IL HB3266

Allows municipalities with populations under 1,000,000 to apply for tax exemption certificates from the Department of Revenue for in-State retailers or servicemen bidding on purchases exceeding $25,000, if at least one competing bid from an out-of-State provider exists.

In-State bidders must demonstrate that the tax exemption is necessary to submit the lowest responsible bid, provide substantive proof to the municipality or Department of Revenue, and furnish an itemized cost estimate to municipal authorities.

Creates new exemption categories in the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act for tangible personal property covered by exemption certificates issued under the new process.

Amends multiple local government codes (Counties Code, Illinois Municipal Code, Civic Center Code, Metropolitan Pier and Exposition Authority Act, Flood Prevention District Act, Metro-East Park and Recreation District Act, Local Mass Transit District Act, Regional Transportation Authority Act, and Water Commission Act of 1985) to recognize the exemption for local use and occupation taxes.

Becomes effective immediately upon passage.