IL SB3476

Effective July 1, 2024, home-delivered meals provided to Medicare or Medicaid recipients are exempt from use tax and service occupation tax when payment is made by an intermediary (Medicare Administrative Contractor, Managed Care Organization, or Medicare Advantage Organization) pursuant to a government contract.

The exemption applies to meals delivered to eligible recipients under government healthcare programs, with the intermediary serving as the payor rather than the individual recipient.

This exemption is added to the Use Tax Act, Service Use Tax Act, and Retailers' Occupation Tax Act, ensuring consistent treatment across Illinois tax statutes.

The bill also makes technical corrections to existing statutory language, including updating terminology (e.g., "rental-purchase" and "Rental-Purchase Agreement") and correcting grammar and spelling throughout the tax codes.