Amnesty Regulations / Implements Public Act 101-0009

86 Illinois Administrative Code - Sections 520.101, 520.105

This rulemaking updates the amnesty regulations to implement the upcoming amnesty program created by PA 101-9.

  • 1st Notice Begins: 8/16/2019
  • 1st Notice Ends: 9/29/2019
  • 2nd Notice Begins: 4/3/2020   
  • Formal JCAR Meeting: 4/21/2020
  • Final Rule Adopted:   

Cannabis Cultivation Privilege Tax / Implements Public Act 101-0027

86 Illinois Administrative Code - Sections 422.100, 422.105, 422.110, 422.115, 422.120, 422.125, 422.130, 422.135. 422.140, 422.145, 422.150

The proposed rulemaking implements P.A. 101-0027, codified at 410 ILCS 705/. Beginning September 1, 2019, a tax is imposed upon the privilege of cultivating cannabis at the rate of 7% of the gross receipts from the first sale of cannabis by a cultivator to a cultivator, craft grower, infuser or dispensing organization. The sale of any product that contains any amount of cannabis or any derivative thereof is subject to the tax on the full selling price of the product.

  • 1st Notice Begins: 2/14/2020
  • 1st Notice Ends: 3/30/2020
  • 2nd Notice Begins: 4/2/2020   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

Cannabis Purchaser Excise Tax / Implements Public Act 101-0027

86 Illinois Administrative Code - Sections 423.100, 423.105, 423.110, 423.115, 423.120, 423.125, 423.130, 423.135, 423.140, 423.145, 423.150, 423.155, 423.160, 423.165, 423.170, 423.175

The rulemaking implements P.A. 101-0027, codified at 410 ILCS 705/. Beginning January 1, 2020, a tax is imposed upon purchasers for the privilege of using cannabis at the following rates: 1) any cannabis, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol level at or below 35% shall be taxed at a rate of 10% of the purchase price; 2) any cannabis, other than a cannabisinfused product, with an adjusted delta-9-tetrahydrocannabinol level above 35% shall be taxed at a rate of 25% of the purchase price; and 3) a cannabis-infused product shall be taxed at rate of 20% of the purchase price.

  • 1st Notice Begins: 2/14/2020
  • 1st Notice Ends: 3/30/2020
  • 2nd Notice Begins: 4/2/2020   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

County Cannabis Retailers’ Occupation Tax / Implements Public Act 101-0027

86 Illinois Administrative Code - Sections 424.100, 424.105, 424.110, 424.115, 424.120, 424.125, 424.130, 424.135, 424.140, 424.145, 424.150, 424.155

The rulemaking implements P.A. 101-0027, in part, codified at 55 ILCS 5/5-1006.8, and P.A. 101-0363. On or after January 1, 2020, the corporate authorities of any county may, by ordinance, impose a tax upon all persons engaged in the business of selling cannabis, other than cannabis purchased under the Compassionate Use of Medical Cannabis Pilot Program Act. If imposed, the tax shall be imposed only in 0.25% increments. The tax rate may not exceed: 1) 3.75% of the gross receipts of sales made in unincorporated areas of the county; and 2) 3% of the gross receipts of sales made in a municipality located in the county. The tax is imposed on the full selling price of the product. The tax is not imposed on cannabis that is subject to tax under the Compassionate Use of Medical Cannabis Program Act.

  • 1st Notice Begins: 2/14/2020
  • 1st Notice Ends: 3/30/2020
  • 2nd Notice Begins: 4/2/2020   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

County Motor Fuel Tax / Implements Public Act 101-32

86 Illinois Administrative Code - Sections 695.101, 695.105, 695.115

This rulemaking implements the changes to the County Motor Fuel Tax Law (55 ILCS 5/5-1035.1) made by P.A. 101-32. P.A. 101-32 expands the authority to impose a tax on persons engaged in the county in the business of selling motor fuel to include Lake and Will Counties (in addition to the existing counties of DuPage, Kane, and McHenry). It also provides that the initial rate imposed may not be less than 4 cents per gallon (previously capped at 4 cents per gallon) and may not exceed 8 cents per gallon. Finally, P.A. 101-32 provides for automatic annual increases in the tax rate.

  • 1st Notice Begins: 11/15/2019
  • 1st Notice Ends: 12/30/2019
  • 2nd Notice Begins: 2/13/2020   
  • Formal JCAR Meeting: 3/31/2020
  • Final Rule Adopted:   

Hotel Operators’ Occupation Tax Act / Implements Public Act 100-213

86 Illinois Administrative Code - Sections 480.101, 480.105

86 Ill. Adm. Code 480.101 and 480.105, Hotel Operators’ Occupation Tax Act (“HOOT”) is being amended in response to the changes made by P.A. 100-213.

Effective July 1, 2017, the HOOT is not imposed upon gross rental receipts received by an entity that is organized and operated exclusively for religious purposes and possesses an active Exemption Identification Number issued by the Department pursuant to the Retailers’ Occupation Tax Act when acting as a hotel operator renting, leasing, or letting rooms: in furtherance of the purposes for which it is organized; or to entities that are organized and operated exclusively for religious purposes; possess an active Exemption Identification Number issued by the Department pursuant to the Retailers’ Occupation Tax Act; and rent the rooms in furtherance of the purposes for which they are organized.

No gross rental receipts are exempt under subparagraph (2) unless the hotel operator obtains the active Exemption Identification Number from the exclusively religious entity to whom it is renting and maintains that number in its books and records.

Examples were included in the rulemaking which will be helpful to taxpayers.

  • 1st Notice Begins: 2/14/2020
  • 1st Notice Ends: 3/30/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

Income Tax / Implements Public Act 101-0585

86 Illinois Administrative Code - Sections 100.2197, 100.2590, 100.3100, 100.3120, 100.7010

This rulemaking amends Sections 100.2197, 100.2590, 100.3100, 100.3120 and 100.7010 of the Illinois Income Tax regulations to reflect amendments to the "duty days" provisions in the IITA for allocating compensation of professional athletes enacted in PA 94-247 and to reflect the "working days" provisions for allocating compensation of employees generally enacted in PA 101-585. It also updates references to federal laws and eliminates duplicative provisions in the regulations.


Income Tax / Implements the New Minimum Wage Credit

86 Illinois Administrative Code - Section 100.7390

This rulemaking implements the new minimum wage credit found in Section 704A(i) of the Illinois Income Tax Act, 35 ILCS 5/704A(i), created by Public Act 101-0001. For reporting periods beginning on or after January 1, 2020, taxpayers may claim a withholding credit based on the increased wages attributable to the new minimum wage which took effect on January 1, 2020. The credit is reduced every year until it expires for reporting periods beginning on January 1, 2028.

  • 1st Notice Begins: 3/20/2020
  • 1st Notice Ends: 5/4/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

Income Tax / Reflects the repeal by PA 100-22 of the prohibition on persons who are required to use different apportionment methods from being members of the same unitary business group

86 Illinois Administrative Code - Section 100.2430

This rulemaking amends Section 100.2430 of the Illinois Income Tax regulations to reflect the repeal by the PA 100-22 of the prohibition on persons who are required to use different apportionment methods from being members of the same unitary business group. After the December 31, 2017, effective date of this repeal, the provisions in the IITA dealing with payments of interest and intangible expenses between taxpayers who would be members of the same unitary business group if not for this prohibition will no longer apply. This rulemaking also amends Section 100.2430 to take into account the limitations on the deduction of business interest expense under Internal Revenue Code Section 163(j) in taxable years beginning after December 31, 2017.


Medical Cannabis Cultivation Privilege Tax Law / Implements Public Act 101-0363

86 Illinois Administrative Code - Sections 429.105, 429.115, 429.120, 429.125, 429.135

The amendments implement changes made to the Medical Cannabis Cultivation Privilege Tax Law by P.A. 101-0363. Section 429.105 is amended to strike the word “Pilot” from the short title of the Compassionate Use of Medical Cannabis Pilot Program Act. Section 429.115 is amended to change the registration requirements for cultivators of medical cannabis to make them consistent with the registration requirements in the Retailers’ Occupation Tax Act. Section 429.115 is also amended to add registration language contained in the Department of Revenue Law in the Civil Administrative Code of Illinois. Section 429.1120 is amended to add language regarding revocation of certificate of registrations contained in the Department of Revenue Law. Section 429.150 is amended to add language regarding the filing of returns by electronic means. Section 429.130 is also amended to add language that permits the Department to require cultivators to file returns in combination with returns due under the recently enacted Cannabis Regulation and Tax Act (P.A. 101-0027). Section 429.135 is amended to add a penalty for failing to maintain books and records for inspection by the Department.

  • 1st Notice Begins: 2/14/2020
  • 1st Notice Ends: 3/30/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

Municipal Cannabis Retailers’ Occupation Tax / Implements Public Act 101-0027

86 Illinois Administrative Code - Sections 425.100, 425.105, 425.110, 425.115, 425.120, 425.125, 425.130, 425.135, 425.140, 425.145, 425.150, 425.155

The rulemaking implements P.A. 101-0027, codified in relevant part at 65 ILCS 5/8-11-23. On or after January 1, 2020, the corporate authorities of any municipality may, by ordinance, impose a tax upon all persons engaged in the business of selling cannabis at retail in the municipality on the gross receipts of the sales made in the course of business. If imposed, the tax shall be imposed only in 0.25% increments. The tax rate may not exceed 3% of the gross receipts of sales made in a municipality. The sale of any product that contains any amount of cannabis or any derivative thereof is subject to the tax on the full selling price of the product. The tax is not imposed on cannabis that is subject to tax under the Compassionate Use of Medical Cannabis Program Act.

  • 1st Notice Begins: 2/14/2020
  • 1st Notice Ends: 3/30/2020
  • 2nd Notice Begins: 4/2/2020   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

Parking Excise Tax / Implements Public Act 101-0031

86 Illinois Administrative Code - Sections 195.100, 195.105, 195.110, 195.115, 195.120, 195.125, 195.130, 195.135, 195.140, 195.145, 195.150

The proposed rule implements P.A. 101-0031, codified at 35 ILCS 525/. Beginning on January 1, 2020, a tax is imposed on the privilege of using in this State a parking space in a parking area or garage for the use of parking one or more motor vehicles, recreational vehicles, or other self-propelled vehicles. The tax is imposed at the rate of 6% of the purchase price for a parking space paid for on an hourly, daily, or weekly basis; and 9% of the purchase price for a parking space paid for on a monthly or annual basis.

  • 1st Notice Begins: 11/15/2019
  • 1st Notice Ends: 12/30/2019
  • 2nd Notice Begins: 2/13/2020   
  • Formal JCAR Meeting: 3/31/2020
  • Final Rule Adopted:   

Retailers’ Occupation Tax / Implements Public Act 101-0593

86 Illinois Administrative Code - Section 130.310

P.A. 101-0593 amends Section 2-10 of the Retailers’ Occupation Tax Act. The amendments to Section 2-10 clarify that that food consisting of or infused with adult use cannabis is taxed at the general merchandise rate of 6.25%, not the 1% rate imposed on food for human consumption that is to be consumed off the premises where it is sold. “Adult use cannabis” is defined as cannabis subject to tax under the Cannabis Cultivation Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and does not include cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act.


Retailers’ Occupation Tax / Trade in Credit

86 Illinois Administrative Code - Sections 130.425; 130.455

This rulemaking implements the provisions of P.A. 101-31 that, effective with sales made on or after January 1, 2020, imposes a $10,000 limit on the credit allowed to reduce the taxable selling price when a first division motor vehicle is traded in on the purchase of another motor vehicle.

  • 1st Notice Begins: 1/10/2020
  • 1st Notice Ends: 2/24/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule Adopted:   

Use Tax / Trade in Credit

86 Illinois Administrative Code - Sections 150.201, 150.1101

This rulemaking implements the provisions of P.A. 101-31 that, effective with sales made on or after January 1, 2020, imposes a $10,000 limit on the credit allowed to reduce the taxable selling price when a first division motor vehicle is traded in on the purchase of another motor vehicle.

  • 1st Notice Begins: 1/10/2020
  • 1st Notice Ends: 2/24/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule Adopted: