The bill amends the Use Tax Act of 1937 by establishing a specific tax rate of 6% on the use, storage, or consumption of tangible personal property and services, which now includes advertising services. It clarifies that the tax applies to individuals converting tax-exempt property to taxable use and mandates that the provider of advertising services collect the tax. The bill also outlines the conditions under which tangible personal property is presumed to be subject to the tax and details exemptions for certain transactions, such as those involving family members and gifts in estate administration.

Additionally, the bill modifies the collection and distribution of tax revenues, ensuring that funds are allocated appropriately, including specific provisions for the state school aid fund and local community stabilization share. It mandates that 65% of the tax collected on aviation fuel usage be deposited into the qualified airport fund, and starting from the fiscal year ending September 30, 2024, $75,000,000 from the state share of collected funds must be deposited into the local government reimbursement fund. The bill also introduces new definitions and clarifications regarding terms related to transportation and aviation funding while deleting some existing definitions, and it requires the state treasurer to provide an annual reconciliation report to qualified airport operators for transparency.

Statutes affected:
House Introduced Bill: 205.93, 205.111