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Proposed Rules

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Service Occupation Tax/ Amend the Definition of “Sale of Service” 

This rulemaking amends the definition of “sale of service” in the Service Occupation Tax rules to reflect changes to the rolling stock exemption made by Public Acts 98-584 and 100-321 that are further described in companion changes being made to the Retailers’ Occupation Tax rules.

  • 1st Notice Begins: 09/01/2023
  • 1st Notice Ends: 10/16/2023
  • 2nd Notice Submitted: 11/29/2023
  • Formal JCAR Meeting: 12/12/2023
  • Final Rule: 01/18/2024

Income Tax / Implementing Section 234 of the Illinois Income Tax Act [35 ILCS 5/234], as authorized by Section 1401 of the Illinois Income Tax Act [35 ILCS 5/1401] and Section 2505-795 of the Department of Revenue Law [20 ILCS 2505/2505-795].

This rulemaking implements the process for applying for the new $500 voluntary emergency worker tax credit created by Public Act 103-0009.

  • 1st Notice Begins: 11/17/2023 
  • 1st Notice Ends: 01/01/2024
  • 2nd Notice Submitted: 01/05/2024
  • Formal JCAR Meeting: : 02/06/2024
  • Final Rule: 03/11/2024

Income Tax / Implementing Sections 709.5 and 1501 of the Illinois Income Tax Act

This rulemaking amends Part 100 Income Tax, Subpart EE Definitions, Section 100.9730 Investment Partnerships, implementing the changes in Public Act 103-0009 to the definition of “investment partnership” in the Illinois Income Tax Act Section 1501(a)(11.5). Additional updates and corrections to this section are included in the rulemaking. This rulemaking adds a new section (Section 100.7034) to Part 100 Income Tax, Subpart S Requirement and Amount of Withholding, implementing the changes in Public Act 103-0009 which amends the Illinois Income Tax Act to add Section 709.5(d) requiring investment partnerships to withhold an amount from each nonresident partner for taxable years ending on and after December 31, 2023.

  • 1st Notice Begins: 12/15/2023 
  • 1st Notice Ends: 01/29/2024
  • 2nd Notice Submitted: 
  • Formal JCAR Meeting: : 
  • Final Rule:

Rental Purchase Agreement Occupation and Use Tax Act / Implementing the Rental Purchase Agreement Occupation and Use Tax Act

This rulemaking creates a new Part 125, Rental Purchase Agreement Occupation and Use Tax, to implement P.A. 100-437, Rental Purchase Agreement Occupation and Use Tax Act, codified at 35 ILCS 180. The Rental Purchase Agreement Occupation Tax imposes a tax upon persons engaged in this State in the business of renting merchandise under a rental-purchase agreement in Illinois at the rate of 6.25% of the gross receipts received from the business. The Rental Purchase Agreement Use Tax imposes a tax upon the privilege of using, in this State, merchandise which is rented from a merchant at the rate of 6.25% of the rental price paid to the merchant under any rental purchase agreement.

  • 1st Notice Begins: 12/08/2023
  • 1st Notice Ends: : 01/22/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: 03/12/2024
  • Final Rule:

Retailers' Occupation Tax / Implementing the Illinois Retailers' Occupation Tax Act [35 ILCS 120] and authorized by Sections 2505-25 and 2505-795 of the Department of Revenue Law [20 ILCS 2505].

This amendment implements the First District Appellate Court's decision in Kishwaukee Auto Corral, Inc. v. Department of Revenue, 2021 IL App (1st) 200236. The amendment clarifies a cash basis retailer that cannot claim a bad debt deduction on its federal income tax return is entitled to claim a refund for sales tax paid by the retailer on that portion of an installment contract found to be worthless or uncollectable. The amendment provides new guidance for the calculation of a bad debt, including examples, as well as additional guidance regarding procedural requirements and record keeping. Changes were made to the affected administrative section to use neutral pronouns in referencing retailers and taxpayers.

  • 1st Notice Begins: 10/20/2023
  • 1st Notice Ends: : 12/04/2023
  • 2nd Notice Submitted: 12/13/2023 
  • Formal JCAR Meeting: : 01/26/2024
  • Final Rule: 02/08/2024

Taxpayer Rights/ Implementing the Taxpayers' Bill of Rights Act [20 ILCS 2520] and authorized by Section 2505-795 of the Civil Administrative Code of Illinois [20 ILCS 2505/2505-795].

Section 205.20 is being amended to conform with the current statutory text, 20 ILCS 2520/4 implemented by P.A. 93-951.

  • 1st Notice Begins: 11/27/2023
  • 1st Notice Ends: : 01/11/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: : 03/12/2024
  • Final Rule:

Cannabis Cultivation Privilege Tax/ Implementing the Cannabis Cultivation Privilege Tax Law [410 ILCS 705/Art. 60] and authorized by Section 60-45 of the Cannabis Cultivation Privilege Tax Law.

This rulemaking amends Sections 422.110 and 422.120 of Part 422, Cannabis Cultivation Privilege Tax. The rulemaking amends Section 422.110 to address the tax treatment of cannabis and cannabis concentrate transferred from cannabis cultivators to cannabis infusers to be processed into cannabis-infused products on behalf of cannabis cultivators. This rulemaking amends Section 422.120 to provide for additional record keeping requirements for infuser organizations that process cannabis and cannabis-infused products on behalf of cannabis cultivators.

  • 1st Notice Begins: 12/08/2023
  • 1st Notice Ends: : 01/22/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: 03/12/2024
  • Final Rule:

Charitable Games Act/ Section 5.1 of the Bingo License and Tax Act [230 ILCS 25/5.1]; Section 13 of the Charitable Games Act [230 ILCS 30/13]

This rulemaking updates the mailing address, email address and phone number for contacting the Office of Bingo and Charitable Games.

  • 1st Notice Begins: 12/03/2023
  • 1st Notice Ends: : 01/17/2024
  • 2nd Notice Submitted:  01/26/2024
  • Formal JCAR Meeting: : 02/06/2024
  • Final Rule:

County Water Commission Retailers' Occupation Tax/ Implementing Section 4(b) of the Water Commission Act of 1985 [70 ILCS 3720] and authorized by Section 2505-25 of the Civil Administrative Code of Illinois [20 ILCS 2505/2505-25].

This rulemaking repeals Part 630, County Water Commission Retailers' Occupation Tax. Public Act 96-1389, effective June 29, 2010, terminated this tax on June 1, 2016.

  • 1st Notice Begins: 11/27/2023
  • 1st Notice Ends: : 01/11/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: 03/12/2024 
  • Final Rule:

County Water Commission Service Occupation Tax/ Implementing Section 4(c) of the Water Commission Act of 1985 (Ill. Rev. Stat. 1989, ch. 111 2/3, par. 254(c)) and authorized by Section 39b3 of the Civil Administrative Code of Illinois (Ill. Rev. Stat. 1989, ch. 127, par. 39b3).

This rulemaking repeals Part 640, County Water Commission Service Occupation Tax. Public Act 96-1389, effective June 29, 2010, terminated this tax on June 1, 2016.

  • 1st Notice Begins: 11/27/2023
  • 1st Notice Ends: : 01/11/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: 03/12/2024. 
  • Final Rule:

County Water Commission Use Tax/ Implementing Section 4(d) of the Water Commission Act of 1985 (Ill. Rev. Stat. 1989, ch. 111 2/3, par. 254(d) and authorized by Section 39b3 of the Civil Administrative Code of Illinois (Ill. Rev. Stat. 1989, ch. 127, par. 39b3).

This rulemaking repeals Part 650, County Water Commission Use Tax. Public Act 96-1389, effective June 29, 2010, terminated this tax on June 1, 2016.

  • 1st Notice Begins: 11/27/2023
  • 1st Notice Ends: : 01/11/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: 03/12/2024
  • Final Rule:

Public Information, Rulemaking and Organization/Section 2505-795 of the Department of Revenue Law of the Civil Administrative Code of Illinois [20 ILCS 2505/2505-795]

This rulemaking incorporates the change made by Public Act 103-0098 requiring that federal change amended returns be filed and paid timely in order to avoid late-payment penalties. Examples are updated accordingly.

  • 1st Notice Begins: 11/03/2023
  • 1st Notice Ends: : 12/18/2023
  • 2nd Notice Submitted:  01/26/2024
  • Formal JCAR Meeting: :  02/06/2024
  • Final Rule:

Use Tax/Implementing the Use Tax Act [35 ILCS 105] and authorized by Sections 2505-90 and 2505-795 of the Civil Administrative Code of Illinois. (Department of Revenue Law) [20 ILCS 2505]

This rulemaking amends several sections of Part 150, Use Tax, to reflect new statutory developments, decisional law, and Department policies. This rulemaking also deletes outdated provisions in Part 150 and provides various technical changes.

  • 1st Notice Begins: 12/26/2023
  • 1st Notice Ends: 02/09/2024
  • 2nd Notice Submitted: 01/30/2024
  • Formal JCAR Meeting: 03/12/2024
  • Final Rule:

Service Use Tax/Implementing the Service Use Tax Act [35 ILCS 110] and authorized by Section 2505-100 of the Civil Administrative Code of Illinois. (Department of Revenue Law) [20 ILCS 2505/2505-100]

This rulemaking amends Part 160, Service Use Tax, to reflect new statutory developments, decisional law, and Department policies. This rulemaking also deletes outdated provisions in Part 160 and provides various technical changes.

  • 1st Notice Begins: 01/26/2024
  • 1st Notice Ends: 03/11/2024
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Parking Excise Tax/Implementing and authorized by the Parking Excise Tax Act [35 ILCS 525]

The rulemaking implements the amendments to the Parking Excise Tax Act (35 ILCS 525) enacted by Public Act 102-700, Article 100, effective July 1, 2023, and Public Act 103-9, Article 20, effective July 1, 2023. The amendments to the Parking Excise Tax Act clarify the imposition, collection, and remittance of the tax when booking intermediaries facilitate the use of parking spaces on behalf of registered and unregistered operators of parking areas and garages.

  • 1st Notice Begins: 02/16/2024
  • 1st Notice Ends: 04/01/2024
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Informal Conference Board/Implementing Section 2505-510, and authorized by Section 2505-795, of the Civil Administrative Code of Illinois [20 ILCS 2505/2505-510 and2505-795]

This rulemaking extends the time that must remain on the statute of limitations before Informal Conference Board (ICB) rights will be granted from 60 days to 180 days. That ensures the Audit Bureau has enough time to complete the internal review process and issue an assessment when taxpayers do not avail themselves of the ICB. This rulemaking provides that ICB will not hold cases nor make adjustments to issues that are related to pending litigation. This rulemaking also would expand ICB jurisdiction to include audit adjustments that result in reductions to net operating losses rather than assessments or claim denials. This allows taxpayers to seek informal review of the audit adjustments without having to wait until the losses have been used completely and a deficiency results. However, no protest rights will be afforded in these cases to remain consistent with IRS procedure.

  • 1st Notice Begins: 03/01/2024
  • 1st Notice Ends: 04/15/2024
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule: