HB3144 Summary

• Exempts food for human consumption (excluding alcohol, cannabis, soft drinks, candy, and prepared foods) from tax beginning January 1, 2026, and makes this exemption permanent under the Use Tax Act, Service Use Tax Act, Retailers' Occupation Tax Act, and Service Occupation Tax Act.

• Expands the aircraft maintenance exemption effective January 1, 2024 to include persons engaged in aircraft engine and power plant maintenance without requiring Federal Aviation Administration certification, while maintaining the exemption through December 31, 2029.

• Authorizes counties and municipalities to impose a 1% grocery occupation tax on sales of groceries (as defined by the food exemption above) beginning January 1, 2026, with a corresponding service occupation tax.

• Modifies prepaid telephone calling arrangement definitions effective January 1, 2025 to limit the definition to arrangements involving purchase of preloaded phones, calling cards, or tangible personal property.

• Eliminates the voter referendum requirement for non-home rule municipalities to impose local occupation taxes under existing authorization in Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5.