Bill
SB 3283
Adds a 1% tax on separately itemized disability-related vehicle modifications, effective July 1, 2026.
SB 3283 (Illinois, 104th General Assembly) – Summary
Overview
- Status: Introduced February 3, 2026; referred to Revenue. Rule 2-10 deadline set for May 15, 2026.
- Sponsor: Sen. Donald P. DeWitte (co-sponsor: Don DeWitte).
- Jurisdiction: Illinois.
- Purpose: Add a targeted 1% sales/use tax rate on modifications to motor vehicles that render a vehicle usable by a person with a disability. The tax would apply to tangible personal property installed in, on, or related to the vehicle, and would be collectible only if the property is separately itemized on the bill or invoice (or purchased separately and separately itemized). Effective date for the new disability modification tax: July 1, 2026. The bill also consolidates broad existing tax structure provisions across the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act, but the disability modification levy is a distinct 1% rate for qualifying property.
Key Provisions and Changes
- Disability Vehicle Modifications Tax:
- Imposes a 1% tax on tangible personal property installed in, on, or used to modify a motor vehicle to render it usable by a person with a disability.
- The 1% rate applies only if the property is separately itemized on the bill or invoice for the motor vehicle sale, or if the property is purchased separately from the vehicle and separately itemized.
- Effective date: July 1, 2026.
- Tax Base and Rates (general framework retained):
- The bill maintains the general tax rate structure for Use Tax, Service Use Tax, Service Occupation Tax, and Retailers' Occupation Tax at 6.25% (with long-standing historical adjustments for specific items in the base Acts).
- It includes detailed historical provisions for tobacco-like fuel blends, biodiesel, mid-range ethanol blends, soft drinks, food off-premises, and other product categories, ensuring compatibility with the added disability modification tax.
- Itemization and Deposition:
- The 1% disability modification tax is not applied unless the modification property is itemized separately on invoices, ensuring customers can distinguish the disability-related modification costs from other vehicle costs.
- Effective Date and Immediate Provisions:
- Beyond the disability modification provision, the bill also states that it is effective immediately in certain sections, while other sections reflect prospective changes (e.g., 1% on disability modifications starting July 1, 2026).
- Definitions and Clarifications:
- Clarifies terms related to “soft drinks,” “food for human consumption off premises,” and treatment of medicines and medical devices, consistent with prior Illinois tax law definitions.
- Includes standard depreciation considerations for out-of-state purchases and leasing scenarios, mirroring existing tax treatment in related acts.
Who Is Affected
- Vehicle buyers and owners seeking disability-related modifications to vehicles will face a new 1% tax on qualifying, separately itemized modification purchases.
- Retailers, vehicle dealers, and service providers that sell or install disability-related vehicle modifications will need to separately itemize charges to ensure the tax applies.
- Consumers purchasing other goods subject to Illinois sales/use taxes continue to be governed by the existing framework of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers’ Occupation Tax Act.
Timeline and Procedural Notes
- July 1, 2026: Effective date for the 1% disability vehicle modification tax, contingent on itemization requirements.
- The Act as introduced also references earlier 2000-2025 tax provisions for other goods and services, consistent with maintaining alignment to current Illinois tax code until the new disability-modification rate is phased in.
Summary
SB 3283 adds a focused 1% tax on disability-related vehicle modifications, requiring separate itemization on invoices to trigger the tax, with an effective date of July 1, 2026. It sits within a broader package of amendments to Illinois tax Acts, preserving existing tax structures while introducing the specific disability-modification levy.
Compiled from official sources — confirm details with the bill’s official record.
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