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Retailer's Occupation Tax / Amended to provide updates, to add statutory language, and to update language usage
These rules are being amended to provide updates, to add statutory language, and to update language usage. Section 130.311 is being amended to update language from “disabled person” to person with a disability” and provide updates based on the Department’s policies regarding medical appliances.
Section 130.325 is being amended to reflect P.A. 100-22, which added Graphic Arts machinery and equipment to the manufacturing machinery and equipment exemption, to provide a reference to Section 130.330, and delete duplicate sections.
Section 130.445 is being amended to include Federal taxes on diesel fuel as not deductible from gross receipts in calculating Retailers’ Occupation Tax liability.
Section 130.551 is being amended to implement P.A. 96-1384 which changed the rate used for prepayment of Retailers’ Occupation Tax on sales of motor fuel.
Section 130.705 is being amended to clarify that, in disputed cases involving certificates of registration, a hearing must be requested within 20 days.
Sections 130.745, 130.801, and 130.815 are being amended to implement P.A. 98-0584 by including cannabis dispensaries within the scope of these Sections and providing references to the Cannabis Regulation and Tax Act.
Several sections are being amended to update cross references, such as Sections 130.901, 130.1946, 130.1947, 130.1990, 130.2035, and 130.2060.
Section 130.1905 is being amended to correct a spelling error and to clarify that sellers should obtain certificates of resale for their own protection.
Section 130.1935 is being amended to incorporate Department policies from letter rulings regarding computer software.
Section 130.1953 is being amended to reflect statutory language contained in 35 ILCS 120/2-6 regarding intermodal terminal facility areas, make technical changes, and correct statutory references.
Section 130.2000 is being amended to correct references to 130.330, to modify pronouns, and to emphasize the need for sellers to obtain a certificate of resale.
Section 130.2085 is being amended to implement P.A. 100-1171 which created an exemption from Retailers’ Occupation Tax and Use Tax if a purchaser is exempt by federal law.
Section 130.2165 is being amended to correct a cross reference to 130.311 and to modify pronouns.
- 1st Notice Begins: 07/14/2023
- 1st Notice Ends: 08/28/2023
- 2nd Notice Submitted: 09/12/2023
- Formal JCAR Meeting: : 10 /17/2023
- Final Rule:
Public Utilities Revenue Act / Reflects changes made to the Public Utilities Revenue Act
This rulemaking amends 86 Ill. Adm. Code 510 to reflect changes made to the Public Utilities Revenue Act (Act) by legislation enacted by the Illinois General Assembly.
Sections 510.101, 510.110, and 510.120 are amended to reflect the changes to the Act enacted by P.A. 90-561, effective August 8, 1998. P.A. 90-561 added new definitions and eliminated several definitions. P.A. 90-561 added a new Section 2a.1 to the Act (tax imposed), amended Section 2a.2 (returns), and amended Section 4 (application of sections of the Retailers’ Occupation Tax Act). P.A. 90-561 repealed Sections 2 (tax-imposed section), 2a.3 (sunset provision), and 3 (returns). Section 510.101 is amended to reflect the change to Section 2a.1 enacted by P.A. 90-0624. Section 510.101 is amended to reflect the change of the name of the Department of Commerce and Community Affairs to the Department of Commerce and Economic Opportunity enacted by P.A. 95-793.
Section 510.105 is amended to reflect a change to Section 2a.2 of the Act enacted by P.A. 81-1255, effective June 26, 1980. All future monies received by the Department shall be paid into the Personal Property Tax Replacement Fund in the State Treasury, and not the General Revenue Fund.
Section 510.120(c) is amended to reflect a change to Section 2a.2 enacted by P.A. 100-1171.
Section 510.125, 510.131, 510.145, 510.175, 510.180, 510.190, and 510.195 are repealed as a result of the changes enacted by P.A. 90-561, specifically the repeal of Sections 2 and 3 of the Act and the amendments to Sections 1, 2a.1, and 2a.2 of the Act.
Section 510.130 is amended to more fully explain the process for obtaining, renewing, and revoking certificates of registration.
Section 510.135 is amended to reflect changes enacted by P.A. 90-561 and to accurately reflect the statutory language in Section 7 of the Act.
Section 510.140 is amended and reorganized to more fully explain the process for filing and processing claims for erroneously paid tax and to reflect statutory language. Section 510.140(b) is amended to reflect the changes enacted by P.A. 90-624. Section 510.140(d) is amended to reflect the changes enacted by P.A. 90-491 and P.A. 100-40.
A new Section 510.144 is added to provide additional guidance to persons liable for the tax after the enactment of P.A. 90-561.
Section 510.150 is amended to provide additional guidance to building owners who purchase gas for their own use and for distribution to their tenants after the enactment of P.A. 90-561.
Sections 510.165, 510.175, and 510.185 are amended to make the language consistent with the amendments enacted by P.A. 90-561.
A new Section 510.200 is added to reflect amendments made to Section 5 of the Act enacted by P.A 76-964, effective August 26, 1969; P.A. 90-491, effective January 1, 1998; and P.A. 90-655, effective July 1, 1998. Section 510.200 states that specific sections of the Retailers’ Occupation Tax Act, which are not inconsistent with the Act, and the Uniform Penalty and Interest Act, shall apply, as far as practicable, to the subject matter of the Act to the same extent as if such provisions were included in the Act.
- 1st Notice Begins: 07/14/2023
- 1st Notice Ends: 08/28/2023
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Income Tax / Implements amendments to the Income Tax Act concerning horse racing and casino winnings
This rulemaking implements the amendments P.A. 101-0031 made to Sections 303, 304 and 710 of the Illinois Income Tax Act, 35 ILCS 5/303, 5/304 and 5/710. Section 303, 35 ILCS 5/303, is amended as follows. For tax years ending on or after December 31, 2019, all horse racing and casino winnings under the Illinois Horse Racing Act of 1975 and the Illinois Gambling Act (formerly the Illinois Riverboat Gambling Act) are allocable to Illinois. Section 304, 35 ILCS 5/304, is amended as follows. For tax years ending on or after December 31, 2019, all gross receipts from winnings from pari-mutuel wagering conducted at a wagering facility licensed under the Illinois Horse Racing Act of 1975 [230 ILCS 5] or from winnings from gambling games conducted on a riverboat or in a casino or organization gaming facility licensed under the Illinois Gambling Act [230 ILCS 10] are in this State. Section 710, 35 ILCS 5/710, is amended to require withholding for residents and nonresidents for payments for winnings at a pari-mutuel wagering facility or from gambling games conducted on a riverboat or in a casino or organization gaming facility provided that the person making the payment is required to withhold under Section 3402(q) of the Internal Revenue Code.
- 1st Notice Begins: 12/27/2022
- 1st Notice Ends: 02/10/2023
- 2nd Notice Submitted: 07/24/2023
- Formal JCAR Meeting: 08/16/2023
- Final Rule:
Retailers’ Occupation Tax/ Sustainable Aviation Fuel Purchase Credit
This rulemaking implements the Sustainable Aviation Fuel Purchase Credit (sales tax credit) enacted by P.A. 102-1125 and revised by P.A. 103-9.
- 1st Notice Begins: 08/10/2023
- 1st Notice Ends: 09/24/2023
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Parking Excise Tax/ Implementing the Parking Excise Tax Act
The rulemaking amends Section 195.125 of the Parking Excise Tax rules. Subsection (c) of Section 195.125 requires that all returns required to be filed and payments required to be made under the Parking Excise Tax Act shall be by electronic means. Subsection (e) of Section 195.125 is amended to clarify that the vendor discount is allowed only for returns that are filed on or before the due date by electronic means as required by subsection (c) and only to the extent of payments that are made on or before the due date by electronic means as required by subsection (c).
- 1st Notice Begins: 06/16/2023
- 1st Notice Ends: 07/31/2023
- 2nd Notice Submitted: 08/10/2023
- Formal JCAR Meeting:
- Final Rule:
Local Government Revenue Recapture Act / Certified Audit Pilot Program
A new Part will be added to implement the provisions of Public Act 101-0628, which governs the Local Government Revenue Recapture Act, [50 ILCS 355], including the Certified Audit Pilot Project.
These rules set out requirements for municipalities, third parties, qualified practitioners, and the Department for participation in the Certified Audit Pilot Program including confidentiality, registration, training, and grounds for approval or rejection of participation by taxpayers. These rules also provide requirements for conducting certified audits and review of agreed-upon procedures as well as the Department’s role in reviewing certified audits conducted by qualified practitioners, including the requirements for documentation, workpaper retention and access, and reporting. Provisions for taxpayers to obtain informal and formal review of certified audit results are also provided.
- 1st Notice Begins: 06/02/2023
- 1st Notice Ends: 07/17/2023
- 2nd Notice Submitted: 08/10/2023
- Formal JCAR Meeting: 09/12/2023
- Final Rule:
Retailers’ Occupation Tax / Updates and Restructures Sales Tax Rolling Stock Exemption
This rulemaking updates and restructures the sales tax rolling stock exemption rule to: set forth the elements of the exemption in a logical order (motor vehicles/trailers, limousines, aircraft, and watercraft) and delete obsolete/dated provisions; implement P.A. 100-321, which established a new rolling stock test for motor vehicles and trailers to qualify for the exemption (see 130.340(d)(1)); revise the provisions related to motor vehicles and trailers prior to the enactment of P.A. 100-321, which provisions: continue to apply to limousines; and effective with the enactment of Public Act 98-584, apply to aircraft and watercraft; replace outdated references to the Interstate Commerce Commission with the Federal Motor Carrier Safety Administration and make other changes regarding documenting the exemption; and add examples of what movements do and do not qualify as interstate trips/miles for aircraft/watercraft and limousines.
- 1st Notice Begins: 09/01/2023
- 1st Notice Ends: 10/16/2023
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
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:
- Formal JCAR Meeting:
- Final Rule:
Use Tax/ Rules Related to the Rolling Stock Exemption
This rulemaking amends a provision in the Use Tax rules related to the rolling stock exemption, implementing changes 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:
- Formal JCAR Meeting:
- Final Rule:
Income Tax/ Proposed Amendments
This rulemaking amends Part 100 Income Tax, Subpart B Credits, Section 100.2198 Economic Development for a Growing Economy (EDGE) Credit (IITA 211), and Subpart V Employer’s Return and Payment of Tax Withheld, Section 100.7380 Economic Development for a Growing Economy (EDGE) and Small Business Job Creation Credit (IITA Section 704A(g) and (h)). The amendments to Section 100.2198 provide clarity to taxpayers on the proper documentation and procedure for claiming an EDGE credit on an income tax return. The amendments provide additional guidance to owners of a partnership or subchapter S corporation for pass through of the credit. These amendments align with current Department practice and other Department income tax credit regulations. The amendments to Section 100.7380 implement the changes to the EDGE Credit withholding election made by Public Acts 102-0700 and 103-0009. The election may be made by a startup taxpayer, as defined in the Economic Development for a Growing Economy Tax Credit Act, for any credit awarded pursuant to an Agreement executed on or after April 19, 2022, and shall be effective until the startup taxpayer has any Illinois income tax liability. Additionally, an EDGE Credit withholding election shall allow the credit to be taken against payments due during the first withholding reporting period that begins after the end of the withholding reporting period in which the credit is awarded, rather than be taken in the first calendar year after the credit is awarded. Additional updates and corrections to both sections are included in the rulemaking.
- 1st Notice Begins: 09/15/2023
- 1st Notice Ends: 10/30/2023
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule:
Income Tax/ Proposed Amendments
This rulemaking implements the changes to the standard exemption made by P.A. 103-0009. The standard exemption is held steady at $2,425 for 2023, then the COLA resumes for 2024-2028. The standard exemption sunsets after 2028. This rulemaking also incorporates the changes made by P.A. 102-0700 that increased the IL earned income tax credit to 20% of the federal credit and extended eligibility to taxpayers without Social Security numbers and taxpayers 18-25 or over 65 without dependents.
- 1st Notice Begins: 09/29/2023
- 1st Notice Ends: 11/13/2023
- 2nd Notice Submitted:
- Formal JCAR Meeting:
- Final Rule: