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: 8/27/2020   
  • Formal JCAR Meeting: 9/15/2020
  • Final Rule: Published at 44 Illinois Register 16471

Income Tax / Implements Public Act 101-0031

86 Illinois Administrative Code - Sections 100.3220, 100.3370, 100.7030, 100.7036

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 parimutuel 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: 7/6/2020
  • 1st Notice Ends: 8/20/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule:

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.


Leveling the Playing Field for Illinois Retail Act

86 Illinois Administrative Code - Sections 131.101, 131.105, 131.107, 131.110, 131.115, 131.120, 131.125, 131.130, 131.135, 131.140, 131.145, 131.150, 131.155, 131.160, 131.165, 131.170, 131.175, 131.180

Public Acts 101-31 and 101-604 amended the Retailers’ Occupation Tax and enacted the Leveling the Playing Field for Illinois Retail Act to implement a series of structural changes to the Illinois sales tax laws to require “remote retailers” to collect and remit State and local retailers’ occupation taxes. This legislation provides that remote retailers may contract with certified service providers to perform their tax remittance functions. Remote retailers may also use certified automated systems to calculate and remit their own taxes. In addition to these changes, the legislation also modified the liability and role of marketplace facilitators. Beginning January 1, 2021, marketplace facilitators are required to remit State and local retailers’ occupation taxes on sales made over the marketplace on their own sales and sales made on behalf of marketplace sellers. The legislation provides that State and local retailers’ occupation taxes on sales made by remote retailers and marketplace facilitators on behalf of marketplace sellers are incurred based on the rate in effect at the location to which the tangible personal property is shipped or delivered or at which possession is taken by the purchaser (“destination sourcing”). State and local retailers’ occupation taxes for a marketplace facilitator’s own marketplace sales are incurred, depending on the nature of the transaction, either at the rate in effect at the location of Illinois inventory from which a sale is fulfilled or the Illinois location where selling activities otherwise occur (“origin sourcing”), or by using destination sourcing. Section 131.155 of this Part explains the sourcing rules for different types of retailers. The changes made by Public Acts 101-0031 and 101-0604 are intended to “level the playing field” between Illinois-based retailers and remote retailers by imposing State and local retailers’ occupation taxes on Illinois retailers, remote retailers and marketplace facilitators alike. These regulations implement the new requirements for remote retailers and marketplace facilitators, and explain the requirements for certified service providers and for the certified automated systems used by remote retailers.

  • 1st Notice Begins: 9/11/2020
  • 1st Notice Ends: 10/26/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule:

Municipal Motor Fuel Tax / Implements the provisions of PA 101-604

86 Illinois Administrative Code - Sections 696.101 696.105 696.110 696.115 696.120 696.125 696.130

Implements the provisions of PA101-604 which authorizes municipalities in Cook County to impose, beginning on July 1, 2020, a tax upon all persons engaged in the municipality in the business of selling motor fuel at retail at a rate not to exceed $0.03 per gallon.

  • 1st Notice Begins: 9/11/2020
  • 1st Notice Ends: 10/26/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule:

Retailers’ Occupation Tax / Information Sharing With Law Enforcement

86 Illinois Administrative Code - Section 130.915

Section 11 of the Retailers’ Occupation Tax Act provides that “[a]ll information received by the Department from returns filed under this Act, or from any investigation conducted under this Act, shall be confidential, except for official purposes….” The purpose of this rulemaking is to provide that when the Department is engaged in a joint investigation with a law enforcement authority to enforce the Retailers’ Occupation Tax Act or another tax Act administered by the Department, it is an official purpose within the meaning of Section 11 of the Retailers’ Occupation Tax Act (35 ILCS 120/11) for the Department to furnish information it receives in administering the Retailers’ Occupation Tax Act with the law enforcement authority.

  • 1st Notice Begins: 9/18/2020
  • 1st Notice Ends: 11/2/2020
  • 2nd Notice Begins:   
  • Formal JCAR Meeting:
  • Final Rule:

State Tax Lien Registry / Implements Article 1 of Public Act 100-22

86 Illinois Administrative Code - Sections 720.100, 720.110, 720.120

This rulemaking implements the provisions of Article 1 of Public Act 100-22.