Administrative Hearings

86 Illinois Administrative Code - Section 200.175

This Section 200.175 of the Department’s Administrative Hearings Rules is being amended to clarify that the Department has the authority to grant late discretionary hearings for Notices of Deficiency issued under the Income Tax Act in the same manner
as Notices of Tax Liability issued under the Retailers’ Occupation Tax Act. The authority to grant late discretionary hearings for Notices of Deficiency issued under the Income Tax Act was provided in Public Act 97-1129.

  • 1st Notice Begins: 6/25/2021
  • 1st Notice Ends: 8/27/2021
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Retailers’ Occupation Tax

86 Illinois Administrative Code - Section 130.120

This amended regulation implements Public Act 101-0629 which retroactively reinstated the Aircraft Maintenance exemption. This rule retroactively allows the exemption from December 31, 2014, when this exemption originally sunset, through the new sunset date of December 31, 2024. This amended regulation disallows any credit or refund for taxes paid from the original sunset date through the effective date of Public Act 101-0629 (February 5, 2020).

  • 1st Notice Begins: 4/9/2021
  • 1st Notice Ends: 5/24/2021
  • 2nd Notice Submitted: 7/13/2021
  • Formal JCAR Meeting: 8/18/2021
  • Final Rule:

Retailers’ Occupation Tax

86 Illinois Administrative Code - Section 130.2050

This amended regulation increases the presumed average cost of free meals provided to employees for purposes of establishing employers’ Use Tax liability from $0.75 to $3.50 to more accurately reflect true costs. This amended regulation also specifies tax is to be paid at the rate that would have been imposed when the employer acquired the goods from the supplier (generally low rate for groceries as the food was not initially purchased as food for immediate consumption), as this would be the taxable moment for these transactions. The presumed average cost of free meals has not been increased since 1977. The new amount was determined by adjusting the old amount for inflation.

  • 1st Notice Begins: 7/2/2021
  • 1st Notice Ends: 9/3/2021
  • 2nd Notice Submitted:
  • Formal JCAR Meeting:
  • Final Rule:

Telecommunications Excise Tax

86 Illinois Administrative Code - Section 495.111, 495.112

The rulemaking amends 86 Ill. Adm. Code 495, Telecommunications Excise Tax, by adding two new sections: Section 495.111, Registration of Retailers, and Section 495.112, Revocation of Certificate of Registration. The Telecommunications Excise Tax Act and Part 495 do not contain provisions regarding registration of telecommunications retailers. Under the Act, telecommunications retailers are responsible for collecting and remitting the tax and filing returns. The rulemaking sets forth information to be included on an application for certificate of registration, circumstances under which the Department may decline to issue a certificate, and an opportunity for hearing after such a declination. Section 495.112 permits the Department to revoke a certificate of registration if a retailer is in violation of the Act or rules after notice and an opportunity for hearing.

  • 1st Notice Begins: 4/9/2021
  • 1st Notice Ends: 5/24/2021
  • 2nd Notice Submitted: 7/13/2021
  • Formal JCAR Meeting: 8/18/2021
  • Final Rule:

Vehicle Use Tax / Amends Sections 151.105 and 151.110 of the Vehicle Use Tax Regulations

86 Illinois Administrative Code - Sections 151.105 and 151.110

The rulemaking amends Sections 151.105 and 151.110 of the Vehicle Use Tax regulations. 86 Ill. Adm Code 151.

The Illinois Vehicle Title & Registration Law (625 ILCS 5/3-1001) and rules identify 3 situations where the tax rate is assessed at the rate of $15 per transfer or purchase of a motor vehicle in a private transaction. One situation is when the transferee or purchaser is the spouse, mother, father, brother, sister or child of the transferor. Section 151.105(d)(3). Subsection (d)(3) is being amended to clarify that the tax rate shall be $15 per transfer of a motor vehicle when the transfer is from one spouse to the other spouse in a dissolution of marriage proceeding and the transfer is made no later than 90 days from the date of a final, non-appealable order of dissolution of marriage.

Presently, the Law and rules do not specify a date by which a return must be filed by the transferee of a motor vehicle subject to the Vehicle Use Tax. The Law empowers the Department to adopt rules that are reasonable and necessary to implement the Law. Generally, under the Use Tax Act, transaction reporting returns must be filed not later than 20 days after the date of delivery of the item that is being sold, but may be filed by the retailer at any time sooner than that if he chooses to do so. 35 ILCS 105/9. The proposed amendment to Section 151.115 provides that a transferee in a private transaction has 30 days to pay the tax and file a return.

  • 1st Notice Begins: 5/3/2021
  • 1st Notice Ends: 6/16/2021
  • 2nd Notice Submitted: 7/14/2021
  • Formal JCAR Meeting: 8/18/2021
  • Final Rule: