Bill > SB2389

This bill amends four Illinois tax acts (Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act) to reinstate and extend an important tax exemption for businesses engaged in centralized purchasing activities. Specifically, the bill reinstates an exemption for tangible personal property purchased by taxpayers who temporarily store items in Illinois with the intention of either transporting them out of state for use exclusively outside Illinois or processing them for eventual use outside the state. The exemption, which was previously set to expire on June 30, 2016, is now extended to run from July 1, 2025 through June 30, 2030. This means businesses conducting centralized purchasing can continue to buy goods without paying Illinois use tax if the property will be used solely outside the state. To qualify, businesses must obtain a permit from the Director of Revenue and maintain records substantiating that the property is indeed used outside of Illinois. The bill is effective immediately and provides continuity for businesses that rely on this tax exemption for their interstate operations.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2389&GAID=18&DocTypeID=SB&SessionID=114&GA=104