imposed to the | ||||||
21 | extent that the Director
or his or her designate determines, | ||||||
22 | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | ||||||
23 | that the penalty should not be imposed.
| ||||||
24 | (f) Definition of tax. For purposes of subsections (b) and | ||||||
25 | (c),
the term "tax" means the excess of the tax imposed under | ||||||
26 | Article 2 of
this Act, over the amounts credited against such |
| |||||||
| |||||||
1 | tax under Sections
601(b) (3) and (4).
| ||||||
2 | (g) Application of Section in case of tax withheld under | ||||||
3 | Article 7.
For purposes of applying this Section:
| ||||||
4 | (1) tax
withheld from compensation for the taxable year | ||||||
5 | shall be deemed a payment
of estimated tax, and an equal | ||||||
6 | part of such amount shall be deemed paid
on each | ||||||
7 | installment date for such taxable year, unless the taxpayer
| ||||||
8 | establishes the dates on which all amounts were actually | ||||||
9 | withheld, in
which case the amounts so withheld shall be | ||||||
10 | deemed payments of estimated
tax on the dates on which such | ||||||
11 | amounts were actually withheld;
| ||||||
12 | (2) amounts timely paid by a partnership, Subchapter S | ||||||
13 | corporation, or trust on behalf of a partner, shareholder, | ||||||
14 | or beneficiary pursuant to subsection (f) of Section 502 or | ||||||
15 | Section 709.5 and claimed as a payment of estimated tax | ||||||
16 | shall be deemed a payment of estimated tax made on the last | ||||||
17 | day of the taxable year of the partnership, Subchapter S | ||||||
18 | corporation, or trust for which the income from the | ||||||
19 | withholding is made was computed; and | ||||||
20 | (3) all other amounts pursuant to Article 7 shall be | ||||||
21 | deemed a payment of estimated tax on the date the payment | ||||||
22 | is made to the taxpayer of the amount from which the tax is | ||||||
23 | withheld.
| ||||||
24 | (g-5) Amounts withheld under the State Salary and Annuity | ||||||
25 | Withholding
Act. An individual who has amounts withheld under | ||||||
26 | paragraph (10) of Section 4
of the State Salary and Annuity |
| |||||||
| |||||||
1 | Withholding Act may elect to have those amounts
treated as | ||||||
2 | payments of estimated tax made on the dates on which those | ||||||
3 | amounts
are actually withheld.
| ||||||
4 | (g-10) Notwithstanding any other provision of law, no | ||||||
5 | penalty shall apply with respect to an underpayment of | ||||||
6 | estimated tax for the first, second, or third quarter of any | ||||||
7 | taxable year beginning on or after January 1, 2017 and | ||||||
8 | beginning prior to January 1, 2018 if (i) the underpayment was | ||||||
9 | due to the changes made by this amendatory Act of the 100th | ||||||
10 | General Assembly, (ii) the payment was otherwise timely made, | ||||||
11 | and (iii) the balance due is included with the taxpayer's | ||||||
12 | estimated tax payment for the fourth quarter. | ||||||
13 | (i) Short taxable year. The application of this Section to
| ||||||
14 | taxable years of less than 12 months shall be in accordance | ||||||
15 | with
regulations prescribed by the Department.
| ||||||
16 | The changes in this Section made by Public Act 84-127 shall | ||||||
17 | apply to
taxable years ending on or after January 1, 1986.
| ||||||
18 | (Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11; | ||||||
19 | 97-636, eff. 6-1-12 .)
| ||||||
20 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
21 | Sec. 901. Collection authority. | ||||||
22 | (a) In general. | ||||||
23 | The Department shall collect the taxes imposed by this Act. | ||||||
24 | The Department
shall collect certified past due child support | ||||||
25 | amounts under Section 2505-650
of the Department of Revenue Law |
| |||||||
| |||||||
1 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | ||||||
2 | (e), (f), (g), and (h) of this Section, money collected
| ||||||
3 | pursuant to subsections (a) and (b) of Section 201 of this Act | ||||||
4 | shall be
paid into the General Revenue Fund in the State | ||||||
5 | treasury; money
collected pursuant to subsections (c) and (d) | ||||||
6 | of Section 201 of this Act
shall be paid into the Personal | ||||||
7 | Property Tax Replacement Fund, a special
fund in the State | ||||||
8 | Treasury; and money collected under Section 2505-650 of the
| ||||||
9 | Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| ||||||
10 | into the
Child Support Enforcement Trust Fund, a special fund | ||||||
11 | outside the State
Treasury, or
to the State
Disbursement Unit | ||||||
12 | established under Section 10-26 of the Illinois Public Aid
| ||||||
13 | Code, as directed by the Department of Healthcare and Family | ||||||
14 | Services. | ||||||
15 | (b) Local Government Distributive Fund. | ||||||
16 | Beginning August 1, 1969, and continuing through June 30, | ||||||
17 | 1994, the Treasurer
shall transfer each month from the General | ||||||
18 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
19 | known as the "Local Government Distributive Fund", an
amount | ||||||
20 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
21 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
22 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
23 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
24 | from the General Revenue Fund to the Local Government
| ||||||
25 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
26 | realized from the
tax imposed by subsections (a) and (b) of |
| |||||||
| |||||||
1 | Section 201 of this Act during the
preceding month. Beginning | ||||||
2 | July 1, 1995 and continuing through January 31, 2011, the | ||||||
3 | Treasurer shall transfer each
month from the General Revenue | ||||||
4 | Fund to the Local Government Distributive Fund
an amount equal | ||||||
5 | to the net of (i) 1/10 of the net revenue realized from the
tax | ||||||
6 | imposed by
subsections (a) and (b) of Section 201 of the | ||||||
7 | Illinois Income Tax Act during
the preceding month
(ii) minus, | ||||||
8 | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||||||
9 | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||||||
10 | and continuing through January 31, 2015, the Treasurer shall | ||||||
11 | transfer each month from the General Revenue Fund to the Local | ||||||
12 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
13 | 6% (10% of the ratio of the 3% individual income tax rate prior | ||||||
14 | to 2011 to the 5% individual income tax rate after 2010) of the | ||||||
15 | net revenue realized from the tax imposed by subsections (a) | ||||||
16 | and (b) of Section 201 of this Act upon individuals, trusts, | ||||||
17 | and estates during the preceding month and (ii) 6.86% (10% of | ||||||
18 | the ratio of the 4.8% corporate income tax rate prior to 2011 | ||||||
19 | to the 7% corporate income tax rate after 2010) of the net | ||||||
20 | revenue realized from the tax imposed by subsections (a) and | ||||||
21 | (b) of Section 201 of this Act upon corporations during the | ||||||
22 | preceding month. Beginning February 1, 2015 and continuing | ||||||
23 | through January 31, 2017 January 31, 2025 , the Treasurer shall | ||||||
24 | transfer each month from the General Revenue Fund to the Local | ||||||
25 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
26 | 8% (10% of the ratio of the 3% individual income tax rate prior |
| |||||||
| |||||||
1 | to 2011 to the 3.75% individual income tax rate after 2014) of | ||||||
2 | the net revenue realized from the tax imposed by subsections | ||||||
3 | (a) and (b) of Section 201 of this Act upon individuals, | ||||||
4 | trusts, and estates during the preceding month and (ii) 9.14% | ||||||
5 | (10% of the ratio of the 4.8% corporate income tax rate prior | ||||||
6 | to 2011 to the 5.25% corporate income tax rate after 2014) of | ||||||
7 | the net revenue realized from the tax imposed by subsections | ||||||
8 | (a) and (b) of Section 201 of this Act upon corporations during | ||||||
9 | the preceding month. Beginning February 1, 2017 February 1, | ||||||
10 | 2025 , the Treasurer shall transfer each month from the General | ||||||
11 | Revenue Fund to the Local Government Distributive Fund an | ||||||
12 | amount equal to the sum of (i) 6.06% 9.23% (10% of the ratio of | ||||||
13 | the 3% individual income tax rate prior to 2011 to the 4.95% | ||||||
14 | 3.25% individual income tax rate beginning in 2017 after 2024 ) | ||||||
15 | of the net revenue realized from the tax imposed by subsections | ||||||
16 | (a) and (b) of Section 201 of this Act upon individuals, | ||||||
17 | trusts, and estates during the preceding month and (ii) 6.86% | ||||||
18 | (10% of the ratio of the 4.8% corporate income tax rate prior | ||||||
19 | to 2011 to the 7% corporate income tax rate beginning in 2017) | ||||||
20 | 10% of the net revenue realized from the tax imposed by | ||||||
21 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
22 | corporations during the preceding month. Net revenue realized | ||||||
23 | for a month shall be defined as the
revenue from the tax | ||||||
24 | imposed by subsections (a) and (b) of Section 201 of this
Act | ||||||
25 | which is deposited in the General Revenue Fund, the Education | ||||||
26 | Assistance
Fund, the Income Tax Surcharge Local Government |
| |||||||
| |||||||
1 | Distributive Fund, the Fund for the Advancement of Education, | ||||||
2 | and the Commitment to Human Services Fund during the
month | ||||||
3 | minus the amount paid out of the General Revenue Fund in State | ||||||
4 | warrants
during that same month as refunds to taxpayers for | ||||||
5 | overpayment of liability
under the tax imposed by subsections | ||||||
6 | (a) and (b) of Section 201 of this Act. | ||||||
7 | Beginning on August 26, 2014 (the effective date of Public | ||||||
8 | Act 98-1052), the Comptroller shall perform the transfers | ||||||
9 | required by this subsection (b) no later than 60 days after he | ||||||
10 | or she receives the certification from the Treasurer as | ||||||
11 | provided in Section 1 of the State Revenue Sharing Act. | ||||||
12 | (c) Deposits Into Income Tax Refund Fund. | ||||||
13 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
14 | Department shall
deposit a percentage of the amounts | ||||||
15 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
16 | (3), of Section 201 of this Act into a fund in the State
| ||||||
17 | treasury known as the Income Tax Refund Fund. The | ||||||
18 | Department shall deposit 6%
of such amounts during the | ||||||
19 | period beginning January 1, 1989 and ending on June
30, | ||||||
20 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
21 | fiscal year
thereafter, the percentage deposited into the | ||||||
22 | Income Tax Refund Fund during a
fiscal year shall be the | ||||||
23 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
24 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||||||
25 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
26 | Annual Percentage shall be 11.7%. Upon the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 93rd General Assembly, the | ||||||
2 | Annual Percentage shall be 10% for fiscal year 2005. For | ||||||
3 | fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||||||
4 | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||||||
5 | fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||||||
6 | fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||||||
7 | fiscal year 2010, the Annual Percentage shall be 9.75%. For | ||||||
8 | fiscal year 2011, the Annual Percentage shall be 8.75%. For | ||||||
9 | fiscal year 2012, the Annual Percentage shall be 8.75%. For | ||||||
10 | fiscal year 2013, the Annual Percentage shall be 9.75%. For | ||||||
11 | fiscal year 2014, the Annual Percentage shall be 9.5%. For | ||||||
12 | fiscal year 2015, the Annual Percentage shall be 10%. For | ||||||
13 | all other
fiscal years, the
Annual Percentage shall be | ||||||
14 | calculated as a fraction, the numerator of which
shall be | ||||||
15 | the amount of refunds approved for payment by the | ||||||
16 | Department during
the preceding fiscal year as a result of | ||||||
17 | overpayment of tax liability under
subsections (a) and | ||||||
18 | (b)(1), (2), and (3) of Section 201 of this Act plus the
| ||||||
19 | amount of such refunds remaining approved but unpaid at the | ||||||
20 | end of the
preceding fiscal year, minus the amounts | ||||||
21 | transferred into the Income Tax
Refund Fund from the | ||||||
22 | Tobacco Settlement Recovery Fund, and
the denominator of | ||||||
23 | which shall be the amounts which will be collected pursuant
| ||||||
24 | to subsections (a) and (b)(1), (2), and (3) of Section 201 | ||||||
25 | of this Act during
the preceding fiscal year; except that | ||||||
26 | in State fiscal year 2002, the Annual
Percentage shall in |
| |||||||
| |||||||
1 | no event exceed 7.6%. The Director of Revenue shall
certify | ||||||
2 | the Annual Percentage to the Comptroller on the last | ||||||
3 | business day of
the fiscal year immediately preceding the | ||||||
4 | fiscal year for which it is to be
effective. | ||||||
5 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
6 | Department shall
deposit a percentage of the amounts | ||||||
7 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
8 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
9 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
10 | Department shall deposit 18% of such amounts during the
| ||||||
11 | period beginning January 1, 1989 and ending on June 30, | ||||||
12 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
13 | fiscal year thereafter, the
percentage deposited into the | ||||||
14 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
15 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
16 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
17 | the Annual Percentage shall be 27%. For fiscal year
2004, | ||||||
18 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
19 | of this amendatory Act of the 93rd General Assembly, the | ||||||
20 | Annual Percentage shall be 24% for fiscal year 2005.
For | ||||||
21 | fiscal year 2006, the Annual Percentage shall be 20%. For | ||||||
22 | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||||||
23 | fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||||||
24 | fiscal year 2009, the Annual Percentage shall be 17.5%. For | ||||||
25 | fiscal year 2010, the Annual Percentage shall be 17.5%. For | ||||||
26 | fiscal year 2011, the Annual Percentage shall be 17.5%. For |
| |||||||
| |||||||
1 | fiscal year 2012, the Annual Percentage shall be 17.5%. For | ||||||
2 | fiscal year 2013, the Annual Percentage shall be 14%. For | ||||||
3 | fiscal year 2014, the Annual Percentage shall be 13.4%. For | ||||||
4 | fiscal year 2015, the Annual Percentage shall be 14%. For | ||||||
5 | all other fiscal years, the Annual
Percentage shall be | ||||||
6 | calculated
as a fraction, the numerator of which shall be | ||||||
7 | the amount of refunds
approved for payment by the | ||||||
8 | Department during the preceding fiscal year as
a result of | ||||||
9 | overpayment of tax liability under subsections (a) and | ||||||
10 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||||||
11 | Act plus the
amount of such refunds remaining approved but | ||||||
12 | unpaid at the end of the
preceding fiscal year, and the | ||||||
13 | denominator of
which shall be the amounts which will be | ||||||
14 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
15 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
16 | preceding fiscal year; except that in State fiscal year | ||||||
17 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
18 | The Director of Revenue shall
certify the Annual Percentage | ||||||
19 | to the Comptroller on the last business day of
the fiscal | ||||||
20 | year immediately preceding the fiscal year for which it is | ||||||
21 | to be
effective. | ||||||
22 | (3) The Comptroller shall order transferred and the | ||||||
23 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
24 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
25 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
26 | (iii) $35,000,000 in January, 2003. |
| |||||||
| |||||||
1 | (d) Expenditures from Income Tax Refund Fund. | ||||||
2 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
3 | Refund Fund
shall be expended exclusively for the purpose | ||||||
4 | of paying refunds resulting
from overpayment of tax | ||||||
5 | liability under Section 201 of this Act, for paying
rebates | ||||||
6 | under Section 208.1 in the event that the amounts in the | ||||||
7 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
8 | purpose,
and for
making transfers pursuant to this | ||||||
9 | subsection (d). | ||||||
10 | (2) The Director shall order payment of refunds | ||||||
11 | resulting from
overpayment of tax liability under Section | ||||||
12 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
13 | extent that amounts collected pursuant
to Section 201 of | ||||||
14 | this Act and transfers pursuant to this subsection (d)
and | ||||||
15 | item (3) of subsection (c) have been deposited and retained | ||||||
16 | in the
Fund. | ||||||
17 | (3) As soon as possible after the end of each fiscal | ||||||
18 | year, the Director
shall
order transferred and the State | ||||||
19 | Treasurer and State Comptroller shall
transfer from the | ||||||
20 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
21 | Replacement Fund an amount, certified by the Director to | ||||||
22 | the Comptroller,
equal to the excess of the amount | ||||||
23 | collected pursuant to subsections (c) and
(d) of Section | ||||||
24 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
25 | during the fiscal year over the amount of refunds resulting | ||||||
26 | from
overpayment of tax liability under subsections (c) and |
| |||||||
| |||||||
1 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
2 | Refund Fund during the fiscal year. | ||||||
3 | (4) As soon as possible after the end of each fiscal | ||||||
4 | year, the Director shall
order transferred and the State | ||||||
5 | Treasurer and State Comptroller shall
transfer from the | ||||||
6 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
7 | Refund Fund an amount, certified by the Director to the | ||||||
8 | Comptroller, equal
to the excess of the amount of refunds | ||||||
9 | resulting from overpayment of tax
liability under | ||||||
10 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
11 | from the Income Tax Refund Fund during the fiscal year over | ||||||
12 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
13 | Section 201 of this Act
deposited into the Income Tax | ||||||
14 | Refund Fund during the fiscal year. | ||||||
15 | (4.5) As soon as possible after the end of fiscal year | ||||||
16 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
17 | order transferred and the State Treasurer and
State | ||||||
18 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
19 | to the General
Revenue Fund any surplus remaining in the | ||||||
20 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
21 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
22 | attributable to transfers under item (3) of subsection (c) | ||||||
23 | less refunds
resulting from the earned income tax credit. | ||||||
24 | (5) This Act shall constitute an irrevocable and | ||||||
25 | continuing
appropriation from the Income Tax Refund Fund | ||||||
26 | for the purpose of paying
refunds upon the order of the |
| |||||||
| |||||||
1 | Director in accordance with the provisions of
this Section. | ||||||
2 | (e) Deposits into the Education Assistance Fund and the | ||||||
3 | Income Tax
Surcharge Local Government Distributive Fund. | ||||||
4 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
5 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
6 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
7 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
8 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
9 | January 31, 1993, of the amounts collected pursuant to
| ||||||
10 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
11 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
12 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
13 | Local Government Distributive Fund in the State
Treasury. | ||||||
14 | Beginning February 1, 1993 and continuing through June 30, | ||||||
15 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
16 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
17 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
18 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
19 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
20 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
21 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
22 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
23 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
24 | Local Government Distributive Fund in the State Treasury. | ||||||
25 | (f) Deposits into the Fund for the Advancement of | ||||||
26 | Education. Beginning February 1, 2015, the Department shall |
| |||||||
| |||||||
1 | deposit the following portions of the revenue realized from the | ||||||
2 | tax imposed upon individuals, trusts, and estates by | ||||||
3 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
4 | preceding month, minus deposits into the Income Tax Refund | ||||||
5 | Fund, into the Fund for the Advancement of Education: | ||||||
6 | (1) beginning February 1, 2015, and prior to February | ||||||
7 | 1, 2025, 1/30; and | ||||||
8 | (2) beginning February 1, 2025, 1/26. | ||||||
9 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
10 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
11 | the Department shall not make the deposits required by this | ||||||
12 | subsection (f) on or after the effective date of the reduction. | ||||||
13 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
14 | Beginning February 1, 2015, the Department shall deposit the | ||||||
15 | following portions of the revenue realized from the tax imposed | ||||||
16 | upon individuals, trusts, and estates by subsections (a) and | ||||||
17 | (b) of Section 201 of this Act during the preceding month, | ||||||
18 | minus deposits into the Income Tax Refund Fund, into the | ||||||
19 | Commitment to Human Services Fund: | ||||||
20 | (1) beginning February 1, 2015, and prior to February | ||||||
21 | 1, 2025, 1/30; and | ||||||
22 | (2) beginning February 1, 2025, 1/26. | ||||||
23 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
24 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
25 | the Department shall not make the deposits required by this | ||||||
26 | subsection (g) on or after the effective date of the reduction. |
| |||||||
| |||||||
1 | (h) Deposits into the Tax Compliance and Administration | ||||||
2 | Fund. Beginning on the first day of the first calendar month to | ||||||
3 | occur on or after August 26, 2014 (the effective date of Public | ||||||
4 | Act 98-1098), each month the Department shall pay into the Tax | ||||||
5 | Compliance and Administration Fund, to be used, subject to | ||||||
6 | appropriation, to fund additional auditors and compliance | ||||||
7 | personnel at the Department, an amount equal to 1/12 of 5% of | ||||||
8 | the cash receipts collected during the preceding fiscal year by | ||||||
9 | the Audit Bureau of the Department from the tax imposed by | ||||||
10 | subsections (a), (b), (c), and (d) of Section 201 of this Act, | ||||||
11 | net of deposits into the Income Tax Refund Fund made from those | ||||||
12 | cash receipts. | ||||||
13 | (Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; | ||||||
14 | 98-1052, eff. 8-26-14; 98-1098, eff. 8-26-14; 99-78, eff. | ||||||
15 | 7-20-15.)
| ||||||
16 | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||||||
17 | Sec. 1501. Definitions.
| ||||||
18 | (a) In general. When used in this Act, where not
otherwise | ||||||
19 | distinctly expressed or manifestly incompatible with the | ||||||
20 | intent
thereof:
| ||||||
21 | (1) Business income. The term "business income" means | ||||||
22 | all income that may be treated as apportionable business | ||||||
23 | income under the Constitution of the United States. | ||||||
24 | Business income is net of the deductions allocable thereto. | ||||||
25 | Such term does not include compensation
or the deductions |
| |||||||
| |||||||
1 | allocable thereto.
For each taxable year beginning on or | ||||||
2 | after January 1, 2003, a taxpayer may
elect to treat all | ||||||
3 | income other than compensation as business income. This
| ||||||
4 | election shall be made in accordance with rules adopted by | ||||||
5 | the Department and,
once made, shall be irrevocable.
| ||||||
6 | (1.5) Captive real estate investment trust:
| ||||||
7 | (A) The term "captive real estate investment | ||||||
8 | trust" means a corporation, trust, or association:
| ||||||
9 | (i) that is considered a real estate | ||||||
10 | investment trust for the taxable year under | ||||||
11 | Section 856 of the Internal Revenue Code;
| ||||||
12 | (ii) the certificates of beneficial interest | ||||||
13 | or shares of which are not regularly traded on an | ||||||
14 | established securities market; and | ||||||
15 | (iii) of which more than 50% of the voting | ||||||
16 | power or value of the beneficial interest or | ||||||
17 | shares, at any time during the last half of the | ||||||
18 | taxable year, is owned or controlled, directly, | ||||||
19 | indirectly, or constructively, by a single | ||||||
20 | corporation. | ||||||
21 | (B) The term "captive real estate investment | ||||||
22 | trust" does not include: | ||||||
23 | (i) a real estate investment trust of which | ||||||
24 | more than 50% of the voting power or value of the | ||||||
25 | beneficial interest or shares is owned or | ||||||
26 | controlled, directly, indirectly, or |
| |||||||
| |||||||
1 | constructively, by: | ||||||
2 | (a) a real estate investment trust, other | ||||||
3 | than a captive real estate investment trust; | ||||||
4 | (b) a person who is exempt from taxation | ||||||
5 | under Section 501 of the Internal Revenue Code, | ||||||
6 | and who is not required to treat income | ||||||
7 | received from the real estate investment trust | ||||||
8 | as unrelated business taxable income under | ||||||
9 | Section 512 of the Internal Revenue Code; | ||||||
10 | (c) a listed Australian property trust, if | ||||||
11 | no more than 50% of the voting power or value | ||||||
12 | of the beneficial interest or shares of that | ||||||
13 | trust, at any time during the last half of the | ||||||
14 | taxable year, is owned or controlled, directly | ||||||
15 | or indirectly, by a single person; | ||||||
16 | (d) an entity organized as a trust, | ||||||
17 | provided a listed Australian property trust | ||||||
18 | described in subparagraph (c) owns or | ||||||
19 | controls, directly or indirectly, or | ||||||
20 | constructively, 75% or more of the voting power | ||||||
21 | or value of the beneficial interests or shares | ||||||
22 | of such entity; or | ||||||
23 | (e) an entity that is organized outside of | ||||||
24 | the laws of the United States and that | ||||||
25 | satisfies all of the following criteria: | ||||||
26 | (1) at least 75% of the entity's total |
| |||||||
| |||||||
1 | asset value at the close of its taxable | ||||||
2 | year is represented by real estate assets | ||||||
3 | (as defined in Section 856(c)(5)(B) of the | ||||||
4 | Internal Revenue Code, thereby including | ||||||
5 | shares or certificates of beneficial | ||||||
6 | interest in any real estate investment | ||||||
7 | trust), cash and cash equivalents, and | ||||||
8 | U.S. Government securities; | ||||||
9 | (2) the entity is not subject to tax on | ||||||
10 | amounts that are distributed to its | ||||||
11 | beneficial owners or is exempt from | ||||||
12 | entity-level taxation; | ||||||
13 | (3) the entity distributes at least | ||||||
14 | 85% of its taxable income (as computed in | ||||||
15 | the jurisdiction in which it is organized) | ||||||
16 | to the holders of its shares or | ||||||
17 | certificates of beneficial interest on an | ||||||
18 | annual basis; | ||||||
19 | (4) either (i) the shares or | ||||||
20 | beneficial interests of the entity are | ||||||
21 | regularly traded on an established | ||||||
22 | securities market or (ii) not more than 10% | ||||||
23 | of the voting power or value in the entity | ||||||
24 | is held, directly, indirectly, or | ||||||
25 | constructively, by a single entity or | ||||||
26 | individual; and |
| |||||||
| |||||||
1 | (5) the entity is organized in a | ||||||
2 | country that has entered into a tax treaty | ||||||
3 | with the United States; or | ||||||
4 | (ii) during its first taxable year for which it | ||||||
5 | elects to be treated as a real estate investment | ||||||
6 | trust under Section 856(c)(1) of the Internal | ||||||
7 | Revenue Code, a real estate investment trust the | ||||||
8 | certificates of beneficial interest or shares of | ||||||
9 | which are not regularly traded on an established | ||||||
10 | securities market, but only if the certificates of | ||||||
11 | beneficial interest or shares of the real estate | ||||||
12 | investment trust are regularly traded on an | ||||||
13 | established securities market prior to the earlier | ||||||
14 | of the due date (including extensions) for filing | ||||||
15 | its return under this Act for that first taxable | ||||||
16 | year or the date it actually files that return. | ||||||
17 | (C) For the purposes of this subsection (1.5), the | ||||||
18 | constructive ownership rules prescribed under Section | ||||||
19 | 318(a) of the Internal Revenue Code, as modified by | ||||||
20 | Section 856(d)(5) of the Internal Revenue Code, apply | ||||||
21 | in determining the ownership of stock, assets, or net | ||||||
22 | profits of any person.
| ||||||
23 | (D) For the purposes of this item (1.5), for | ||||||
24 | taxable years ending on or after August 16, 2007, the | ||||||
25 | voting power or value of the beneficial interest or | ||||||
26 | shares of a real estate investment trust does not |
| |||||||
| |||||||
1 | include any voting power or value of beneficial | ||||||
2 | interest or shares in a real estate investment trust | ||||||
3 | held directly or indirectly in a segregated asset | ||||||
4 | account by a life insurance company (as described in | ||||||
5 | Section 817 of the Internal Revenue Code) to the extent | ||||||
6 | such voting power or value is for the benefit of | ||||||
7 | entities or persons who are either immune from taxation | ||||||
8 | or exempt from taxation under subtitle A of the | ||||||
9 | Internal Revenue Code.
| ||||||
10 | (2) Commercial domicile. The term "commercial | ||||||
11 | domicile" means the
principal
place from which the trade or | ||||||
12 | business of the taxpayer is directed or managed.
| ||||||
13 | (3) Compensation. The term "compensation" means wages, | ||||||
14 | salaries,
commissions
and any other form of remuneration | ||||||
15 | paid to employees for personal services.
| ||||||
16 | (4) Corporation. The term "corporation" includes | ||||||
17 | associations, joint-stock
companies, insurance companies | ||||||
18 | and cooperatives. Any entity, including a
limited | ||||||
19 | liability company formed under the Illinois Limited | ||||||
20 | Liability Company
Act, shall be treated as a corporation if | ||||||
21 | it is so classified for federal
income tax purposes.
| ||||||
22 | (5) Department. The term "Department" means the | ||||||
23 | Department of Revenue of
this State.
| ||||||
24 | (6) Director. The term "Director" means the Director of | ||||||
25 | Revenue of this
State.
| ||||||
26 | (7) Fiduciary. The term "fiduciary" means a guardian, |
| |||||||
| |||||||
1 | trustee, executor,
administrator, receiver, or any person | ||||||
2 | acting in any fiduciary capacity for any
person.
| ||||||
3 | (8) Financial organization.
| ||||||
4 | (A) The term "financial organization" means
any
| ||||||
5 | bank, bank holding company, trust company, savings | ||||||
6 | bank, industrial bank,
land bank, safe deposit | ||||||
7 | company, private banker, savings and loan association,
| ||||||
8 | building and loan association, credit union, currency | ||||||
9 | exchange, cooperative
bank, small loan company, sales | ||||||
10 | finance company, investment company, or any
person | ||||||
11 | which is owned by a bank or bank holding company. For | ||||||
12 | the purpose of
this Section a "person" will include | ||||||
13 | only those persons which a bank holding
company may | ||||||
14 | acquire and hold an interest in, directly or | ||||||
15 | indirectly, under the
provisions of the Bank Holding | ||||||
16 | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||||||
17 | where interests in any person must be disposed of | ||||||
18 | within certain
required time limits under the Bank | ||||||
19 | Holding Company Act of 1956.
| ||||||
20 | (B) For purposes of subparagraph (A) of this | ||||||
21 | paragraph, the term
"bank" includes (i) any entity that | ||||||
22 | is regulated by the Comptroller of the
Currency under | ||||||
23 | the National Bank Act, or by the Federal Reserve Board, | ||||||
24 | or by
the
Federal Deposit Insurance Corporation and | ||||||
25 | (ii) any federally or State chartered
bank
operating as | ||||||
26 | a credit card bank.
|
| |||||||
| |||||||
1 | (C) For purposes of subparagraph (A) of this | ||||||
2 | paragraph, the term
"sales finance company" has the | ||||||
3 | meaning provided in the following item (i) or
(ii):
| ||||||
4 | (i) A person primarily engaged in one or more | ||||||
5 | of the following
businesses: the business of | ||||||
6 | purchasing customer receivables, the business
of | ||||||
7 | making loans upon the security of customer | ||||||
8 | receivables, the
business of making loans for the | ||||||
9 | express purpose of funding purchases of
tangible | ||||||
10 | personal property or services by the borrower, or | ||||||
11 | the business of
finance leasing. For purposes of | ||||||
12 | this item (i), "customer receivable"
means:
| ||||||
13 | (a) a retail installment contract or | ||||||
14 | retail charge agreement within
the
meaning
of | ||||||
15 | the Sales Finance Agency Act, the Retail | ||||||
16 | Installment Sales Act, or the
Motor Vehicle | ||||||
17 | Retail Installment Sales Act;
| ||||||
18 | (b) an installment, charge, credit, or | ||||||
19 | similar contract or agreement
arising from
the | ||||||
20 | sale of tangible personal property or services | ||||||
21 | in a transaction involving
a deferred payment | ||||||
22 | price payable in one or more installments | ||||||
23 | subsequent
to the sale; or
| ||||||
24 | (c) the outstanding balance of a contract | ||||||
25 | or agreement described in
provisions
(a) or (b) | ||||||
26 | of this item (i).
|
| |||||||
| |||||||
1 | A customer receivable need not provide for | ||||||
2 | payment of interest on
deferred
payments. A sales | ||||||
3 | finance company may purchase a customer receivable | ||||||
4 | from, or
make a loan secured by a customer | ||||||
5 | receivable to, the seller in the original
| ||||||
6 | transaction or to a person who purchased the | ||||||
7 | customer receivable directly or
indirectly from | ||||||
8 | that seller.
| ||||||
9 | (ii) A corporation meeting each of the | ||||||
10 | following criteria:
| ||||||
11 | (a) the corporation must be a member of an | ||||||
12 | "affiliated group" within
the
meaning of | ||||||
13 | Section 1504(a) of the Internal Revenue Code, | ||||||
14 | determined
without regard to Section 1504(b) | ||||||
15 | of the Internal Revenue Code;
| ||||||
16 | (b) more than 50% of the gross income of | ||||||
17 | the corporation for the
taxable
year
must be | ||||||
18 | interest income derived from qualifying loans. | ||||||
19 | A "qualifying
loan" is a loan made to a member | ||||||
20 | of the corporation's affiliated group that
| ||||||
21 | originates customer receivables (within the | ||||||
22 | meaning of item (i)) or to whom
customer | ||||||
23 | receivables originated by a member of the | ||||||
24 | affiliated group have been
transferred, to
the | ||||||
25 | extent the average outstanding balance of | ||||||
26 | loans from that corporation
to members of its |
| |||||||
| |||||||
1 | affiliated group during the taxable year do not | ||||||
2 | exceed
the limitation amount for that | ||||||
3 | corporation. The "limitation amount" for a
| ||||||
4 | corporation is the average outstanding | ||||||
5 | balances during the taxable year of
customer | ||||||
6 | receivables (within the meaning of item (i)) | ||||||
7 | originated by
all members of the affiliated | ||||||
8 | group.
If the average outstanding balances of | ||||||
9 | the
loans made by a corporation to members of | ||||||
10 | its affiliated group exceed the
limitation | ||||||
11 | amount, the interest income of that | ||||||
12 | corporation from qualifying
loans shall be | ||||||
13 | equal to its interest income from loans to | ||||||
14 | members of its
affiliated groups times a | ||||||
15 | fraction equal to the limitation amount | ||||||
16 | divided by
the average outstanding balances of | ||||||
17 | the loans made by that corporation to
members | ||||||
18 | of its affiliated group;
| ||||||
19 | (c) the total of all shareholder's equity | ||||||
20 | (including, without
limitation,
paid-in
| ||||||
21 | capital on common and preferred stock and | ||||||
22 | retained earnings) of the
corporation plus the | ||||||
23 | total of all of its loans, advances, and other
| ||||||
24 | obligations payable or owed to members of its | ||||||
25 | affiliated group may not
exceed 20% of the | ||||||
26 | total assets of the corporation at any time |
| |||||||
| |||||||
1 | during the tax
year; and
| ||||||
2 | (d) more than 50% of all interest-bearing | ||||||
3 | obligations of the
affiliated group payable to | ||||||
4 | persons outside the group determined in | ||||||
5 | accordance
with generally accepted accounting | ||||||
6 | principles must be obligations of the
| ||||||
7 | corporation.
| ||||||
8 | This amendatory Act of the 91st General Assembly is | ||||||
9 | declaratory of
existing
law.
| ||||||
10 | (D) Subparagraphs
(B) and (C) of this paragraph are | ||||||
11 | declaratory of
existing law and apply retroactively, | ||||||
12 | for all tax years beginning on or before
December 31, | ||||||
13 | 1996,
to all original returns, to all amended returns | ||||||
14 | filed no later than 30
days after the effective date of | ||||||
15 | this amendatory Act of 1996, and to all
notices issued | ||||||
16 | on or before the effective date of this amendatory Act | ||||||
17 | of 1996
under subsection (a) of Section 903, subsection | ||||||
18 | (a) of Section 904,
subsection (e) of Section 909, or | ||||||
19 | Section 912.
A taxpayer that is a "financial | ||||||
20 | organization" that engages in any transaction
with an | ||||||
21 | affiliate shall be a "financial organization" for all | ||||||
22 | purposes of this
Act.
| ||||||
23 | (E) For all tax years beginning on or
before | ||||||
24 | December 31, 1996, a taxpayer that falls within the | ||||||
25 | definition
of a
"financial organization" under | ||||||
26 | subparagraphs (B) or (C) of this paragraph, but
who |
| |||||||
| |||||||
1 | does
not fall within the definition of a "financial | ||||||
2 | organization" under the Proposed
Regulations issued by | ||||||
3 | the Department of Revenue on July 19, 1996, may
| ||||||
4 | irrevocably elect to apply the Proposed Regulations | ||||||
5 | for all of those years as
though the Proposed | ||||||
6 | Regulations had been lawfully promulgated, adopted, | ||||||
7 | and in
effect for all of those years. For purposes of | ||||||
8 | applying subparagraphs (B) or
(C) of
this
paragraph to | ||||||
9 | all of those years, the election allowed by this | ||||||
10 | subparagraph
applies only to the taxpayer making the | ||||||
11 | election and to those members of the
taxpayer's unitary | ||||||
12 | business group who are ordinarily required to | ||||||
13 | apportion
business income under the same subsection of | ||||||
14 | Section 304 of this Act as the
taxpayer making the | ||||||
15 | election. No election allowed by this subparagraph | ||||||
16 | shall
be made under a claim
filed under subsection (d) | ||||||
17 | of Section 909 more than 30 days after the
effective | ||||||
18 | date of this amendatory Act of 1996.
| ||||||
19 | (F) Finance Leases. For purposes of this | ||||||
20 | subsection, a finance lease
shall be treated as a loan | ||||||
21 | or other extension of credit, rather than as a
lease,
| ||||||
22 | regardless of how the transaction is characterized for | ||||||
23 | any other purpose,
including the purposes of any | ||||||
24 | regulatory agency to which the lessor is subject.
A | ||||||
25 | finance lease is any transaction in the form of a lease | ||||||
26 | in which the lessee
is treated as the owner of the |
| |||||||
| |||||||
1 | leased asset entitled to any deduction for
| ||||||
2 | depreciation allowed under Section 167 of the Internal | ||||||
3 | Revenue Code.
| ||||||
4 | (9) Fiscal year. The term "fiscal year" means an | ||||||
5 | accounting period of
12 months ending on the last day of | ||||||
6 | any month other than December.
| ||||||
7 | (9.5) Fixed place of business. The term "fixed place of | ||||||
8 | business" has the same meaning as that term is given in | ||||||
9 | Section 864 of the Internal Revenue Code and the related | ||||||
10 | Treasury regulations.
| ||||||
11 | (10) Includes and including. The terms "includes" and | ||||||
12 | "including" when
used in a definition contained in this Act | ||||||
13 | shall not be deemed to exclude
other things otherwise | ||||||
14 | within the meaning of the term defined.
| ||||||
15 | (11) Internal Revenue Code. The term "Internal Revenue | ||||||
16 | Code" means the
United States Internal Revenue Code of 1954 | ||||||
17 | or any successor law or laws
relating to federal income | ||||||
18 | taxes in effect for the taxable year.
| ||||||
19 | (11.5) Investment partnership. | ||||||
20 | (A) The term "investment partnership" means any | ||||||
21 | entity that is treated as a partnership for federal | ||||||
22 | income tax purposes that meets the following | ||||||
23 | requirements: | ||||||
24 | (i) no less than 90% of the partnership's cost | ||||||
25 | of its total assets consists of qualifying | ||||||
26 | investment securities, deposits at banks or other |
| |||||||
| |||||||
1 | financial institutions, and office space and | ||||||
2 | equipment reasonably necessary to carry on its | ||||||
3 | activities as an investment partnership; | ||||||
4 | (ii) no less than 90% of its gross income | ||||||
5 | consists of interest, dividends, and gains from | ||||||
6 | the sale or exchange of qualifying investment | ||||||
7 | securities; and
| ||||||
8 | (iii) the partnership is not a dealer in | ||||||
9 | qualifying investment securities. | ||||||
10 | (B) For purposes of this paragraph (11.5), the term | ||||||
11 | "qualifying investment securities" includes all of the | ||||||
12 | following:
| ||||||
13 | (i) common stock, including preferred or debt | ||||||
14 | securities convertible into common stock, and | ||||||
15 | preferred stock; | ||||||
16 | (ii) bonds, debentures, and other debt | ||||||
17 | securities; | ||||||
18 | (iii) foreign and domestic currency deposits | ||||||
19 | secured by federal, state, or local governmental | ||||||
20 | agencies; | ||||||
21 | (iv) mortgage or asset-backed securities | ||||||
22 | secured by federal, state, or local governmental | ||||||
23 | agencies; | ||||||
24 | (v) repurchase agreements and loan | ||||||
25 | participations; | ||||||
26 | (vi) foreign currency exchange contracts and |
| |||||||
| |||||||
1 | forward and futures contracts on foreign | ||||||
2 | currencies; | ||||||
3 | (vii) stock and bond index securities and | ||||||
4 | futures contracts and other similar financial | ||||||
5 | securities and futures contracts on those | ||||||
6 | securities;
| ||||||
7 | (viii) options for the purchase or sale of any | ||||||
8 | of the securities, currencies, contracts, or | ||||||
9 | financial instruments described in items (i) to | ||||||
10 | (vii), inclusive;
| ||||||
11 | (ix) regulated futures contracts;
| ||||||
12 | (x) commodities (not described in Section | ||||||
13 | 1221(a)(1) of the Internal Revenue Code) or | ||||||
14 | futures, forwards, and options with respect to | ||||||
15 | such commodities, provided, however, that any item | ||||||
16 | of a physical commodity to which title is actually | ||||||
17 | acquired in the partnership's capacity as a dealer | ||||||
18 | in such commodity shall not be a qualifying | ||||||
19 | investment security;
| ||||||
20 | (xi) derivatives; and
| ||||||
21 | (xii) a partnership interest in another | ||||||
22 | partnership that is an investment partnership.
| ||||||
23 | (12) Mathematical error. The term "mathematical error" | ||||||
24 | includes the
following types of errors, omissions, or | ||||||
25 | defects in a return filed by a
taxpayer which prevents | ||||||
26 | acceptance of the return as filed for processing:
|
| |||||||
| |||||||
1 | (A) arithmetic errors or incorrect computations on | ||||||
2 | the return or
supporting schedules;
| ||||||
3 | (B) entries on the wrong lines;
| ||||||
4 | (C) omission of required supporting forms or | ||||||
5 | schedules or the omission
of the information in whole | ||||||
6 | or in part called for thereon; and
| ||||||
7 | (D) an attempt to claim, exclude, deduct, or | ||||||
8 | improperly report, in a
manner
directly contrary to the | ||||||
9 | provisions of the Act and regulations thereunder
any | ||||||
10 | item of income, exemption, deduction, or credit.
| ||||||
11 | (13) Nonbusiness income. The term "nonbusiness income" | ||||||
12 | means all income
other than business income or | ||||||
13 | compensation.
| ||||||
14 | (14) Nonresident. The term "nonresident" means a | ||||||
15 | person who is not a
resident.
| ||||||
16 | (15) Paid, incurred and accrued. The terms "paid", | ||||||
17 | "incurred" and
"accrued"
shall be construed according to | ||||||
18 | the method of accounting upon the basis
of which the | ||||||
19 | person's base income is computed under this Act.
| ||||||
20 | (16) Partnership and partner. The term "partnership" | ||||||
21 | includes a syndicate,
group, pool, joint venture or other | ||||||
22 | unincorporated organization, through
or by means of which | ||||||
23 | any business, financial operation, or venture is carried
| ||||||
24 | on, and which is not, within the meaning of this Act, a | ||||||
25 | trust or estate
or a corporation; and the term "partner" | ||||||
26 | includes a member in such syndicate,
group, pool, joint |
| |||||||
| |||||||
1 | venture or organization.
| ||||||
2 | The term "partnership" includes any entity, including | ||||||
3 | a limited
liability company formed under the Illinois
| ||||||
4 | Limited Liability Company Act, classified as a partnership | ||||||
5 | for federal income tax purposes.
| ||||||
6 | The term "partnership" does not include a syndicate, | ||||||
7 | group, pool,
joint venture, or other unincorporated | ||||||
8 | organization established for the
sole purpose of playing | ||||||
9 | the Illinois State Lottery.
| ||||||
10 | (17) Part-year resident. The term "part-year resident" | ||||||
11 | means an individual
who became a resident during the | ||||||
12 | taxable year or ceased to be a resident
during the taxable | ||||||
13 | year. Under Section 1501(a)(20)(A)(i) residence
commences | ||||||
14 | with presence in this State for other than a temporary or | ||||||
15 | transitory
purpose and ceases with absence from this State | ||||||
16 | for other than a temporary or
transitory purpose. Under | ||||||
17 | Section 1501(a)(20)(A)(ii) residence commences
with the | ||||||
18 | establishment of domicile in this State and ceases with the
| ||||||
19 | establishment of domicile in another State.
| ||||||
20 | (18) Person. The term "person" shall be construed to | ||||||
21 | mean and include
an individual, a trust, estate, | ||||||
22 | partnership, association, firm, company,
corporation, | ||||||
23 | limited liability company, or fiduciary. For purposes of | ||||||
24 | Section
1301 and 1302 of this Act, a "person" means (i) an | ||||||
25 | individual, (ii) a
corporation, (iii) an officer, agent, or | ||||||
26 | employee of a
corporation, (iv) a member, agent or employee |
| |||||||
| |||||||
1 | of a partnership, or (v)
a member,
manager, employee, | ||||||
2 | officer, director, or agent of a limited liability company
| ||||||
3 | who in such capacity commits an offense specified in | ||||||
4 | Section 1301 and 1302.
| ||||||
5 | (18A) Records. The term "records" includes all data | ||||||
6 | maintained by the
taxpayer, whether on paper, microfilm, | ||||||
7 | microfiche, or any type of
machine-sensible data | ||||||
8 | compilation.
| ||||||
9 | (19) Regulations. The term "regulations" includes | ||||||
10 | rules promulgated and
forms prescribed by the Department.
| ||||||
11 | (20) Resident. The term "resident" means:
| ||||||
12 | (A) an individual (i) who is
in this State for | ||||||
13 | other than a temporary or transitory purpose during the
| ||||||
14 | taxable year; or (ii) who is domiciled in this State | ||||||
15 | but is absent from
the State for a temporary or | ||||||
16 | transitory purpose during the taxable year;
| ||||||
17 | (B) The estate of a decedent who at his or her | ||||||
18 | death was domiciled in
this
State;
| ||||||
19 | (C) A trust created by a will of a decedent who at | ||||||
20 | his death was
domiciled
in this State; and
| ||||||
21 | (D) An irrevocable trust, the grantor of which was | ||||||
22 | domiciled in this
State
at the time such trust became | ||||||
23 | irrevocable. For purpose of this subparagraph,
a trust | ||||||
24 | shall be considered irrevocable to the extent that the | ||||||
25 | grantor is
not treated as the owner thereof under | ||||||
26 | Sections 671 through 678 of the Internal
Revenue Code.
|
| |||||||
| |||||||
1 | (21) Sales. The term "sales" means all gross receipts | ||||||
2 | of the taxpayer
not allocated under Sections 301, 302 and | ||||||
3 | 303.
| ||||||
4 | (22) State. The term "state" when applied to a | ||||||
5 | jurisdiction other than
this State means any state of the | ||||||
6 | United States, the District of Columbia,
the Commonwealth | ||||||
7 | of Puerto Rico, any Territory or Possession of the United
| ||||||
8 | States, and any foreign country, or any political | ||||||
9 | subdivision of any of the
foregoing. For purposes of the | ||||||
10 | foreign tax credit under Section 601, the
term "state" | ||||||
11 | means any state of the United States, the District of | ||||||
12 | Columbia,
the Commonwealth of Puerto Rico, and any | ||||||
13 | territory or possession of the
United States, or any | ||||||
14 | political subdivision of any of the foregoing,
effective | ||||||
15 | for tax years ending on or after December 31, 1989.
| ||||||
16 | (23) Taxable year. The term "taxable year" means the | ||||||
17 | calendar year, or
the fiscal year ending during such | ||||||
18 | calendar year, upon the basis of which
the base income is | ||||||
19 | computed under this Act. "Taxable year" means, in the
case | ||||||
20 | of a return made for a fractional part of a year under the | ||||||
21 | provisions
of this Act, the period for which such return is | ||||||
22 | made.
| ||||||
23 | (24) Taxpayer. The term "taxpayer" means any person | ||||||
24 | subject to the tax
imposed by this Act.
| ||||||
25 | (25) International banking facility. The term | ||||||
26 | international banking
facility shall have the same meaning |
| |||||||
| |||||||
1 | as is set forth in the Illinois Banking
Act or as is set | ||||||
2 | forth in the laws of the United States or regulations of
| ||||||
3 | the Board of Governors of the Federal Reserve System.
| ||||||
4 | (26) Income Tax Return Preparer.
| ||||||
5 | (A) The term "income tax return preparer"
means any | ||||||
6 | person who prepares for compensation, or who employs | ||||||
7 | one or more
persons to prepare for compensation, any | ||||||
8 | return of tax imposed by this Act
or any claim for | ||||||
9 | refund of tax imposed by this Act. The preparation of a
| ||||||
10 | substantial portion of a return or claim for refund | ||||||
11 | shall be treated as
the preparation of that return or | ||||||
12 | claim for refund.
| ||||||
13 | (B) A person is not an income tax return preparer | ||||||
14 | if all he or she does
is
| ||||||
15 | (i) furnish typing, reproducing, or other | ||||||
16 | mechanical assistance;
| ||||||
17 | (ii) prepare returns or claims for refunds for | ||||||
18 | the employer by whom he
or she is regularly and | ||||||
19 | continuously employed;
| ||||||
20 | (iii) prepare as a fiduciary returns or claims | ||||||
21 | for refunds for any
person; or
| ||||||
22 | (iv) prepare claims for refunds for a taxpayer | ||||||
23 | in response to any
notice
of deficiency issued to | ||||||
24 | that taxpayer or in response to any waiver of
| ||||||
25 | restriction after the commencement of an audit of | ||||||
26 | that taxpayer or of another
taxpayer if a |
| |||||||
| |||||||
1 | determination in the audit of the other taxpayer | ||||||
2 | directly or
indirectly affects the tax liability | ||||||
3 | of the taxpayer whose claims he or she is
| ||||||
4 | preparing.
| ||||||
5 | (27) Unitary business group. | ||||||
6 | (A) The term "unitary business group" means
a group | ||||||
7 | of persons related through common ownership whose | ||||||
8 | business activities
are integrated with, dependent | ||||||
9 | upon and contribute to each other. The group
will not | ||||||
10 | include those members whose business activity outside | ||||||
11 | the United
States is 80% or more of any such member's | ||||||
12 | total business activity; for
purposes of this | ||||||
13 | paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||||||
14 | business
activity within the United States shall be | ||||||
15 | measured by means of the factors
ordinarily applicable | ||||||
16 | under subsections (a), (b), (c), (d), or (h)
of Section
| ||||||
17 | 304 except that, in the case of members ordinarily | ||||||
18 | required to apportion
business income by means of the 3 | ||||||
19 | factor formula of property, payroll and sales
| ||||||
20 | specified in subsection (a) of Section 304, including | ||||||
21 | the
formula as weighted in subsection (h) of Section | ||||||
22 | 304, such members shall
not use the sales factor in the | ||||||
23 | computation and the results of the property
and payroll | ||||||
24 | factor computations of subsection (a) of Section 304 | ||||||
25 | shall be
divided by 2 (by one if either
the property or | ||||||
26 | payroll factor has a denominator of zero). The |
| |||||||
| |||||||
1 | computation
required by the preceding sentence shall, | ||||||
2 | in each case, involve the division of
the member's | ||||||
3 | property, payroll, or revenue miles in the United | ||||||
4 | States,
insurance premiums on property or risk in the | ||||||
5 | United States, or financial
organization business | ||||||
6 | income from sources within the United States, as the
| ||||||
7 | case may be, by the respective worldwide figures for | ||||||
8 | such items. Common
ownership in the case of | ||||||
9 | corporations is the direct or indirect control or
| ||||||
10 | ownership of more than 50% of the outstanding voting | ||||||
11 | stock of the persons
carrying on unitary business | ||||||
12 | activity. Unitary business activity can
ordinarily be | ||||||
13 | illustrated where the activities of the members are: | ||||||
14 | (1) in the
same general line (such as manufacturing, | ||||||
15 | wholesaling, retailing of tangible
personal property, | ||||||
16 | insurance, transportation or finance); or (2) are | ||||||
17 | steps in a
vertically structured enterprise or process | ||||||
18 | (such as the steps involved in the
production of | ||||||
19 | natural resources, which might include exploration, | ||||||
20 | mining,
refining, and marketing); and, in either | ||||||
21 | instance, the members are functionally
integrated | ||||||
22 | through the exercise of strong centralized management | ||||||
23 | (where, for
example, authority over such matters as | ||||||
24 | purchasing, financing, tax compliance,
product line, | ||||||
25 | personnel, marketing and capital investment is not | ||||||
26 | left to each
member).
|
| |||||||
| |||||||
1 | (B) In no event, for taxable years beginning prior | ||||||
2 | to January 1, 2017, and excepting any unitary business | ||||||
3 | group that apportions business income under Section | ||||||
4 | 304(b) of this Act and is subject to the insurance | ||||||
5 | premium tax imposed under the Illinois Insurance Code, | ||||||
6 | shall any
unitary business group include members
which | ||||||
7 | are ordinarily required to apportion business income | ||||||
8 | under different
subsections of Section 304 except that | ||||||
9 | for tax years ending on or after
December 31, 1987 this | ||||||
10 | prohibition shall not apply to a holding company that | ||||||
11 | would otherwise be a member of a unitary business group | ||||||
12 | with taxpayers that apportion business income under | ||||||
13 | any of subsections (b), (c), (c-1), or (d) of Section | ||||||
14 | 304. If a unitary business
group would, but for the | ||||||
15 | preceding sentence, include members that are
| ||||||
16 | ordinarily required to apportion business income under | ||||||
17 | different subsections of
Section 304, then for each | ||||||
18 | subsection of Section 304 for which there are two or
| ||||||
19 | more members, there shall be a separate unitary | ||||||
20 | business group composed of such
members. For purposes | ||||||
21 | of the preceding two sentences, a member is "ordinarily
| ||||||
22 | required to apportion business income" under a | ||||||
23 | particular subsection of Section
304 if it would be | ||||||
24 | required to use the apportionment method prescribed by | ||||||
25 | such
subsection except for the fact that it derives | ||||||
26 | business income solely from
Illinois. As used in this |
| |||||||
| |||||||
1 | paragraph, the phrase "United States" means only the 50 | ||||||
2 | states and the District of Columbia and , but does not | ||||||
3 | include any territory or possession of the United | ||||||
4 | States , but, for taxable years ending on or after | ||||||
5 | December 31, 2017, does include or any area over which | ||||||
6 | the United States has asserted jurisdiction or claimed | ||||||
7 | exclusive rights with respect to the exploration for or | ||||||
8 | exploitation of natural resources.
| ||||||
9 | (C) Holding companies. | ||||||
10 | (i) For purposes of this subparagraph, a | ||||||
11 | "holding company" is a corporation (other than a | ||||||
12 | corporation that is a financial organization under | ||||||
13 | paragraph (8) of this subsection (a) of Section | ||||||
14 | 1501 because it is a bank holding company under the | ||||||
15 | provisions of the Bank Holding Company Act of 1956 | ||||||
16 | (12 U.S.C. 1841, et seq.) or because it is owned by | ||||||
17 | a bank or a bank holding company) that owns a | ||||||
18 | controlling interest in one or more other | ||||||
19 | taxpayers ("controlled taxpayers"); that, during | ||||||
20 | the period that includes the taxable year and the 2 | ||||||
21 | immediately preceding taxable years or, if the | ||||||
22 | corporation was formed during the current or | ||||||
23 | immediately preceding taxable year, the taxable | ||||||
24 | years in which the corporation has been in | ||||||
25 | existence, derived substantially all its gross | ||||||
26 | income from dividends, interest, rents, royalties, |
| |||||||
| |||||||
1 | fees or other charges received from controlled | ||||||
2 | taxpayers for the provision of services, and gains | ||||||
3 | on the sale or other disposition of interests in | ||||||
4 | controlled taxpayers or in property leased or | ||||||
5 | licensed to controlled taxpayers or used by the | ||||||
6 | taxpayer in providing services to controlled | ||||||
7 | taxpayers; and that incurs no substantial expenses | ||||||
8 | other than expenses (including interest and other | ||||||
9 | costs of borrowing) incurred in connection with | ||||||
10 | the acquisition and holding of interests in | ||||||
11 | controlled taxpayers and in the provision of | ||||||
12 | services to controlled taxpayers or in the leasing | ||||||
13 | or licensing of property to controlled taxpayers. | ||||||
14 | (ii) The income of a holding company which is a | ||||||
15 | member of more than one unitary business group | ||||||
16 | shall be included in each unitary business group of | ||||||
17 | which it is a member on a pro rata basis, by | ||||||
18 | including in each unitary business group that | ||||||
19 | portion of the base income of the holding company | ||||||
20 | that bears the same proportion to the total base | ||||||
21 | income of the holding company as the gross receipts | ||||||
22 | of the unitary business group bears to the combined | ||||||
23 | gross receipts of all unitary business groups (in | ||||||
24 | both cases without regard to the holding company) | ||||||
25 | or on any other reasonable basis, consistently | ||||||
26 | applied. |
| |||||||
| |||||||
1 | (iii) A holding company shall apportion its | ||||||
2 | business income under the subsection of Section | ||||||
3 | 304 used by the other members of its unitary | ||||||
4 | business group. The apportionment factors of a | ||||||
5 | holding company which would be a member of more | ||||||
6 | than one unitary business group shall be included | ||||||
7 | with the apportionment factors of each unitary | ||||||
8 | business group of which it is a member on a pro | ||||||
9 | rata basis using the same method used in clause | ||||||
10 | (ii). | ||||||
11 | (iv) The provisions of this subparagraph (C) | ||||||
12 | are intended to clarify existing law. | ||||||
13 | (D) If including the base income and factors of a | ||||||
14 | holding company in more than one unitary business group | ||||||
15 | under subparagraph (C) does not fairly reflect the | ||||||
16 | degree of integration between the holding company and | ||||||
17 | one or more of the unitary business groups, the | ||||||
18 | dependence of the holding company and one or more of | ||||||
19 | the unitary business groups upon each other, or the | ||||||
20 | contributions between the holding company and one or | ||||||
21 | more of the unitary business groups, the holding | ||||||
22 | company may petition the Director, under the | ||||||
23 | procedures provided under Section 304(f), for | ||||||
24 | permission to include all base income and factors of | ||||||
25 | the holding company only with members of a unitary | ||||||
26 | business group apportioning their business income |
| |||||||
| |||||||
1 | under one subsection of subsections (a), (b), (c), or | ||||||
2 | (d) of Section 304. If the petition is granted, the | ||||||
3 | holding company shall be included in a unitary business | ||||||
4 | group only with persons apportioning their business | ||||||
5 | income under the selected subsection of Section 304 | ||||||
6 | until the Director grants a petition of the holding | ||||||
7 | company either to be included in more than one unitary | ||||||
8 | business group under subparagraph (C) or to include its | ||||||
9 | base income and factors only with members of a unitary | ||||||
10 | business group apportioning their business income | ||||||
11 | under a different subsection of Section 304. | ||||||
12 | (E) If the unitary business group members' | ||||||
13 | accounting periods differ,
the common parent's | ||||||
14 | accounting period or, if there is no common parent, the
| ||||||
15 | accounting period of the member that is expected to | ||||||
16 | have, on a recurring basis,
the greatest Illinois | ||||||
17 | income tax liability must be used to determine whether | ||||||
18 | to
use the apportionment method provided in subsection | ||||||
19 | (a) or subsection (h) of
Section 304. The
prohibition | ||||||
20 | against membership in a unitary business group for | ||||||
21 | taxpayers
ordinarily required to apportion income | ||||||
22 | under different subsections of Section
304 does not | ||||||
23 | apply to taxpayers required to apportion income under | ||||||
24 | subsection
(a) and subsection (h) of Section
304. The | ||||||
25 | provisions of this amendatory Act of 1998 apply to tax
| ||||||
26 | years ending on or after December 31, 1998.
|
| |||||||
| |||||||
1 | (28) Subchapter S corporation. The term "Subchapter S | ||||||
2 | corporation"
means a corporation for which there is in | ||||||
3 | effect an election under Section
1362 of the Internal | ||||||
4 | Revenue Code, or for which there is a federal election
to | ||||||
5 | opt out of the provisions of the Subchapter S Revision Act | ||||||
6 | of 1982 and
have applied instead the prior federal | ||||||
7 | Subchapter S rules as in effect on July
1, 1982.
| ||||||
8 | (30) Foreign person. The term "foreign person" means | ||||||
9 | any person who is a nonresident alien individual and any | ||||||
10 | nonindividual entity, regardless of where created or | ||||||
11 | organized, whose business activity outside the United | ||||||
12 | States is 80% or more of the entity's total business | ||||||
13 | activity.
| ||||||
14 | (b) Other definitions.
| ||||||
15 | (1) Words denoting number, gender, and so forth,
when | ||||||
16 | used in this Act, where not otherwise distinctly expressed | ||||||
17 | or manifestly
incompatible with the intent thereof:
| ||||||
18 | (A) Words importing the singular include and apply | ||||||
19 | to several persons,
parties or things;
| ||||||
20 | (B) Words importing the plural include the | ||||||
21 | singular; and
| ||||||
22 | (C) Words importing the masculine gender include | ||||||
23 | the feminine as well.
| ||||||
24 | (2) "Company" or "association" as including successors | ||||||
25 | and assigns. The
word "company" or "association", when used |
| |||||||
| |||||||
1 | in reference to a corporation,
shall be deemed to embrace | ||||||
2 | the words "successors and assigns of such company
or | ||||||
3 | association", and in like manner as if these last-named | ||||||
4 | words, or words
of similar import, were expressed.
| ||||||
5 | (3) Other terms. Any term used in any Section of this | ||||||
6 | Act with respect
to the application of, or in connection | ||||||
7 | with, the provisions of any other
Section of this Act shall | ||||||
8 | have the same meaning as in such other Section.
| ||||||
9 | (Source: P.A. 99-213, eff. 7-31-15.)
| ||||||
10 | Section 30-15. The Film
Production Services Tax Credit Act | ||||||
11 | of 2008 is amended by changing Section 42 as follows:
| ||||||
12 | (35 ILCS 16/42) | ||||||
13 | Sec. 42. Sunset of credits. The application of credits | ||||||
14 | awarded pursuant to this Act shall be limited by a reasonable | ||||||
15 | and appropriate sunset date. A taxpayer shall not be entitled | ||||||
16 | to take a credit awarded pursuant to this Act for tax years | ||||||
17 | beginning on or after January 1, 2027 10 years after the | ||||||
18 | effective date of this amendatory Act of the 97th General | ||||||
19 | Assembly. After the initial 10-year sunset, the General | ||||||
20 | Assembly may extend the sunset date by 5-year intervals .
| ||||||
21 | (Source: P.A. 97-2, eff. 5-6-11; 97-3, eff. 5-6-11.)
| ||||||
22 | Section 30-20. The Use Tax Act is amended by changing | ||||||
23 | Sections 2, 3, 3-5, 3-10, 3-10.5, 3-45, 3-50, 3-55, 3-65, 3-75, |
| |||||||
| |||||||
1 | 3a, 4, 5, 6, 7, 8, 9, 10, and 11 and by adding Section 2a-2 as | ||||||
2 | follows:
| ||||||
3 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| ||||||
4 | Sec. 2. Definitions. | ||||||
5 | "Use" means the exercise by any person of any right or | ||||||
6 | power over
tangible personal property incident to the ownership | ||||||
7 | of that property or the exercise by any person of any right or | ||||||
8 | power over, or the enjoyment of, a taxable service ,
except that | ||||||
9 | it does not include the sale of such property or taxable | ||||||
10 | service in any form as
tangible personal property or a taxable | ||||||
11 | service in the regular course of business to the extent
that | ||||||
12 | such property or taxable service is not first subjected to a | ||||||
13 | use for which it was
purchased, and does not include the use of | ||||||
14 | such property or taxable service by its owner for
demonstration | ||||||
15 | purposes: Provided that the property or service purchased is | ||||||
16 | deemed to
be purchased for the purpose of resale, despite first | ||||||
17 | being used, to the
extent to which it is resold as an | ||||||
18 | ingredient of an intentionally produced
product or by-product | ||||||
19 | of manufacturing or is otherwise transferred to the purchaser | ||||||
20 | of tangible personal property or taxable service . "Use" does | ||||||
21 | not mean the demonstration
use or interim use of tangible | ||||||
22 | personal property or a taxable service by a retailer before he | ||||||
23 | sells
that tangible personal property or taxable service . For | ||||||
24 | watercraft or aircraft, if the period of
demonstration use or | ||||||
25 | interim use by the retailer exceeds 18 months,
the retailer
|
| |||||||
| |||||||
1 | shall pay on the retailers' original cost price the tax imposed | ||||||
2 | by this Act,
and no credit for that tax is permitted if the | ||||||
3 | watercraft or aircraft is
subsequently sold by the retailer. | ||||||
4 | "Use" does not mean the physical
incorporation of tangible | ||||||
5 | personal property, to the extent not first subjected
to a use | ||||||
6 | for which it was purchased, as an ingredient or constituent, | ||||||
7 | into
other tangible personal property (a) which is sold in the | ||||||
8 | regular course of
business or (b) which the person | ||||||
9 | incorporating such ingredient or constituent
therein has | ||||||
10 | undertaken at the time of such purchase to cause to be | ||||||
11 | transported
in interstate commerce to destinations outside the | ||||||
12 | State of Illinois: Provided
that the property purchased is | ||||||
13 | deemed to be purchased for the purpose of
resale, despite first | ||||||
14 | being used, to the extent to which it is resold as an
| ||||||
15 | ingredient of an intentionally produced product or by-product | ||||||
16 | of manufacturing.
| ||||||
17 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
18 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
19 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
20 | with an inboard motor.
| ||||||
21 | "Purchase at retail" means the acquisition of the ownership | ||||||
22 | of or title
to tangible personal property or the acquisition of | ||||||
23 | a taxable service through a sale at retail.
| ||||||
24 | "Purchaser" means anyone who, through a sale at retail, | ||||||
25 | acquires a taxable service or the
ownership of tangible | ||||||
26 | personal property for a valuable consideration.
|
| |||||||
| |||||||
1 | "Sale at retail" means any transfer of the ownership of or | ||||||
2 | title to
tangible personal property to a purchaser or the | ||||||
3 | performance of a taxable service for a purchaser , for the | ||||||
4 | purpose of use, and not
for the purpose of resale in any form | ||||||
5 | as tangible personal property or taxable service to the
extent | ||||||
6 | not first subjected to a use for which it was purchased, for a
| ||||||
7 | valuable consideration: Provided that the property purchased | ||||||
8 | is deemed to
be purchased for the purpose of resale, despite | ||||||
9 | first being used, to the
extent to which it is resold as an | ||||||
10 | ingredient of an intentionally produced
product or by-product | ||||||
11 | of manufacturing. For this purpose, slag produced as
an | ||||||
12 | incident to manufacturing pig iron or steel and sold is | ||||||
13 | considered to be
an intentionally produced by-product of | ||||||
14 | manufacturing. "Sale at retail"
includes any such transfer made | ||||||
15 | for resale unless made in compliance with
Section 2c of the | ||||||
16 | Retailers' Occupation Tax Act, as incorporated by
reference | ||||||
17 | into Section 12 of this Act. Transactions whereby the | ||||||
18 | possession
of the property is transferred but the seller | ||||||
19 | retains the title as security
for payment of the selling price | ||||||
20 | are sales.
| ||||||
21 | "Sale at retail" shall also be construed to include any | ||||||
22 | Illinois
florist's sales transaction in which the purchase | ||||||
23 | order is received in
Illinois by a florist and the sale is for | ||||||
24 | use or consumption, but the
Illinois florist has a florist in | ||||||
25 | another state deliver the property to the
purchaser or the | ||||||
26 | purchaser's donee in such other state.
|
| |||||||
| |||||||
1 | Nonreusable tangible personal property that is used by | ||||||
2 | persons engaged in
the business of operating a restaurant, | ||||||
3 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
4 | transferred to customers in the ordinary course of business
as | ||||||
5 | part of the sale of food or beverages and is used to deliver, | ||||||
6 | package, or
consume food or beverages, regardless of where | ||||||
7 | consumption of the food or
beverages occurs. Examples of those | ||||||
8 | items include, but are not limited to
nonreusable, paper and | ||||||
9 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
10 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
11 | and
wrapping or packaging
materials that are transferred to | ||||||
12 | customers as part of the sale of food or
beverages in the | ||||||
13 | ordinary course of business.
| ||||||
14 | The purchase, employment and transfer of such tangible | ||||||
15 | personal property
as newsprint and ink for the primary purpose | ||||||
16 | of conveying news (with or
without other information) is not a | ||||||
17 | purchase, use or sale of tangible
personal property.
| ||||||
18 | "Selling price" means the consideration for a sale valued | ||||||
19 | in money
whether received in money or otherwise, including | ||||||
20 | cash, credits, property
other than as hereinafter provided, and | ||||||
21 | services, but not including the
value of or credit given for | ||||||
22 | traded-in tangible personal property where the
item that is | ||||||
23 | traded-in is of like kind and character as that which is being
| ||||||
24 | sold, and shall be determined without any deduction on account | ||||||
25 | of the cost
of the property sold, the cost of materials used, | ||||||
26 | labor or service cost or
any other expense whatsoever, but does |
| |||||||
| |||||||
1 | not include interest or finance
charges which appear as | ||||||
2 | separate items on the bill of sale or sales
contract nor | ||||||
3 | charges that are added to prices by sellers on account of the
| ||||||
4 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
5 | Act", or on
account of the seller's duty to collect, from the | ||||||
6 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
7 | otherwise provided with respect to any cigarette tax imposed by | ||||||
8 | a home rule unit, on account of the seller's tax liability | ||||||
9 | under any local occupation tax administered by the Department, | ||||||
10 | or, except as otherwise provided with respect to any cigarette | ||||||
11 | tax imposed by a home rule unit on account of the seller's duty | ||||||
12 | to collect, from the purchasers, the tax that is imposed under | ||||||
13 | any local use tax administered by the Department. Effective | ||||||
14 | December 1, 1985, "selling price"
shall include charges that | ||||||
15 | are added to prices by sellers on account of the
seller's tax | ||||||
16 | liability under the Cigarette Tax Act, on account of the | ||||||
17 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
18 | under the Cigarette Use
Tax Act, and on account of the seller's | ||||||
19 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
20 | by a home rule unit.
| ||||||
21 | Notwithstanding any law to the contrary, for any motor | ||||||
22 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
23 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
24 | the vehicle for a defined period that is longer than one year | ||||||
25 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
26 | a self-contained motor vehicle designed or permanently |
| |||||||
| |||||||
1 | converted to provide living quarters for recreational, | ||||||
2 | camping, or travel use, with direct walk through access to the | ||||||
3 | living quarters from the driver's seat; (B) is of the van | ||||||
4 | configuration designed for the transportation of not less than | ||||||
5 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
6 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
7 | of the first division, "selling price" or "amount of sale" | ||||||
8 | means the consideration received by the lessor pursuant to the | ||||||
9 | lease contract, including amounts due at lease signing and all | ||||||
10 | monthly or other regular payments charged over the term of the | ||||||
11 | lease. Also included in the selling price is any amount | ||||||
12 | received by the lessor from the lessee for the leased vehicle | ||||||
13 | that is not calculated at the time the lease is executed, | ||||||
14 | including, but not limited to, excess mileage charges and | ||||||
15 | charges for excess wear and tear. For sales that occur in | ||||||
16 | Illinois, with respect to any amount received by the lessor | ||||||
17 | from the lessee for the leased vehicle that is not calculated | ||||||
18 | at the time the lease is executed, the lessor who purchased the | ||||||
19 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
20 | on those amounts, and the retailer who makes the retail sale of | ||||||
21 | the motor vehicle to the lessor is not required to collect the | ||||||
22 | tax imposed by this Act or to pay the tax imposed by the | ||||||
23 | Retailers' Occupation Tax Act on those amounts. However, the | ||||||
24 | lessor who purchased the motor vehicle assumes the liability | ||||||
25 | for reporting and paying the tax on those amounts directly to | ||||||
26 | the Department in the same form (Illinois Retailers' Occupation |
| |||||||
| |||||||
1 | Tax, and local retailers' occupation taxes, if applicable) in | ||||||
2 | which the retailer would have reported and paid such tax if the | ||||||
3 | retailer had accounted for the tax to the Department. For | ||||||
4 | amounts received by the lessor from the lessee that are not | ||||||
5 | calculated at the time the lease is executed, the lessor must | ||||||
6 | file the return and pay the tax to the Department by the due | ||||||
7 | date otherwise required by this Act for returns other than | ||||||
8 | transaction returns. If the retailer is entitled under this Act | ||||||
9 | to a discount for collecting and remitting the tax imposed | ||||||
10 | under this Act to the Department with respect to the sale of | ||||||
11 | the motor vehicle to the lessor, then the right to the discount | ||||||
12 | provided in this Act shall be transferred to the lessor with | ||||||
13 | respect to the tax paid by the lessor for any amount received | ||||||
14 | by the lessor from the lessee for the leased vehicle that is | ||||||
15 | not calculated at the time the lease is executed; provided that | ||||||
16 | the discount is only allowed if the return is timely filed and | ||||||
17 | for amounts timely paid. The "selling price" of a motor vehicle | ||||||
18 | that is sold on or after January 1, 2015 for the purpose of | ||||||
19 | leasing for a defined period of longer than one year shall not | ||||||
20 | be reduced by the value of or credit given for traded-in | ||||||
21 | tangible personal property owned by the lessor, nor shall it be | ||||||
22 | reduced by the value of or credit given for traded-in tangible | ||||||
23 | personal property owned by the lessee, regardless of whether | ||||||
24 | the trade-in value thereof is assigned by the lessee to the | ||||||
25 | lessor. In the case of a motor vehicle that is sold for the | ||||||
26 | purpose of leasing for a defined period of longer than one |
| |||||||
| |||||||
1 | year, the sale occurs at the time of the delivery of the | ||||||
2 | vehicle, regardless of the due date of any lease payments. A | ||||||
3 | lessor who incurs a Retailers' Occupation Tax liability on the | ||||||
4 | sale of a motor vehicle coming off lease may not take a credit | ||||||
5 | against that liability for the Use Tax the lessor paid upon the | ||||||
6 | purchase of the motor vehicle (or for any tax the lessor paid | ||||||
7 | with respect to any amount received by the lessor from the | ||||||
8 | lessee for the leased vehicle that was not calculated at the | ||||||
9 | time the lease was executed) if the selling price of the motor | ||||||
10 | vehicle at the time of purchase was calculated using the | ||||||
11 | definition of "selling price" as defined in this paragraph. | ||||||
12 | Notwithstanding any other provision of this Act to the | ||||||
13 | contrary, lessors shall file all returns and make all payments | ||||||
14 | required under this paragraph to the Department by electronic | ||||||
15 | means in the manner and form as required by the Department. | ||||||
16 | This paragraph does not apply to leases of motor vehicles for | ||||||
17 | which, at the time the lease is entered into, the term of the | ||||||
18 | lease is not a defined period, including leases with a defined | ||||||
19 | initial period with the option to continue the lease on a | ||||||
20 | month-to-month or other basis beyond the initial defined | ||||||
21 | period. | ||||||
22 | The phrase "like kind and character" shall be liberally | ||||||
23 | construed
(including but not limited to any form of motor | ||||||
24 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
25 | agricultural implement for any other
kind of farm or | ||||||
26 | agricultural implement), while not including a kind of item
|
| |||||||
| |||||||
1 | which, if sold at retail by that retailer, would be exempt from | ||||||
2 | retailers'
occupation tax and use tax as an isolated or | ||||||
3 | occasional sale.
| ||||||
4 | "Department" means the Department of Revenue.
| ||||||
5 | "Person" means any natural individual, firm, partnership, | ||||||
6 | association,
joint stock company, joint adventure, public or | ||||||
7 | private corporation, limited
liability company, or a
receiver, | ||||||
8 | executor, trustee, guardian or other representative appointed
| ||||||
9 | by order of any court.
| ||||||
10 | "Retailer" means and includes every person engaged in the | ||||||
11 | business of
making sales at retail as defined in this Section.
| ||||||
12 | A person who holds himself or herself out as being engaged | ||||||
13 | (or who habitually
engages) in selling tangible personal | ||||||
14 | property or taxable services at retail is a retailer
hereunder | ||||||
15 | with respect to such sales (and not primarily in a nontaxable | ||||||
16 | service
occupation) notwithstanding the fact that such person | ||||||
17 | designs and produces
such tangible personal property or taxable | ||||||
18 | service on special order for the purchaser and in
such a way as | ||||||
19 | to render the property or service of value only to such | ||||||
20 | purchaser, if
such tangible personal property or taxable | ||||||
21 | service so produced on special order serves
substantially the | ||||||
22 | same function as stock or standard items of tangible
personal | ||||||
23 | property or taxable service that are sold at retail.
| ||||||
24 | A person whose activities are organized and conducted | ||||||
25 | primarily as a
not-for-profit service enterprise, and who | ||||||
26 | engages in selling tangible
personal property or taxable |
| |||||||
| |||||||
1 | services at retail (whether to the public or merely to members | ||||||
2 | and
their guests) is a retailer with respect to such | ||||||
3 | transactions, excepting
only a person organized and operated | ||||||
4 | exclusively for charitable, religious
or educational purposes | ||||||
5 | either (1), to the extent of sales by such person
to its | ||||||
6 | members, students, patients or inmates of tangible personal | ||||||
7 | property
to be used primarily for the purposes of such person, | ||||||
8 | or (2), to the extent
of sales by such person of tangible | ||||||
9 | personal property or taxable services which are is not sold or
| ||||||
10 | offered for sale by persons organized for profit. The selling | ||||||
11 | of school
books and school supplies by schools at retail to | ||||||
12 | students is not
"primarily for the purposes of" the school | ||||||
13 | which does such selling. This
paragraph does not apply to nor | ||||||
14 | subject to taxation occasional dinners,
social or similar | ||||||
15 | activities of a person organized and operated exclusively
for | ||||||
16 | charitable, religious or educational purposes, whether or not | ||||||
17 | such
activities are open to the public.
| ||||||
18 | A person who is the recipient of a grant or contract under | ||||||
19 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
20 | serves meals to
participants in the federal Nutrition Program | ||||||
21 | for the Elderly in return for
contributions established in | ||||||
22 | amount by the individual participant pursuant
to a schedule of | ||||||
23 | suggested fees as provided for in the federal Act is not a
| ||||||
24 | retailer under this Act with respect to such transactions.
| ||||||
25 | Persons who engage in the business of transferring tangible | ||||||
26 | personal
property or taxable services upon the redemption of |
| |||||||
| |||||||
1 | trading stamps are retailers hereunder when
engaged in such | ||||||
2 | business.
| ||||||
3 | The isolated or occasional sale of tangible personal | ||||||
4 | property or taxable services at retail
by a person who does not | ||||||
5 | hold himself out as being engaged (or who does not
habitually | ||||||
6 | engage) in selling such tangible personal property or taxable | ||||||
7 | services at retail or
a sale through a bulk vending machine | ||||||
8 | does not make such person a retailer
hereunder. However, any | ||||||
9 | person who is engaged in a business which is not
subject to the | ||||||
10 | tax imposed by the "Retailers' Occupation Tax Act" because
of | ||||||
11 | involving the sale of or a contract to sell real estate or a
| ||||||
12 | construction contract to improve real estate, but who, in the | ||||||
13 | course of
conducting such business, transfers tangible | ||||||
14 | personal property to users or
consumers in the finished form in | ||||||
15 | which it was purchased, and which does
not become real estate, | ||||||
16 | under any provision of a construction contract or
real estate | ||||||
17 | sale or real estate sales agreement entered into with some
| ||||||
18 | other person arising out of or because of such nontaxable | ||||||
19 | business, is a
retailer to the extent of the value of the | ||||||
20 | tangible personal property so
transferred. If, in such | ||||||
21 | transaction, a separate charge is made for the
tangible | ||||||
22 | personal property so transferred, the value of such property, | ||||||
23 | for
the purposes of this Act, is the amount so separately | ||||||
24 | charged, but not less
than the cost of such property to the | ||||||
25 | transferor; if no separate charge is
made, the value of such | ||||||
26 | property, for the purposes of this Act, is the cost
to the |
| |||||||
| |||||||
1 | transferor of such tangible personal property.
| ||||||
2 | "Retailer maintaining a place of business in this State", | ||||||
3 | or any like
term, means and includes any of the following | ||||||
4 | retailers:
| ||||||
5 | 1. A retailer having or maintaining within this State, | ||||||
6 | directly or by
a subsidiary, an office, distribution house, | ||||||
7 | sales house, warehouse or other
place of business, or any | ||||||
8 | agent or other representative operating within this
State | ||||||
9 | under the authority of the retailer or its subsidiary, | ||||||
10 | irrespective of
whether such place of business or agent or | ||||||
11 | other representative is located here
permanently or | ||||||
12 | temporarily, or whether such retailer or subsidiary is | ||||||
13 | licensed
to do business in this State. However, the | ||||||
14 | ownership of property that is
located at the premises of a | ||||||
15 | printer with which the retailer has contracted for
printing | ||||||
16 | and that consists of the final printed product, property | ||||||
17 | that becomes
a part of the final printed product, or copy | ||||||
18 | from which the printed product is
produced shall not result | ||||||
19 | in the retailer being deemed to have or maintain an
office, | ||||||
20 | distribution house, sales house, warehouse, or other place | ||||||
21 | of business
within this State. | ||||||
22 | 1.1. A retailer having a contract with a person located | ||||||
23 | in this State under which the person, for a commission or | ||||||
24 | other consideration based upon the sale of tangible | ||||||
25 | personal property or taxable services by the retailer, | ||||||
26 | directly or indirectly refers potential customers to the |
| |||||||
| |||||||
1 | retailer by providing to the potential customers a | ||||||
2 | promotional code or other mechanism that allows the | ||||||
3 | retailer to track purchases referred by such persons. | ||||||
4 | Examples of mechanisms that allow the retailer to track | ||||||
5 | purchases referred by such persons include but are not | ||||||
6 | limited to the use of a link on the person's Internet | ||||||
7 | website, promotional codes distributed through the | ||||||
8 | person's hand-delivered or mailed material, and | ||||||
9 | promotional codes distributed by the person through radio | ||||||
10 | or other broadcast media. The provisions of this paragraph | ||||||
11 | 1.1 shall apply only if the cumulative gross receipts from | ||||||
12 | sales of tangible personal property or taxable service by | ||||||
13 | the retailer to customers who are referred to the retailer | ||||||
14 | by all persons in this State under such contracts exceed | ||||||
15 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
16 | the last day of March, June, September, and December. A | ||||||
17 | retailer meeting the requirements of this paragraph 1.1 | ||||||
18 | shall be presumed to be maintaining a place of business in | ||||||
19 | this State but may rebut this presumption by submitting | ||||||
20 | proof that the referrals or other activities pursued within | ||||||
21 | this State by such persons were not sufficient to meet the | ||||||
22 | nexus standards of the United States Constitution during | ||||||
23 | the preceding 4 quarterly periods. | ||||||
24 | 1.2. Beginning July 1, 2011, a retailer having a | ||||||
25 | contract with a person located in this State under which: | ||||||
26 | A. the retailer sells the same or substantially |
| |||||||
| |||||||
1 | similar line of products or taxable services as the | ||||||
2 | person located in this State and does so using an | ||||||
3 | identical or substantially similar name, trade name, | ||||||
4 | or trademark as the person located in this State; and | ||||||
5 | B. the retailer provides a commission or other | ||||||
6 | consideration to the person located in this State based | ||||||
7 | upon the sale of tangible personal property or taxable | ||||||
8 | service by the retailer. | ||||||
9 | The provisions of this paragraph 1.2 shall apply only if | ||||||
10 | the cumulative gross receipts from sales of tangible | ||||||
11 | personal property or taxable service by the retailer to | ||||||
12 | customers in this State under all such contracts exceed | ||||||
13 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
14 | the last day of March, June, September, and December.
| ||||||
15 | 2. A retailer soliciting orders for tangible personal | ||||||
16 | property or taxable service by
means of a telecommunication | ||||||
17 | or television shopping system (which utilizes toll
free | ||||||
18 | numbers) which is intended by the retailer to be broadcast | ||||||
19 | by cable
television or other means of broadcasting, to | ||||||
20 | consumers located in this State.
| ||||||
21 | 3. A retailer, pursuant to a contract with a | ||||||
22 | broadcaster or publisher
located in this State, soliciting | ||||||
23 | orders for tangible personal property or taxable service by
| ||||||
24 | means of advertising which is disseminated primarily to | ||||||
25 | consumers located in
this State and only secondarily to | ||||||
26 | bordering jurisdictions.
|
| |||||||
| |||||||
1 | 4. A retailer soliciting orders for tangible personal | ||||||
2 | property or taxable service by mail
if the solicitations | ||||||
3 | are substantial and recurring and if the retailer benefits
| ||||||
4 | from any banking, financing, debt collection, | ||||||
5 | telecommunication, or marketing
activities occurring in | ||||||
6 | this State or benefits from the location in this State
of | ||||||
7 | authorized installation, servicing, or repair facilities.
| ||||||
8 | 5. A retailer that is owned or controlled by the same | ||||||
9 | interests that own
or control any retailer engaging in | ||||||
10 | business in the same or similar line of
business in this | ||||||
11 | State.
| ||||||
12 | 6. A retailer having a franchisee or licensee operating | ||||||
13 | under its trade
name if the franchisee or licensee is | ||||||
14 | required to collect the tax under this
Section.
| ||||||
15 | 7. A retailer, pursuant to a contract with a cable | ||||||
16 | television operator
located in this State, soliciting | ||||||
17 | orders for tangible personal property or taxable service by
| ||||||
18 | means of advertising which is transmitted or distributed | ||||||
19 | over a cable
television system in this State.
| ||||||
20 | 8. A retailer engaging in activities in Illinois, which | ||||||
21 | activities in
the state in which the retail business | ||||||
22 | engaging in such activities is located
would constitute | ||||||
23 | maintaining a place of business in that state.
| ||||||
24 | "Bulk vending machine" means a vending machine,
containing | ||||||
25 | unsorted confections, nuts, toys, or other items designed
| ||||||
26 | primarily to be used or played with by children
which, when a |
| |||||||
| |||||||
1 | coin or coins of a denomination not larger than $0.50 are | ||||||
2 | inserted, are dispensed in equal portions, at random and
| ||||||
3 | without selection by the customer.
| ||||||
4 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14; | ||||||
5 | 98-1089, eff. 1-1-15; 99-78, eff. 7-20-15.)
| ||||||
6 | (35 ILCS 105/2a-2 new) | ||||||
7 | Sec. 2a-2. Taxable services. Beginning January 1, 2018, | ||||||
8 | "taxable service" means any of the following services: | ||||||
9 | (1) Providing space for storage. | ||||||
10 | (A) "Storage" means the retaining or keeping of | ||||||
11 | tangible personal property in this State for any | ||||||
12 | purpose. For purposes of this Section, tangible | ||||||
13 | personal property, does not include "grain" as defined | ||||||
14 | in the Public Grain Warehouse and Warehouse Receipts | ||||||
15 | Act. | ||||||
16 | (B) "Space for storage" means (i) secure areas, | ||||||
17 | such as rooms, units, compartments or containers, | ||||||
18 | whether accessible from outside or from within a | ||||||
19 | building, that are designated for the use of a | ||||||
20 | purchaser, where the purchaser can store and retrieve | ||||||
21 | property, including self-storage units, mini-storage | ||||||
22 | units, and areas by any other name; (ii) any parking | ||||||
23 | lot, ramp, or parking garage for a vehicle, whether the | ||||||
24 | vehicle is parked by the operator of the vehicle or by | ||||||
25 | an attendant; (iii) any aircraft parking area, ramp, or |
| |||||||
| |||||||
1 | hanger; (iv) any boat slip, dock, or dry dock; (v) any | ||||||
2 | recreational vehicle parking area or garage; and (vi) | ||||||
3 | any other areas for storage or parking of tangible | ||||||
4 | personal property. | ||||||
5 | (C) "Self-storage or mini-storage" includes | ||||||
6 | storage lockers or storage units in apartment | ||||||
7 | complexes (if the locker or unit is utilized at the | ||||||
8 | tenant's option and includes payment of a fee in | ||||||
9 | addition to apartment rental), and in amusement parks, | ||||||
10 | water parks, recreational facilities, and other | ||||||
11 | locations where lockers are rented for self-storage. | ||||||
12 | (2) Laundry, drycleaning, cloth pressing, dyeing, or | ||||||
13 | linen service, except when the service is performed by the | ||||||
14 | purchaser through the use of coin-operated, self-service | ||||||
15 | machines. | ||||||
16 | (3) Private detective, private alarm, and private | ||||||
17 | security service for which the provider of the service is | ||||||
18 | required to be licensed pursuant to the Private Detective, | ||||||
19 | Private Alarm, Private Security, Fingerprint Vendor, and | ||||||
20 | Locksmith Act of 2004, or would be required to be so | ||||||
21 | licensed in performing those services in this State. | ||||||
22 | (4) Structural pest control services. "Structural pest | ||||||
23 | control services" means use of any device or the | ||||||
24 | application of any substance to prevent, repel, mitigate, | ||||||
25 | curb, control, or eradicate any structural pest in, on, | ||||||
26 | under, or around a structure, or within a part of, or |
| |||||||
| |||||||
1 | materials used in building, a structure; the use of any | ||||||
2 | pesticide, including insecticides, fungicides and other | ||||||
3 | wood treatment products, attractants, repellents, | ||||||
4 | rodenticides, fumigants, or mechanical devices for | ||||||
5 | preventing, controlling, eradicating, identifying, | ||||||
6 | mitigating, diminishing, or curbing insects, vermin, rats, | ||||||
7 | mice, or other pests in, on, under, or around a structure, | ||||||
8 | or within a part of, or materials used in building, a | ||||||
9 | structure; vault fumigation and fumigation of box cars, | ||||||
10 | trucks, ships, airplanes, docks, warehouses, and common | ||||||
11 | carriers or soliciting to perform any of the foregoing | ||||||
12 | functions. | ||||||
13 | (5) Tattooing and body piercing.
| ||||||
14 | (35 ILCS 105/3) (from Ch. 120, par. 439.3)
| ||||||
15 | Sec. 3. Tax imposed. A tax is imposed upon the privilege of | ||||||
16 | using in
this State a taxable service or tangible personal | ||||||
17 | property purchased at retail from a
retailer, including | ||||||
18 | computer software, and
including photographs, negatives, and | ||||||
19 | positives that are the product of
photoprocessing, but not | ||||||
20 | including products of photoprocessing produced for
use in | ||||||
21 | motion pictures for commercial exhibition.
Beginning January | ||||||
22 | 1, 2001, prepaid telephone calling arrangements shall be
| ||||||
23 | considered tangible personal property subject to the tax | ||||||
24 | imposed under this Act
regardless of the form in which those | ||||||
25 | arrangements may be embodied,
transmitted, or fixed by any |
| |||||||
| |||||||
1 | method now known or hereafter developed. Purchases of (1) | ||||||
2 | electricity delivered to customers by wire; (2) natural or | ||||||
3 | artificial gas that is delivered to customers through pipes, | ||||||
4 | pipelines, or mains; and (3) water that is delivered to | ||||||
5 | customers through pipes, pipelines, or mains are not subject to | ||||||
6 | tax under this Act. The provisions of this amendatory Act of | ||||||
7 | the 98th General Assembly are declaratory of existing law as to | ||||||
8 | the meaning and scope of this Act.
| ||||||
9 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
10 | (35 ILCS 105/3-5)
| ||||||
11 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
12 | personal property or taxable service
is exempt from the tax | ||||||
13 | imposed by this Act:
| ||||||
14 | (1) Personal property or taxable services purchased from a | ||||||
15 | corporation, society, association,
foundation, institution, or | ||||||
16 | organization, other than a limited liability
company, that is | ||||||
17 | organized and operated as a not-for-profit service enterprise
| ||||||
18 | for the benefit of persons 65 years of age or older if the | ||||||
19 | personal property or taxable service
was not purchased by the | ||||||
20 | enterprise for the purpose of resale by the
enterprise.
| ||||||
21 | (2) Personal property or taxable service purchased by a | ||||||
22 | not-for-profit Illinois county
fair association for use in | ||||||
23 | conducting, operating, or promoting the
county fair.
| ||||||
24 | (3) Personal property or taxable services purchased by a | ||||||
25 | not-for-profit
arts or cultural organization that establishes, |
| |||||||
| |||||||
1 | by proof required by the
Department by
rule, that it has | ||||||
2 | received an exemption under Section 501(c)(3) of the Internal
| ||||||
3 | Revenue Code and that is organized and operated primarily for | ||||||
4 | the
presentation
or support of arts or cultural programming, | ||||||
5 | activities, or services. These
organizations include, but are | ||||||
6 | not limited to, music and dramatic arts
organizations such as | ||||||
7 | symphony orchestras and theatrical groups, arts and
cultural | ||||||
8 | service organizations, local arts councils, visual arts | ||||||
9 | organizations,
and media arts organizations.
On and after the | ||||||
10 | effective date of this amendatory Act of the 92nd General
| ||||||
11 | Assembly, however, an entity otherwise eligible for this | ||||||
12 | exemption shall not
make tax-free purchases unless it has an | ||||||
13 | active identification number issued by
the Department.
| ||||||
14 | (4) Personal property or taxable services purchased by a | ||||||
15 | governmental body, by a
corporation, society, association, | ||||||
16 | foundation, or institution organized and
operated exclusively | ||||||
17 | for charitable, religious, or educational purposes, or
by a | ||||||
18 | not-for-profit corporation, society, association, foundation,
| ||||||
19 | institution, or organization that has no compensated officers | ||||||
20 | or employees
and that is organized and operated primarily for | ||||||
21 | the recreation of persons
55 years of age or older. A limited | ||||||
22 | liability company may qualify for the
exemption under this | ||||||
23 | paragraph only if the limited liability company is
organized | ||||||
24 | and operated exclusively for educational purposes. On and after | ||||||
25 | July
1, 1987, however, no entity otherwise eligible for this | ||||||
26 | exemption shall make
tax-free purchases unless it has an active |
| |||||||
| |||||||
1 | exemption identification number
issued by the Department.
| ||||||
2 | (5) Until July 1, 2003, a passenger car that is a | ||||||
3 | replacement vehicle to
the extent that the
purchase price of | ||||||
4 | the car is subject to the Replacement Vehicle Tax.
| ||||||
5 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
6 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
7 | equipment, including
repair and replacement
parts, both new and | ||||||
8 | used, and including that manufactured on special order,
| ||||||
9 | certified by the purchaser to be used primarily for graphic | ||||||
10 | arts production,
and including machinery and equipment | ||||||
11 | purchased for lease.
Equipment includes chemicals or chemicals | ||||||
12 | acting as catalysts but only if
the
chemicals or chemicals | ||||||
13 | acting as catalysts effect a direct and immediate change
upon a | ||||||
14 | graphic arts product. Beginning on July 1, 2017, graphic arts | ||||||
15 | machinery and equipment is included in the manufacturing and | ||||||
16 | assembling machinery and equipment exemption under paragraph | ||||||
17 | (18).
| ||||||
18 | (7) Farm chemicals.
| ||||||
19 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
20 | coinage issued by
the State of Illinois, the government of the | ||||||
21 | United States of America, or the
government of any foreign | ||||||
22 | country, and bullion.
| ||||||
23 | (9) Personal property purchased from a teacher-sponsored | ||||||
24 | student
organization affiliated with an elementary or | ||||||
25 | secondary school located in
Illinois.
| ||||||
26 | (10) A motor vehicle that is used for automobile renting, |
| |||||||
| |||||||
1 | as defined in the
Automobile Renting Occupation and Use Tax | ||||||
2 | Act.
| ||||||
3 | (11) Farm machinery and equipment, both new and used,
| ||||||
4 | including that manufactured on special order, certified by the | ||||||
5 | purchaser
to be used primarily for production agriculture or | ||||||
6 | State or federal
agricultural programs, including individual | ||||||
7 | replacement parts for
the machinery and equipment, including | ||||||
8 | machinery and equipment
purchased
for lease,
and including | ||||||
9 | implements of husbandry defined in Section 1-130 of
the | ||||||
10 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
11 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
12 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
13 | but excluding other motor
vehicles required to be
registered | ||||||
14 | under the Illinois Vehicle Code.
Horticultural polyhouses or | ||||||
15 | hoop houses used for propagating, growing, or
overwintering | ||||||
16 | plants shall be considered farm machinery and equipment under
| ||||||
17 | this item (11).
Agricultural chemical tender tanks and dry | ||||||
18 | boxes shall include units sold
separately from a motor vehicle | ||||||
19 | required to be licensed and units sold mounted
on a motor | ||||||
20 | vehicle required to be licensed if the selling price of the | ||||||
21 | tender
is separately stated.
| ||||||
22 | Farm machinery and equipment shall include precision | ||||||
23 | farming equipment
that is
installed or purchased to be | ||||||
24 | installed on farm machinery and equipment
including, but not | ||||||
25 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
26 | or spreaders.
Precision farming equipment includes, but is not |
| |||||||
| |||||||
1 | limited to, soil testing
sensors, computers, monitors, | ||||||
2 | software, global positioning
and mapping systems, and other | ||||||
3 | such equipment.
| ||||||
4 | Farm machinery and equipment also includes computers, | ||||||
5 | sensors, software, and
related equipment used primarily in the
| ||||||
6 | computer-assisted operation of production agriculture | ||||||
7 | facilities, equipment,
and
activities such as, but not limited | ||||||
8 | to,
the collection, monitoring, and correlation of
animal and | ||||||
9 | crop data for the purpose of
formulating animal diets and | ||||||
10 | agricultural chemicals. This item (11) is exempt
from the | ||||||
11 | provisions of
Section 3-90.
| ||||||
12 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
13 | to or used by an air common
carrier, certified by the carrier | ||||||
14 | to be used for consumption, shipment, or
storage in the conduct | ||||||
15 | of its business as an air common carrier, for a
flight destined | ||||||
16 | for or returning from a location or locations
outside the | ||||||
17 | United States without regard to previous or subsequent domestic
| ||||||
18 | stopovers.
| ||||||
19 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
20 | or used by an air carrier, certified by the carrier to be used | ||||||
21 | for consumption, shipment, or storage in the conduct of its | ||||||
22 | business as an air common carrier, for a flight that (i) is | ||||||
23 | engaged in foreign trade or is engaged in trade between the | ||||||
24 | United States and any of its possessions and (ii) transports at | ||||||
25 | least one individual or package for hire from the city of | ||||||
26 | origination to the city of final destination on the same |
| |||||||
| |||||||
1 | aircraft, without regard to a change in the flight number of | ||||||
2 | that aircraft. | ||||||
3 | (13) Proceeds of mandatory service charges separately
| ||||||
4 | stated on customers' bills for the purchase and consumption of | ||||||
5 | food and
beverages or taxable services purchased at retail from | ||||||
6 | a retailer, to the extent that the proceeds
of the service | ||||||
7 | charge are in fact turned over as tips or as a substitute
for | ||||||
8 | tips to the employees who participate directly in preparing, | ||||||
9 | serving,
hosting or cleaning up the food or beverage function | ||||||
10 | with respect to which
the service charge is imposed.
| ||||||
11 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
12 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
13 | rotary
rigs, cable tool rigs, and workover rigs, (ii) pipe and | ||||||
14 | tubular goods,
including casing and drill strings, (iii) pumps | ||||||
15 | and pump-jack units, (iv)
storage tanks and flow lines, (v) any | ||||||
16 | individual replacement part for oil
field exploration, | ||||||
17 | drilling, and production equipment, and (vi) machinery and
| ||||||
18 | equipment purchased
for lease; but excluding motor vehicles | ||||||
19 | required to be registered under the
Illinois Vehicle Code.
| ||||||
20 | (15) Photoprocessing machinery and equipment, including | ||||||
21 | repair and
replacement parts, both new and used, including that
| ||||||
22 | manufactured on special order, certified by the purchaser to be | ||||||
23 | used
primarily for photoprocessing, and including
| ||||||
24 | photoprocessing machinery and equipment purchased for lease.
| ||||||
25 | (16) Coal and aggregate exploration, mining, off-highway | ||||||
26 | hauling,
processing, maintenance, and reclamation equipment,
|
| |||||||
| |||||||
1 | including replacement parts and equipment, and
including | ||||||
2 | equipment purchased for lease, but excluding motor
vehicles | ||||||
3 | required to be registered under the Illinois Vehicle Code. The | ||||||
4 | changes made to this Section by Public Act 97-767 apply on and | ||||||
5 | after July 1, 2003, but no claim for credit or refund is | ||||||
6 | allowed on or after August 16, 2013 (the effective date of | ||||||
7 | Public Act 98-456)
for such taxes paid during the period | ||||||
8 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
9 | effective date of Public Act 98-456).
| ||||||
10 | (17) Until July 1, 2003, distillation machinery and | ||||||
11 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
12 | retailer, certified by the user to be used
only for the | ||||||
13 | production of ethyl alcohol that will be used for consumption
| ||||||
14 | as motor fuel or as a component of motor fuel for the personal | ||||||
15 | use of the
user, and not subject to sale or resale.
| ||||||
16 | (18) Manufacturing and assembling machinery and equipment | ||||||
17 | used
primarily in the process of manufacturing or assembling | ||||||
18 | tangible
personal property for wholesale or retail sale or | ||||||
19 | lease, whether that sale
or lease is made directly by the | ||||||
20 | manufacturer or by some other person,
whether the materials | ||||||
21 | used in the process are
owned by the manufacturer or some other | ||||||
22 | person, or whether that sale or
lease is made apart from or as | ||||||
23 | an incident to the seller's engaging in
the service occupation | ||||||
24 | of producing machines, tools, dies, jigs,
patterns, gauges, or | ||||||
25 | other similar items of no commercial value on
special order for | ||||||
26 | a particular purchaser. The exemption provided by this |
| |||||||
| |||||||
1 | paragraph (18) does not include machinery and equipment used in | ||||||
2 | (i) the generation of electricity for wholesale or retail sale; | ||||||
3 | (ii) the generation or treatment of natural or artificial gas | ||||||
4 | for wholesale or retail sale that is delivered to customers | ||||||
5 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
6 | water for wholesale or retail sale that is delivered to | ||||||
7 | customers through pipes, pipelines, or mains. The provisions of | ||||||
8 | Public Act 98-583 are declaratory of existing law as to the | ||||||
9 | meaning and scope of this exemption. Beginning on July 1, 2017, | ||||||
10 | the exemption provided by this paragraph (18) includes, but is | ||||||
11 | not limited to, graphic arts machinery and equipment, as | ||||||
12 | defined in paragraph (6) of this Section. Beginning on July 1, | ||||||
13 | 2017, the exemption provided by this paragraph (18) includes, | ||||||
14 | but is not limited to, production related tangible personal | ||||||
15 | property, as defined in Section 3-50 of this Act. The exemption | ||||||
16 | provided by this paragraph (18) is exempt from the provisions | ||||||
17 | of Section 3-90.
| ||||||
18 | (19) Personal property delivered to a purchaser or | ||||||
19 | purchaser's donee
inside Illinois when the purchase order for | ||||||
20 | that personal property was
received by a florist located | ||||||
21 | outside Illinois who has a florist located
inside Illinois | ||||||
22 | deliver the personal property.
| ||||||
23 | (20) Semen used for artificial insemination of livestock | ||||||
24 | for direct
agricultural production.
| ||||||
25 | (21) Horses, or interests in horses, registered with and | ||||||
26 | meeting the
requirements of any of the
Arabian Horse Club |
| |||||||
| |||||||
1 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
2 | Horse Association, United States
Trotting Association, or | ||||||
3 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
4 | racing for prizes. This item (21) is exempt from the provisions | ||||||
5 | of Section 3-90, and the exemption provided for under this item | ||||||
6 | (21) applies for all periods beginning May 30, 1995, but no | ||||||
7 | claim for credit or refund is allowed on or after January 1, | ||||||
8 | 2008
for such taxes paid during the period beginning May 30, | ||||||
9 | 2000 and ending on January 1, 2008.
| ||||||
10 | (22) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients purchased by a | ||||||
13 | lessor who leases
the
equipment, under a lease of one year or | ||||||
14 | longer executed or in effect at the
time the lessor would | ||||||
15 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
16 | hospital
that has been issued an active tax exemption | ||||||
17 | identification number by
the
Department under Section 1g of the | ||||||
18 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
19 | manner that does not qualify for
this exemption or is used in | ||||||
20 | any other non-exempt manner, the lessor
shall be liable for the
| ||||||
21 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
22 | case may
be, based on the fair market value of the property at | ||||||
23 | the time the
non-qualifying use occurs. No lessor shall collect | ||||||
24 | or attempt to collect an
amount (however
designated) that | ||||||
25 | purports to reimburse that lessor for the tax imposed by this
| ||||||
26 | Act or the Service Use Tax Act, as the case may be, if the tax |
| |||||||
| |||||||
1 | has not been
paid by the lessor. If a lessor improperly | ||||||
2 | collects any such amount from the
lessee, the lessee shall have | ||||||
3 | a legal right to claim a refund of that amount
from the lessor. | ||||||
4 | If, however, that amount is not refunded to the lessee for
any | ||||||
5 | reason, the lessor is liable to pay that amount to the | ||||||
6 | Department.
| ||||||
7 | (23) Personal property purchased by a lessor who leases the
| ||||||
8 | property, under
a
lease of
one year or longer executed or in | ||||||
9 | effect at the time
the lessor would otherwise be subject to the | ||||||
10 | tax imposed by this Act,
to a governmental body
that has been | ||||||
11 | issued an active sales tax exemption identification number by | ||||||
12 | the
Department under Section 1g of the Retailers' Occupation | ||||||
13 | Tax Act.
If the
property is leased in a manner that does not | ||||||
14 | qualify for
this exemption
or used in any other non-exempt | ||||||
15 | manner, the lessor shall be liable for the
tax imposed under | ||||||
16 | this Act or the Service Use Tax Act, as the case may
be, based | ||||||
17 | on the fair market value of the property at the time the
| ||||||
18 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
19 | to collect an
amount (however
designated) that purports to | ||||||
20 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
21 | Service Use Tax Act, as the case may be, if the tax has not been
| ||||||
22 | paid by the lessor. If a lessor improperly collects any such | ||||||
23 | amount from the
lessee, the lessee shall have a legal right to | ||||||
24 | claim a refund of that amount
from the lessor. If, however, | ||||||
25 | that amount is not refunded to the lessee for
any reason, the | ||||||
26 | lessor is liable to pay that amount to the Department.
|
| |||||||
| |||||||
1 | (24) Beginning with taxable years ending on or after | ||||||
2 | December
31, 1995
and
ending with taxable years ending on or | ||||||
3 | before December 31, 2004,
personal property that is
donated for | ||||||
4 | disaster relief to be used in a State or federally declared
| ||||||
5 | disaster area in Illinois or bordering Illinois by a | ||||||
6 | manufacturer or retailer
that is registered in this State to a | ||||||
7 | corporation, society, association,
foundation, or institution | ||||||
8 | that has been issued a sales tax exemption
identification | ||||||
9 | number by the Department that assists victims of the disaster
| ||||||
10 | who reside within the declared disaster area.
| ||||||
11 | (25) Beginning with taxable years ending on or after | ||||||
12 | December
31, 1995 and
ending with taxable years ending on or | ||||||
13 | before December 31, 2004, personal
property that is used in the | ||||||
14 | performance of infrastructure repairs in this
State, including | ||||||
15 | but not limited to municipal roads and streets, access roads,
| ||||||
16 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
17 | line extensions,
water distribution and purification | ||||||
18 | facilities, storm water drainage and
retention facilities, and | ||||||
19 | sewage treatment facilities, resulting from a State
or | ||||||
20 | federally declared disaster in Illinois or bordering Illinois | ||||||
21 | when such
repairs are initiated on facilities located in the | ||||||
22 | declared disaster area
within 6 months after the disaster.
| ||||||
23 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
24 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
25 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
26 | provisions
of
Section 3-90.
|
| |||||||
| |||||||
1 | (27) A motor vehicle, as that term is defined in Section | ||||||
2 | 1-146
of the
Illinois
Vehicle Code, that is donated to a | ||||||
3 | corporation, limited liability company,
society, association, | ||||||
4 | foundation, or institution that is determined by the
Department | ||||||
5 | to be organized and operated exclusively for educational | ||||||
6 | purposes.
For purposes of this exemption, "a corporation, | ||||||
7 | limited liability company,
society, association, foundation, | ||||||
8 | or institution organized and operated
exclusively for | ||||||
9 | educational purposes" means all tax-supported public schools,
| ||||||
10 | private schools that offer systematic instruction in useful | ||||||
11 | branches of
learning by methods common to public schools and | ||||||
12 | that compare favorably in
their scope and intensity with the | ||||||
13 | course of study presented in tax-supported
schools, and | ||||||
14 | vocational or technical schools or institutes organized and
| ||||||
15 | operated exclusively to provide a course of study of not less | ||||||
16 | than 6 weeks
duration and designed to prepare individuals to | ||||||
17 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
18 | industrial, business, or commercial
occupation.
| ||||||
19 | (28) Beginning January 1, 2000, personal property, | ||||||
20 | including
food,
purchased through fundraising
events for the | ||||||
21 | benefit of
a public or private elementary or
secondary school, | ||||||
22 | a group of those schools, or one or more school
districts if | ||||||
23 | the events are
sponsored by an entity recognized by the school | ||||||
24 | district that consists
primarily of volunteers and includes
| ||||||
25 | parents and teachers of the school children. This paragraph | ||||||
26 | does not apply
to fundraising
events (i) for the benefit of |
| |||||||
| |||||||
1 | private home instruction or (ii)
for which the fundraising | ||||||
2 | entity purchases the personal property sold at
the events from | ||||||
3 | another individual or entity that sold the property for the
| ||||||
4 | purpose of resale by the fundraising entity and that
profits | ||||||
5 | from the sale to the
fundraising entity. This paragraph is | ||||||
6 | exempt
from the provisions
of Section 3-90.
| ||||||
7 | (29) Beginning January 1, 2000 and through December 31, | ||||||
8 | 2001, new or
used automatic vending
machines that prepare and | ||||||
9 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
10 | items, and replacement parts for these machines.
Beginning | ||||||
11 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
12 | for machines used in
commercial, coin-operated amusement and | ||||||
13 | vending business if a use or occupation
tax is paid on the | ||||||
14 | gross receipts derived from the use of the commercial,
| ||||||
15 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
16 | is exempt from the provisions of Section 3-90.
| ||||||
17 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
18 | food for human consumption that is to be consumed off the | ||||||
19 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
20 | drinks, and food that
has been prepared for immediate | ||||||
21 | consumption) and prescription and
nonprescription medicines, | ||||||
22 | drugs, medical appliances, and insulin, urine
testing | ||||||
23 | materials, syringes, and needles used by diabetics, for human | ||||||
24 | use, when
purchased for use by a person receiving medical | ||||||
25 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
26 | resides in a licensed long-term care facility,
as defined in |
| |||||||
| |||||||
1 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
2 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
3 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
4 | (31) Beginning on
the effective date of this amendatory Act | ||||||
5 | of the 92nd General Assembly,
computers and communications | ||||||
6 | equipment
utilized for any hospital purpose and equipment used | ||||||
7 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
8 | purchased by a lessor who leases
the equipment, under a lease | ||||||
9 | of one year or longer executed or in effect at the
time the | ||||||
10 | lessor would otherwise be subject to the tax imposed by this | ||||||
11 | Act, to a
hospital that has been issued an active tax exemption | ||||||
12 | identification number by
the Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
14 | manner that does not qualify for this exemption or is
used in | ||||||
15 | any other nonexempt manner, the lessor shall be liable for the | ||||||
16 | tax
imposed under this Act or the Service Use Tax Act, as the | ||||||
17 | case may be, based on
the fair market value of the property at | ||||||
18 | the time the nonqualifying use
occurs. No lessor shall collect | ||||||
19 | or attempt to collect an amount (however
designated) that | ||||||
20 | purports to reimburse that lessor for the tax imposed by this
| ||||||
21 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
22 | has not been
paid by the lessor. If a lessor improperly | ||||||
23 | collects any such amount from the
lessee, the lessee shall have | ||||||
24 | a legal right to claim a refund of that amount
from the lessor. | ||||||
25 | If, however, that amount is not refunded to the lessee for
any | ||||||
26 | reason, the lessor is liable to pay that amount to the |
| |||||||
| |||||||
1 | Department.
This paragraph is exempt from the provisions of | ||||||
2 | Section 3-90.
| ||||||
3 | (32) Beginning on
the effective date of this amendatory Act | ||||||
4 | of the 92nd General Assembly,
personal property purchased by a | ||||||
5 | lessor who leases the property,
under a lease of one year or | ||||||
6 | longer executed or in effect at the time the
lessor would | ||||||
7 | otherwise be subject to the tax imposed by this Act, to a
| ||||||
8 | governmental body that has been issued an active sales tax | ||||||
9 | exemption
identification number by the Department under | ||||||
10 | Section 1g of the Retailers'
Occupation Tax Act. If the | ||||||
11 | property is leased in a manner that does not
qualify for this | ||||||
12 | exemption or used in any other nonexempt manner, the lessor
| ||||||
13 | shall be liable for the tax imposed under this Act or the | ||||||
14 | Service Use Tax Act,
as the case may be, based on the fair | ||||||
15 | market value of the property at the time
the nonqualifying use | ||||||
16 | occurs. No lessor shall collect or attempt to collect
an amount | ||||||
17 | (however designated) that purports to reimburse that lessor for | ||||||
18 | the
tax imposed by this Act or the Service Use Tax Act, as the | ||||||
19 | case may be, if the
tax has not been paid by the lessor. If a | ||||||
20 | lessor improperly collects any such
amount from the lessee, the | ||||||
21 | lessee shall have a legal right to claim a refund
of that | ||||||
22 | amount from the lessor. If, however, that amount is not | ||||||
23 | refunded to
the lessee for any reason, the lessor is liable to | ||||||
24 | pay that amount to the
Department. This paragraph is exempt | ||||||
25 | from the provisions of Section 3-90.
| ||||||
26 | (33) On and after July 1, 2003 and through June 30, 2004, |
| |||||||
| |||||||
1 | the use in this State of motor vehicles of
the second division | ||||||
2 | with a gross vehicle weight in excess of 8,000 pounds and
that | ||||||
3 | are subject to the commercial distribution fee imposed under | ||||||
4 | Section
3-815.1 of the Illinois Vehicle Code. Beginning on July | ||||||
5 | 1, 2004 and through June 30, 2005, the use in this State of | ||||||
6 | motor vehicles of the second division: (i) with a gross vehicle | ||||||
7 | weight rating in excess of 8,000 pounds; (ii) that are subject | ||||||
8 | to the commercial distribution fee imposed under Section | ||||||
9 | 3-815.1 of the Illinois Vehicle Code; and (iii) that are | ||||||
10 | primarily used for commercial purposes. Through June 30, 2005, | ||||||
11 | this exemption applies to repair and
replacement parts added | ||||||
12 | after the initial purchase of such a motor vehicle if
that | ||||||
13 | motor
vehicle is used in a manner that would qualify for the | ||||||
14 | rolling stock exemption
otherwise provided for in this Act. For | ||||||
15 | purposes of this paragraph, the term "used for commercial | ||||||
16 | purposes" means the transportation of persons or property in | ||||||
17 | furtherance of any commercial or industrial enterprise, | ||||||
18 | whether for-hire or not.
| ||||||
19 | (34) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 3-90. | ||||||
26 | (35) Beginning January 1, 2010, materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into or | ||||||
2 | upon an aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used in | ||||||
5 | the modification, refurbishment, completion, replacement, | ||||||
6 | repair, and maintenance of aircraft, but excludes any | ||||||
7 | materials, parts, equipment, components, and consumable | ||||||
8 | supplies used in the modification, replacement, repair, and | ||||||
9 | maintenance of aircraft engines or power plants, whether such | ||||||
10 | engines or power plants are installed or uninstalled upon any | ||||||
11 | such aircraft. "Consumable supplies" include, but are not | ||||||
12 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
13 | lubricants, cleaning solution, latex gloves, and protective | ||||||
14 | films. This exemption applies only to the use of qualifying | ||||||
15 | tangible personal property by persons who modify, refurbish, | ||||||
16 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
17 | hold an Air Agency Certificate and are empowered to operate an | ||||||
18 | approved repair station by the Federal Aviation | ||||||
19 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
20 | operations in accordance with Part 145 of the Federal Aviation | ||||||
21 | Regulations. The exemption does not include aircraft operated | ||||||
22 | by a commercial air carrier providing scheduled passenger air | ||||||
23 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
24 | of the Federal Aviation Regulations. The changes made to this | ||||||
25 | paragraph (35) by Public Act 98-534 are declarative of existing | ||||||
26 | law. |
| |||||||
| |||||||
1 | (36) Tangible personal property purchased by a | ||||||
2 | public-facilities corporation, as described in Section | ||||||
3 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
4 | constructing or furnishing a municipal convention hall, but | ||||||
5 | only if the legal title to the municipal convention hall is | ||||||
6 | transferred to the municipality without any further | ||||||
7 | consideration by or on behalf of the municipality at the time | ||||||
8 | of the completion of the municipal convention hall or upon the | ||||||
9 | retirement or redemption of any bonds or other debt instruments | ||||||
10 | issued by the public-facilities corporation in connection with | ||||||
11 | the development of the municipal convention hall. This | ||||||
12 | exemption includes existing public-facilities corporations as | ||||||
13 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
14 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
15 | (37) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
16 | and menstrual cups. | ||||||
17 | (38) Beginning January 1, 2018, taxable services performed | ||||||
18 | on or to tangible personal property the sale of which is exempt | ||||||
19 | from taxation under this Act. This paragraph is exempt from the | ||||||
20 | provisions of Section 2-70. | ||||||
21 | (39) Beginning January 1, 2018, taxable services performed | ||||||
22 | in a transaction that would be exempt from taxation under this | ||||||
23 | Act if it involved solely the sale of tangible personal | ||||||
24 | property. Such exemption could be due to the nature of the | ||||||
25 | seller or of the service provider, the purchaser or service | ||||||
26 | recipient, or other features of the transaction, including but |
| |||||||
| |||||||
1 | not limited to the location or sale-for-resale nature of the | ||||||
2 | transaction. Any such exemption applies to transactions | ||||||
3 | involving solely the sale of tangible personal property, solely | ||||||
4 | the performance of taxable service, or some combination | ||||||
5 | thereof. This paragraph is exempt from the provisions of | ||||||
6 | Section 2-70. | ||||||
7 | (40) Beginning January 1, 2018, taxable services performed | ||||||
8 | for or provided to businesses making purchases of service for | ||||||
9 | the benefit of or in furtherance of the business. This | ||||||
10 | paragraph is exempt from the provisions of Section 2-70. | ||||||
11 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
12 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
13 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
14 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
15 | (35 ILCS 105/3-10)
| ||||||
16 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
17 | Section, the tax
imposed by this Act is at the rate of 6.25% of | ||||||
18 | either the selling price or the
fair market value, if any, of | ||||||
19 | the tangible personal property. Beginning on July 1, 2017, the | ||||||
20 | tax is also imposed at the rate of 6.25% of either the selling | ||||||
21 | price or the
fair market value, if any, of taxable services. In | ||||||
22 | all cases
where property or service functionally used or | ||||||
23 | consumed is the same as the property or service that
was | ||||||
24 | purchased at retail, then the tax is imposed on the selling | ||||||
25 | price of the
property or taxable service . In all cases where |
| |||||||
| |||||||
1 | property functionally used or consumed is a
by-product or waste | ||||||
2 | product that has been refined, manufactured, or produced
from | ||||||
3 | property purchased at retail, then the tax is imposed on the | ||||||
4 | lower of the
fair market value, if any, of the specific | ||||||
5 | property so used in this State or on
the selling price of the | ||||||
6 | property purchased at retail. For purposes of this
Section | ||||||
7 | "fair market value" means the price at which property or | ||||||
8 | service would change
hands between a willing buyer and a | ||||||
9 | willing seller, neither being under any
compulsion to buy or | ||||||
10 | sell and both having reasonable knowledge of the
relevant | ||||||
11 | facts. The fair market value shall be established by Illinois | ||||||
12 | sales by
the taxpayer of the same property or service as that | ||||||
13 | functionally used or consumed, or if
there are no such sales by | ||||||
14 | the taxpayer, then comparable sales or purchases of
property or | ||||||
15 | service of like kind and character in Illinois.
| ||||||
16 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
17 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
18 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
19 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
20 | Beginning on August 6, 2010 through August 15, 2010, with | ||||||
21 | respect to sales tax holiday items as defined in Section 3-6 of | ||||||
22 | this Act, the
tax is imposed at the rate of 1.25%. | ||||||
23 | With respect to gasohol, the tax imposed by this Act | ||||||
24 | applies to (i) 70%
of the proceeds of sales made on or after | ||||||
25 | January 1, 1990, and before
July 1, 2003, (ii) 80% of the | ||||||
26 | proceeds of sales made
on or after July 1, 2003 and on or |
| |||||||
| |||||||
1 | before December 31, 2018, and (iii) 100% of the proceeds of | ||||||
2 | sales made
thereafter.
If, at any time, however, the tax under | ||||||
3 | this Act on sales of gasohol is
imposed at the
rate of 1.25%, | ||||||
4 | then the tax imposed by this Act applies to 100% of the | ||||||
5 | proceeds
of sales of gasohol made during that time.
| ||||||
6 | With respect to majority blended ethanol fuel, the tax | ||||||
7 | imposed by this Act
does
not apply
to the proceeds of sales | ||||||
8 | made on or after July 1, 2003 and on or before
December
31, | ||||||
9 | 2018 but applies to 100% of the proceeds of sales made | ||||||
10 | thereafter.
| ||||||
11 | With respect to biodiesel blends with no less than 1% and | ||||||
12 | no more than 10%
biodiesel, the tax imposed by this Act applies | ||||||
13 | to (i) 80% of the
proceeds of sales made on or after July 1, | ||||||
14 | 2003 and on or before December 31, 2018
and (ii) 100% of the | ||||||
15 | proceeds of sales made
thereafter.
If, at any time, however, | ||||||
16 | the tax under this Act on sales of biodiesel blends
with no | ||||||
17 | less than 1% and no more than 10% biodiesel
is imposed at the | ||||||
18 | rate of
1.25%, then the
tax imposed by this Act applies to 100% | ||||||
19 | of the proceeds of sales of biodiesel
blends with no less than | ||||||
20 | 1% and no more than 10% biodiesel
made
during that time.
| ||||||
21 | With respect to 100% biodiesel and biodiesel blends with | ||||||
22 | more than 10%
but no more than 99% biodiesel, the tax imposed | ||||||
23 | by this Act does not apply to
the
proceeds of sales made on or | ||||||
24 | after July 1, 2003 and on or before
December 31, 2018 but | ||||||
25 | applies to 100% of the proceeds of sales made
thereafter.
| ||||||
26 | With respect to food for human consumption that is to be |
| |||||||
| |||||||
1 | consumed off the
premises where it is sold (other than | ||||||
2 | alcoholic beverages, soft drinks, and
food that has been | ||||||
3 | prepared for immediate consumption) and prescription and
| ||||||
4 | nonprescription medicines, drugs, medical appliances, products | ||||||
5 | classified as Class III medical devices by the United States | ||||||
6 | Food and Drug Administration that are used for cancer treatment | ||||||
7 | pursuant to a prescription, as well as any accessories and | ||||||
8 | components related to those devices, modifications to a motor
| ||||||
9 | vehicle for the purpose of rendering it usable by a person with | ||||||
10 | a disability, and
insulin, urine testing materials, syringes, | ||||||
11 | and needles used by diabetics, for
human use, the tax is | ||||||
12 | imposed at the rate of 1%. For the purposes of this
Section, | ||||||
13 | until September 1, 2009: the term "soft drinks" means any | ||||||
14 | complete, finished, ready-to-use,
non-alcoholic drink, whether | ||||||
15 | carbonated or not, including but not limited to
soda water, | ||||||
16 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
17 | other
preparations commonly known as soft drinks of whatever | ||||||
18 | kind or description that
are contained in any closed or sealed | ||||||
19 | bottle, can, carton, or container,
regardless of size; but | ||||||
20 | "soft drinks" does not include coffee, tea, non-carbonated
| ||||||
21 | water, infant formula, milk or milk products as defined in the | ||||||
22 | Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||||||
23 | containing 50% or more
natural fruit or vegetable juice.
| ||||||
24 | Notwithstanding any other provisions of this
Act, | ||||||
25 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
26 | beverages that contain natural or artificial sweeteners. "Soft |
| |||||||
| |||||||
1 | drinks" do not include beverages that contain milk or milk | ||||||
2 | products, soy, rice or similar milk substitutes, or greater | ||||||
3 | than 50% of vegetable or fruit juice by volume. | ||||||
4 | Until August 1, 2009, and notwithstanding any other | ||||||
5 | provisions of this
Act, "food for human consumption that is to | ||||||
6 | be consumed off the premises where
it is sold" includes all | ||||||
7 | food sold through a vending machine, except soft
drinks and | ||||||
8 | food products that are dispensed hot from a vending machine,
| ||||||
9 | regardless of the location of the vending machine. Beginning | ||||||
10 | August 1, 2009, and notwithstanding any other provisions of | ||||||
11 | this Act, "food for human consumption that is to be consumed | ||||||
12 | off the premises where it is sold" includes all food sold | ||||||
13 | through a vending machine, except soft drinks, candy, and food | ||||||
14 | products that are dispensed hot from a vending machine, | ||||||
15 | regardless of the location of the vending machine.
| ||||||
16 | Notwithstanding any other provisions of this
Act, | ||||||
17 | beginning September 1, 2009, "food for human consumption that | ||||||
18 | is to be consumed off the premises where
it is sold" does not | ||||||
19 | include candy. For purposes of this Section, "candy" means a | ||||||
20 | preparation of sugar, honey, or other natural or artificial | ||||||
21 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
22 | ingredients or flavorings in the form of bars, drops, or | ||||||
23 | pieces. "Candy" does not include any preparation that contains | ||||||
24 | flour or requires refrigeration. | ||||||
25 | Notwithstanding any other provisions of this
Act, | ||||||
26 | beginning September 1, 2009, "nonprescription medicines and |
| |||||||
| |||||||
1 | drugs" does not include grooming and hygiene products. For | ||||||
2 | purposes of this Section, "grooming and hygiene products" | ||||||
3 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
4 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
5 | lotions and screens, unless those products are available by | ||||||
6 | prescription only, regardless of whether the products meet the | ||||||
7 | definition of "over-the-counter-drugs". For the purposes of | ||||||
8 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
9 | use that contains a label that identifies the product as a drug | ||||||
10 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
11 | label includes: | ||||||
12 | (A) A "Drug Facts" panel; or | ||||||
13 | (B) A statement of the "active ingredient(s)" with a | ||||||
14 | list of those ingredients contained in the compound, | ||||||
15 | substance or preparation. | ||||||
16 | Beginning on the effective date of this amendatory Act of | ||||||
17 | the 98th General Assembly, "prescription and nonprescription | ||||||
18 | medicines and drugs" includes medical cannabis purchased from a | ||||||
19 | registered dispensing organization under the Compassionate Use | ||||||
20 | of Medical Cannabis Pilot Program Act. | ||||||
21 | If the property that is purchased at retail from a retailer | ||||||
22 | is acquired
outside Illinois and used outside Illinois before | ||||||
23 | being brought to Illinois
for use here and is taxable under | ||||||
24 | this Act, the "selling price" on which
the tax is computed | ||||||
25 | shall be reduced by an amount that represents a
reasonable | ||||||
26 | allowance for depreciation for the period of prior out-of-state |
| |||||||
| |||||||
1 | use.
| ||||||
2 | (Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15; | ||||||
3 | 99-858, eff. 8-19-16.)
| ||||||
4 | (35 ILCS 105/3-10.5)
| ||||||
5 | Sec. 3-10.5.
Direct payment of retailers' occupation tax | ||||||
6 | and applicable
local retailers' occupation tax by purchaser; | ||||||
7 | purchaser relieved of paying use
tax and local retailers' | ||||||
8 | occupation tax reimbursement liabilities to retailer.
| ||||||
9 | (a) A retailer who makes a retail sale of tangible personal | ||||||
10 | property or taxable service to a
purchaser who provides the | ||||||
11 | retailer with a copy of the purchaser's valid Direct
Pay Permit | ||||||
12 | issued under Section 2-10.5 of the Retailers' Occupation Tax | ||||||
13 | Act is
not required under Section 3-45 of this Act to collect | ||||||
14 | the tax imposed by this
Act on that sale.
| ||||||
15 | (b) A purchaser who makes a purchase from a retailer who | ||||||
16 | would otherwise
incur retailers' occupation tax liability on | ||||||
17 | the transaction and who provides
the retailer with a copy of a | ||||||
18 | valid Direct Pay Permit issued under Section
2-10.5 of the | ||||||
19 | Retailers' Occupation Tax Act does not incur the tax imposed by
| ||||||
20 | this Act on the purchase. The purchaser assumes the retailer's | ||||||
21 | obligation to
pay the retailers' occupation tax directly to the | ||||||
22 | Department, including all
local retailers' occupation tax | ||||||
23 | liabilities applicable to that retail sale.
| ||||||
24 | (c) A purchaser who makes a purchase from a retailer who | ||||||
25 | would not incur
retailers' occupation tax liability on the |
| |||||||
| |||||||
1 | transaction and who provides the
retailer with a copy of a | ||||||
2 | valid Direct Pay Permit issued under Section 2-10.5
of the | ||||||
3 | Retailers' Occupation Tax Act incurs the tax imposed by this | ||||||
4 | Act on the
purchase. If, on any transaction, the retailer is | ||||||
5 | entitled under this Act to a
discount for collecting and | ||||||
6 | remitting the tax imposed under this Act to the
Department, the | ||||||
7 | right to the discount provided in Section 9 of this Act shall
| ||||||
8 | be transferred to the Permit holder. If the retailer would not | ||||||
9 | be entitled to
a discount as provided in Section 9 of this Act, | ||||||
10 | then the Permit holder is not
entitled to a discount.
| ||||||
11 | (Source: P.A. 92-484, eff. 8-23-01.)
| ||||||
12 | (35 ILCS 105/3-45) (from Ch. 120, par. 439.3-45)
| ||||||
13 | Sec. 3-45. Collection. The tax imposed by this Act
shall be | ||||||
14 | collected from the
purchaser by a retailer maintaining a place | ||||||
15 | of business in this State or a
retailer authorized by the | ||||||
16 | Department under Section 6 of this Act,
and shall be remitted | ||||||
17 | to the Department as provided
in Section 9 of this Act, except | ||||||
18 | as provided in Section 3-10.5 of
this Act.
| ||||||
19 | The tax imposed by this Act that is not paid to a
retailer | ||||||
20 | under this Section shall be paid to
the Department directly by | ||||||
21 | any person using the property
within this State as provided in | ||||||
22 | Section 10 of this
Act.
| ||||||
23 | Retailers shall collect the tax from users by adding the | ||||||
24 | tax to the
selling price of tangible personal property or | ||||||
25 | taxable service , when sold for use, in the
manner prescribed by |
| |||||||
| |||||||
1 | the Department. The Department may adopt and
promulgate | ||||||
2 | reasonable rules and regulations for the adding of the tax
by | ||||||
3 | retailers to selling prices by prescribing bracket systems
for | ||||||
4 | the purpose of enabling the retailers to add and collect,
as | ||||||
5 | far as practicable, the amount of the tax.
| ||||||
6 | If a seller collects use tax measured by receipts that are | ||||||
7 | not
subject to use tax, or if a seller, in collecting use tax | ||||||
8 | measured by
receipts that are subject to tax under this Act, | ||||||
9 | collects more from the
purchaser than the required amount of | ||||||
10 | the use tax on the transaction,
the purchaser shall have a | ||||||
11 | legal right to claim a refund of
that amount from the seller. | ||||||
12 | If, however, that
amount is not refunded to the purchaser for | ||||||
13 | any reason, the seller is
liable to pay that amount to the | ||||||
14 | Department. This paragraph
does not apply to an amount | ||||||
15 | collected by the seller as use tax on receipts
that are subject | ||||||
16 | to tax under this Act as long as the
collection is made in | ||||||
17 | compliance with the tax collection brackets
prescribed by the | ||||||
18 | Department in its rules and regulations.
| ||||||
19 | (Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
| ||||||
20 | (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
| ||||||
21 | Sec. 3-50. Manufacturing and assembly exemption. The | ||||||
22 | manufacturing
and assembling machinery and equipment exemption | ||||||
23 | includes
machinery and equipment that replaces machinery and | ||||||
24 | equipment in an
existing manufacturing facility as well as | ||||||
25 | machinery and equipment that
are for use in an expanded or new |
| |||||||
| |||||||
1 | manufacturing facility. The machinery and
equipment exemption | ||||||
2 | also includes machinery and equipment used in the
general | ||||||
3 | maintenance or repair of exempt machinery and equipment or for
| ||||||
4 | in-house manufacture of exempt machinery and equipment. | ||||||
5 | Beginning on July 1, 2017, the manufacturing and assembling | ||||||
6 | machinery and equipment exemption also includes graphic arts | ||||||
7 | machinery and equipment, as defined in paragraph (6) of Section | ||||||
8 | 3-5. Beginning on July 1, 2017, the manufacturing and | ||||||
9 | assembling machinery and equipment exemption also includes | ||||||
10 | production related tangible personal property, as defined in | ||||||
11 | this Section. The machinery and equipment exemption does not | ||||||
12 | include machinery and equipment used in (i) the generation of | ||||||
13 | electricity for wholesale or retail sale; (ii) the generation | ||||||
14 | or treatment of natural or artificial gas for wholesale or | ||||||
15 | retail sale that is delivered to customers through pipes, | ||||||
16 | pipelines, or mains; or (iii) the treatment of water for | ||||||
17 | wholesale or retail sale that is delivered to customers through | ||||||
18 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
19 | Act of the 98th General Assembly are declaratory of existing | ||||||
20 | law as to the meaning and scope of this exemption. For the
| ||||||
21 | purposes of this exemption, terms have the following
meanings:
| ||||||
22 | (1) "Manufacturing process" means the production of
an | ||||||
23 | article of tangible personal property, whether the article
| ||||||
24 | is a finished product or an article for use in the process | ||||||
25 | of manufacturing
or assembling a different article of | ||||||
26 | tangible personal property, by
a procedure commonly |
| |||||||
| |||||||
1 | regarded as manufacturing, processing, fabricating, or
| ||||||
2 | refining that changes some existing material into a | ||||||
3 | material
with a different form, use, or name. In relation | ||||||
4 | to a recognized integrated
business composed of a series of | ||||||
5 | operations that collectively constitute
manufacturing, or | ||||||
6 | individually constitute
manufacturing operations, the | ||||||
7 | manufacturing process commences with the
first operation | ||||||
8 | or stage of production in the series
and does not end until | ||||||
9 | the completion of the final product
in the last operation | ||||||
10 | or stage of production in the series. For purposes
of this | ||||||
11 | exemption, photoprocessing is a
manufacturing process of | ||||||
12 | tangible personal property for wholesale or retail
sale.
| ||||||
13 | (2) "Assembling process" means the production of
an | ||||||
14 | article of tangible personal property, whether the article
| ||||||
15 | is a finished product or an article for use in the process | ||||||
16 | of manufacturing
or assembling a different article of | ||||||
17 | tangible personal property, by the
combination of existing | ||||||
18 | materials in a manner commonly regarded as
assembling that | ||||||
19 | results in an article or material of a different
form, use, | ||||||
20 | or name.
| ||||||
21 | (3) "Machinery" means major
mechanical machines or | ||||||
22 | major components of those machines contributing to a
| ||||||
23 | manufacturing or assembling process.
| ||||||
24 | (4) "Equipment" includes an independent device
or tool | ||||||
25 | separate from machinery but essential to an integrated
| ||||||
26 | manufacturing or assembly process; including computers |
| |||||||
| |||||||
1 | used primarily in
a manufacturer's computer assisted | ||||||
2 | design,
computer assisted manufacturing (CAD/CAM) system; | ||||||
3 | any
subunit or assembly comprising a component of any | ||||||
4 | machinery or auxiliary,
adjunct, or attachment parts of | ||||||
5 | machinery, such as tools, dies, jigs,
fixtures, patterns, | ||||||
6 | and molds; and any parts that require
periodic replacement | ||||||
7 | in the course of normal operation; but does not
include | ||||||
8 | hand tools. Equipment includes chemicals or chemicals | ||||||
9 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
10 | acting as catalysts effect a direct and
immediate change | ||||||
11 | upon a
product being manufactured or assembled for | ||||||
12 | wholesale or retail sale or
lease. | ||||||
13 | (5) "Production related tangible personal property" | ||||||
14 | means all tangible personal property that is used or | ||||||
15 | consumed by the purchaser in a manufacturing facility in | ||||||
16 | which a manufacturing process takes place and includes, | ||||||
17 | without limitation, tangible personal property that is | ||||||
18 | purchased for incorporation into real estate within a | ||||||
19 | manufacturing facility and tangible personal property that | ||||||
20 | is used or consumed in activities such as research and | ||||||
21 | development, preproduction material handling, receiving, | ||||||
22 | quality control, inventory control, storage, staging, and | ||||||
23 | packaging for shipping and transportation purposes. | ||||||
24 | "Production related tangible personal property" does not | ||||||
25 | include (i) tangible personal property that is used, within | ||||||
26 | or without a manufacturing facility, in sales, purchasing, |
| |||||||
| |||||||
1 | accounting, fiscal management, marketing, personnel | ||||||
2 | recruitment or selection, or landscaping or (ii) tangible | ||||||
3 | personal property that is required to be titled or | ||||||
4 | registered with a department, agency, or unit of federal, | ||||||
5 | State, or local government.
| ||||||
6 | The manufacturing and assembling machinery and equipment | ||||||
7 | exemption includes production related tangible personal | ||||||
8 | property that is purchased (i) on or after July 1, 2007 and on | ||||||
9 | or before June 30, 2008 or (ii) on and after July 1, 2017 . The | ||||||
10 | exemption for production related tangible personal property | ||||||
11 | purchased on or after July 1, 2007 and on or before June 30, | ||||||
12 | 2008 is subject to both of the following limitations: | ||||||
13 | (1) The maximum amount of the exemption for any one | ||||||
14 | taxpayer may not exceed 5% of the purchase price of | ||||||
15 | production related tangible personal property that is | ||||||
16 | purchased on or after July 1, 2007 and on or before June | ||||||
17 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
18 | be earned by the purchase of production related tangible | ||||||
19 | personal property for which an exemption is received under | ||||||
20 | this Section. | ||||||
21 | (2) The maximum aggregate amount of the exemptions for | ||||||
22 | production related tangible personal property awarded | ||||||
23 | under this Act and the Retailers' Occupation Tax Act to all | ||||||
24 | taxpayers may not exceed $10,000,000. If the claims for the | ||||||
25 | exemption exceed $10,000,000, then the Department shall | ||||||
26 | reduce the amount of the exemption to each taxpayer on a |
| |||||||
| |||||||
1 | pro rata basis. | ||||||
2 | The Department may adopt rules to implement and administer the | ||||||
3 | exemption for production related tangible personal property. | ||||||
4 | The manufacturing and assembling machinery and equipment
| ||||||
5 | exemption includes the sale of materials to a purchaser who
| ||||||
6 | produces exempted types of machinery, equipment, or tools and | ||||||
7 | who rents or
leases that machinery, equipment, or tools to a
| ||||||
8 | manufacturer of tangible
personal property. This exemption | ||||||
9 | also includes the sale of materials to a
purchaser who | ||||||
10 | manufactures those materials into an exempted type of
| ||||||
11 | machinery, equipment, or tools that the purchaser uses
himself | ||||||
12 | or herself in the
manufacturing of tangible personal property. | ||||||
13 | This exemption includes the
sale of exempted types of machinery | ||||||
14 | or equipment to a
purchaser who is not the manufacturer, but | ||||||
15 | who rents or leases the use of
the property to a manufacturer. | ||||||
16 | The purchaser of the machinery and
equipment who has an active | ||||||
17 | resale registration number shall
furnish that number to the | ||||||
18 | seller at the time of purchase.
A user of the machinery, | ||||||
19 | equipment, or tools without an
active resale registration | ||||||
20 | number shall prepare a certificate of exemption
for each | ||||||
21 | transaction stating facts establishing the exemption for that
| ||||||
22 | transaction, and that certificate shall be
available to the | ||||||
23 | Department for inspection or audit. The Department shall
| ||||||
24 | prescribe the form of the certificate. Informal rulings, | ||||||
25 | opinions, or
letters issued by the Department in
response to an | ||||||
26 | inquiry or request for an opinion from any person
regarding the |
| |||||||
| |||||||
1 | coverage and applicability of this exemption to specific
| ||||||
2 | devices shall be published, maintained as a public record, and | ||||||
3 | made
available for public inspection and copying. If the | ||||||
4 | informal ruling,
opinion, or letter contains trade secrets or | ||||||
5 | other confidential
information, where possible, the Department | ||||||
6 | shall delete that information
before publication. Whenever | ||||||
7 | informal rulings, opinions, or
letters contain a policy of | ||||||
8 | general applicability, the Department
shall formulate and | ||||||
9 | adopt that policy as a rule in accordance with the
Illinois | ||||||
10 | Administrative Procedure Act.
| ||||||
11 | The manufacturing and assembling machinery and equipment
| ||||||
12 | exemption, including the addition of production related | ||||||
13 | tangible personal property, is exempt from the provisions of | ||||||
14 | Section 3-90. | ||||||
15 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
16 | (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
| ||||||
17 | Sec. 3-55. Multistate exemption. To prevent actual or | ||||||
18 | likely multistate taxation, the tax imposed by this
Act
does | ||||||
19 | not apply to the use of
tangible personal property in this | ||||||
20 | State under the following circumstances:
| ||||||
21 | (a) The use, in this State, of tangible personal property | ||||||
22 | acquired
outside this State by a nonresident individual and | ||||||
23 | brought into this
State by the individual for his or her own | ||||||
24 | use while temporarily within
this State or while passing | ||||||
25 | through this State.
|
| |||||||
| |||||||
1 | (b) The use, in this State, of tangible personal
property | ||||||
2 | by an
interstate carrier for hire as rolling stock moving in | ||||||
3 | interstate
commerce or by lessors under a lease of one year or | ||||||
4 | longer executed or
in effect at the time of purchase of | ||||||
5 | tangible personal property by
interstate carriers for-hire for | ||||||
6 | use as rolling stock moving in interstate
commerce as long as | ||||||
7 | so used by the interstate carriers for-hire, and equipment
| ||||||
8 | operated by a telecommunications provider, licensed as a common | ||||||
9 | carrier by the
Federal Communications Commission, which is | ||||||
10 | permanently installed in or affixed
to aircraft moving in | ||||||
11 | interstate commerce.
| ||||||
12 | (c) The use, in this State, by owners, lessors,
or
shippers
| ||||||
13 | of tangible personal property that is utilized by interstate | ||||||
14 | carriers
for hire for use as rolling stock moving in interstate | ||||||
15 | commerce as
long as so used by the interstate carriers for | ||||||
16 | hire, and equipment
operated by a telecommunications provider, | ||||||
17 | licensed as a common carrier by the
Federal Communications | ||||||
18 | Commission, which is permanently installed in or affixed
to | ||||||
19 | aircraft moving in interstate commerce.
| ||||||
20 | (d) The use, in this State, of tangible personal property | ||||||
21 | or taxable service that is
acquired outside this State and | ||||||
22 | caused to be brought into or performed in this State by
a | ||||||
23 | person who has already paid a tax in another State in respect | ||||||
24 | to the
sale, purchase, or use of that property, to the extent | ||||||
25 | of the amount of
the tax properly due and paid in the other | ||||||
26 | State.
|
| |||||||
| |||||||
1 | (e) The temporary storage, in this State, of tangible | ||||||
2 | personal
property that is acquired outside this State and that, | ||||||
3 | after
being brought into this State and stored here | ||||||
4 | temporarily, is used
solely outside this State or is physically | ||||||
5 | attached to or incorporated
into other tangible personal | ||||||
6 | property that is used solely outside this
State, or is altered | ||||||
7 | by converting, fabricating, manufacturing, printing,
| ||||||
8 | processing, or shaping, and, as altered, is used solely outside | ||||||
9 | this State.
| ||||||
10 | (f) The temporary storage in this State of building | ||||||
11 | materials and
fixtures that are acquired either in this State | ||||||
12 | or outside this State
by an Illinois registered combination | ||||||
13 | retailer and construction contractor, and
that the purchaser | ||||||
14 | thereafter uses outside this State by incorporating that
| ||||||
15 | property into real estate located outside this State.
| ||||||
16 | (g) The use or purchase of tangible personal property by a | ||||||
17 | common carrier
by rail or motor that receives the physical | ||||||
18 | possession of the property in
Illinois, and
that transports the | ||||||
19 | property, or shares with another common carrier in the
| ||||||
20 | transportation of the property, out of Illinois on a standard | ||||||
21 | uniform bill of
lading showing the seller of the property as | ||||||
22 | the shipper or consignor of the
property to a destination | ||||||
23 | outside Illinois, for use outside Illinois.
| ||||||
24 | (h) Except as provided in subsection (h-1), the use, in | ||||||
25 | this State, of a motor vehicle that was sold in
this State to a | ||||||
26 | nonresident, even though the motor vehicle is
delivered to the |
| |||||||
| |||||||
1 | nonresident in this State, if the motor vehicle
is not to be | ||||||
2 | titled in this State, and if a
drive-away permit is issued to | ||||||
3 | the motor vehicle as
provided in Section 3-603 of the Illinois | ||||||
4 | Vehicle Code or if the
nonresident purchaser has vehicle | ||||||
5 | registration plates to transfer
to the motor vehicle upon | ||||||
6 | returning to his or her home state.
The issuance of the | ||||||
7 | drive-away permit or having the
out-of-state
registration | ||||||
8 | plates to be transferred shall be prima facie evidence
that the | ||||||
9 | motor vehicle will not be titled in this State.
| ||||||
10 | (h-1) The exemption under subsection (h) does not apply if | ||||||
11 | the state in which the motor vehicle will be titled does not | ||||||
12 | allow a reciprocal exemption for the use in that state of a | ||||||
13 | motor vehicle sold and delivered in that state to an Illinois | ||||||
14 | resident but titled in Illinois. The tax collected under this | ||||||
15 | Act on the sale of a motor vehicle in this State to a resident | ||||||
16 | of another state that does not allow a reciprocal exemption | ||||||
17 | shall be imposed at a rate equal to the state's rate of tax on | ||||||
18 | taxable property in the state in which the purchaser is a | ||||||
19 | resident, except that the tax shall not exceed the tax that | ||||||
20 | would otherwise be imposed under this Act. At the time of the | ||||||
21 | sale, the purchaser shall execute a statement, signed under | ||||||
22 | penalty of perjury, of his or her intent to title the vehicle | ||||||
23 | in the state in which the purchaser is a resident within 30 | ||||||
24 | days after the sale and of the fact of the payment to the State | ||||||
25 | of Illinois of tax in an amount equivalent to the state's rate | ||||||
26 | of tax on taxable property in his or her state of residence and |
| |||||||
| |||||||
1 | shall submit the statement to the appropriate tax collection | ||||||
2 | agency in his or her state of residence. In addition, the | ||||||
3 | retailer must retain a signed copy of the statement in his or | ||||||
4 | her records. Nothing in this subsection shall be construed to | ||||||
5 | require the removal of the vehicle from this state following | ||||||
6 | the filing of an intent to title the vehicle in the purchaser's | ||||||
7 | state of residence if the purchaser titles the vehicle in his | ||||||
8 | or her state of residence within 30 days after the date of | ||||||
9 | sale. The tax collected under this Act in accordance with this | ||||||
10 | subsection (h-1) shall be proportionately distributed as if the | ||||||
11 | tax were collected at the 6.25% general rate imposed under this | ||||||
12 | Act.
| ||||||
13 | (h-2) The following exemptions apply with respect to | ||||||
14 | certain aircraft: | ||||||
15 | (1) Beginning on July 1, 2007, no tax is imposed under | ||||||
16 | this Act on the purchase of an aircraft, as defined in | ||||||
17 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
18 | following conditions are met: | ||||||
19 | (A) the aircraft leaves this State within 15 days | ||||||
20 | after the later of either the issuance of the final | ||||||
21 | billing for the purchase of the aircraft or the | ||||||
22 | authorized approval for return to service, completion | ||||||
23 | of the maintenance record entry, and completion of the | ||||||
24 | test flight and ground test for inspection, as required | ||||||
25 | by 14 C.F.R. 91.407; | ||||||
26 | (B) the aircraft is not based or registered in this |
| |||||||
| |||||||
1 | State after the purchase of the aircraft; and | ||||||
2 | (C) the purchaser provides the Department with a | ||||||
3 | signed and dated certification, on a form prescribed by | ||||||
4 | the Department, certifying that the requirements of | ||||||
5 | this item (1) are met. The certificate must also | ||||||
6 | include the name and address of the purchaser, the | ||||||
7 | address of the location where the aircraft is to be | ||||||
8 | titled or registered, the address of the primary | ||||||
9 | physical location of the aircraft, and other | ||||||
10 | information that the Department may reasonably | ||||||
11 | require. | ||||||
12 | (2) Beginning on July 1, 2007, no tax is imposed under | ||||||
13 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
14 | of the Illinois Aeronautics Act, that is temporarily | ||||||
15 | located in this State for the purpose of a prepurchase | ||||||
16 | evaluation if all of the following conditions are met: | ||||||
17 | (A) the aircraft is not based or registered in this | ||||||
18 | State after the prepurchase evaluation; and | ||||||
19 | (B) the purchaser provides the Department with a | ||||||
20 | signed and dated certification, on a form prescribed by | ||||||
21 | the Department, certifying that the requirements of | ||||||
22 | this item (2) are met. The certificate must also | ||||||
23 | include the name and address of the purchaser, the | ||||||
24 | address of the location where the aircraft is to be | ||||||
25 | titled or registered, the address of the primary | ||||||
26 | physical location of the aircraft, and other |
| |||||||
| |||||||
1 | information that the Department may reasonably | ||||||
2 | require. | ||||||
3 | (3) Beginning on July 1, 2007, no tax is imposed under | ||||||
4 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
5 | of the Illinois Aeronautics Act, that is temporarily | ||||||
6 | located in this State for the purpose of a post-sale | ||||||
7 | customization if all of the following conditions are met: | ||||||
8 | (A) the aircraft leaves this State within 15 days | ||||||
9 | after the authorized approval for return to service, | ||||||
10 | completion of the maintenance record entry, and | ||||||
11 | completion of the test flight and ground test for | ||||||
12 | inspection, as required by 14 C.F.R. 91.407; | ||||||
13 | (B) the aircraft is not based or registered in this | ||||||
14 | State either before or after the post-sale | ||||||
15 | customization; and | ||||||
16 | (C) the purchaser provides the Department with a | ||||||
17 | signed and dated certification, on a form prescribed by | ||||||
18 | the Department, certifying that the requirements of | ||||||
19 | this item (3) are met. The certificate must also | ||||||
20 | include the name and address of the purchaser, the | ||||||
21 | address of the location where the aircraft is to be | ||||||
22 | titled or registered, the address of the primary | ||||||
23 | physical location of the aircraft, and other | ||||||
24 | information that the Department may reasonably | ||||||
25 | require. | ||||||
26 | If tax becomes due under this subsection (h-2) because of |
| |||||||
| |||||||
1 | the purchaser's use of the aircraft in this State, the | ||||||
2 | purchaser shall file a return with the Department and pay the | ||||||
3 | tax on the fair market value of the aircraft. This return and | ||||||
4 | payment of the tax must be made no later than 30 days after the | ||||||
5 | aircraft is used in a taxable manner in this State. The tax is | ||||||
6 | based on the fair market value of the aircraft on the date that | ||||||
7 | it is first used in a taxable manner in this State. | ||||||
8 | For purposes of this subsection (h-2): | ||||||
9 | "Based in this State" means hangared, stored, or otherwise | ||||||
10 | used, excluding post-sale customizations as defined in this | ||||||
11 | Section, for 10 or more days in each 12-month period | ||||||
12 | immediately following the date of the sale of the aircraft. | ||||||
13 | "Post-sale customization" means any improvement, | ||||||
14 | maintenance, or repair that is performed on an aircraft | ||||||
15 | following a transfer of ownership of the aircraft. | ||||||
16 | "Prepurchase evaluation" means an examination of an | ||||||
17 | aircraft to provide a potential purchaser with information | ||||||
18 | relevant to the potential purchase. | ||||||
19 | "Registered in this State" means an aircraft registered | ||||||
20 | with the Department of Transportation, Aeronautics Division, | ||||||
21 | or titled or registered with the Federal Aviation | ||||||
22 | Administration to an address located in this State.
| ||||||
23 | This subsection (h-2) is exempt from the provisions of | ||||||
24 | Section 3-90.
| ||||||
25 | (i) Beginning July 1, 1999, the use, in this State, of fuel | ||||||
26 | acquired
outside this State and brought into this State in the |
| |||||||
| |||||||
1 | fuel supply
tanks of locomotives engaged in freight hauling and | ||||||
2 | passenger service for
interstate commerce. This subsection is | ||||||
3 | exempt from the provisions of Section
3-90.
| ||||||
4 | (j) Beginning on January 1, 2002 and through June 30, 2016, | ||||||
5 | the use of tangible personal property
purchased from an | ||||||
6 | Illinois retailer by a taxpayer engaged in centralized
| ||||||
7 | purchasing activities in Illinois who will, upon receipt of the | ||||||
8 | property in
Illinois, temporarily store the property in | ||||||
9 | Illinois (i) for the purpose of
subsequently transporting it | ||||||
10 | outside this State for use or consumption
thereafter solely | ||||||
11 | outside this State or (ii) for the purpose of being
processed, | ||||||
12 | fabricated, or manufactured into, attached to, or incorporated | ||||||
13 | into
other tangible personal property to be transported outside | ||||||
14 | this State and
thereafter used or consumed solely outside this | ||||||
15 | State. The Director of Revenue
shall, pursuant to rules adopted | ||||||
16 | in accordance with the Illinois Administrative
Procedure Act, | ||||||
17 | issue a permit to any taxpayer in good standing with the
| ||||||
18 | Department who is eligible for the exemption under this | ||||||
19 | subsection (j). The
permit issued under this subsection (j) | ||||||
20 | shall authorize the holder, to the
extent and in the manner | ||||||
21 | specified in the rules adopted under this Act, to
purchase | ||||||
22 | tangible personal property from a retailer exempt from the | ||||||
23 | taxes
imposed by this Act. Taxpayers shall maintain all | ||||||
24 | necessary books and records
to substantiate the use and | ||||||
25 | consumption of all such tangible personal property
outside of | ||||||
26 | the State of Illinois.
|
| |||||||
| |||||||
1 | (Source: P.A. 97-73, eff. 6-30-11.)
| ||||||
2 | (35 ILCS 105/3-65) (from Ch. 120, par. 439.3-65)
| ||||||
3 | Sec. 3-65. R.O.T. nontaxability. If the seller of tangible | ||||||
4 | personal
property or taxable service for use would not be
| ||||||
5 | taxable under the Retailers' Occupation Tax Act despite all | ||||||
6 | elements of
the sale occurring in Illinois, then the tax | ||||||
7 | imposed by this Act does
not apply to the use of the tangible | ||||||
8 | personal
property or taxable service in this State.
| ||||||
9 | (Source: P.A. 91-51, eff. 6-30-99.)
| ||||||
10 | (35 ILCS 105/3-75) (from Ch. 120, par. 439.3-75)
| ||||||
11 | Sec. 3-75. Serviceman transfer. Tangible personal property | ||||||
12 | purchased by a serviceman, as defined in
Section 2 of the | ||||||
13 | Service Occupation Tax Act, is subject to the tax
imposed by | ||||||
14 | this Act when purchased for transfer by the serviceman
| ||||||
15 | incidental to completion of a maintenance agreement. Effective | ||||||
16 | January 1, 2018, purchases of tangible personal property | ||||||
17 | purchased for transfer incidental to performance of a taxable | ||||||
18 | service is not subject to the tax imposed by this Act.
| ||||||
19 | (Source: P.A. 91-51, eff. 6-30-99.)
| ||||||
20 | (35 ILCS 105/3a) (from Ch. 120, par. 439.3a)
| ||||||
21 | Sec. 3a.
The tax imposed by the Act shall when collected be | ||||||
22 | stated as
a distinct item separate and apart from the selling | ||||||
23 | price of the tangible
personal property or taxable service . |
| |||||||
| |||||||
1 | However, where it is not possible to state the sales
tax | ||||||
2 | separately in situations such as sales from vending machines or | ||||||
3 | sales
of liquor by the drink the Department may by rule exempt | ||||||
4 | such sales from
this requirement so long as purchasers are | ||||||
5 | notified by a sign that the tax
is included in the selling | ||||||
6 | price.
| ||||||
7 | (Source: P.A. 84-229.)
| ||||||
8 | (35 ILCS 105/4) (from Ch. 120, par. 439.4)
| ||||||
9 | Sec. 4.
Evidence that tangible personal property or taxable | ||||||
10 | service was sold by any person for
delivery to a person | ||||||
11 | residing or engaged in business in this State shall be
prima | ||||||
12 | facie evidence that such tangible personal property or taxable | ||||||
13 | service was sold for use
in this State.
| ||||||
14 | (Source: Laws 1955, p. 2027.)
| ||||||
15 | (35 ILCS 105/5) (from Ch. 120, par. 439.5)
| ||||||
16 | Sec. 5.
Except as to motor vehicles and other items of | ||||||
17 | tangible personal
property that must be titled or registered | ||||||
18 | under an Illinois
law, but that cannot be so titled or | ||||||
19 | registered without a use
tax receipt or exemption determination | ||||||
20 | from the Department, every retailer
maintaining a place of | ||||||
21 | business in this State and making sales of tangible
personal | ||||||
22 | property or taxable service for use in this State (whether | ||||||
23 | those sales
are made within or without this State) shall, when | ||||||
24 | collecting the tax as
provided in Section 3-45 of this Act from |
| |||||||
| |||||||
1 | the purchaser, give to
the purchaser (if demanded by the | ||||||
2 | purchaser) a receipt for the tax in
the manner and form | ||||||
3 | prescribed by the Department. The receipt shall
be sufficient | ||||||
4 | to relieve the purchaser from further
liability for the tax to | ||||||
5 | which the receipt may refer. Each retailer
shall list with the | ||||||
6 | Department the names and addresses of
all of his or her agents | ||||||
7 | operating in this State and the location
of any and all of his | ||||||
8 | or her distribution or sales houses, offices,
or other places | ||||||
9 | of business in this State.
| ||||||
10 | (Source: P.A. 86-1475.)
| ||||||
11 | (35 ILCS 105/7) (from Ch. 120, par. 439.7)
| ||||||
12 | Sec. 7.
| ||||||
13 | It is unlawful for any retailer to advertise or hold out or | ||||||
14 | state to the
public or to any purchaser, consumer or user, | ||||||
15 | directly or indirectly, that
the tax or any part thereof | ||||||
16 | imposed by Section 3 hereof will be assumed or
absorbed by the | ||||||
17 | retailer or that it will not be added to the selling price
of | ||||||
18 | the property or taxable service sold, or if added that it or | ||||||
19 | any part thereof will be
refunded other than when the retailer | ||||||
20 | refunds the selling price and tax
because of the merchandise's | ||||||
21 | being returned to the retailer (or the taxable service | ||||||
22 | transaction's being partially or wholly cancelled) or other | ||||||
23 | than
when the retailer credits or refunds the tax to the | ||||||
24 | purchaser to support a
claim filed with the Department under | ||||||
25 | the Retailers' Occupation Tax Act or
under this Act. Any person |
| |||||||
| |||||||
1 | violating any of the provisions of this Section
within this | ||||||
2 | State shall be guilty of a Class A misdemeanor.
| ||||||
3 | (Source: P.A. 77-2830.)
| ||||||
4 | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||||||
5 | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||||||
6 | and
trailers that are required to be registered with an agency | ||||||
7 | of this State,
each retailer
required or authorized to collect | ||||||
8 | the tax imposed by this Act shall pay
to the Department the | ||||||
9 | amount of such tax (except as otherwise provided)
at the time | ||||||
10 | when he is required to file his return for the period during
| ||||||
11 | which such tax was collected, less a discount of 2.1% prior to
| ||||||
12 | January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | ||||||
13 | per calendar
year, whichever is greater, which is allowed to | ||||||
14 | reimburse the retailer
for expenses incurred in collecting the | ||||||
15 | tax, keeping records, preparing
and filing returns, remitting | ||||||
16 | the tax and supplying data to the
Department on request. In the | ||||||
17 | case of retailers who report and pay the
tax on a transaction | ||||||
18 | by transaction basis, as provided in this Section,
such | ||||||
19 | discount shall be taken with each such tax remittance instead | ||||||
20 | of
when such retailer files his periodic return. The Department | ||||||
21 | may disallow the discount for retailers whose certificate of | ||||||
22 | registration is revoked at the time the return is filed, but | ||||||
23 | only if the Department's decision to revoke the certificate of | ||||||
24 | registration has become final. A retailer need not remit
that | ||||||
25 | part of any tax collected by him to the extent that he is |
| |||||||
| |||||||
1 | required
to remit and does remit the tax imposed by the | ||||||
2 | Retailers' Occupation
Tax Act, with respect to the sale of the | ||||||
3 | same property. | ||||||
4 | Where such tangible personal property or taxable service is | ||||||
5 | sold under a conditional
sales contract, or under any other | ||||||
6 | form of sale wherein the payment of
the principal sum, or a | ||||||
7 | part thereof, is extended beyond the close of
the period for | ||||||
8 | which the return is filed, the retailer, in collecting
the tax | ||||||
9 | (except as to motor vehicles, watercraft, aircraft, and
| ||||||
10 | trailers that are required to be registered with an agency of | ||||||
11 | this State),
may collect for each
tax return period, only the | ||||||
12 | tax applicable to that part of the selling
price actually | ||||||
13 | received during such tax return period. | ||||||
14 | Except as provided in this Section, on or before the | ||||||
15 | twentieth day of each
calendar month, such retailer shall file | ||||||
16 | a return for the preceding
calendar month. Such return shall be | ||||||
17 | filed on forms prescribed by the
Department and shall furnish | ||||||
18 | such information as the Department may
reasonably require. | ||||||
19 | The Department may require returns to be filed on a | ||||||
20 | quarterly basis.
If so required, a return for each calendar | ||||||
21 | quarter shall be filed on or
before the twentieth day of the | ||||||
22 | calendar month following the end of such
calendar quarter. The | ||||||
23 | taxpayer shall also file a return with the
Department for each | ||||||
24 | of the first two months of each calendar quarter, on or
before | ||||||
25 | the twentieth day of the following calendar month, stating: | ||||||
26 | 1. The name of the seller; |
| |||||||
| |||||||
1 | 2. The address of the principal place of business from | ||||||
2 | which he engages
in the business of selling tangible | ||||||
3 | personal property at retail in this State; | ||||||
4 | 3. The total amount of taxable receipts received by him | ||||||
5 | during the
preceding calendar month from sales of tangible | ||||||
6 | personal property by him
during such preceding calendar | ||||||
7 | month, including receipts from charge and
time sales, but | ||||||
8 | less all deductions allowed by law; | ||||||
9 | 4. The amount of credit provided in Section 2d of this | ||||||
10 | Act; | ||||||
11 | 5. The amount of tax due; | ||||||
12 | 5-5. The signature of the taxpayer; and | ||||||
13 | 6. Such other reasonable information as the Department | ||||||
14 | may
require. | ||||||
15 | If a taxpayer fails to sign a return within 30 days after | ||||||
16 | the proper notice
and demand for signature by the Department, | ||||||
17 | the return shall be considered
valid and any amount shown to be | ||||||
18 | due on the return shall be deemed assessed. | ||||||
19 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
20 | monthly tax
liability of $150,000 or more shall make all | ||||||
21 | payments required by rules of the
Department by electronic | ||||||
22 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
23 | an average monthly tax liability of $100,000 or more shall make | ||||||
24 | all
payments required by rules of the Department by electronic | ||||||
25 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
26 | an average monthly tax liability
of $50,000 or more shall make |
| |||||||
| |||||||
1 | all payments required by rules of the Department
by electronic | ||||||
2 | funds transfer. Beginning October 1, 2000, a taxpayer who has
| ||||||
3 | an annual tax liability of $200,000 or more shall make all | ||||||
4 | payments required by
rules of the Department by electronic | ||||||
5 | funds transfer. The term "annual tax
liability" shall be the | ||||||
6 | sum of the taxpayer's liabilities under this Act, and
under all | ||||||
7 | other State and local occupation and use tax laws administered | ||||||
8 | by the
Department, for the immediately preceding calendar year. | ||||||
9 | The term "average
monthly tax liability" means
the sum of the | ||||||
10 | taxpayer's liabilities under this Act, and under all other | ||||||
11 | State
and local occupation and use tax laws administered by the | ||||||
12 | Department, for the
immediately preceding calendar year | ||||||
13 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
14 | a tax liability in the
amount set forth in subsection (b) of | ||||||
15 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
16 | all payments required by rules of the Department by
electronic | ||||||
17 | funds transfer. | ||||||
18 | Before August 1 of each year beginning in 1993, the | ||||||
19 | Department shall notify
all taxpayers required to make payments | ||||||
20 | by electronic funds transfer. All
taxpayers required to make | ||||||
21 | payments by electronic funds transfer shall make
those payments | ||||||
22 | for a minimum of one year beginning on October 1. | ||||||
23 | Any taxpayer not required to make payments by electronic | ||||||
24 | funds transfer may
make payments by electronic funds transfer | ||||||
25 | with the permission of the
Department. | ||||||
26 | All taxpayers required to make payment by electronic funds |
| |||||||
| |||||||
1 | transfer and any
taxpayers authorized to voluntarily make | ||||||
2 | payments by electronic funds transfer
shall make those payments | ||||||
3 | in the manner authorized by the Department. | ||||||
4 | The Department shall adopt such rules as are necessary to | ||||||
5 | effectuate a
program of electronic funds transfer and the | ||||||
6 | requirements of this Section. | ||||||
7 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
8 | tax liability
to the Department
under this Act, the Retailers' | ||||||
9 | Occupation Tax Act, the Service
Occupation Tax Act, the Service | ||||||
10 | Use Tax Act was $10,000 or more
during
the preceding 4 complete | ||||||
11 | calendar quarters, he shall file a return with the
Department | ||||||
12 | each month by the 20th day of the month next following the | ||||||
13 | month
during which such tax liability is incurred and shall | ||||||
14 | make payments to the
Department on or before the 7th, 15th, | ||||||
15 | 22nd and last day of the month
during which such liability is | ||||||
16 | incurred.
On and after October 1, 2000, if the taxpayer's | ||||||
17 | average monthly tax liability
to the Department under this Act, | ||||||
18 | the Retailers' Occupation Tax Act,
the
Service Occupation Tax | ||||||
19 | Act, and the Service Use Tax Act was $20,000 or more
during the | ||||||
20 | preceding 4 complete calendar quarters, he shall file a return | ||||||
21 | with
the Department each month by the 20th day of the month | ||||||
22 | next following the month
during which such tax liability is | ||||||
23 | incurred and shall make payment to the
Department on or before | ||||||
24 | the 7th, 15th, 22nd and last day of the
month during
which such | ||||||
25 | liability is incurred.
If the month during which such tax
| ||||||
26 | liability is incurred began prior to January 1, 1985, each |
| |||||||
| |||||||
1 | payment shall be
in an amount equal to 1/4 of the taxpayer's
| ||||||
2 | actual liability for the month or an amount set by the | ||||||
3 | Department not to
exceed 1/4 of the average monthly liability | ||||||
4 | of the taxpayer to the
Department for the preceding 4 complete | ||||||
5 | calendar quarters (excluding the
month of highest liability and | ||||||
6 | the month of lowest liability in such 4
quarter period). If the | ||||||
7 | month during which such tax liability is incurred
begins on or | ||||||
8 | after January 1, 1985, and prior to January 1, 1987, each
| ||||||
9 | payment shall be in an amount equal to 22.5% of the taxpayer's | ||||||
10 | actual liability
for the month or 27.5% of the taxpayer's | ||||||
11 | liability for the same calendar
month of the preceding year. If | ||||||
12 | the month during which such tax liability
is incurred begins on | ||||||
13 | or after January 1, 1987, and prior to January 1,
1988, each | ||||||
14 | payment shall be in an amount equal to 22.5% of the taxpayer's
| ||||||
15 | actual liability for the month or 26.25% of the taxpayer's | ||||||
16 | liability for
the same calendar month of the preceding year. If | ||||||
17 | the month during which such
tax liability is incurred begins on | ||||||
18 | or after January 1, 1988, and prior to
January 1, 1989,
or | ||||||
19 | begins on or after January 1, 1996, each payment shall be in an | ||||||
20 | amount equal
to 22.5% of the taxpayer's actual liability for | ||||||
21 | the month or 25% of the
taxpayer's liability for the same | ||||||
22 | calendar month of the preceding year. If the
month during which | ||||||
23 | such tax liability is incurred begins on or after January 1,
| ||||||
24 | 1989,
and prior to January 1, 1996, each payment shall be in an | ||||||
25 | amount equal to 22.5%
of the taxpayer's actual liability for | ||||||
26 | the month or 25% of the taxpayer's
liability for the same |
| |||||||
| |||||||
1 | calendar month of the preceding year or 100% of the
taxpayer's | ||||||
2 | actual liability for the quarter monthly reporting period. The
| ||||||
3 | amount of such quarter monthly payments shall be credited | ||||||
4 | against the final tax
liability
of the taxpayer's return for | ||||||
5 | that month. Before October 1, 2000, once
applicable, the | ||||||
6 | requirement
of the making of quarter monthly payments to the | ||||||
7 | Department shall continue
until such taxpayer's average | ||||||
8 | monthly liability to the Department during
the preceding 4 | ||||||
9 | complete calendar quarters (excluding the month of highest
| ||||||
10 | liability and the month of lowest liability) is less than
| ||||||
11 | $9,000, or until
such taxpayer's average monthly liability to | ||||||
12 | the Department as computed for
each calendar quarter of the 4 | ||||||
13 | preceding complete calendar quarter period
is less than | ||||||
14 | $10,000. However, if a taxpayer can show the
Department that
a | ||||||
15 | substantial change in the taxpayer's business has occurred | ||||||
16 | which causes
the taxpayer to anticipate that his average | ||||||
17 | monthly tax liability for the
reasonably foreseeable future | ||||||
18 | will fall below the $10,000 threshold
stated above, then
such | ||||||
19 | taxpayer
may petition the Department for change in such | ||||||
20 | taxpayer's reporting status.
On and after October 1, 2000, once | ||||||
21 | applicable, the requirement of the making
of quarter monthly | ||||||
22 | payments to the Department shall continue until such
taxpayer's | ||||||
23 | average monthly liability to the Department during the | ||||||
24 | preceding 4
complete calendar quarters (excluding the month of | ||||||
25 | highest liability and the
month of lowest liability) is less | ||||||
26 | than $19,000 or until such taxpayer's
average monthly liability |
| |||||||
| |||||||
1 | to the Department as computed for each calendar
quarter of the | ||||||
2 | 4 preceding complete calendar quarter period is less than
| ||||||
3 | $20,000. However, if a taxpayer can show the Department that a | ||||||
4 | substantial
change in the taxpayer's business has occurred | ||||||
5 | which causes the taxpayer to
anticipate that his average | ||||||
6 | monthly tax liability for the reasonably
foreseeable future | ||||||
7 | will fall below the $20,000 threshold stated above, then
such | ||||||
8 | taxpayer may petition the Department for a change in such | ||||||
9 | taxpayer's
reporting status.
The Department shall change such | ||||||
10 | taxpayer's reporting status unless it
finds that such change is | ||||||
11 | seasonal in nature and not likely to be long
term. If any such | ||||||
12 | quarter monthly payment is not paid at the time or in
the | ||||||
13 | amount required by this Section, then the taxpayer shall be | ||||||
14 | liable for
penalties and interest on
the difference between the | ||||||
15 | minimum amount due and the amount of such
quarter monthly | ||||||
16 | payment actually and timely paid, except insofar as the
| ||||||
17 | taxpayer has previously made payments for that month to the | ||||||
18 | Department in
excess of the minimum payments previously due as | ||||||
19 | provided in this Section.
The Department shall make reasonable | ||||||
20 | rules and regulations to govern the
quarter monthly payment | ||||||
21 | amount and quarter monthly payment dates for
taxpayers who file | ||||||
22 | on other than a calendar monthly basis. | ||||||
23 | If any such payment provided for in this Section exceeds | ||||||
24 | the taxpayer's
liabilities under this Act, the Retailers' | ||||||
25 | Occupation Tax Act, the Service
Occupation Tax Act and the | ||||||
26 | Service Use Tax Act, as shown by an original
monthly return, |
| |||||||
| |||||||
1 | the Department shall issue to the taxpayer a credit
memorandum | ||||||
2 | no later than 30 days after the date of payment, which
| ||||||
3 | memorandum may be submitted by the taxpayer to the Department | ||||||
4 | in payment of
tax liability subsequently to be remitted by the | ||||||
5 | taxpayer to the Department
or be assigned by the taxpayer to a | ||||||
6 | similar taxpayer under this Act, the
Retailers' Occupation Tax | ||||||
7 | Act, the Service Occupation Tax Act or the
Service Use Tax Act, | ||||||
8 | in accordance with reasonable rules and regulations to
be | ||||||
9 | prescribed by the Department, except that if such excess | ||||||
10 | payment is
shown on an original monthly return and is made | ||||||
11 | after December 31, 1986, no
credit memorandum shall be issued, | ||||||
12 | unless requested by the taxpayer. If no
such request is made, | ||||||
13 | the taxpayer may credit such excess payment against
tax | ||||||
14 | liability subsequently to be remitted by the taxpayer to the | ||||||
15 | Department
under this Act, the Retailers' Occupation Tax Act, | ||||||
16 | the Service Occupation
Tax Act or the Service Use Tax Act, in | ||||||
17 | accordance with reasonable rules and
regulations prescribed by | ||||||
18 | the Department. If the Department subsequently
determines that | ||||||
19 | all or any part of the credit taken was not actually due to
the | ||||||
20 | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||||||
21 | be
reduced by 2.1% or 1.75% of the difference between the | ||||||
22 | credit taken and
that actually due, and the taxpayer shall be | ||||||
23 | liable for penalties and
interest on such difference. | ||||||
24 | If the retailer is otherwise required to file a monthly | ||||||
25 | return and if the
retailer's average monthly tax liability to | ||||||
26 | the Department
does not exceed $200, the Department may |
| |||||||
| |||||||
1 | authorize his returns to be
filed on a quarter annual basis, | ||||||
2 | with the return for January, February,
and March of a given | ||||||
3 | year being due by April 20 of such year; with the
return for | ||||||
4 | April, May and June of a given year being due by July 20 of
such | ||||||
5 | year; with the return for July, August and September of a given
| ||||||
6 | year being due by October 20 of such year, and with the return | ||||||
7 | for
October, November and December of a given year being due by | ||||||
8 | January 20
of the following year. | ||||||
9 | If the retailer is otherwise required to file a monthly or | ||||||
10 | quarterly
return and if the retailer's average monthly tax | ||||||
11 | liability to the
Department does not exceed $50, the Department | ||||||
12 | may authorize his returns to
be filed on an annual basis, with | ||||||
13 | the return for a given year being due by
January 20 of the | ||||||
14 | following year. | ||||||
15 | Such quarter annual and annual returns, as to form and | ||||||
16 | substance,
shall be subject to the same requirements as monthly | ||||||
17 | returns. | ||||||
18 | Notwithstanding any other provision in this Act concerning | ||||||
19 | the time
within which a retailer may file his return, in the | ||||||
20 | case of any retailer
who ceases to engage in a kind of business | ||||||
21 | which makes him responsible
for filing returns under this Act, | ||||||
22 | such retailer shall file a final
return under this Act with the | ||||||
23 | Department not more than one month after
discontinuing such | ||||||
24 | business. | ||||||
25 | In addition, with respect to motor vehicles, watercraft,
| ||||||
26 | aircraft, and trailers that are required to be registered with |
| |||||||
| |||||||
1 | an agency of
this State, every
retailer selling this kind of | ||||||
2 | tangible personal property shall file,
with the Department, | ||||||
3 | upon a form to be prescribed and supplied by the
Department, a | ||||||
4 | separate return for each such item of tangible personal
| ||||||
5 | property which the retailer sells, except that if, in the same
| ||||||
6 | transaction, (i) a retailer of aircraft, watercraft, motor | ||||||
7 | vehicles or
trailers transfers more than
one aircraft, | ||||||
8 | watercraft, motor
vehicle or trailer to another aircraft, | ||||||
9 | watercraft, motor vehicle or
trailer retailer for the purpose | ||||||
10 | of resale
or (ii) a retailer of aircraft, watercraft, motor | ||||||
11 | vehicles, or trailers
transfers more than one aircraft, | ||||||
12 | watercraft, motor vehicle, or trailer to a
purchaser for use as | ||||||
13 | a qualifying rolling stock as provided in Section 3-55 of
this | ||||||
14 | Act, then
that seller may report the transfer of all the
| ||||||
15 | aircraft, watercraft, motor
vehicles
or trailers involved in | ||||||
16 | that transaction to the Department on the same
uniform
| ||||||
17 | invoice-transaction reporting return form.
For purposes of | ||||||
18 | this Section, "watercraft" means a Class 2, Class 3, or
Class
4 | ||||||
19 | watercraft as defined in Section 3-2 of the Boat Registration | ||||||
20 | and Safety Act,
a
personal watercraft, or any boat equipped | ||||||
21 | with an inboard motor. | ||||||
22 | The transaction reporting return in the case of motor | ||||||
23 | vehicles
or trailers that are required to be registered with an | ||||||
24 | agency of this
State, shall
be the same document as the Uniform | ||||||
25 | Invoice referred to in Section 5-402
of the Illinois Vehicle | ||||||
26 | Code and must show the name and address of the
seller; the name |
| |||||||
| |||||||
1 | and address of the purchaser; the amount of the selling
price | ||||||
2 | including the amount allowed by the retailer for traded-in
| ||||||
3 | property, if any; the amount allowed by the retailer for the | ||||||
4 | traded-in
tangible personal property, if any, to the extent to | ||||||
5 | which Section 2 of
this Act allows an exemption for the value | ||||||
6 | of traded-in property; the
balance payable after deducting such | ||||||
7 | trade-in allowance from the total
selling price; the amount of | ||||||
8 | tax due from the retailer with respect to
such transaction; the | ||||||
9 | amount of tax collected from the purchaser by the
retailer on | ||||||
10 | such transaction (or satisfactory evidence that such tax is
not | ||||||
11 | due in that particular instance, if that is claimed to be the | ||||||
12 | fact);
the place and date of the sale; a sufficient | ||||||
13 | identification of the
property sold; such other information as | ||||||
14 | is required in Section 5-402 of
the Illinois Vehicle Code, and | ||||||
15 | such other information as the Department
may reasonably | ||||||
16 | require. | ||||||
17 | The transaction reporting return in the case of watercraft
| ||||||
18 | and aircraft must show
the name and address of the seller; the | ||||||
19 | name and address of the
purchaser; the amount of the selling | ||||||
20 | price including the amount allowed
by the retailer for | ||||||
21 | traded-in property, if any; the amount allowed by
the retailer | ||||||
22 | for the traded-in tangible personal property, if any, to
the | ||||||
23 | extent to which Section 2 of this Act allows an exemption for | ||||||
24 | the
value of traded-in property; the balance payable after | ||||||
25 | deducting such
trade-in allowance from the total selling price; | ||||||
26 | the amount of tax due
from the retailer with respect to such |
| |||||||
| |||||||
1 | transaction; the amount of tax
collected from the purchaser by | ||||||
2 | the retailer on such transaction (or
satisfactory evidence that | ||||||
3 | such tax is not due in that particular
instance, if that is | ||||||
4 | claimed to be the fact); the place and date of the
sale, a | ||||||
5 | sufficient identification of the property sold, and such other
| ||||||
6 | information as the Department may reasonably require. | ||||||
7 | Such transaction reporting return shall be filed not later | ||||||
8 | than 20
days after the date of delivery of the item that is | ||||||
9 | being sold, but may
be filed by the retailer at any time sooner | ||||||
10 | than that if he chooses to
do so. The transaction reporting | ||||||
11 | return and tax remittance or proof of
exemption from the tax | ||||||
12 | that is imposed by this Act may be transmitted to
the | ||||||
13 | Department by way of the State agency with which, or State | ||||||
14 | officer
with whom, the tangible personal property must be | ||||||
15 | titled or registered
(if titling or registration is required) | ||||||
16 | if the Department and such
agency or State officer determine | ||||||
17 | that this procedure will expedite the
processing of | ||||||
18 | applications for title or registration. | ||||||
19 | With each such transaction reporting return, the retailer | ||||||
20 | shall remit
the proper amount of tax due (or shall submit | ||||||
21 | satisfactory evidence that
the sale is not taxable if that is | ||||||
22 | the case), to the Department or its
agents, whereupon the | ||||||
23 | Department shall issue, in the purchaser's name, a
tax receipt | ||||||
24 | (or a certificate of exemption if the Department is
satisfied | ||||||
25 | that the particular sale is tax exempt) which such purchaser
| ||||||
26 | may submit to the agency with which, or State officer with |
| |||||||
| |||||||
1 | whom, he must
title or register the tangible personal property | ||||||
2 | that is involved (if
titling or registration is required) in | ||||||
3 | support of such purchaser's
application for an Illinois | ||||||
4 | certificate or other evidence of title or
registration to such | ||||||
5 | tangible personal property. | ||||||
6 | No retailer's failure or refusal to remit tax under this | ||||||
7 | Act
precludes a user, who has paid the proper tax to the | ||||||
8 | retailer, from
obtaining his certificate of title or other | ||||||
9 | evidence of title or
registration (if titling or registration | ||||||
10 | is required) upon satisfying
the Department that such user has | ||||||
11 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
12 | Department shall adopt appropriate rules to carry out
the | ||||||
13 | mandate of this paragraph. | ||||||
14 | If the user who would otherwise pay tax to the retailer | ||||||
15 | wants the
transaction reporting return filed and the payment of | ||||||
16 | tax or proof of
exemption made to the Department before the | ||||||
17 | retailer is willing to take
these actions and such user has not | ||||||
18 | paid the tax to the retailer, such
user may certify to the fact | ||||||
19 | of such delay by the retailer, and may
(upon the Department | ||||||
20 | being satisfied of the truth of such certification)
transmit | ||||||
21 | the information required by the transaction reporting return
| ||||||
22 | and the remittance for tax or proof of exemption directly to | ||||||
23 | the
Department and obtain his tax receipt or exemption | ||||||
24 | determination, in
which event the transaction reporting return | ||||||
25 | and tax remittance (if a
tax payment was required) shall be | ||||||
26 | credited by the Department to the
proper retailer's account |
| |||||||
| |||||||
1 | with the Department, but without the 2.1% or 1.75%
discount | ||||||
2 | provided for in this Section being allowed. When the user pays
| ||||||
3 | the tax directly to the Department, he shall pay the tax in the | ||||||
4 | same
amount and in the same form in which it would be remitted | ||||||
5 | if the tax had
been remitted to the Department by the retailer. | ||||||
6 | Where a retailer collects the tax with respect to the | ||||||
7 | selling price
of tangible personal property or taxable service | ||||||
8 | which he sells and the purchaser
thereafter returns such | ||||||
9 | tangible personal property or cancels the providing of taxable | ||||||
10 | service and the retailer
refunds the selling price thereof to | ||||||
11 | the purchaser, such retailer shall
also refund, to the | ||||||
12 | purchaser, the tax so collected from the purchaser.
When filing | ||||||
13 | his return for the period in which he refunds such tax to
the | ||||||
14 | purchaser, the retailer may deduct the amount of the tax so | ||||||
15 | refunded
by him to the purchaser from any other use tax which | ||||||
16 | such retailer may
be required to pay or remit to the | ||||||
17 | Department, as shown by such return,
if the amount of the tax | ||||||
18 | to be deducted was previously remitted to the
Department by | ||||||
19 | such retailer. If the retailer has not previously
remitted the | ||||||
20 | amount of such tax to the Department, he is entitled to no
| ||||||
21 | deduction under this Act upon refunding such tax to the | ||||||
22 | purchaser. | ||||||
23 | Any retailer filing a return under this Section shall also | ||||||
24 | include
(for the purpose of paying tax thereon) the total tax | ||||||
25 | covered by such
return upon the selling price of tangible | ||||||
26 | personal property or taxable service purchased by
him at retail |
| |||||||
| |||||||
1 | from a retailer, but as to which the tax imposed by this
Act | ||||||
2 | was not collected from the retailer filing such return, and | ||||||
3 | such
retailer shall remit the amount of such tax to the | ||||||
4 | Department when
filing such return. | ||||||
5 | If experience indicates such action to be practicable, the | ||||||
6 | Department
may prescribe and furnish a combination or joint | ||||||
7 | return which will
enable retailers, who are required to file | ||||||
8 | returns hereunder and also
under the Retailers' Occupation Tax | ||||||
9 | Act, to furnish all the return
information required by both | ||||||
10 | Acts on the one form. | ||||||
11 | Where the retailer has more than one business registered | ||||||
12 | with the
Department under separate registration under this Act, | ||||||
13 | such retailer may
not file each return that is due as a single | ||||||
14 | return covering all such
registered businesses, but shall file | ||||||
15 | separate returns for each such
registered business. | ||||||
16 | Beginning January 1, 1990, each month the Department shall | ||||||
17 | pay into the
State and Local Sales Tax Reform Fund, a special | ||||||
18 | fund in the State Treasury
which is hereby created, the net | ||||||
19 | revenue realized for the preceding month
from the 1% tax on | ||||||
20 | sales of food for human consumption which is to be
consumed off | ||||||
21 | the premises where it is sold (other than alcoholic beverages,
| ||||||
22 | soft drinks and food which has been prepared for immediate | ||||||
23 | consumption) and
prescription and nonprescription medicines, | ||||||
24 | drugs, medical appliances, products classified as Class III | ||||||
25 | medical devices by the United States Food and Drug | ||||||
26 | Administration that are used for cancer treatment pursuant to a |
| |||||||
| |||||||
1 | prescription, as well as any accessories and components related | ||||||
2 | to those devices, and
insulin, urine testing materials, | ||||||
3 | syringes and needles used by diabetics. | ||||||
4 | Beginning January 1, 1990, each month the Department shall | ||||||
5 | pay into
the County and Mass Transit District Fund 4% of the | ||||||
6 | net revenue realized
for the preceding month from the 6.25% | ||||||
7 | general rate
on the selling price of tangible personal property | ||||||
8 | which is purchased
outside Illinois at retail from a retailer | ||||||
9 | and which is titled or
registered by an agency of this State's | ||||||
10 | government. | ||||||
11 | Beginning January 1, 1990, each month the Department shall | ||||||
12 | pay into
the State and Local Sales Tax Reform Fund, a special | ||||||
13 | fund in the State
Treasury, 20% of the net revenue realized
for | ||||||
14 | the preceding month from the 6.25% general rate on the selling
| ||||||
15 | price of tangible personal property, other than tangible | ||||||
16 | personal property
which is purchased outside Illinois at retail | ||||||
17 | from a retailer and which is
titled or registered by an agency | ||||||
18 | of this State's government. | ||||||
19 | From July 1, 2017 through June 30, 2018, no deposits shall | ||||||
20 | be made into the State and Local Sales Tax Reform Fund from the | ||||||
21 | net revenue realized from the 6.25% general rate on taxable | ||||||
22 | services. Beginning July 1, 2018 and through June 30, 2019, | ||||||
23 | each month the Department shall pay into the State and Local | ||||||
24 | Sales Tax Reform Fund 7% of the net revenue realized for the | ||||||
25 | preceding month from the 6.25% general rate on the selling | ||||||
26 | price of taxable services. Beginning July 1, 2019 and through |
| |||||||
| |||||||
1 | June 30, 2020, each month the Department shall pay into the | ||||||
2 | State and Local Sales Tax Reform Fund 13% of the net revenue | ||||||
3 | realized for the preceding month from the 6.25% general rate on | ||||||
4 | the selling price of taxable services. Beginning July 1, 2020, | ||||||
5 | each month the Department shall pay into the State and Local | ||||||
6 | Sales Tax Reform Fund 20% of the net revenue realized for the | ||||||
7 | preceding month from the 6.25% general rate on the selling | ||||||
8 | price of taxable services. | ||||||
9 | Beginning August 1, 2000, each
month the Department shall | ||||||
10 | pay into the
State and Local Sales Tax Reform Fund 100% of the | ||||||
11 | net revenue realized for the
preceding month from the 1.25% | ||||||
12 | rate on the selling price of motor fuel and
gasohol. Beginning | ||||||
13 | September 1, 2010, each
month the Department shall pay into the
| ||||||
14 | State and Local Sales Tax Reform Fund 100% of the net revenue | ||||||
15 | realized for the
preceding month from the 1.25% rate on the | ||||||
16 | selling price of sales tax holiday items. | ||||||
17 | Beginning January 1, 1990, each month the Department shall | ||||||
18 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
19 | realized for the
preceding month from the 6.25% general rate on | ||||||
20 | the selling price of
tangible personal property which is | ||||||
21 | purchased outside Illinois at retail
from a retailer and which | ||||||
22 | is titled or registered by an agency of this
State's | ||||||
23 | government. | ||||||
24 | Beginning October 1, 2009, each month the Department shall | ||||||
25 | pay into the Capital Projects Fund an amount that is equal to | ||||||
26 | an amount estimated by the Department to represent 80% of the |
| |||||||
| |||||||
1 | net revenue realized for the preceding month from the sale of | ||||||
2 | candy, grooming and hygiene products, and soft drinks that had | ||||||
3 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
4 | are now taxed at 6.25%. | ||||||
5 | Beginning July 1, 2011, each
month the Department shall pay | ||||||
6 | into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
7 | realized for the
preceding month from the 6.25% general rate on | ||||||
8 | the selling price of sorbents used in Illinois in the process | ||||||
9 | of sorbent injection as used to comply with the Environmental | ||||||
10 | Protection Act or the federal Clean Air Act, but the total | ||||||
11 | payment into the Clean Air Act Permit Fund under this Act and | ||||||
12 | the Retailers' Occupation Tax Act shall not exceed $2,000,000 | ||||||
13 | in any fiscal year. | ||||||
14 | Beginning July 1, 2013, each month the Department shall pay | ||||||
15 | into the Underground Storage Tank Fund from the proceeds | ||||||
16 | collected under this Act, the Service Use Tax Act, the Service | ||||||
17 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
18 | amount equal to the average monthly deficit in the Underground | ||||||
19 | Storage Tank Fund during the prior year, as certified annually | ||||||
20 | by the Illinois Environmental Protection Agency, but the total | ||||||
21 | payment into the Underground Storage Tank Fund under this Act, | ||||||
22 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
23 | the Retailers' Occupation Tax Act shall not exceed $18,000,000 | ||||||
24 | in any State fiscal year. As used in this paragraph, the | ||||||
25 | "average monthly deficit" shall be equal to the difference | ||||||
26 | between the average monthly claims for payment by the fund and |
| |||||||
| |||||||
1 | the average monthly revenues deposited into the fund, excluding | ||||||
2 | payments made pursuant to this paragraph. | ||||||
3 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
4 | received by the Department under this Act, the Service Use Tax | ||||||
5 | Act, the Service Occupation Tax Act, and the Retailers' | ||||||
6 | Occupation Tax Act, each month the Department shall deposit | ||||||
7 | $500,000 into the State Crime Laboratory Fund. | ||||||
8 | Of the remainder of the moneys received by the Department | ||||||
9 | pursuant to
this Act, (a) 1.75% thereof shall be paid
into the | ||||||
10 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and
on | ||||||
11 | and after July 1, 1989, 3.8% thereof shall be paid into the
| ||||||
12 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
13 | year the
sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
14 | may be, of the
moneys received by the Department and required | ||||||
15 | to be paid into the Build
Illinois Fund pursuant to Section 3 | ||||||
16 | of the Retailers' Occupation Tax Act,
Section 9 of the Use Tax | ||||||
17 | Act, Section 9 of the Service Use
Tax Act, and Section 9 of the | ||||||
18 | Service Occupation Tax Act, such Acts being
hereinafter called | ||||||
19 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as
the case | ||||||
20 | may be, of moneys being hereinafter called the "Tax Act | ||||||
21 | Amount",
and (2) the amount transferred to the Build Illinois | ||||||
22 | Fund from the State
and Local Sales Tax Reform Fund shall be | ||||||
23 | less than the Annual Specified
Amount (as defined in Section 3 | ||||||
24 | of the Retailers' Occupation Tax Act), an
amount equal to the | ||||||
25 | difference shall be immediately paid into the Build
Illinois | ||||||
26 | Fund from other moneys received by the Department pursuant to |
| |||||||
| |||||||
1 | the
Tax Acts; and further provided, that if on the last | ||||||
2 | business day of any
month the sum of (1) the Tax Act Amount | ||||||
3 | required to be deposited into the
Build Illinois Bond Account | ||||||
4 | in the Build Illinois Fund during such month
and (2) the amount | ||||||
5 | transferred during such month to the Build Illinois Fund
from | ||||||
6 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
7 | than
1/12 of the Annual Specified Amount, an amount equal to | ||||||
8 | the difference
shall be immediately paid into the Build | ||||||
9 | Illinois Fund from other moneys
received by the Department | ||||||
10 | pursuant to the Tax Acts; and,
further provided, that in no | ||||||
11 | event shall the payments required under the
preceding proviso | ||||||
12 | result in aggregate payments into the Build Illinois Fund
| ||||||
13 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
14 | the greater
of (i) the Tax Act Amount or (ii) the Annual | ||||||
15 | Specified Amount for such
fiscal year; and, further provided, | ||||||
16 | that the amounts payable into the Build
Illinois Fund under | ||||||
17 | this clause (b) shall be payable only until such time
as the | ||||||
18 | aggregate amount on deposit under each trust
indenture securing | ||||||
19 | Bonds issued and outstanding pursuant to the Build
Illinois | ||||||
20 | Bond Act is sufficient, taking into account any future | ||||||
21 | investment
income, to fully provide, in accordance with such | ||||||
22 | indenture, for the
defeasance of or the payment of the | ||||||
23 | principal of, premium, if any, and
interest on the Bonds | ||||||
24 | secured by such indenture and on any Bonds expected
to be | ||||||
25 | issued thereafter and all fees and costs payable with respect | ||||||
26 | thereto,
all as certified by the Director of the
Bureau of the |
| |||||||
| |||||||
1 | Budget (now Governor's Office of Management and Budget). If
on | ||||||
2 | the last
business day of any month in which Bonds are | ||||||
3 | outstanding pursuant to the
Build Illinois Bond Act, the | ||||||
4 | aggregate of the moneys deposited
in the Build Illinois Bond | ||||||
5 | Account in the Build Illinois Fund in such month
shall be less | ||||||
6 | than the amount required to be transferred in such month from
| ||||||
7 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
8 | Retirement and
Interest Fund pursuant to Section 13 of the | ||||||
9 | Build Illinois Bond Act, an
amount equal to such deficiency | ||||||
10 | shall be immediately paid
from other moneys received by the | ||||||
11 | Department pursuant to the Tax Acts
to the Build Illinois Fund; | ||||||
12 | provided, however, that any amounts paid to the
Build Illinois | ||||||
13 | Fund in any fiscal year pursuant to this sentence shall be
| ||||||
14 | deemed to constitute payments pursuant to clause (b) of the | ||||||
15 | preceding
sentence and shall reduce the amount otherwise | ||||||
16 | payable for such fiscal year
pursuant to clause (b) of the | ||||||
17 | preceding sentence. The moneys received by
the Department | ||||||
18 | pursuant to this Act and required to be deposited into the
| ||||||
19 | Build Illinois Fund are subject to the pledge, claim and charge | ||||||
20 | set forth
in Section 12 of the Build Illinois Bond Act. | ||||||
21 | Subject to payment of amounts into the Build Illinois Fund | ||||||
22 | as provided in
the preceding paragraph or in any amendment | ||||||
23 | thereto hereafter enacted, the
following specified monthly | ||||||
24 | installment of the amount requested in the
certificate of the | ||||||
25 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||
26 | provided under Section 8.25f of the State Finance Act, but not |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | in
excess of the sums designated as "Total Deposit", shall be
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | deposited in the aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | the Use Tax
Act, Section 9 of the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | 9 of the Service
Occupation Tax Act, and Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Retailers' Occupation Tax Act into
the McCormick Place | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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| |||||||||||||||||
| |||||||||||||||||
4 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||
5 | year thereafter,
one-eighth of the amount requested in the | ||||||||||||||||
6 | certificate of the Chairman of
the Metropolitan Pier and | ||||||||||||||||
7 | Exposition Authority for that fiscal year, less
the amount | ||||||||||||||||
8 | deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||
9 | the
State Treasurer in the respective month under subsection | ||||||||||||||||
10 | (g) of Section 13
of the Metropolitan Pier and Exposition | ||||||||||||||||
11 | Authority Act, plus cumulative
deficiencies in the deposits | ||||||||||||||||
12 | required under this Section for previous
months and years, | ||||||||||||||||
13 | shall be deposited into the McCormick Place Expansion
Project | ||||||||||||||||
14 | Fund, until the full amount requested for the fiscal year, but | ||||||||||||||||
15 | not
in excess of the amount specified above as "Total Deposit", | ||||||||||||||||
16 | has been deposited. | ||||||||||||||||
17 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||
18 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||||||||||||
19 | preceding paragraphs or
in any amendments thereto
hereafter | ||||||||||||||||
20 | enacted,
beginning July 1, 1993 and ending on September 30, | ||||||||||||||||
21 | 2013, the Department shall each month pay into the Illinois
Tax | ||||||||||||||||
22 | Increment Fund 0.27% of 80% of the net revenue realized for the | ||||||||||||||||
23 | preceding
month from the 6.25% general rate on the selling | ||||||||||||||||
24 | price of tangible personal
property. | ||||||||||||||||
25 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||
26 | and the
McCormick Place Expansion Project Fund pursuant to the |
| |||||||
| |||||||
1 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
2 | enacted, beginning with the receipt of the first
report of | ||||||
3 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
4 | period, the Department shall each month pay into the Energy | ||||||
5 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
6 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
7 | that was sold to an eligible business.
For purposes of this | ||||||
8 | paragraph, the term "eligible business" means a new
electric | ||||||
9 | generating facility certified pursuant to Section 605-332 of | ||||||
10 | the
Department of Commerce and
Economic Opportunity Law of the | ||||||
11 | Civil Administrative
Code of Illinois. | ||||||
12 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
13 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
14 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
15 | the preceding paragraphs or in any amendments to this Section | ||||||
16 | hereafter enacted, beginning on the first day of the first | ||||||
17 | calendar month to occur on or after August 26, 2014 ( the | ||||||
18 | effective date of Public Act 98-1098) this amendatory Act of | ||||||
19 | the 98th General Assembly , each month, from the collections | ||||||
20 | made under Section 9 of the Use Tax Act, Section 9 of the | ||||||
21 | Service Use Tax Act, Section 9 of the Service Occupation Tax | ||||||
22 | Act, and Section 3 of the Retailers' Occupation Tax Act, the | ||||||
23 | Department shall pay into the Tax Compliance and Administration | ||||||
24 | Fund, to be used, subject to appropriation, to fund additional | ||||||
25 | auditors and compliance personnel at the Department of Revenue, | ||||||
26 | an amount equal to 1/12 of 5% of 80% of the cash receipts |
| |||||||
| |||||||
1 | collected during the preceding fiscal year by the Audit Bureau | ||||||
2 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
3 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
4 | Tax Act, and associated local occupation and use taxes | ||||||
5 | administered by the Department. | ||||||
6 | Of the remainder of the moneys received by the Department | ||||||
7 | pursuant
to this Act, 75% thereof shall be paid into the State | ||||||
8 | Treasury and 25%
shall be reserved in a special account and | ||||||
9 | used only for the transfer to
the Common School Fund as part of | ||||||
10 | the monthly transfer from the General
Revenue Fund in | ||||||
11 | accordance with Section 8a of the State
Finance Act. | ||||||
12 | As soon as possible after the first day of each month, upon | ||||||
13 | certification
of the Department of Revenue, the Comptroller | ||||||
14 | shall order transferred and
the Treasurer shall transfer from | ||||||
15 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
16 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
17 | for the second preceding month.
Beginning April 1, 2000, this | ||||||
18 | transfer is no longer required
and shall not be made. | ||||||
19 | Net revenue realized for a month shall be the revenue | ||||||
20 | collected
by the State pursuant to this Act, less the amount | ||||||
21 | paid out during that
month as refunds to taxpayers for | ||||||
22 | overpayment of liability. | ||||||
23 | For greater simplicity of administration, manufacturers, | ||||||
24 | importers
and wholesalers whose products are sold at retail in | ||||||
25 | Illinois by
numerous retailers, and who wish to do so, may | ||||||
26 | assume the responsibility
for accounting and paying to the |
| |||||||
| |||||||
1 | Department all tax accruing under this
Act with respect to such | ||||||
2 | sales, if the retailers who are affected do not
make written | ||||||
3 | objection to the Department to this arrangement. | ||||||
4 | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | ||||||
5 | 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff. | ||||||
6 | 8-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933, | ||||||
7 | eff. 1-27-17; revised 2-3-17.)
| ||||||
8 | (35 ILCS 105/10) (from Ch. 120, par. 439.10) | ||||||
9 | Sec. 10. Except as to motor vehicles, aircraft, watercraft, | ||||||
10 | and
trailers, and except as to cigarettes as defined in the | ||||||
11 | Cigarette Use Tax Act, when tangible personal
property or | ||||||
12 | (beginning January 1, 2018 a taxable service) is
purchased from | ||||||
13 | a retailer for use in this State by a purchaser
who did not pay | ||||||
14 | the tax imposed by this Act to the retailer, and who does not
| ||||||
15 | file returns with the Department as a retailer under Section 9 | ||||||
16 | of this
Act, such purchaser (by the last day of the month | ||||||
17 | following the calendar
month in which such purchaser makes any | ||||||
18 | payment upon the selling price of
such property) shall, except | ||||||
19 | as otherwise provided in this Section, file
a return with the | ||||||
20 | Department and pay the tax upon that portion of the
selling | ||||||
21 | price so paid by the purchaser during the preceding calendar | ||||||
22 | month.
When tangible personal property, including but not | ||||||
23 | limited to motor vehicles
and aircraft, is purchased by a | ||||||
24 | lessor, under a lease for
one year or longer, executed or in | ||||||
25 | effect at the time of purchase to an
interstate carrier for |
| |||||||
| |||||||
1 | hire, who did not pay the tax imposed by this Act to the
| ||||||
2 | retailer, such lessor (by the last day of the month following | ||||||
3 | the calendar
month in which such property reverts to the use of | ||||||
4 | such lessor) shall file
a return with the Department and pay | ||||||
5 | the tax upon the fair market value of
such property on the date | ||||||
6 | of such reversion.
However, in determining the fair market | ||||||
7 | value at the time of reversion, the
fair market value of such | ||||||
8 | property shall not exceed the original purchase price
of the | ||||||
9 | property that was paid by the lessor at the time of purchase.
| ||||||
10 | Such return shall be filed on
a form prescribed by the | ||||||
11 | Department and shall contain such information as
the Department | ||||||
12 | may reasonably require. Such return and payment from the
| ||||||
13 | purchaser shall be submitted to the Department sooner than the | ||||||
14 | last day of
the month after the month in which the purchase is | ||||||
15 | made to the extent that
that may be necessary in order to | ||||||
16 | secure the title to a motor vehicle or
the certificate of | ||||||
17 | registration for an aircraft. However, except as to motor
| ||||||
18 | vehicles and aircraft, and except as to cigarettes as defined | ||||||
19 | in the Cigarette Use Tax Act, if the
purchaser's annual use tax | ||||||
20 | liability does not exceed $600, the purchaser
may file the | ||||||
21 | return on an annual basis on or before April 15th of the year
| ||||||
22 | following the year use tax liability was incurred. Individual | ||||||
23 | purchasers with an annual use tax liability that does not | ||||||
24 | exceed $600 may, in lieu of the filing and payment requirements | ||||||
25 | in this Section, file and pay in compliance with Section 502.1 | ||||||
26 | of the Illinois Income Tax Act. |
| |||||||
| |||||||
1 | If cigarettes, as defined in the Cigarette Use Tax Act, are | ||||||
2 | purchased from a retailer for use in this State by a purchaser | ||||||
3 | who did not pay the tax imposed by this Act to the retailer, | ||||||
4 | and who does not file returns with the Department as a retailer | ||||||
5 | under Section 9 of this Act, such purchaser must, within 30 | ||||||
6 | days after acquiring the cigarettes, file a return with the | ||||||
7 | Department and pay the tax upon that portion of the selling | ||||||
8 | price so paid by the purchaser for the cigarettes. | ||||||
9 | In addition with respect to motor vehicles,
aircraft, | ||||||
10 | watercraft, and trailers, a purchaser of such tangible personal
| ||||||
11 | property for use in this
State, who purchases such tangible | ||||||
12 | personal property from an out-of-state
retailer, shall file | ||||||
13 | with the Department, upon a form to be prescribed and
supplied | ||||||
14 | by the Department, a return for each such item of tangible
| ||||||
15 | personal property purchased, except that if, in the same | ||||||
16 | transaction, (i) a
purchaser of motor vehicles,
aircraft, | ||||||
17 | watercraft, or trailers who is a retailer of motor vehicles,
| ||||||
18 | aircraft, watercraft, or trailers purchases more than one motor | ||||||
19 | vehicle,
aircraft, watercraft, or trailer for the purpose of | ||||||
20 | resale or (ii) a purchaser
of motor vehicles, aircraft, | ||||||
21 | watercraft, or trailers purchases more
than one motor vehicle, | ||||||
22 | aircraft, watercraft, or trailer for use as qualifying
rolling | ||||||
23 | stock as provided in Section 3-55 of this Act, then the | ||||||
24 | purchaser may
report the purchase of all motor vehicles, | ||||||
25 | aircraft, watercraft, or trailers
involved in that transaction | ||||||
26 | to the Department on a single return prescribed by
the |
| |||||||
| |||||||
1 | Department. Such return in the case of motor vehicles and
| ||||||
2 | aircraft must show the name and address of the seller, the | ||||||
3 | name, address of
purchaser, the amount of the selling price | ||||||
4 | including the amount allowed by
the retailer for traded in | ||||||
5 | property, if any; the amount allowed by the
retailer for the | ||||||
6 | traded-in tangible personal property, if any, to the
extent to | ||||||
7 | which Section 2 of this Act allows an exemption for the value | ||||||
8 | of
traded-in property; the balance payable after deducting such | ||||||
9 | trade-in
allowance from the total selling price; the amount of | ||||||
10 | tax due from the
purchaser with respect to such transaction; | ||||||
11 | the amount of tax collected
from the purchaser by the retailer | ||||||
12 | on such transaction (or satisfactory
evidence that such tax is | ||||||
13 | not due in that particular instance if that is
claimed to be | ||||||
14 | the fact); the place and date of the sale, a sufficient
| ||||||
15 | identification of the property sold, and such other information | ||||||
16 | as the
Department may reasonably require. | ||||||
17 | Such return shall be filed not later than 30 days after | ||||||
18 | such motor
vehicle or aircraft is brought into this State for | ||||||
19 | use. | ||||||
20 | For purposes of this Section, "watercraft" means a Class 2, | ||||||
21 | Class 3, or
Class 4 watercraft as defined in Section 3-2 of the | ||||||
22 | Boat Registration and
Safety Act, a personal watercraft, or any | ||||||
23 | boat equipped with an inboard
motor. | ||||||
24 | The return and tax remittance or proof of exemption from | ||||||
25 | the tax that is
imposed by this Act may be transmitted to the | ||||||
26 | Department by way of the
State agency with which, or State |
| |||||||
| |||||||
1 | officer with whom, the tangible personal
property must be | ||||||
2 | titled or registered (if titling or registration is
required) | ||||||
3 | if the Department and such agency or State officer determine | ||||||
4 | that
this procedure will expedite the processing of | ||||||
5 | applications for title or
registration. | ||||||
6 | With each such return, the purchaser shall remit the proper | ||||||
7 | amount of tax
due (or shall submit satisfactory evidence that | ||||||
8 | the sale is not taxable if
that is the case), to the Department | ||||||
9 | or its agents, whereupon the
Department shall issue, in the | ||||||
10 | purchaser's name, a tax receipt (or a
certificate of exemption | ||||||
11 | if the Department is satisfied that the particular
sale is tax | ||||||
12 | exempt) which such purchaser may submit to the agency with
| ||||||
13 | which, or State officer with whom, he must title or register | ||||||
14 | the tangible
personal property that is involved (if titling or | ||||||
15 | registration is required)
in support of such purchaser's | ||||||
16 | application for an Illinois certificate or
other evidence of | ||||||
17 | title or registration to such tangible personal property. | ||||||
18 | When a purchaser pays a tax imposed by this Act directly to | ||||||
19 | the Department,
the Department (upon request therefor from such | ||||||
20 | purchaser) shall issue an
appropriate receipt to such purchaser | ||||||
21 | showing that he has paid such tax to
the Department. Such | ||||||
22 | receipt shall be sufficient to relieve the purchaser
from | ||||||
23 | further liability for the tax to which such receipt may refer. | ||||||
24 | A user who is liable to pay use tax directly to the | ||||||
25 | Department only
occasionally and not on a frequently recurring | ||||||
26 | basis, and who is not
required to file returns with the |
| |||||||
| |||||||
1 | Department as a retailer under Section 9
of this Act, or under | ||||||
2 | the "Retailers' Occupation Tax Act", or as a
registrant with | ||||||
3 | the Department under the "Service Occupation Tax Act" or
the | ||||||
4 | "Service Use Tax Act", need not register with the Department.
| ||||||
5 | However, if such a user has a frequently recurring direct use | ||||||
6 | tax liability
to pay to the Department, such user shall be | ||||||
7 | required to register with the
Department on forms prescribed by | ||||||
8 | the Department and to obtain and display
a certificate of | ||||||
9 | registration from the Department. In that event, all of
the | ||||||
10 | provisions of Section 9 of this Act concerning the filing of | ||||||
11 | regular
monthly, quarterly or annual tax returns and all of the | ||||||
12 | provisions of
Section 2a of the "Retailers' Occupation Tax Act" | ||||||
13 | concerning the
requirements for registrants to post bond or | ||||||
14 | other security with the
Department, as the provisions of such | ||||||
15 | sections now exist or may hereafter
be amended, shall apply to | ||||||
16 | such users to the same extent as if such
provisions were | ||||||
17 | included herein. | ||||||
18 | (Source: P.A. 96-520, eff. 8-14-09; 96-1000, eff. 7-2-10; | ||||||
19 | 96-1388, eff. 7-29-10.)
| ||||||
20 | (35 ILCS 105/11) (from Ch. 120, par. 439.11)
| ||||||
21 | Sec. 11.
Every retailer required or authorized to collect | ||||||
22 | taxes hereunder
and every person using in this State tangible | ||||||
23 | personal property or taxable service purchased
at retail from a | ||||||
24 | retailer on or after the effective date hereof shall keep
such | ||||||
25 | records, receipts, invoices and other pertinent books, |
| |||||||
| |||||||
1 | documents,
memoranda and papers as the Department shall | ||||||
2 | require, in such form as the
Department shall require. The | ||||||
3 | Department may adopt rules that establish
requirements, | ||||||
4 | including record forms and formats, for records required to be
| ||||||
5 | kept and maintained by taxpayers. For purposes of this Section, | ||||||
6 | "records" means
all data maintained by the taxpayer, including | ||||||
7 | data on paper, microfilm,
microfiche or any type of | ||||||
8 | machine-sensible data compilation. For the purpose of
| ||||||
9 | administering and enforcing the provisions hereof, the | ||||||
10 | Department, or any
officer or employee of the Department | ||||||
11 | designated, in writing, by the Director
thereof, may hold | ||||||
12 | investigations and hearings concerning any matters covered
| ||||||
13 | herein and may examine any books, papers, records, documents or | ||||||
14 | memoranda of
any retailer or purchaser bearing upon the sales | ||||||
15 | or purchases of tangible
personal property, the privilege of | ||||||
16 | using which is taxed hereunder, and may
require the attendance | ||||||
17 | of such person or any officer or employee of such
person, or of | ||||||
18 | any person having knowledge of the facts, and may take | ||||||
19 | testimony
and require proof for its information.
| ||||||
20 | (Source: P.A. 88-480.)
| ||||||
21 | Section 30-25. The Service Use Tax Act is amended by | ||||||
22 | changing Sections 2 and 3-5 as follows:
| ||||||
23 | (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| ||||||
24 | Sec. 2. Definitions. |
| |||||||
| |||||||
1 | "Use" means the exercise by any person of any right or | ||||||
2 | power
over tangible personal property incident to the ownership | ||||||
3 | of that
property, but does not include the sale or use for | ||||||
4 | demonstration by him
of that property in any form as tangible | ||||||
5 | personal property in the
regular course of business.
"Use" does | ||||||
6 | not mean the interim
use of
tangible personal property nor the | ||||||
7 | physical incorporation of tangible
personal property, as an | ||||||
8 | ingredient or constituent, into other tangible
personal | ||||||
9 | property, (a) which is sold in the regular course of business
| ||||||
10 | or (b) which the person incorporating such ingredient or | ||||||
11 | constituent
therein has undertaken at the time of such purchase | ||||||
12 | to cause to be
transported in interstate commerce to | ||||||
13 | destinations outside the State of
Illinois.
| ||||||
14 | "Purchased from a serviceman" means the acquisition of the | ||||||
15 | ownership
of, or title to, tangible personal property through a | ||||||
16 | sale of service.
| ||||||
17 | "Purchaser" means any person who, through a sale of | ||||||
18 | service, acquires
the ownership of, or title to, any tangible | ||||||
19 | personal property.
| ||||||
20 | "Cost price" means the consideration paid by the serviceman | ||||||
21 | for a
purchase valued in money, whether paid in money or | ||||||
22 | otherwise, including
cash, credits and services, and shall be | ||||||
23 | determined without any
deduction on account of the supplier's | ||||||
24 | cost of the property sold or on
account of any other expense | ||||||
25 | incurred by the supplier. When a serviceman
contracts out part | ||||||
26 | or all of the services required in his sale of service,
it |
| |||||||
| |||||||
1 | shall be presumed that the cost price to the serviceman of the | ||||||
2 | property
transferred to him or her by his or her subcontractor | ||||||
3 | is equal to 50% of
the subcontractor's charges to the | ||||||
4 | serviceman in the absence of proof of
the consideration paid by | ||||||
5 | the subcontractor for the purchase of such property.
| ||||||
6 | "Selling price" means the consideration for a sale valued | ||||||
7 | in money
whether received in money or otherwise, including | ||||||
8 | cash, credits and
service, and shall be determined without any | ||||||
9 | deduction on account of the
serviceman's cost of the property | ||||||
10 | sold, the cost of materials used,
labor or service cost or any | ||||||
11 | other expense whatsoever, but does not
include interest or | ||||||
12 | finance charges which appear as separate items on
the bill of | ||||||
13 | sale or sales contract nor charges that are added to prices
by | ||||||
14 | sellers on account of the seller's duty to collect, from the
| ||||||
15 | purchaser, the tax that is imposed by this Act.
| ||||||
16 | "Department" means the Department of Revenue.
| ||||||
17 | "Person" means any natural individual, firm, partnership,
| ||||||
18 | association, joint stock company, joint venture, public or | ||||||
19 | private
corporation, limited liability company, and any | ||||||
20 | receiver, executor, trustee,
guardian or other representative | ||||||
21 | appointed by order of any court.
| ||||||
22 | "Sale of service" means any transaction except:
| ||||||
23 | (1) a retail sale of tangible personal property taxable | ||||||
24 | under the
Retailers' Occupation Tax Act or under the Use | ||||||
25 | Tax Act.
| ||||||
26 | (2) a sale of tangible personal property for the |
| |||||||
| |||||||
1 | purpose of resale
made in compliance with Section 2c of the | ||||||
2 | Retailers' Occupation Tax Act.
| ||||||
3 | (3) except as hereinafter provided, a sale or transfer | ||||||
4 | of tangible
personal property as an incident to the | ||||||
5 | rendering of service for or by
any governmental body, or | ||||||
6 | for or by any corporation, society,
association, | ||||||
7 | foundation or institution organized and operated
| ||||||
8 | exclusively for charitable, religious or educational | ||||||
9 | purposes or any
not-for-profit corporation, society, | ||||||
10 | association, foundation,
institution or organization which | ||||||
11 | has no compensated officers or
employees and which is | ||||||
12 | organized and operated primarily for the
recreation of | ||||||
13 | persons 55 years of age or older. A limited liability | ||||||
14 | company
may qualify for the exemption under this paragraph | ||||||
15 | only if the limited
liability company is organized and | ||||||
16 | operated exclusively for educational
purposes.
| ||||||
17 | (4) a sale or transfer of tangible personal
property as | ||||||
18 | an incident to the
rendering of service for interstate | ||||||
19 | carriers for hire for use as rolling stock
moving in | ||||||
20 | interstate commerce or by lessors under a lease of one year | ||||||
21 | or
longer, executed or in effect at the time of purchase of | ||||||
22 | personal property, to
interstate carriers for hire for use | ||||||
23 | as rolling stock moving in interstate
commerce so long as | ||||||
24 | so used by such interstate carriers for hire, and equipment
| ||||||
25 | operated by a telecommunications provider, licensed as a | ||||||
26 | common carrier by the
Federal Communications Commission, |
| |||||||
| |||||||
1 | which is permanently installed in or affixed
to aircraft | ||||||
2 | moving in interstate commerce.
| ||||||
3 | (4a) a sale or transfer of tangible personal
property | ||||||
4 | as an incident
to the rendering of service for owners, | ||||||
5 | lessors, or shippers of tangible
personal property which is | ||||||
6 | utilized by interstate carriers for hire for
use as rolling | ||||||
7 | stock moving in interstate commerce so long as so used by
| ||||||
8 | interstate carriers for hire, and equipment operated by a
| ||||||
9 | telecommunications provider, licensed as a common carrier | ||||||
10 | by the Federal
Communications Commission, which is | ||||||
11 | permanently installed in or affixed to
aircraft moving in | ||||||
12 | interstate commerce.
| ||||||
13 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
14 | 2004, a sale or transfer of a motor vehicle
of
the
second | ||||||
15 | division with a gross vehicle weight in excess of 8,000 | ||||||
16 | pounds as an
incident to the rendering of service if that | ||||||
17 | motor
vehicle is subject
to the commercial distribution fee | ||||||
18 | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | ||||||
19 | Beginning on July 1, 2004 and through June 30, 2005, the | ||||||
20 | use in this State of motor vehicles of the second division: | ||||||
21 | (i) with a gross vehicle weight rating in excess of 8,000 | ||||||
22 | pounds; (ii) that are subject to the commercial | ||||||
23 | distribution fee imposed under Section 3-815.1 of the | ||||||
24 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
25 | for commercial purposes. Through June 30, 2005, this
| ||||||
26 | exemption applies to repair and replacement parts added |
| |||||||
| |||||||
1 | after the
initial
purchase of such a motor vehicle if that | ||||||
2 | motor vehicle is used in a manner that
would
qualify for | ||||||
3 | the rolling stock exemption otherwise provided for in this | ||||||
4 | Act. For purposes of this paragraph, "used for commercial | ||||||
5 | purposes" means the transportation of persons or property | ||||||
6 | in furtherance of any commercial or industrial enterprise | ||||||
7 | whether for-hire or not.
| ||||||
8 | (5) a sale or transfer of machinery and equipment used | ||||||
9 | primarily in the
process of the manufacturing or | ||||||
10 | assembling, either in an existing, an expanded
or a new | ||||||
11 | manufacturing facility, of tangible personal property for | ||||||
12 | wholesale or
retail sale or lease, whether such sale or | ||||||
13 | lease is made directly by the
manufacturer or by some other | ||||||
14 | person, whether the materials used in the process
are owned | ||||||
15 | by the manufacturer or some other person, or whether such | ||||||
16 | sale or
lease is made apart from or as an incident to the | ||||||
17 | seller's engaging in a
service occupation and the | ||||||
18 | applicable tax is a Service Use Tax or Service
Occupation | ||||||
19 | Tax, rather than Use Tax or Retailers' Occupation Tax. The | ||||||
20 | exemption provided by this paragraph (5) does not include | ||||||
21 | machinery and equipment used in (i) the generation of | ||||||
22 | electricity for wholesale or retail sale; (ii) the | ||||||
23 | generation or treatment of natural or artificial gas for | ||||||
24 | wholesale or retail sale that is delivered to customers | ||||||
25 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
26 | of water for wholesale or retail sale that is delivered to |
| |||||||
| |||||||
1 | customers through pipes, pipelines, or mains. The | ||||||
2 | provisions of this amendatory Act of the 98th General | ||||||
3 | Assembly are declaratory of existing law as to the meaning | ||||||
4 | and scope of this exemption. The exemption under this | ||||||
5 | paragraph (5) is exempt from the provisions of Section | ||||||
6 | 3-75.
| ||||||
7 | (5a) the repairing, reconditioning or remodeling, for | ||||||
8 | a
common carrier by rail, of tangible personal property | ||||||
9 | which belongs to such
carrier for hire, and as to which | ||||||
10 | such carrier receives the physical possession
of the | ||||||
11 | repaired, reconditioned or remodeled item of tangible | ||||||
12 | personal property
in Illinois, and which such carrier | ||||||
13 | transports, or shares with another common
carrier in the | ||||||
14 | transportation of such property, out of Illinois on a | ||||||
15 | standard
uniform bill of lading showing the person who | ||||||
16 | repaired, reconditioned or
remodeled the property to a | ||||||
17 | destination outside Illinois, for use outside
Illinois.
| ||||||
18 | (5b) a sale or transfer of tangible personal property | ||||||
19 | which is produced by
the seller thereof on special order in | ||||||
20 | such a way as to have made the
applicable tax the Service | ||||||
21 | Occupation Tax or the Service Use Tax, rather than
the | ||||||
22 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
23 | carrier by rail
which receives the physical possession of | ||||||
24 | such property in Illinois, and which
transports such | ||||||
25 | property, or shares with another common carrier in the
| ||||||
26 | transportation of such property, out of Illinois on a |
| |||||||
| |||||||
1 | standard uniform bill of
lading showing the seller of the | ||||||
2 | property as the shipper or consignor of such
property to a | ||||||
3 | destination outside Illinois, for use outside Illinois.
| ||||||
4 | (6) until July 1, 2003, a sale or transfer of | ||||||
5 | distillation machinery
and equipment, sold
as a unit or kit | ||||||
6 | and assembled or installed by the retailer, which
machinery | ||||||
7 | and equipment is certified by the user to be used only for | ||||||
8 | the
production of ethyl alcohol that will be used for | ||||||
9 | consumption as motor fuel
or as a component of motor fuel | ||||||
10 | for the personal use of such user and not
subject to sale | ||||||
11 | or resale.
| ||||||
12 | (7) at the election of any serviceman not required to | ||||||
13 | be
otherwise registered as a retailer under Section 2a of | ||||||
14 | the Retailers'
Occupation Tax Act, made for each fiscal | ||||||
15 | year sales
of service in which the aggregate annual cost | ||||||
16 | price of tangible
personal property transferred as an | ||||||
17 | incident to the sales of service is
less than 35%, or 75% | ||||||
18 | in the case of servicemen transferring prescription
drugs | ||||||
19 | or servicemen engaged in graphic arts production, of the | ||||||
20 | aggregate
annual total gross receipts from all sales of | ||||||
21 | service. The purchase of
such tangible personal property by | ||||||
22 | the serviceman shall be subject to tax
under the Retailers' | ||||||
23 | Occupation Tax Act and the Use Tax Act.
However, if a
| ||||||
24 | primary serviceman who has made the election described in | ||||||
25 | this paragraph
subcontracts service work to a secondary | ||||||
26 | serviceman who has also made the
election described in this |
| |||||||
| |||||||
1 | paragraph, the primary serviceman does not
incur a Use Tax | ||||||
2 | liability if the secondary serviceman (i) has paid or will | ||||||
3 | pay
Use
Tax on his or her cost price of any tangible | ||||||
4 | personal property transferred
to the primary serviceman | ||||||
5 | and (ii) certifies that fact in writing to the
primary
| ||||||
6 | serviceman.
| ||||||
7 | Tangible personal property transferred incident to the | ||||||
8 | completion of a
maintenance agreement is exempt from the tax | ||||||
9 | imposed pursuant to this Act.
| ||||||
10 | Exemption (5) also includes machinery and equipment used in | ||||||
11 | the general
maintenance or repair of such exempt machinery and | ||||||
12 | equipment or for in-house
manufacture of exempt machinery and | ||||||
13 | equipment. On and after July 1, 2017, exemption (5) also
| ||||||
14 | includes production related tangible personal property, as
| ||||||
15 | defined in Section 3-50 of the Use Tax Act. On and after July | ||||||
16 | 1, 2017, exemption (5) also
includes graphic arts machinery and | ||||||
17 | equipment, as
defined in paragraph (5) of Section 3-5. The | ||||||
18 | machinery and equipment exemption does not include machinery | ||||||
19 | and equipment used in (i) the generation of electricity for | ||||||
20 | wholesale or retail sale; (ii) the generation or treatment of | ||||||
21 | natural or artificial gas for wholesale or retail sale that is | ||||||
22 | delivered to customers through pipes, pipelines, or mains; or | ||||||
23 | (iii) the treatment of water for wholesale or retail sale that | ||||||
24 | is delivered to customers through pipes, pipelines, or mains. | ||||||
25 | The provisions of this amendatory Act of the 98th General | ||||||
26 | Assembly are declaratory of existing law as to the meaning and |
| |||||||
| |||||||
1 | scope of this exemption. For the purposes of exemption
(5), | ||||||
2 | each of these terms shall have the following meanings: (1) | ||||||
3 | "manufacturing
process" shall mean the production of any | ||||||
4 | article of tangible personal
property, whether such article is | ||||||
5 | a finished product or an article for use in
the process of | ||||||
6 | manufacturing or assembling a different article of tangible
| ||||||
7 | personal property, by procedures commonly regarded as | ||||||
8 | manufacturing,
processing, fabricating, or refining which | ||||||
9 | changes some existing
material or materials into a material | ||||||
10 | with a different form, use or
name. In relation to a recognized | ||||||
11 | integrated business composed of a
series of operations which | ||||||
12 | collectively constitute manufacturing, or
individually | ||||||
13 | constitute manufacturing operations, the manufacturing
process | ||||||
14 | shall be deemed to commence with the first operation or stage | ||||||
15 | of
production in the series, and shall not be deemed to end | ||||||
16 | until the
completion of the final product in the last operation | ||||||
17 | or stage of
production in the series; and further, for purposes | ||||||
18 | of exemption (5),
photoprocessing is deemed to be a | ||||||
19 | manufacturing process of tangible
personal property for | ||||||
20 | wholesale or retail sale; (2) "assembling process" shall
mean | ||||||
21 | the production of any article of tangible personal property, | ||||||
22 | whether such
article is a finished product or an article for | ||||||
23 | use in the process of
manufacturing or assembling a different | ||||||
24 | article of tangible personal
property, by the combination of | ||||||
25 | existing materials in a manner commonly
regarded as assembling | ||||||
26 | which results in a material of a different form,
use or name; |
| |||||||
| |||||||
1 | (3) "machinery" shall mean major mechanical machines or
major | ||||||
2 | components of such machines contributing to a manufacturing or
| ||||||
3 | assembling process; and (4) "equipment" shall include any | ||||||
4 | independent
device or tool separate from any machinery but | ||||||
5 | essential to an
integrated manufacturing or assembly process; | ||||||
6 | including computers
used primarily in a manufacturer's | ||||||
7 | computer
assisted design, computer assisted manufacturing | ||||||
8 | (CAD/CAM) system;
or any subunit or assembly comprising a | ||||||
9 | component of any machinery or
auxiliary, adjunct or attachment | ||||||
10 | parts of machinery, such as tools, dies,
jigs, fixtures, | ||||||
11 | patterns and molds; or any parts which require periodic
| ||||||
12 | replacement in the course of normal operation; but shall not | ||||||
13 | include hand
tools.
Equipment includes chemicals or chemicals | ||||||
14 | acting as catalysts but only if the
chemicals or chemicals | ||||||
15 | acting as catalysts effect a direct and immediate change
upon a
| ||||||
16 | product being manufactured or assembled for wholesale or retail | ||||||
17 | sale or
lease.
The purchaser of such machinery and equipment | ||||||
18 | who has an active
resale registration number shall furnish such | ||||||
19 | number to the seller at the
time of purchase. The user of such | ||||||
20 | machinery and equipment and tools
without an active resale | ||||||
21 | registration number shall prepare a certificate of
exemption | ||||||
22 | for each transaction stating facts establishing the exemption | ||||||
23 | for
that transaction, which certificate shall be available to | ||||||
24 | the Department
for inspection or audit. The Department shall | ||||||
25 | prescribe the form of the
certificate.
| ||||||
26 | Any informal rulings, opinions or letters issued by the |
| |||||||
| |||||||
1 | Department in
response to an inquiry or request for any opinion | ||||||
2 | from any person
regarding the coverage and applicability of | ||||||
3 | exemption (5) to specific
devices shall be published, | ||||||
4 | maintained as a public record, and made
available for public | ||||||
5 | inspection and copying. If the informal ruling,
opinion or | ||||||
6 | letter contains trade secrets or other confidential
| ||||||
7 | information, where possible the Department shall delete such | ||||||
8 | information
prior to publication. Whenever such informal | ||||||
9 | rulings, opinions, or
letters contain any policy of general | ||||||
10 | applicability, the Department
shall formulate and adopt such | ||||||
11 | policy as a rule in accordance with the
provisions of the | ||||||
12 | Illinois Administrative Procedure Act.
| ||||||
13 | On and after July 1, 1987, no entity otherwise eligible | ||||||
14 | under exemption
(3) of this Section shall make tax free | ||||||
15 | purchases unless it has an active
exemption identification | ||||||
16 | number issued by the Department.
| ||||||
17 | The purchase, employment and transfer of such tangible | ||||||
18 | personal
property as newsprint and ink for the primary purpose | ||||||
19 | of conveying news
(with or without other information) is not a | ||||||
20 | purchase, use or sale of
service or of tangible personal | ||||||
21 | property within the meaning of this Act.
| ||||||
22 | "Serviceman" means any person who is engaged in the | ||||||
23 | occupation of
making sales of service.
| ||||||
24 | "Sale at retail" means "sale at retail" as defined in the | ||||||
25 | Retailers'
Occupation Tax Act.
| ||||||
26 | "Supplier" means any person who makes sales of tangible |
| |||||||
| |||||||
1 | personal
property to servicemen for the purpose of resale as an | ||||||
2 | incident to a
sale of service.
| ||||||
3 | "Serviceman maintaining a place of business in this State", | ||||||
4 | or any
like term, means and includes any serviceman:
| ||||||
5 | 1. having or maintaining within this State, directly or | ||||||
6 | by a
subsidiary, an office, distribution house, sales | ||||||
7 | house, warehouse or
other place of business, or any agent | ||||||
8 | or other representative operating
within this State under | ||||||
9 | the authority of the serviceman or its
subsidiary, | ||||||
10 | irrespective of whether such place of business or agent or
| ||||||
11 | other representative is located here permanently or | ||||||
12 | temporarily, or
whether such serviceman or subsidiary is | ||||||
13 | licensed to do business in this
State; | ||||||
14 | 1.1. having a contract with a person located in this | ||||||
15 | State under which the person, for a commission or other | ||||||
16 | consideration based on the sale of service by the | ||||||
17 | serviceman, directly or indirectly refers potential | ||||||
18 | customers to the serviceman by providing to the potential | ||||||
19 | customers a promotional code or other mechanism that allows | ||||||
20 | the serviceman to track purchases referred by such persons. | ||||||
21 | Examples of mechanisms that allow the serviceman to track | ||||||
22 | purchases referred by such persons include but are not | ||||||
23 | limited to the use of a link on the person's Internet | ||||||
24 | website, promotional codes distributed through the | ||||||
25 | person's hand-delivered or mailed material, and | ||||||
26 | promotional codes distributed by the person through radio |
| |||||||
| |||||||
1 | or other broadcast media. The provisions of this paragraph | ||||||
2 | 1.1 shall apply only if the cumulative gross receipts from | ||||||
3 | sales of service by the serviceman to customers who are | ||||||
4 | referred to the serviceman by all persons in this State | ||||||
5 | under such contracts exceed $10,000 during the preceding 4 | ||||||
6 | quarterly periods ending on the last day of March, June, | ||||||
7 | September, and December; a serviceman meeting the | ||||||
8 | requirements of this paragraph 1.1 shall be presumed to be | ||||||
9 | maintaining a place of business in this State but may rebut | ||||||
10 | this presumption by submitting proof that the referrals or | ||||||
11 | other activities pursued within this State by such persons | ||||||
12 | were not sufficient to meet the nexus standards of the | ||||||
13 | United States Constitution during the preceding 4 | ||||||
14 | quarterly periods; | ||||||
15 | 1.2. beginning July 1, 2011, having a contract with a | ||||||
16 | person located in this State under which: | ||||||
17 | A. the serviceman sells the same or substantially | ||||||
18 | similar line of services as the person located in this | ||||||
19 | State and does so using an identical or substantially | ||||||
20 | similar name, trade name, or trademark as the person | ||||||
21 | located in this State; and | ||||||
22 | B. the serviceman provides a commission or other | ||||||
23 | consideration to the person located in this State based | ||||||
24 | upon the sale of services by the serviceman. | ||||||
25 | The provisions of this paragraph 1.2 shall apply only if | ||||||
26 | the cumulative gross receipts from sales of service by the |
| |||||||
| |||||||
1 | serviceman to customers in this State under all such | ||||||
2 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
3 | periods ending on the last day of March, June, September, | ||||||
4 | and December;
| ||||||
5 | 2. soliciting orders for tangible personal property by | ||||||
6 | means of a
telecommunication or television shopping system | ||||||
7 | (which utilizes toll free
numbers) which is intended by the | ||||||
8 | retailer to be broadcast by cable
television or other means | ||||||
9 | of broadcasting, to consumers located in this State;
| ||||||
10 | 3. pursuant to a contract with a broadcaster or | ||||||
11 | publisher located in this
State, soliciting orders for | ||||||
12 | tangible personal property by means of advertising
which is | ||||||
13 | disseminated primarily to consumers located in this State | ||||||
14 | and only
secondarily to bordering jurisdictions;
| ||||||
15 | 4. soliciting orders for tangible personal property by | ||||||
16 | mail if the
solicitations are substantial and recurring and | ||||||
17 | if the retailer benefits
from any banking, financing, debt | ||||||
18 | collection, telecommunication, or
marketing activities | ||||||
19 | occurring in this State or benefits from the location
in | ||||||
20 | this State of authorized installation, servicing, or | ||||||
21 | repair facilities;
| ||||||
22 | 5. being owned or controlled by the same interests | ||||||
23 | which own or
control any retailer engaging in business in | ||||||
24 | the same or similar line of
business in this State;
| ||||||
25 | 6. having a franchisee or licensee operating under its | ||||||
26 | trade name if
the franchisee or licensee is required to |
| |||||||
| |||||||
1 | collect the tax under this Section;
| ||||||
2 | 7. pursuant to a contract with a cable television | ||||||
3 | operator located in
this State, soliciting orders for | ||||||
4 | tangible personal property by means of
advertising which is | ||||||
5 | transmitted or distributed over a cable television
system | ||||||
6 | in this State; or
| ||||||
7 | 8. engaging in activities in Illinois, which | ||||||
8 | activities in the
state in which the supply business | ||||||
9 | engaging in such activities is located
would constitute | ||||||
10 | maintaining a place of business in that state.
| ||||||
11 | (Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
| ||||||
12 | (35 ILCS 110/3-5)
| ||||||
13 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
14 | personal property
is exempt from the tax imposed by this Act:
| ||||||
15 | (1) Personal property purchased from a corporation, | ||||||
16 | society,
association, foundation, institution, or | ||||||
17 | organization, other than a limited
liability company, that is | ||||||
18 | organized and operated as a not-for-profit service
enterprise | ||||||
19 | for the benefit of persons 65 years of age or older if the | ||||||
20 | personal
property was not purchased by the enterprise for the | ||||||
21 | purpose of resale by the
enterprise.
| ||||||
22 | (2) Personal property purchased by a non-profit Illinois | ||||||
23 | county fair
association for use in conducting, operating, or | ||||||
24 | promoting the county fair.
| ||||||
25 | (3) Personal property purchased by a not-for-profit arts
or |
| |||||||
| |||||||
1 | cultural
organization that establishes, by proof required by | ||||||
2 | the Department by rule,
that it has received an exemption under | ||||||
3 | Section 501(c)(3) of the Internal
Revenue Code and that is | ||||||
4 | organized and operated primarily for the
presentation
or | ||||||
5 | support of arts or cultural programming, activities, or | ||||||
6 | services. These
organizations include, but are not limited to, | ||||||
7 | music and dramatic arts
organizations such as symphony | ||||||
8 | orchestras and theatrical groups, arts and
cultural service | ||||||
9 | organizations, local arts councils, visual arts organizations,
| ||||||
10 | and media arts organizations.
On and after the effective date | ||||||
11 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
12 | an entity otherwise eligible for this exemption shall not
make | ||||||
13 | tax-free purchases unless it has an active identification | ||||||
14 | number issued by
the Department.
| ||||||
15 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
16 | coinage issued
by the State of Illinois, the government of the | ||||||
17 | United States of America,
or the government of any foreign | ||||||
18 | country, and bullion.
| ||||||
19 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
20 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
21 | equipment, including
repair and
replacement parts, both new and | ||||||
22 | used, and including that manufactured on
special order or | ||||||
23 | purchased for lease, certified by the purchaser to be used
| ||||||
24 | primarily for graphic arts production.
Equipment includes | ||||||
25 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
26 | chemicals or chemicals acting as catalysts effect a direct and |
| |||||||
| |||||||
1 | immediate
change upon a graphic arts product. Beginning on July | ||||||
2 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
3 | the manufacturing and assembling machinery and equipment | ||||||
4 | exemption under Section 2 of this Act.
| ||||||
5 | (6) Personal property purchased from a teacher-sponsored | ||||||
6 | student
organization affiliated with an elementary or | ||||||
7 | secondary school located
in Illinois.
| ||||||
8 | (7) Farm machinery and equipment, both new and used, | ||||||
9 | including that
manufactured on special order, certified by the | ||||||
10 | purchaser to be used
primarily for production agriculture or | ||||||
11 | State or federal agricultural
programs, including individual | ||||||
12 | replacement parts for the machinery and
equipment, including | ||||||
13 | machinery and equipment purchased for lease,
and including | ||||||
14 | implements of husbandry defined in Section 1-130 of
the | ||||||
15 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
16 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
17 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
18 | but
excluding other motor vehicles required to be registered | ||||||
19 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
20 | hoop houses used for propagating, growing, or
overwintering | ||||||
21 | plants shall be considered farm machinery and equipment under
| ||||||
22 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
23 | shall include units sold
separately from a motor vehicle | ||||||
24 | required to be licensed and units sold mounted
on a motor | ||||||
25 | vehicle required to be licensed if the selling price of the | ||||||
26 | tender
is separately stated.
|
| |||||||
| |||||||
1 | Farm machinery and equipment shall include precision | ||||||
2 | farming equipment
that is
installed or purchased to be | ||||||
3 | installed on farm machinery and equipment
including, but not | ||||||
4 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
5 | or spreaders.
Precision farming equipment includes, but is not | ||||||
6 | limited to,
soil testing sensors, computers, monitors, | ||||||
7 | software, global positioning
and mapping systems, and other | ||||||
8 | such equipment.
| ||||||
9 | Farm machinery and equipment also includes computers, | ||||||
10 | sensors, software, and
related equipment used primarily in the
| ||||||
11 | computer-assisted operation of production agriculture | ||||||
12 | facilities, equipment,
and activities such as, but
not limited | ||||||
13 | to,
the collection, monitoring, and correlation of
animal and | ||||||
14 | crop data for the purpose of
formulating animal diets and | ||||||
15 | agricultural chemicals. This item (7) is exempt
from the | ||||||
16 | provisions of
Section 3-75.
| ||||||
17 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
18 | to or used by an air common
carrier, certified by the carrier | ||||||
19 | to be used for consumption, shipment, or
storage in the conduct | ||||||
20 | of its business as an air common carrier, for a
flight destined | ||||||
21 | for or returning from a location or locations
outside the | ||||||
22 | United States without regard to previous or subsequent domestic
| ||||||
23 | stopovers.
| ||||||
24 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
25 | or used by an air carrier, certified by the carrier to be used | ||||||
26 | for consumption, shipment, or storage in the conduct of its |
| |||||||
| |||||||
1 | business as an air common carrier, for a flight that (i) is | ||||||
2 | engaged in foreign trade or is engaged in trade between the | ||||||
3 | United States and any of its possessions and (ii) transports at | ||||||
4 | least one individual or package for hire from the city of | ||||||
5 | origination to the city of final destination on the same | ||||||
6 | aircraft, without regard to a change in the flight number of | ||||||
7 | that aircraft. | ||||||
8 | (9) Proceeds of mandatory service charges separately | ||||||
9 | stated on
customers' bills for the purchase and consumption of | ||||||
10 | food and beverages
acquired as an incident to the purchase of a | ||||||
11 | service from a serviceman, to
the extent that the proceeds of | ||||||
12 | the service charge are in fact
turned over as tips or as a | ||||||
13 | substitute for tips to the employees who
participate directly | ||||||
14 | in preparing, serving, hosting or cleaning up the
food or | ||||||
15 | beverage function with respect to which the service charge is | ||||||
16 | imposed.
| ||||||
17 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
18 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
19 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
20 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
21 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
22 | individual replacement part for oil field exploration,
| ||||||
23 | drilling, and production equipment, and (vi) machinery and | ||||||
24 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
25 | required to be registered under the Illinois
Vehicle Code.
| ||||||
26 | (11) Proceeds from the sale of photoprocessing machinery |
| |||||||
| |||||||
1 | and
equipment, including repair and replacement parts, both new | ||||||
2 | and
used, including that manufactured on special order, | ||||||
3 | certified by the
purchaser to be used primarily for | ||||||
4 | photoprocessing, and including
photoprocessing machinery and | ||||||
5 | equipment purchased for lease.
| ||||||
6 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
7 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
8 | including
replacement parts and equipment, and including
| ||||||
9 | equipment purchased for lease, but excluding motor vehicles | ||||||
10 | required to be
registered under the Illinois Vehicle Code. The | ||||||
11 | changes made to this Section by Public Act 97-767 apply on and | ||||||
12 | after July 1, 2003, but no claim for credit or refund is | ||||||
13 | allowed on or after August 16, 2013 (the effective date of | ||||||
14 | Public Act 98-456)
for such taxes paid during the period | ||||||
15 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
16 | effective date of Public Act 98-456).
| ||||||
17 | (13) Semen used for artificial insemination of livestock | ||||||
18 | for direct
agricultural production.
| ||||||
19 | (14) Horses, or interests in horses, registered with and | ||||||
20 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
21 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
22 | Horse Association, United States
Trotting Association, or | ||||||
23 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
24 | racing for prizes. This item (14) is exempt from the provisions | ||||||
25 | of Section 3-75, and the exemption provided for under this item | ||||||
26 | (14) applies for all periods beginning May 30, 1995, but no |
| |||||||
| |||||||
1 | claim for credit or refund is allowed on or after the effective | ||||||
2 | date of this amendatory Act of the 95th General Assembly for | ||||||
3 | such taxes paid during the period beginning May 30, 2000 and | ||||||
4 | ending on the effective date of this amendatory Act of the 95th | ||||||
5 | General Assembly.
| ||||||
6 | (15) Computers and communications equipment utilized for | ||||||
7 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
8 | analysis, or treatment of hospital patients purchased by a | ||||||
9 | lessor who leases
the
equipment, under a lease of one year or | ||||||
10 | longer executed or in effect at the
time
the lessor would | ||||||
11 | otherwise be subject to the tax imposed by this Act,
to a
| ||||||
12 | hospital
that has been issued an active tax exemption | ||||||
13 | identification number by the
Department under Section 1g of the | ||||||
14 | Retailers' Occupation Tax Act.
If the
equipment is leased in a | ||||||
15 | manner that does not qualify for
this exemption
or is used in | ||||||
16 | any other non-exempt manner,
the lessor shall be liable for the
| ||||||
17 | tax imposed under this Act or the Use Tax Act, as the case may
| ||||||
18 | be, based on the fair market value of the property at the time | ||||||
19 | the
non-qualifying use occurs. No lessor shall collect or | ||||||
20 | attempt to collect an
amount (however
designated) that purports | ||||||
21 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
22 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
23 | the lessor. If a lessor improperly collects any such amount | ||||||
24 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
25 | refund of that amount
from the lessor. If, however, that amount | ||||||
26 | is not refunded to the lessee for
any reason, the lessor is |
| |||||||
| |||||||
1 | liable to pay that amount to the Department.
| ||||||
2 | (16) Personal property purchased by a lessor who leases the
| ||||||
3 | property, under
a
lease of one year or longer executed or in | ||||||
4 | effect at the time
the lessor would otherwise be subject to the | ||||||
5 | tax imposed by this Act,
to a governmental body
that has been | ||||||
6 | issued an active tax exemption identification number by the
| ||||||
7 | Department under Section 1g of the Retailers' Occupation Tax | ||||||
8 | Act.
If the
property is leased in a manner that does not | ||||||
9 | qualify for
this exemption
or is used in any other non-exempt | ||||||
10 | manner,
the lessor shall be liable for the
tax imposed under | ||||||
11 | this Act or the Use Tax Act, as the case may
be, based on the | ||||||
12 | fair market value of the property at the time the
| ||||||
13 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
14 | to collect an
amount (however
designated) that purports to | ||||||
15 | reimburse that lessor for the tax imposed by this
Act or the | ||||||
16 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
17 | the lessor. If a lessor improperly collects any such amount | ||||||
18 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
19 | refund of that amount
from the lessor. If, however, that amount | ||||||
20 | is not refunded to the lessee for
any reason, the lessor is | ||||||
21 | liable to pay that amount to the Department.
| ||||||
22 | (17) Beginning with taxable years ending on or after | ||||||
23 | December
31,
1995
and
ending with taxable years ending on or | ||||||
24 | before December 31, 2004,
personal property that is
donated for | ||||||
25 | disaster relief to be used in a State or federally declared
| ||||||
26 | disaster area in Illinois or bordering Illinois by a |
| |||||||
| |||||||
1 | manufacturer or retailer
that is registered in this State to a | ||||||
2 | corporation, society, association,
foundation, or institution | ||||||
3 | that has been issued a sales tax exemption
identification | ||||||
4 | number by the Department that assists victims of the disaster
| ||||||
5 | who reside within the declared disaster area.
| ||||||
6 | (18) Beginning with taxable years ending on or after | ||||||
7 | December
31, 1995 and
ending with taxable years ending on or | ||||||
8 | before December 31, 2004, personal
property that is used in the | ||||||
9 | performance of infrastructure repairs in this
State, including | ||||||
10 | but not limited to municipal roads and streets, access roads,
| ||||||
11 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
12 | line extensions,
water distribution and purification | ||||||
13 | facilities, storm water drainage and
retention facilities, and | ||||||
14 | sewage treatment facilities, resulting from a State
or | ||||||
15 | federally declared disaster in Illinois or bordering Illinois | ||||||
16 | when such
repairs are initiated on facilities located in the | ||||||
17 | declared disaster area
within 6 months after the disaster.
| ||||||
18 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
19 | at a "game
breeding
and hunting preserve area" as that term is
| ||||||
20 | used in
the Wildlife Code. This paragraph is exempt from the | ||||||
21 | provisions
of
Section 3-75.
| ||||||
22 | (20) A motor vehicle, as that term is defined in Section | ||||||
23 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
24 | corporation, limited liability
company, society, association, | ||||||
25 | foundation, or institution that is determined by
the Department | ||||||
26 | to be organized and operated exclusively for educational
|
| |||||||
| |||||||
1 | purposes. For purposes of this exemption, "a corporation, | ||||||
2 | limited liability
company, society, association, foundation, | ||||||
3 | or institution organized and
operated
exclusively for | ||||||
4 | educational purposes" means all tax-supported public schools,
| ||||||
5 | private schools that offer systematic instruction in useful | ||||||
6 | branches of
learning by methods common to public schools and | ||||||
7 | that compare favorably in
their scope and intensity with the | ||||||
8 | course of study presented in tax-supported
schools, and | ||||||
9 | vocational or technical schools or institutes organized and
| ||||||
10 | operated exclusively to provide a course of study of not less | ||||||
11 | than 6 weeks
duration and designed to prepare individuals to | ||||||
12 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
13 | industrial, business, or commercial
occupation.
| ||||||
14 | (21) Beginning January 1, 2000, personal property, | ||||||
15 | including
food,
purchased through fundraising
events for the | ||||||
16 | benefit of
a public or private elementary or
secondary school, | ||||||
17 | a group of those schools, or one or more school
districts if | ||||||
18 | the events are
sponsored by an entity recognized by the school | ||||||
19 | district that consists
primarily of volunteers and includes
| ||||||
20 | parents and teachers of the school children. This paragraph | ||||||
21 | does not apply
to fundraising
events (i) for the benefit of | ||||||
22 | private home instruction or (ii)
for which the fundraising | ||||||
23 | entity purchases the personal property sold at
the events from | ||||||
24 | another individual or entity that sold the property for the
| ||||||
25 | purpose of resale by the fundraising entity and that
profits | ||||||
26 | from the sale to the
fundraising entity. This paragraph is |
| |||||||
| |||||||
1 | exempt
from the provisions
of Section 3-75.
| ||||||
2 | (22) Beginning January 1, 2000
and through December 31, | ||||||
3 | 2001, new or used automatic vending
machines that prepare and | ||||||
4 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
5 | items, and replacement parts for these machines.
Beginning | ||||||
6 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
7 | for machines used in
commercial, coin-operated
amusement
and | ||||||
8 | vending business if a use or occupation tax is paid on the | ||||||
9 | gross receipts
derived from
the use of the commercial, | ||||||
10 | coin-operated amusement and vending machines.
This
paragraph
| ||||||
11 | is exempt from the provisions of Section 3-75.
| ||||||
12 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
13 | food for human consumption that is to be consumed off the
| ||||||
14 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
15 | drinks, and food that
has been prepared for immediate | ||||||
16 | consumption) and prescription and
nonprescription medicines, | ||||||
17 | drugs, medical appliances, and insulin, urine
testing | ||||||
18 | materials, syringes, and needles used by diabetics, for human | ||||||
19 | use, when
purchased for use by a person receiving medical | ||||||
20 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
21 | resides in a licensed long-term care facility,
as defined in | ||||||
22 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
23 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
24 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
25 | (24) Beginning on the effective date of this amendatory Act | ||||||
26 | of the 92nd
General Assembly, computers and communications |
| |||||||
| |||||||
1 | equipment
utilized for any hospital purpose and equipment used | ||||||
2 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
3 | purchased by a lessor who leases
the equipment, under a lease | ||||||
4 | of one year or longer executed or in effect at the
time the | ||||||
5 | lessor would otherwise be subject to the tax imposed by this | ||||||
6 | Act, to a
hospital that has been issued an active tax exemption | ||||||
7 | identification number by
the Department under Section 1g of the | ||||||
8 | Retailers' Occupation Tax Act. If the
equipment is leased in a | ||||||
9 | manner that does not qualify for this exemption or is
used in | ||||||
10 | any other nonexempt manner, the lessor shall be liable for the
| ||||||
11 | tax imposed under this Act or the Use Tax Act, as the case may | ||||||
12 | be, based on the
fair market value of the property at the time | ||||||
13 | the nonqualifying use occurs.
No lessor shall collect or | ||||||
14 | attempt to collect an amount (however
designated) that purports | ||||||
15 | to reimburse that lessor for the tax imposed by this
Act or the | ||||||
16 | Use Tax Act, as the case may be, if the tax has not been
paid by | ||||||
17 | the lessor. If a lessor improperly collects any such amount | ||||||
18 | from the
lessee, the lessee shall have a legal right to claim a | ||||||
19 | refund of that amount
from the lessor. If, however, that amount | ||||||
20 | is not refunded to the lessee for
any reason, the lessor is | ||||||
21 | liable to pay that amount to the Department.
This paragraph is | ||||||
22 | exempt from the provisions of Section 3-75.
| ||||||
23 | (25) Beginning
on the effective date of this amendatory Act | ||||||
24 | of the 92nd General Assembly,
personal property purchased by a | ||||||
25 | lessor
who leases the property, under a lease of one year or | ||||||
26 | longer executed or in
effect at the time the lessor would |
| |||||||
| |||||||
1 | otherwise be subject to the tax imposed by
this Act, to a | ||||||
2 | governmental body that has been issued an active tax exemption
| ||||||
3 | identification number by the Department under Section 1g of the | ||||||
4 | Retailers'
Occupation Tax Act. If the property is leased in a | ||||||
5 | manner that does not
qualify for this exemption or is used in | ||||||
6 | any other nonexempt manner, the
lessor shall be liable for the | ||||||
7 | tax imposed under this Act or the Use Tax Act,
as the case may | ||||||
8 | be, based on the fair market value of the property at the time
| ||||||
9 | the nonqualifying use occurs. No lessor shall collect or | ||||||
10 | attempt to collect
an amount (however designated) that purports | ||||||
11 | to reimburse that lessor for the
tax imposed by this Act or the | ||||||
12 | Use Tax Act, as the case may be, if the tax has
not been paid by | ||||||
13 | the lessor. If a lessor improperly collects any such amount
| ||||||
14 | from the lessee, the lessee shall have a legal right to claim a | ||||||
15 | refund of that
amount from the lessor. If, however, that amount | ||||||
16 | is not refunded to the lessee
for any reason, the lessor is | ||||||
17 | liable to pay that amount to the Department.
This paragraph is | ||||||
18 | exempt from the provisions of Section 3-75.
| ||||||
19 | (26) Beginning January 1, 2008, tangible personal property | ||||||
20 | used in the construction or maintenance of a community water | ||||||
21 | supply, as defined under Section 3.145 of the Environmental | ||||||
22 | Protection Act, that is operated by a not-for-profit | ||||||
23 | corporation that holds a valid water supply permit issued under | ||||||
24 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
25 | exempt from the provisions of Section 3-75.
| ||||||
26 | (27) Beginning January 1, 2010, materials, parts, |
| |||||||
| |||||||
1 | equipment, components, and furnishings incorporated into or | ||||||
2 | upon an aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used in | ||||||
5 | the modification, refurbishment, completion, replacement, | ||||||
6 | repair, and maintenance of aircraft, but excludes any | ||||||
7 | materials, parts, equipment, components, and consumable | ||||||
8 | supplies used in the modification, replacement, repair, and | ||||||
9 | maintenance of aircraft engines or power plants, whether such | ||||||
10 | engines or power plants are installed or uninstalled upon any | ||||||
11 | such aircraft. "Consumable supplies" include, but are not | ||||||
12 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
13 | lubricants, cleaning solution, latex gloves, and protective | ||||||
14 | films. This exemption applies only to the use of qualifying | ||||||
15 | tangible personal property transferred incident to the | ||||||
16 | modification, refurbishment, completion, replacement, repair, | ||||||
17 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
18 | Agency Certificate and are empowered to operate an approved | ||||||
19 | repair station by the Federal Aviation Administration, (ii) | ||||||
20 | have a Class IV Rating, and (iii) conduct operations in | ||||||
21 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
22 | The exemption does not include aircraft operated by a | ||||||
23 | commercial air carrier providing scheduled passenger air | ||||||
24 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
25 | of the Federal Aviation Regulations. The changes made to this | ||||||
26 | paragraph (27) by Public Act 98-534 are declarative of existing |
| |||||||
| |||||||
1 | law. | ||||||
2 | (28) Tangible personal property purchased by a | ||||||
3 | public-facilities corporation, as described in Section | ||||||
4 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
5 | constructing or furnishing a municipal convention hall, but | ||||||
6 | only if the legal title to the municipal convention hall is | ||||||
7 | transferred to the municipality without any further | ||||||
8 | consideration by or on behalf of the municipality at the time | ||||||
9 | of the completion of the municipal convention hall or upon the | ||||||
10 | retirement or redemption of any bonds or other debt instruments | ||||||
11 | issued by the public-facilities corporation in connection with | ||||||
12 | the development of the municipal convention hall. This | ||||||
13 | exemption includes existing public-facilities corporations as | ||||||
14 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
15 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
16 | (29) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
17 | and menstrual cups. | ||||||
18 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
19 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
20 | 7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
21 | Section 30-30. The Service Occupation Tax Act is amended by | ||||||
22 | changing Sections 2 and 3-5 as follows:
| ||||||
23 | (35 ILCS 115/2) (from Ch. 120, par. 439.102)
| ||||||
24 | Sec. 2. "Transfer" means any transfer of the title to |
| |||||||
| |||||||
1 | property or of
the ownership of property whether or not the | ||||||
2 | transferor retains title as
security for the payment of amounts | ||||||
3 | due him from the transferee.
| ||||||
4 | "Cost Price" means the consideration paid by the serviceman | ||||||
5 | for a
purchase valued in money, whether paid in money or | ||||||
6 | otherwise, including
cash, credits and services, and shall be | ||||||
7 | determined without any deduction
on account of the supplier's | ||||||
8 | cost of the property sold or on account of any
other expense | ||||||
9 | incurred by the supplier. When a serviceman contracts out
part | ||||||
10 | or all of the services required in his sale of service, it | ||||||
11 | shall be
presumed that the cost price to the serviceman of the | ||||||
12 | property
transferred to him by his or her subcontractor is | ||||||
13 | equal to 50% of the
subcontractor's charges to the serviceman | ||||||
14 | in the absence of proof of the
consideration paid by the | ||||||
15 | subcontractor for the purchase of such
property.
| ||||||
16 | "Department" means the Department of Revenue.
| ||||||
17 | "Person" means any natural individual, firm, partnership, | ||||||
18 | association, joint
stock company, joint venture, public or | ||||||
19 | private corporation, limited liability
company, and any | ||||||
20 | receiver, executor, trustee, guardian or other representative
| ||||||
21 | appointed by order of any court.
| ||||||
22 | "Sale of Service" means any transaction except:
| ||||||
23 | (a) A retail sale of tangible personal property taxable | ||||||
24 | under the Retailers'
Occupation Tax Act or under the Use Tax | ||||||
25 | Act.
| ||||||
26 | (b) A sale of tangible personal property for the purpose of |
| |||||||
| |||||||
1 | resale made in
compliance with Section 2c of the Retailers' | ||||||
2 | Occupation Tax Act.
| ||||||
3 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
4 | tangible personal
property as an incident to the rendering of | ||||||
5 | service for or by any governmental
body or for or by any | ||||||
6 | corporation, society, association, foundation or
institution | ||||||
7 | organized and operated exclusively for charitable, religious | ||||||
8 | or
educational purposes or any not-for-profit corporation, | ||||||
9 | society, association,
foundation, institution or organization | ||||||
10 | which has no compensated officers or
employees and which is | ||||||
11 | organized and operated primarily for the recreation of
persons | ||||||
12 | 55 years of age or older. A limited liability company may | ||||||
13 | qualify for
the exemption under this paragraph only if the | ||||||
14 | limited liability company is
organized and operated | ||||||
15 | exclusively for educational purposes.
| ||||||
16 | (d) A sale or transfer of tangible personal
property
as an | ||||||
17 | incident to the
rendering of service for interstate carriers | ||||||
18 | for hire for use as rolling stock
moving in interstate commerce | ||||||
19 | or lessors under leases of one year or longer,
executed or in | ||||||
20 | effect at the time of purchase, to interstate carriers for hire
| ||||||
21 | for use as rolling stock moving in interstate commerce, and | ||||||
22 | equipment operated
by a telecommunications provider, licensed | ||||||
23 | as a common
carrier by the Federal Communications Commission, | ||||||
24 | which is permanently
installed in or affixed to aircraft moving | ||||||
25 | in interstate commerce.
| ||||||
26 | (d-1) A sale or transfer of tangible personal
property as |
| |||||||
| |||||||
1 | an incident to
the rendering of service for owners, lessors or | ||||||
2 | shippers of tangible personal
property which is utilized by | ||||||
3 | interstate carriers for hire for use as rolling
stock moving in | ||||||
4 | interstate commerce, and equipment operated
by a | ||||||
5 | telecommunications provider, licensed as a common carrier by | ||||||
6 | the
Federal Communications Commission, which is permanently | ||||||
7 | installed in or
affixed to aircraft moving in interstate | ||||||
8 | commerce.
| ||||||
9 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
10 | 2004, a sale or transfer of a motor vehicle
of the
second | ||||||
11 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
12 | as an
incident to the rendering of service if that motor
| ||||||
13 | vehicle is subject
to the commercial distribution fee imposed | ||||||
14 | under Section 3-815.1 of the
Illinois Vehicle
Code. Beginning | ||||||
15 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
16 | State of motor vehicles of the second division: (i) with a | ||||||
17 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
18 | that are subject to the commercial distribution fee imposed | ||||||
19 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
20 | that are primarily used for commercial purposes. Through June | ||||||
21 | 30, 2005, this exemption applies to repair and replacement | ||||||
22 | parts added after the
initial
purchase of such a motor vehicle | ||||||
23 | if that motor vehicle is used in a manner that
would
qualify | ||||||
24 | for the rolling stock exemption otherwise provided for in this | ||||||
25 | Act. For purposes of this paragraph, "used for commercial | ||||||
26 | purposes" means the transportation of persons or property in |
| |||||||
| |||||||
1 | furtherance of any commercial or industrial enterprise whether | ||||||
2 | for-hire or not.
| ||||||
3 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
4 | common carrier by
rail, of tangible personal property which | ||||||
5 | belongs to such carrier for hire, and
as to which such carrier | ||||||
6 | receives the physical possession of the repaired,
| ||||||
7 | reconditioned or remodeled item of tangible personal property | ||||||
8 | in Illinois, and
which such carrier transports, or shares with | ||||||
9 | another common carrier in the
transportation of such property, | ||||||
10 | out of Illinois on a standard uniform bill of
lading showing | ||||||
11 | the person who repaired, reconditioned or remodeled the | ||||||
12 | property
as the shipper or consignor of such property to a | ||||||
13 | destination outside Illinois,
for use outside Illinois.
| ||||||
14 | (d-3) A sale or transfer of tangible personal property | ||||||
15 | which
is produced by the seller thereof on special order in | ||||||
16 | such a way as to have
made the applicable tax the Service | ||||||
17 | Occupation Tax or the Service Use Tax,
rather than the | ||||||
18 | Retailers' Occupation Tax or the Use Tax, for an interstate
| ||||||
19 | carrier by rail which receives the physical possession of such | ||||||
20 | property in
Illinois, and which transports such property, or | ||||||
21 | shares with another common
carrier in the transportation of | ||||||
22 | such property, out of Illinois on a standard
uniform bill of | ||||||
23 | lading showing the seller of the property as the shipper or
| ||||||
24 | consignor of such property to a destination outside Illinois, | ||||||
25 | for use outside
Illinois.
| ||||||
26 | (d-4) Until January 1, 1997, a sale, by a registered |
| |||||||
| |||||||
1 | serviceman paying tax
under this Act to the Department, of | ||||||
2 | special order printed materials delivered
outside Illinois and | ||||||
3 | which are not returned to this State, if delivery is made
by | ||||||
4 | the seller or agent of the seller, including an agent who | ||||||
5 | causes the product
to be delivered outside Illinois by a common | ||||||
6 | carrier or the U.S.
postal service.
| ||||||
7 | (e) A sale or transfer of machinery and equipment used | ||||||
8 | primarily in
the process of the manufacturing or assembling, | ||||||
9 | either in an existing, an
expanded or a new manufacturing | ||||||
10 | facility, of tangible personal property for
wholesale or retail | ||||||
11 | sale or lease, whether such sale or lease is made directly
by | ||||||
12 | the manufacturer or by some other person, whether the materials | ||||||
13 | used in the
process are owned by the manufacturer or some other | ||||||
14 | person, or whether such
sale or lease is made apart from or as | ||||||
15 | an incident to the seller's engaging in
a service occupation | ||||||
16 | and the applicable tax is a Service Occupation Tax or
Service | ||||||
17 | Use Tax, rather than Retailers' Occupation Tax or Use Tax. The | ||||||
18 | exemption provided by this paragraph (e) does not include | ||||||
19 | machinery and equipment used in (i) the generation of | ||||||
20 | electricity for wholesale or retail sale; (ii) the generation | ||||||
21 | or treatment of natural or artificial gas for wholesale or | ||||||
22 | retail sale that is delivered to customers through pipes, | ||||||
23 | pipelines, or mains; or (iii) the treatment of water for | ||||||
24 | wholesale or retail sale that is delivered to customers through | ||||||
25 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
26 | Act of the 98th General Assembly are declaratory of existing |
| |||||||
| |||||||
1 | law as to the meaning and scope of this exemption. The | ||||||
2 | exemption under this subsection (e) is exempt from the | ||||||
3 | provisions of Section 3-75.
| ||||||
4 | (f) Until July 1, 2003, the sale or transfer of | ||||||
5 | distillation
machinery
and equipment, sold as a
unit or kit and | ||||||
6 | assembled or installed by the retailer, which machinery
and | ||||||
7 | equipment is certified by the user to be used only for the | ||||||
8 | production
of ethyl alcohol that will be used for consumption | ||||||
9 | as motor fuel or as a
component of motor fuel for the personal | ||||||
10 | use of such user and not subject
to sale or resale.
| ||||||
11 | (g) At the election of any serviceman not required to be | ||||||
12 | otherwise
registered as a retailer under Section 2a of the | ||||||
13 | Retailers' Occupation Tax Act,
made for each fiscal year sales | ||||||
14 | of service in which the aggregate annual cost
price of tangible | ||||||
15 | personal property transferred as an incident to the sales of
| ||||||
16 | service is less than 35% (75% in the case of servicemen | ||||||
17 | transferring
prescription drugs or servicemen engaged in | ||||||
18 | graphic arts production) of the
aggregate annual total gross | ||||||
19 | receipts from all sales of service. The purchase
of such | ||||||
20 | tangible personal property by the serviceman shall be subject | ||||||
21 | to tax
under the Retailers' Occupation Tax Act and the Use Tax | ||||||
22 | Act.
However, if a
primary serviceman who has made the election | ||||||
23 | described in this paragraph
subcontracts service work to a | ||||||
24 | secondary serviceman who has also made the
election described | ||||||
25 | in this paragraph, the primary serviceman does not
incur a Use | ||||||
26 | Tax liability if the secondary serviceman (i) has paid or will |
| |||||||
| |||||||
1 | pay
Use
Tax on his or her cost price of any tangible personal | ||||||
2 | property transferred
to the primary serviceman and (ii) | ||||||
3 | certifies that fact in writing to the
primary serviceman.
| ||||||
4 | Tangible personal property transferred incident to the | ||||||
5 | completion of a
maintenance agreement is exempt from the tax | ||||||
6 | imposed pursuant to this Act.
| ||||||
7 | Exemption (e) also includes machinery and equipment used in | ||||||
8 | the
general maintenance or repair of such exempt machinery and | ||||||
9 | equipment or for
in-house manufacture of exempt machinery and | ||||||
10 | equipment.
On and after July 1, 2017, exemption (e) also
| ||||||
11 | includes production related tangible personal property, as
| ||||||
12 | defined in Section 2-45 of the Retailers' Occupation Tax Act. | ||||||
13 | On and after July 1, 2017, exemption (e) also
includes graphic | ||||||
14 | arts machinery and equipment, as
defined in paragraph (5) of | ||||||
15 | Section 3-5. The machinery and equipment exemption does not | ||||||
16 | include machinery and equipment used in (i) the generation of | ||||||
17 | electricity for wholesale or retail sale; (ii) the generation | ||||||
18 | or treatment of natural or artificial gas for wholesale or | ||||||
19 | retail sale that is delivered to customers through pipes, | ||||||
20 | pipelines, or mains; or (iii) the treatment of water for | ||||||
21 | wholesale or retail sale that is delivered to customers through | ||||||
22 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
23 | Act of the 98th General Assembly are declaratory of existing | ||||||
24 | law as to the meaning and scope of this exemption. For the | ||||||
25 | purposes of exemption (e), each of these terms shall have the | ||||||
26 | following
meanings: (1) "manufacturing process" shall mean the |
| |||||||
| |||||||
1 | production of any
article of tangible personal property, | ||||||
2 | whether such article is a
finished product or an article for | ||||||
3 | use in the process of manufacturing
or assembling a different | ||||||
4 | article of tangible personal property, by
procedures commonly | ||||||
5 | regarded as manufacturing, processing, fabricating,
or | ||||||
6 | refining which changes some existing material or materials into | ||||||
7 | a
material with a different form, use or name. In relation to a
| ||||||
8 | recognized integrated business composed of a series of | ||||||
9 | operations which
collectively constitute manufacturing, or | ||||||
10 | individually constitute
manufacturing operations, the | ||||||
11 | manufacturing process shall be deemed to
commence with the | ||||||
12 | first operation or stage of production in the series,
and shall | ||||||
13 | not be deemed to end until the completion of the final product
| ||||||
14 | in the last operation or stage of production in the series; and | ||||||
15 | further for
purposes of exemption (e), photoprocessing is | ||||||
16 | deemed to be a manufacturing
process of tangible personal | ||||||
17 | property for wholesale or retail sale;
(2) "assembling process" | ||||||
18 | shall mean the production of any article of
tangible personal | ||||||
19 | property, whether such article is a finished product
or an | ||||||
20 | article for use in the process of manufacturing or assembling a
| ||||||
21 | different article of tangible personal property, by the | ||||||
22 | combination of
existing materials in a manner commonly regarded | ||||||
23 | as assembling which
results in a material of a different form, | ||||||
24 | use or name; (3) "machinery"
shall mean major mechanical | ||||||
25 | machines or major components of such machines
contributing to a | ||||||
26 | manufacturing or assembling process; and (4) "equipment"
shall |
| |||||||
| |||||||
1 | include any independent device or tool separate from any | ||||||
2 | machinery but
essential to an integrated manufacturing or | ||||||
3 | assembly process; including
computers used primarily in a | ||||||
4 | manufacturer's computer
assisted design, computer assisted | ||||||
5 | manufacturing (CAD/CAM) system; or any
subunit or assembly | ||||||
6 | comprising a component of any machinery or auxiliary,
adjunct | ||||||
7 | or attachment parts of machinery, such as tools, dies, jigs, | ||||||
8 | fixtures,
patterns and molds; or any parts which require | ||||||
9 | periodic replacement in the
course of normal operation; but | ||||||
10 | shall not include hand tools. Equipment
includes chemicals or | ||||||
11 | chemicals acting as catalysts but only if the chemicals
or | ||||||
12 | chemicals acting as catalysts effect a direct and immediate | ||||||
13 | change upon a
product being manufactured or assembled for | ||||||
14 | wholesale or retail sale or lease.
The purchaser of such | ||||||
15 | machinery and equipment
who has an active resale registration | ||||||
16 | number shall furnish such number to
the seller at the time of | ||||||
17 | purchase. The purchaser of such machinery and
equipment and | ||||||
18 | tools without an active resale registration number shall | ||||||
19 | furnish
to the seller a certificate of exemption for each | ||||||
20 | transaction stating facts
establishing the exemption for that | ||||||
21 | transaction, which certificate shall
be available to the | ||||||
22 | Department for inspection or audit.
| ||||||
23 | Except as provided in Section 2d of this Act, the rolling | ||||||
24 | stock exemption
applies to rolling
stock
used by an interstate
| ||||||
25 | carrier for hire, even just between points in Illinois, if such | ||||||
26 | rolling
stock transports, for hire, persons whose journeys or |
| |||||||
| |||||||
1 | property whose
shipments originate or terminate outside | ||||||
2 | Illinois.
| ||||||
3 | Any informal rulings, opinions or letters issued by the | ||||||
4 | Department in
response to an inquiry or request for any opinion | ||||||
5 | from any person
regarding the coverage and applicability of | ||||||
6 | exemption (e) to specific
devices shall be published, | ||||||
7 | maintained as a public record, and made
available for public | ||||||
8 | inspection and copying. If the informal ruling,
opinion or | ||||||
9 | letter contains trade secrets or other confidential
| ||||||
10 | information, where possible the Department shall delete such | ||||||
11 | information
prior to publication. Whenever such informal | ||||||
12 | rulings, opinions, or
letters contain any policy of general | ||||||
13 | applicability, the Department
shall formulate and adopt such | ||||||
14 | policy as a rule in accordance with the
provisions of the | ||||||
15 | Illinois Administrative Procedure Act.
| ||||||
16 | On and after July 1, 1987, no entity otherwise eligible | ||||||
17 | under exemption
(c) of this Section shall make tax free | ||||||
18 | purchases unless it has an active
exemption identification | ||||||
19 | number issued by the Department.
| ||||||
20 | "Serviceman" means any person who is engaged in the | ||||||
21 | occupation of
making sales of service.
| ||||||
22 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
23 | Retailers'
Occupation Tax Act.
| ||||||
24 | "Supplier" means any person who makes sales of tangible | ||||||
25 | personal
property to servicemen for the purpose of resale as an | ||||||
26 | incident to a
sale of service.
|
| |||||||
| |||||||
1 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
2 | (35 ILCS 115/3-5)
| ||||||
3 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
4 | property is
exempt from the tax imposed by this Act:
| ||||||
5 | (1) Personal property sold by a corporation, society, | ||||||
6 | association,
foundation, institution, or organization, other | ||||||
7 | than a limited liability
company, that is organized and | ||||||
8 | operated as a not-for-profit service enterprise
for the benefit | ||||||
9 | of persons 65 years of age or older if the personal property
| ||||||
10 | was not purchased by the enterprise for the purpose of resale | ||||||
11 | by the
enterprise.
| ||||||
12 | (2) Personal property purchased by a not-for-profit | ||||||
13 | Illinois county fair
association for use in conducting, | ||||||
14 | operating, or promoting the county fair.
| ||||||
15 | (3) Personal property purchased by any not-for-profit
arts | ||||||
16 | or cultural organization that establishes, by proof required by | ||||||
17 | the
Department by
rule, that it has received an exemption under | ||||||
18 | Section 501(c)(3) of the
Internal Revenue Code and that is | ||||||
19 | organized and operated primarily for the
presentation
or | ||||||
20 | support of arts or cultural programming, activities, or | ||||||
21 | services. These
organizations include, but are not limited to, | ||||||
22 | music and dramatic arts
organizations such as symphony | ||||||
23 | orchestras and theatrical groups, arts and
cultural service | ||||||
24 | organizations, local arts councils, visual arts organizations,
| ||||||
25 | and media arts organizations.
On and after the effective date |
| |||||||
| |||||||
1 | of this amendatory Act of the 92nd General
Assembly, however, | ||||||
2 | an entity otherwise eligible for this exemption shall not
make | ||||||
3 | tax-free purchases unless it has an active identification | ||||||
4 | number issued by
the Department.
| ||||||
5 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
6 | coinage
issued by the State of Illinois, the government of the | ||||||
7 | United States of
America, or the government of any foreign | ||||||
8 | country, and bullion.
| ||||||
9 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
10 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
11 | equipment, including
repair and
replacement parts, both new and | ||||||
12 | used, and including that manufactured on
special order or | ||||||
13 | purchased for lease, certified by the purchaser to be used
| ||||||
14 | primarily for graphic arts production.
Equipment includes | ||||||
15 | chemicals or chemicals acting as catalysts but only if
the
| ||||||
16 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
17 | immediate change
upon a graphic arts product. Beginning on July | ||||||
18 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
19 | the manufacturing and assembling machinery and equipment | ||||||
20 | exemption under Section 2 of this Act.
| ||||||
21 | (6) Personal property sold by a teacher-sponsored student | ||||||
22 | organization
affiliated with an elementary or secondary school | ||||||
23 | located in Illinois.
| ||||||
24 | (7) Farm machinery and equipment, both new and used, | ||||||
25 | including that
manufactured on special order, certified by the | ||||||
26 | purchaser to be used
primarily for production agriculture or |
| |||||||
| |||||||
1 | State or federal agricultural
programs, including individual | ||||||
2 | replacement parts for the machinery and
equipment, including | ||||||
3 | machinery and equipment purchased for lease,
and including | ||||||
4 | implements of husbandry defined in Section 1-130 of
the | ||||||
5 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
6 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
7 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
8 | but
excluding other motor vehicles required to be registered | ||||||
9 | under the Illinois
Vehicle
Code.
Horticultural polyhouses or | ||||||
10 | hoop houses used for propagating, growing, or
overwintering | ||||||
11 | plants shall be considered farm machinery and equipment under
| ||||||
12 | this item (7).
Agricultural chemical tender tanks and dry boxes | ||||||
13 | shall include units sold
separately from a motor vehicle | ||||||
14 | required to be licensed and units sold mounted
on a motor | ||||||
15 | vehicle required to be licensed if the selling price of the | ||||||
16 | tender
is separately stated.
| ||||||
17 | Farm machinery and equipment shall include precision | ||||||
18 | farming equipment
that is
installed or purchased to be | ||||||
19 | installed on farm machinery and equipment
including, but not | ||||||
20 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
21 | or spreaders.
Precision farming equipment includes, but is not | ||||||
22 | limited to,
soil testing sensors, computers, monitors, | ||||||
23 | software, global positioning
and mapping systems, and other | ||||||
24 | such equipment.
| ||||||
25 | Farm machinery and equipment also includes computers, | ||||||
26 | sensors, software, and
related equipment used primarily in the
|
| |||||||
| |||||||
1 | computer-assisted operation of production agriculture | ||||||
2 | facilities, equipment,
and activities such as, but
not limited | ||||||
3 | to,
the collection, monitoring, and correlation of
animal and | ||||||
4 | crop data for the purpose of
formulating animal diets and | ||||||
5 | agricultural chemicals. This item (7) is exempt
from the | ||||||
6 | provisions of
Section 3-55.
| ||||||
7 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
8 | to or used by an air common
carrier, certified by the carrier | ||||||
9 | to be used for consumption, shipment,
or storage in the conduct | ||||||
10 | of its business as an air common carrier, for
a flight destined | ||||||
11 | for or returning from a location or locations
outside the | ||||||
12 | United States without regard to previous or subsequent domestic
| ||||||
13 | stopovers.
| ||||||
14 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
15 | or used by an air carrier, certified by the carrier to be used | ||||||
16 | for consumption, shipment, or storage in the conduct of its | ||||||
17 | business as an air common carrier, for a flight that (i) is | ||||||
18 | engaged in foreign trade or is engaged in trade between the | ||||||
19 | United States and any of its possessions and (ii) transports at | ||||||
20 | least one individual or package for hire from the city of | ||||||
21 | origination to the city of final destination on the same | ||||||
22 | aircraft, without regard to a change in the flight number of | ||||||
23 | that aircraft. | ||||||
24 | (9) Proceeds of mandatory service charges separately
| ||||||
25 | stated on customers' bills for the purchase and consumption of | ||||||
26 | food and
beverages, to the extent that the proceeds of the |
| |||||||
| |||||||
1 | service charge are in fact
turned over as tips or as a | ||||||
2 | substitute for tips to the employees who
participate directly | ||||||
3 | in preparing, serving, hosting or cleaning up the
food or | ||||||
4 | beverage function with respect to which the service charge is | ||||||
5 | imposed.
| ||||||
6 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
7 | and production
equipment,
including (i) rigs and parts of rigs, | ||||||
8 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
9 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
10 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
11 | individual replacement part for oil field exploration,
| ||||||
12 | drilling, and production equipment, and (vi) machinery and | ||||||
13 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
14 | required to be registered under the Illinois
Vehicle Code.
| ||||||
15 | (11) Photoprocessing machinery and equipment, including | ||||||
16 | repair and
replacement parts, both new and used, including that | ||||||
17 | manufactured on
special order, certified by the purchaser to be | ||||||
18 | used primarily for
photoprocessing, and including | ||||||
19 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
20 | (12) Coal and aggregate exploration, mining, off-highway | ||||||
21 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
22 | including
replacement parts and equipment, and including
| ||||||
23 | equipment
purchased for lease, but excluding motor vehicles | ||||||
24 | required to be registered
under the Illinois Vehicle Code. The | ||||||
25 | changes made to this Section by Public Act 97-767 apply on and | ||||||
26 | after July 1, 2003, but no claim for credit or refund is |
| |||||||
| |||||||
1 | allowed on or after August 16, 2013 (the effective date of | ||||||
2 | Public Act 98-456)
for such taxes paid during the period | ||||||
3 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
4 | effective date of Public Act 98-456).
| ||||||
5 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
6 | food for human consumption that is to be consumed off the | ||||||
7 | premises
where it is sold (other than alcoholic beverages, soft | ||||||
8 | drinks and food that
has been prepared for immediate | ||||||
9 | consumption) and prescription and
non-prescription medicines, | ||||||
10 | drugs, medical appliances, and insulin, urine
testing | ||||||
11 | materials, syringes, and needles used by diabetics, for human | ||||||
12 | use,
when purchased for use by a person receiving medical | ||||||
13 | assistance under
Article V of the Illinois Public Aid Code who | ||||||
14 | resides in a licensed
long-term care facility, as defined in | ||||||
15 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
16 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
17 | Specialized Mental Health Rehabilitation Act of 2013.
| ||||||
18 | (14) Semen used for artificial insemination of livestock | ||||||
19 | for direct
agricultural production.
| ||||||
20 | (15) Horses, or interests in horses, registered with and | ||||||
21 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
22 | Registry of America, Appaloosa Horse Club, American Quarter
| ||||||
23 | Horse Association, United States
Trotting Association, or | ||||||
24 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
25 | racing for prizes. This item (15) is exempt from the provisions | ||||||
26 | of Section 3-55, and the exemption provided for under this item |
| |||||||
| |||||||
1 | (15) applies for all periods beginning May 30, 1995, but no | ||||||
2 | claim for credit or refund is allowed on or after January 1, | ||||||
3 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
4 | paid during the period beginning May 30, 2000 and ending on | ||||||
5 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
6 | (16) Computers and communications equipment utilized for | ||||||
7 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
8 | analysis, or treatment of hospital patients sold to a lessor | ||||||
9 | who leases the
equipment, under a lease of one year or longer | ||||||
10 | executed or in effect at the
time of the purchase, to a
| ||||||
11 | hospital
that has been issued an active tax exemption | ||||||
12 | identification number by the
Department under Section 1g of the | ||||||
13 | Retailers' Occupation Tax Act.
| ||||||
14 | (17) Personal property sold to a lessor who leases the
| ||||||
15 | property, under a
lease of one year or longer executed or in | ||||||
16 | effect at the time of the purchase,
to a governmental body
that | ||||||
17 | has been issued an active tax exemption identification number | ||||||
18 | by the
Department under Section 1g of the Retailers' Occupation | ||||||
19 | Tax Act.
| ||||||
20 | (18) Beginning with taxable years ending on or after | ||||||
21 | December
31, 1995
and
ending with taxable years ending on or | ||||||
22 | before December 31, 2004,
personal property that is
donated for | ||||||
23 | disaster relief to be used in a State or federally declared
| ||||||
24 | disaster area in Illinois or bordering Illinois by a | ||||||
25 | manufacturer or retailer
that is registered in this State to a | ||||||
26 | corporation, society, association,
foundation, or institution |
| |||||||
| |||||||
1 | that has been issued a sales tax exemption
identification | ||||||
2 | number by the Department that assists victims of the disaster
| ||||||
3 | who reside within the declared disaster area.
| ||||||
4 | (19) Beginning with taxable years ending on or after | ||||||
5 | December
31, 1995 and
ending with taxable years ending on or | ||||||
6 | before December 31, 2004, personal
property that is used in the | ||||||
7 | performance of infrastructure repairs in this
State, including | ||||||
8 | but not limited to municipal roads and streets, access roads,
| ||||||
9 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
10 | line extensions,
water distribution and purification | ||||||
11 | facilities, storm water drainage and
retention facilities, and | ||||||
12 | sewage treatment facilities, resulting from a State
or | ||||||
13 | federally declared disaster in Illinois or bordering Illinois | ||||||
14 | when such
repairs are initiated on facilities located in the | ||||||
15 | declared disaster area
within 6 months after the disaster.
| ||||||
16 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
17 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
18 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
19 | provisions
of
Section 3-55.
| ||||||
20 | (21) A motor vehicle, as that term is defined in Section | ||||||
21 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
22 | corporation, limited liability
company, society, association, | ||||||
23 | foundation, or institution that is determined by
the Department | ||||||
24 | to be organized and operated exclusively for educational
| ||||||
25 | purposes. For purposes of this exemption, "a corporation, | ||||||
26 | limited liability
company, society, association, foundation, |
| |||||||
| |||||||
1 | or institution organized and
operated
exclusively for | ||||||
2 | educational purposes" means all tax-supported public schools,
| ||||||
3 | private schools that offer systematic instruction in useful | ||||||
4 | branches of
learning by methods common to public schools and | ||||||
5 | that compare favorably in
their scope and intensity with the | ||||||
6 | course of study presented in tax-supported
schools, and | ||||||
7 | vocational or technical schools or institutes organized and
| ||||||
8 | operated exclusively to provide a course of study of not less | ||||||
9 | than 6 weeks
duration and designed to prepare individuals to | ||||||
10 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
11 | industrial, business, or commercial
occupation.
| ||||||
12 | (22) Beginning January 1, 2000, personal property, | ||||||
13 | including
food,
purchased through fundraising
events for the | ||||||
14 | benefit of
a public or private elementary or
secondary school, | ||||||
15 | a group of those schools, or one or more school
districts if | ||||||
16 | the events are
sponsored by an entity recognized by the school | ||||||
17 | district that consists
primarily of volunteers and includes
| ||||||
18 | parents and teachers of the school children. This paragraph | ||||||
19 | does not apply
to fundraising
events (i) for the benefit of | ||||||
20 | private home instruction or (ii)
for which the fundraising | ||||||
21 | entity purchases the personal property sold at
the events from | ||||||
22 | another individual or entity that sold the property for the
| ||||||
23 | purpose of resale by the fundraising entity and that
profits | ||||||
24 | from the sale to the
fundraising entity. This paragraph is | ||||||
25 | exempt
from the provisions
of Section 3-55.
| ||||||
26 | (23) Beginning January 1, 2000
and through December 31, |
| |||||||
| |||||||
1 | 2001, new or used automatic vending
machines that prepare and | ||||||
2 | serve hot food and beverages, including coffee, soup,
and
other | ||||||
3 | items, and replacement parts for these machines.
Beginning | ||||||
4 | January 1,
2002 and through June 30, 2003, machines and parts | ||||||
5 | for
machines used in commercial, coin-operated amusement
and | ||||||
6 | vending business if a use or occupation tax is paid on the | ||||||
7 | gross receipts
derived from
the use of the commercial, | ||||||
8 | coin-operated amusement and vending machines.
This paragraph | ||||||
9 | is exempt from the provisions of Section 3-55.
| ||||||
10 | (24) Beginning
on the effective date of this amendatory Act | ||||||
11 | of the 92nd General Assembly,
computers and communications | ||||||
12 | equipment
utilized for any hospital purpose and equipment used | ||||||
13 | in the diagnosis,
analysis, or treatment of hospital patients | ||||||
14 | sold to a lessor who leases the
equipment, under a lease of one | ||||||
15 | year or longer executed or in effect at the
time of the | ||||||
16 | purchase, to a hospital that has been issued an active tax
| ||||||
17 | exemption identification number by the Department under | ||||||
18 | Section 1g of the
Retailers' Occupation Tax Act. This paragraph | ||||||
19 | is exempt from the provisions of
Section 3-55.
| ||||||
20 | (25) Beginning
on the effective date of this amendatory Act | ||||||
21 | of the 92nd General Assembly,
personal property sold to a | ||||||
22 | lessor who
leases the property, under a lease of one year or | ||||||
23 | longer executed or in effect
at the time of the purchase, to a | ||||||
24 | governmental body that has been issued an
active tax exemption | ||||||
25 | identification number by the Department under Section 1g
of the | ||||||
26 | Retailers' Occupation Tax Act. This paragraph is exempt from |
| |||||||
| |||||||
1 | the
provisions of Section 3-55.
| ||||||
2 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
3 | 2016, tangible personal property
purchased
from an Illinois | ||||||
4 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
5 | activities in Illinois who will, upon receipt of the property | ||||||
6 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
7 | the purpose of subsequently
transporting it outside this State | ||||||
8 | for use or consumption thereafter solely
outside this State or | ||||||
9 | (ii) for the purpose of being processed, fabricated, or
| ||||||
10 | manufactured into, attached to, or incorporated into other | ||||||
11 | tangible personal
property to be transported outside this State | ||||||
12 | and thereafter used or consumed
solely outside this State. The | ||||||
13 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
14 | accordance with the Illinois Administrative Procedure Act, | ||||||
15 | issue a
permit to any taxpayer in good standing with the | ||||||
16 | Department who is eligible for
the exemption under this | ||||||
17 | paragraph (26). The permit issued under
this paragraph (26) | ||||||
18 | shall authorize the holder, to the extent and
in the manner | ||||||
19 | specified in the rules adopted under this Act, to purchase
| ||||||
20 | tangible personal property from a retailer exempt from the | ||||||
21 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
22 | necessary books and records to
substantiate the use and | ||||||
23 | consumption of all such tangible personal property
outside of | ||||||
24 | the State of Illinois.
| ||||||
25 | (27) Beginning January 1, 2008, tangible personal property | ||||||
26 | used in the construction or maintenance of a community water |
| |||||||
| |||||||
1 | supply, as defined under Section 3.145 of the Environmental | ||||||
2 | Protection Act, that is operated by a not-for-profit | ||||||
3 | corporation that holds a valid water supply permit issued under | ||||||
4 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
5 | exempt from the provisions of Section 3-55.
| ||||||
6 | (28) Tangible personal property sold to a | ||||||
7 | public-facilities corporation, as described in Section | ||||||
8 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
9 | constructing or furnishing a municipal convention hall, but | ||||||
10 | only if the legal title to the municipal convention hall is | ||||||
11 | transferred to the municipality without any further | ||||||
12 | consideration by or on behalf of the municipality at the time | ||||||
13 | of the completion of the municipal convention hall or upon the | ||||||
14 | retirement or redemption of any bonds or other debt instruments | ||||||
15 | issued by the public-facilities corporation in connection with | ||||||
16 | the development of the municipal convention hall. This | ||||||
17 | exemption includes existing public-facilities corporations as | ||||||
18 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
19 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
20 | (29) Beginning January 1, 2010, materials, parts, | ||||||
21 | equipment, components, and furnishings incorporated into or | ||||||
22 | upon an aircraft as part of the modification, refurbishment, | ||||||
23 | completion, replacement, repair, or maintenance of the | ||||||
24 | aircraft. This exemption includes consumable supplies used in | ||||||
25 | the modification, refurbishment, completion, replacement, | ||||||
26 | repair, and maintenance of aircraft, but excludes any |
| |||||||
| |||||||
1 | materials, parts, equipment, components, and consumable | ||||||
2 | supplies used in the modification, replacement, repair, and | ||||||
3 | maintenance of aircraft engines or power plants, whether such | ||||||
4 | engines or power plants are installed or uninstalled upon any | ||||||
5 | such aircraft. "Consumable supplies" include, but are not | ||||||
6 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
7 | lubricants, cleaning solution, latex gloves, and protective | ||||||
8 | films. This exemption applies only to the transfer of | ||||||
9 | qualifying tangible personal property incident to the | ||||||
10 | modification, refurbishment, completion, replacement, repair, | ||||||
11 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
12 | Agency Certificate and are empowered to operate an approved | ||||||
13 | repair station by the Federal Aviation Administration, (ii) | ||||||
14 | have a Class IV Rating, and (iii) conduct operations in | ||||||
15 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
16 | The exemption does not include aircraft operated by a | ||||||
17 | commercial air carrier providing scheduled passenger air | ||||||
18 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
19 | of the Federal Aviation Regulations. The changes made to this | ||||||
20 | paragraph (29) by Public Act 98-534 are declarative of existing | ||||||
21 | law. | ||||||
22 | (30) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
23 | and menstrual cups. | ||||||
24 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
25 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-756, eff. | ||||||
26 | 7-16-14; 99-180, eff. 7-29-15; 99-855, eff. 8-19-16.)
|
| |||||||
| |||||||
1 | Section 30-35. The Retailers' Occupation Tax Act is amended | ||||||
2 | by changing Sections 1, 2, 2-5, 2-10, 2-10.5, 2-12, 2-45, 2-55, | ||||||
3 | 2a, 2b, 2c, 3, 7, and 13 and by adding Section 1b as follows:
| ||||||
4 | (35 ILCS 120/1) (from Ch. 120, par. 440)
| ||||||
5 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
6 | the
ownership of or title to
tangible personal property to a | ||||||
7 | purchaser or the performance of a taxable service for a | ||||||
8 | purchaser , for the purpose of use or
consumption, and not for | ||||||
9 | the purpose of resale in any form as tangible
personal property | ||||||
10 | or taxable service to the extent not first subjected to a use | ||||||
11 | for which it
was purchased, for a valuable consideration: | ||||||
12 | Provided that the property
or service purchased is deemed to be | ||||||
13 | purchased for the purpose of resale, despite
first being used, | ||||||
14 | to the extent to which it is resold as an ingredient of
an | ||||||
15 | intentionally produced product or byproduct of manufacturing | ||||||
16 | or otherwise transferred to the purchaser of tangible personal | ||||||
17 | property or taxable service . For this
purpose, slag produced as | ||||||
18 | an incident to manufacturing pig iron or steel
and sold is | ||||||
19 | considered to be an intentionally produced byproduct of
| ||||||
20 | manufacturing. Transactions whereby the possession of the | ||||||
21 | property is
transferred but the seller retains the title as | ||||||
22 | security for payment of the
selling price shall be deemed to be | ||||||
23 | sales.
| ||||||
24 | "Sale at retail" shall be construed to include any transfer |
| |||||||
| |||||||
1 | of the
ownership of or title to tangible personal property to a | ||||||
2 | purchaser or the performance of a taxable service for a | ||||||
3 | purchaser , for use
or consumption by any other person to whom | ||||||
4 | such purchaser may transfer the
tangible personal property or | ||||||
5 | taxable service without a valuable consideration, and to | ||||||
6 | include
any transfer, whether made for or without a valuable | ||||||
7 | consideration, for
resale in any form as tangible personal | ||||||
8 | property or taxable service unless made in compliance
with | ||||||
9 | Section 2c of this Act.
| ||||||
10 | Sales of tangible personal property, which property, to the | ||||||
11 | extent not
first subjected to a use for which it was purchased, | ||||||
12 | as an ingredient or
constituent, goes into and forms a part of | ||||||
13 | tangible personal property
subsequently the subject of a "Sale | ||||||
14 | at retail", or transferred to a purchaser of a taxable service | ||||||
15 | that is a "sale at retail" are not sales at retail as
defined | ||||||
16 | in this Act: Provided that the property purchased is deemed to | ||||||
17 | be
purchased for the purpose of resale, despite first being | ||||||
18 | used, to the
extent to which it is resold as an ingredient of | ||||||
19 | an intentionally produced
product or byproduct of | ||||||
20 | manufacturing.
| ||||||
21 | "Sale at retail" shall be construed to include any Illinois | ||||||
22 | florist's
sales transaction in which the purchase order is | ||||||
23 | received in Illinois by a
florist and the sale is for use or | ||||||
24 | consumption, but the Illinois florist
has a florist in another | ||||||
25 | state deliver the property to the purchaser or the
purchaser's | ||||||
26 | donee in such other state.
|
| |||||||
| |||||||
1 | Nonreusable tangible personal property that is used by | ||||||
2 | persons engaged in
the business of operating a restaurant, | ||||||
3 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
4 | transferred to customers in the ordinary course of business
as | ||||||
5 | part of the sale of food or beverages and is used to deliver, | ||||||
6 | package, or
consume food or beverages, regardless of where | ||||||
7 | consumption of the food or
beverages occurs. Examples of those | ||||||
8 | items include, but are not limited to
nonreusable, paper and | ||||||
9 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
10 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
11 | and
wrapping or packaging
materials that are transferred to | ||||||
12 | customers as part of the sale of food or
beverages in the | ||||||
13 | ordinary course of business.
| ||||||
14 | The purchase, employment and transfer of such tangible | ||||||
15 | personal property
as newsprint and ink for the primary purpose | ||||||
16 | of conveying news (with or
without other information) is not a | ||||||
17 | purchase, use or sale of tangible
personal property.
| ||||||
18 | A person whose activities are organized and conducted | ||||||
19 | primarily as a
not-for-profit service enterprise, and who | ||||||
20 | engages in selling tangible
personal property or taxable | ||||||
21 | service at retail (whether to the public or merely to members | ||||||
22 | and
their guests) is engaged in the business of selling | ||||||
23 | tangible personal
property or taxable service at retail with | ||||||
24 | respect to such transactions, excepting only a
person organized | ||||||
25 | and operated exclusively for charitable, religious or
| ||||||
26 | educational purposes either (1), to the extent of sales by such |
| |||||||
| |||||||
1 | person to
its members, students, patients or inmates of | ||||||
2 | tangible personal property or taxable service to
be used | ||||||
3 | primarily for the purposes of such person, or (2), to the | ||||||
4 | extent of
sales by such person of tangible personal property or | ||||||
5 | taxable service which is not sold or
offered for sale by | ||||||
6 | persons organized for profit. The selling of school
books and | ||||||
7 | school supplies by schools at retail to students is not
| ||||||
8 | "primarily for the purposes of" the school which does such | ||||||
9 | selling. The
provisions of this paragraph shall not apply to | ||||||
10 | nor subject to taxation
occasional dinners, socials or similar | ||||||
11 | activities of a person organized and
operated exclusively for | ||||||
12 | charitable, religious or educational purposes,
whether or not | ||||||
13 | such activities are open to the public.
| ||||||
14 | A person who is the recipient of a grant or contract under | ||||||
15 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
16 | serves meals to
participants in the federal Nutrition Program | ||||||
17 | for the Elderly in return for
contributions established in | ||||||
18 | amount by the individual participant pursuant
to a schedule of | ||||||
19 | suggested fees as provided for in the federal Act is not
| ||||||
20 | engaged in the business of selling tangible personal property | ||||||
21 | or taxable service at retail
with respect to such transactions.
| ||||||
22 | "Purchaser" means anyone who, through a sale at retail, | ||||||
23 | acquires the
ownership of or title to tangible personal | ||||||
24 | property or taxable service for a valuable
consideration.
| ||||||
25 | "Reseller of motor fuel" means any person engaged in the | ||||||
26 | business of selling
or delivering or transferring title of |
| |||||||
| |||||||
1 | motor fuel to another person
other than for use or consumption.
| ||||||
2 | No person shall act as a reseller of motor fuel within this | ||||||
3 | State without
first being registered as a reseller pursuant to | ||||||
4 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
5 | "Selling price" or the "amount of sale" means the | ||||||
6 | consideration for a
sale valued in money whether received in | ||||||
7 | money or otherwise, including
cash, credits, property, other | ||||||
8 | than as hereinafter provided, and services,
but not including | ||||||
9 | the value of or credit given for traded-in tangible
personal | ||||||
10 | property where the item that is traded-in is of like kind and
| ||||||
11 | character as that which is being sold, and shall be determined | ||||||
12 | without any
deduction on account of the cost of the property | ||||||
13 | sold, the cost of
materials used, labor or service cost or any | ||||||
14 | other expense whatsoever, but
does not include charges that are | ||||||
15 | added to prices by sellers on account of
the seller's tax | ||||||
16 | liability under this Act, or on account of the seller's
duty to | ||||||
17 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
18 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
19 | cigarette tax imposed by a home rule unit, on account of the | ||||||
20 | seller's tax liability under any local occupation tax | ||||||
21 | administered by the Department, or, except as otherwise | ||||||
22 | provided with respect to any cigarette tax imposed by a home | ||||||
23 | rule unit on account of the seller's duty to collect, from the | ||||||
24 | purchasers, the tax that is imposed under any local use tax | ||||||
25 | administered by the Department.
Effective December 1, 1985, | ||||||
26 | "selling price" shall include charges that
are added to prices |
| |||||||
| |||||||
1 | by sellers on account of the seller's
tax liability under the | ||||||
2 | Cigarette Tax Act, on account of the sellers'
duty to collect, | ||||||
3 | from the purchaser, the tax imposed under the Cigarette
Use Tax | ||||||
4 | Act, and on account of the seller's duty to collect, from the
| ||||||
5 | purchaser, any cigarette tax imposed by a home rule unit.
| ||||||
6 | Notwithstanding any law to the contrary, for any motor | ||||||
7 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
8 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
9 | the vehicle for a defined period that is longer than one year | ||||||
10 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
11 | a self-contained motor vehicle designed or permanently | ||||||
12 | converted to provide living quarters for recreational, | ||||||
13 | camping, or travel use, with direct walk through access to the | ||||||
14 | living quarters from the driver's seat; (B) is of the van | ||||||
15 | configuration designed for the transportation of not less than | ||||||
16 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
17 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
18 | of the first division, "selling price" or "amount of sale" | ||||||
19 | means the consideration received by the lessor pursuant to the | ||||||
20 | lease contract, including amounts due at lease signing and all | ||||||
21 | monthly or other regular payments charged over the term of the | ||||||
22 | lease. Also included in the selling price is any amount | ||||||
23 | received by the lessor from the lessee for the leased vehicle | ||||||
24 | that is not calculated at the time the lease is executed, | ||||||
25 | including, but not limited to, excess mileage charges and | ||||||
26 | charges for excess wear and tear. For sales that occur in |
| |||||||
| |||||||
1 | Illinois, with respect to any amount received by the lessor | ||||||
2 | from the lessee for the leased vehicle that is not calculated | ||||||
3 | at the time the lease is executed, the lessor who purchased the | ||||||
4 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
5 | on those amounts, and the retailer who makes the retail sale of | ||||||
6 | the motor vehicle to the lessor is not required to collect the | ||||||
7 | tax imposed by the Use Tax Act or to pay the tax imposed by this | ||||||
8 | Act on those amounts. However, the lessor who purchased the | ||||||
9 | motor vehicle assumes the liability for reporting and paying | ||||||
10 | the tax on those amounts directly to the Department in the same | ||||||
11 | form (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
12 | occupation taxes, if applicable) in which the retailer would | ||||||
13 | have reported and paid such tax if the retailer had accounted | ||||||
14 | for the tax to the Department. For amounts received by the | ||||||
15 | lessor from the lessee that are not calculated at the time the | ||||||
16 | lease is executed, the lessor must file the return and pay the | ||||||
17 | tax to the Department by the due date otherwise required by | ||||||
18 | this Act for returns other than transaction returns. If the | ||||||
19 | retailer is entitled under this Act to a discount for | ||||||
20 | collecting and remitting the tax imposed under this Act to the | ||||||
21 | Department with respect to the sale of the motor vehicle to the | ||||||
22 | lessor, then the right to the discount provided in this Act | ||||||
23 | shall be transferred to the lessor with respect to the tax paid | ||||||
24 | by the lessor for any amount received by the lessor from the | ||||||
25 | lessee for the leased vehicle that is not calculated at the | ||||||
26 | time the lease is executed; provided that the discount is only |
| |||||||
| |||||||
1 | allowed if the return is timely filed and for amounts timely | ||||||
2 | paid. The "selling price" of a motor vehicle that is sold on or | ||||||
3 | after January 1, 2015 for the purpose of leasing for a defined | ||||||
4 | period of longer than one year shall not be reduced by the | ||||||
5 | value of or credit given for traded-in tangible personal | ||||||
6 | property owned by the lessor, nor shall it be reduced by the | ||||||
7 | value of or credit given for traded-in tangible personal | ||||||
8 | property owned by the lessee, regardless of whether the | ||||||
9 | trade-in value thereof is assigned by the lessee to the lessor. | ||||||
10 | In the case of a motor vehicle that is sold for the purpose of | ||||||
11 | leasing for a defined period of longer than one year, the sale | ||||||
12 | occurs at the time of the delivery of the vehicle, regardless | ||||||
13 | of the due date of any lease payments. A lessor who incurs a | ||||||
14 | Retailers' Occupation Tax liability on the sale of a motor | ||||||
15 | vehicle coming off lease may not take a credit against that | ||||||
16 | liability for the Use Tax the lessor paid upon the purchase of | ||||||
17 | the motor vehicle (or for any tax the lessor paid with respect | ||||||
18 | to any amount received by the lessor from the lessee for the | ||||||
19 | leased vehicle that was not calculated at the time the lease | ||||||
20 | was executed) if the selling price of the motor vehicle at the | ||||||
21 | time of purchase was calculated using the definition of | ||||||
22 | "selling price" as defined in this paragraph.
Notwithstanding | ||||||
23 | any other provision of this Act to the contrary, lessors shall | ||||||
24 | file all returns and make all payments required under this | ||||||
25 | paragraph to the Department by electronic means in the manner | ||||||
26 | and form as required by the Department. This paragraph does not |
| |||||||
| |||||||
1 | apply to leases of motor vehicles for which, at the time the | ||||||
2 | lease is entered into, the term of the lease is not a defined | ||||||
3 | period, including leases with a defined initial period with the | ||||||
4 | option to continue the lease on a month-to-month or other basis | ||||||
5 | beyond the initial defined period. | ||||||
6 | The phrase "like kind and character" shall be liberally | ||||||
7 | construed
(including but not limited to any form of motor | ||||||
8 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
9 | agricultural implement for any other
kind of farm or | ||||||
10 | agricultural implement), while not including a kind of item
| ||||||
11 | which, if sold at retail by that retailer, would be exempt from | ||||||
12 | retailers'
occupation tax and use tax as an isolated or | ||||||
13 | occasional sale.
| ||||||
14 | "Gross receipts" from the sales of tangible personal | ||||||
15 | property or taxable service at retail
means the total selling | ||||||
16 | price or the amount of such sales, as hereinbefore
defined. In | ||||||
17 | the case of charge and time sales, the amount thereof shall be
| ||||||
18 | included only as and when payments are received by the seller.
| ||||||
19 | Receipts or other consideration derived by a seller from
the | ||||||
20 | sale, transfer or assignment of accounts receivable to a wholly | ||||||
21 | owned
subsidiary will not be deemed payments prior to the time | ||||||
22 | the purchaser
makes payment on such accounts.
| ||||||
23 | "Department" means the Department of Revenue.
| ||||||
24 | "Person" means any natural individual, firm, partnership, | ||||||
25 | association,
joint stock company, joint adventure, public or | ||||||
26 | private corporation, limited
liability company, or a receiver, |
| |||||||
| |||||||
1 | executor, trustee, guardian or other
representative appointed | ||||||
2 | by order of any court.
| ||||||
3 | The isolated or occasional sale of tangible personal | ||||||
4 | property or taxable service at retail
by a person who does not | ||||||
5 | hold himself out as being engaged (or who does not
habitually | ||||||
6 | engage) in selling such tangible personal property or taxable | ||||||
7 | service at retail, or
a sale through a bulk vending machine, | ||||||
8 | does not constitute engaging in a
business of selling such | ||||||
9 | tangible personal property or taxable service at retail within | ||||||
10 | the
meaning of this Act; provided that any person who is | ||||||
11 | engaged in a business
which is not subject to the tax imposed | ||||||
12 | by this Act because of involving
the sale of or a contract to | ||||||
13 | sell real estate or a construction contract to
improve real | ||||||
14 | estate or a construction contract to engineer, install, and
| ||||||
15 | maintain an integrated system of products, but who, in the | ||||||
16 | course of
conducting such business,
transfers tangible | ||||||
17 | personal property to users or consumers in the finished
form in | ||||||
18 | which it was purchased, and which does not become real estate | ||||||
19 | or was
not engineered and installed, under any provision of a | ||||||
20 | construction contract or
real estate sale or real estate sales | ||||||
21 | agreement entered into with some other
person arising out of or | ||||||
22 | because of such nontaxable business, is engaged in the
business | ||||||
23 | of selling tangible personal property at retail to the extent | ||||||
24 | of the
value of the tangible personal property so transferred. | ||||||
25 | If, in such a
transaction, a separate charge is made for the | ||||||
26 | tangible personal property so
transferred, the value of such |
| |||||||
| |||||||
1 | property, for the purpose of this Act, shall be
the amount so | ||||||
2 | separately charged, but not less than the cost of such property
| ||||||
3 | to the transferor; if no separate charge is made, the value of | ||||||
4 | such property,
for the purposes of this Act, is the cost to the | ||||||
5 | transferor of such tangible
personal property. Construction | ||||||
6 | contracts for the improvement of real estate
consisting of | ||||||
7 | engineering, installation, and maintenance of voice, data, | ||||||
8 | video,
security, and all telecommunication systems do not | ||||||
9 | constitute engaging in a
business of selling tangible personal | ||||||
10 | property or taxable service at retail within the meaning of
| ||||||
11 | this Act if they are sold at one specified contract price.
| ||||||
12 | A person who holds himself or herself out as being engaged | ||||||
13 | (or who habitually
engages) in selling tangible personal | ||||||
14 | property or taxable service at retail is a person
engaged in | ||||||
15 | the business of selling tangible personal property or taxable | ||||||
16 | service at retail
hereunder with respect to such sales (and not | ||||||
17 | primarily in a nontaxable service
occupation) notwithstanding | ||||||
18 | the fact that such person designs and produces
such tangible | ||||||
19 | personal property or taxable service on special order for the | ||||||
20 | purchaser and in
such a way as to render the property or | ||||||
21 | service of value only to such purchaser, if
such tangible | ||||||
22 | personal property or taxable service so produced on special | ||||||
23 | order serves
substantially the same function as stock or | ||||||
24 | standard items of tangible
personal property or taxable service | ||||||
25 | that are sold at retail.
| ||||||
26 | Persons who engage in the business of transferring tangible |
| |||||||
| |||||||
1 | personal
property or taxable service upon the redemption of | ||||||
2 | trading stamps are engaged in the business
of selling such | ||||||
3 | property or service at retail and shall be liable for and shall | ||||||
4 | pay
the tax imposed by this Act on the basis of the retail | ||||||
5 | value of the
property or service transferred upon redemption of | ||||||
6 | such stamps.
| ||||||
7 | "Bulk vending machine" means a vending machine,
containing | ||||||
8 | unsorted confections, nuts, toys, or other items designed
| ||||||
9 | primarily to be used or played with by children
which, when a | ||||||
10 | coin or coins of a denomination not larger than $0.50 are
| ||||||
11 | inserted, are dispensed in equal portions, at random and
| ||||||
12 | without selection by the customer.
| ||||||
13 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
| ||||||
14 | (35 ILCS 120/1b new) | ||||||
15 | Sec. 1b. Taxable service. Beginning January 1, 2018, | ||||||
16 | "taxable service" has the meaning provided in Section 2a-2 of | ||||||
17 | the Use Tax Act.
| ||||||
18 | (35 ILCS 120/2) (from Ch. 120, par. 441)
| ||||||
19 | Sec. 2. Tax imposed. A tax is imposed upon persons engaged | ||||||
20 | in the
business of selling at retail taxable service or | ||||||
21 | tangible personal property, or both, including
computer | ||||||
22 | software, and including photographs, negatives, and positives | ||||||
23 | that
are the product of photoprocessing, but not including | ||||||
24 | products of
photoprocessing produced for use in motion pictures |
| |||||||
| |||||||
1 | for public commercial
exhibition.
Beginning January 1, 2001, | ||||||
2 | prepaid telephone calling arrangements shall be
considered | ||||||
3 | tangible personal property subject to the tax imposed under | ||||||
4 | this Act
regardless of the form in which those arrangements may | ||||||
5 | be embodied,
transmitted, or fixed by any method now known or | ||||||
6 | hereafter developed. Sales of (1) electricity delivered to | ||||||
7 | customers by wire; (2) natural or artificial gas that is | ||||||
8 | delivered to customers through pipes, pipelines, or mains; and | ||||||
9 | (3) water that is delivered to customers through pipes, | ||||||
10 | pipelines, or mains are not subject to tax under this Act. The | ||||||
11 | provisions of this amendatory Act of the 98th General Assembly | ||||||
12 | are declaratory of existing law as to the meaning and scope of | ||||||
13 | this Act.
| ||||||
14 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
15 | (35 ILCS 120/2-5)
| ||||||
16 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
17 | sale of
the following tangible personal property and taxable | ||||||
18 | services are exempt from the tax imposed
by this Act:
| ||||||
19 | (1) Farm chemicals.
| ||||||
20 | (2) Farm machinery and equipment, both new and used, | ||||||
21 | including that
manufactured on special order, certified by the | ||||||
22 | purchaser to be used
primarily for production agriculture or | ||||||
23 | State or federal agricultural
programs, including individual | ||||||
24 | replacement parts for the machinery and
equipment, including | ||||||
25 | machinery and equipment purchased for lease,
and including |
| |||||||
| |||||||
1 | implements of husbandry defined in Section 1-130 of
the | ||||||
2 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
3 | chemical and
fertilizer spreaders, and nurse wagons required to | ||||||
4 | be registered
under Section 3-809 of the Illinois Vehicle Code,
| ||||||
5 | but
excluding other motor vehicles required to be registered | ||||||
6 | under the Illinois
Vehicle Code.
Horticultural polyhouses or | ||||||
7 | hoop houses used for propagating, growing, or
overwintering | ||||||
8 | plants shall be considered farm machinery and equipment under
| ||||||
9 | this item (2).
Agricultural chemical tender tanks and dry boxes | ||||||
10 | shall include units sold
separately from a motor vehicle | ||||||
11 | required to be licensed and units sold mounted
on a motor | ||||||
12 | vehicle required to be licensed, if the selling price of the | ||||||
13 | tender
is separately stated.
| ||||||
14 | Farm machinery and equipment shall include precision | ||||||
15 | farming equipment
that is
installed or purchased to be | ||||||
16 | installed on farm machinery and equipment
including, but not | ||||||
17 | limited to, tractors, harvesters, sprayers, planters,
seeders, | ||||||
18 | or spreaders.
Precision farming equipment includes, but is not | ||||||
19 | limited to,
soil testing sensors, computers, monitors, | ||||||
20 | software, global positioning
and mapping systems, and other | ||||||
21 | such equipment.
| ||||||
22 | Farm machinery and equipment also includes computers, | ||||||
23 | sensors, software, and
related equipment used primarily in the
| ||||||
24 | computer-assisted operation of production agriculture | ||||||
25 | facilities, equipment,
and activities such as, but
not limited | ||||||
26 | to,
the collection, monitoring, and correlation of
animal and |
| |||||||
| |||||||
1 | crop data for the purpose of
formulating animal diets and | ||||||
2 | agricultural chemicals. This item (2) is exempt
from the | ||||||
3 | provisions of
Section 2-70.
| ||||||
4 | (3) Until July 1, 2003, distillation machinery and | ||||||
5 | equipment, sold as a
unit or kit,
assembled or installed by the | ||||||
6 | retailer, certified by the user to be used
only for the | ||||||
7 | production of ethyl alcohol that will be used for consumption
| ||||||
8 | as motor fuel or as a component of motor fuel for the personal | ||||||
9 | use of the
user, and not subject to sale or resale.
| ||||||
10 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
11 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
12 | equipment, including
repair and
replacement parts, both new and | ||||||
13 | used, and including that manufactured on
special order or | ||||||
14 | purchased for lease, certified by the purchaser to be used
| ||||||
15 | primarily for graphic arts production.
Equipment includes | ||||||
16 | chemicals or
chemicals acting as catalysts but only if
the | ||||||
17 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
18 | immediate
change upon a
graphic arts product. Beginning on July | ||||||
19 | 1, 2017, graphic arts machinery and equipment is included in | ||||||
20 | the manufacturing and assembling machinery and equipment | ||||||
21 | exemption under paragraph (14).
| ||||||
22 | (5) A motor vehicle that is used for automobile renting, as | ||||||
23 | defined in the Automobile Renting Occupation and Use Tax Act. | ||||||
24 | This paragraph is exempt from
the provisions of Section 2-70.
| ||||||
25 | (6) Personal property sold by a teacher-sponsored student | ||||||
26 | organization
affiliated with an elementary or secondary school |
| |||||||
| |||||||
1 | located in Illinois.
| ||||||
2 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
3 | selling price of
a passenger car the
sale of which is subject | ||||||
4 | to the Replacement Vehicle Tax.
| ||||||
5 | (8) Personal property sold to an Illinois county fair | ||||||
6 | association for
use in conducting, operating, or promoting the | ||||||
7 | county fair.
| ||||||
8 | (9) Personal property sold to or taxable service performed | ||||||
9 | for a not-for-profit arts
or cultural organization that | ||||||
10 | establishes, by proof required by the Department
by
rule, that | ||||||
11 | it has received an exemption under Section 501(c)(3) of the
| ||||||
12 | Internal Revenue Code and that is organized and operated | ||||||
13 | primarily for the
presentation
or support of arts or cultural | ||||||
14 | programming, activities, or services. These
organizations | ||||||
15 | include, but are not limited to, music and dramatic arts
| ||||||
16 | organizations such as symphony orchestras and theatrical | ||||||
17 | groups, arts and
cultural service organizations, local arts | ||||||
18 | councils, visual arts organizations,
and media arts | ||||||
19 | organizations.
On and after the effective date of this | ||||||
20 | amendatory Act of the 92nd General
Assembly, however, an entity | ||||||
21 | otherwise eligible for this exemption shall not
make tax-free | ||||||
22 | purchases unless it has an active identification number issued | ||||||
23 | by
the Department.
| ||||||
24 | (10) Personal property sold or taxable service performed by | ||||||
25 | a corporation, society, association,
foundation, institution, | ||||||
26 | or organization, other than a limited liability
company, that |
| |||||||
| |||||||
1 | is organized and operated as a not-for-profit service | ||||||
2 | enterprise
for the benefit of persons 65 years of age or older | ||||||
3 | if the personal property
was not purchased by the enterprise | ||||||
4 | for the purpose of resale by the
enterprise.
| ||||||
5 | (11) Personal property or taxable service sold to a | ||||||
6 | governmental body, to a corporation,
society, association, | ||||||
7 | foundation, or institution organized and operated
exclusively | ||||||
8 | for charitable, religious, or educational purposes, or to a
| ||||||
9 | not-for-profit corporation, society, association, foundation, | ||||||
10 | institution,
or organization that has no compensated officers | ||||||
11 | or employees and that is
organized and operated primarily for | ||||||
12 | the recreation of persons 55 years of
age or older. A limited | ||||||
13 | liability company may qualify for the exemption under
this | ||||||
14 | paragraph only if the limited liability company is organized | ||||||
15 | and operated
exclusively for educational purposes. On and after | ||||||
16 | July 1, 1987, however, no
entity otherwise eligible for this | ||||||
17 | exemption shall make tax-free purchases
unless it has an active | ||||||
18 | identification number issued by the Department.
| ||||||
19 | (12) Tangible personal property sold to
interstate | ||||||
20 | carriers
for hire for use as
rolling stock moving in interstate | ||||||
21 | commerce or to lessors under leases of
one year or longer | ||||||
22 | executed or in effect at the time of purchase by
interstate | ||||||
23 | carriers for hire for use as rolling stock moving in interstate
| ||||||
24 | commerce and equipment operated by a telecommunications | ||||||
25 | provider, licensed as a
common carrier by the Federal | ||||||
26 | Communications Commission, which is permanently
installed in |
| |||||||
| |||||||
1 | or affixed to aircraft moving in interstate commerce.
| ||||||
2 | (12-5) On and after July 1, 2003 and through June 30, 2004, | ||||||
3 | motor vehicles of the second division
with a gross vehicle | ||||||
4 | weight in excess of 8,000 pounds
that
are
subject to the | ||||||
5 | commercial distribution fee imposed under Section 3-815.1 of
| ||||||
6 | the Illinois
Vehicle Code. Beginning on July 1, 2004 and | ||||||
7 | through June 30, 2005, the use in this State of motor vehicles | ||||||
8 | of the second division: (i) with a gross vehicle weight rating | ||||||
9 | in excess of 8,000 pounds; (ii) that are subject to the | ||||||
10 | commercial distribution fee imposed under Section 3-815.1 of | ||||||
11 | the Illinois Vehicle Code; and (iii) that are primarily used | ||||||
12 | for commercial purposes. Through June 30, 2005, this
exemption | ||||||
13 | applies to repair and replacement parts added
after the
initial | ||||||
14 | purchase of such a motor vehicle if that motor vehicle is used | ||||||
15 | in a
manner that
would qualify for the rolling stock exemption | ||||||
16 | otherwise provided for in this
Act. For purposes of this | ||||||
17 | paragraph, "used for commercial purposes" means the | ||||||
18 | transportation of persons or property in furtherance of any | ||||||
19 | commercial or industrial enterprise whether for-hire or not.
| ||||||
20 | (13) Proceeds from sales to owners, lessors, or
shippers of
| ||||||
21 | tangible personal property that is utilized by interstate | ||||||
22 | carriers for
hire for use as rolling stock moving in interstate | ||||||
23 | commerce
and equipment operated by a telecommunications | ||||||
24 | provider, licensed as a
common carrier by the Federal | ||||||
25 | Communications Commission, which is
permanently installed in | ||||||
26 | or affixed to aircraft moving in interstate commerce.
|
| |||||||
| |||||||
1 | (14) Machinery and equipment that will be used by the | ||||||
2 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
3 | process of manufacturing or
assembling tangible personal | ||||||
4 | property for wholesale or retail sale or
lease, whether the | ||||||
5 | sale or lease is made directly by the manufacturer or by
some | ||||||
6 | other person, whether the materials used in the process are | ||||||
7 | owned by
the manufacturer or some other person, or whether the | ||||||
8 | sale or lease is made
apart from or as an incident to the | ||||||
9 | seller's engaging in the service
occupation of producing | ||||||
10 | machines, tools, dies, jigs, patterns, gauges, or
other similar | ||||||
11 | items of no commercial value on special order for a particular
| ||||||
12 | purchaser. The exemption provided by this paragraph (14) does | ||||||
13 | not include machinery and equipment used in (i) the generation | ||||||
14 | of electricity for wholesale or retail sale; (ii) the | ||||||
15 | generation or treatment of natural or artificial gas for | ||||||
16 | wholesale or retail sale that is delivered to customers through | ||||||
17 | pipes, pipelines, or mains; or (iii) the treatment of water for | ||||||
18 | wholesale or retail sale that is delivered to customers through | ||||||
19 | pipes, pipelines, or mains. The provisions of Public Act 98-583 | ||||||
20 | are declaratory of existing law as to the meaning and scope of | ||||||
21 | this exemption. Beginning on July 1, 2017, the exemption | ||||||
22 | provided by this paragraph (14) includes, but is not limited | ||||||
23 | to, graphic arts machinery and equipment, as defined in | ||||||
24 | paragraph (4) of this Section. Beginning on July 1, 2017, the | ||||||
25 | exemption provided by this paragraph (14) includes, but is not | ||||||
26 | limited to, production related tangible personal property, as |
| |||||||
| |||||||
1 | defined in Section 2-45 of this Act. The exemption provided by | ||||||
2 | this paragraph (14) is exempt from the provisions of Section | ||||||
3 | 2-70.
| ||||||
4 | (15) Proceeds of mandatory service charges separately | ||||||
5 | stated on
customers' bills for purchase and consumption of food | ||||||
6 | and beverages or of taxable service , to the
extent that the | ||||||
7 | proceeds of the service charge are in fact turned over as
tips | ||||||
8 | or as a substitute for tips to the employees who participate | ||||||
9 | directly
in preparing, serving, hosting or cleaning up the food | ||||||
10 | or beverage function
with respect to which the service charge | ||||||
11 | is imposed.
| ||||||
12 | (16) Petroleum products sold to a purchaser if the seller
| ||||||
13 | is prohibited by federal law from charging tax to the | ||||||
14 | purchaser.
| ||||||
15 | (17) Tangible personal property sold to a common carrier by | ||||||
16 | rail or
motor that
receives the physical possession of the | ||||||
17 | property in Illinois and that
transports the property, or | ||||||
18 | shares with another common carrier in the
transportation of the | ||||||
19 | property, out of Illinois on a standard uniform bill
of lading | ||||||
20 | showing the seller of the property as the shipper or consignor | ||||||
21 | of
the property to a destination outside Illinois, for use | ||||||
22 | outside Illinois.
| ||||||
23 | (18) Legal tender, currency, medallions, or gold or silver | ||||||
24 | coinage
issued by the State of Illinois, the government of the | ||||||
25 | United States of
America, or the government of any foreign | ||||||
26 | country, and bullion.
|
| |||||||
| |||||||
1 | (19) Until July 1 2003, oil field exploration, drilling, | ||||||
2 | and production
equipment, including
(i) rigs and parts of rigs, | ||||||
3 | rotary rigs, cable tool
rigs, and workover rigs, (ii) pipe and | ||||||
4 | tubular goods, including casing and
drill strings, (iii) pumps | ||||||
5 | and pump-jack units, (iv) storage tanks and flow
lines, (v) any | ||||||
6 | individual replacement part for oil field exploration,
| ||||||
7 | drilling, and production equipment, and (vi) machinery and | ||||||
8 | equipment purchased
for lease; but
excluding motor vehicles | ||||||
9 | required to be registered under the Illinois
Vehicle Code.
| ||||||
10 | (20) Photoprocessing machinery and equipment, including | ||||||
11 | repair and
replacement parts, both new and used, including that | ||||||
12 | manufactured on
special order, certified by the purchaser to be | ||||||
13 | used primarily for
photoprocessing, and including | ||||||
14 | photoprocessing machinery and equipment
purchased for lease.
| ||||||
15 | (21) Coal and aggregate exploration, mining, off-highway | ||||||
16 | hauling,
processing,
maintenance, and reclamation equipment, | ||||||
17 | including
replacement parts and equipment, and including
| ||||||
18 | equipment purchased for lease, but excluding motor vehicles | ||||||
19 | required to be
registered under the Illinois Vehicle Code. The | ||||||
20 | changes made to this Section by Public Act 97-767 apply on and | ||||||
21 | after July 1, 2003, but no claim for credit or refund is | ||||||
22 | allowed on or after August 16, 2013 (the effective date of | ||||||
23 | Public Act 98-456)
for such taxes paid during the period | ||||||
24 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
25 | effective date of Public Act 98-456).
| ||||||
26 | (22) Until June 30, 2013, fuel and petroleum products sold |
| |||||||
| |||||||
1 | to or used by an air carrier,
certified by the carrier to be | ||||||
2 | used for consumption, shipment, or storage
in the conduct of | ||||||
3 | its business as an air common carrier, for a flight
destined | ||||||
4 | for or returning from a location or locations
outside the | ||||||
5 | United States without regard to previous or subsequent domestic
| ||||||
6 | stopovers.
| ||||||
7 | Beginning July 1, 2013, fuel and petroleum products sold to | ||||||
8 | or used by an air carrier, certified by the carrier to be used | ||||||
9 | for consumption, shipment, or storage in the conduct of its | ||||||
10 | business as an air common carrier, for a flight that (i) is | ||||||
11 | engaged in foreign trade or is engaged in trade between the | ||||||
12 | United States and any of its possessions and (ii) transports at | ||||||
13 | least one individual or package for hire from the city of | ||||||
14 | origination to the city of final destination on the same | ||||||
15 | aircraft, without regard to a change in the flight number of | ||||||
16 | that aircraft. | ||||||
17 | (23) A transaction in which the purchase order is received | ||||||
18 | by a florist
who is located outside Illinois, but who has a | ||||||
19 | florist located in Illinois
deliver the property to the | ||||||
20 | purchaser or the purchaser's donee in Illinois.
| ||||||
21 | (24) Fuel consumed or used in the operation of ships, | ||||||
22 | barges, or vessels
that are used primarily in or for the | ||||||
23 | transportation of property or the
conveyance of persons for | ||||||
24 | hire on rivers bordering on this State if the
fuel is delivered | ||||||
25 | by the seller to the purchaser's barge, ship, or vessel
while | ||||||
26 | it is afloat upon that bordering river.
|
| |||||||
| |||||||
1 | (25) Except as provided in item (25-5) of this Section, a
| ||||||
2 | motor vehicle sold in this State to a nonresident even though | ||||||
3 | the
motor vehicle is delivered to the nonresident in this | ||||||
4 | State, if the motor
vehicle is not to be titled in this State, | ||||||
5 | and if a drive-away permit
is issued to the motor vehicle as | ||||||
6 | provided in Section 3-603 of the Illinois
Vehicle Code or if | ||||||
7 | the nonresident purchaser has vehicle registration
plates to | ||||||
8 | transfer to the motor vehicle upon returning to his or her home
| ||||||
9 | state. The issuance of the drive-away permit or having
the
| ||||||
10 | out-of-state registration plates to be transferred is prima | ||||||
11 | facie evidence
that the motor vehicle will not be titled in | ||||||
12 | this State.
| ||||||
13 | (25-5) The exemption under item (25) does not apply if the | ||||||
14 | state in which the motor vehicle will be titled does not allow | ||||||
15 | a reciprocal exemption for a motor vehicle sold and delivered | ||||||
16 | in that state to an Illinois resident but titled in Illinois. | ||||||
17 | The tax collected under this Act on the sale of a motor vehicle | ||||||
18 | in this State to a resident of another state that does not | ||||||
19 | allow a reciprocal exemption shall be imposed at a rate equal | ||||||
20 | to the state's rate of tax on taxable property in the state in | ||||||
21 | which the purchaser is a resident, except that the tax shall | ||||||
22 | not exceed the tax that would otherwise be imposed under this | ||||||
23 | Act. At the time of the sale, the purchaser shall execute a | ||||||
24 | statement, signed under penalty of perjury, of his or her | ||||||
25 | intent to title the vehicle in the state in which the purchaser | ||||||
26 | is a resident within 30 days after the sale and of the fact of |
| |||||||
| |||||||
1 | the payment to the State of Illinois of tax in an amount | ||||||
2 | equivalent to the state's rate of tax on taxable property in | ||||||
3 | his or her state of residence and shall submit the statement to | ||||||
4 | the appropriate tax collection agency in his or her state of | ||||||
5 | residence. In addition, the retailer must retain a signed copy | ||||||
6 | of the statement in his or her records. Nothing in this item | ||||||
7 | shall be construed to require the removal of the vehicle from | ||||||
8 | this state following the filing of an intent to title the | ||||||
9 | vehicle in the purchaser's state of residence if the purchaser | ||||||
10 | titles the vehicle in his or her state of residence within 30 | ||||||
11 | days after the date of sale. The tax collected under this Act | ||||||
12 | in accordance with this item (25-5) shall be proportionately | ||||||
13 | distributed as if the tax were collected at the 6.25% general | ||||||
14 | rate imposed under this Act.
| ||||||
15 | (25-7) Beginning on July 1, 2007, no tax is imposed under | ||||||
16 | this Act on the sale of an aircraft, as defined in Section 3 of | ||||||
17 | the Illinois Aeronautics Act, if all of the following | ||||||
18 | conditions are met: | ||||||
19 | (1) the aircraft leaves this State within 15 days after | ||||||
20 | the later of either the issuance of the final billing for | ||||||
21 | the sale of the aircraft, or the authorized approval for | ||||||
22 | return to service, completion of the maintenance record | ||||||
23 | entry, and completion of the test flight and ground test | ||||||
24 | for inspection, as required by 14 C.F.R. 91.407; | ||||||
25 | (2) the aircraft is not based or registered in this | ||||||
26 | State after the sale of the aircraft; and |
| |||||||
| |||||||
1 | (3) the seller retains in his or her books and records | ||||||
2 | and provides to the Department a signed and dated | ||||||
3 | certification from the purchaser, on a form prescribed by | ||||||
4 | the Department, certifying that the requirements of this | ||||||
5 | item (25-7) are met. The certificate must also include the | ||||||
6 | name and address of the purchaser, the address of the | ||||||
7 | location where the aircraft is to be titled or registered, | ||||||
8 | the address of the primary physical location of the | ||||||
9 | aircraft, and other information that the Department may | ||||||
10 | reasonably require. | ||||||
11 | For purposes of this item (25-7): | ||||||
12 | "Based in this State" means hangared, stored, or otherwise | ||||||
13 | used, excluding post-sale customizations as defined in this | ||||||
14 | Section, for 10 or more days in each 12-month period | ||||||
15 | immediately following the date of the sale of the aircraft. | ||||||
16 | "Registered in this State" means an aircraft registered | ||||||
17 | with the Department of Transportation, Aeronautics Division, | ||||||
18 | or titled or registered with the Federal Aviation | ||||||
19 | Administration to an address located in this State. | ||||||
20 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
21 | Section 2-70.
| ||||||
22 | (26) Semen used for artificial insemination of livestock | ||||||
23 | for direct
agricultural production.
| ||||||
24 | (27) Horses, or interests in horses, registered with and | ||||||
25 | meeting the
requirements of any of the
Arabian Horse Club | ||||||
26 | Registry of America, Appaloosa Horse Club, American Quarter
|
| |||||||
| |||||||
1 | Horse Association, United States
Trotting Association, or | ||||||
2 | Jockey Club, as appropriate, used for
purposes of breeding or | ||||||
3 | racing for prizes. This item (27) is exempt from the provisions | ||||||
4 | of Section 2-70, and the exemption provided for under this item | ||||||
5 | (27) applies for all periods beginning May 30, 1995, but no | ||||||
6 | claim for credit or refund is allowed on or after January 1, | ||||||
7 | 2008 (the effective date of Public Act 95-88)
for such taxes | ||||||
8 | paid during the period beginning May 30, 2000 and ending on | ||||||
9 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
10 | (28) Computers and communications equipment utilized for | ||||||
11 | any
hospital
purpose
and equipment used in the diagnosis,
| ||||||
12 | analysis, or treatment of hospital patients sold to a lessor | ||||||
13 | who leases the
equipment, under a lease of one year or longer | ||||||
14 | executed or in effect at the
time of the purchase, to a
| ||||||
15 | hospital
that has been issued an active tax exemption | ||||||
16 | identification number by the
Department under Section 1g of | ||||||
17 | this Act.
| ||||||
18 | (29) Personal property sold to a lessor who leases the
| ||||||
19 | property, under a
lease of one year or longer executed or in | ||||||
20 | effect at the time of the purchase,
to a governmental body
that | ||||||
21 | has been issued an active tax exemption identification number | ||||||
22 | by the
Department under Section 1g of this Act.
| ||||||
23 | (30) Beginning with taxable years ending on or after | ||||||
24 | December
31, 1995
and
ending with taxable years ending on or | ||||||
25 | before December 31, 2004,
personal property that is
donated for | ||||||
26 | disaster relief to be used in a State or federally declared
|
| |||||||
| |||||||
1 | disaster area in Illinois or bordering Illinois by a | ||||||
2 | manufacturer or retailer
that is registered in this State to a | ||||||
3 | corporation, society, association,
foundation, or institution | ||||||
4 | that has been issued a sales tax exemption
identification | ||||||
5 | number by the Department that assists victims of the disaster
| ||||||
6 | who reside within the declared disaster area.
| ||||||
7 | (31) Beginning with taxable years ending on or after | ||||||
8 | December
31, 1995 and
ending with taxable years ending on or | ||||||
9 | before December 31, 2004, personal
property that is used in the | ||||||
10 | performance of infrastructure repairs in this
State, including | ||||||
11 | but not limited to municipal roads and streets, access roads,
| ||||||
12 | bridges, sidewalks, waste disposal systems, water and sewer | ||||||
13 | line extensions,
water distribution and purification | ||||||
14 | facilities, storm water drainage and
retention facilities, and | ||||||
15 | sewage treatment facilities, resulting from a State
or | ||||||
16 | federally declared disaster in Illinois or bordering Illinois | ||||||
17 | when such
repairs are initiated on facilities located in the | ||||||
18 | declared disaster area
within 6 months after the disaster.
| ||||||
19 | (32) Beginning July 1, 1999, game or game birds sold at a | ||||||
20 | "game breeding
and
hunting preserve area" as that term is used
| ||||||
21 | in the
Wildlife Code. This paragraph is exempt from the | ||||||
22 | provisions
of
Section 2-70.
| ||||||
23 | (33) A motor vehicle, as that term is defined in Section | ||||||
24 | 1-146
of the
Illinois Vehicle Code, that is donated to a | ||||||
25 | corporation, limited liability
company, society, association, | ||||||
26 | foundation, or institution that is determined by
the Department |
| |||||||
| |||||||
1 | to be organized and operated exclusively for educational
| ||||||
2 | purposes. For purposes of this exemption, "a corporation, | ||||||
3 | limited liability
company, society, association, foundation, | ||||||
4 | or institution organized and
operated
exclusively for | ||||||
5 | educational purposes" means all tax-supported public schools,
| ||||||
6 | private schools that offer systematic instruction in useful | ||||||
7 | branches of
learning by methods common to public schools and | ||||||
8 | that compare favorably in
their scope and intensity with the | ||||||
9 | course of study presented in tax-supported
schools, and | ||||||
10 | vocational or technical schools or institutes organized and
| ||||||
11 | operated exclusively to provide a course of study of not less | ||||||
12 | than 6 weeks
duration and designed to prepare individuals to | ||||||
13 | follow a trade or to pursue a
manual, technical, mechanical, | ||||||
14 | industrial, business, or commercial
occupation.
| ||||||
15 | (34) Beginning January 1, 2000, personal property, | ||||||
16 | including food, purchased
through fundraising events for the | ||||||
17 | benefit of a public or private elementary or
secondary school, | ||||||
18 | a group of those schools, or one or more school districts if
| ||||||
19 | the events are sponsored by an entity recognized by the school | ||||||
20 | district that
consists primarily of volunteers and includes | ||||||
21 | parents and teachers of the
school children. This paragraph | ||||||
22 | does not apply to fundraising events (i) for
the benefit of | ||||||
23 | private home instruction or (ii) for which the fundraising
| ||||||
24 | entity purchases the personal property sold at the events from | ||||||
25 | another
individual or entity that sold the property for the | ||||||
26 | purpose of resale by the
fundraising entity and that profits |
| |||||||
| |||||||
1 | from the sale to the fundraising entity.
This paragraph is | ||||||
2 | exempt from the provisions of Section 2-70.
| ||||||
3 | (35) Beginning January 1, 2000 and through December 31, | ||||||
4 | 2001, new or used
automatic vending machines that prepare and | ||||||
5 | serve hot food and beverages,
including coffee, soup, and other | ||||||
6 | items, and replacement parts for these
machines. Beginning | ||||||
7 | January 1, 2002 and through June 30, 2003, machines
and parts | ||||||
8 | for machines used in
commercial, coin-operated amusement and | ||||||
9 | vending business if a use or occupation
tax is paid on the | ||||||
10 | gross receipts derived from the use of the commercial,
| ||||||
11 | coin-operated amusement and vending machines. This paragraph | ||||||
12 | is exempt from
the provisions of Section 2-70.
| ||||||
13 | (35-5) Beginning August 23, 2001 and through June 30, 2016, | ||||||
14 | food for human consumption that is to be consumed off
the | ||||||
15 | premises where it is sold (other than alcoholic beverages, soft | ||||||
16 | drinks,
and food that has been prepared for immediate | ||||||
17 | consumption) and prescription
and nonprescription medicines, | ||||||
18 | drugs, medical appliances, and insulin, urine
testing | ||||||
19 | materials, syringes, and needles used by diabetics, for human | ||||||
20 | use, when
purchased for use by a person receiving medical | ||||||
21 | assistance under Article V of
the Illinois Public Aid Code who | ||||||
22 | resides in a licensed long-term care facility,
as defined in | ||||||
23 | the Nursing Home Care Act, or a licensed facility as defined in | ||||||
24 | the ID/DD Community Care Act, the MC/DD Act, or the Specialized | ||||||
25 | Mental Health Rehabilitation Act of 2013.
| ||||||
26 | (36) Beginning August 2, 2001, computers and |
| |||||||
| |||||||
1 | communications equipment
utilized for any hospital purpose and | ||||||
2 | equipment used in the diagnosis,
analysis, or treatment of | ||||||
3 | hospital patients sold to a lessor who leases the
equipment, | ||||||
4 | under a lease of one year or longer executed or in effect at | ||||||
5 | the
time of the purchase, to a hospital that has been issued an | ||||||
6 | active tax
exemption identification number by the Department | ||||||
7 | under Section 1g of this Act.
This paragraph is exempt from the | ||||||
8 | provisions of Section 2-70.
| ||||||
9 | (37) Beginning August 2, 2001, personal property sold to a | ||||||
10 | lessor who
leases the property, under a lease of one year or | ||||||
11 | longer executed or in effect
at the time of the purchase, to a | ||||||
12 | governmental body that has been issued an
active tax exemption | ||||||
13 | identification number by the Department under Section 1g
of | ||||||
14 | this Act. This paragraph is exempt from the provisions of | ||||||
15 | Section 2-70.
| ||||||
16 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
17 | 2016, tangible personal property purchased
from an Illinois | ||||||
18 | retailer by a taxpayer engaged in centralized purchasing
| ||||||
19 | activities in Illinois who will, upon receipt of the property | ||||||
20 | in Illinois,
temporarily store the property in Illinois (i) for | ||||||
21 | the purpose of subsequently
transporting it outside this State | ||||||
22 | for use or consumption thereafter solely
outside this State or | ||||||
23 | (ii) for the purpose of being processed, fabricated, or
| ||||||
24 | manufactured into, attached to, or incorporated into other | ||||||
25 | tangible personal
property to be transported outside this State | ||||||
26 | and thereafter used or consumed
solely outside this State. The |
| |||||||
| |||||||
1 | Director of Revenue shall, pursuant to rules
adopted in | ||||||
2 | accordance with the Illinois Administrative Procedure Act, | ||||||
3 | issue a
permit to any taxpayer in good standing with the | ||||||
4 | Department who is eligible for
the exemption under this | ||||||
5 | paragraph (38). The permit issued under
this paragraph (38) | ||||||
6 | shall authorize the holder, to the extent and
in the manner | ||||||
7 | specified in the rules adopted under this Act, to purchase
| ||||||
8 | tangible personal property from a retailer exempt from the | ||||||
9 | taxes imposed by
this Act. Taxpayers shall maintain all | ||||||
10 | necessary books and records to
substantiate the use and | ||||||
11 | consumption of all such tangible personal property
outside of | ||||||
12 | the State of Illinois.
| ||||||
13 | (39) Beginning January 1, 2008, tangible personal property | ||||||
14 | used in the construction or maintenance of a community water | ||||||
15 | supply, as defined under Section 3.145 of the Environmental | ||||||
16 | Protection Act, that is operated by a not-for-profit | ||||||
17 | corporation that holds a valid water supply permit issued under | ||||||
18 | Title IV of the Environmental Protection Act. This paragraph is | ||||||
19 | exempt from the provisions of Section 2-70.
| ||||||
20 | (40) Beginning January 1, 2010, materials, parts, | ||||||
21 | equipment, components, and furnishings incorporated into or | ||||||
22 | upon an aircraft as part of the modification, refurbishment, | ||||||
23 | completion, replacement, repair, or maintenance of the | ||||||
24 | aircraft. This exemption includes consumable supplies used in | ||||||
25 | the modification, refurbishment, completion, replacement, | ||||||
26 | repair, and maintenance of aircraft, but excludes any |
| |||||||
| |||||||
1 | materials, parts, equipment, components, and consumable | ||||||
2 | supplies used in the modification, replacement, repair, and | ||||||
3 | maintenance of aircraft engines or power plants, whether such | ||||||
4 | engines or power plants are installed or uninstalled upon any | ||||||
5 | such aircraft. "Consumable supplies" include, but are not | ||||||
6 | limited to, adhesive, tape, sandpaper, general purpose | ||||||
7 | lubricants, cleaning solution, latex gloves, and protective | ||||||
8 | films. This exemption applies only to the sale of qualifying | ||||||
9 | tangible personal property to persons who modify, refurbish, | ||||||
10 | complete, replace, or maintain an aircraft and who (i) hold an | ||||||
11 | Air Agency Certificate and are empowered to operate an approved | ||||||
12 | repair station by the Federal Aviation Administration, (ii) | ||||||
13 | have a Class IV Rating, and (iii) conduct operations in | ||||||
14 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
15 | The exemption does not include aircraft operated by a | ||||||
16 | commercial air carrier providing scheduled passenger air | ||||||
17 | service pursuant to authority issued under Part 121 or Part 129 | ||||||
18 | of the Federal Aviation Regulations. The changes made to this | ||||||
19 | paragraph (40) by Public Act 98-534 are declarative of existing | ||||||
20 | law. | ||||||
21 | (41) Tangible personal property sold to a | ||||||
22 | public-facilities corporation, as described in Section | ||||||
23 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
24 | constructing or furnishing a municipal convention hall, but | ||||||
25 | only if the legal title to the municipal convention hall is | ||||||
26 | transferred to the municipality without any further |
| |||||||
| |||||||
1 | consideration by or on behalf of the municipality at the time | ||||||
2 | of the completion of the municipal convention hall or upon the | ||||||
3 | retirement or redemption of any bonds or other debt instruments | ||||||
4 | issued by the public-facilities corporation in connection with | ||||||
5 | the development of the municipal convention hall. This | ||||||
6 | exemption includes existing public-facilities corporations as | ||||||
7 | provided in Section 11-65-25 of the Illinois Municipal Code. | ||||||
8 | This paragraph is exempt from the provisions of Section 2-70. | ||||||
9 | (42) Beginning January 1, 2017, menstrual pads, tampons, | ||||||
10 | and menstrual cups. | ||||||
11 | (43) Beginning January 1, 2018, taxable service performed | ||||||
12 | on or to tangible personal property the sale of which is exempt | ||||||
13 | from taxation under this Act. This paragraph is exempt from the | ||||||
14 | provisions of Section 2-70. | ||||||
15 | (44) Beginning January 1, 2018, taxable service performed | ||||||
16 | in a transaction that would be exempt from taxation under this | ||||||
17 | Act if it involved solely the sale of tangible personal | ||||||
18 | property. Such exemption could be due to the nature of the | ||||||
19 | seller or of the service provider, the purchaser or service | ||||||
20 | recipient, or other features of the transaction, including but | ||||||
21 | not limited to the location or sale-for-resale nature of the | ||||||
22 | transaction. Any such exemption applies to transactions | ||||||
23 | involving solely the sale of tangible personal property, solely | ||||||
24 | the performance of taxable service, or some combination | ||||||
25 | thereof. This paragraph is exempt from the provisions of | ||||||
26 | Section 2-70. |
| |||||||
| |||||||
1 | (45) Beginning January 1, 2018, taxable service performed | ||||||
2 | for or provided to businesses making purchases of services for | ||||||
3 | the benefit of or in furtherance of the business. This | ||||||
4 | paragraph is exempt from the provisions of Section 2-70. | ||||||
5 | (Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13; | ||||||
6 | 98-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff. | ||||||
7 | 1-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff. | ||||||
8 | 7-29-15; 99-855, eff. 8-19-16.)
| ||||||
9 | (35 ILCS 120/2-10)
| ||||||
10 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
11 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
12 | gross receipts
from sales of tangible personal property made in | ||||||
13 | the course of business. Beginning July 1, 2017, the tax is also | ||||||
14 | imposed at the rate of 6.25% of the gross receipts from sales | ||||||
15 | of taxable services.
| ||||||
16 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
17 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
18 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
19 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
20 | Beginning on August 6, 2010 through August 15, 2010, with | ||||||
21 | respect to sales tax holiday items as defined in Section 2-8 of | ||||||
22 | this Act, the
tax is imposed at the rate of 1.25%. | ||||||
23 | Within 14 days after the effective date of this amendatory | ||||||
24 | Act of the 91st
General Assembly, each retailer of motor fuel | ||||||
25 | and gasohol shall cause the
following notice to be posted in a |
| |||||||
| |||||||
1 | prominently visible place on each retail
dispensing device that | ||||||
2 | is used to dispense motor
fuel or gasohol in the State of | ||||||
3 | Illinois: "As of July 1, 2000, the State of
Illinois has | ||||||
4 | eliminated the State's share of sales tax on motor fuel and
| ||||||
5 | gasohol through December 31, 2000. The price on this pump | ||||||
6 | should reflect the
elimination of the tax." The notice shall be | ||||||
7 | printed in bold print on a sign
that is no smaller than 4 | ||||||
8 | inches by 8 inches. The sign shall be clearly
visible to | ||||||
9 | customers. Any retailer who fails to post or maintain a | ||||||
10 | required
sign through December 31, 2000 is guilty of a petty | ||||||
11 | offense for which the fine
shall be $500 per day per each | ||||||
12 | retail premises where a violation occurs.
| ||||||
13 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
14 | tax imposed
by this Act applies to (i) 70% of the proceeds of | ||||||
15 | sales made on or after
January 1, 1990, and before July 1, | ||||||
16 | 2003, (ii) 80% of the proceeds of
sales made on or after July | ||||||
17 | 1, 2003 and on or before December 31,
2018, and (iii) 100% of | ||||||
18 | the proceeds of sales
made thereafter.
If, at any time, | ||||||
19 | however, the tax under this Act on sales of gasohol, as
defined | ||||||
20 | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
| ||||||
21 | tax imposed by this Act applies to 100% of the proceeds of | ||||||
22 | sales of gasohol
made during that time.
| ||||||
23 | With respect to majority blended ethanol fuel, as defined | ||||||
24 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
25 | to the proceeds of sales made on or after
July 1, 2003 and on or | ||||||
26 | before December 31, 2018 but applies to 100% of the
proceeds of |
| |||||||
| |||||||
1 | sales made thereafter.
| ||||||
2 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
3 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
4 | tax imposed by this Act
applies to (i) 80% of the proceeds of | ||||||
5 | sales made on or after July 1, 2003
and on or before December | ||||||
6 | 31, 2018 and (ii) 100% of the
proceeds of sales made | ||||||
7 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
8 | sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||||||
9 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
10 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
11 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
12 | than 1% and no more than 10% biodiesel
made
during that time.
| ||||||
13 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
14 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
15 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
16 | by this Act
does not apply to the proceeds of sales made on or | ||||||
17 | after July 1, 2003
and on or before December 31, 2018 but | ||||||
18 | applies to 100% of the
proceeds of sales made thereafter.
| ||||||
19 | With respect to food for human consumption that is to be | ||||||
20 | consumed off the
premises where it is sold (other than | ||||||
21 | alcoholic beverages, soft drinks, and
food that has been | ||||||
22 | prepared for immediate consumption) and prescription and
| ||||||
23 | nonprescription medicines, drugs, medical appliances, products | ||||||
24 | classified as Class III medical devices by the United States | ||||||
25 | Food and Drug Administration that are used for cancer treatment | ||||||
26 | pursuant to a prescription, as well as any accessories and |
| |||||||
| |||||||
1 | components related to those devices, modifications to a motor
| ||||||
2 | vehicle for the purpose of rendering it usable by a person with | ||||||
3 | a disability, and
insulin, urine testing materials, syringes, | ||||||
4 | and needles used by diabetics, for
human use, the tax is | ||||||
5 | imposed at the rate of 1%. For the purposes of this
Section, | ||||||
6 | until September 1, 2009: the term "soft drinks" means any | ||||||
7 | complete, finished, ready-to-use,
non-alcoholic drink, whether | ||||||
8 | carbonated or not, including but not limited to
soda water, | ||||||
9 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
10 | other
preparations commonly known as soft drinks of whatever | ||||||
11 | kind or description that
are contained in any closed or sealed | ||||||
12 | bottle, can, carton, or container,
regardless of size; but | ||||||
13 | "soft drinks" does not include coffee, tea, non-carbonated
| ||||||
14 | water, infant formula, milk or milk products as defined in the | ||||||
15 | Grade A
Pasteurized Milk and Milk Products Act, or drinks | ||||||
16 | containing 50% or more
natural fruit or vegetable juice.
| ||||||
17 | Notwithstanding any other provisions of this
Act, | ||||||
18 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
19 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
20 | drinks" do not include beverages that contain milk or milk | ||||||
21 | products, soy, rice or similar milk substitutes, or greater | ||||||
22 | than 50% of vegetable or fruit juice by volume. | ||||||
23 | Until August 1, 2009, and notwithstanding any other | ||||||
24 | provisions of this
Act, "food for human consumption that is to | ||||||
25 | be consumed off the premises where
it is sold" includes all | ||||||
26 | food sold through a vending machine, except soft
drinks and |
| |||||||
| |||||||
1 | food products that are dispensed hot from a vending machine,
| ||||||
2 | regardless of the location of the vending machine. Beginning | ||||||
3 | August 1, 2009, and notwithstanding any other provisions of | ||||||
4 | this Act, "food for human consumption that is to be consumed | ||||||
5 | off the premises where it is sold" includes all food sold | ||||||
6 | through a vending machine, except soft drinks, candy, and food | ||||||
7 | products that are dispensed hot from a vending machine, | ||||||
8 | regardless of the location of the vending machine.
| ||||||
9 | Notwithstanding any other provisions of this
Act, | ||||||
10 | beginning September 1, 2009, "food for human consumption that | ||||||
11 | is to be consumed off the premises where
it is sold" does not | ||||||
12 | include candy. For purposes of this Section, "candy" means a | ||||||
13 | preparation of sugar, honey, or other natural or artificial | ||||||
14 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
15 | ingredients or flavorings in the form of bars, drops, or | ||||||
16 | pieces. "Candy" does not include any preparation that contains | ||||||
17 | flour or requires refrigeration. | ||||||
18 | Notwithstanding any other provisions of this
Act, | ||||||
19 | beginning September 1, 2009, "nonprescription medicines and | ||||||
20 | drugs" does not include grooming and hygiene products. For | ||||||
21 | purposes of this Section, "grooming and hygiene products" | ||||||
22 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
23 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
24 | lotions and screens, unless those products are available by | ||||||
25 | prescription only, regardless of whether the products meet the | ||||||
26 | definition of "over-the-counter-drugs". For the purposes of |
| |||||||
| |||||||
1 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
2 | use that contains a label that identifies the product as a drug | ||||||
3 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
4 | label includes: | ||||||
5 | (A) A "Drug Facts" panel; or | ||||||
6 | (B) A statement of the "active ingredient(s)" with a | ||||||
7 | list of those ingredients contained in the compound, | ||||||
8 | substance or preparation.
| ||||||
9 | Beginning on the effective date of this amendatory Act of | ||||||
10 | the 98th General Assembly, "prescription and nonprescription | ||||||
11 | medicines and drugs" includes medical cannabis purchased from a | ||||||
12 | registered dispensing organization under the Compassionate Use | ||||||
13 | of Medical Cannabis Pilot Program Act. | ||||||
14 | (Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15; | ||||||
15 | 99-858, eff. 8-19-16.)
| ||||||
16 | (35 ILCS 120/2-10.5)
| ||||||
17 | Sec. 2-10.5.
Direct payment program; purchaser's providing | ||||||
18 | of permit to
retailer; retailer relieved of collecting use tax | ||||||
19 | and local retailers'
occupation tax reimbursements from | ||||||
20 | purchaser; direct payment of retailers'
occupation tax and | ||||||
21 | local retailers' occupation tax by purchaser.
| ||||||
22 | (a) Beginning on July 1, 2001 there is established in this | ||||||
23 | State a Direct
Payment Program to be administered by the | ||||||
24 | Department. The Department shall
issue a Direct Pay Permit to | ||||||
25 | applicants who have been approved to participate
in the Direct |
| |||||||
| |||||||
1 | Payment Program. Each person applying to participate in the
| ||||||
2 | Direct Payment Program must demonstrate (1) the applicant's | ||||||
3 | ability to comply
with the retailers' occupation tax laws and | ||||||
4 | the use tax laws in effect in this
State and that the | ||||||
5 | applicant's accounting system will reflect the proper amount
of | ||||||
6 | tax due, (2) that the applicant has a valid business purpose | ||||||
7 | for
participating in the Direct Payment Program, and (3) how | ||||||
8 | the applicant's
participation in the Direct Payment Program | ||||||
9 | will benefit tax compliance.
Application shall be made on forms | ||||||
10 | provided by the Department and shall contain
information as the | ||||||
11 | Department may reasonably require. The Department shall
| ||||||
12 | approve or deny an applicant within 90 days after the | ||||||
13 | Department's receipt of
the application, unless the Department | ||||||
14 | makes a written request for additional
information from the | ||||||
15 | applicant.
| ||||||
16 | (b) A person who has been approved for the Direct Payment | ||||||
17 | Program and who
has been issued a Direct Pay Permit by the | ||||||
18 | Department is relieved of paying tax
to a retailer when | ||||||
19 | purchasing tangible personal property or taxable service for | ||||||
20 | use or
consumption, except as provided in subsection (d), by | ||||||
21 | providing that retailer a
copy of that Direct Pay Permit. A | ||||||
22 | retailer who accepts a copy of a customer's
Direct Pay Permit | ||||||
23 | is relieved of the obligation to remit the tax imposed by
this | ||||||
24 | Act on the transaction. References in this Section to "the tax | ||||||
25 | imposed by
this Act" include any local occupation taxes | ||||||
26 | administered by the Department
that would be incurred on the |
| |||||||
| |||||||
1 | retail sale.
| ||||||
2 | (c) Once the holder of a Direct Pay Permit uses that Permit | ||||||
3 | to relieve the
Permit holder from paying tax to a particular | ||||||
4 | retailer, the holder must use its
Permit for all purchases, | ||||||
5 | except as provided in subsection (d), from that
retailer for so | ||||||
6 | long as the Permit is valid.
| ||||||
7 | (d) Direct Pay Permits are not valid and shall not be used | ||||||
8 | for sales or
purchases of:
| ||||||
9 | (1) food or beverage;
| ||||||
10 | (2) tangible personal property required to be titled or | ||||||
11 | registered with an
agency of government; or
| ||||||
12 | (3) any transactions subject to the Service Occupation | ||||||
13 | Tax Act or Service
Use Tax Act.
| ||||||
14 | (e) Direct Pay Permits are not assignable and are not | ||||||
15 | transferable. As an
illustration, a construction contractor | ||||||
16 | shall not make purchases using a
customer's Direct Pay Permit.
| ||||||
17 | (f) A Direct Pay Permit is valid until it is revoked by the | ||||||
18 | Department or
until the holder notifies the Department in | ||||||
19 | writing that the holder is
withdrawing from the Direct Payment | ||||||
20 | Program. A Direct Pay Permit can be
revoked by the Department, | ||||||
21 | after notice and hearing, if the holder violates any
provision | ||||||
22 | of this Act, any provision of the Illinois Use Tax Act, or any
| ||||||
23 | provision of any Act imposing a local retailers' occupation tax | ||||||
24 | administered by
the Department.
| ||||||
25 | (g) The holder of a Direct Pay Permit who has been relieved | ||||||
26 | of paying tax to
a retailer on a purchase for use or |
| |||||||
| |||||||
1 | consumption by representing to that
retailer that it would pay | ||||||
2 | all applicable taxes directly to the Department
shall pay those | ||||||
3 | taxes to the Department not later than the 20th day of the
| ||||||
4 | month following the month in which the purchase was made. | ||||||
5 | Permit holders
making such purchases are subject to all | ||||||
6 | provisions of this Act, and the tax
must be reported and paid | ||||||
7 | as retailers' occupation tax in the same manner that
the | ||||||
8 | retailer from whom the purchases were made would have reported | ||||||
9 | and paid it,
including any local retailers' occupation taxes | ||||||
10 | applicable to that retail sale.
Notwithstanding any other | ||||||
11 | provision of this Act, Permit holders shall make all
payments | ||||||
12 | to the Department through the use of electronic funds transfer.
| ||||||
13 | (Source: P.A. 92-484, eff. 8-23-01.)
| ||||||
14 | (35 ILCS 120/2-12) | ||||||
15 | Sec. 2-12. Location where retailer is deemed to be engaged | ||||||
16 | in the business of selling. The purpose of this Section is to | ||||||
17 | specify where a retailer is deemed to be engaged in the | ||||||
18 | business of selling tangible personal property or taxable | ||||||
19 | service for the purposes of this Act, the Use Tax Act, the | ||||||
20 | Service Use Tax Act, and the Service Occupation Tax Act, and | ||||||
21 | for the purpose of collecting any other local retailers' | ||||||
22 | occupation tax administered by the Department. This Section | ||||||
23 | applies only with respect to the particular selling activities | ||||||
24 | described in the following paragraphs. The provisions of this | ||||||
25 | Section are not intended to, and shall not be interpreted to, |
| |||||||
| |||||||
1 | affect where a retailer is deemed to be engaged in the business | ||||||
2 | of selling with respect to any activity that is not | ||||||
3 | specifically described in the following paragraphs. | ||||||
4 | (1) If a purchaser who is present at the retailer's | ||||||
5 | place of business, having no prior commitment to the | ||||||
6 | retailer, agrees to purchase and makes payment for tangible | ||||||
7 | personal property at the retailer's place of business, then | ||||||
8 | the transaction shall be deemed an over-the-counter sale | ||||||
9 | occurring at the retailer's same place of business where | ||||||
10 | the purchaser was present and made payment for that | ||||||
11 | tangible personal property if the retailer regularly | ||||||
12 | stocks the purchased tangible personal property or similar | ||||||
13 | tangible personal property in the quantity, or similar | ||||||
14 | quantity, for sale at the retailer's same place of business | ||||||
15 | and then either (i) the purchaser takes possession of the | ||||||
16 | tangible personal property at the same place of business or | ||||||
17 | (ii) the retailer delivers or arranges for the tangible | ||||||
18 | personal property to be delivered to the purchaser. | ||||||
19 | (2) If a purchaser, having no prior commitment to the | ||||||
20 | retailer, agrees to purchase tangible personal property | ||||||
21 | and makes payment over the phone, in writing, or via the | ||||||
22 | Internet and takes possession of the tangible personal | ||||||
23 | property at the retailer's place of business, then the sale | ||||||
24 | shall be deemed to have occurred at the retailer's place of | ||||||
25 | business where the purchaser takes possession of the | ||||||
26 | property if the retailer regularly stocks the item or |
| |||||||
| |||||||
1 | similar items in the quantity, or similar quantities, | ||||||
2 | purchased by the purchaser. | ||||||
3 | (3) A retailer is deemed to be engaged in the business | ||||||
4 | of selling food, beverages, or other tangible personal | ||||||
5 | property through a vending machine at the location where | ||||||
6 | the vending machine is located at the time the sale is made | ||||||
7 | if (i) the vending machine is a device operated by coin, | ||||||
8 | currency, credit card, token, coupon or similar device; (2) | ||||||
9 | the food, beverage or other tangible personal property is | ||||||
10 | contained within the vending machine and dispensed from the | ||||||
11 | vending machine; and (3) the purchaser takes possession of | ||||||
12 | the purchased food, beverage or other tangible personal | ||||||
13 | property immediately. | ||||||
14 | (4) Minerals. A producer of coal or other mineral mined | ||||||
15 | in Illinois is deemed to be engaged in the business of | ||||||
16 | selling at the place where the coal or other mineral mined | ||||||
17 | in Illinois is extracted from the earth. With respect to | ||||||
18 | minerals (i) the term "extracted from the earth" means the | ||||||
19 | location at which the coal or other mineral is extracted | ||||||
20 | from the mouth of the mine, and (ii) a "mineral" includes | ||||||
21 | not only coal, but also oil, sand, stone taken from a | ||||||
22 | quarry, gravel and any other thing commonly regarded as a | ||||||
23 | mineral and extracted from the earth. This paragraph does | ||||||
24 | not apply to coal or another mineral when it is delivered | ||||||
25 | or shipped by the seller to the purchaser at a point | ||||||
26 | outside Illinois so that the sale is exempt under the |
| |||||||
| |||||||
1 | United States Constitution as a sale in interstate or | ||||||
2 | foreign commerce.
| ||||||
3 | (5) A retailer selling tangible personal property to a | ||||||
4 | nominal lessee or bailee pursuant to a lease with a dollar | ||||||
5 | or other nominal option to purchase is engaged in the | ||||||
6 | business of selling at the location where the property is | ||||||
7 | first delivered to the lessee or bailee for its intended | ||||||
8 | use. | ||||||
9 | (6) Landscaping services shall be sourced to the | ||||||
10 | location of the parcel or tract of land where the benefit | ||||||
11 | of the landscaping services is realized. | ||||||
12 | (Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
| ||||||
13 | (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
| ||||||
14 | Sec. 2-45. Manufacturing and assembly exemption. The | ||||||
15 | manufacturing
and assembly machinery and equipment exemption | ||||||
16 | includes machinery
and equipment that replaces machinery
and | ||||||
17 | equipment in an existing manufacturing facility as well as | ||||||
18 | machinery
and equipment that are for use in an expanded or new
| ||||||
19 | manufacturing facility.
| ||||||
20 | The machinery and equipment exemption also includes | ||||||
21 | machinery
and equipment used in the
general maintenance or | ||||||
22 | repair of exempt machinery and equipment or for
in-house | ||||||
23 | manufacture of exempt machinery and equipment.
Beginning on | ||||||
24 | July 1, 2017, the manufacturing and assembling machinery and | ||||||
25 | equipment exemption also includes graphic arts machinery and |
| |||||||
| |||||||
1 | equipment, as defined in paragraph (4) of Section 2-5. | ||||||
2 | Beginning on July 1, 2017, the manufacturing and assembling | ||||||
3 | machinery and equipment exemption also includes production | ||||||
4 | related tangible personal property, as defined in this Section. | ||||||
5 | The machinery and equipment exemption does not include | ||||||
6 | machinery and equipment used in (i) the generation of | ||||||
7 | electricity for wholesale or retail sale; (ii) the generation | ||||||
8 | or treatment of natural or artificial gas for wholesale or | ||||||
9 | retail sale that is delivered to customers through pipes, | ||||||
10 | pipelines, or mains; or (iii) the treatment of water for | ||||||
11 | wholesale or retail sale that is delivered to customers through | ||||||
12 | pipes, pipelines, or mains. The provisions of this amendatory | ||||||
13 | Act of the 98th General Assembly are declaratory of existing | ||||||
14 | law as to the meaning and scope of this exemption. For the | ||||||
15 | purposes of this exemption, terms have the following meanings:
| ||||||
16 | (1) "Manufacturing process" means the production of an | ||||||
17 | article of
tangible personal property, whether the article | ||||||
18 | is a finished product or an
article for use in the process | ||||||
19 | of manufacturing or assembling a different
article of | ||||||
20 | tangible personal property, by a procedure commonly | ||||||
21 | regarded as
manufacturing, processing, fabricating, or | ||||||
22 | refining that changes some
existing material or materials | ||||||
23 | into a material with a different form, use,
or name. In | ||||||
24 | relation to a recognized integrated business composed of a
| ||||||
25 | series of operations that collectively constitute | ||||||
26 | manufacturing, or
individually constitute manufacturing |
| |||||||
| |||||||
1 | operations, the manufacturing process
commences with the | ||||||
2 | first operation or stage of production in the series and
| ||||||
3 | does not end until the completion of the final product in | ||||||
4 | the last
operation or stage of production in the series. | ||||||
5 | For purposes of this
exemption, photoprocessing is a | ||||||
6 | manufacturing process of tangible personal
property for | ||||||
7 | wholesale or retail sale.
| ||||||
8 | (2) "Assembling process" means the production of an | ||||||
9 | article of
tangible personal property, whether the article | ||||||
10 | is a finished product or an
article for use in the process | ||||||
11 | of manufacturing or assembling a different
article of | ||||||
12 | tangible personal property, by the combination of existing
| ||||||
13 | materials in a manner commonly regarded as assembling that | ||||||
14 | results in a
material of a different form, use, or name.
| ||||||
15 | (3) "Machinery" means major mechanical machines or | ||||||
16 | major components of
those machines contributing to a | ||||||
17 | manufacturing or assembling process.
| ||||||
18 | (4) "Equipment" includes an independent device or tool | ||||||
19 | separate from
machinery but essential to an integrated | ||||||
20 | manufacturing or assembly process;
including computers | ||||||
21 | used primarily in a manufacturer's computer assisted | ||||||
22 | design, computer assisted manufacturing
(CAD/CAM) system; | ||||||
23 | any subunit or assembly comprising a component of any
| ||||||
24 | machinery or auxiliary, adjunct, or attachment parts of | ||||||
25 | machinery, such as
tools, dies, jigs, fixtures, patterns, | ||||||
26 | and molds; and any parts that
require periodic replacement |
| |||||||
| |||||||
1 | in the course of normal operation; but does
not include | ||||||
2 | hand tools. Equipment includes chemicals or chemicals | ||||||
3 | acting as
catalysts but only if
the chemicals or chemicals | ||||||
4 | acting as catalysts effect a direct and
immediate change | ||||||
5 | upon a
product being manufactured or assembled for | ||||||
6 | wholesale or retail sale or
lease.
| ||||||
7 | (5) "Production related tangible personal property" | ||||||
8 | means all tangible personal property that is used or | ||||||
9 | consumed by the purchaser in a manufacturing facility in | ||||||
10 | which a manufacturing process takes place and includes, | ||||||
11 | without limitation, tangible personal property that is | ||||||
12 | purchased for incorporation into real estate within a | ||||||
13 | manufacturing facility and tangible personal property that | ||||||
14 | is used or consumed in activities such as research and | ||||||
15 | development, preproduction material handling, receiving, | ||||||
16 | quality control, inventory control, storage, staging, and | ||||||
17 | packaging for shipping and transportation purposes. | ||||||
18 | "Production related tangible personal property" does not | ||||||
19 | include (i) tangible personal property that is used, within | ||||||
20 | or without a manufacturing facility, in sales, purchasing, | ||||||
21 | accounting, fiscal management, marketing, personnel | ||||||
22 | recruitment or selection, or landscaping or (ii) tangible | ||||||
23 | personal property that is required to be titled or | ||||||
24 | registered with a department, agency, or unit of federal, | ||||||
25 | State, or local government.
| ||||||
26 | The manufacturing and assembling machinery and equipment |
| |||||||
| |||||||
1 | exemption includes production related tangible personal | ||||||
2 | property that is purchased (i) on or after July 1, 2007 and on | ||||||
3 | or before June 30, 2008 or (ii) on and after July 1, 2017 . The | ||||||
4 | exemption for production related tangible personal property | ||||||
5 | purchased on or after July 1, 2007 and on or before June 30, | ||||||
6 | 2008 is subject to both of the following limitations: | ||||||
7 | (1) The maximum amount of the exemption for any one | ||||||
8 | taxpayer may not exceed 5% of the purchase price of | ||||||
9 | production related tangible personal property that is | ||||||
10 | purchased on or after July 1, 2007 and on or before June | ||||||
11 | 30, 2008. A credit under Section 3-85 of this Act may not | ||||||
12 | be earned by the purchase of production related tangible | ||||||
13 | personal property for which an exemption is received under | ||||||
14 | this Section. | ||||||
15 | (2) The maximum aggregate amount of the exemptions for | ||||||
16 | production related tangible personal property awarded | ||||||
17 | under this Act and the Use
Tax Act to all taxpayers may not | ||||||
18 | exceed $10,000,000. If the claims for the exemption exceed | ||||||
19 | $10,000,000, then the Department shall reduce the amount of | ||||||
20 | the exemption to each taxpayer on a pro rata basis. | ||||||
21 | The Department may adopt rules to implement and administer the | ||||||
22 | exemption for production related tangible personal property. | ||||||
23 | The manufacturing and assembling machinery and equipment | ||||||
24 | exemption
includes the sale of materials to a purchaser who | ||||||
25 | produces exempted types
of machinery, equipment, or tools and | ||||||
26 | who rents or leases that machinery,
equipment, or tools to a |
| |||||||
| |||||||
1 | manufacturer of tangible personal property. This
exemption | ||||||
2 | also includes the sale of materials to a purchaser who | ||||||
3 | manufactures
those materials into an exempted type of | ||||||
4 | machinery, equipment, or tools
that the purchaser uses himself | ||||||
5 | or herself in the manufacturing of tangible
personal property. | ||||||
6 | The purchaser of the machinery and equipment who has an
active | ||||||
7 | resale registration number shall furnish that number to the | ||||||
8 | seller
at the time of purchase. A purchaser of the machinery, | ||||||
9 | equipment, and
tools without an active resale registration | ||||||
10 | number shall furnish to the
seller a certificate of exemption | ||||||
11 | for each transaction stating facts
establishing the exemption | ||||||
12 | for that transaction, and that certificate shall
be available | ||||||
13 | to the Department for inspection or audit. Informal
rulings, | ||||||
14 | opinions, or letters issued by the Department in response to an
| ||||||
15 | inquiry or request for an opinion from any person regarding the | ||||||
16 | coverage and
applicability of this exemption to specific | ||||||
17 | devices shall be published,
maintained as a public record,
and | ||||||
18 | made available for public inspection and copying. If the | ||||||
19 | informal
ruling, opinion, or letter contains trade secrets or | ||||||
20 | other confidential
information, where possible, the Department | ||||||
21 | shall delete that information
before publication. Whenever | ||||||
22 | informal rulings, opinions, or letters
contain a policy of | ||||||
23 | general applicability, the Department shall
formulate and | ||||||
24 | adopt that policy as a rule in accordance with the Illinois
| ||||||
25 | Administrative Procedure Act.
| ||||||
26 | The manufacturing and assembling machinery and equipment
|
| |||||||
| |||||||
1 | exemption is exempt from the provisions of Section 2-70. | ||||||
2 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
3 | (35 ILCS 120/2-55) (from Ch. 120, par. 441-55)
| ||||||
4 | Sec. 2-55. Serviceman transfer. Tangible personal property
| ||||||
5 | purchased by a serviceman, as defined in Section 2 of the | ||||||
6 | Service
Occupation Tax Act, is subject to the tax imposed by | ||||||
7 | this Act when
purchased for transfer by the serviceman | ||||||
8 | incidental to completion of a
maintenance agreement. Effective | ||||||
9 | January 1, 2018, purchases of tangible personal property | ||||||
10 | purchased for transfer incidental to performance of a taxable | ||||||
11 | service is not subject to the tax imposed by this Act.
| ||||||
12 | (Source: P.A. 91-51, eff. 6-30-99.)
| ||||||
13 | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | ||||||
14 | Sec. 2a. It is unlawful for any person to engage in the | ||||||
15 | business of
selling tangible personal property or taxable | ||||||
16 | service at retail in this State without a
certificate of | ||||||
17 | registration from the Department. Application
for a | ||||||
18 | certificate of registration shall be made to the Department | ||||||
19 | upon
forms furnished by it. Each such application shall be | ||||||
20 | signed and verified
and shall state: (1) the name and social | ||||||
21 | security number of the
applicant; (2) the address of his | ||||||
22 | principal place
of business; (3) the address of the principal | ||||||
23 | place of business from which
he engages in the business of | ||||||
24 | selling tangible personal property or taxable service at retail
|
| |||||||
| |||||||
1 | in this State and the addresses of all other places of | ||||||
2 | business, if any
(enumerating such addresses, if any, in a | ||||||
3 | separate list attached to and
made a part of the application), | ||||||
4 | from which he engages in the business of
selling tangible | ||||||
5 | personal property or taxable service at retail in this State; | ||||||
6 | (4)
the
name and address of the person or persons who will be | ||||||
7 | responsible for
filing returns and payment of taxes due under | ||||||
8 | this Act; (5) in the case of a publicly traded corporation, the | ||||||
9 | name and title of the Chief Financial Officer, Chief Operating | ||||||
10 | Officer, and any other officer or employee with responsibility | ||||||
11 | for preparing tax returns under this Act, along with the last 4 | ||||||
12 | digits of each of their social security numbers, and, in the
| ||||||
13 | case of
all other corporations, the name, title, and social | ||||||
14 | security number of
each corporate officer; (6) in the case of a | ||||||
15 | limited liability
company, the
name, social security number, | ||||||
16 | and FEIN number of
each
manager and member; and (7) such other | ||||||
17 | information
as the Department may reasonably require. The | ||||||
18 | application shall contain
an acceptance of responsibility | ||||||
19 | signed by the person or persons who will be
responsible for | ||||||
20 | filing returns and payment of the taxes due under this
Act. If | ||||||
21 | the applicant will sell tangible personal property at retail
| ||||||
22 | through vending machines, his application to register shall | ||||||
23 | indicate the
number of vending machines to be so operated. If | ||||||
24 | requested by the Department at any time, that person shall | ||||||
25 | verify the total number of vending machines he or she uses in | ||||||
26 | his or her business of selling tangible personal property at |
| |||||||
| |||||||
1 | retail. | ||||||
2 | The Department may deny a certificate of registration to | ||||||
3 | any applicant
if a person who is named as the owner, a partner, | ||||||
4 | a manager or member of a limited liability
company, or a | ||||||
5 | corporate officer of the applicant on the application for the | ||||||
6 | certificate of registration is or
has been named as the owner, | ||||||
7 | a partner, a manager or member of a limited
liability company, | ||||||
8 | or a corporate officer on the application for the certificate | ||||||
9 | of registration of another retailer
that is in default for | ||||||
10 | moneys due under this Act or any other tax or fee Act | ||||||
11 | administered by the Department. For purposes of this paragraph | ||||||
12 | only, in determining whether a person is in default for moneys | ||||||
13 | due, the Department shall include only amounts established as a | ||||||
14 | final liability within the 20 years prior to the date of the | ||||||
15 | Department's notice of denial of a certificate of registration. | ||||||
16 | The Department may require an applicant for a certificate | ||||||
17 | of registration hereunder to, at
the time of filing such | ||||||
18 | application, furnish a bond from a surety company
authorized to | ||||||
19 | do business in the State of Illinois, or an irrevocable
bank | ||||||
20 | letter of credit or a bond signed by 2
personal sureties who | ||||||
21 | have filed, with the Department, sworn statements
disclosing | ||||||
22 | net assets equal to at least 3 times the amount of the bond to
| ||||||
23 | be required of such applicant, or a bond secured by an | ||||||
24 | assignment of a bank
account or certificate of deposit, stocks | ||||||
25 | or bonds, conditioned upon the
applicant paying to the State of | ||||||
26 | Illinois all moneys becoming due under
this Act and under any |
| |||||||
| |||||||
1 | other State tax law or municipal or county tax
ordinance or | ||||||
2 | resolution under which the certificate of registration that is
| ||||||
3 | issued to the applicant under this Act will permit the | ||||||
4 | applicant to engage
in business without registering separately | ||||||
5 | under such other law, ordinance
or resolution. In making a | ||||||
6 | determination as to whether to require a bond or other | ||||||
7 | security, the Department shall take into consideration whether | ||||||
8 | the owner, any partner, any manager or member of a limited | ||||||
9 | liability company, or a corporate officer of the applicant is | ||||||
10 | or has been the owner, a partner, a manager or member of a | ||||||
11 | limited liability company, or a corporate officer of another | ||||||
12 | retailer that is in default for moneys due under this Act or | ||||||
13 | any other tax or fee Act administered by the Department; and | ||||||
14 | whether the owner, any partner, any manager or member of a | ||||||
15 | limited liability company, or a corporate officer of the | ||||||
16 | applicant is or has been the owner, a partner, a manager or | ||||||
17 | member of a limited liability company, or a corporate officer | ||||||
18 | of another retailer whose certificate of registration has been | ||||||
19 | revoked within the previous 5 years under this Act or any other | ||||||
20 | tax or fee Act administered by the Department. If a bond or | ||||||
21 | other security is required, the Department shall fix the amount | ||||||
22 | of the bond or other security, taking into consideration the | ||||||
23 | amount of money expected to become due from the applicant under | ||||||
24 | this Act and under any other State tax law or municipal or | ||||||
25 | county tax ordinance or resolution under which the certificate | ||||||
26 | of registration that is issued to the applicant under this Act |
| |||||||
| |||||||
1 | will permit the applicant to engage in business without | ||||||
2 | registering separately under such other law, ordinance, or | ||||||
3 | resolution. The amount of security required by
the Department | ||||||
4 | shall be such as, in its opinion, will protect the State of
| ||||||
5 | Illinois against failure to pay the amount which may become due | ||||||
6 | from the
applicant under this Act and under any other State tax | ||||||
7 | law or municipal or
county tax ordinance or resolution under | ||||||
8 | which the certificate of
registration that is issued to the | ||||||
9 | applicant under this Act will permit the
applicant to engage in | ||||||
10 | business without registering separately under such
other law, | ||||||
11 | ordinance or resolution, but the amount of the security | ||||||
12 | required
by the Department shall not exceed three times the | ||||||
13 | amount of the
applicant's average monthly tax liability, or | ||||||
14 | $50,000.00, whichever amount
is lower. | ||||||
15 | No certificate of registration under this Act shall be | ||||||
16 | issued by the
Department until the applicant provides the | ||||||
17 | Department with satisfactory
security, if required, as herein | ||||||
18 | provided for. | ||||||
19 | Upon receipt of the application for certificate of | ||||||
20 | registration in
proper form, and upon approval by the | ||||||
21 | Department of the security furnished
by the applicant, if | ||||||
22 | required, the Department shall issue to such applicant a
| ||||||
23 | certificate of registration which shall permit the person to | ||||||
24 | whom it is
issued to engage in the business of selling tangible | ||||||
25 | personal property at
retail in this State. The certificate of | ||||||
26 | registration shall be
conspicuously displayed at the place of |
| |||||||
| |||||||
1 | business which the person so
registered states in his | ||||||
2 | application to be the principal place of business
from which he | ||||||
3 | engages in the business of selling tangible personal property
| ||||||
4 | at retail in this State. | ||||||
5 | No certificate of registration issued to a taxpayer who | ||||||
6 | files returns
required by this Act on a monthly basis shall be | ||||||
7 | valid after the expiration
of 5 years from the date of its | ||||||
8 | issuance or last renewal. The expiration
date of a | ||||||
9 | sub-certificate of registration shall be that of the | ||||||
10 | certificate
of registration to which the sub-certificate | ||||||
11 | relates. A certificate of
registration shall automatically be | ||||||
12 | renewed, subject to revocation as
provided by this Act, for an | ||||||
13 | additional 5 years from the date of its
expiration unless | ||||||
14 | otherwise notified by the Department as provided by this
| ||||||
15 | paragraph. Where a taxpayer to whom a certificate of | ||||||
16 | registration is
issued under this Act is in default to the | ||||||
17 | State of Illinois for delinquent
returns or for moneys due
| ||||||
18 | under this Act or any other State tax law or municipal or | ||||||
19 | county ordinance
administered or enforced by the Department, | ||||||
20 | the Department shall, not less
than 60 days before the | ||||||
21 | expiration date of such certificate of
registration, give | ||||||
22 | notice to the taxpayer to whom the certificate was
issued of | ||||||
23 | the account period of the delinquent returns, the amount of
| ||||||
24 | tax,
penalty and interest due and owing from the
taxpayer, and | ||||||
25 | that the certificate of registration shall not be
automatically | ||||||
26 | renewed upon its expiration date unless the taxpayer, on or
|
| |||||||
| |||||||
1 | before the date of expiration, has filed and paid the | ||||||
2 | delinquent returns or
paid the defaulted amount in full. A
| ||||||
3 | taxpayer to whom such a notice is issued shall be deemed an | ||||||
4 | applicant for
renewal. The Department shall promulgate | ||||||
5 | regulations establishing
procedures for taxpayers who file | ||||||
6 | returns on a monthly basis but desire and
qualify to change to | ||||||
7 | a quarterly or yearly filing basis and will no longer
be | ||||||
8 | subject to renewal under this Section, and for taxpayers who | ||||||
9 | file
returns on a yearly or quarterly basis but who desire or | ||||||
10 | are required to
change to a monthly filing basis and will be | ||||||
11 | subject to renewal under
this Section. | ||||||
12 | The Department may in its discretion approve renewal by an | ||||||
13 | applicant
who is in default if, at the time of application for | ||||||
14 | renewal, the applicant
files all of the delinquent returns or | ||||||
15 | pays to the Department such
percentage of the defaulted amount | ||||||
16 | as may be
determined by the Department and agrees in writing to | ||||||
17 | waive all limitations
upon the Department for collection of the | ||||||
18 | remaining defaulted amount to the
Department over a period not | ||||||
19 | to exceed 5 years from the date of renewal of
the certificate; | ||||||
20 | however, no renewal application submitted by an applicant
who | ||||||
21 | is in default shall be approved if the immediately preceding | ||||||
22 | renewal by
the applicant was conditioned upon the installment | ||||||
23 | payment
agreement described in this Section. The payment | ||||||
24 | agreement herein provided
for shall be in addition to and not | ||||||
25 | in lieu of the security that may be required by
this Section of | ||||||
26 | a taxpayer who is no longer considered a prior continuous
|
| |||||||
| |||||||
1 | compliance taxpayer. The execution of the payment agreement as | ||||||
2 | provided in
this Act shall not toll the accrual of interest at | ||||||
3 | the statutory rate. | ||||||
4 | The Department may suspend a certificate of registration if | ||||||
5 | the Department finds that the person to whom the certificate of | ||||||
6 | registration has been issued knowingly sold contraband | ||||||
7 | cigarettes. | ||||||
8 | A certificate of registration issued under this Act more | ||||||
9 | than 5 years
before the effective date of this amendatory Act | ||||||
10 | of 1989 shall expire and
be subject to the renewal provisions | ||||||
11 | of this Section on the next
anniversary of the date of issuance | ||||||
12 | of such certificate which occurs more
than 6 months after the | ||||||
13 | effective date of this amendatory Act of 1989. A
certificate of | ||||||
14 | registration issued less than 5 years before the effective
date | ||||||
15 | of this amendatory Act of 1989 shall expire and be subject to | ||||||
16 | the
renewal provisions of this Section on the 5th anniversary | ||||||
17 | of the issuance
of the certificate. | ||||||
18 | If the person so registered states that he operates other | ||||||
19 | places of
business from which he engages in the business of | ||||||
20 | selling tangible personal
property or taxable service at retail | ||||||
21 | in this State, the Department shall furnish him with a
| ||||||
22 | sub-certificate of registration for each such place of | ||||||
23 | business, and the
applicant shall display the appropriate | ||||||
24 | sub-certificate of registration at
each such place of business. | ||||||
25 | All sub-certificates of registration shall
bear the same | ||||||
26 | registration number as that appearing upon the certificate of
|
| |||||||
| |||||||
1 | registration to which such sub-certificates relate. | ||||||
2 | If the applicant will sell tangible personal property at | ||||||
3 | retail through
vending machines, the Department shall furnish | ||||||
4 | him with a sub-certificate
of registration for each such | ||||||
5 | vending machine, and the applicant shall
display the | ||||||
6 | appropriate sub-certificate of registration on each such
| ||||||
7 | vending machine by attaching the sub-certificate of | ||||||
8 | registration to a
conspicuous part of such vending machine. If | ||||||
9 | a person who is registered to sell tangible personal property | ||||||
10 | at retail through vending machines adds an additional vending | ||||||
11 | machine or additional vending machines to the number of vending | ||||||
12 | machines he or she uses in his or her business of selling | ||||||
13 | tangible personal property at retail, he or she shall notify | ||||||
14 | the Department, on a form prescribed by the Department, to | ||||||
15 | request an additional sub-certificate or additional | ||||||
16 | sub-certificates of registration, as applicable. With each | ||||||
17 | such request, the applicant shall report the number of | ||||||
18 | sub-certificates of registration he or she is requesting as | ||||||
19 | well as the total number of vending machines from which he or | ||||||
20 | she makes retail sales. | ||||||
21 | Where the same person engages in 2 or more businesses of | ||||||
22 | selling
tangible personal property or taxable service at retail | ||||||
23 | in this State, which businesses are
substantially different in | ||||||
24 | character or engaged in under different trade
names or engaged | ||||||
25 | in under other substantially dissimilar circumstances (so
that | ||||||
26 | it is more practicable, from an accounting, auditing or |
| |||||||
| |||||||
1 | bookkeeping
standpoint, for such businesses to be separately | ||||||
2 | registered), the
Department may require or permit such person | ||||||
3 | (subject to the same
requirements concerning the furnishing of | ||||||
4 | security as those that are
provided for hereinbefore in this | ||||||
5 | Section as to each application for a
certificate of | ||||||
6 | registration) to apply for and obtain a separate certificate
of | ||||||
7 | registration for each such business or for any of such | ||||||
8 | businesses, under
a single certificate of registration | ||||||
9 | supplemented by related
sub-certificates of registration. | ||||||
10 | Any person who is registered under the "Retailers' | ||||||
11 | Occupation Tax Act"
as of March 8, 1963, and who, during the | ||||||
12 | 3-year period immediately prior to
March 8, 1963, or during a | ||||||
13 | continuous 3-year period part of which passed
immediately | ||||||
14 | before and the remainder of which passes immediately after
| ||||||
15 | March 8, 1963, has been so registered continuously and who is | ||||||
16 | determined by
the Department not to have been either delinquent | ||||||
17 | or deficient in the
payment of tax liability during that period | ||||||
18 | under this Act or under any
other State tax law or municipal or | ||||||
19 | county tax ordinance or resolution
under which the certificate | ||||||
20 | of registration that is issued to the
registrant under this Act | ||||||
21 | will permit the registrant to engage in business
without | ||||||
22 | registering separately under such other law, ordinance or
| ||||||
23 | resolution, shall be considered to be a Prior Continuous | ||||||
24 | Compliance
taxpayer. Also any taxpayer who has, as verified by | ||||||
25 | the Department,
faithfully and continuously complied with the | ||||||
26 | condition of his bond or
other security under the provisions of |
| |||||||
| |||||||
1 | this Act for a period of 3
consecutive years shall be | ||||||
2 | considered to be a Prior Continuous Compliance
taxpayer. | ||||||
3 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
4 | from all
requirements under this Act concerning the furnishing | ||||||
5 | of a bond or other security as a
condition precedent to his | ||||||
6 | being authorized to engage in the business of
selling tangible | ||||||
7 | personal property or taxable service at retail in this State. | ||||||
8 | This exemption
shall continue for each such taxpayer until such | ||||||
9 | time as he may be
determined by the Department to be delinquent | ||||||
10 | in the filing of any returns,
or is determined by the | ||||||
11 | Department (either through the Department's
issuance of a final | ||||||
12 | assessment which has become final under the Act, or by
the | ||||||
13 | taxpayer's filing of a return which admits tax that is not paid | ||||||
14 | to be
due) to be delinquent or deficient in the paying of any | ||||||
15 | tax under this Act
or under any other State tax law or | ||||||
16 | municipal or county tax ordinance or
resolution under which the | ||||||
17 | certificate of registration that is issued to
the registrant | ||||||
18 | under this Act will permit the registrant to engage in
business | ||||||
19 | without registering separately under such other law, ordinance | ||||||
20 | or
resolution, at which time that taxpayer shall become subject | ||||||
21 | to all the
financial responsibility requirements of this Act | ||||||
22 | and, as a condition of
being allowed to continue to engage in | ||||||
23 | the business of selling tangible
personal property or taxable | ||||||
24 | service at retail, may be required to post bond or other
| ||||||
25 | acceptable security with the Department covering liability | ||||||
26 | which such
taxpayer may thereafter incur. Any taxpayer who |
| |||||||
| |||||||
1 | fails to pay an admitted or
established liability under this | ||||||
2 | Act may also be required to post bond or
other acceptable | ||||||
3 | security with this Department guaranteeing the payment of
such | ||||||
4 | admitted or established liability. | ||||||
5 | No certificate of registration shall be issued to any | ||||||
6 | person who is in
default to the State of Illinois for moneys | ||||||
7 | due under this Act or under any
other State tax law or | ||||||
8 | municipal or county tax ordinance or resolution
under which the | ||||||
9 | certificate of registration that is issued to the applicant
| ||||||
10 | under this Act will permit the applicant to engage in business | ||||||
11 | without
registering separately under such other law, ordinance | ||||||
12 | or resolution. | ||||||
13 | Any person aggrieved by any decision of the Department | ||||||
14 | under this
Section may, within 20 days after notice of such | ||||||
15 | decision, protest and
request a hearing, whereupon the | ||||||
16 | Department shall give notice to such
person of the time and | ||||||
17 | place fixed for such hearing and shall hold a
hearing in | ||||||
18 | conformity with the provisions of this Act and then issue its
| ||||||
19 | final administrative decision in the matter to such person. In | ||||||
20 | the absence
of such a protest within 20 days, the Department's | ||||||
21 | decision shall become
final without any further determination | ||||||
22 | being made or notice given. | ||||||
23 | With respect to security other than bonds (upon which the | ||||||
24 | Department may
sue in the event of a forfeiture), if the | ||||||
25 | taxpayer fails to pay, when due,
any amount whose payment such | ||||||
26 | security guarantees, the Department shall,
after such |
| |||||||
| |||||||
1 | liability is admitted by the taxpayer or established by the
| ||||||
2 | Department through the issuance of a final assessment that has | ||||||
3 | become final
under the law, convert the security which that | ||||||
4 | taxpayer has furnished into
money for the State, after first | ||||||
5 | giving the taxpayer at least 10 days'
written notice, by | ||||||
6 | registered or certified mail, to pay the liability or
forfeit | ||||||
7 | such security to the Department. If the security consists of | ||||||
8 | stocks
or bonds or other securities which are listed on a | ||||||
9 | public exchange, the
Department shall sell such securities | ||||||
10 | through such public exchange. If
the security consists of an | ||||||
11 | irrevocable bank letter of credit, the
Department shall convert | ||||||
12 | the security in the manner provided for in the
Uniform | ||||||
13 | Commercial Code. If the security consists of a bank certificate | ||||||
14 | of
deposit, the Department shall convert the security into | ||||||
15 | money by demanding
and collecting the amount of such bank | ||||||
16 | certificate of deposit from the bank
which issued such | ||||||
17 | certificate. If the security consists of a type of stocks
or | ||||||
18 | other securities which are not listed on a public exchange, the
| ||||||
19 | Department shall sell such security to the highest and best | ||||||
20 | bidder after
giving at least 10 days' notice of the date, time | ||||||
21 | and place of the intended
sale by publication in the "State | ||||||
22 | Official Newspaper". If the Department
realizes more than the | ||||||
23 | amount of such liability from the security, plus the
expenses | ||||||
24 | incurred by the Department in converting the security into | ||||||
25 | money,
the Department shall pay such excess to the taxpayer who | ||||||
26 | furnished such
security, and the balance shall be paid into the |
| |||||||
| |||||||
1 | State Treasury. | ||||||
2 | The Department shall discharge any surety and shall release | ||||||
3 | and return
any security deposited, assigned, pledged or | ||||||
4 | otherwise provided to it by
a taxpayer under this Section | ||||||
5 | within 30 days after: | ||||||
6 | (1) such taxpayer becomes a Prior Continuous | ||||||
7 | Compliance taxpayer; or | ||||||
8 | (2) such taxpayer has ceased to collect receipts on | ||||||
9 | which he is required
to remit tax to the Department, has | ||||||
10 | filed a final tax return, and has paid
to the Department an | ||||||
11 | amount sufficient to discharge his remaining tax
| ||||||
12 | liability, as determined by the Department, under this Act | ||||||
13 | and under every
other State tax law or municipal or county | ||||||
14 | tax ordinance or resolution
under which the certificate of | ||||||
15 | registration issued under this Act permits
the registrant | ||||||
16 | to engage in business without registering separately under
| ||||||
17 | such other law, ordinance or resolution. The Department | ||||||
18 | shall make a final
determination of the taxpayer's | ||||||
19 | outstanding tax liability as expeditiously
as possible | ||||||
20 | after his final tax return has been filed; if the | ||||||
21 | Department
cannot make such final determination within 45 | ||||||
22 | days after receiving the
final tax return, within such | ||||||
23 | period it shall so notify the taxpayer,
stating its reasons | ||||||
24 | therefor. | ||||||
25 | (Source: P.A. 97-335, eff. 1-1-12; 98-496, eff. 1-1-14; 98-583, | ||||||
26 | eff. 1-1-14; 98-756, eff. 7-16-14; 98-974, eff. 1-1-15 .)
|
| |||||||
| |||||||
1 | (35 ILCS 120/2b) (from Ch. 120, par. 441b)
| ||||||
2 | Sec. 2b.
The Department may, after notice and a hearing as
| ||||||
3 | provided herein,
revoke the certificate of registration of any | ||||||
4 | person who violates any of
the provisions of this Act. Before | ||||||
5 | revocation of a certificate of
registration the Department | ||||||
6 | shall, within 90 days after non-compliance
and at least 7 days | ||||||
7 | prior to the date of the
hearing, give the person so accused | ||||||
8 | notice in writing of the charge against
him or her, and on the | ||||||
9 | date designated shall conduct a hearing upon
this matter. The | ||||||
10 | lapse of such 90 day period shall not preclude the
Department | ||||||
11 | from conducting revocation proceedings at a later date if
| ||||||
12 | necessary. Any hearing held under this Section shall be | ||||||
13 | conducted by the Director of
Revenue or by any officer or | ||||||
14 | employee of the Department designated, in
writing, by the | ||||||
15 | Director of Revenue.
| ||||||
16 | Upon the hearing of any such proceeding, the Director of | ||||||
17 | Revenue, or any
officer or employee of the Department | ||||||
18 | designated, in writing, by the
Director of Revenue, may | ||||||
19 | administer oaths and the Department may procure by
its subpoena | ||||||
20 | the attendance of witnesses and, by its subpoena duces tecum,
| ||||||
21 | the production of relevant books and papers. Any circuit court, | ||||||
22 | upon application
either of the accused or of the
Department, | ||||||
23 | may, by order duly entered, require the attendance of witnesses
| ||||||
24 | and the production of relevant books and papers, before the | ||||||
25 | Department in
any hearing relating to the revocation of |
| |||||||
| |||||||
1 | certificates of registration.
Upon refusal or neglect to obey | ||||||
2 | the order of the court, the court may
compel obedience thereof | ||||||
3 | by proceedings for contempt.
| ||||||
4 | The Department may, by application to any circuit court,
| ||||||
5 | obtain an injunction
restraining any person who engages in the
| ||||||
6 | business of selling tangible personal property or taxable | ||||||
7 | service at retail in this State
without a certificate of | ||||||
8 | registration (either because the certificate
of registration | ||||||
9 | has been revoked or because of a failure to obtain a
| ||||||
10 | certificate of registration in the first instance) from | ||||||
11 | engaging in such
business until such person, as if he or she | ||||||
12 | were a new applicant for
a certificate of registration, shall | ||||||
13 | comply with all of the conditions,
restrictions and | ||||||
14 | requirements of Section 2a of this Act and qualify for and
| ||||||
15 | obtain a
certificate of registration. Upon refusal or neglect | ||||||
16 | to obey the order of
the court, the court may compel obedience
| ||||||
17 | thereof by proceedings for contempt.
| ||||||
18 | It shall not be a defense in a proceeding before the | ||||||
19 | Department to
revoke a certificate of registration issued under | ||||||
20 | the Act, or in any action
by the Department to collect any tax | ||||||
21 | due under this Act, that the holder of
the certificate is a | ||||||
22 | party to an installment payment agreement under
Section 2a of | ||||||
23 | this Act if the liability which is the basis of the
revocation | ||||||
24 | proceeding, or the tax that is sought to be collected: (1) was
| ||||||
25 | incurred after the date of the agreement was approved by the | ||||||
26 | Department;
or (2) was incurred prior to the date the agreement |
| |||||||
| |||||||
1 | was approved by the
Department, but was not included in the | ||||||
2 | agreement; or (3) was included in
the agreement, but the | ||||||
3 | taxpayer is in default of the agreement.
| ||||||
4 | (Source: P.A. 86-338; 86-383; 86-1028.)
| ||||||
5 | (35 ILCS 120/2c) (from Ch. 120, par. 441c)
| ||||||
6 | Sec. 2c.
If the purchaser is not registered with the | ||||||
7 | Department as a
taxpayer, but claims to be a reseller of the | ||||||
8 | tangible personal property or taxable service in
such a way | ||||||
9 | that such resales are not taxable under this Act or under some
| ||||||
10 | other tax law which the Department may administer, such | ||||||
11 | purchaser (except
in the case of an out-of-State purchaser who | ||||||
12 | will always resell and deliver
the property to his customers | ||||||
13 | outside Illinois) shall apply to the
Department for a resale | ||||||
14 | number. Such applicant shall state facts which will
show the | ||||||
15 | Department why such applicant is not liable for tax under this | ||||||
16 | Act
or under some other tax law which the Department may | ||||||
17 | administer on any of
his resales and shall furnish such | ||||||
18 | additional information as the Department
may reasonably | ||||||
19 | require.
| ||||||
20 | Upon approval of the application, the Department shall | ||||||
21 | assign a resale
number to the applicant and shall certify such | ||||||
22 | number to him. The
Department may cancel any such number which | ||||||
23 | is obtained through
misrepresentation, or which is used to make | ||||||
24 | a purchase tax-free when the
purchase in fact is not a purchase | ||||||
25 | for resale, or which no longer applies
because of the |
| |||||||
| |||||||
1 | purchaser's having discontinued the making of tax exempt
| ||||||
2 | resales of the property.
| ||||||
3 | The Department may restrict the use of the number to one | ||||||
4 | year at a time
or to some other definite period if the | ||||||
5 | Department finds it impracticable
or otherwise inadvisable to | ||||||
6 | issue such numbers for indefinite periods.
| ||||||
7 | Except as provided hereinabove in this Section, a sale | ||||||
8 | shall be made
tax-free on the ground of being a sale for resale | ||||||
9 | if the purchaser has
an active registration number or resale | ||||||
10 | number from the Department and
furnishes that number to the | ||||||
11 | seller in connection with certifying to the
seller that any | ||||||
12 | sale to such purchaser is nontaxable because of being a
sale | ||||||
13 | for resale.
| ||||||
14 | Failure to present an active registration number or resale | ||||||
15 | number and a
certification to the seller that a sale is for | ||||||
16 | resale creates a presumption
that a sale is not for resale. | ||||||
17 | This presumption may be rebutted by other
evidence that all of | ||||||
18 | the seller's sales are sale for resale, or that a
particular | ||||||
19 | sale is a sale for resale.
| ||||||
20 | (Source: P.A. 83-1463.)
| ||||||
21 | (35 ILCS 120/3) (from Ch. 120, par. 442)
| ||||||
22 | Sec. 3. Except as provided in this Section, on or before | ||||||
23 | the twentieth
day of each calendar month, every person engaged | ||||||
24 | in the business of
selling tangible personal property or | ||||||
25 | taxable service at retail in this State during the
preceding |
| |||||||
| |||||||
1 | calendar month shall file a return with the Department, | ||||||
2 | stating: | ||||||
3 | 1. The name of the seller; | ||||||
4 | 2. His residence address and the address of his | ||||||
5 | principal place of
business and the address of the | ||||||
6 | principal place of business (if that is
a different | ||||||
7 | address) from which he engages in the business of selling
| ||||||
8 | tangible personal property or taxable service at retail in | ||||||
9 | this State; | ||||||
10 | 3. Total amount of receipts received by him during the | ||||||
11 | preceding
calendar month or quarter, as the case may be, | ||||||
12 | from sales of tangible
personal property and taxable | ||||||
13 | service , and from services other than taxable services | ||||||
14 | furnished, by him during such
preceding calendar month or | ||||||
15 | quarter; | ||||||
16 | 4. Total amount received by him during the preceding | ||||||
17 | calendar month or
quarter on charge and time sales of | ||||||
18 | tangible personal property and taxable service , and from
| ||||||
19 | services other than taxable services furnished, by him | ||||||
20 | prior to the month or quarter for which the return
is | ||||||
21 | filed; | ||||||
22 | 5. Deductions allowed by law; | ||||||
23 | 6. Gross receipts which were received by him during the | ||||||
24 | preceding
calendar month or quarter and upon the basis of | ||||||
25 | which the tax is imposed; | ||||||
26 | 7. The amount of credit provided in Section 2d of this |
| |||||||
| |||||||
1 | Act; | ||||||
2 | 8. The amount of tax due; | ||||||
3 | 9. The signature of the taxpayer; and | ||||||
4 | 10. Such other reasonable information as the | ||||||
5 | Department may require. | ||||||
6 | If a taxpayer fails to sign a return within 30 days after | ||||||
7 | the proper notice
and demand for signature by the Department, | ||||||
8 | the return shall be considered
valid and any amount shown to be | ||||||
9 | due on the return shall be deemed assessed. | ||||||
10 | Each return shall be accompanied by the statement of | ||||||
11 | prepaid tax issued
pursuant to Section 2e for which credit is | ||||||
12 | claimed. | ||||||
13 | Prior to October 1, 2003, and on and after September 1, | ||||||
14 | 2004 a retailer may accept a Manufacturer's Purchase
Credit
| ||||||
15 | certification from a purchaser in satisfaction of Use Tax
as | ||||||
16 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
17 | provides the
appropriate documentation as required by Section | ||||||
18 | 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| ||||||
19 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
20 | and on and after September 1, 2004 as provided
in
Section 3-85 | ||||||
21 | of the Use Tax Act, may be used by that retailer to
satisfy | ||||||
22 | Retailers' Occupation Tax liability in the amount claimed in
| ||||||
23 | the certification, not to exceed 6.25% of the receipts
subject | ||||||
24 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
25 | Credit
reported on any original or amended return
filed under
| ||||||
26 | this Act after October 20, 2003 for reporting periods prior to |
| |||||||
| |||||||
1 | September 1, 2004 shall be disallowed. Manufacturer's | ||||||
2 | Purchaser Credit reported on annual returns due on or after | ||||||
3 | January 1, 2005 will be disallowed for periods prior to | ||||||
4 | September 1, 2004. No Manufacturer's
Purchase Credit may be | ||||||
5 | used after September 30, 2003 through August 31, 2004 to
| ||||||
6 | satisfy any
tax liability imposed under this Act, including any | ||||||
7 | audit liability. | ||||||
8 | The Department may require returns to be filed on a | ||||||
9 | quarterly basis.
If so required, a return for each calendar | ||||||
10 | quarter shall be filed on or
before the twentieth day of the | ||||||
11 | calendar month following the end of such
calendar quarter. The | ||||||
12 | taxpayer shall also file a return with the
Department for each | ||||||
13 | of the first two months of each calendar quarter, on or
before | ||||||
14 | the twentieth day of the following calendar month, stating: | ||||||
15 | 1. The name of the seller; | ||||||
16 | 2. The address of the principal place of business from | ||||||
17 | which he engages
in the business of selling tangible | ||||||
18 | personal property at retail in this State; | ||||||
19 | 3. The total amount of taxable receipts received by him | ||||||
20 | during the
preceding calendar month from sales of tangible | ||||||
21 | personal property and taxable services by him
during such | ||||||
22 | preceding calendar month, including receipts from charge | ||||||
23 | and
time sales, but less all deductions allowed by law; | ||||||
24 | 4. The amount of credit provided in Section 2d of this | ||||||
25 | Act; | ||||||
26 | 5. The amount of tax due; and |
| |||||||
| |||||||
1 | 6. Such other reasonable information as the Department | ||||||
2 | may
require. | ||||||
3 | Beginning on October 1, 2003, any person who is not a | ||||||
4 | licensed
distributor, importing distributor, or manufacturer, | ||||||
5 | as defined in the Liquor
Control Act of 1934, but is engaged in | ||||||
6 | the business of
selling, at retail, alcoholic liquor
shall file | ||||||
7 | a statement with the Department of Revenue, in a format
and at | ||||||
8 | a time prescribed by the Department, showing the total amount | ||||||
9 | paid for
alcoholic liquor purchased during the preceding month | ||||||
10 | and such other
information as is reasonably required by the | ||||||
11 | Department.
The Department may adopt rules to require
that this | ||||||
12 | statement be filed in an electronic or telephonic format. Such | ||||||
13 | rules
may provide for exceptions from the filing requirements | ||||||
14 | of this paragraph. For
the
purposes of this
paragraph, the term | ||||||
15 | "alcoholic liquor" shall have the meaning prescribed in the
| ||||||
16 | Liquor Control Act of 1934. | ||||||
17 | Beginning on October 1, 2003, every distributor, importing | ||||||
18 | distributor, and
manufacturer of alcoholic liquor as defined in | ||||||
19 | the Liquor Control Act of 1934,
shall file a
statement with the | ||||||
20 | Department of Revenue, no later than the 10th day of the
month | ||||||
21 | for the
preceding month during which transactions occurred, by | ||||||
22 | electronic means,
showing the
total amount of gross receipts | ||||||
23 | from the sale of alcoholic liquor sold or
distributed during
| ||||||
24 | the preceding month to purchasers; identifying the purchaser to | ||||||
25 | whom it was
sold or
distributed; the purchaser's tax | ||||||
26 | registration number; and such other
information
reasonably |
| |||||||
| |||||||
1 | required by the Department. A distributor, importing | ||||||
2 | distributor, or manufacturer of alcoholic liquor must | ||||||
3 | personally deliver, mail, or provide by electronic means to | ||||||
4 | each retailer listed on the monthly statement a report | ||||||
5 | containing a cumulative total of that distributor's, importing | ||||||
6 | distributor's, or manufacturer's total sales of alcoholic | ||||||
7 | liquor to that retailer no later than the 10th day of the month | ||||||
8 | for the preceding month during which the transaction occurred. | ||||||
9 | The distributor, importing distributor, or manufacturer shall | ||||||
10 | notify the retailer as to the method by which the distributor, | ||||||
11 | importing distributor, or manufacturer will provide the sales | ||||||
12 | information. If the retailer is unable to receive the sales | ||||||
13 | information by electronic means, the distributor, importing | ||||||
14 | distributor, or manufacturer shall furnish the sales | ||||||
15 | information by personal delivery or by mail. For purposes of | ||||||
16 | this paragraph, the term "electronic means" includes, but is | ||||||
17 | not limited to, the use of a secure Internet website, e-mail, | ||||||
18 | or facsimile. | ||||||
19 | If a total amount of less than $1 is payable, refundable or | ||||||
20 | creditable,
such amount shall be disregarded if it is less than | ||||||
21 | 50 cents and shall be
increased to $1 if it is 50 cents or more. | ||||||
22 | Beginning October 1, 1993,
a taxpayer who has an average | ||||||
23 | monthly tax liability of $150,000 or more shall
make all | ||||||
24 | payments required by rules of the
Department by electronic | ||||||
25 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
26 | an average monthly tax liability of $100,000 or more shall make |
| |||||||
| |||||||
1 | all
payments required by rules of the Department by electronic | ||||||
2 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
3 | an average monthly tax liability
of $50,000 or more shall make | ||||||
4 | all
payments required by rules of the Department by electronic | ||||||
5 | funds transfer.
Beginning October 1, 2000, a taxpayer who has | ||||||
6 | an annual tax liability of
$200,000 or more shall make all | ||||||
7 | payments required by rules of the Department by
electronic | ||||||
8 | funds transfer. The term "annual tax liability" shall be the | ||||||
9 | sum of
the taxpayer's liabilities under this Act, and under all | ||||||
10 | other State and local
occupation and use tax laws administered | ||||||
11 | by the Department, for the immediately
preceding calendar year.
| ||||||
12 | The term "average monthly tax liability" shall be the sum of | ||||||
13 | the
taxpayer's liabilities under this
Act, and under all other | ||||||
14 | State and local occupation and use tax
laws administered by the | ||||||
15 | Department, for the immediately preceding calendar
year | ||||||
16 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
17 | a tax liability in the
amount set forth in subsection (b) of | ||||||
18 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
19 | all payments required by rules of the Department by
electronic | ||||||
20 | funds transfer. | ||||||
21 | Before August 1 of each year beginning in 1993, the | ||||||
22 | Department shall
notify all taxpayers required to make payments | ||||||
23 | by electronic funds
transfer. All taxpayers
required to make | ||||||
24 | payments by electronic funds transfer shall make those
payments | ||||||
25 | for
a minimum of one year beginning on October 1. | ||||||
26 | Any taxpayer not required to make payments by electronic |
| |||||||
| |||||||
1 | funds transfer may
make payments by electronic funds transfer | ||||||
2 | with
the permission of the Department. | ||||||
3 | All taxpayers required to make payment by electronic funds | ||||||
4 | transfer and
any taxpayers authorized to voluntarily make | ||||||
5 | payments by electronic funds
transfer shall make those payments | ||||||
6 | in the manner authorized by the Department. | ||||||
7 | The Department shall adopt such rules as are necessary to | ||||||
8 | effectuate a
program of electronic funds transfer and the | ||||||
9 | requirements of this Section. | ||||||
10 | Any amount which is required to be shown or reported on any | ||||||
11 | return or
other document under this Act shall, if such amount | ||||||
12 | is not a whole-dollar
amount, be increased to the nearest | ||||||
13 | whole-dollar amount in any case where
the fractional part of a | ||||||
14 | dollar is 50 cents or more, and decreased to the
nearest | ||||||
15 | whole-dollar amount where the fractional part of a dollar is | ||||||
16 | less
than 50 cents. | ||||||
17 | If the retailer is otherwise required to file a monthly | ||||||
18 | return and if the
retailer's average monthly tax liability to | ||||||
19 | the Department does not exceed
$200, the Department may | ||||||
20 | authorize his returns to be filed on a quarter
annual basis, | ||||||
21 | with the return for January, February and March of a given
year | ||||||
22 | being due by April 20 of such year; with the return for April, | ||||||
23 | May and
June of a given year being due by July 20 of such year; | ||||||
24 | with the return for
July, August and September of a given year | ||||||
25 | being due by October 20 of such
year, and with the return for | ||||||
26 | October, November and December of a given
year being due by |
| |||||||
| |||||||
1 | January 20 of the following year. | ||||||
2 | If the retailer is otherwise required to file a monthly or | ||||||
3 | quarterly
return and if the retailer's average monthly tax | ||||||
4 | liability with the
Department does not exceed $50, the | ||||||
5 | Department may authorize his returns to
be filed on an annual | ||||||
6 | basis, with the return for a given year being due by
January 20 | ||||||
7 | of the following year. | ||||||
8 | Such quarter annual and annual returns, as to form and | ||||||
9 | substance,
shall be subject to the same requirements as monthly | ||||||
10 | returns. | ||||||
11 | Notwithstanding any other provision in this Act concerning | ||||||
12 | the time
within which a retailer may file his return, in the | ||||||
13 | case of any retailer
who ceases to engage in a kind of business | ||||||
14 | which makes him responsible
for filing returns under this Act, | ||||||
15 | such retailer shall file a final
return under this Act with the | ||||||
16 | Department not more than one month after
discontinuing such | ||||||
17 | business. | ||||||
18 | Where the same person has more than one business registered | ||||||
19 | with the
Department under separate registrations under this | ||||||
20 | Act, such person may
not file each return that is due as a | ||||||
21 | single return covering all such
registered businesses, but | ||||||
22 | shall file separate returns for each such
registered business. | ||||||
23 | In addition, with respect to motor vehicles, watercraft,
| ||||||
24 | aircraft, and trailers that are required to be registered with | ||||||
25 | an agency of
this State, every
retailer selling this kind of | ||||||
26 | tangible personal property shall file,
with the Department, |
| |||||||
| |||||||
1 | upon a form to be prescribed and supplied by the
Department, a | ||||||
2 | separate return for each such item of tangible personal
| ||||||
3 | property which the retailer sells, except that if, in the same
| ||||||
4 | transaction, (i) a retailer of aircraft, watercraft, motor | ||||||
5 | vehicles or
trailers transfers more than one aircraft, | ||||||
6 | watercraft, motor
vehicle or trailer to another aircraft, | ||||||
7 | watercraft, motor vehicle
retailer or trailer retailer for the | ||||||
8 | purpose of resale
or (ii) a retailer of aircraft, watercraft, | ||||||
9 | motor vehicles, or trailers
transfers more than one aircraft, | ||||||
10 | watercraft, motor vehicle, or trailer to a
purchaser for use as | ||||||
11 | a qualifying rolling stock as provided in Section 2-5 of
this | ||||||
12 | Act, then
that seller may report the transfer of all aircraft,
| ||||||
13 | watercraft, motor vehicles or trailers involved in that | ||||||
14 | transaction to the
Department on the same uniform | ||||||
15 | invoice-transaction reporting return form. For
purposes of | ||||||
16 | this Section, "watercraft" means a Class 2, Class 3, or Class 4
| ||||||
17 | watercraft as defined in Section 3-2 of the Boat Registration | ||||||
18 | and Safety Act, a
personal watercraft, or any boat equipped | ||||||
19 | with an inboard motor. | ||||||
20 | Any retailer who sells only motor vehicles, watercraft,
| ||||||
21 | aircraft, or trailers that are required to be registered with | ||||||
22 | an agency of
this State, so that all
retailers' occupation tax | ||||||
23 | liability is required to be reported, and is
reported, on such | ||||||
24 | transaction reporting returns and who is not otherwise
required | ||||||
25 | to file monthly or quarterly returns, need not file monthly or
| ||||||
26 | quarterly returns. However, those retailers shall be required |
| |||||||
| |||||||
1 | to
file returns on an annual basis. | ||||||
2 | The transaction reporting return, in the case of motor | ||||||
3 | vehicles
or trailers that are required to be registered with an | ||||||
4 | agency of this
State, shall
be the same document as the Uniform | ||||||
5 | Invoice referred to in Section 5-402
of The Illinois Vehicle | ||||||
6 | Code and must show the name and address of the
seller; the name | ||||||
7 | and address of the purchaser; the amount of the selling
price | ||||||
8 | including the amount allowed by the retailer for traded-in
| ||||||
9 | property, if any; the amount allowed by the retailer for the | ||||||
10 | traded-in
tangible personal property, if any, to the extent to | ||||||
11 | which Section 1 of
this Act allows an exemption for the value | ||||||
12 | of traded-in property; the
balance payable after deducting such | ||||||
13 | trade-in allowance from the total
selling price; the amount of | ||||||
14 | tax due from the retailer with respect to
such transaction; the | ||||||
15 | amount of tax collected from the purchaser by the
retailer on | ||||||
16 | such transaction (or satisfactory evidence that such tax is
not | ||||||
17 | due in that particular instance, if that is claimed to be the | ||||||
18 | fact);
the place and date of the sale; a sufficient | ||||||
19 | identification of the
property sold; such other information as | ||||||
20 | is required in Section 5-402 of
The Illinois Vehicle Code, and | ||||||
21 | such other information as the Department
may reasonably | ||||||
22 | require. | ||||||
23 | The transaction reporting return in the case of watercraft
| ||||||
24 | or aircraft must show
the name and address of the seller; the | ||||||
25 | name and address of the
purchaser; the amount of the selling | ||||||
26 | price including the amount allowed
by the retailer for |
| |||||||
| |||||||
1 | traded-in property, if any; the amount allowed by
the retailer | ||||||
2 | for the traded-in tangible personal property, if any, to
the | ||||||
3 | extent to which Section 1 of this Act allows an exemption for | ||||||
4 | the
value of traded-in property; the balance payable after | ||||||
5 | deducting such
trade-in allowance from the total selling price; | ||||||
6 | the amount of tax due
from the retailer with respect to such | ||||||
7 | transaction; the amount of tax
collected from the purchaser by | ||||||
8 | the retailer on such transaction (or
satisfactory evidence that | ||||||
9 | such tax is not due in that particular
instance, if that is | ||||||
10 | claimed to be the fact); the place and date of the
sale, a | ||||||
11 | sufficient identification of the property sold, and such other
| ||||||
12 | information as the Department may reasonably require. | ||||||
13 | Such transaction reporting return shall be filed not later | ||||||
14 | than 20
days after the day of delivery of the item that is | ||||||
15 | being sold, but may
be filed by the retailer at any time sooner | ||||||
16 | than that if he chooses to
do so. The transaction reporting | ||||||
17 | return and tax remittance or proof of
exemption from the | ||||||
18 | Illinois use tax may be transmitted to the Department
by way of | ||||||
19 | the State agency with which, or State officer with whom the
| ||||||
20 | tangible personal property must be titled or registered (if | ||||||
21 | titling or
registration is required) if the Department and such | ||||||
22 | agency or State
officer determine that this procedure will | ||||||
23 | expedite the processing of
applications for title or | ||||||
24 | registration. | ||||||
25 | With each such transaction reporting return, the retailer | ||||||
26 | shall remit
the proper amount of tax due (or shall submit |
| |||||||
| |||||||
1 | satisfactory evidence that
the sale is not taxable if that is | ||||||
2 | the case), to the Department or its
agents, whereupon the | ||||||
3 | Department shall issue, in the purchaser's name, a
use tax | ||||||
4 | receipt (or a certificate of exemption if the Department is
| ||||||
5 | satisfied that the particular sale is tax exempt) which such | ||||||
6 | purchaser
may submit to the agency with which, or State officer | ||||||
7 | with whom, he must
title or register the tangible personal | ||||||
8 | property that is involved (if
titling or registration is | ||||||
9 | required) in support of such purchaser's
application for an | ||||||
10 | Illinois certificate or other evidence of title or
registration | ||||||
11 | to such tangible personal property. | ||||||
12 | No retailer's failure or refusal to remit tax under this | ||||||
13 | Act
precludes a user, who has paid the proper tax to the | ||||||
14 | retailer, from
obtaining his certificate of title or other | ||||||
15 | evidence of title or
registration (if titling or registration | ||||||
16 | is required) upon satisfying
the Department that such user has | ||||||
17 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
18 | Department shall adopt appropriate rules to carry out
the | ||||||
19 | mandate of this paragraph. | ||||||
20 | If the user who would otherwise pay tax to the retailer | ||||||
21 | wants the
transaction reporting return filed and the payment of | ||||||
22 | the tax or proof
of exemption made to the Department before the | ||||||
23 | retailer is willing to
take these actions and such user has not | ||||||
24 | paid the tax to the retailer,
such user may certify to the fact | ||||||
25 | of such delay by the retailer and may
(upon the Department | ||||||
26 | being satisfied of the truth of such certification)
transmit |
| |||||||
| |||||||
1 | the information required by the transaction reporting return
| ||||||
2 | and the remittance for tax or proof of exemption directly to | ||||||
3 | the
Department and obtain his tax receipt or exemption | ||||||
4 | determination, in
which event the transaction reporting return | ||||||
5 | and tax remittance (if a
tax payment was required) shall be | ||||||
6 | credited by the Department to the
proper retailer's account | ||||||
7 | with the Department, but without the 2.1% or 1.75%
discount | ||||||
8 | provided for in this Section being allowed. When the user pays
| ||||||
9 | the tax directly to the Department, he shall pay the tax in the | ||||||
10 | same
amount and in the same form in which it would be remitted | ||||||
11 | if the tax had
been remitted to the Department by the retailer. | ||||||
12 | Refunds made by the seller during the preceding return | ||||||
13 | period to
purchasers, on account of tangible personal property | ||||||
14 | returned to the
seller or taxable services not performed in | ||||||
15 | full , shall be allowed as a deduction under subdivision 5 of | ||||||
16 | his monthly
or quarterly return, as the case may be, in case | ||||||
17 | the
seller had theretofore included the receipts from the sale | ||||||
18 | of such
tangible personal property in a return filed by him and | ||||||
19 | had paid the tax
imposed by this Act with respect to such | ||||||
20 | receipts. | ||||||
21 | Where the seller is a corporation, the return filed on | ||||||
22 | behalf of such
corporation shall be signed by the president, | ||||||
23 | vice-president, secretary
or treasurer or by the properly | ||||||
24 | accredited agent of such corporation. | ||||||
25 | Where the seller is a limited liability company, the return | ||||||
26 | filed on behalf
of the limited liability company shall be |
| |||||||
| |||||||
1 | signed by a manager, member, or
properly accredited agent of | ||||||
2 | the limited liability company. | ||||||
3 | Except as provided in this Section, the retailer filing the | ||||||
4 | return
under this Section shall, at the time of filing such | ||||||
5 | return, pay to the
Department the amount of tax imposed by this | ||||||
6 | Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% | ||||||
7 | on and after January 1, 1990, or $5 per
calendar year, | ||||||
8 | whichever is greater, which is allowed to
reimburse the | ||||||
9 | retailer for the expenses incurred in keeping records,
| ||||||
10 | preparing and filing returns, remitting the tax and supplying | ||||||
11 | data to
the Department on request. Any prepayment made pursuant | ||||||
12 | to Section 2d
of this Act shall be included in the amount on | ||||||
13 | which such
2.1% or 1.75% discount is computed. In the case of | ||||||
14 | retailers who report
and pay the tax on a transaction by | ||||||
15 | transaction basis, as provided in this
Section, such discount | ||||||
16 | shall be taken with each such tax remittance
instead of when | ||||||
17 | such retailer files his periodic return. The Department may | ||||||
18 | disallow the discount for retailers whose certificate of | ||||||
19 | registration is revoked at the time the return is filed, but | ||||||
20 | only if the Department's decision to revoke the certificate of | ||||||
21 | registration has become final. | ||||||
22 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
23 | tax liability
to the Department
under this Act, the Use Tax | ||||||
24 | Act, the Service Occupation Tax
Act, and the Service Use Tax | ||||||
25 | Act, excluding any liability for prepaid sales
tax to be | ||||||
26 | remitted in accordance with Section 2d of this Act, was
$10,000
|
| |||||||
| |||||||
1 | or more during the preceding 4 complete calendar quarters, he | ||||||
2 | shall file a
return with the Department each month by the 20th | ||||||
3 | day of the month next
following the month during which such tax | ||||||
4 | liability is incurred and shall
make payments to the Department | ||||||
5 | on or before the 7th, 15th, 22nd and last
day of the month | ||||||
6 | during which such liability is incurred.
On and after October | ||||||
7 | 1, 2000, if the taxpayer's average monthly tax liability
to the | ||||||
8 | Department under this Act, the Use Tax Act, the Service | ||||||
9 | Occupation Tax
Act, and the Service Use Tax Act, excluding any | ||||||
10 | liability for prepaid sales tax
to be remitted in accordance | ||||||
11 | with Section 2d of this Act, was $20,000 or more
during the | ||||||
12 | preceding 4 complete calendar quarters, he shall file a return | ||||||
13 | with
the Department each month by the 20th day of the month | ||||||
14 | next following the month
during which such tax liability is | ||||||
15 | incurred and shall make payment to the
Department on or before | ||||||
16 | the 7th, 15th, 22nd and last day of the month during
which such | ||||||
17 | liability is incurred.
If the month
during which such tax | ||||||
18 | liability is incurred began prior to January 1, 1985,
each | ||||||
19 | payment shall be in an amount equal to 1/4 of the taxpayer's | ||||||
20 | actual
liability for the month or an amount set by the | ||||||
21 | Department not to exceed
1/4 of the average monthly liability | ||||||
22 | of the taxpayer to the Department for
the preceding 4 complete | ||||||
23 | calendar quarters (excluding the month of highest
liability and | ||||||
24 | the month of lowest liability in such 4 quarter period). If
the | ||||||
25 | month during which such tax liability is incurred begins on or | ||||||
26 | after
January 1, 1985 and prior to January 1, 1987, each |
| |||||||
| |||||||
1 | payment shall be in an
amount equal to 22.5% of the taxpayer's | ||||||
2 | actual liability for the month or
27.5% of the taxpayer's | ||||||
3 | liability for the same calendar
month of the preceding year. If | ||||||
4 | the month during which such tax
liability is incurred begins on | ||||||
5 | or after January 1, 1987 and prior to
January 1, 1988, each | ||||||
6 | payment shall be in an amount equal to 22.5% of the
taxpayer's | ||||||
7 | actual liability for the month or 26.25% of the taxpayer's
| ||||||
8 | liability for the same calendar month of the preceding year. If | ||||||
9 | the month
during which such tax liability is incurred begins on | ||||||
10 | or after January 1,
1988, and prior to January 1, 1989, or | ||||||
11 | begins on or after January 1, 1996, each
payment shall be in an | ||||||
12 | amount
equal to 22.5% of the taxpayer's actual liability for | ||||||
13 | the month or 25% of
the taxpayer's liability for the same | ||||||
14 | calendar month of the preceding year. If
the month during which | ||||||
15 | such tax liability is incurred begins on or after
January 1, | ||||||
16 | 1989, and prior to January 1, 1996, each payment shall be in an
| ||||||
17 | amount equal to 22.5% of the
taxpayer's actual liability for | ||||||
18 | the month or 25% of the taxpayer's
liability for the same | ||||||
19 | calendar month of the preceding year or 100% of the
taxpayer's | ||||||
20 | actual liability for the quarter monthly reporting period. The
| ||||||
21 | amount of such quarter monthly payments shall be credited | ||||||
22 | against
the final tax liability of the taxpayer's return for | ||||||
23 | that month. Before
October 1, 2000, once
applicable, the | ||||||
24 | requirement of the making of quarter monthly payments to
the | ||||||
25 | Department by taxpayers having an average monthly tax liability | ||||||
26 | of
$10,000 or more as determined in the manner provided above
|
| |||||||
| |||||||
1 | shall continue
until such taxpayer's average monthly liability | ||||||
2 | to the Department during
the preceding 4 complete calendar | ||||||
3 | quarters (excluding the month of highest
liability and the | ||||||
4 | month of lowest liability) is less than
$9,000, or until
such | ||||||
5 | taxpayer's average monthly liability to the Department as | ||||||
6 | computed for
each calendar quarter of the 4 preceding complete | ||||||
7 | calendar quarter period
is less than $10,000. However, if a | ||||||
8 | taxpayer can show the
Department that
a substantial change in | ||||||
9 | the taxpayer's business has occurred which causes
the taxpayer | ||||||
10 | to anticipate that his average monthly tax liability for the
| ||||||
11 | reasonably foreseeable future will fall below the $10,000 | ||||||
12 | threshold
stated above, then
such taxpayer
may petition the | ||||||
13 | Department for a change in such taxpayer's reporting
status. On | ||||||
14 | and after October 1, 2000, once applicable, the requirement of
| ||||||
15 | the making of quarter monthly payments to the Department by | ||||||
16 | taxpayers having an
average monthly tax liability of $20,000 or | ||||||
17 | more as determined in the manner
provided above shall continue | ||||||
18 | until such taxpayer's average monthly liability
to the | ||||||
19 | Department during the preceding 4 complete calendar quarters | ||||||
20 | (excluding
the month of highest liability and the month of | ||||||
21 | lowest liability) is less than
$19,000 or until such taxpayer's | ||||||
22 | average monthly liability to the Department as
computed for | ||||||
23 | each calendar quarter of the 4 preceding complete calendar | ||||||
24 | quarter
period is less than $20,000. However, if a taxpayer can | ||||||
25 | show the Department
that a substantial change in the taxpayer's | ||||||
26 | business has occurred which causes
the taxpayer to anticipate |
| |||||||
| |||||||
1 | that his average monthly tax liability for the
reasonably | ||||||
2 | foreseeable future will fall below the $20,000 threshold stated
| ||||||
3 | above, then such taxpayer may petition the Department for a | ||||||
4 | change in such
taxpayer's reporting status. The Department | ||||||
5 | shall change such taxpayer's
reporting status
unless it finds | ||||||
6 | that such change is seasonal in nature and not likely to be
| ||||||
7 | long term. If any such quarter monthly payment is not paid at | ||||||
8 | the time or
in the amount required by this Section, then the | ||||||
9 | taxpayer shall be liable for
penalties and interest on the | ||||||
10 | difference
between the minimum amount due as a payment and the | ||||||
11 | amount of such quarter
monthly payment actually and timely | ||||||
12 | paid, except insofar as the
taxpayer has previously made | ||||||
13 | payments for that month to the Department in
excess of the | ||||||
14 | minimum payments previously due as provided in this Section.
| ||||||
15 | The Department shall make reasonable rules and regulations to | ||||||
16 | govern the
quarter monthly payment amount and quarter monthly | ||||||
17 | payment dates for
taxpayers who file on other than a calendar | ||||||
18 | monthly basis. | ||||||
19 | The provisions of this paragraph apply before October 1, | ||||||
20 | 2001.
Without regard to whether a taxpayer is required to make | ||||||
21 | quarter monthly
payments as specified above, any taxpayer who | ||||||
22 | is required by Section 2d
of this Act to collect and remit | ||||||
23 | prepaid taxes and has collected prepaid
taxes which average in | ||||||
24 | excess of $25,000 per month during the preceding
2 complete | ||||||
25 | calendar quarters, shall file a return with the Department as
| ||||||
26 | required by Section 2f and shall make payments to the |
| |||||||
| |||||||
1 | Department on or before
the 7th, 15th, 22nd and last day of the | ||||||
2 | month during which such liability
is incurred. If the month | ||||||
3 | during which such tax liability is incurred
began prior to | ||||||
4 | September 1, 1985 ( the effective date of Public Act 84-221) | ||||||
5 | this amendatory Act of 1985 , each
payment shall be in an amount | ||||||
6 | not less than 22.5% of the taxpayer's actual
liability under | ||||||
7 | Section 2d. If the month during which such tax liability
is | ||||||
8 | incurred begins on or after January 1, 1986, each payment shall | ||||||
9 | be in an
amount equal to 22.5% of the taxpayer's actual | ||||||
10 | liability for the month or
27.5% of the taxpayer's liability | ||||||
11 | for the same calendar month of the
preceding calendar year. If | ||||||
12 | the month during which such tax liability is
incurred begins on | ||||||
13 | or after January 1, 1987, each payment shall be in an
amount | ||||||
14 | equal to 22.5% of the taxpayer's actual liability for the month | ||||||
15 | or
26.25% of the taxpayer's liability for the same calendar | ||||||
16 | month of the
preceding year. The amount of such quarter monthly | ||||||
17 | payments shall be
credited against the final tax liability of | ||||||
18 | the taxpayer's return for that
month filed under this Section | ||||||
19 | or Section 2f, as the case may be. Once
applicable, the | ||||||
20 | requirement of the making of quarter monthly payments to
the | ||||||
21 | Department pursuant to this paragraph shall continue until such
| ||||||
22 | taxpayer's average monthly prepaid tax collections during the | ||||||
23 | preceding 2
complete calendar quarters is $25,000 or less. If | ||||||
24 | any such quarter monthly
payment is not paid at the time or in | ||||||
25 | the amount required, the taxpayer
shall be liable for penalties | ||||||
26 | and interest on such difference, except
insofar as the taxpayer |
| |||||||
| |||||||
1 | has previously made payments for that month in
excess of the | ||||||
2 | minimum payments previously due. | ||||||
3 | The provisions of this paragraph apply on and after October | ||||||
4 | 1, 2001.
Without regard to whether a taxpayer is required to | ||||||
5 | make quarter monthly
payments as specified above, any taxpayer | ||||||
6 | who is required by Section 2d of this
Act to collect and remit | ||||||
7 | prepaid taxes and has collected prepaid taxes that
average in | ||||||
8 | excess of $20,000 per month during the preceding 4 complete | ||||||
9 | calendar
quarters shall file a return with the Department as | ||||||
10 | required by Section 2f
and shall make payments to the | ||||||
11 | Department on or before the 7th, 15th, 22nd and
last day of the | ||||||
12 | month during which the liability is incurred. Each payment
| ||||||
13 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
14 | liability for the
month or 25% of the taxpayer's liability for | ||||||
15 | the same calendar month of the
preceding year. The amount of | ||||||
16 | the quarter monthly payments shall be credited
against the | ||||||
17 | final tax liability of the taxpayer's return for that month | ||||||
18 | filed
under this Section or Section 2f, as the case may be. | ||||||
19 | Once applicable, the
requirement of the making of quarter | ||||||
20 | monthly payments to the Department
pursuant to this paragraph | ||||||
21 | shall continue until the taxpayer's average monthly
prepaid tax | ||||||
22 | collections during the preceding 4 complete calendar quarters
| ||||||
23 | (excluding the month of highest liability and the month of | ||||||
24 | lowest liability) is
less than $19,000 or until such taxpayer's | ||||||
25 | average monthly liability to the
Department as computed for | ||||||
26 | each calendar quarter of the 4 preceding complete
calendar |
| |||||||
| |||||||
1 | quarters is less than $20,000. If any such quarter monthly | ||||||
2 | payment is
not paid at the time or in the amount required, the | ||||||
3 | taxpayer shall be liable
for penalties and interest on such | ||||||
4 | difference, except insofar as the taxpayer
has previously made | ||||||
5 | payments for that month in excess of the minimum payments
| ||||||
6 | previously due. | ||||||
7 | If any payment provided for in this Section exceeds
the | ||||||
8 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
9 | Service
Occupation Tax Act and the Service Use Tax Act, as | ||||||
10 | shown on an original
monthly return, the Department shall, if | ||||||
11 | requested by the taxpayer, issue to
the taxpayer a credit | ||||||
12 | memorandum no later than 30 days after the date of
payment. The | ||||||
13 | credit evidenced by such credit memorandum may
be assigned by | ||||||
14 | the taxpayer to a similar taxpayer under this Act, the
Use Tax | ||||||
15 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
16 | in
accordance with reasonable rules and regulations to be | ||||||
17 | prescribed by the
Department. If no such request is made, the | ||||||
18 | taxpayer may credit such excess
payment against tax liability | ||||||
19 | subsequently to be remitted to the Department
under this Act, | ||||||
20 | the Use Tax Act, the Service Occupation Tax Act or the
Service | ||||||
21 | Use Tax Act, in accordance with reasonable rules and | ||||||
22 | regulations
prescribed by the Department. If the Department | ||||||
23 | subsequently determined
that all or any part of the credit | ||||||
24 | taken was not actually due to the
taxpayer, the taxpayer's 2.1% | ||||||
25 | and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% | ||||||
26 | of the difference between the credit taken and that
actually |
| |||||||
| |||||||
1 | due, and that taxpayer shall be liable for penalties and | ||||||
2 | interest
on such difference. | ||||||
3 | If a retailer of motor fuel is entitled to a credit under | ||||||
4 | Section 2d of
this Act which exceeds the taxpayer's liability | ||||||
5 | to the Department under
this Act for the month which the | ||||||
6 | taxpayer is filing a return, the
Department shall issue the | ||||||
7 | taxpayer a credit memorandum for the excess. | ||||||
8 | Beginning January 1, 1990, each month the Department shall | ||||||
9 | pay into
the Local Government Tax Fund, a special fund in the | ||||||
10 | State treasury which
is hereby created, the net revenue | ||||||
11 | realized for the preceding month from
the 1% tax on sales of | ||||||
12 | food for human consumption which is to be consumed
off the | ||||||
13 | premises where it is sold (other than alcoholic beverages, soft
| ||||||
14 | drinks and food which has been prepared for immediate | ||||||
15 | consumption) and
prescription and nonprescription medicines, | ||||||
16 | drugs, medical appliances, products classified as Class III | ||||||
17 | medical devices by the United States Food and Drug | ||||||
18 | Administration that are used for cancer treatment pursuant to a | ||||||
19 | prescription, as well as any accessories and components related | ||||||
20 | to those devices, and
insulin, urine testing materials, | ||||||
21 | syringes and needles used by diabetics. | ||||||
22 | Beginning January 1, 1990, each month the Department shall | ||||||
23 | pay into
the County and Mass Transit District Fund, a special | ||||||
24 | fund in the State
treasury which is hereby created, 4% of the | ||||||
25 | net revenue realized
for the preceding month from the 6.25% | ||||||
26 | general rate. |
| |||||||
| |||||||
1 | Beginning August 1, 2000, each
month the Department shall | ||||||
2 | pay into the
County and Mass Transit District Fund 20% of the | ||||||
3 | net revenue realized for the
preceding month from the 1.25% | ||||||
4 | rate on the selling price of motor fuel and
gasohol. Beginning | ||||||
5 | September 1, 2010, each month the Department shall pay into the | ||||||
6 | County and Mass Transit District Fund 20% of the net revenue | ||||||
7 | realized for the preceding month from the 1.25% rate on the | ||||||
8 | selling price of sales tax holiday items. | ||||||
9 | Beginning January 1, 1990, each month the Department shall | ||||||
10 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
11 | realized for the
preceding month from the 6.25% general rate on | ||||||
12 | the selling price of
tangible personal property. | ||||||
13 | From July 1, 2017 through June 30, 2018, no deposits shall | ||||||
14 | be made into the County and Mass Transit District Fund or the | ||||||
15 | Local Government Tax Fund from the net revenue realized from | ||||||
16 | the 6.25% general rate on taxable services. Beginning July 1, | ||||||
17 | 2018 and through June 30, 2019, each month the Department shall | ||||||
18 | pay into the County and Mass Transit District Fund 1.4% of the | ||||||
19 | net revenue realized for the preceding month from the 6.25% | ||||||
20 | general rate on the selling price of taxable services and shall | ||||||
21 | pay into the Local Government Tax Fund 5.6% of the net revenue | ||||||
22 | realized for the preceding month from the 6.25% general rate on | ||||||
23 | the selling price of taxable services. Beginning July 1, 2019 | ||||||
24 | and through June 30, 2020, each month the Department shall pay | ||||||
25 | into the County and Mass Transit District Fund 2.6% of the net | ||||||
26 | revenue realized for the preceding month from the 6.25% general |
| |||||||
| |||||||
1 | rate on the selling price of taxable services and shall pay | ||||||
2 | into the Local Government Tax Fund 10.4% of the net revenue | ||||||
3 | realized for the preceding month from the 6.25% general rate on | ||||||
4 | the selling price of taxable services. Beginning July 1, 2020, | ||||||
5 | each month the Department shall pay into the County and Mass | ||||||
6 | Transit District Fund 4% of the net revenue realized for the | ||||||
7 | preceding month from the 6.25% general rate on the selling | ||||||
8 | price of taxable services and shall pay into the Local | ||||||
9 | Government Tax Fund 16% of the net revenue realized for the | ||||||
10 | preceding month from the 6.25% general rate on the selling | ||||||
11 | price of taxable services. | ||||||
12 | Beginning August 1, 2000, each
month the Department shall | ||||||
13 | pay into the
Local Government Tax Fund 80% of the net revenue | ||||||
14 | realized for the preceding
month from the 1.25% rate on the | ||||||
15 | selling price of motor fuel and gasohol. Beginning September 1, | ||||||
16 | 2010, each month the Department shall pay into the Local | ||||||
17 | Government Tax Fund 80% of the net revenue realized for the | ||||||
18 | preceding month from the 1.25% rate on the selling price of | ||||||
19 | sales tax holiday items. | ||||||
20 | Beginning October 1, 2009, each month the Department shall | ||||||
21 | pay into the Capital Projects Fund an amount that is equal to | ||||||
22 | an amount estimated by the Department to represent 80% of the | ||||||
23 | net revenue realized for the preceding month from the sale of | ||||||
24 | candy, grooming and hygiene products, and soft drinks that had | ||||||
25 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
26 | are now taxed at 6.25%. |
| |||||||
| |||||||
1 | Beginning July 1, 2011, each
month the Department shall pay | ||||||
2 | into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
3 | realized for the
preceding month from the 6.25% general rate on | ||||||
4 | the selling price of sorbents used in Illinois in the process | ||||||
5 | of sorbent injection as used to comply with the Environmental | ||||||
6 | Protection Act or the federal Clean Air Act, but the total | ||||||
7 | payment into the Clean Air Act Permit Fund under this Act and | ||||||
8 | the Use Tax Act shall not exceed $2,000,000 in any fiscal year. | ||||||
9 | Beginning July 1, 2013, each month the Department shall pay | ||||||
10 | into the Underground Storage Tank Fund from the proceeds | ||||||
11 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
12 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
13 | average monthly deficit in the Underground Storage Tank Fund | ||||||
14 | during the prior year, as certified annually by the Illinois | ||||||
15 | Environmental Protection Agency, but the total payment into the | ||||||
16 | Underground Storage Tank Fund under this Act, the Use Tax Act, | ||||||
17 | the Service Use Tax Act, and the Service Occupation Tax Act | ||||||
18 | shall not exceed $18,000,000 in any State fiscal year. As used | ||||||
19 | in this paragraph, the "average monthly deficit" shall be equal | ||||||
20 | to the difference between the average monthly claims for | ||||||
21 | payment by the fund and the average monthly revenues deposited | ||||||
22 | into the fund, excluding payments made pursuant to this | ||||||
23 | paragraph. | ||||||
24 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
25 | received by the Department under the Use Tax Act, the Service | ||||||
26 | Use Tax Act, the Service Occupation Tax Act, and this Act, each |
| ||||||||||||||||||
| ||||||||||||||||||
1 | month the Department shall deposit $500,000 into the State | |||||||||||||||||
2 | Crime Laboratory Fund. | |||||||||||||||||
3 | Of the remainder of the moneys received by the Department | |||||||||||||||||
4 | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | |||||||||||||||||
5 | Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | |||||||||||||||||
6 | and after July 1, 1989,
3.8% thereof shall be paid into the | |||||||||||||||||
7 | Build Illinois Fund; provided, however,
that if in any fiscal | |||||||||||||||||
8 | year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | |||||||||||||||||
9 | may be, of the moneys received by the Department and required | |||||||||||||||||
10 | to
be paid into the Build Illinois Fund pursuant to this Act, | |||||||||||||||||
11 | Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | |||||||||||||||||
12 | Act, and Section 9 of the
Service Occupation Tax Act, such Acts | |||||||||||||||||
13 | being hereinafter called the "Tax
Acts" and such aggregate of | |||||||||||||||||
14 | 2.2% or 3.8%, as the case may be, of moneys
being hereinafter | |||||||||||||||||
15 | called the "Tax Act Amount", and (2) the amount
transferred to | |||||||||||||||||
16 | the Build Illinois Fund from the State and Local Sales Tax
| |||||||||||||||||
17 | Reform Fund shall be less than the Annual Specified Amount (as | |||||||||||||||||
18 | hereinafter
defined), an amount equal to the difference shall | |||||||||||||||||
19 | be immediately paid into
the Build Illinois Fund from other | |||||||||||||||||
20 | moneys received by the Department
pursuant to the Tax Acts; the | |||||||||||||||||
21 | "Annual Specified Amount" means the amounts
specified below for | |||||||||||||||||
22 | fiscal years 1986 through 1993: | |||||||||||||||||
|
| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
6 | and means the Certified Annual Debt Service Requirement (as | |||||||||||||||||||||
7 | defined in
Section 13 of the Build Illinois Bond Act) or the | |||||||||||||||||||||
8 | Tax Act Amount, whichever
is greater, for fiscal year 1994 and | |||||||||||||||||||||
9 | each fiscal year thereafter; and
further provided, that if on | |||||||||||||||||||||
10 | the last business day of any month the sum of
(1) the Tax Act | |||||||||||||||||||||
11 | Amount required to be deposited into the Build Illinois
Bond | |||||||||||||||||||||
12 | Account in the Build Illinois Fund during such month and (2) | |||||||||||||||||||||
13 | the
amount transferred to the Build Illinois Fund from the | |||||||||||||||||||||
14 | State and Local
Sales Tax Reform Fund shall have been less than | |||||||||||||||||||||
15 | 1/12 of the Annual
Specified Amount, an amount equal to the | |||||||||||||||||||||
16 | difference shall be immediately
paid into the Build Illinois | |||||||||||||||||||||
17 | Fund from other moneys received by the
Department pursuant to | |||||||||||||||||||||
18 | the Tax Acts; and, further provided, that in no
event shall the | |||||||||||||||||||||
19 | payments required under the preceding proviso result in
| |||||||||||||||||||||
20 | aggregate payments into the Build Illinois Fund pursuant to | |||||||||||||||||||||
21 | this clause (b)
for any fiscal year in excess of the greater of | |||||||||||||||||||||
22 | (i) the Tax Act Amount or
(ii) the Annual Specified Amount for | |||||||||||||||||||||
23 | such fiscal year. The amounts payable
into the Build Illinois | |||||||||||||||||||||
24 | Fund under clause (b) of the first sentence in this
paragraph | |||||||||||||||||||||
25 | shall be payable only until such time as the aggregate amount | |||||||||||||||||||||
26 | on
deposit under each trust indenture securing Bonds issued and |
| |||||||
| |||||||
1 | outstanding
pursuant to the Build Illinois Bond Act is | ||||||
2 | sufficient, taking into account
any future investment income, | ||||||
3 | to fully provide, in accordance with such
indenture, for the | ||||||
4 | defeasance of or the payment of the principal of,
premium, if | ||||||
5 | any, and interest on the Bonds secured by such indenture and on
| ||||||
6 | any Bonds expected to be issued thereafter and all fees and | ||||||
7 | costs payable
with respect thereto, all as certified by the | ||||||
8 | Director of the Bureau of the
Budget (now Governor's Office of | ||||||
9 | Management and Budget). If on the last
business day of any | ||||||
10 | month in which Bonds are
outstanding pursuant to the Build | ||||||
11 | Illinois Bond Act, the aggregate of
moneys deposited in the | ||||||
12 | Build Illinois Bond Account in the Build Illinois
Fund in such | ||||||
13 | month shall be less than the amount required to be transferred
| ||||||
14 | in such month from the Build Illinois Bond Account to the Build | ||||||
15 | Illinois
Bond Retirement and Interest Fund pursuant to Section | ||||||
16 | 13 of the Build
Illinois Bond Act, an amount equal to such | ||||||
17 | deficiency shall be immediately
paid from other moneys received | ||||||
18 | by the Department pursuant to the Tax Acts
to the Build | ||||||
19 | Illinois Fund; provided, however, that any amounts paid to the
| ||||||
20 | Build Illinois Fund in any fiscal year pursuant to this | ||||||
21 | sentence shall be
deemed to constitute payments pursuant to | ||||||
22 | clause (b) of the first sentence
of this paragraph and shall | ||||||
23 | reduce the amount otherwise payable for such
fiscal year | ||||||
24 | pursuant to that clause (b). The moneys received by the
| ||||||
25 | Department pursuant to this Act and required to be deposited | ||||||
26 | into the Build
Illinois Fund are subject to the pledge, claim |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | and charge set forth in
Section 12 of the Build Illinois Bond | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Act. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | as provided in
the preceding paragraph or in any amendment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | thereto hereafter enacted, the
following specified monthly | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | installment of the amount requested in the
certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Chairman of the Metropolitan Pier and Exposition
Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | in
excess of sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | deposited in the
aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | 9 of the Service Occupation Tax Act, and
Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Retailers' Occupation Tax Act into the McCormick Place
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
13 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
14 | year thereafter,
one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
15 | certificate of the Chairman of
the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
16 | Exposition Authority for that fiscal year, less
the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18 | the
State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19 | (g) of Section 13
of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 | Authority Act, plus cumulative
deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
21 | required under this Section for previous
months and years, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22 | shall be deposited into the McCormick Place Expansion
Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24 | not
in excess of the amount specified above as "Total Deposit", | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25 | has been deposited. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
26 | Subject to payment of amounts into the Build Illinois Fund |
| |||||||
| |||||||
1 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
2 | preceding paragraphs
or in any amendments
thereto hereafter | ||||||
3 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
4 | 2013, the Department shall each
month pay into the Illinois Tax | ||||||
5 | Increment Fund 0.27% of 80% of the net revenue
realized for the | ||||||
6 | preceding month from the 6.25% general rate on the selling
| ||||||
7 | price of tangible personal property. | ||||||
8 | Subject to payment of amounts into the Build Illinois Fund | ||||||
9 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
10 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
11 | enacted, beginning with the receipt of the first
report of | ||||||
12 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
13 | period, the Department shall each month pay into the Energy | ||||||
14 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
15 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
16 | that was sold to an eligible business.
For purposes of this | ||||||
17 | paragraph, the term "eligible business" means a new
electric | ||||||
18 | generating facility certified pursuant to Section 605-332 of | ||||||
19 | the
Department of Commerce and Economic Opportunity
Law of the | ||||||
20 | Civil Administrative Code of Illinois. | ||||||
21 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
22 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
23 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
24 | the preceding paragraphs or in any amendments to this Section | ||||||
25 | hereafter enacted, beginning on the first day of the first | ||||||
26 | calendar month to occur on or after August 26, 2014 ( the |
| |||||||
| |||||||
1 | effective date of Public Act 98-1098) this amendatory Act of | ||||||
2 | the 98th General Assembly , each month, from the collections | ||||||
3 | made under Section 9 of the Use Tax Act, Section 9 of the | ||||||
4 | Service Use Tax Act, Section 9 of the Service Occupation Tax | ||||||
5 | Act, and Section 3 of the Retailers' Occupation Tax Act, the | ||||||
6 | Department shall pay into the Tax Compliance and Administration | ||||||
7 | Fund, to be used, subject to appropriation, to fund additional | ||||||
8 | auditors and compliance personnel at the Department of Revenue, | ||||||
9 | an amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
10 | collected during the preceding fiscal year by the Audit Bureau | ||||||
11 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
12 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
13 | Tax Act, and associated local occupation and use taxes | ||||||
14 | administered by the Department. | ||||||
15 | Of the remainder of the moneys received by the Department | ||||||
16 | pursuant to
this Act, 75% thereof shall be paid into the State | ||||||
17 | Treasury and 25% shall
be reserved in a special account and | ||||||
18 | used only for the transfer to the
Common School Fund as part of | ||||||
19 | the monthly transfer from the General Revenue
Fund in | ||||||
20 | accordance with Section 8a of the State Finance Act. | ||||||
21 | The Department may, upon separate written notice to a | ||||||
22 | taxpayer,
require the taxpayer to prepare and file with the | ||||||
23 | Department on a form
prescribed by the Department within not | ||||||
24 | less than 60 days after receipt
of the notice an annual | ||||||
25 | information return for the tax year specified in
the notice. | ||||||
26 | Such annual return to the Department shall include a
statement |
| |||||||
| |||||||
1 | of gross receipts as shown by the retailer's last Federal | ||||||
2 | income
tax return. If the total receipts of the business as | ||||||
3 | reported in the
Federal income tax return do not agree with the | ||||||
4 | gross receipts reported to
the Department of Revenue for the | ||||||
5 | same period, the retailer shall attach
to his annual return a | ||||||
6 | schedule showing a reconciliation of the 2
amounts and the | ||||||
7 | reasons for the difference. The retailer's annual
return to the | ||||||
8 | Department shall also disclose the cost of goods sold by
the | ||||||
9 | retailer during the year covered by such return, opening and | ||||||
10 | closing
inventories of such goods for such year, costs of goods | ||||||
11 | used from stock
or taken from stock and given away by the | ||||||
12 | retailer during such year,
payroll information of the | ||||||
13 | retailer's business during such year and any
additional | ||||||
14 | reasonable information which the Department deems would be
| ||||||
15 | helpful in determining the accuracy of the monthly, quarterly | ||||||
16 | or annual
returns filed by such retailer as provided for in | ||||||
17 | this Section. | ||||||
18 | If the annual information return required by this Section | ||||||
19 | is not
filed when and as required, the taxpayer shall be liable | ||||||
20 | as follows: | ||||||
21 | (i) Until January 1, 1994, the taxpayer shall be liable
| ||||||
22 | for a penalty equal to 1/6 of 1% of the tax due from such | ||||||
23 | taxpayer under
this Act during the period to be covered by | ||||||
24 | the annual return for each
month or fraction of a month | ||||||
25 | until such return is filed as required, the
penalty to be | ||||||
26 | assessed and collected in the same manner as any other
|
| |||||||
| |||||||
1 | penalty provided for in this Act. | ||||||
2 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
3 | be
liable for a penalty as described in Section 3-4 of the | ||||||
4 | Uniform Penalty and
Interest Act. | ||||||
5 | The chief executive officer, proprietor, owner or highest | ||||||
6 | ranking
manager shall sign the annual return to certify the | ||||||
7 | accuracy of the
information contained therein. Any person who | ||||||
8 | willfully signs the
annual return containing false or | ||||||
9 | inaccurate information shall be guilty
of perjury and punished | ||||||
10 | accordingly. The annual return form prescribed
by the | ||||||
11 | Department shall include a warning that the person signing the
| ||||||
12 | return may be liable for perjury. | ||||||
13 | The provisions of this Section concerning the filing of an | ||||||
14 | annual
information return do not apply to a retailer who is not | ||||||
15 | required to
file an income tax return with the United States | ||||||
16 | Government. | ||||||
17 | As soon as possible after the first day of each month, upon | ||||||
18 | certification
of the Department of Revenue, the Comptroller | ||||||
19 | shall order transferred and
the Treasurer shall transfer from | ||||||
20 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
21 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
22 | for the second preceding
month.
Beginning April 1, 2000, this | ||||||
23 | transfer is no longer required
and shall not be made. | ||||||
24 | Net revenue realized for a month shall be the revenue | ||||||
25 | collected by the
State pursuant to this Act, less the amount | ||||||
26 | paid out during that month as
refunds to taxpayers for |
| |||||||
| |||||||
1 | overpayment of liability. | ||||||
2 | For greater simplicity of administration, manufacturers, | ||||||
3 | importers
and wholesalers whose products are sold at retail in | ||||||
4 | Illinois by
numerous retailers, and who wish to do so, may | ||||||
5 | assume the responsibility
for accounting and paying to the | ||||||
6 | Department all tax accruing under this
Act with respect to such | ||||||
7 | sales, if the retailers who are affected do not
make written | ||||||
8 | objection to the Department to this arrangement. | ||||||
9 | Any person who promotes, organizes, provides retail | ||||||
10 | selling space for
concessionaires or other types of sellers at | ||||||
11 | the Illinois State Fair, DuQuoin
State Fair, county fairs, | ||||||
12 | local fairs, art shows, flea markets and similar
exhibitions or | ||||||
13 | events, including any transient merchant as defined by Section | ||||||
14 | 2
of the Transient Merchant Act of 1987, is required to file a | ||||||
15 | report with the
Department providing the name of the merchant's | ||||||
16 | business, the name of the
person or persons engaged in | ||||||
17 | merchant's business, the permanent address and
Illinois | ||||||
18 | Retailers Occupation Tax Registration Number of the merchant, | ||||||
19 | the
dates and location of the event and other reasonable | ||||||
20 | information that the
Department may require. The report must be | ||||||
21 | filed not later than the 20th day
of the month next following | ||||||
22 | the month during which the event with retail sales
was held. | ||||||
23 | Any person who fails to file a report required by this Section
| ||||||
24 | commits a business offense and is subject to a fine not to | ||||||
25 | exceed $250. | ||||||
26 | Any person engaged in the business of selling tangible |
| |||||||
| |||||||
1 | personal
property or taxable service at retail as a | ||||||
2 | concessionaire or other type of seller at the
Illinois State | ||||||
3 | Fair, county fairs, art shows, flea markets and similar
| ||||||
4 | exhibitions or events, or any transient merchants, as defined | ||||||
5 | by Section 2
of the Transient Merchant Act of 1987, may be | ||||||
6 | required to make a daily report
of the amount of such sales to | ||||||
7 | the Department and to make a daily payment of
the full amount | ||||||
8 | of tax due. The Department shall impose this
requirement when | ||||||
9 | it finds that there is a significant risk of loss of
revenue to | ||||||
10 | the State at such an exhibition or event. Such a finding
shall | ||||||
11 | be based on evidence that a substantial number of | ||||||
12 | concessionaires
or other sellers who are not residents of | ||||||
13 | Illinois will be engaging in
the business of selling tangible | ||||||
14 | personal property or taxable service at retail at the
| ||||||
15 | exhibition or event, or other evidence of a significant risk of | ||||||
16 | loss of revenue
to the State. The Department shall notify | ||||||
17 | concessionaires and other sellers
affected by the imposition of | ||||||
18 | this requirement. In the absence of
notification by the | ||||||
19 | Department, the concessionaires and other sellers
shall file | ||||||
20 | their returns as otherwise required in this Section. | ||||||
21 | (Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13; | ||||||
22 | 98-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff. | ||||||
23 | 8-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933, | ||||||
24 | eff. 1-27-17; revised 2-3-17.)
| ||||||
25 | (35 ILCS 120/7) (from Ch. 120, par. 446)
|
| |||||||
| |||||||
1 | Sec. 7.
Every person engaged in the business of selling | ||||||
2 | tangible personal
property or taxable service at retail in this | ||||||
3 | State shall keep records and books of all sales
of tangible | ||||||
4 | personal property, together with invoices, bills of lading,
| ||||||
5 | sales records, copies of bills of sale, inventories prepared as | ||||||
6 | of December
31 of each year or otherwise annually as has been | ||||||
7 | the custom in the
specific trade and other pertinent papers and | ||||||
8 | documents. Every person who
is engaged in the business of | ||||||
9 | selling tangible personal property or taxable service at retail
| ||||||
10 | in this State and who, in connection with such business, also | ||||||
11 | engages in
other activities (including, but not limited to, | ||||||
12 | engaging in a service
occupation not subject to tax under this | ||||||
13 | Act ) shall keep such additional records and books of all such
| ||||||
14 | activities as will accurately reflect the character and scope | ||||||
15 | of such
activities and the amount of receipts realized | ||||||
16 | therefrom.
The Department may adopt rules that establish | ||||||
17 | requirements, including record
forms and formats, for records | ||||||
18 | required to be kept and maintained by taxpayers.
For purposes | ||||||
19 | of this Section, "records" means all data maintained by the
| ||||||
20 | taxpayer, including data on paper, microfilm, microfiche or any | ||||||
21 | type of
machine-sensible data compilation.
| ||||||
22 | All books and records and other papers and documents which | ||||||
23 | are required
by this Act to be kept shall be kept in the | ||||||
24 | English language
and shall, at all times during business hours | ||||||
25 | of the day, be subject to
inspection by the Department or its | ||||||
26 | duly authorized agents and employees.
|
| |||||||
| |||||||
1 | To support deductions made on the tax return form, or | ||||||
2 | authorized under
this Act, on account of receipts from isolated | ||||||
3 | or occasional sales of
tangible personal property or taxable | ||||||
4 | service , on account of receipts from sales of tangible
personal | ||||||
5 | property or taxable service for resale, on account of receipts | ||||||
6 | from sales to
governmental bodies or other exempted types of | ||||||
7 | purchasers, on account of
receipts from sales of tangible | ||||||
8 | personal property or taxable service in interstate commerce,
| ||||||
9 | and on account of receipts from any other kind of transaction | ||||||
10 | that is not
taxable under this Act, entries in any books, | ||||||
11 | records or other pertinent
papers or documents of the taxpayer | ||||||
12 | in relation thereto shall be in detail
sufficient to show the | ||||||
13 | name and address of the taxpayer's customer in each
such | ||||||
14 | transaction, the character of every such transaction, the date | ||||||
15 | of
every such transaction, the amount of receipts realized from | ||||||
16 | every such
transaction and such other information as may be | ||||||
17 | necessary to establish the
non-taxable character of such | ||||||
18 | transaction under this Act.
| ||||||
19 | Except in the case of a sale to a purchaser who will always | ||||||
20 | resell and
deliver the property to his customers outside | ||||||
21 | Illinois, anyone claiming
that he has made a nontaxable sale | ||||||
22 | for resale in some form as tangible
personal property shall | ||||||
23 | also keep a record of the purchaser's registration
number or | ||||||
24 | resale number with the Department.
| ||||||
25 | It shall be presumed that all sales of tangible personal | ||||||
26 | property or taxable service are
subject to tax under this Act |
| |||||||
| |||||||
1 | until the contrary is established, and the
burden of proving | ||||||
2 | that a transaction is not taxable hereunder shall be upon
the | ||||||
3 | person who would be required to remit the tax to the Department | ||||||
4 | if such
transaction is taxable. In the course of any audit or | ||||||
5 | investigation or
hearing by the Department with reference to a | ||||||
6 | given taxpayer, if the
Department finds that the taxpayer lacks | ||||||
7 | documentary evidence needed to
support the taxpayer's claim to | ||||||
8 | exemption from tax hereunder, the
Department is authorized to | ||||||
9 | notify the taxpayer in writing to produce such
evidence, and | ||||||
10 | the taxpayer shall have 60 days subject to the right in the
| ||||||
11 | Department to extend this period either on request for good | ||||||
12 | cause shown or
on its own motion from the date when such notice | ||||||
13 | is sent to the taxpayer by
certified or registered mail (or | ||||||
14 | delivered to the taxpayer if the notice is
served personally) | ||||||
15 | in which to obtain and produce such evidence for the
| ||||||
16 | Department's inspection, failing which the matter shall be | ||||||
17 | closed, and the
transaction shall be conclusively presumed to | ||||||
18 | be taxable hereunder.
| ||||||
19 | Books and records and other papers reflecting gross | ||||||
20 | receipts received
during any period with respect to which the | ||||||
21 | Department is authorized to
issue notices of tax liability as | ||||||
22 | provided by Sections 4 and 5 of this
Act shall be preserved | ||||||
23 | until the expiration of such period unless the
Department, in | ||||||
24 | writing, shall authorize their destruction or disposal prior
to | ||||||
25 | such expiration.
| ||||||
26 | (Source: P.A. 88-480.)
|
| |||||||
| |||||||
1 | (35 ILCS 120/13) (from Ch. 120, par. 452)
| ||||||
2 | Sec. 13. Criminal penalties. | ||||||
3 | (a) When the amount due is under $300, any person engaged
| ||||||
4 | in the business of selling tangible personal property or | ||||||
5 | taxable service at retail in this
State who fails to file a | ||||||
6 | return, or who files a fraudulent return, or
any officer, | ||||||
7 | employee or agent of a corporation, member, employee or
agent | ||||||
8 | of a partnership, or manager, member, agent, or employee of a | ||||||
9 | limited
liability company engaged in the business of selling | ||||||
10 | tangible personal
property or taxable service at retail in this | ||||||
11 | State who, as such officer, employee, agent,
manager, or member | ||||||
12 | is under a duty to file a return, or any officer, agent or
| ||||||
13 | employee of a corporation, member, agent, or employee of a | ||||||
14 | partnership, or
manager, member, agent, or employee of a | ||||||
15 | limited liability company engaged in
the business of selling | ||||||
16 | tangible personal property or taxable service at retail in this | ||||||
17 | State who
files or causes to be filed or signs or causes to be | ||||||
18 | signed a fraudulent
return filed on behalf of such corporation | ||||||
19 | or limited liability company, or
any accountant or other agent | ||||||
20 | who knowingly enters false information on the
return of any | ||||||
21 | taxpayer under this Act, is guilty of a Class 4 felony.
| ||||||
22 | Any person who or any officer or director of any | ||||||
23 | corporation, partner or
member of any partnership, or manager | ||||||
24 | or member of a limited liability company
that: (a) violates | ||||||
25 | Section 2a of this Act or (b) fails to keep books and
records, |
| |||||||
| |||||||
1 | or fails to produce books and records as required by Section 7 | ||||||
2 | or (c)
willfully violates a rule or regulation of the | ||||||
3 | Department for the
administration and enforcement of this Act | ||||||
4 | is guilty of a Class A misdemeanor.
Any person, manager or | ||||||
5 | member of a limited liability company, or officer or
director | ||||||
6 | of any corporation who engages in the business of selling | ||||||
7 | tangible
personal property at retail after the certificate of | ||||||
8 | registration of that
person, corporation, limited liability | ||||||
9 | company, or partnership has been revoked
is guilty of a Class A | ||||||
10 | misdemeanor. Each day such person, corporation, or
partnership | ||||||
11 | is engaged in business without a certificate of registration or
| ||||||
12 | after the certificate of registration of that person, | ||||||
13 | corporation, or
partnership has been revoked constitutes a | ||||||
14 | separate offense.
| ||||||
15 | Any purchaser who obtains a registration number or resale | ||||||
16 | number from
the Department through misrepresentation, or who | ||||||
17 | represents to a seller
that such purchaser has a registration | ||||||
18 | number or a resale number from the
Department when he knows | ||||||
19 | that he does not, or who uses his registration
number or resale | ||||||
20 | number to make a seller believe that he is buying tangible
| ||||||
21 | personal property for resale when such purchaser in fact knows | ||||||
22 | that this is
not the case is guilty of a Class 4 felony.
| ||||||
23 | Any distributor, supplier or other reseller of motor fuel | ||||||
24 | registered
pursuant to Section 2a or 2c of this Act who fails | ||||||
25 | to collect the prepaid
tax on invoiced gallons of motor fuel | ||||||
26 | sold or who fails to deliver a statement
of tax paid to the |
| |||||||
| |||||||
1 | purchaser or to the Department as required by Sections
2d and | ||||||
2 | 2e of this Act, respectively, shall be guilty of a Class A | ||||||
3 | misdemeanor
if the amount due is under $300, and a Class 4 | ||||||
4 | felony if the amount due
is $300 or more.
| ||||||
5 | When the amount due is under $300, any person who accepts | ||||||
6 | money
that is due to the Department under this Act from a | ||||||
7 | taxpayer for the purpose of
acting as the taxpayer's agent to | ||||||
8 | make the payment to the Department, but who
fails to remit such | ||||||
9 | payment to the Department when due is guilty of a Class 4
| ||||||
10 | felony.
| ||||||
11 | Any seller who collects or attempts to collect an amount | ||||||
12 | (however
designated) which purports to reimburse such seller | ||||||
13 | for retailers'
occupation tax liability measured by receipts | ||||||
14 | which such seller knows are
not subject to retailers' | ||||||
15 | occupation tax, or any seller who knowingly
over-collects or | ||||||
16 | attempts to over-collect an amount purporting to reimburse
such | ||||||
17 | seller for retailers' occupation tax liability in a transaction | ||||||
18 | which
is subject to the tax that is imposed by this Act, shall | ||||||
19 | be guilty of a
Class 4 felony for each such offense. This | ||||||
20 | paragraph does not apply to
an amount collected by the seller | ||||||
21 | as reimbursement for the seller's
retailers' occupation tax | ||||||
22 | liability on receipts which are subject to tax
under this Act | ||||||
23 | as long as such collection is made in compliance with the
tax | ||||||
24 | collection brackets prescribed by the Department in its Rules | ||||||
25 | and
Regulations.
| ||||||
26 | When the amount due is $300 or more, any person engaged in |
| |||||||
| |||||||
1 | the business
of selling tangible personal property or taxable | ||||||
2 | service at retail in this State who fails
to file a return, or | ||||||
3 | who files a fraudulent return, or any officer, employee
or | ||||||
4 | agent of a corporation, member, employee or agent of a | ||||||
5 | partnership, or
manager, member, agent, or employee of a | ||||||
6 | limited liability company engaged in
the business of selling | ||||||
7 | tangible personal property or taxable service at retail in this | ||||||
8 | State who,
as such officer, employee, agent, manager, or member | ||||||
9 | is under a duty to file a
return and who fails to file such | ||||||
10 | return or any officer, agent, or employee of
a corporation, | ||||||
11 | member, agent or employee of a partnership, or manager, member,
| ||||||
12 | agent, or employee of a limited liability company engaged in | ||||||
13 | the business of
selling tangible personal property or taxable | ||||||
14 | service at retail in this State who files or causes
to be filed | ||||||
15 | or signs or causes to be signed a fraudulent return filed on | ||||||
16 | behalf
of such corporation or limited liability company, or any | ||||||
17 | accountant or other
agent who knowingly enters false | ||||||
18 | information on the return of any taxpayer
under this Act is | ||||||
19 | guilty of a Class 3 felony.
| ||||||
20 | When the amount due is $300 or more, any person engaged in | ||||||
21 | the business
of selling tangible personal property at retail in | ||||||
22 | this State who accepts
money that is due to the Department | ||||||
23 | under this
Act from a taxpayer for the purpose of acting as the | ||||||
24 | taxpayer's agent to
make payment to the Department but fails to | ||||||
25 | remit such payment to the
Department when due, is guilty of a | ||||||
26 | Class 3 felony.
|
| |||||||
| |||||||
1 | Any person whose principal place of business is in this | ||||||
2 | State and
who is charged with a violation under this Section | ||||||
3 | shall be
tried in the county where his principal place of | ||||||
4 | business is
located unless he asserts a right to be tried in | ||||||
5 | another venue.
| ||||||
6 | Any taxpayer or agent of a taxpayer who with the intent to | ||||||
7 | defraud
purports to make a payment due to the Department by | ||||||
8 | issuing or delivering a
check or other order upon a real or | ||||||
9 | fictitious depository for the payment
of money, knowing that it | ||||||
10 | will not be paid by the depository, shall be
guilty of a | ||||||
11 | deceptive practice in violation of Section 17-1 of the Criminal
| ||||||
12 | Code of 2012.
| ||||||
13 | (b) A person commits the offense of sales tax evasion under | ||||||
14 | this Act when he knowingly attempts in any manner to evade or | ||||||
15 | defeat the tax imposed on him or on any other person, or the | ||||||
16 | payment thereof, and he commits an affirmative act in | ||||||
17 | furtherance of the evasion. For purposes of this Section, an | ||||||
18 | "affirmative act in furtherance of the evasion" means an act | ||||||
19 | designed in whole or in part to (i) conceal, misrepresent, | ||||||
20 | falsify, or manipulate any material fact or (ii) tamper with or | ||||||
21 | destroy documents or materials related to a person's tax | ||||||
22 | liability under this Act. Two or more acts of sales tax evasion | ||||||
23 | may be charged as a single count in any indictment, | ||||||
24 | information, or complaint and the amount of tax deficiency may | ||||||
25 | be aggregated for purposes of determining the amount of tax | ||||||
26 | which is attempted to be or is evaded and the period between |
| |||||||
| |||||||
1 | the first and last acts may be alleged as the date of the | ||||||
2 | offense. | ||||||
3 | (1) When the amount of tax, the assessment or payment | ||||||
4 | of which is attempted to be or is evaded is less than $500 | ||||||
5 | a person is guilty of a Class 4 felony. | ||||||
6 | (2) When the amount of tax, the assessment or payment | ||||||
7 | of which is attempted to be or is evaded is $500 or more | ||||||
8 | but less than $10,000, a person is guilty of a Class 3 | ||||||
9 | felony. | ||||||
10 | (3) When the amount of tax, the assessment or payment | ||||||
11 | of which is attempted to be or is evaded is $10,000 or more | ||||||
12 | but less than $100,000, a person is guilty of a Class 2 | ||||||
13 | felony. | ||||||
14 | (4) When the amount of tax, the assessment or payment | ||||||
15 | of which is attempted to be or is evaded is $100,000 or | ||||||
16 | more, a person is guilty of a Class 1 felony. | ||||||
17 | Any person who knowingly sells, purchases, installs, | ||||||
18 | transfers, possesses, uses, or accesses any automated sales | ||||||
19 | suppression device, zapper, or phantom-ware in this State is | ||||||
20 | guilty of a Class 3 felony. | ||||||
21 | For the purposes of this Section: | ||||||
22 | "Automated sales suppression device" or "zapper" means a | ||||||
23 | software program that falsifies the electronic records of an | ||||||
24 | electronic cash register or other point-of-sale system, | ||||||
25 | including, but not limited to, transaction data and transaction | ||||||
26 | reports. The term includes the software program, any device |
| |||||||
| |||||||
1 | that carries the software program, or an Internet link to the | ||||||
2 | software program. | ||||||
3 | "Phantom-ware" means a hidden programming option embedded | ||||||
4 | in the operating system of an electronic cash register or | ||||||
5 | hardwired into an electronic cash register that can be used to | ||||||
6 | create a second set of records or that can eliminate or | ||||||
7 | manipulate transaction records in an electronic cash register. | ||||||
8 | "Electronic cash register" means a device that keeps a | ||||||
9 | register or supporting documents through the use of an | ||||||
10 | electronic device or computer system designed to record | ||||||
11 | transaction data for the purpose of computing, compiling, or | ||||||
12 | processing retail sales transaction data in any manner. | ||||||
13 | "Transaction data" includes: items purchased by a | ||||||
14 | customer; the price of each item; a taxability determination | ||||||
15 | for each item; a segregated tax amount for each taxed item; the | ||||||
16 | amount of cash or credit tendered; the net amount returned to | ||||||
17 | the customer in change; the date and time of the purchase; the | ||||||
18 | name, address, and identification number of the vendor; and the | ||||||
19 | receipt or invoice number of the transaction. | ||||||
20 | "Transaction report" means a report that documents, | ||||||
21 | without limitation, the sales, taxes, or fees collected, media | ||||||
22 | totals, and discount voids at an electronic cash register and | ||||||
23 | that is printed on a cash register tape at the end of a day or | ||||||
24 | shift, or a report that documents every action at an electronic | ||||||
25 | cash register and is stored electronically. | ||||||
26 | (c) A prosecution for any act in violation of this Section |
| |||||||
| |||||||
1 | may be commenced
at any time within 5 years of the commission | ||||||
2 | of that act.
| ||||||
3 | (Source: P.A. 97-1074, eff. 1-1-13; 97-1150, eff. 1-25-13; | ||||||
4 | 98-352, eff. 1-1-14.)
| ||||||
5 | Section 30-50. The Counties Code is amended by changing | ||||||
6 | Section 5-1009 and by adding Section 5-1008.10 as follows:
| ||||||
7 | (55 ILCS 5/5-1008.10 new) | ||||||
8 | Sec. 5-1008.10. Taxable services. Notwithstanding any | ||||||
9 | other provision of law, whenever a home rule or non-home rule | ||||||
10 | county is authorized to impose a tax on the use or sale of | ||||||
11 | tangible personal property, that county shall also be | ||||||
12 | authorized to impose a tax at the same rate on taxable | ||||||
13 | services, as defined in Section 2a-2 of the Use Tax Act.
| ||||||
14 | (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
| ||||||
15 | Sec. 5-1009. Limitation on home rule powers. Except as | ||||||
16 | provided in
Sections 5-1006, 5-1006.5, 5-1007 and 5-1008, on | ||||||
17 | and after September 1,
1990, no home
rule county has the | ||||||
18 | authority to impose, pursuant to its home rule
authority, a | ||||||
19 | retailer's occupation tax, service occupation tax, use tax,
| ||||||
20 | sales tax or other tax on the (i) use, sale or purchase of | ||||||
21 | tangible personal
property based on the gross receipts from | ||||||
22 | such sales or the selling or
purchase price , (ii) gross | ||||||
23 | receipts, or (iii) weight or volume from the use, sale, or |
| |||||||
| |||||||
1 | purchase of that said tangible personal property. | ||||||
2 | Notwithstanding the
foregoing, this Section does not preempt | ||||||
3 | any home rule imposed tax such as
the following: (1) a tax on | ||||||
4 | alcoholic beverages, whether based on gross
receipts, volume | ||||||
5 | sold or any other measurement; (2) a tax based on the
number of | ||||||
6 | units of cigarettes or tobacco products; (3) a tax, however
| ||||||
7 | measured, based on the use of a hotel or motel room or similar | ||||||
8 | facility;
(4) a tax, however measured, on the sale or transfer | ||||||
9 | of real property; (5)
a tax, however measured, on lease | ||||||
10 | receipts; (6) a tax on food prepared for
immediate consumption | ||||||
11 | and on alcoholic beverages sold by a business which
provides | ||||||
12 | for on premise consumption of said food or alcoholic beverages; | ||||||
13 | or
(7) other taxes not based on the selling or purchase price | ||||||
14 | or gross
receipts from the use, sale or purchase of tangible | ||||||
15 | personal property ; or (8) a tax on the sale of taxable | ||||||
16 | services, as defined in the Use Tax Act . This Section does not | ||||||
17 | preempt a home rule county from imposing a tax, however | ||||||
18 | measured, on the use, for consideration, of a parking lot, | ||||||
19 | garage, or other parking facility. This
Section is a | ||||||
20 | limitation, pursuant to subsection (g) of Section 6 of Article
| ||||||
21 | VII of the Illinois Constitution, on the power of home rule | ||||||
22 | units to tax.
| ||||||
23 | (Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
| ||||||
24 | Section 30-55. The Illinois Municipal Code is amended by | ||||||
25 | changing Section 8-11-6a and by adding Sections 8-3-20 as |
| |||||||
| |||||||
1 | follows:
| ||||||
2 | (65 ILCS 5/8-3-20 new) | ||||||
3 | Sec. 8-3-20. Taxable services. Notwithstanding any other | ||||||
4 | provision of law, whenever a home rule or non-home rule | ||||||
5 | municipality is authorized to impose a tax on the use or sale | ||||||
6 | of tangible personal property, that municipality shall also be | ||||||
7 | authorized to impose a tax at the same rate on taxable | ||||||
8 | services, as defined in Section 2a-2 of the Use Tax Act.
| ||||||
9 | (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
| ||||||
10 | Sec. 8-11-6a. Home rule municipalities; preemption of | ||||||
11 | certain taxes. Except
as provided in Sections 8-11-1, 8-11-5, | ||||||
12 | 8-11-6, 8-11-6b, 8-11-6c, and 11-74.3-6 on and after
September | ||||||
13 | 1, 1990, no home rule municipality has the
authority to impose, | ||||||
14 | pursuant to its home rule authority, a retailer's
occupation | ||||||
15 | tax, service occupation tax, use tax, sales tax or other
tax on | ||||||
16 | the use, sale or purchase of tangible personal property
based | ||||||
17 | on (i) the selling or purchase price, (ii) the gross receipts , | ||||||
18 | or (iii) the weight or volume from the use, sale, or purchase | ||||||
19 | from such sales or the selling or purchase
price of said | ||||||
20 | tangible personal property. Notwithstanding the foregoing,
| ||||||
21 | this Section does not preempt any home rule imposed tax such as | ||||||
22 | the
following: (1) a tax on alcoholic beverages, whether based | ||||||
23 | on gross receipts,
volume sold or any other measurement; (2) a | ||||||
24 | tax based on the number of units
of cigarettes or tobacco |
| |||||||
| |||||||
1 | products (provided, however, that a home rule
municipality that | ||||||
2 | has not imposed a tax based on the number of units of
| ||||||
3 | cigarettes or tobacco products before July 1, 1993, shall not | ||||||
4 | impose such a tax
after that date); (3) a tax, however | ||||||
5 | measured, based on
the use of a hotel or motel room or similar | ||||||
6 | facility; (4) a tax, however
measured, on the sale or transfer | ||||||
7 | of real property; (5) a tax, however
measured, on lease | ||||||
8 | receipts; (6) a tax on food prepared for immediate
consumption | ||||||
9 | and on alcoholic beverages sold by a business which provides
| ||||||
10 | for on premise consumption of said food or alcoholic beverages; | ||||||
11 | or (7)
other taxes not based on (i) the selling or purchase | ||||||
12 | price , (ii) the or gross receipts , or (iii) the weight or | ||||||
13 | volume
from the use, sale or purchase of tangible personal | ||||||
14 | property ; or (8) a tax on the sale of taxable services, as | ||||||
15 | defined in the Use Tax Act . This Section does not preempt a | ||||||
16 | home rule municipality with a population of more than 2,000,000 | ||||||
17 | from imposing a tax, however measured, on the use, for | ||||||
18 | consideration, of a parking lot, garage, or other parking | ||||||
19 | facility. This Section
is not intended to affect any existing | ||||||
20 | tax on food and beverages prepared
for immediate consumption on | ||||||
21 | the premises where the sale occurs, or any
existing tax on | ||||||
22 | alcoholic beverages, or any existing tax imposed on the
charge | ||||||
23 | for renting a hotel or motel room, which was in effect January | ||||||
24 | 15,
1988, or any extension of the effective date of such an | ||||||
25 | existing tax by
ordinance of the municipality imposing the tax, | ||||||
26 | which extension is hereby
authorized, in any non-home rule |
| |||||||
| |||||||
1 | municipality in which the imposition of
such a tax has been | ||||||
2 | upheld by judicial determination, nor is this Section
intended | ||||||
3 | to preempt the authority granted by Public Act 85-1006. This
| ||||||
4 | Section is a limitation, pursuant to subsection (g) of Section | ||||||
5 | 6 of Article
VII of the Illinois Constitution, on the power of | ||||||
6 | home rule units to tax.
| ||||||
7 | (Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
| ||||||
8 | Section 30-65. The Illinois False Claims Act is amended by | ||||||
9 | changing Section 3 as follows:
| ||||||
10 | (740 ILCS 175/3) (from Ch. 127, par. 4103)
| ||||||
11 | Sec. 3. False claims.
| ||||||
12 | (a) Liability for certain acts. | ||||||
13 | (1) In general, any person who:
| ||||||
14 | (A) knowingly presents, or causes to be presented, | ||||||
15 | a false or fraudulent claim
for payment or approval;
| ||||||
16 | (B) knowingly makes, uses, or causes to be made or | ||||||
17 | used, a false record
or statement material to a false | ||||||
18 | or fraudulent claim;
| ||||||
19 | (C) conspires to commit a violation of | ||||||
20 | subparagraph (A), (B), (D), (E), (F), or (G);
| ||||||
21 | (D) has possession, custody, or control of | ||||||
22 | property or money used, or to
be used, by the State and | ||||||
23 | knowingly delivers, or causes to be delivered, less | ||||||
24 | than all the money or property;
|
| |||||||
| |||||||
1 | (E) is authorized to make or deliver a document | ||||||
2 | certifying receipt of
property used, or to be used, by | ||||||
3 | the State and, intending to defraud the
State, makes or | ||||||
4 | delivers the receipt without completely knowing that | ||||||
5 | the
information on the receipt is true;
| ||||||
6 |
(F) knowingly buys, or receives as a pledge of an | ||||||
7 | obligation or debt,
public property from an officer or | ||||||
8 | employee of the State, or a member of
the Guard, who | ||||||
9 | lawfully may not sell or pledge property; or
| ||||||
10 | (G) knowingly makes, uses, or causes to be made or | ||||||
11 | used, a false record
or statement material to an | ||||||
12 | obligation to pay or transmit
money or property to the | ||||||
13 | State, or knowingly conceals or knowingly and | ||||||
14 | improperly avoids or decreases an obligation to pay or | ||||||
15 | transmit money or property to the State,
| ||||||
16 | is liable to the State for a civil penalty of not less than | ||||||
17 | $5,500 and not
more than $11,000, plus 3 times the amount | ||||||
18 | of damages which the State
sustains because of the act of | ||||||
19 | that person. The penalties in this Section are intended to | ||||||
20 | be remedial rather than punitive, and shall not preclude, | ||||||
21 | nor be precluded by, a criminal prosecution for the same | ||||||
22 | conduct. | ||||||
23 | (2) A person violating
this subsection shall also be | ||||||
24 | liable to the State for the costs of a civil
action brought | ||||||
25 | to recover any such penalty or damages.
| ||||||
26 | (b) Definitions. For purposes of this Section: |
| |||||||
| |||||||
1 | (1) The terms
"knowing" and "knowingly": | ||||||
2 | (A) mean that a person, with respect to | ||||||
3 | information:
| ||||||
4 | (i) has actual knowledge of the information;
| ||||||
5 | (ii) acts in deliberate ignorance of the truth | ||||||
6 | or falsity of the
information; or
| ||||||
7 | (iii) acts in reckless disregard of the truth | ||||||
8 | or falsity of the
information, and | ||||||
9 | (B) require no proof of specific intent to defraud.
| ||||||
10 | (2) The term "claim": | ||||||
11 | (A) means any
request or demand, whether under a | ||||||
12 | contract or otherwise, for money or
property and | ||||||
13 | whether or not the State has title to the money or | ||||||
14 | property, that | ||||||
15 | (i) is presented to an officer, employee, or | ||||||
16 | agent of the State; or | ||||||
17 | (ii) is made to a contractor, grantee, or other | ||||||
18 | recipient, if the money or property is to be spent | ||||||
19 | or used on the State's behalf or to advance a State | ||||||
20 | program or interest, and if the
State: | ||||||
21 | (I) provides or has provided any portion | ||||||
22 | of the money or property requested or
demanded; | ||||||
23 | or | ||||||
24 | (II) will reimburse such contractor, | ||||||
25 | grantee, or other
recipient for any portion of | ||||||
26 | the money or property which is requested
or |
| |||||||
| |||||||
1 | demanded; and | ||||||
2 | (B) does not include requests or demands for money | ||||||
3 | or property that the State has paid to an individual as | ||||||
4 | compensation for State employment or as an income | ||||||
5 | subsidy with no restrictions on that individual's use | ||||||
6 | of the money or property.
| ||||||
7 | (3) The term "obligation" means an established duty, | ||||||
8 | whether or not fixed, arising from an express or implied | ||||||
9 | contractual, grantor-grantee, or licensor-licensee | ||||||
10 | relationship, from a fee-based or similar relationship, | ||||||
11 | from statute or regulation, or from the retention of any | ||||||
12 | overpayment. | ||||||
13 | (4) The term "material" means having a natural tendency | ||||||
14 | to influence, or be capable of influencing, the payment or | ||||||
15 | receipt of money or property. | ||||||
16 | (c) Exclusion. This Section does not apply to any taxes | ||||||
17 | imposed, collected, or administered by the State of Illinois | ||||||
18 | claims, records, or
statements made under the Illinois Income | ||||||
19 | Tax Act .
| ||||||
20 | (Source: P.A. 95-128, eff. 1-1-08; 96-1304, eff. 7-27-10 .)
| ||||||
21 | ARTICLE 32. LIMITED LIABILITY COMPANY ACT | ||||||
22 | Section 32-5. The Limited Liability Company Act is amended | ||||||
23 | by changing Section 50-10 as follows:
|
| |||||||
| |||||||
1 | (805 ILCS 180/50-10)
| ||||||
2 | (Text of Section before amendment by P.A. 99-637 )
| ||||||
3 | Sec. 50-10. Fees.
| ||||||
4 | (a) The Secretary of State shall charge and collect in
| ||||||
5 | accordance with the provisions of this Act and rules
| ||||||
6 | promulgated under its authority all of the following:
| ||||||
7 | (1) Fees for filing documents.
| ||||||
8 | (2) Miscellaneous charges.
| ||||||
9 | (3) Fees for the sale of lists of filings and for | ||||||
10 | copies
of any documents.
| ||||||
11 | (b) The Secretary of State shall charge and collect for
all | ||||||
12 | of the following:
| ||||||
13 | (1) Filing articles of organization (domestic), | ||||||
14 | application for
admission (foreign), and restated articles | ||||||
15 | of
organization (domestic), $39 $500 . Notwithstanding the | ||||||
16 | foregoing, the fee for filing articles of organization | ||||||
17 | (domestic), application for admission (foreign), and | ||||||
18 | restated articles of organization (domestic) in connection | ||||||
19 | with a limited liability company with ability to establish | ||||||
20 | series pursuant to Section 37-40 of this Act is $59 $750 .
| ||||||
21 | (2) Filing articles of amendment or an amended | ||||||
22 | application for admission, $150.
| ||||||
23 | (3) Filing articles of dissolution or
application
for | ||||||
24 | withdrawal, $100.
| ||||||
25 | (4) Filing an application to reserve a name, $300.
| ||||||
26 | (5) Filing a notice of cancellation of a reserved name, |
| |||||||
| |||||||
1 | $100.
| ||||||
2 | (6) Filing a notice of a transfer of a reserved
name, | ||||||
3 | $100.
| ||||||
4 | (7) Registration of a name, $300.
| ||||||
5 | (8) Renewal of registration of a name, $100.
| ||||||
6 | (9) Filing an application for use of an assumed
name | ||||||
7 | under Section 1-20 of this Act, $150 for each
year or part | ||||||
8 | thereof ending in 0 or 5, $120 for each year or
part | ||||||
9 | thereof ending in 1 or 6, $90 for each year or part thereof | ||||||
10 | ending in 2 or
7, $60 for each year or part thereof ending | ||||||
11 | in 3 or 8, $30 for each year or
part thereof ending in 4 or | ||||||
12 | 9, and a renewal for each assumed name, $150.
| ||||||
13 | (10) Filing an application for change or cancellation | ||||||
14 | of an assumed
name, $100.
| ||||||
15 | (11) Filing an annual report of a limited liability
| ||||||
16 | company or foreign limited liability company, $250, if
| ||||||
17 | filed as required by this Act, plus a penalty if
| ||||||
18 | delinquent. Notwithstanding the foregoing, the fee for | ||||||
19 | filing an annual report of a limited liability company or | ||||||
20 | foreign limited liability company with ability to | ||||||
21 | establish series is $250 plus $50 for each series for which | ||||||
22 | a certificate of designation has been filed pursuant to | ||||||
23 | Section 37-40 of this Act and active on the last day of the | ||||||
24 | third month preceding the company's anniversary month, | ||||||
25 | plus a penalty if delinquent.
| ||||||
26 | (12) Filing an application for reinstatement of a
|
| |||||||
| |||||||
1 | limited liability company or foreign limited liability
| ||||||
2 | company
$500.
| ||||||
3 | (13) Filing Articles of Merger, $100 plus $50 for each | ||||||
4 | party to the
merger in excess of the first 2 parties.
| ||||||
5 | (14) Filing an Agreement of Conversion or Statement of | ||||||
6 | Conversion, $100.
| ||||||
7 | (15) Filing a statement of change of address of | ||||||
8 | registered office or change of registered agent, or both, | ||||||
9 | or filing a statement of correction, $25.
| ||||||
10 | (16) Filing a petition for refund, $15.
| ||||||
11 | (17) Filing any other document, $100.
| ||||||
12 | (18) Filing a certificate of designation of a limited | ||||||
13 | liability company with the ability to establish series | ||||||
14 | pursuant to Section 37-40 of this Act, $50.
| ||||||
15 | (c) The Secretary of State shall charge and collect all
of | ||||||
16 | the following:
| ||||||
17 | (1) For furnishing a copy or certified copy of any
| ||||||
18 | document, instrument, or paper relating to a limited
| ||||||
19 | liability company or foreign limited liability company,
or | ||||||
20 | for a certificate, $25.
| ||||||
21 | (2) For the transfer of information by computer
process | ||||||
22 | media to any purchaser, fees established by
rule.
| ||||||
23 | (Source: P.A. 97-839, eff. 7-20-12.)
| ||||||
24 | (Text of Section after amendment by P.A. 99-637 )
| ||||||
25 | Sec. 50-10. Fees.
|
| |||||||
| |||||||
1 | (a) The Secretary of State shall charge and collect in
| ||||||
2 | accordance with the provisions of this Act and rules
| ||||||
3 | promulgated under its authority all of the following:
| ||||||
4 | (1) Fees for filing documents.
| ||||||
5 | (2) Miscellaneous charges.
| ||||||
6 | (3) Fees for the sale of lists of filings and for | ||||||
7 | copies
of any documents.
| ||||||
8 | (b) The Secretary of State shall charge and collect for
all | ||||||
9 | of the following:
| ||||||
10 | (1) Filing articles of organization (domestic), | ||||||
11 | application for
admission (foreign), and restated articles | ||||||
12 | of
organization (domestic), $39 $500 . Notwithstanding the | ||||||
13 | foregoing, the fee for filing articles of organization | ||||||
14 | (domestic), application for admission (foreign), and | ||||||
15 | restated articles of organization (domestic) in connection | ||||||
16 | with a limited liability company with a series or the | ||||||
17 | ability to establish a series pursuant to Section 37-40 of | ||||||
18 | this Act is $59 $750 .
| ||||||
19 | (2) Filing amendments (domestic or foreign), $150.
| ||||||
20 | (3) Filing a statement of termination or
application
| ||||||
21 | for withdrawal, $25.
| ||||||
22 | (4) Filing an application to reserve a name, $300.
| ||||||
23 | (5) Filing a notice of cancellation of a reserved name, | ||||||
24 | $100.
| ||||||
25 | (6) Filing a notice of a transfer of a reserved
name, | ||||||
26 | $100.
|
| |||||||
| |||||||
1 | (7) Registration of a name, $300.
| ||||||
2 | (8) Renewal of registration of a name, $100.
| ||||||
3 | (9) Filing an application for use of an assumed
name | ||||||
4 | under Section 1-20 of this Act, $150 for each
year or part | ||||||
5 | thereof ending in 0 or 5, $120 for each year or
part | ||||||
6 | thereof ending in 1 or 6, $90 for each year or part thereof | ||||||
7 | ending in 2 or
7, $60 for each year or part thereof ending | ||||||
8 | in 3 or 8, $30 for each year or
part thereof ending in 4 or | ||||||
9 | 9, and a renewal for each assumed name, $150.
| ||||||
10 | (10) Filing an application for change or cancellation | ||||||
11 | of an assumed
name, $100.
| ||||||
12 | (11) Filing an annual report of a limited liability
| ||||||
13 | company or foreign limited liability company, $250, if
| ||||||
14 | filed as required by this Act, plus a penalty if
| ||||||
15 | delinquent. Notwithstanding the foregoing, the fee for | ||||||
16 | filing an annual report of a limited liability company or | ||||||
17 | foreign limited liability company is $250 plus $50 for each | ||||||
18 | series for which a certificate of designation has been | ||||||
19 | filed pursuant to Section 37-40 of this Act and is in | ||||||
20 | effect on the last day of the third month preceding the | ||||||
21 | company's anniversary month, plus a penalty if delinquent.
| ||||||
22 | (12) Filing an application for reinstatement of a
| ||||||
23 | limited liability company or foreign limited liability
| ||||||
24 | company
$500.
| ||||||
25 | (13) Filing articles of merger, $100 plus $50 for each | ||||||
26 | party to the
merger in excess of the first 2 parties.
|
| |||||||
| |||||||
1 | (14) Filing articles of conversion, $100.
| ||||||
2 | (15) Filing a statement of change of address of | ||||||
3 | registered office or change of registered agent, or both, | ||||||
4 | or filing a statement of correction, $25.
| ||||||
5 | (16) Filing a petition for refund, $15.
| ||||||
6 | (17) Filing a certificate of designation of a limited | ||||||
7 | liability company with a series pursuant to Section 37-40 | ||||||
8 | of this Act, $50. | ||||||
9 | (18) Filing articles of domestication, $100. | ||||||
10 | (19) Filing, amending, or cancelling a statement of | ||||||
11 | authority, $50. | ||||||
12 | (20) Filing, amending, or cancelling a statement of | ||||||
13 | denial, $10. | ||||||
14 | (21) Filing any other document, $100.
| ||||||
15 | (c) The Secretary of State shall charge and collect all
of | ||||||
16 | the following:
| ||||||
17 | (1) For furnishing a copy or certified copy of any
| ||||||
18 | document, instrument, or paper relating to a limited
| ||||||
19 | liability company or foreign limited liability company,
or | ||||||
20 | for a certificate, $25.
| ||||||
21 | (2) For the transfer of information by computer
process | ||||||
22 | media to any purchaser, fees established by
rule.
| ||||||
23 | (Source: P.A. 99-637, eff. 7-1-17.)
| ||||||
24 | ARTICLE 95. NO ACCELERATION OR DELAY |
| |||||||
| |||||||
1 | Section 95-995. No acceleration or delay. Where this Act | ||||||
2 | makes changes in a statute that is represented in this Act by | ||||||
3 | text that is not yet or no longer in effect (for example, a | ||||||
4 | Section represented by multiple versions), the use of that text | ||||||
5 | does not accelerate or delay the taking effect of (i) the | ||||||
6 | changes made by this Act or (ii) provisions derived from any | ||||||
7 | other Public Act.
| ||||||
8 | ARTICLE 99. EFFECTIVE DATE
| ||||||
9 | Section 99-999. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
|