ILCS » Chapter 35 · Act 105
Illinois Compiled Statutes

35 ILCS 105/3 (2026)

Tax imposed

✓ current as of May 2026
Find cases: SyfertCases citing this section IL-ILGAilga.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar
(35 ILCS 105/3) (from Ch. 120, par. 439.3)
    Sec. 3. Tax imposed. A tax is imposed upon the privilege of using in this State tangible personal property purchased, which, on and after January 1, 2025, includes leased, at retail from a retailer, including computer software, and including photographs, negatives, and positives that are the product of photoprocessing, but not including products of photoprocessing produced for use in motion pictures for commercial exhibition. Beginning January 1, 2001, prepaid telephone calling arrangements shall be considered tangible personal property subject to the tax imposed under this Act regardless of the form in which those arrangements may be embodied, transmitted, or fixed by any method now known or hereafter developed. Purchases of (1) electricity delivered to customers by wire; (2) natural or artificial gas that is delivered to customers through pipes, pipelines, or mains; and (3) water that is delivered to customers through pipes, pipelines, or mains are not subject to tax under this Act. The provisions of this amendatory Act of the 98th General Assembly are declaratory of existing law as to the meaning and scope of this Act.
    The imposition of the tax under this Act on the privilege of using tangible personal property leased at retail applies to leases of tangible personal property in effect, entered into, or renewed on or after January 1, 2025. In the case of leases, except as otherwise provided in this Act, the lessor, in collecting the tax, may collect for each tax return period, only the tax applicable to that part of the selling price actually received during such tax return period.
    The inclusion of leases in the tax imposed under this Act by this amendatory Act of the 103rd General Assembly does not, however, extend to motor vehicles, watercraft, aircraft, and semitrailers, as defined in Section 1-187 of the Illinois Vehicle Code, that are required to be registered with an agency of this State. The taxation of these items shall continue in effect as prior to the effective date of the changes made to this Section by this amendatory Act of the 103rd General Assembly (i.e. dealers owe retailers' occupation tax, lessors owe use tax, and lessees are not subject to retailers' occupation or use tax).
(Source: P.A. 103-592, eff. 1-1-25.)

    
Notes of Decisions
Cited in 92 cases (2 in the last 5 years), 1993–2024 · leading case: Kean v. Wal-Mart Stores, Inc., 919 N.E.2d 926 (Ill. 2009).
Sort: Relevance Newest Treatment
Kean v. Wal-Mart Stores, Inc., 919 N.E.2d 926 (Ill. 2009). · cites it 7× “Whereas ROTA imposes a tax “upon persons engaged in the business of selling at retail tangible personal property” (35 ILCS 120/2 (West 2006)), the Use Tax Act imposes a tax “upon the privilege of using in this State tangible personal property purchased at retail from a retailer”…”
Irwin Indus. Tool Co. v. Dep't of Revenue, 938 N.E.2d 459 (Ill. 2010). · cites it 6× “OPINION This appeal concerns the imposition of a use tax, pursuant to section 3 of the Use Tax Act (35 ILCS 105/3 (West 2008)), by the defendants, the Illinois Department of Revenue (Department), Brian Hamer, as the Director of Revenue, and Alexi Giannoulias, as the Illinois…”
Richard's Tire Co. v. Zehnder, 692 N.E.2d 360 (Ill. App. Ct. 1998). · cites it 8× “Defendants raise two issues on appeal: (1) whether plaintiff’s failure to name the Department as defendant deprived the trial court of jurisdiction, and (2) whether the manufacturing and assembling machinery and equipment exemption in section 3 — 5(18) of the Use Tax Act (35…”
Brown's Furniture, Inc. v. Wagner, 665 N.E.2d 795 (Ill. 1996). · cites it 5× “” 35 ILCS 105/3 (West 1994). The tax functions as a necessary corollary to the Retailers’ Occupation Tax Act (35 ILCS 120/1 et seq.”
THOMAS M. MADDEN & CO. v. Dep't of Rev., 651 N.E.2d 218 (Ill. App. Ct. 1995). · cites it 8× “The Department appeals, contending that the trial court erred in reversing the Department’s decision, as the slip form paver did not qualify for the manufacturing exemption of the Use Tax Act (the Act) (35 ILCS 105/ 3 — 5(18) (West 1992)). On or about August 8, 1988, plaintiff,…”
XL Disposal Corp., Inc. v. Zehnder, 709 N.E.2d 293 (Ill. App. Ct. 1999). · cites it 5× “XL Disposal asserted it was exempt from taxation under section 2a of the Act, pertaining to pollution-control facilities (35 ILCS 105/2a (West 1996)), and under section 3—55 of the Act, pertaining to rolling stock of an interstate carrier for hire (35 ILCS 105/3—55 (West 1996)).…”
Irwin Indus. Tool Co. v. Dep't of Revenue, 915 N.E.2d 789 (Ill. App. Ct. 2009). · cites it 12× “94 in accrued interest pursuant to section 3 of the Illinois Use Tax Act (UTA) (35 ILCS 105/3 (West 2006)), for a total of $813,319.”
Am. Airlines, Inc. v. Dep't of Revenue, 931 N.E.2d 666 (Ill. App. Ct. 2009). · cites it 7× “2d at 324-25 ; see also 35 ILCS 105/3 (West 2006) (“A [use] tax is imposed upon the privilege of using in this State tangible personal property purchased at retail from a retailer”).”
Quad Cities Open, Inc. v. City of Silvis, 804 N.E.2d 499 (Ill. 2004). · cites it 2× “IX, § 6 (“The General Assembly may exempt from taxation *** property used exclusively for agricultural and horticultural societies, and for school, religious, cemetery and charitable purposes”).”
Am. River Transp. Co. v. Bower, 813 N.E.2d 1090 (Ill. App. Ct. 2004). · cites it 3× “" 35 ILCS 105/3 (West 2000). If a retailer is located outside Illinois and therefore has no UTA or ROTA obligations, the purchaser-user in Illinois must pay the use tax directly to the State.”
Brown v. Zehnder, 693 N.E.2d 1255 (Ill. App. Ct. 1998). · cites it 5× “” 35 ILCS 105/3 (West 1994). If personal property is not taxable under ROTA, then it may not be taxed under UTA.”
Horsehead Corp. v. Dep't of Revenue, 2019 IL 124155 (Ill. 2019). · cites it 2× “35 ILCS 105/3 (West 2012). ¶5 On December 1, 2014, Horsehead filed a petition for hearing with the Illinois Independent Tax Tribunal.”
Show all 92 citing cases →
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.