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IL SB3851

IL SB3851
USE/OCC TX-EXEMPT PRESCRIPTION


summary

Introduced
02/06/2026
In Committee
02/24/2026
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and products classified as Class III medical devices by the United States Food and Drug Administration that are used for cancer treatment pursuant to a prescription are exempt from the tax under the Acts. Amends the Illinois Income Tax Act. Increases the amount deposited into the Local Government Distributive Fund to: (i) 7.47% of the net revenue realized from the tax imposed upon individuals, trusts, estates, and pass-through entities; and (ii) 7.85% of the net revenue realized from the tax imposed upon corporations. Effective July 1, 2026.

AI Summary

This bill, effective July 1, 2026, amends several tax laws to provide an exemption for prescription medicines and products classified as Class III medical devices by the U.S. Food and Drug Administration (FDA) that are used for cancer treatment, ensuring these items are not subject to sales and use taxes. Additionally, it modifies the Illinois Income Tax Act to increase the percentage of net revenue deposited into the Local Government Distributive Fund, allocating 7.47% from individual income taxes and 7.85% from corporate income taxes to this fund.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Added as Chief Co-Sponsor Sen. Darby A. Hills (on 02/25/2026)

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