summary
Introduced
02/05/2025
02/05/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Retailers' Occupation Tax Act. Creates the Remote Retailer Amnesty Program. Requires the Department of Revenue to establish the Remote Retailer Amnesty Program for remote retailers owing State and local retailers' occupation taxes that are administered by the Department. Provides that the Program shall operate for a period from August 1, 2026 through October 31, 2026. Provides that the Program shall include a simplified retailers' occupation tax rate designed to allow a remote retailer who participates in the Program to report and remit at the authorized simplified retailers' occupation tax rate in lieu of the retailers' occupation tax rate otherwise due on sales made to Illinois customers. Provides that, upon payment by a remote retailer of all taxes due from that remote retailer using the simplified retailers' occupation tax rate for the eligible period, the Department shall abate and not seek to collect any interest or penalties that may be applicable, and the Department shall not seek civil or criminal prosecution against the remote retailer for the period of time for which amnesty has been granted to the taxpayer. Creates conditions for the provision of amnesty and remittance of local retailers' occupation tax under the Program. Provides conditions for the depositing of the net revenue realized under the Program. Provides that the Department shall have exclusive responsibility for reviewing and accepting applications for participation in the Program, as well as reviewing the eligibility of participants in the Program. Effective immediately.
AI Summary
This bill creates the Remote Retailer Amnesty Program, which allows remote sellers (online retailers) who owe state and local sales taxes in Illinois to pay a simplified, reduced tax rate during a specific period from August 1, 2026, through October 31, 2026. The program offers remote retailers who have met certain sales thresholds an opportunity to settle their outstanding tax liabilities at a simplified rate of either 9% or 1.75%, depending on the type of goods sold. If a remote retailer participates fully in the program, the Department of Revenue will waive interest and penalties and will not pursue civil or criminal prosecution for past tax obligations. To be eligible, retailers must register with the state, file electronic returns during the amnesty period, and meet specific conditions, such as not being under active criminal investigation and not committing fraud. The program aims to provide a straightforward way for online sellers to become compliant with Illinois tax laws, with the collected revenues being deposited into the State and Local Sales Tax Reform Fund. The Department of Revenue will have exclusive responsibility for reviewing and accepting applications and administering the program, with the ability to adopt rules for its implementation.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 04/11/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2899&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2899.htm |
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