IL HB5040

Municipalities with populations under 1,000,000 may apply to the Department of Revenue for tax exemption certificates on contracts exceeding $25,000 for materials, equipment, or supplies when an in-state retailer competes against out-of-state bidders

In-state retailers must demonstrate the exemption is necessary to submit the lowest responsible bid and provide itemized cost estimates to municipal authorities to qualify for the exemption

The exemption applies to local use and occupation taxes under multiple tax acts including the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act

Conforming amendments extend the exemption to taxes imposed under the Counties Code, Illinois Municipal Code, Metropolitan Pier and Exposition Authority Act, Regional Transportation Authority Act, and several other local government codes

The bill takes effect immediately upon becoming law