HB3434 Summary

• Creates a new exemption allowing municipalities with populations under 1,000,000 to apply to the Department of Revenue for a certificate exempting in-state retailers or servicemen from local occupation and use taxes on bids exceeding $25,000, if an out-of-state competitor also bid on the contract and the in-state bidder demonstrates the exemption is necessary to submit the lowest responsible bid.

• Requires in-state retailers to provide substantive proof of necessity and an itemized cost estimate to the municipality to qualify for the exemption.

• Makes conforming changes to the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, Retailers' Occupation Tax Act, and adds exemption provisions to the 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.

• Takes effect immediately upon becoming law.