SB1686 Summary

• Amends the Use Tax Act to add a new multistate exemption (subsection e-5) allowing return of out-of-state lessor or purchaser property to Illinois for storage, repair, or refurbishment without triggering use tax, provided the property is not used by a lessee or purchaser in Illinois.

• Defines "refurbishment" to include replacement of component parts and upgrades in addition to repair services.

• Makes identical amendments to the Service Use Tax Act by adding subsection (d-5) with the same property return exemption and refurbishment definition.

• Effective immediately upon becoming law.