HB2755 is a broad revenue and tax administration bill that makes numerous changes across Illinois tax, fee, and regulatory statutes. A major component extends the state tax delinquency amnesty program to a new window in fall 2025, allowing eligible taxpayers to pay past-due state taxes and receive waiver of interest, penalties, and related civil or criminal enforcement for covered periods, while excluding taxpayers already involved in certain criminal or civil tax proceedings. The bill also updates collection, filing, and remittance rules in the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers’ Occupation Tax Act, including electronic filing requirements, vendor discount caps beginning in 2025, special treatment for aviation fuel, and new provisions for trailer leases and sustainable aviation fuel credits.
The bill further revises the Sports Wagering Act by creating a new tax structure beginning in 2024 and 2025, including higher graduated privilege tax rates on online and retail sports wagering receipts and a per-wager tax on internet/mobile wagers that is deposited to the General Revenue Fund. It also lowers civil penalty amounts in the Environmental Protection Act for a range of violations, while preserving inflation adjustments and self-disclosure mitigation rules. In addition, the bill expands and updates tobacco-related definitions and taxes, including adding nicotine pouches and other nicotine products to the tobacco products tax starting in 2025, increasing the tobacco products tax rate to 45%, reducing the annual retailer license fee, and revising youth-access and enforcement provisions for tobacco and vaping products.
HB2755 also creates a statewide 9-8-8 suicide prevention and mental health crisis system framework. It adds a new Department of Human Services section authorizing implementation of the 9-8-8 Lifeline and establishes the Statewide 9-8-8 Trust Fund, funded in part by a new statewide 9-8-8 surcharge embedded in the Telecommunications Excise Tax Act. The telecommunications tax rate is increased from 7% to 8.65% beginning July 1, 2025, with the additional 1.65% designated for 9-8-8 services. The bill also makes related administrative changes to telecommunications return and payment provisions.
Finally, the bill authorizes new local grocery occupation taxes for counties and municipalities beginning in 2026, each at a 1% rate on grocery sales, with Department of Revenue collection and trust-fund distribution rules. It also updates the Metro East Mass Transit District Act and the Regional Transportation Authority Act to conform to 2025 lease-tax changes and to adjust local tax administration, aviation-fuel treatment, and fund transfers. Overall, the measure is a large omnibus revenue package that combines tax increases, tax base expansions, administrative simplification, and new dedicated funding streams for public health, transit, and crisis services.
The bill amends a wide range of Illinois statutes, including the Tax Delinquency Amnesty Act, Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, Retailers’ Occupation Tax Act, Sports Wagering Act, Environmental Protection Act, Hotel Operators’ Occupation Tax Act, Tobacco Products Tax Act, youth tobacco/vaping laws, the Franchise Tax and License Fee Amnesty Act, county and municipal code provisions for grocery taxes, transit district tax statutes, the Department of Human Services Act, the State Finance Act, and the Telecommunications Excise Tax Act. Its practical effect is to raise or broaden several taxes and fees, create new dedicated funds and surcharges, and revise filing, remittance, and enforcement rules for affected taxpayers and agencies.
Affected parties include retailers, service providers, tobacco distributors and retailers, sports wagering licensees, telecommunications customers and providers, counties and municipalities that may adopt grocery taxes, and taxpayers eligible for the 2025 amnesty programs. The bill also shifts revenue among state funds, including the General Revenue Fund, Common School Fund, Road Fund, Tax Compliance and Administration Fund, Statewide 9-8-8 Trust Fund, and various transportation and local-government funds.
The voting history suggests the bill was ultimately enacted despite some opposition. It passed the House overwhelmingly on third reading (113-0), indicating strong support at that stage, but the Senate vote was narrower (31-24), showing meaningful division. The House concurrence vote was also closer (71-43), which is consistent with a large omnibus revenue bill that drew support from a majority but not broad bipartisan consensus. No committee transcript was provided, so the available record reflects support in the House and more mixed sentiment in the Senate.
The most likely points of contention are the bill’s tax increases and base expansions, especially the higher tobacco products tax rate, the new 9-8-8 telecommunications surcharge, the sports wagering tax changes, and the authorization of local grocery taxes. These provisions directly affect consumers, retailers, wagering operators, and telecom users, and they likely account for the closer Senate and concurrence votes. The bill also reduces certain environmental penalty amounts while increasing or creating revenue streams elsewhere, which may have drawn different reactions from environmental advocates, regulated industries, and fiscal supporters. Because no committee discussion transcript is available, the specific arguments are not documented here, but the vote pattern indicates the bill was more controversial in the Senate than in the House.