Proposed Rules

86 Ill. Adm. Code 400.101, 400.105, 400.110, 400.115, 400.120, 400.125, 400.130

This rulemaking implements P.A. 103-0781 by creating new Part 400, County Grocery Retailers' Occupation Tax to provide rules for adopting and implementing the County Grocery Retailers' Occupation Tax.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule:

86 Ill. Adm. Code 401.101, 401.105, 401.110, 401.115, 401.120, 401.125, 401.130

This rulemaking implements P.A. 103-0781 by creating new Part 401, County Grocery Service Occupation Tax to provide rules for adopting and implementing the County Grocery Service Occupation Tax.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule:

86 Ill. Adm. Code 230.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the State and local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons. 

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 270.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are amended to implement the changes made by P.A. 104-0006 that affect the State and local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons. This rulemaking also makes minor technical changes to correct citations and grammar.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 280.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State,marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 100 - Section 100.2430

This rulemaking amends the current rule under 86 Ill. Adm. Code 100.2430 to reflect the statutory changes enacted under Public Act 104-6 (the Act). The rulemaking provides examples that illustrate application of the statutory provisions.

The Act amended IITA sections 203(a)(2)(D-17), (a)(2)(D-18), (b)(2)(E-12), (b)(2)(E-13), (c)(2)(G-12), (c)(2)(G-13), (d)(2)(d-7), and (d)(2)(D-8). These statutory provisions require taxpayers, subject to certain exceptions, to make addition modifications in the computation of base income in amounts equal to the federal deductions allowed for interest or intangible expenses or costs paid to 80/20 affiliates. The Act made two changes to these provisions. First, for taxpayers whose interest expense deduction is limited under the provisions of IRC §163(j), the Act deems any disallowed interest deduction as relating first to interest paid to unrelated parties. Second, the Act repeals two of the available exceptions to the addition modification for interest and one of the exceptions for intangible expenses.

• 1st Notice Begins: 4/24/2026
• 1st Notice Ends: 6/8/2026

• 2nd Notice Begins: 
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 100.2455, 100.2465, 100.2470, 100.2490

This rulemaking amends several sections in Subpart E: Additions to and Subtractions from Taxable Income of Individuals, Corporations, Trusts and Estates and Partnerships to reflect Public Law and Illinois statutory developments, technical corrections to statutory text and citations, and general updates.

• 1st Notice Begins: 9/4/2026
• 1st Notice Ends: 10/19/2026
• 2nd Notice Begins:
• Formal JCAR Meeting: 
• Final Rule:

86 Ill. Adm. Code 215.100, 215.105, 215.110, 215.115, 215.120, 215.130

This rulemaking updates the rules governing ICB. The proposed amendments clarify the role of conferee, proper representation, process for receiving petitions, and manner of holding hearings. The rulemaking adds a process for making payments and increases the amount for streamlining cases. 

• 1st Notice Begins: 9/11/2026
• 1st Notice Ends: 10/26/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 131.185

This rulemaking implements Public Act 104-0006 by creating new Section 131.185 to provide rules for the Remote Retailer Amnesty Program, which will occur from August 1, 2026, through October 31, 2026.

• 1st Notice Begins: 5/8/26
• 1st Notice Ends: 6/22/26
• 2nd Notice Begins: 6/30/26
• Formal JCAR Meeting: 7/14/26
• Final Rule: 

86 Ill. Adm. Code 131.101, 131.105, 131.107, 131.110, 131.115, 131.120, 131.125, 131.130, 131.140, 131.145, 131.150, 131.155. 131.160, 131.165, 131.170, 131.180

Changes are made throughout Part 131 to extend the provisions to servicepersons and Service Occupation Tax and to remove the 200-transaction tax remittance threshold for establishing nexus.

• 1st Notice Begins: 5/29/2026
• 1st Notice Ends: 7/13/2026
• 2nd Notice Begins: 9/18/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule: 

86 Ill. Adm. Code 370.101, 370.120

This rulemaking amends sections in Part 370, Metro East Mass Transit District Retailers' Occupation Tax to enact changes made by P.A. 103-0781 and P.A. 104-0457.

Section 370.101 is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption consumed off premises.

Section 370.120 is amended to update language incorporating by reference the Retailers' Occupation Tax Regulations.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule:

86 Ill. Adm. Code 380.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 380.101, 380.120

This rulemaking amends sections in Part 380, Regional Transportation Authority Service Occupation Tax to enact changes made by P.A. 103-0781 and P.A. 104-0457.

Section 380.101 is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption consumed off premises.

Section 380.120 is amended to update language incorporating by reference the Service Occupation Tax Regulations.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule:

86 Ill. Adm. Code 396.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 405.101, 405.105, 405.110, 405.115, 405.120, 405.125, 405.130

This rulemaking implements P.A. 103-0781 by creating new Part 405, Municipal Grocery Retailers' Occupation Tax to provide rules for adopting and implementing the Municipal Grocery Retailers' Occupation Tax.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule:

86 Ill. Adm. Code 406.101, 406.105, 406.110, 406.115, 406.120, 406.125, 406.130

This rulemaking implements P.A. 103-0781 by creating new Part 406, Municipal Grocery Service Occupation Tax to provide rules for adopting and implementing the Municipal Grocery Service Occupation Tax.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule:

86 Ill. Adm. Code 694.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 320.101, 320.120

This rulemaking amends sections in Part 320, Regional Transportation Authority Retailers' Occupation Tax to enact changes made by P.A. 103-0781 and P.A. 104-0457.

Section 320.101 is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption consumed off premises. Language from P.A. 104-0457 is incorporated to amend the Regional Transportation Authority to the Northern Illinois Transit Authority.

Section 320.120 is amended to incorporate changes from P.A. 104-0457, amending the Regional Transportation Authority to the Northern Illinois Transit Authority.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule: 

86 Ill. Adm. Code 330.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 330.101, 330.120

This rulemaking amends sections in Part 330, Regional Transportation Authority Service Occupation Tax to enact changes made by P.A. 103-0781 and P.A. 104-0457.

Section 330.101 is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption consumed off the premises where it is sold. Language from P.A. 104-0457 is incorporated to amend the Regional Transportation Authority to the Northern Illinois Transit Authority.

Section 330.120 is amended to incorporate changes from P.A. 104-0457, amending the Regional Transportation Authority to the Northern Illinois Transit Authority.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule: 

86 Ill. Adm. Code 130.101, 130.805

Changes are made to Part 130 to address the 15% rate established to apply when retailers do not provide adequate records to properly determine where a sale occurred and the corresponding local sales tax rate to apply.

• 1st Notice Begins:  5/29/2026
• 1st Notice Ends: 7/13/2026
• 2nd Notice Begins:  9/18/2026
• Formal JCAR Meeting:  10/20/2026
• Final Rule:

86 Ill. Adm. Code 130.120, 130.310

This rulemaking amends sections in Part 130, Retailers' Occupation Tax to enact changes made by P.A. 103-0781.

Section 130.120 is amended to add food for human consumption that is to be consumed off the premises where it is sold as exempt from State Retailers' Occupation Tax.

Section 130.310 is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption to be consumed off the premises on which it is sold.

• 1st Notice Begins:  5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins:  9/9/2026
• Formal JCAR Meeting:  10/20/2026
• Final Rule:

86 Ill. Adm. Code 691.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 905.100, 950.200

This rulemaking incorporates the changes made by Public Act 104-0100 regarding the timeframe for enrollment and a new requirement for penalties based on failure to remit contributions.

• 1st Notice Begins: 8/14/2026
• 1st Notice Ends: 9/28/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 140.101, 140.125, 140.126

This rulemaking amends sections in Part 140, Service Occupation Tax to enact changes made by P.A. 103-0781.

Section 140.101(b) is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption consumed off premises.

Section 140.125 is amended to add food for human consumption that is to be consumed off the premises where it is sold as exempt from State Service Occupation Tax.

Section 140.126 is amended to incorporate language from P.A. 103-0781, which eliminated the State tax on food for human consumption consumed off premises.

• 1st Notice Begins: 5/15/2026
• 1st Notice Ends: 6/29/2026
• 2nd Notice Begins: 9/9/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule: 

86 Ill. Adm. Code 160.105

Amendments are made to 160.105 to update the definition serviceperson maintaining a place of business in this State, removing the 200-transaction threshold. This definition was also updated to reflect changes made by Public Act 103-592 extending the Service Use Tax Act to cover the transfer by lease of tangible personal property as an incident of a sale of service.

• 1st Notice Begins: 5/29/2026
• 1st Notice Ends: 7/13/2026
• 2nd Notice Begins: 9/18/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule: 

86 Ill. Adm. Code 680.115

This rulemaking consolidates sourcing provisions across various local Service Occupation Tax rules by applying the sourcing rules set forth in 86 Ill. Adm. Code 270.115 to each Part. This rulemaking ensures that the sourcing of the local Service Occupation Tax aligns with that of the local Retailers' Occupation Tax. Additionally, the sourcing provisions are being amended to implement the changes made by P.A. 104-0006 that affect the local Service Occupation Tax liability of servicepersons maintaining a place of business in this State, marketplace facilitators, and marketplace servicepersons.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 660.21

Provides a process for distributors, who are located in Illinois, to submit their final return to the Department. Upon either terminating a business or having their license revoked, a distributor must file their final return with the Department and inventory the amount of untaxed tobacco products, not including little cigars in packages of 20 or 25, on hand. Such distributors shall transfer, sell, or remit the tax on the remaining untaxed tobacco products. Failure to transfer, sell, or remit the tax on the remaining tobacco products shall result in the Department assessing tax against the former distributor.

• 1st Notice Begins: 7/10/2026
• 1st Notice Ends: 8/24/2026
• 2nd Notice Begins:
• Formal JCAR Meeting:
• Final Rule:

86 Ill. Adm. Code 150.201

Amendments are made to 150.201 to update the definitions of retailer maintaining a place of business in this State, removing the 200-transaction threshold. This definition was also updated to reflect changes made by Public Act 103-592 extending the Use Tax Act to cover leases of tangible personal property.

• 1st Notice Begins: 5/29/2026
• 1st Notice Ends: 7/13/2026
• 2nd Notice Begins: 9/18/2026
• Formal JCAR Meeting: 10/20/2026
• Final Rule: