SB 3019 — FINANCE-AGRICULTURAL BORROWER

(5) Shopping history;

(6) Purchase history;

and SB3019 Enrolled - 4 - LRB104 20255 HLH 33706 b (7) Biographical and other information compiled in databases.

"Provider of Targeted Advertising Services" or "Provider" means a person engaged in the occupation of providing targeted advertising services whose annual cumulative gross receipts from targeted advertising services provided in this State during the previous 12-month period exceed $1,000,000.

Each provider of targeted advertising services in this State shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether the provider met the $1,000,000 cumulative gross receipts threshold for the preceding 12-month period.

If the provider meets the threshold for a 12-month period, the provider is subject to the tax imposed under this Act and is required to remit the tax and file returns for one year.

At the end of that one-year period, the provider of targeted advertising services shall determine whether it met the threshold during the preceding 12-month period.

If the provider meets the threshold for the preceding 12-month period, they are required to continue to remit the tax imposed under this Act and file returns for the subsequent year.

If at the end of a one-year period a provider of targeted advertising services determines that it did not meet the threshold during the preceding 12-month period, that provider shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether the provider meets the SB3019 Enrolled - 5 - LRB104 20255 HLH 33706 b threshold for the preceding 12-month period.

"Targeted advertising services" means any programmatic written, oral, or graphic statement or representation conveyed through a digital interface or any other method of delivery, including, but not limited to, banner advertising, search engine advertising, interstitial advertising, and other comparable advertising services that use personal information about the people to whom the ads are being served.

"Targeted advertising services" does not include advertisement services on digital interfaces owned or operated by or operated on behalf of a news media entity.

"User-advertiser" means a person who contracts with a provider for targeted advertising services.

"User-consumer" or "user" means an individual or any other person to whom targeted advertisements are conveyed.

"User-consumer contact information" means a user-consumer's email address, telephone number, home address, mailing address, or any credit card information necessary to engage in a sales transaction.

"User-consumer data" means any information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked with a user-consumer, whether directly submitted to the provider or user-advertiser by the user-consumer or derived from other sources.

SB3019 Enrolled - 6 - LRB104 20255 HLH 33706 b Section 1-15.

Tax imposed.

(a) Beginning January 1, 2027, a tax is imposed upon providers of targeted advertising services at the rate of 10% of the gross receipts derived from such targeted advertising services provided in this State.

(b) The impact of the tax levied by this Act is imposed upon providers engaged in the business of providing targeted advertising services to user-advertisers in this State.

(c) Targeted advertising services are provided in this State when the location of the user-consumer of the targeted advertisement is in this State pursuant to Section 1-20.

(d) The tax imposed in this Section shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

(e) The tax imposed in this Section is not imposed upon the privilege of engaging in any business in Interstate Commerce or otherwise, which business may not, under the Constitution and Statutes of the United States, be made the subject of taxation by this State.

(f) The tax imposed in this Section is not imposed on the providing of targeted advertising services to the United States or any agency or instrumentality thereof.

(g) The tax imposed in this Section is not imposed on the providing of targeted advertising services if such services are sold to a user-advertiser that is exempt from use tax by SB3019 Enrolled - 7 - LRB104 20255 HLH 33706 b operation of federal law.

Section 1-20.

Determining the location of a user-consumer.

(a) The location of a user-consumer shall be determined by the provider of targeted advertising services using the totality of the user-consumer contact information within the provider's possession or control, including both technical information and nontechnical information included in the contract for digital advertising services.

(b) There shall be a rebuttable presumption that a user-consumer is located in this State if the user-consumer contact information associated with a device or account on record with or available to a provider indicates an Illinois home address, an Illinois mailing address, or an Illinois internet protocol address or other user-consumer data showing "place of primary use" in Illinois as defined in the Mobile Telecommunications Sourcing Conformity Act.

The burden of proving that a user-consumer is not located in this State is on the provider.

For administrative ease, a provider may create reasonable categorization standards to use in analyzing user-consumer data to determine if a user-consumer is located in Illinois;

however, its reliance on such standards does not alleviate the provider's burden of proof.

(c) Business entities that are part of a controlled group of corporations as defined in Section 1563(a) of the Internal Revenue Code shall be treated as a single entity for purposes SB3019 Enrolled - 8 - LRB104 20255 HLH 33706 b of meeting the definition of a provider under this Act.

Section 1-25.

Registration of providers of targeted advertising services.

(a) It is unlawful for any person to engage in business as a provider of targeted advertising services in this State on or after January 1, 2027, without a certificate of registration from the Department.

A provider of targeted advertising services shall register with the Department.

Application for a certificate of registration shall be made to the Department, by electronic means, in the form and manner prescribed by the Department and shall contain any reasonable information the Department may require.

The application shall contain an acceptance of responsibility signed by the person or persons who will be responsible for filing returns and payment of the tax due under this Act.

Upon receipt of the application for a certificate of registration in proper form and manner, the Department shall issue the applicant a certificate of registration.

(b) Certificates of registration issued by the Department under this Act shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in this Act.

A certificate of registration shall automatically be renewed, subject to revocation as provided by this Act, for an additional one year from the date of its expiration unless otherwise notified by SB3019 Enrolled - 9 - LRB104 20255 HLH 33706 b the Department as provided in this Section.

(c) The Department may refuse to issue, reissue, or renew a certificate of registration to any applicant for the reasons set forth in Section 2505-380 of the Department of Revenue Law of the Civil Administrative Code of Illinois.

No certificate of registration shall be issued to any person who is in default to the State of Illinois for moneys due under this Act or any other tax Act administered by the Department.

(d) Any person aggrieved by any decision of the Department under this Section may, within 30 days after notice of such decision, protest and request a hearing, whereupon the Department shall give notice to such person of the time and place fixed for such hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to such person.

In the absence of such a protest within 30 days, the Department's decision shall become final without any further determination being made or notice given.

The term "administrative decision" is as defined in Section 3-101 of the Code of Civil Procedure.

Section 1-30.

Revocation of certificate of registration.

(a) The Department may, after notice and a hearing as provided herein, revoke the certificate of registration of any person who violates any of the provisions of this Act or regulations promulgated pursuant to this Act.

Before revocation of a certificate of registration, the Department SB3019 Enrolled - 10 - LRB104 20255 HLH 33706 b shall, within 90 days after noncompliance and at least 7 days prior to the date of the hearing, give the person determined to be noncompliant notice in writing of the proposed revocation, and on the date designated shall conduct a hearing.

The lapse of such 90-day period shall not preclude the Department from conducting revocation proceedings at a later date if necessary.

Any hearing held under this Section shall be conducted by the Director or by any officer or employee of the Department designated by the Director.

(b) The Department may revoke a certificate of registration for the reasons set forth in Section 2505-380 of the Department of Revenue Law of the Civil Administrative Code of Illinois.

(c) When conducting any such proceeding, the Director or any officer or employee of the Department designated by the Director may administer oaths, and the Department may procure by its subpoena the attendance of witnesses and, by its subpoena duces tecum, the production of relevant books and papers.

Any circuit court, upon application either of the provider or of the Department, may, by order duly entered, require the attendance of witnesses and the production of relevant books and papers before the Department in any hearing relating to the revocation of certificates of registration.

Upon refusal or neglect to obey the order of the court, the court may compel obedience thereof by proceedings for contempt.

SB3019 Enrolled - 11 - LRB104 20255 HLH 33706 b (d) The Department may, by application to any circuit court, obtain an injunction requiring any person who engages in business as a provider under this Act to obtain a certificate of registration.

Upon refusal or neglect to obey the order of the court, the court may compel obedience by proceedings for contempt.

Section 1-35.

Return and payment.

(a) Each provider of targeted advertising services shall make a return to the Department on or before the 20th day of each month for the preceding calendar month stating the following:

(1) the provider's name;

(2) the address of the provider's principal place of business and the address of the principal place of business (if that is a different address) from which the provider engages in the business of providing targeted advertising services, including the location of the provider's servers, subject to tax under this Act;

(3) the total gross receipts received by the provider during the preceding calendar month for all targeted advertising services provided that are subject to tax under this Act;

(4) the amount of tax due, computed upon item (3) at the rate stated in Section 1-15;

(5) deductions allowed by law;

SB3019 Enrolled - 12 - LRB104 20255 HLH 33706 b (6) the signature of the provider;

and (7) such other information as the Department may reasonably require.

(b) All returns required to be filed and payments required to be made under this Act shall be by electronic means in the form and manner authorized by the Department.

Any amount that is required to be shown or reported on any return or other document under this Act shall, if such amount is not a whole-dollar amount, be increased to the nearest whole-dollar amount if the fractional part of a dollar is $0.50 or more and decreased to the nearest whole-dollar amount if the fractional part of a dollar is less than $0.50.

If a total amount of less than $1 is payable, refundable, or creditable, such amount shall be disregarded if it is less than $0.50 and shall be increased to $1 if it is $0.50 or more.

(c) The provider making the return provided for in this Section shall, at the time of making such return, pay to the Department the amount of tax imposed by this Act, less a discount of 1.75% but not to exceed $1,000 per return period, which is allowed to reimburse the provider for the expenses incurred in keeping records, preparing and filing returns, remitting the tax, and supplying data to the Department upon request.

No discount may be claimed by a provider on returns not timely filed and for taxes not timely remitted.

No discount may be claimed by a provider for any return that is not filed electronically.

No discount may be claimed by a SB3019 Enrolled - 13 - LRB104 20255 HLH 33706 b provider for any payment that is not made electronically.

(d) A provider of targeted advertising services who ceases to engage in the kind of business which makes the person responsible for filing returns under this Act shall file a final return under this Act with the Department not more than one month after discontinuing such business.

(e) If any payment provided for in this Section exceeds the provider's liabilities under this Act, as shown on an original monthly return, the Department shall, if requested by the provider, issue to the provider a credit memorandum no later than 30 days after the date of the request.

The credit evidenced by such credit memorandum may be assigned by the provider to a similar provider under this Act, in accordance with reasonable rules and regulations to be prescribed by the Department.

If no such request is made, the provider may credit such excess payment against tax liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules and regulations prescribed by the Department.

If the Department subsequently determines that all or any part of the credit taken was not actually due to the provider, the provider's 1.75% discount shall be reduced by the difference between the credit taken and that actually due, and that provider shall be liable for penalties and interest on such difference.

(f) If a provider fails to sign a return within 30 days after the proper notice and demand for signature by the SB3019 Enrolled - 14 - LRB104 20255 HLH 33706 b Department is received by the provider, the return shall be considered valid, and any amount shown to be due on the return shall be deemed assessed.

Section 1-40.

Books and records.

Every provider required to file a return under Section 1-35 of this Act shall keep books, records, papers, and other documents that adequately reflect the targeted advertising services provided in this State, including the information used in calculating the gross receipts from providing targeted advertising services in this State and the amount of tax due.

Providers are required to maintain records as needed to determine the location of a user-consumer pursuant to Section 1-20 of this Act.

The Department may adopt rules that establish requirements, including record forms and formats, for records required to be kept and maintained by providers.

Books, records, papers, and documents that are required by this Section to be kept shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees.

The books, records, papers, and documents for any period with respect to which the Department is authorized to issue a notice of tax liability shall be preserved until the expiration of that period.

Section 1-45.

Deposit of proceeds from targeted SB3019 Enrolled - 15 - LRB104 20255 HLH 33706 b advertising services tax.

The moneys received by the Department from the tax imposed by this Act shall be deposited into the General Revenue Fund.

Section 1-50.

Penalties.

Any provider who fails to file a return, or who violates any other provision of this Act, or who fails to keep books and records as required by this Act, or who files a fraudulent return, or who willfully violates any rule or regulation of the Department for the administration and enforcement of the provisions of this Act, or any officer or agent of a corporation or manager, member, or agent of a limited liability company subject to this Act who signs a fraudulent return filed on behalf of such corporation or limited liability company, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under this Act is guilty of a Class 3 felony.

A prosecution for any act in violation of this Section may be commenced at any time within 5 years of the commission of that act.

Section 1-55.

Department administration and enforcement.

The Department shall have full power to administer and enforce this Act, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax SB3019 Enrolled - 16 - LRB104 20255 HLH 33706 b or penalty hereunder.

In the administration of, and compliance with, this Act, the Department and persons who are subject to this Act shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6b, 6c, 8, 9, 10, and 11 of the Retailers' Occupation Tax Act and all of the provisions of the Uniform Penalty and Interest Act, which are not inconsistent with this Act, as fully as if those provisions were set forth herein.

References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean providers of targeted advertising services when used in this Act.

References in the incorporated Sections to sales of tangible personal property mean targeted advertising services subject to tax under this Act when used in this Act.

Section 1-60.

Illinois Administrative Procedure Act expressly adopted.

The Illinois Administrative Procedure Act is hereby expressly adopted and shall apply to all administrative rules and procedures of the Department of Revenue under this Act, except that:

(1) paragraph (b) of Section 5-10 of the Illinois Administrative Procedure Act does SB3019 Enrolled - 17 - LRB104 20255 HLH 33706 b not apply to final orders, decisions, and opinions of the Department;

and (2) subparagraph (a)(ii) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Article.

Section 1-65.

Rulemaking.

The Department may adopt rules in accordance with the Illinois Administrative Procedure Act and prescribe forms relating to the administration and enforcement of this Act as it deems appropriate.

Section 1-70.

Home rule limitation.

The taxation of the occupation of providing targeted advertising services is an exclusive power and function of the State.

A home rule unit may not impose a tax on the occupation of providing targeted advertising services as set out in this Act.

This Section is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

Section 1-900.

The Counties Code is amended by changing Section 5-1009 as follows:

(55 ILCS 5/5-1009) (from Ch.

34, par.

5-1009) Sec.

5-1009.

Limitation on home rule powers.

Except as provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1006.9, SB3019 Enrolled - 18 - LRB104 20255 HLH 33706 b 5-1007, and 5-1008, on and after September 1, 1990, no home rule county has the authority to impose, pursuant to its home rule authority, a retailers' occupation tax, service occupation tax, use tax, sales tax, or other tax on the use, sale, or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of said tangible personal property.

Notwithstanding the foregoing, this Section does not preempt any home rule imposed tax such as the following:

(1) a tax on alcoholic beverages, whether based on gross receipts, volume sold, or any other measurement;

(2) a tax based on the number of units of cigarettes or tobacco products;

(3) a tax, however measured, based on the use of a hotel or motel room or similar facility;

(4) a tax, however measured, on the sale or transfer of real property;

(5) a tax, however measured, on lease receipts;

(6) a tax on food prepared for immediate consumption and on alcoholic beverages sold by a business which provides for on premise consumption of said food or alcoholic beverages;

or (7) other taxes not based on the selling or purchase price or gross receipts from the use, sale, or purchase of tangible personal property.

This Section does not preempt a home rule county from imposing a tax, however measured, on the use, for consideration, of a parking lot, garage, or other parking facility.

On and after December 1, 2019, no home rule county has the authority to impose, pursuant to its home rule authority, a SB3019 Enrolled - 19 - LRB104 20255 HLH 33706 b tax, however measured, on sales of aviation fuel, as defined in Section 3 of the Retailers' Occupation Tax Act, unless the tax revenue is expended for airport-related purposes.

For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act.

Aviation fuel shall be excluded from tax only for so long as the revenue use requirements of 49 U.S.C.

47017(b) and 49 U.S.C.

47133 are binding on the county.

On and after the effective date of this amendatory Act of the 104th General Assembly, no home rule county has the authority to impose, pursuant to its home rule authority, a tax, however measured, on sales of targeted advertising services, as defined in Section 1-10 of the Targeted Advertising Services Tax Act, an occupation tax, use tax, sales tax, or other tax on the use, sale, or purchase of targeted advertising services based on the gross receipts from such sales or the selling or purchase price of said targeted advertising services.

This Section is a limitation, pursuant to subsection (g) of Section 6 of Article VII of the Illinois Constitution, on the power of home rule units to tax.

The changes made to this Section by Public Act 101-10 are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

96-531,103-781, eff.

8-14-09.)8-5-24; Section 99.

104-417, eff.

8-15-25.) SB3019 Enrolled - 20 - LRB104 20255 HLH 33706 b Section 1-905.

The Illinois Municipal Code is amended by changing Section 8-11-6a as follows:

(65 ILCS 5/8-11-6a) (from Ch.

24, par.

8-11-6a) Sec.

8-11-6a.

Home rule municipalities;

preemption of certain taxes.

Except as provided in Sections 8-11-1, 8-11-5, 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on and after September 1, 1990, no home rule municipality has the authority to impose, pursuant to its home rule authority, a retailer's occupation tax, service occupation tax, use tax, sales tax or other tax on the use, sale or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of said tangible personal property.

Notwithstanding the foregoing, this Section does not preempt any home rule imposed tax such as the following:

(1) a tax on alcoholic beverages, whether based on gross receipts, volume sold or any other measurement;

(2) a tax based on the number of units of cigarettes or tobacco products (provided, however, that a home rule municipality that has not imposed a tax based on the number of units of cigarettes or tobacco products before July 1, 1993, shall not impose such a tax after that date);

(3) a tax, however measured, based on the use of a hotel or motel room or similar facility;

(4) a tax, however measured, on the sale or transfer of real property;

(5) a tax, however measured, on lease receipts;

(6) a tax on food prepared for immediate consumption and on alcoholic beverages SB3019 Enrolled - 21 - LRB104 20255 HLH 33706 b sold by a business which provides for on premise consumption of said food or alcoholic beverages;

or (7) other taxes not based on the selling or purchase price or gross receipts from the use, sale or purchase of tangible personal property.

This Section does not preempt a home rule municipality with a population of more than 2,000,000 from imposing a tax, however measured, on the use, for consideration, of a parking lot, garage, or other parking facility.

This Section is not intended to affect any existing tax on food and beverages prepared for immediate consumption on the premises where the sale occurs, or any existing tax on alcoholic beverages, or any existing tax imposed on the charge for renting a hotel or motel room, which was in effect January 15, 1988, or any extension of the effective date of such an existing tax by ordinance of the municipality imposing the tax, which extension is hereby authorized, in any non-home rule municipality in which the imposition of such a tax has been upheld by judicial determination, nor is this Section intended to preempt the authority granted by Public Act 85-1006.

On and after December 1, 2019, no home rule municipality has the authority to impose, pursuant to its home rule authority, a tax, however measured, on sales of aviation fuel, as defined in Section 3 of the Retailers' Occupation Tax Act, unless the tax is not subject to the revenue use requirements of 49 U.S.C.

47107(b) and 49 U.S.C.

47133, or unless the tax revenue is expended for airport-related purposes.

For purposes of this SB3019 Enrolled - 22 - LRB104 20255 HLH 33706 b Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act.

Aviation fuel shall be excluded from tax only if, and for so long as, the revenue use requirements of 49 U.S.C.

47107(b) and 49 U.S.C.

47133 are binding on the municipality.

On and after the effective date of this amendatory Act of the 104th General Assembly, no home rule municipality has the authority to impose, pursuant to its home rule authority, a tax, however measured, on sales of targeted advertising services, as defined in Section 1-10 of the Targeted Advertising Services Tax Act, an occupation tax, use tax, sales tax, or other tax on the use, sale, or purchase of targeted advertising services based on the gross receipts from such sales or the selling or purchase price of said targeted advertising services.

This Section is a limitation, pursuant to subsection (g) of Section 6 of Article VII of the Illinois Constitution, on the power of home rule units to tax.

The changes made to this Section by Public Act 101-10 are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(Source:

P.A.

103-781, eff.

8-5-24.) ARTICLE 3 Section 3-5.

Short title.

This Article may be cited as the Digital Asset Tax Act.

References in this Article to "this SB3019 Enrolled - 23 - LRB104 20255 HLH 33706 b Act" mean this Article.

Section 3-15.

Definitions.

In this Act:

"Customer" means a person receiving digital asset business activity from a digital asset broker for valuable consideration.

"Department" means the Department of Revenue.

"Digital asset" has the meaning set forth in Section 1-5 of the Digital Assets and Consumer Protection Act.

"Digital asset business activity" means any single occurrence of exchanging, transferring, or storing a digital asset as part of a business or on behalf of a customer who has entered into an agreement with a business for the provision of those services.

"Digital asset broker" means a person, as defined in Section 6045(c)(1)(D) of the Internal Revenue Code and any regulations as the Secretary of the Treasury may prescribe, who is engaged in the business of providing digital asset business activity to customers in this State.

"Digital asset broker maintaining a place of business in this State" means:

(1) Any digital asset broker having or maintaining within this State, directly or by a subsidiary, an office, distribution facilities, transmission facilities, sales office, warehouse or other place of business, or any agent or other representative operating within this State under SB3019 Enrolled - 24 - LRB104 20255 HLH 33706 b the authority of the digital asset broker or its subsidiary, irrespective of whether the place of business or agent or other representative is located here permanently or temporarily, or whether the digital asset broker or subsidiary is licensed to do business in this State.

(2) Any digital asset broker who is headquartered outside of this State and who sells digital asset business activity to Illinois customers remotely if the digital asset broker's gross receipts from digital asset business activity sales to Illinois customers are $100,000 or more.

The digital asset broker shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether the digital asset broker meets the threshold in this paragraph (2) for the preceding 12-month period.

If the broker meets the threshold for a 12-month period, the broker is considered a digital asset broker maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for one year.

At the end of the one-year period, the broker shall determine whether the broker met the threshold during the preceding 12-month period.

If the broker met the threshold for the preceding 12-month period, the broker is considered a broker maintaining a place of business in this State and is required to collect and remit the tax imposed under SB3019 Enrolled - 25 - LRB104 20255 HLH 33706 b this Act and file returns for the subsequent year.

If, at the end of a one-year period, a broker that was required to collect and remit the tax imposed under this Act determines that the broker did not meet the threshold during the preceding 12-month period, the broker shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether the broker meets the threshold for the preceding 12-month period.

"Exchange", when used as a verb, means to exchange, buy, sell, trade, or convert, on behalf of a customer, either of the following:

(1) a digital asset for fiat currency or one or more forms of digital assets;

and (2) fiat currency for one or more forms of digital assets.

"Exchange" does not include buying, selling, or trading digital assets for a person's own account in a principal capacity.

"Fiat currency" means a medium of exchange or unit of value issued by the United States or a foreign government that is designated as legal tender in its country of issuance.

"Person" means any natural individual, firm, partnership, association, corporation, limited liability company, or trust;

any receiver, executor, trustee, guardian, or other representative appointed by order of any court;

or any other SB3019 Enrolled - 26 - LRB104 20255 HLH 33706 b entity.

Unless expressly provided otherwise, the term "person" does not include a governmental entity or a unit or instrumentality of a government entity.

"Purchase price" means the consideration paid for the purchase of digital asset business activity from a digital asset broker, valued in money, whether received in money or otherwise, including cash, gift cards, credits, and property, and shall be determined without any deduction on account of the cost of materials used, labor or service costs, or any other expense whatsoever.

"Purchase price" includes any and all charges that the customer pays related to or incidental to the receipt of digital asset business activity.

"Sale" means an agreement between a digital asset broker and a customer for the broker to provide the customer with a digital asset business activity for valuable consideration.

If the digital asset business activity is sold as a bundle of separate services, each service shall constitute an individual sale for the purposes of this Act.

"Store", "storage", and "storing", except in the phrase "store of value", means to store, hold, or maintain custody or control of a digital asset on behalf of a customer by a digital asset broker.

"Transfer" means to transfer or transmit a digital asset on behalf of a customer, including by doing any of the following:

(1) crediting the digital asset to the account or SB3019 Enrolled - 27 - LRB104 20255 HLH 33706 b storage of another person;

(2) moving the digital asset from one account or storage of a customer to another account or storage of the same customer;

and (3) relinquishing custody or control of a digital asset to another person.

Section 3-20.

Tax imposed.

(a) Beginning January 1, 2027, a tax is imposed upon the privilege of receiving any digital asset business activity by a customer in this State at the rate of 0.2% of the value of the digital asset to which the digital asset business activity relates.

It shall be the duty of the digital asset broker making or effectuating the sale of the digital asset business activity to collect the tax provided by this Section on each sale.

(b) The tax imposed in this Section shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

(c) The tax imposed in this Section is not imposed upon the privilege of engaging in any business in Interstate Commerce or otherwise, which business may not, under the Constitution and Statutes of the United States, be made the subject of taxation by this State.

(d) The tax imposed in this Section is not imposed on the SB3019 Enrolled - 28 - LRB104 20255 HLH 33706 b providing of services to the United States or any agency or instrumentality thereof.

Section 3-25.

Sourcing.

As used in this Act, the term "in this State" means at a physical location within this State for a sale occurring in person.

For a sale occurring electronically or by phone, there shall be a rebuttable presumption that the customer requesting the sale is located in this State if the customer's contact information associated with a device or account on record with or available to a digital asset broker indicates an Illinois home address, an Illinois mailing address, or an Illinois internet protocol address or other data showing "place of primary use" in Illinois, as defined in the Mobile Telecommunications Sourcing Conformity Act.

The burden of proving that a customer is not located in this State is on the digital asset broker.

For administrative ease, a digital asset broker may create reasonable categorization standards to use in analyzing data to determine if a customer is located in Illinois;

however, its reliance on such standards does not alleviate the digital asset broker's burden of proof.

Section 3-30.

Registration of digital asset brokers.

(a) It is unlawful for any person to engage in business as a digital asset broker in this State on or after January 1, 2027, without a certificate of registration from the SB3019 Enrolled - 29 - LRB104 20255 HLH 33706 b Department.

A digital asset broker shall register with the Department.

Application for a certificate of registration shall be made to the Department, by electronic means, in the form and manner prescribed by the Department and shall contain any reasonable information the Department may require.

The application shall contain an acceptance of responsibility signed by the person or persons who will be responsible for filing returns and payment of the tax due under this Act.

Upon receipt of the application for a certificate of registration in proper form and manner, the Department shall issue the applicant a certificate of registration.

(b) Certificates of registration issued by the Department under this Act shall be valid for a period not to exceed one year after issuance unless sooner revoked, canceled, or suspended as provided in this Act.

A certificate of registration shall automatically be renewed, subject to revocation as provided by this Act, for an additional one year from the date of its expiration unless otherwise notified by the Department as provided in this Section.

(c) The Department may refuse to issue, reissue, or renew a certificate of registration to any applicant for the reasons set forth in Section 2505-380 of the Department of Revenue Law of the Civil Administrative Code of Illinois.

No certificate of registration shall be issued to any person who is in default to the State of Illinois for moneys due under this Act or any other tax Act administered by the Department.

SB3019 Enrolled - 30 - LRB104 20255 HLH 33706 b (d) Any person aggrieved by any decision of the Department under this Section may, within 30 days after notice of such decision, protest and request a hearing, whereupon the Department shall give notice to such person of the time and place fixed for such hearing and shall hold a hearing in conformity with the provisions of this Act and then issue its final administrative decision in the matter to such person.

In the absence of such a protest within 30 days, the Department's decision shall become final without any further determination being made or notice given.

The term "administrative decision" is as defined in Section 3-101 of the Code of Civil Procedure.

Section 3-35.

Collection of tax.

(a) Any digital asset broker maintaining a place of business in this State shall collect the tax imposed by this Act from the customer at the rate stated in Section 3-20 for the privilege of receiving digital asset business activity in this State and shall remit the tax to the Department as provided in Section 3-40 of this Act.

Any such digital asset broker shall be liable for the tax whether or not the tax has been collected by the digital asset broker.

To the extent that a digital asset broker that is required to collect the tax imposed by this Act has actually collected that tax, such tax is held in trust for the benefit of the Department.

(b) All digital asset business activities provided to a customer that are subject to tax under this Act are presumed SB3019 Enrolled - 31 - LRB104 20255 HLH 33706 b subject to tax collection.

Digital asset brokers shall collect the tax from customers by adding the tax to the amount of the purchase price received from the customer for the digital asset business activity subject to tax under this Act.

The tax imposed by the Act shall, when collected, be stated as a distinct item separate and apart from the purchase price of the digital asset business activity subject to tax under this Act.

However, if it is not possible to state the tax separately, the Department may, by rule, exempt the purchase from this requirement if customers are notified by language on the invoice or other written notification that the tax is included in the purchase price.

(c) Every digital asset broker shall, when collecting the tax as provided in Section 3-20 of this Act from the customer, give to the customer (if demanded by the customer) a receipt for the tax in the manner and form prescribed by the Department.

The receipt shall be sufficient to relieve the customer from further liability for the tax to which the receipt may refer.

(d) The tax imposed by this Act shall constitute a debt of the customer to the digital asset broker who provides such taxable activity until paid, and, if unpaid, is recoverable at law in the same manner as the original charge for such taxable activity.

(e) If any digital asset broker erroneously collects tax or collects more from the customer than the customer's SB3019 Enrolled - 32 - LRB104 20255 HLH 33706 b liability for the sale, the customer shall have a legal right to claim a refund of such amount from such digital asset broker.

However, if such amount is not refunded to the customer for any reason, the digital asset broker is liable to pay such amount to the Department.

(f) Any person purchasing a digital asset business activity subject to tax under this Act as to which there has been no charge made to the customer of the tax imposed by Section 3-20 shall make payment of the tax imposed by Section 3-20 in the form and manner provided by the Department not later than the 20th day of the month following the month of payment for the digital asset business activity.

Section 3-40.

Return and payment.

(a) Each digital asset broker shall make a return to the Department on or before the 20th day of each month for the preceding calendar month stating the following:

(1) the digital asset broker's name;

(2) the address of the digital asset broker's principal place of business;

(3) the amount of digital asset business sales made by the digital asset broker during the preceding calendar month;

(4) the amount of tax due, computed as set forth in this Act;

(5) the signature of the digital asset broker;

and SB3019 Enrolled - 33 - LRB104 20255 HLH 33706 b (6) such other information as the Department may reasonably require.

(b) All returns required to be filed and payments required to be made under this Act shall be by electronic means in the form and manner authorized by the Department.

(c) Any amount that is required to be shown or reported on any return or other document under this Act shall, if such amount is not a whole-dollar amount, be increased to the nearest whole-dollar amount if the fractional part of a dollar is $0.50 or more and decreased to the nearest whole-dollar amount if the fractional part of a dollar is less than $0.50.

If a total amount of less than $1 is payable, refundable, or creditable, such amount shall be disregarded if it is less than $0.50 and shall be increased to $1 if it is $0.50 or more.

(d) A digital asset broker who ceases to engage in the kind of business which makes the person responsible for filing returns under this Act shall file a final return under this Act with the Department not more than one month after discontinuing such business.

(e) If any payment provided for in this Section exceeds the digital asset broker's liabilities under this Act, as shown on an original monthly return, the Department shall, if requested by the digital asset broker, issue to the digital asset broker a credit memorandum no later than 30 days after the date of the request.

The credit evidenced by such credit memorandum may be assigned by the digital asset broker to a SB3019 Enrolled - 34 - LRB104 20255 HLH 33706 b similar digital asset broker under this Act, in accordance with reasonable rules and regulations to be prescribed by the Department.

If no such request is made, the digital asset broker may credit such excess payment against tax liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules and regulations prescribed by the Department.

If the Department subsequently determines that all or any part of the credit taken was not actually due to the digital asset broker, that digital asset broker shall be liable for penalties and interest on such difference.

(f) If a digital asset broker fails to sign a return within 30 days after the proper notice and demand for signature by the Department is received by the digital asset broker, the return shall be considered valid, and any amount shown to be due on the return shall be deemed assessed.

Section 3-45.

Books and records.

Every digital asset broker required to file a return under this Act shall keep books, records, papers, and other documents that adequately reflect digital asset business activity sold in this State, including the information used in calculating the amount of tax due.

Digital asset brokers are required to maintain records as needed to determine the location of a sale pursuant to Section 3-25 of this Act.

The Department may adopt rules that establish requirements, including record forms and formats, for records required to be kept and maintained by SB3019 Enrolled - 35 - LRB104 20255 HLH 33706 b digital asset brokers.

Books, records, papers, and documents that are required by this Section to be kept shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees.

The books, records, papers, and documents for any period with respect to which the Department is authorized to issue a notice of tax liability shall be preserved until the expiration of that period.

Section 3-50.

Deposits of proceeds The moneys received by the Department from the tax imposed by this Act shall be deposited into the General Revenue Fund.

Section 3-55.

Criminal penalties.

Any digital asset broker who fails to file a return, or who violates any other provision of this Act, or who fails to keep books and records as required by this Act, or who files a fraudulent return, or who willfully violates any rule or regulation of the Department for the administration and enforcement of the provisions of this Act, or any officer or agent of a corporation or manager, member, or agent of a limited liability company subject to this Act who signs a fraudulent return filed on behalf of such corporation or limited liability company, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under this Act is guilty of a Class 3 felony.

A SB3019 Enrolled - 36 - LRB104 20255 HLH 33706 b prosecution for any act in violation of this Section may be commenced at any time within 5 years of the commission of that act.

Section 3-60.

Department administration and enforcement.

The Department shall have full power to administer and enforce this Act, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder.

In the administration of, and compliance with, this Act, the Department and persons who are subject to this Act shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6b, 6c, 8, 9, 10, and 11 of the Retailers' Occupation Tax Act and all of the provisions of the Uniform Penalty and Interest Act, which are not inconsistent with this Act, as fully as if those provisions were set forth herein.

References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean digital asset brokers when used in this Act.

References in the SB3019 Enrolled - 37 - LRB104 20255 HLH 33706 b incorporated Sections to sales of tangible personal property mean sale of digital asset business activity subject to tax under this Act when used in this Act.

Section 3-65.

The Illinois Administrative Procedure Act.

The Illinois Administrative Procedure Act is hereby expressly adopted and shall apply to all administrative rules and procedures of the Department under this Act, except that:

(1) paragraph (b) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to final orders, decisions, and opinions of the Department;

and (2) subparagraph (a)(ii) of Section 5-10 of the Illinois Administrative Procedure Act does not apply to forms established by the Department for use under this Article.

Section 3-70.

Rulemaking.

The Department may adopt rules in accordance with the Illinois Administrative Procedure Act and prescribe forms relating to the administration and enforcement of this Act as it deems appropriate.

ARTICLE 5 Section 5-5.

The Business Corporation Act of 1983 is amended by changing Section 15.05 and by adding Section 15.98 as follows:

SB3019 Enrolled - 38 - LRB104 20255 HLH 33706 b (805 ILCS 5/15.05) (from Ch.

32, par.

15.05) Sec.

15.05.

Fees, franchise taxes, and charges to be collected by Secretary of State.

The Secretary of State shall charge and collect in accordance with the provisions of this Act:

(a) Fees for filing documents.

(b) License fees.

(c) Franchise taxes.

(d) Miscellaneous charges.

(e) Fees for filing annual reports.

(f) Social media platform fees.

(Source:

P.A.

93-59, eff.

7-1-03.) (805 ILCS 5/15.98 new) Sec.

15.98.

Social media platform fee.

(a) Beginning January 1, 2027 and monthly thereafter within 14 days of the start of each month, each social media platform shall submit to the Secretary of State a report of the average number of monthly users of the platform located in the State of Illinois.

(b) Beginning January 1, 2027, the following fees are imposed on social media platforms based on the number of Illinois users from whom the social media platform collects data within a month.

The fees must be paid to the Secretary of State no later than the 14th day of the first succeeding calendar month:

SB3019 Enrolled - 39 - LRB104 20255 HLH 33706 b (1) social media platforms with over 100,000 Illinois users but not more than 500,000 Illinois users shall pay $0.10 per month on the number of Illinois users over 100,000 but not more than 500,000;

(2) social media platforms with over 500,000 Illinois users but not more than 1,000,000 Illinois users shall pay $40,000, plus $0.25 per month multiplied by the number of Illinois users over 500,000 but not more than 1,000,000;

and (3) social media platforms with over 1,000,000 Illinois users shall pay $165,000, plus $0.50 per month multiplied by the number of Illinois users over 1,000,000.

If a social media platform fails or refuses to pay the monthly fee to the Secretary of State, there shall be added to the fee an amount equal to 100% of the unpaid fee and any penalties each month until the fee is paid.

(c) The Secretary of State shall deposit a portion of the fees collected pursuant to this Section, in the amount of $170,000 per month, into the Secretary of State Special Services Fund.

The Secretary of State shall deposit the remainder of the fees collected pursuant to this Section into the Common School Fund.

The Secretary of State shall pay the funds to the State Comptroller within 30 days after receipt of the funds.

(d) As used in this Section:

"Consumer Price Index" means the index published by the SB3019 Enrolled - 40 - LRB104 20255 HLH 33706 b Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84=100.

"Social media platform" means a website or internet medium that:

(1) permits a person to become a registered user, establish an account, or create a profile for the purpose of allowing users to create, share, and view user-generated content through that account or profile;

(2) enables one or more users to generate content that can be viewed by other users of the medium;

and (3) primarily serves as a medium for users to interact with content generated by other users of the medium.

"Social media platform" does not include a not-for-profit organization, as defined in the General Not For Profit Corporation Act of 1986.

(e) On January 1, 2028 and on each January 1 thereafter, the fees charged under this Section shall each be increased by an amount equal to the annual unadjusted percentage increase in the Consumer Price Index for the 12-month period ending with the March preceding each July 1, including all previous adjustments, rounded down to the nearest whole number.

(f) A social media platform shall not vary the cost of access, features, services, or in-app purchases for any user based on the geographic origin of the user's login, activity, SB3019 Enrolled - 41 - LRB104 20255 HLH 33706 b or account registration for the purposes of recouping the fee under this Section.

A violation of this subsection regarding users' access to features and services constitutes an injury to that individual.

Any individual alleging a violation of this subsection (f) by a social media platform may bring a civil action in the circuit court.

An individual protected by this subsection shall not be required, as a condition of service or otherwise, to accept mandatory arbitration of a claim arising under this subsection.

(g) The Secretary of State may order a social media platform to pay the required fees to the Secretary of State, determine the amount of the fee required to be paid to the Secretary of State by a social media platform, determine any delinquency by a social media platform in the fees to be paid to the Secretary of State and to order such delinquency be remedied, and audit any social media platform to enforce the provisions of this Section, including to ensure that a social media platform has paid the required fee and any penalties or other sums owed.

This subsection may be enforced by the Attorney General or a State's Attorney.

ARTICLE 10 Section 10-5.

The Illinois Income Tax Act is amended by changing Sections 207 and 1101 as follows:

SB3019 Enrolled - 42 - LRB104 20255 HLH 33706 b (35 ILCS 5/207) (from Ch.

120, par.

2-207) Sec.

207.

Net Losses.

(a) If after applying all of the (i) modifications provided for in paragraph (2) of Section 203(b), paragraph (2) of Section 203(c) and paragraph (2) of Section 203(d) and (ii) the allocation and apportionment provisions of Article 3 of this Act and subsection (c) of this Section, the taxpayer's net income results in a loss;

(1) for any taxable year ending prior to December 31, 1999, such loss shall be allowed as a carryover or carryback deduction in the manner allowed under Section 172 of the Internal Revenue Code;

(2) for any taxable year ending on or after December 31, 1999 and prior to December 31, 2003, such loss shall be allowed as a carryback to each of the 2 taxable years preceding the taxable year of such loss and shall be a net operating loss carryover to each of the 20 taxable years following the taxable year of such loss;

(3) for any taxable year ending on or after December 31, 2003 and prior to December 31, 2021, such loss shall be allowed as a net operating loss carryover to each of the 12 taxable years following the taxable year of such loss, except as provided in subsection (d);

and (4) for any taxable year ending on or after December 31, 2021, and for any net loss incurred in a taxable year prior to a taxable year ending on or after December 31, SB3019 Enrolled - 43 - LRB104 20255 HLH 33706 b 2021 for which the statute of limitation for utilization of such net loss has not expired, such loss shall be allowed as a net operating loss carryover to each of the 20 taxable years following the taxable year of such loss, except as provided in subsection (d).

(a-5) Election to relinquish carryback and order of application of losses.

(A) For losses incurred in tax years ending prior to December 31, 2003, the taxpayer may elect to relinquish the entire carryback period with respect to such loss.

Such election shall be made in the form and manner prescribed by the Department and shall be made by the due date (including extensions of time) for filing the taxpayer's return for the taxable year in which such loss is incurred, and such election, once made, shall be irrevocable.

(B) The entire amount of such loss shall be carried to the earliest taxable year to which such loss may be carried.

The amount of such loss which shall be carried to each of the other taxable years shall be the excess, if any, of the amount of such loss over the sum of the deductions for carryback or carryover of such loss allowable for each of the prior taxable years to which such loss may be carried.

(b) Any loss determined under subsection (a) of this Section must be carried back or carried forward in the same SB3019 Enrolled - 44 - LRB104 20255 HLH 33706 b manner for purposes of subsections (a) and (b) of Section 201 of this Act as for purposes of subsections (c) and (d) of Section 201 of this Act.

(c) Notwithstanding any other provision of this Act, for each taxable year ending on or after December 31, 2008, for purposes of computing the loss for the taxable year under subsection (a) of this Section and the deduction taken into account for the taxable year for a net operating loss carryover under paragraphs (1), (2), and (3) of subsection (a) of this Section, the loss and net operating loss carryover shall be reduced in an amount equal to the reduction to the net operating loss and net operating loss carryover to the taxable year, respectively, required under Section 108(b)(2)(A) of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the amount of discharge of indebtedness income that is excluded from gross income for the taxable year (but only if the taxable year ends on or after December 31, 2008) under Section 108(a) of the Internal Revenue Code and that would have been allocated and apportioned to this State under Article 3 of this Act but for that exclusion, and the denominator of which is the total amount of discharge of indebtedness income excluded from gross income under Section 108(a) of the Internal Revenue Code for the taxable year.

The reduction required under this subsection (c) shall be made after the determination of Illinois net income for the taxable year in which the indebtedness is discharged.

SB3019 Enrolled - 45 - LRB104 20255 HLH 33706 b (d) In the case of a corporation (other than a Subchapter S corporation):

(1) no carryover deduction shall be allowed under this Section for any taxable year ending after December 31, 2010 and prior to December 31, 2012;

(2) no carryover deduction shall exceed $100,000 for any taxable year ending on or after December 31, 2012 and prior to December 31, 2014 and for any taxable year ending on or after December 31, 2021 and prior to December 31, 2024;

and (3) no carryover deduction shall exceed $500,000 for any taxable year ending on or after December 31, 2024 and prior to December 31, 2027.

(4) no carryover deduction shall exceed 15% of the amount of net income computed under Section 202 without regard to the deduction allowed by this Section or $500,000, whichever is greater, for any taxable year ending on or after December 31, 2027, and before December 31, 2028;

(5) no carryover deduction shall exceed 30% of the amount of net income computed under Section 202 without regard to the deduction allowed by this Section or $500,000, whichever is greater, for any taxable year ending on or after December 31, 2028, and before December 31, 2029;

(6) no carryover deduction shall exceed 50% of the SB3019 Enrolled - 46 - LRB104 20255 HLH 33706 b amount of net income computed under Section 202 without regard to the deduction allowed by this Section or $500,000, whichever is greater, for any taxable year ending on or after December 31, 2029, and before December 31, 2030;

(7) no carryover deduction shall exceed 65% of the amount of net income computed under Section 202 without regard to the deduction allowed by this Section or $500,000, whichever is greater, for any taxable year ending on or after December 31, 2030 and before December 31, 2031;

(8) no carryover deduction shall exceed 80% of the amount of net income computed under Section 202 without regard to the deduction allowed by this Section or $500,000, whichever is greater, for any taxable year ending on or after December 31, 2031.

For the purposes of determining the taxable years to which a net loss may be carried under subsection (a) of this Section, no taxable year for which a deduction is disallowed under this subsection, or for which one of the restrictions in this subsection applies the deduction would exceed $100,000 or $500,000, as applicable, if not for this subsection, shall be counted.

(e) In the case of a residual interest holder in a real estate mortgage investment conduit subject to Section 860E of the Internal Revenue Code, the net loss in subsection (a) SB3019 Enrolled - 47 - LRB104 20255 HLH 33706 b shall be equal to:

(1) the amount computed under subsection (a), without regard to this subsection (e), or if that amount is positive, zero;

(2) minus an amount equal to the amount computed under subsection (a), without regard to this subsection (e), minus the amount that would be computed under subsection (a) if the taxpayer's federal taxable income were computed without regard to Section 860E of the Internal Revenue Code and without regard to this subsection (e).

The modification in this subsection (e) is exempt from the provisions of Section 250.

(Source:

P.A.

102-16, eff.

6-17-21;

102-669, eff.

11-16-21;

103-592, eff.

6-7-24.) (35 ILCS 5/1101) (from Ch.

120, par.

11-1101) Sec.

1101.

Lien for Tax.

(a) If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the State of Illinois upon all property and rights to property, whether real or personal, belonging to such person.

(b) Unless another date is specifically fixed by law, the lien imposed by subsection (a) of this Section shall arise at SB3019 Enrolled - 48 - LRB104 20255 HLH 33706 b the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.

(c) Deficiency procedure.

If the lien arises from an assessment pursuant to a notice of deficiency, such lien shall not attach and the notice referred to in this Section shall not be filed until all proceedings in court for review of such assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted.

If a late discretionary hearing has been granted pursuant to subsection (d) of Section 908 of this Act after a lien has attached, that lien shall remain in full force except to the extent to which the final assessment may be reduced by a revised final assessment following the hearing or review.

(d) Notice of lien.

The lien created by assessment shall terminate unless a notice of lien is filed, as provided in Section 1103 hereof, within 3 years from the date all proceedings in court for the review of such assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted.

Where the lien results from the filing of a return without payment of the tax or penalty shown therein to be due, the lien shall terminate unless a notice of lien is filed within 3 years from the date such return was filed with the Department.

For the purposes of this subsection (d), a tax return filed before the last day SB3019 Enrolled - 49 - LRB104 20255 HLH 33706 b prescribed by law, including any extension thereof, shall be deemed to have been filed on such last day.

The time limitation period on the Department's right to file a notice of lien shall not run (1) during any period of time in which the order of any court has the effect of enjoining or restraining the Department from filing such notice of lien, or (2) during the term of a repayment plan that taxpayer has entered into with the Department, as long as taxpayer remains in compliance with the terms of the repayment plan.

(Source:

P.A.

97-507, eff.

8-23-11;

98-446, eff.

8-16-13.) ARTICLE 15 Section 15-5.

The Motor Fuel Tax Law is amended by changing Section 2 as follows:

(35 ILCS 505/2) (from Ch.

120, par.

418) Sec.

2.

A tax is imposed on the privilege of operating motor vehicles upon the public highways and recreational-type watercraft upon the waters of this State.

(a) Prior to August 1, 1989, the tax is imposed at the rate of 13 cents per gallon on all motor fuel used in motor vehicles operating on the public highways and recreational type watercraft operating upon the waters of this State.

Beginning on August 1, 1989 and until January 1, 1990, the rate of the tax imposed in this paragraph shall be 16 cents per gallon.

SB3019 Enrolled - 50 - LRB104 20255 HLH 33706 b Beginning January 1, 1990 and until July 1, 2019, the rate of tax imposed in this paragraph, including the tax on compressed natural gas, shall be 19 cents per gallon.

Beginning July 1, 2019 and until July 1, 2020, the rate of tax imposed in this paragraph shall be 38 cents per gallon.

Beginning July 1, 2020 and until July 1, 2021, the rate of tax imposed in this paragraph shall be 38.7 cents per gallon.

Beginning July 1, 2021 and until January 1, 2023, the rate of tax imposed in this paragraph shall be 39.2 cents per gallon.

On January 1, 2023, the rate of tax imposed in this paragraph shall be increased by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in September of 2022.

On July 1, 2023, and on July 1 of each subsequent year, except for the time period beginning July 1, 2026, and ending on January 1, 2027, the rate of tax imposed in this paragraph shall be increased by an amount equal to the percentage increase, if any, in the Consumer Price Index for the 12 months ending in March of the year in which the increase takes place.

The percentage increase in the Consumer Price Index shall be calculated as follows:

(1) calculate the average Consumer Price Index for the full 12 months ending in March of the year in which the increase takes place;

(2) calculate the average Consumer Price Index for the full 12 months ending in March of the year immediately preceding the year in which the increase takes place;

(3) calculate the percentage increase, if any, in the current-year average determined under item (1) over the SB3019 Enrolled - 51 - LRB104 20255 HLH 33706 b preceding-year average determined under item (2).

The rate shall be rounded to the nearest one-tenth of one cent.

(a-5) Beginning on July 1, 2022 and through December 31, 2022, each retailer of motor fuel shall cause the following notice to be posted in a prominently visible place on each retail dispensing device that is used to dispense motor fuel in the State of Illinois:

"As of July 1, 2022, the State of Illinois has suspended the inflation adjustment to the motor fuel tax through December 31, 2022.

The price on this pump should reflect the suspension of the tax increase." The notice shall be printed in bold print on a sign that is no smaller than 4 inches by 8 inches.

The sign shall be clearly visible to customers.

Any retailer who fails to post or maintain a required sign through December 31, 2022 is guilty of a petty offense for which the fine shall be $500 per day per each retail premises where a violation occurs.

(b) Until July 1, 2019, the tax on the privilege of operating motor vehicles which use diesel fuel, liquefied natural gas, or propane shall be the rate according to paragraph (a) plus an additional 2 1/2 cents per gallon.

Beginning July 1, 2019, the tax on the privilege of operating motor vehicles which use diesel fuel, liquefied natural gas, or propane shall be the rate according to subsection (a) plus an additional 7.5 cents per gallon.

"Diesel fuel" is defined as any product intended for use or offered for sale as a fuel for engines in which the fuel is injected into the combustion SB3019 Enrolled - 52 - LRB104 20255 HLH 33706 b chamber and ignited by pressure without electric spark.

(c) A tax is imposed upon the privilege of engaging in the business of selling motor fuel as a retailer or reseller on all motor fuel used in motor vehicles operating on the public highways and recreational type watercraft operating upon the waters of this State:

(1) at the rate of 3 cents per gallon on motor fuel owned or possessed by such retailer or reseller at 12:01 a.m.

on August 1, 1989;

and (2) at the rate of 3 cents per gallon on motor fuel owned or possessed by such retailer or reseller at 12:01 A.M.

on January 1, 1990.

Retailers and resellers who are subject to this additional tax shall be required to inventory such motor fuel and pay this additional tax in a manner prescribed by the Department of Revenue.

The tax imposed in this paragraph (c) shall be in addition to all other taxes imposed by the State of Illinois or any unit of local government in this State.

(d) Except as provided in Section 2a, the collection of a tax based on gallonage of gasoline used for the propulsion of any aircraft is prohibited on and after October 1, 1979, and the collection of a tax based on gallonage of special fuel used for the propulsion of any aircraft is prohibited on and after December 1, 2019.

(e) The collection of a tax, based on gallonage of all products commonly or commercially known or sold as 1-K kerosene, regardless of its classification or uses, is SB3019 Enrolled - 53 - LRB104 20255 HLH 33706 b prohibited (i) on and after July 1, 1992 until December 31, 1999, except when the 1-K kerosene is either:

(1) delivered into bulk storage facilities of a bulk user, or (2) delivered directly into the fuel supply tanks of motor vehicles and (ii) on and after January 1, 2000.

Beginning on January 1, 2000, the collection of a tax, based on gallonage of all products commonly or commercially known or sold as 1-K kerosene, regardless of its classification or uses, is prohibited except when the 1-K kerosene is delivered directly into a storage tank that is located at a facility that has withdrawal facilities that are readily accessible to and are capable of dispensing 1-K kerosene into the fuel supply tanks of motor vehicles.

For purposes of this subsection (e), a facility is considered to have withdrawal facilities that are not "readily accessible to and capable of dispensing 1-K kerosene into the fuel supply tanks of motor vehicles" only if the 1-K kerosene is delivered from:

(i) a dispenser hose that is short enough so that it will not reach the fuel supply tank of a motor vehicle or (ii) a dispenser that is enclosed by a fence or other physical barrier so that a vehicle cannot pull alongside the dispenser to permit fueling.

Any person who sells or uses 1-K kerosene for use in motor vehicles upon which the tax imposed by this Law has not been paid shall be liable for any tax due on the sales or use of 1-K kerosene.

As used in this Section, "Consumer Price Index" means the SB3019 Enrolled - 54 - LRB104 20255 HLH 33706 b index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

(Source:

P.A.

102-700, eff.

4-19-22;

103-995, eff.

8-9-24.) ARTICLE 25 Section 25-5.

The Environmental Protection Act is amended by changing Section 7.5 as follows:

(415 ILCS 5/7.5) (from Ch.

111 1/2, par.

1007.5) Sec.

7.5.

Filing fees.