Bill > SB1888

This bill amends four Illinois tax acts (Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act) to extend a specific tax exemption related to centralized purchasing activities. The exemption, which was previously set to expire on June 30, 2016, will now be reinstated and apply from January 1, 2026, through December 31, 2031. Under this exemption, tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois can be temporarily stored in the state for two specific purposes: (1) to be transported outside Illinois for use solely outside the state, or (2) to be processed, fabricated, or manufactured into other tangible personal property that will be transported and used exclusively outside the state. To qualify, the taxpayer must obtain a permit from the Director of Revenue and maintain detailed records documenting the property's use and consumption outside of Illinois. The bill ensures that businesses can continue to take advantage of this tax-saving provision for an additional five-year period, providing flexibility for companies with centralized purchasing operations.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1888&GAID=18&DocTypeID=SB&SessionID=114&GA=104