101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0270

 

Introduced , by Rep. Mike Murphy - Linda Chapa LaVia

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/2-12
55 ILCS 5/5-1006  from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.7
65 ILCS 5/8-11-1  from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.3  from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.6
65 ILCS 5/8-11-6  from Ch. 24, par. 8-11-6
70 ILCS 750/25
70 ILCS 3610/5.01  from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.03  from Ch. 111 2/3, par. 704.03

    Amends the Retailers' Occupation Tax Act. Provides that if a purchaser makes payment over the phone, in writing, or via the Internet, and the property is delivered to a location in this State, then the sale shall be sourced to the location where the property is delivered. Provides that the sale shall be deemed to have occurred at the customer's address if the property is delivered and the delivery location is unknown. Amends the Counties Code, the Illinois Municipal Code, the Flood Prevention District Act, the Local Mass Transit District Act, and the Regional Transportation Authority Act. Provides that a unit of local government may require a retailer to collect and remit certain use and occupation taxes if the retailer qualifies as a "retailer maintaining a place of business in this State" under certain provisions of the Use Tax Act.


LRB101 05409 HLH 50423 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0270LRB101 05409 HLH 50423 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 3. The Retailers' Occupation Tax Act is amended by
5changing Section 2-12 as follows:
 
6    (35 ILCS 120/2-12)
7    Sec. 2-12. Location where retailer is deemed to be engaged
8in the business of selling. The purpose of this Section is to
9specify where a retailer is deemed to be engaged in the
10business of selling tangible personal property for the purposes
11of this Act, the Use Tax Act, the Service Use Tax Act, and the
12Service Occupation Tax Act, and for the purpose of collecting
13any other local retailers' occupation tax administered by the
14Department. This Section applies only with respect to the
15particular selling activities described in the following
16paragraphs. The provisions of this Section are not intended to,
17and shall not be interpreted to, affect where a retailer is
18deemed to be engaged in the business of selling with respect to
19any activity that is not specifically described in the
20following paragraphs.
21        (1) If a purchaser who is present at the retailer's
22    place of business, having no prior commitment to the
23    retailer, agrees to purchase and makes payment for tangible

 

 

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1    personal property at the retailer's place of business, then
2    the transaction shall be deemed an over-the-counter sale
3    occurring at the retailer's same place of business where
4    the purchaser was present and made payment for that
5    tangible personal property if the retailer regularly
6    stocks the purchased tangible personal property or similar
7    tangible personal property in the quantity, or similar
8    quantity, for sale at the retailer's same place of business
9    and then either (i) the purchaser takes possession of the
10    tangible personal property at the same place of business or
11    (ii) the retailer delivers or arranges for the tangible
12    personal property to be delivered to the purchaser.
13        (2) If a purchaser, having no prior commitment to the
14    retailer, agrees to purchase tangible personal property
15    and makes payment over the phone, in writing, or via the
16    Internet and takes possession of the tangible personal
17    property at the retailer's place of business, then the sale
18    shall be deemed to have occurred at the retailer's place of
19    business where the purchaser takes possession of the
20    property if the retailer regularly stocks the item or
21    similar items in the quantity, or similar quantities,
22    purchased by the purchaser.
23        (2.1) If a purchaser, having no prior commitment to the
24    retailer, agrees to purchase tangible personal property
25    and makes payment over the phone, in writing, or via the
26    Internet and the property is delivered to the purchaser or

 

 

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1    to a third party at a location in this State, then the sale
2    shall be deemed to have occurred at the location where the
3    property is delivered. If such a product is delivered, but
4    the delivery address is unknown, then the sale shall be
5    deemed to have occurred at the customer's address.
6        (3) A retailer is deemed to be engaged in the business
7    of selling food, beverages, or other tangible personal
8    property through a vending machine at the location where
9    the vending machine is located at the time the sale is made
10    if (i) the vending machine is a device operated by coin,
11    currency, credit card, token, coupon or similar device; (2)
12    the food, beverage or other tangible personal property is
13    contained within the vending machine and dispensed from the
14    vending machine; and (3) the purchaser takes possession of
15    the purchased food, beverage or other tangible personal
16    property immediately.
17        (4) Minerals. A producer of coal or other mineral mined
18    in Illinois is deemed to be engaged in the business of
19    selling at the place where the coal or other mineral mined
20    in Illinois is extracted from the earth. With respect to
21    minerals (i) the term "extracted from the earth" means the
22    location at which the coal or other mineral is extracted
23    from the mouth of the mine, and (ii) a "mineral" includes
24    not only coal, but also oil, sand, stone taken from a
25    quarry, gravel and any other thing commonly regarded as a
26    mineral and extracted from the earth. This paragraph does

 

 

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1    not apply to coal or another mineral when it is delivered
2    or shipped by the seller to the purchaser at a point
3    outside Illinois so that the sale is exempt under the
4    United States Constitution as a sale in interstate or
5    foreign commerce.
6        (5) A retailer selling tangible personal property to a
7    nominal lessee or bailee pursuant to a lease with a dollar
8    or other nominal option to purchase is engaged in the
9    business of selling at the location where the property is
10    first delivered to the lessee or bailee for its intended
11    use.
12(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
 
13    Section 5. The Counties Code is amended by changing
14Sections 5-1006, 5-1006.5, and 5-1006.7 as follows:
 
15    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
16    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
17Law. Any county that is a home rule unit may impose a tax upon
18all persons engaged in the business of selling tangible
19personal property, other than an item of tangible personal
20property titled or registered with an agency of this State's
21government, at retail in the county on the gross receipts from
22such sales made in the county in the course of their business.
23If imposed, this tax shall only be imposed in 1/4% increments.
24On and after September 1, 1991, this additional tax may not be

 

 

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1imposed on the sales of food for human consumption which is to
2be consumed off the premises where it is sold (other than
3alcoholic beverages, soft drinks and food which has been
4prepared for immediate consumption) and prescription and
5nonprescription medicines, drugs, medical appliances and
6insulin, urine testing materials, syringes and needles used by
7diabetics. The tax imposed by a home rule county pursuant to
8this Section and all civil penalties that may be assessed as an
9incident thereof shall be collected and enforced by the State
10Department of Revenue. Subject to the limitations set forth in
11this Code, the county may require a retailer to collect and
12remit a tax imposed under this Section if the retailer
13qualifies as a "retailer maintaining a place of business in
14this State" under Section 2 of the Use Tax Act. The certificate
15of registration that is issued by the Department to a retailer
16under the Retailers' Occupation Tax Act shall permit the
17retailer to engage in a business that is taxable under any
18ordinance or resolution enacted pursuant to this Section
19without registering separately with the Department under such
20ordinance or resolution or under this Section. The Department
21shall have full power to administer and enforce this Section;
22to collect all taxes and penalties due hereunder; to dispose of
23taxes and penalties so collected in the manner hereinafter
24provided; and to determine all rights to credit memoranda
25arising on account of the erroneous payment of tax or penalty
26hereunder. In the administration of, and compliance with, this

 

 

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1Section, the Department and persons who are subject to this
2Section shall have the same rights, remedies, privileges,
3immunities, powers and duties, and be subject to the same
4conditions, restrictions, limitations, penalties and
5definitions of terms, and employ the same modes of procedure,
6as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
71k, 1m, 1n, 2 through 2-65 (in respect to all provisions
8therein other than the State rate of tax), 4, 5, 5a, 5b, 5c,
95d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1010, 11, 12 and 13 of the Retailers' Occupation Tax Act and
11Section 3-7 of the Uniform Penalty and Interest Act, as fully
12as if those provisions were set forth herein.
13    No tax may be imposed by a home rule county pursuant to
14this Section unless the county also imposes a tax at the same
15rate pursuant to Section 5-1007.
16    Persons subject to any tax imposed pursuant to the
17authority granted in this Section may reimburse themselves for
18their seller's tax liability hereunder by separately stating
19such tax as an additional charge, which charge may be stated in
20combination, in a single amount, with State tax which sellers
21are required to collect under the Use Tax Act, pursuant to such
22bracket schedules as the Department may prescribe.
23    Whenever the Department determines that a refund should be
24made under this Section to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the order to be drawn for the

 

 

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1amount specified and to the person named in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the home rule county retailers' occupation tax
4fund.
5    The Department shall forthwith pay over to the State
6Treasurer, ex officio, as trustee, all taxes and penalties
7collected hereunder.
8    As soon as possible after the first day of each month,
9beginning January 1, 2011, upon certification of the Department
10of Revenue, the Comptroller shall order transferred, and the
11Treasurer shall transfer, to the STAR Bonds Revenue Fund the
12local sales tax increment, as defined in the Innovation
13Development and Economy Act, collected under this Section
14during the second preceding calendar month for sales within a
15STAR bond district.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named counties, the
20counties to be those from which retailers have paid taxes or
21penalties hereunder to the Department during the second
22preceding calendar month. The amount to be paid to each county
23shall be the amount (not including credit memoranda) collected
24hereunder during the second preceding calendar month by the
25Department plus an amount the Department determines is
26necessary to offset any amounts that were erroneously paid to a

 

 

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1different taxing body, and not including an amount equal to the
2amount of refunds made during the second preceding calendar
3month by the Department on behalf of such county, and not
4including any amount which the Department determines is
5necessary to offset any amounts which were payable to a
6different taxing body but were erroneously paid to the county,
7and not including any amounts that are transferred to the STAR
8Bonds Revenue Fund, less 1.5% of the remainder, which the
9Department shall transfer into the Tax Compliance and
10Administration Fund. The Department, at the time of each
11monthly disbursement to the counties, shall prepare and certify
12to the State Comptroller the amount to be transferred into the
13Tax Compliance and Administration Fund under this Section.
14Within 10 days after receipt, by the Comptroller, of the
15disbursement certification to the counties and the Tax
16Compliance and Administration Fund provided for in this Section
17to be given to the Comptroller by the Department, the
18Comptroller shall cause the orders to be drawn for the
19respective amounts in accordance with the directions contained
20in the certification.
21    In addition to the disbursement required by the preceding
22paragraph, an allocation shall be made in March of each year to
23each county that received more than $500,000 in disbursements
24under the preceding paragraph in the preceding calendar year.
25The allocation shall be in an amount equal to the average
26monthly distribution made to each such county under the

 

 

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1preceding paragraph during the preceding calendar year
2(excluding the 2 months of highest receipts). The distribution
3made in March of each year subsequent to the year in which an
4allocation was made pursuant to this paragraph and the
5preceding paragraph shall be reduced by the amount allocated
6and disbursed under this paragraph in the preceding calendar
7year. The Department shall prepare and certify to the
8Comptroller for disbursement the allocations made in
9accordance with this paragraph.
10    A sale is deemed to have occurred in a county if the
11retailer is engaged in the business of selling tangible
12personal property in that county with respect to that sale, as
13provided in Section 2-12 of the Retailers' Occupation Tax Act.
14For the purpose of determining the local governmental unit
15whose tax is applicable, a retail sale by a producer of coal or
16other mineral mined in Illinois is a sale at retail at the
17place where the coal or other mineral mined in Illinois is
18extracted from the earth. This paragraph does not apply to coal
19or other mineral when it is delivered or shipped by the seller
20to the purchaser at a point outside Illinois so that the sale
21is exempt under the United States Constitution as a sale in
22interstate or foreign commerce.
23    Nothing in this Section shall be construed to authorize a
24county to impose a tax upon the privilege of engaging in any
25business which under the Constitution of the United States may
26not be made the subject of taxation by this State.

 

 

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1    An ordinance or resolution imposing or discontinuing a tax
2hereunder or effecting a change in the rate thereof shall be
3adopted and a certified copy thereof filed with the Department
4on or before the first day of June, whereupon the Department
5shall proceed to administer and enforce this Section as of the
6first day of September next following such adoption and filing.
7Beginning January 1, 1992, an ordinance or resolution imposing
8or discontinuing the tax hereunder or effecting a change in the
9rate thereof shall be adopted and a certified copy thereof
10filed with the Department on or before the first day of July,
11whereupon the Department shall proceed to administer and
12enforce this Section as of the first day of October next
13following such adoption and filing. Beginning January 1, 1993,
14an ordinance or resolution imposing or discontinuing the tax
15hereunder or effecting a change in the rate thereof shall be
16adopted and a certified copy thereof filed with the Department
17on or before the first day of October, whereupon the Department
18shall proceed to administer and enforce this Section as of the
19first day of January next following such adoption and filing.
20Beginning April 1, 1998, an ordinance or resolution imposing or
21discontinuing the tax hereunder or effecting a change in the
22rate thereof shall either (i) be adopted and a certified copy
23thereof filed with the Department on or before the first day of
24April, whereupon the Department shall proceed to administer and
25enforce this Section as of the first day of July next following
26the adoption and filing; or (ii) be adopted and a certified

 

 

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1copy thereof filed with the Department on or before the first
2day of October, whereupon the Department shall proceed to
3administer and enforce this Section as of the first day of
4January next following the adoption and filing.
5    When certifying the amount of a monthly disbursement to a
6county under this Section, the Department shall increase or
7decrease such amount by an amount necessary to offset any
8misallocation of previous disbursements. The offset amount
9shall be the amount erroneously disbursed within the previous 6
10months from the time a misallocation is discovered.
11    This Section shall be known and may be cited as the Home
12Rule County Retailers' Occupation Tax Law.
13(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
14100-587, eff. 6-4-18.)
 
15    (55 ILCS 5/5-1006.5)
16    Sec. 5-1006.5. Special County Retailers' Occupation Tax
17For Public Safety, Public Facilities, or Transportation.
18    (a) The county board of any county may impose a tax upon
19all persons engaged in the business of selling tangible
20personal property, other than personal property titled or
21registered with an agency of this State's government, at retail
22in the county on the gross receipts from the sales made in the
23county in the course of business to provide revenue to be used
24exclusively for public safety, public facility, or
25transportation purposes in that county, if a proposition for

 

 

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1the tax has been submitted to the electors of that county and
2approved by a majority of those voting on the question. If
3imposed, this tax shall be imposed only in one-quarter percent
4increments. By resolution, the county board may order the
5proposition to be submitted at any election. If the tax is
6imposed for transportation purposes for expenditures for
7public highways or as authorized under the Illinois Highway
8Code, the county board must publish notice of the existence of
9its long-range highway transportation plan as required or
10described in Section 5-301 of the Illinois Highway Code and
11must make the plan publicly available prior to approval of the
12ordinance or resolution imposing the tax. If the tax is imposed
13for transportation purposes for expenditures for passenger
14rail transportation, the county board must publish notice of
15the existence of its long-range passenger rail transportation
16plan and must make the plan publicly available prior to
17approval of the ordinance or resolution imposing the tax.
18    If a tax is imposed for public facilities purposes, then
19the name of the project may be included in the proposition at
20the discretion of the county board as determined in the
21enabling resolution. For example, the "XXX Nursing Home" or the
22"YYY Museum".
23    The county clerk shall certify the question to the proper
24election authority, who shall submit the proposition at an
25election in accordance with the general election law.
26        (1) The proposition for public safety purposes shall be

 

 

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1    in substantially the following form:
2        "To pay for public safety purposes, shall (name of
3    county) be authorized to impose an increase on its share of
4    local sales taxes by (insert rate)?"
5        As additional information on the ballot below the
6    question shall appear the following:
7        "This would mean that a consumer would pay an
8    additional (insert amount) in sales tax for every $100 of
9    tangible personal property bought at retail."
10        The county board may also opt to establish a sunset
11    provision at which time the additional sales tax would
12    cease being collected, if not terminated earlier by a vote
13    of the county board. If the county board votes to include a
14    sunset provision, the proposition for public safety
15    purposes shall be in substantially the following form:
16        "To pay for public safety purposes, shall (name of
17    county) be authorized to impose an increase on its share of
18    local sales taxes by (insert rate) for a period not to
19    exceed (insert number of years)?"
20        As additional information on the ballot below the
21    question shall appear the following:
22        "This would mean that a consumer would pay an
23    additional (insert amount) in sales tax for every $100 of
24    tangible personal property bought at retail. If imposed,
25    the additional tax would cease being collected at the end
26    of (insert number of years), if not terminated earlier by a

 

 

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1    vote of the county board."
2        For the purposes of the paragraph, "public safety
3    purposes" means crime prevention, detention, fire
4    fighting, police, medical, ambulance, or other emergency
5    services.
6        Votes shall be recorded as "Yes" or "No".
7        Beginning on the January 1 or July 1, whichever is
8    first, that occurs not less than 30 days after May 31, 2015
9    (the effective date of Public Act 99-4), Adams County may
10    impose a public safety retailers' occupation tax and
11    service occupation tax at the rate of 0.25%, as provided in
12    the referendum approved by the voters on April 7, 2015,
13    notwithstanding the omission of the additional information
14    that is otherwise required to be printed on the ballot
15    below the question pursuant to this item (1).
16        (2) The proposition for transportation purposes shall
17    be in substantially the following form:
18        "To pay for improvements to roads and other
19    transportation purposes, shall (name of county) be
20    authorized to impose an increase on its share of local
21    sales taxes by (insert rate)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail."

 

 

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1        The county board may also opt to establish a sunset
2    provision at which time the additional sales tax would
3    cease being collected, if not terminated earlier by a vote
4    of the county board. If the county board votes to include a
5    sunset provision, the proposition for transportation
6    purposes shall be in substantially the following form:
7        "To pay for road improvements and other transportation
8    purposes, shall (name of county) be authorized to impose an
9    increase on its share of local sales taxes by (insert rate)
10    for a period not to exceed (insert number of years)?"
11        As additional information on the ballot below the
12    question shall appear the following:
13        "This would mean that a consumer would pay an
14    additional (insert amount) in sales tax for every $100 of
15    tangible personal property bought at retail. If imposed,
16    the additional tax would cease being collected at the end
17    of (insert number of years), if not terminated earlier by a
18    vote of the county board."
19        For the purposes of this paragraph, transportation
20    purposes means construction, maintenance, operation, and
21    improvement of public highways, any other purpose for which
22    a county may expend funds under the Illinois Highway Code,
23    and passenger rail transportation.
24        The votes shall be recorded as "Yes" or "No".
25        (3) The proposition for public facilities purposes
26    shall be in substantially the following form:

 

 

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1        "To pay for public facilities purposes, shall (name of
2    county) be authorized to impose an increase on its share of
3    local sales taxes by (insert rate)?"
4        As additional information on the ballot below the
5    question shall appear the following:
6        "This would mean that a consumer would pay an
7    additional (insert amount) in sales tax for every $100 of
8    tangible personal property bought at retail."
9        The county board may also opt to establish a sunset
10    provision at which time the additional sales tax would
11    cease being collected, if not terminated earlier by a vote
12    of the county board. If the county board votes to include a
13    sunset provision, the proposition for public facilities
14    purposes shall be in substantially the following form:
15        "To pay for public facilities purposes, shall (name of
16    county) be authorized to impose an increase on its share of
17    local sales taxes by (insert rate) for a period not to
18    exceed (insert number of years)?"
19        As additional information on the ballot below the
20    question shall appear the following:
21        "This would mean that a consumer would pay an
22    additional (insert amount) in sales tax for every $100 of
23    tangible personal property bought at retail. If imposed,
24    the additional tax would cease being collected at the end
25    of (insert number of years), if not terminated earlier by a
26    vote of the county board."

 

 

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1        For purposes of this Section, "public facilities
2    purposes" means the acquisition, development,
3    construction, reconstruction, rehabilitation, improvement,
4    financing, architectural planning, and installation of
5    capital facilities consisting of buildings, structures,
6    and durable equipment and for the acquisition and
7    improvement of real property and interest in real property
8    required, or expected to be required, in connection with
9    the public facilities, for use by the county for the
10    furnishing of governmental services to its citizens,
11    including but not limited to museums and nursing homes.
12        The votes shall be recorded as "Yes" or "No".
13    If a majority of the electors voting on the proposition
14vote in favor of it, the county may impose the tax. A county
15may not submit more than one proposition authorized by this
16Section to the electors at any one time.
17    Subject to the limitations set forth in this Code, the
18county may require a retailer to collect and remit a tax
19imposed under this Section if the retailer qualifies as a
20"retailer maintaining a place of business in this State" under
21Section 2 of the Use Tax Act. This additional tax may not be
22imposed on the sales of food for human consumption that is to
23be consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food which has been
25prepared for immediate consumption) and prescription and
26non-prescription medicines, drugs, medical appliances and

 

 

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1insulin, urine testing materials, syringes, and needles used by
2diabetics. The tax imposed by a county under this Section and
3all civil penalties that may be assessed as an incident of the
4tax shall be collected and enforced by the Illinois Department
5of Revenue and deposited into a special fund created for that
6purpose. The certificate of registration that is issued by the
7Department to a retailer under the Retailers' Occupation Tax
8Act shall permit the retailer to engage in a business that is
9taxable without registering separately with the Department
10under an ordinance or resolution under this Section. The
11Department has full power to administer and enforce this
12Section, to collect all taxes and penalties due under this
13Section, to dispose of taxes and penalties so collected in the
14manner provided in this Section, and to determine all rights to
15credit memoranda arising on account of the erroneous payment of
16a tax or penalty under this Section. In the administration of
17and compliance with this Section, the Department and persons
18who are subject to this Section shall (i) have the same rights,
19remedies, privileges, immunities, powers, and duties, (ii) be
20subject to the same conditions, restrictions, limitations,
21penalties, and definitions of terms, and (iii) employ the same
22modes of procedure as are prescribed in Sections 1, 1a, 1a-1,
231d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to
24all provisions contained in those Sections other than the State
25rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
26transaction returns and quarter monthly payments), 4, 5, 5a,

 

 

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15b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
27, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
3Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
4as if those provisions were set forth in this Section.
5    Persons subject to any tax imposed under the authority
6granted in this Section may reimburse themselves for their
7sellers' tax liability by separately stating the tax as an
8additional charge, which charge may be stated in combination,
9in a single amount, with State tax which sellers are required
10to collect under the Use Tax Act, pursuant to such bracketed
11schedules as the Department may prescribe.
12    Whenever the Department determines that a refund should be
13made under this Section to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the order to be drawn for the
16amount specified and to the person named in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the County Public Safety or Transportation
19Retailers' Occupation Tax Fund.
20    (b) If a tax has been imposed under subsection (a), a
21service occupation tax shall also be imposed at the same rate
22upon all persons engaged, in the county, in the business of
23making sales of service, who, as an incident to making those
24sales of service, transfer tangible personal property within
25the county as an incident to a sale of service. This tax may
26not be imposed on sales of food for human consumption that is

 

 

HB0270- 20 -LRB101 05409 HLH 50423 b

1to be consumed off the premises where it is sold (other than
2alcoholic beverages, soft drinks, and food prepared for
3immediate consumption) and prescription and non-prescription
4medicines, drugs, medical appliances and insulin, urine
5testing materials, syringes, and needles used by diabetics. The
6tax imposed under this subsection and all civil penalties that
7may be assessed as an incident thereof shall be collected and
8enforced by the Department of Revenue. The Department has full
9power to administer and enforce this subsection; to collect all
10taxes and penalties due hereunder; to dispose of taxes and
11penalties so collected in the manner hereinafter provided; and
12to determine all rights to credit memoranda arising on account
13of the erroneous payment of tax or penalty hereunder. In the
14administration of, and compliance with this subsection, the
15Department and persons who are subject to this paragraph shall
16(i) have the same rights, remedies, privileges, immunities,
17powers, and duties, (ii) be subject to the same conditions,
18restrictions, limitations, penalties, exclusions, exemptions,
19and definitions of terms, and (iii) employ the same modes of
20procedure as are prescribed in Sections 2 (except that the
21reference to State in the definition of supplier maintaining a
22place of business in this State shall mean the county), 2a, 2b,
232c, 3 through 3-50 (in respect to all provisions therein other
24than the State rate of tax), 4 (except that the reference to
25the State shall be to the county), 5, 7, 8 (except that the
26jurisdiction to which the tax shall be a debt to the extent

 

 

HB0270- 21 -LRB101 05409 HLH 50423 b

1indicated in that Section 8 shall be the county), 9 (except as
2to the disposition of taxes and penalties collected), 10, 11,
312 (except the reference therein to Section 2b of the
4Retailers' Occupation Tax Act), 13 (except that any reference
5to the State shall mean the county), Section 15, 16, 17, 18, 19
6and 20 of the Service Occupation Tax Act and Section 3-7 of the
7Uniform Penalty and Interest Act, as fully as if those
8provisions were set forth herein.
9    Persons subject to any tax imposed under the authority
10granted in this subsection may reimburse themselves for their
11serviceman's tax liability by separately stating the tax as an
12additional charge, which charge may be stated in combination,
13in a single amount, with State tax that servicemen are
14authorized to collect under the Service Use Tax Act, in
15accordance with such bracket schedules as the Department may
16prescribe.
17    Whenever the Department determines that a refund should be
18made under this subsection to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the warrant to be drawn for the
21amount specified, and to the person named, in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the County Public Safety or Transportation
24Retailers' Occupation Fund.
25    Nothing in this subsection shall be construed to authorize
26the county to impose a tax upon the privilege of engaging in

 

 

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1any business which under the Constitution of the United States
2may not be made the subject of taxation by the State.
3    (c) The Department shall immediately pay over to the State
4Treasurer, ex officio, as trustee, all taxes and penalties
5collected under this Section to be deposited into the County
6Public Safety or Transportation Retailers' Occupation Tax
7Fund, which shall be an unappropriated trust fund held outside
8of the State treasury.
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the Department
11of Revenue, the Comptroller shall order transferred, and the
12Treasurer shall transfer, to the STAR Bonds Revenue Fund the
13local sales tax increment, as defined in the Innovation
14Development and Economy Act, collected under this Section
15during the second preceding calendar month for sales within a
16STAR bond district.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to the counties from which
21retailers have paid taxes or penalties to the Department during
22the second preceding calendar month. The amount to be paid to
23each county, and deposited by the county into its special fund
24created for the purposes of this Section, shall be the amount
25(not including credit memoranda) collected under this Section
26during the second preceding calendar month by the Department

 

 

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1plus an amount the Department determines is necessary to offset
2any amounts that were erroneously paid to a different taxing
3body, and not including (i) an amount equal to the amount of
4refunds made during the second preceding calendar month by the
5Department on behalf of the county, (ii) any amount that the
6Department determines is necessary to offset any amounts that
7were payable to a different taxing body but were erroneously
8paid to the county, (iii) any amounts that are transferred to
9the STAR Bonds Revenue Fund, and (iv) 1.5% of the remainder,
10which shall be transferred into the Tax Compliance and
11Administration Fund. The Department, at the time of each
12monthly disbursement to the counties, shall prepare and certify
13to the State Comptroller the amount to be transferred into the
14Tax Compliance and Administration Fund under this subsection.
15Within 10 days after receipt by the Comptroller of the
16disbursement certification to the counties and the Tax
17Compliance and Administration Fund provided for in this Section
18to be given to the Comptroller by the Department, the
19Comptroller shall cause the orders to be drawn for the
20respective amounts in accordance with directions contained in
21the certification.
22    In addition to the disbursement required by the preceding
23paragraph, an allocation shall be made in March of each year to
24each county that received more than $500,000 in disbursements
25under the preceding paragraph in the preceding calendar year.
26The allocation shall be in an amount equal to the average

 

 

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1monthly distribution made to each such county under the
2preceding paragraph during the preceding calendar year
3(excluding the 2 months of highest receipts). The distribution
4made in March of each year subsequent to the year in which an
5allocation was made pursuant to this paragraph and the
6preceding paragraph shall be reduced by the amount allocated
7and disbursed under this paragraph in the preceding calendar
8year. The Department shall prepare and certify to the
9Comptroller for disbursement the allocations made in
10accordance with this paragraph.
11    A county may direct, by ordinance, that all or a portion of
12the taxes and penalties collected under the Special County
13Retailers' Occupation Tax For Public Safety or Transportation
14be deposited into the Transportation Development Partnership
15Trust Fund.
16    (d) A sale is deemed to have occurred in a county if the
17retailer is engaged in the business of selling tangible
18personal property in that county with respect to that sale, as
19provided in Section 2-12 of the Retailers' Occupation Tax Act.
20For the purpose of determining the local governmental unit
21whose tax is applicable, a retail sale by a producer of coal or
22another mineral mined in Illinois is a sale at retail at the
23place where the coal or other mineral mined in Illinois is
24extracted from the earth. This paragraph does not apply to coal
25or another mineral when it is delivered or shipped by the
26seller to the purchaser at a point outside Illinois so that the

 

 

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1sale is exempt under the United States Constitution as a sale
2in interstate or foreign commerce.
3    (e) Nothing in this Section shall be construed to authorize
4a county to impose a tax upon the privilege of engaging in any
5business that under the Constitution of the United States may
6not be made the subject of taxation by this State.
7    (e-5) If a county imposes a tax under this Section, the
8county board may, by ordinance, discontinue or lower the rate
9of the tax. If the county board lowers the tax rate or
10discontinues the tax, a referendum must be held in accordance
11with subsection (a) of this Section in order to increase the
12rate of the tax or to reimpose the discontinued tax.
13    (f) Beginning April 1, 1998 and through December 31, 2013,
14the results of any election authorizing a proposition to impose
15a tax under this Section or effecting a change in the rate of
16tax, or any ordinance lowering the rate or discontinuing the
17tax, shall be certified by the county clerk and filed with the
18Illinois Department of Revenue either (i) on or before the
19first day of April, whereupon the Department shall proceed to
20administer and enforce the tax as of the first day of July next
21following the filing; or (ii) on or before the first day of
22October, whereupon the Department shall proceed to administer
23and enforce the tax as of the first day of January next
24following the filing.
25    Beginning January 1, 2014, the results of any election
26authorizing a proposition to impose a tax under this Section or

 

 

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1effecting an increase in the rate of tax, along with the
2ordinance adopted to impose the tax or increase the rate of the
3tax, or any ordinance adopted to lower the rate or discontinue
4the tax, shall be certified by the county clerk and filed with
5the Illinois Department of Revenue either (i) on or before the
6first day of May, whereupon the Department shall proceed to
7administer and enforce the tax as of the first day of July next
8following the adoption and filing; or (ii) on or before the
9first day of October, whereupon the Department shall proceed to
10administer and enforce the tax as of the first day of January
11next following the adoption and filing.
12    (g) When certifying the amount of a monthly disbursement to
13a county under this Section, the Department shall increase or
14decrease the amounts by an amount necessary to offset any
15miscalculation of previous disbursements. The offset amount
16shall be the amount erroneously disbursed within the previous 6
17months from the time a miscalculation is discovered.
18    (h) This Section may be cited as the "Special County
19Occupation Tax For Public Safety, Public Facilities, or
20Transportation Law".
21    (i) For purposes of this Section, "public safety" includes,
22but is not limited to, crime prevention, detention, fire
23fighting, police, medical, ambulance, or other emergency
24services. The county may share tax proceeds received under this
25Section for public safety purposes, including proceeds
26received before August 4, 2009 (the effective date of Public

 

 

HB0270- 27 -LRB101 05409 HLH 50423 b

1Act 96-124), with any fire protection district located in the
2county. For the purposes of this Section, "transportation"
3includes, but is not limited to, the construction, maintenance,
4operation, and improvement of public highways, any other
5purpose for which a county may expend funds under the Illinois
6Highway Code, and passenger rail transportation. For the
7purposes of this Section, "public facilities purposes"
8includes, but is not limited to, the acquisition, development,
9construction, reconstruction, rehabilitation, improvement,
10financing, architectural planning, and installation of capital
11facilities consisting of buildings, structures, and durable
12equipment and for the acquisition and improvement of real
13property and interest in real property required, or expected to
14be required, in connection with the public facilities, for use
15by the county for the furnishing of governmental services to
16its citizens, including but not limited to museums and nursing
17homes.
18    (j) The Department may promulgate rules to implement Public
19Act 95-1002 only to the extent necessary to apply the existing
20rules for the Special County Retailers' Occupation Tax for
21Public Safety to this new purpose for public facilities.
22(Source: P.A. 99-4, eff. 5-31-15; 99-217, eff. 7-31-15; 99-642,
23eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
24    (55 ILCS 5/5-1006.7)
25    Sec. 5-1006.7. School facility occupation taxes.

 

 

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1    (a) In any county, a tax shall be imposed upon all persons
2engaged in the business of selling tangible personal property,
3other than personal property titled or registered with an
4agency of this State's government, at retail in the county on
5the gross receipts from the sales made in the county in the
6course of business to provide revenue to be used exclusively
7for school facility purposes if a proposition for the tax has
8been submitted to the electors of that county and approved by a
9majority of those voting on the question as provided in
10subsection (c). The tax under this Section shall be imposed
11only in one-quarter percent increments and may not exceed 1%.
12    Subject to the limitations set forth in this Code, the
13county may require a retailer to collect and remit a tax
14imposed under this Section if the retailer qualifies as a
15"retailer maintaining a place of business in this State" under
16Section 2 of the Use Tax Act. This additional tax may not be
17imposed on the sale of food for human consumption that is to be
18consumed off the premises where it is sold (other than
19alcoholic beverages, soft drinks, and food that has been
20prepared for immediate consumption) and prescription and
21non-prescription medicines, drugs, medical appliances and
22insulin, urine testing materials, syringes and needles used by
23diabetics. The Department of Revenue has full power to
24administer and enforce this subsection, to collect all taxes
25and penalties due under this subsection, to dispose of taxes
26and penalties so collected in the manner provided in this

 

 

HB0270- 29 -LRB101 05409 HLH 50423 b

1subsection, and to determine all rights to credit memoranda
2arising on account of the erroneous payment of a tax or penalty
3under this subsection. The Department shall deposit all taxes
4and penalties collected under this subsection into a special
5fund created for that purpose.
6    In the administration of and compliance with this
7subsection, the Department and persons who are subject to this
8subsection (i) have the same rights, remedies, privileges,
9immunities, powers, and duties, (ii) are subject to the same
10conditions, restrictions, limitations, penalties, and
11definitions of terms, and (iii) shall employ the same modes of
12procedure as are set forth in Sections 1 through 1o, 2 through
132-70 (in respect to all provisions contained in those Sections
14other than the State rate of tax), 2a through 2h, 3 (except as
15to the disposition of taxes and penalties collected), 4, 5, 5a,
165b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
177, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
18Tax Act and all provisions of the Uniform Penalty and Interest
19Act as if those provisions were set forth in this subsection.
20    The certificate of registration that is issued by the
21Department to a retailer under the Retailers' Occupation Tax
22Act permits the retailer to engage in a business that is
23taxable without registering separately with the Department
24under an ordinance or resolution under this subsection.
25    Persons subject to any tax imposed under the authority
26granted in this subsection may reimburse themselves for their

 

 

HB0270- 30 -LRB101 05409 HLH 50423 b

1seller's tax liability by separately stating that tax as an
2additional charge, which may be stated in combination, in a
3single amount, with State tax that sellers are required to
4collect under the Use Tax Act, pursuant to any bracketed
5schedules set forth by the Department.
6    (b) If a tax has been imposed under subsection (a), then a
7service occupation tax must also be imposed at the same rate
8upon all persons engaged, in the county, in the business of
9making sales of service, who, as an incident to making those
10sales of service, transfer tangible personal property within
11the county as an incident to a sale of service.
12    This tax may not be imposed on sales of food for human
13consumption that is to be consumed off the premises where it is
14sold (other than alcoholic beverages, soft drinks, and food
15prepared for immediate consumption) and prescription and
16non-prescription medicines, drugs, medical appliances and
17insulin, urine testing materials, syringes, and needles used by
18diabetics.
19    The tax imposed under this subsection and all civil
20penalties that may be assessed as an incident thereof shall be
21collected and enforced by the Department and deposited into a
22special fund created for that purpose. The Department has full
23power to administer and enforce this subsection, to collect all
24taxes and penalties due under this subsection, to dispose of
25taxes and penalties so collected in the manner provided in this
26subsection, and to determine all rights to credit memoranda

 

 

HB0270- 31 -LRB101 05409 HLH 50423 b

1arising on account of the erroneous payment of a tax or penalty
2under this subsection.
3    In the administration of and compliance with this
4subsection, the Department and persons who are subject to this
5subsection shall (i) have the same rights, remedies,
6privileges, immunities, powers and duties, (ii) be subject to
7the same conditions, restrictions, limitations, penalties and
8definition of terms, and (iii) employ the same modes of
9procedure as are set forth in Sections 2 (except that that
10reference to State in the definition of supplier maintaining a
11place of business in this State means the county), 2a through
122d, 3 through 3-50 (in respect to all provisions contained in
13those Sections other than the State rate of tax), 4 (except
14that the reference to the State shall be to the county), 5, 7,
158 (except that the jurisdiction to which the tax is a debt to
16the extent indicated in that Section 8 is the county), 9
17(except as to the disposition of taxes and penalties
18collected), 10, 11, 12 (except the reference therein to Section
192b of the Retailers' Occupation Tax Act), 13 (except that any
20reference to the State means the county), Section 15, 16, 17,
2118, 19, and 20 of the Service Occupation Tax Act and all
22provisions of the Uniform Penalty and Interest Act, as fully as
23if those provisions were set forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this subsection may reimburse themselves for their
26serviceman's tax liability by separately stating the tax as an

 

 

HB0270- 32 -LRB101 05409 HLH 50423 b

1additional charge, which may be stated in combination, in a
2single amount, with State tax that servicemen are authorized to
3collect under the Service Use Tax Act, pursuant to any
4bracketed schedules set forth by the Department.
5    (c) The tax under this Section may not be imposed until the
6question of imposing the tax has been submitted to the electors
7of the county at a regular election and approved by a majority
8of the electors voting on the question. For all regular
9elections held prior to August 23, 2011 (the effective date of
10Public Act 97-542), upon a resolution by the county board or a
11resolution by school district boards that represent at least
1251% of the student enrollment within the county, the county
13board must certify the question to the proper election
14authority in accordance with the Election Code.
15    For all regular elections held prior to August 23, 2011
16(the effective date of Public Act 97-542), the election
17authority must submit the question in substantially the
18following form:
19        Shall (name of county) be authorized to impose a
20    retailers' occupation tax and a service occupation tax
21    (commonly referred to as a "sales tax") at a rate of
22    (insert rate) to be used exclusively for school facility
23    purposes?
24The election authority must record the votes as "Yes" or "No".
25    If a majority of the electors voting on the question vote
26in the affirmative, then the county may, thereafter, impose the

 

 

HB0270- 33 -LRB101 05409 HLH 50423 b

1tax.
2    For all regular elections held on or after August 23, 2011
3(the effective date of Public Act 97-542), the regional
4superintendent of schools for the county must, upon receipt of
5a resolution or resolutions of school district boards that
6represent more than 50% of the student enrollment within the
7county, certify the question to the proper election authority
8for submission to the electors of the county at the next
9regular election at which the question lawfully may be
10submitted to the electors, all in accordance with the Election
11Code.
12    For all regular elections held on or after August 23, 2011
13(the effective date of Public Act 97-542), the election
14authority must submit the question in substantially the
15following form:
16        Shall a retailers' occupation tax and a service
17    occupation tax (commonly referred to as a "sales tax") be
18    imposed in (name of county) at a rate of (insert rate) to
19    be used exclusively for school facility purposes?
20The election authority must record the votes as "Yes" or "No".
21    If a majority of the electors voting on the question vote
22in the affirmative, then the tax shall be imposed at the rate
23set forth in the question.
24    For the purposes of this subsection (c), "enrollment" means
25the head count of the students residing in the county on the
26last school day of September of each year, which must be

 

 

HB0270- 34 -LRB101 05409 HLH 50423 b

1reported on the Illinois State Board of Education Public School
2Fall Enrollment/Housing Report.
3    (d) The Department shall immediately pay over to the State
4Treasurer, ex officio, as trustee, all taxes and penalties
5collected under this Section to be deposited into the School
6Facility Occupation Tax Fund, which shall be an unappropriated
7trust fund held outside the State treasury.
8    On or before the 25th day of each calendar month, the
9Department shall prepare and certify to the Comptroller the
10disbursement of stated sums of money to the regional
11superintendents of schools in counties from which retailers or
12servicemen have paid taxes or penalties to the Department
13during the second preceding calendar month. The amount to be
14paid to each regional superintendent of schools and disbursed
15to him or her in accordance with Section 3-14.31 of the School
16Code, is equal to the amount (not including credit memoranda)
17collected from the county under this Section during the second
18preceding calendar month by the Department, (i) less 2% of that
19amount, which shall be deposited into the Tax Compliance and
20Administration Fund and shall be used by the Department,
21subject to appropriation, to cover the costs of the Department
22in administering and enforcing the provisions of this Section,
23on behalf of the county, (ii) plus an amount that the
24Department determines is necessary to offset any amounts that
25were erroneously paid to a different taxing body; (iii) less an
26amount equal to the amount of refunds made during the second

 

 

HB0270- 35 -LRB101 05409 HLH 50423 b

1preceding calendar month by the Department on behalf of the
2county; and (iv) less any amount that the Department determines
3is necessary to offset any amounts that were payable to a
4different taxing body but were erroneously paid to the county.
5When certifying the amount of a monthly disbursement to a
6regional superintendent of schools under this Section, the
7Department shall increase or decrease the amounts by an amount
8necessary to offset any miscalculation of previous
9disbursements within the previous 6 months from the time a
10miscalculation is discovered.
11    Within 10 days after receipt by the Comptroller from the
12Department of the disbursement certification to the regional
13superintendents of the schools provided for in this Section,
14the Comptroller shall cause the orders to be drawn for the
15respective amounts in accordance with directions contained in
16the certification.
17    If the Department determines that a refund should be made
18under this Section to a claimant instead of issuing a credit
19memorandum, then the Department shall notify the Comptroller,
20who shall cause the order to be drawn for the amount specified
21and to the person named in the notification from the
22Department. The refund shall be paid by the Treasurer out of
23the School Facility Occupation Tax Fund.
24    (e) A sale is deemed to have occurred in a county if the
25retailer is engaged in the business of selling tangible
26personal property in that county with respect to that sale, as

 

 

HB0270- 36 -LRB101 05409 HLH 50423 b

1provided in Section 2-12 of the Retailers' Occupation Tax Act.
2For the purposes of determining the local governmental unit
3whose tax is applicable, a retail sale by a producer of coal or
4another mineral mined in Illinois is a sale at retail at the
5place where the coal or other mineral mined in Illinois is
6extracted from the earth. This subsection does not apply to
7coal or another mineral when it is delivered or shipped by the
8seller to the purchaser at a point outside Illinois so that the
9sale is exempt under the United States Constitution as a sale
10in interstate or foreign commerce.
11    (f) Nothing in this Section may be construed to authorize a
12tax to be imposed upon the privilege of engaging in any
13business that under the Constitution of the United States may
14not be made the subject of taxation by this State.
15    (g) If a county board imposes a tax under this Section
16pursuant to a referendum held before August 23, 2011 (the
17effective date of Public Act 97-542) at a rate below the rate
18set forth in the question approved by a majority of electors of
19that county voting on the question as provided in subsection
20(c), then the county board may, by ordinance, increase the rate
21of the tax up to the rate set forth in the question approved by
22a majority of electors of that county voting on the question as
23provided in subsection (c). If a county board imposes a tax
24under this Section pursuant to a referendum held before August
2523, 2011 (the effective date of Public Act 97-542), then the
26board may, by ordinance, discontinue or reduce the rate of the

 

 

HB0270- 37 -LRB101 05409 HLH 50423 b

1tax. If a tax is imposed under this Section pursuant to a
2referendum held on or after August 23, 2011 (the effective date
3of Public Act 97-542), then the county board may reduce or
4discontinue the tax, but only in accordance with subsection
5(h-5) of this Section. If, however, a school board issues bonds
6that are secured by the proceeds of the tax under this Section,
7then the county board may not reduce the tax rate or
8discontinue the tax if that rate reduction or discontinuance
9would adversely affect the school board's ability to pay the
10principal and interest on those bonds as they become due or
11necessitate the extension of additional property taxes to pay
12the principal and interest on those bonds. If the county board
13reduces the tax rate or discontinues the tax, then a referendum
14must be held in accordance with subsection (c) of this Section
15in order to increase the rate of the tax or to reimpose the
16discontinued tax.
17    Until January 1, 2014, the results of any election that
18imposes, reduces, or discontinues a tax under this Section must
19be certified by the election authority, and any ordinance that
20increases or lowers the rate or discontinues the tax must be
21certified by the county clerk and, in each case, filed with the
22Illinois Department of Revenue either (i) on or before the
23first day of April, whereupon the Department shall proceed to
24administer and enforce the tax or change in the rate as of the
25first day of July next following the filing; or (ii) on or
26before the first day of October, whereupon the Department shall

 

 

HB0270- 38 -LRB101 05409 HLH 50423 b

1proceed to administer and enforce the tax or change in the rate
2as of the first day of January next following the filing.
3    Beginning January 1, 2014, the results of any election that
4imposes, reduces, or discontinues a tax under this Section must
5be certified by the election authority, and any ordinance that
6increases or lowers the rate or discontinues the tax must be
7certified by the county clerk and, in each case, filed with the
8Illinois Department of Revenue either (i) on or before the
9first day of May, whereupon the Department shall proceed to
10administer and enforce the tax or change in the rate as of the
11first day of July next following the filing; or (ii) on or
12before the first day of October, whereupon the Department shall
13proceed to administer and enforce the tax or change in the rate
14as of the first day of January next following the filing.
15    (h) For purposes of this Section, "school facility
16purposes" means (i) the acquisition, development,
17construction, reconstruction, rehabilitation, improvement,
18financing, architectural planning, and installation of capital
19facilities consisting of buildings, structures, and durable
20equipment and for the acquisition and improvement of real
21property and interest in real property required, or expected to
22be required, in connection with the capital facilities and (ii)
23the payment of bonds or other obligations heretofore or
24hereafter issued, including bonds or other obligations
25heretofore or hereafter issued to refund or to continue to
26refund bonds or other obligations issued, for school facility

 

 

HB0270- 39 -LRB101 05409 HLH 50423 b

1purposes, provided that the taxes levied to pay those bonds are
2abated by the amount of the taxes imposed under this Section
3that are used to pay those bonds. "School-facility purposes"
4also includes fire prevention, safety, energy conservation,
5accessibility, school security, and specified repair purposes
6set forth under Section 17-2.11 of the School Code.
7    (h-5) A county board in a county where a tax has been
8imposed under this Section pursuant to a referendum held on or
9after August 23, 2011 (the effective date of Public Act 97-542)
10may, by ordinance or resolution, submit to the voters of the
11county the question of reducing or discontinuing the tax. In
12the ordinance or resolution, the county board shall certify the
13question to the proper election authority in accordance with
14the Election Code. The election authority must submit the
15question in substantially the following form:
16        Shall the school facility retailers' occupation tax
17    and service occupation tax (commonly referred to as the
18    "school facility sales tax") currently imposed in (name of
19    county) at a rate of (insert rate) be (reduced to (insert
20    rate))(discontinued)?
21If a majority of the electors voting on the question vote in
22the affirmative, then, subject to the provisions of subsection
23(g) of this Section, the tax shall be reduced or discontinued
24as set forth in the question.
25    (i) This Section does not apply to Cook County.
26    (j) This Section may be cited as the County School Facility

 

 

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1Occupation Tax Law.
2(Source: P.A. 98-584, eff. 8-27-13; 99-143, eff. 7-27-15;
399-217, eff. 7-31-15; 99-642, eff. 7-28-16.)
 
4    Section 10. The Illinois Municipal Code is amended by
5changing Sections 8-11-1, 8-11-1.3, 8-11-1.6, and 8-11-6 as
6follows:
 
7    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
8    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
9Act. The corporate authorities of a home rule municipality may
10impose a tax upon all persons engaged in the business of
11selling tangible personal property, other than an item of
12tangible personal property titled or registered with an agency
13of this State's government, at retail in the municipality on
14the gross receipts from these sales made in the municipality in
15the course of such business. If imposed, the tax shall only be
16imposed in 1/4% increments. On and after September 1, 1991,
17this additional tax may not be imposed on the sales of food for
18human consumption that is to be consumed off the premises where
19it is sold (other than alcoholic beverages, soft drinks and
20food that has been prepared for immediate consumption) and
21prescription and nonprescription medicines, drugs, medical
22appliances and insulin, urine testing materials, syringes and
23needles used by diabetics. The tax imposed by a home rule
24municipality under this Section and all civil penalties that

 

 

HB0270- 41 -LRB101 05409 HLH 50423 b

1may be assessed as an incident of the tax shall be collected
2and enforced by the State Department of Revenue. Subject to the
3limitations set forth in this Code, the corporate authorities
4of the municipality may require a retailer to collect and remit
5a tax imposed under this Section if the retailer qualifies as a
6"retailer maintaining a place of business in this State" under
7Section 2 of the Use Tax Act. The certificate of registration
8that is issued by the Department to a retailer under the
9Retailers' Occupation Tax Act shall permit the retailer to
10engage in a business that is taxable under any ordinance or
11resolution enacted pursuant to this Section without
12registering separately with the Department under such
13ordinance or resolution or under this Section. The Department
14shall have full power to administer and enforce this Section;
15to collect all taxes and penalties due hereunder; to dispose of
16taxes and penalties so collected in the manner hereinafter
17provided; and to determine all rights to credit memoranda
18arising on account of the erroneous payment of tax or penalty
19hereunder. In the administration of, and compliance with, this
20Section the Department and persons who are subject to this
21Section shall have the same rights, remedies, privileges,
22immunities, powers and duties, and be subject to the same
23conditions, restrictions, limitations, penalties and
24definitions of terms, and employ the same modes of procedure,
25as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
261m, 1n, 2 through 2-65 (in respect to all provisions therein

 

 

HB0270- 42 -LRB101 05409 HLH 50423 b

1other than the State rate of tax), 2c, 3 (except as to the
2disposition of taxes and penalties collected), 4, 5, 5a, 5b,
35c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
49, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
5Section 3-7 of the Uniform Penalty and Interest Act, as fully
6as if those provisions were set forth herein.
7    No tax may be imposed by a home rule municipality under
8this Section unless the municipality also imposes a tax at the
9same rate under Section 8-11-5 of this Act.
10    Persons subject to any tax imposed under the authority
11granted in this Section may reimburse themselves for their
12seller's tax liability hereunder by separately stating that tax
13as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax which sellers
15are required to collect under the Use Tax Act, pursuant to such
16bracket schedules as the Department may prescribe.
17    Whenever the Department determines that a refund should be
18made under this Section to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified and to the person named in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the home rule municipal retailers' occupation
24tax fund.
25    The Department shall immediately pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

HB0270- 43 -LRB101 05409 HLH 50423 b

1collected hereunder.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this Section
8during the second preceding calendar month for sales within a
9STAR bond district.
10    After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to named municipalities,
14the municipalities to be those from which retailers have paid
15taxes or penalties hereunder to the Department during the
16second preceding calendar month. The amount to be paid to each
17municipality shall be the amount (not including credit
18memoranda) collected hereunder during the second preceding
19calendar month by the Department plus an amount the Department
20determines is necessary to offset any amounts that were
21erroneously paid to a different taxing body, and not including
22an amount equal to the amount of refunds made during the second
23preceding calendar month by the Department on behalf of such
24municipality, and not including any amount that the Department
25determines is necessary to offset any amounts that were payable
26to a different taxing body but were erroneously paid to the

 

 

HB0270- 44 -LRB101 05409 HLH 50423 b

1municipality, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund, less 1.5% of the
3remainder, which the Department shall transfer into the Tax
4Compliance and Administration Fund. The Department, at the time
5of each monthly disbursement to the municipalities, shall
6prepare and certify to the State Comptroller the amount to be
7transferred into the Tax Compliance and Administration Fund
8under this Section. Within 10 days after receipt by the
9Comptroller of the disbursement certification to the
10municipalities and the Tax Compliance and Administration Fund
11provided for in this Section to be given to the Comptroller by
12the Department, the Comptroller shall cause the orders to be
13drawn for the respective amounts in accordance with the
14directions contained in the certification.
15    In addition to the disbursement required by the preceding
16paragraph and in order to mitigate delays caused by
17distribution procedures, an allocation shall, if requested, be
18made within 10 days after January 14, 1991, and in November of
191991 and each year thereafter, to each municipality that
20received more than $500,000 during the preceding fiscal year,
21(July 1 through June 30) whether collected by the municipality
22or disbursed by the Department as required by this Section.
23Within 10 days after January 14, 1991, participating
24municipalities shall notify the Department in writing of their
25intent to participate. In addition, for the initial
26distribution, participating municipalities shall certify to

 

 

HB0270- 45 -LRB101 05409 HLH 50423 b

1the Department the amounts collected by the municipality for
2each month under its home rule occupation and service
3occupation tax during the period July 1, 1989 through June 30,
41990. The allocation within 10 days after January 14, 1991,
5shall be in an amount equal to the monthly average of these
6amounts, excluding the 2 months of highest receipts. The
7monthly average for the period of July 1, 1990 through June 30,
81991 will be determined as follows: the amounts collected by
9the municipality under its home rule occupation and service
10occupation tax during the period of July 1, 1990 through
11September 30, 1990, plus amounts collected by the Department
12and paid to such municipality through June 30, 1991, excluding
13the 2 months of highest receipts. The monthly average for each
14subsequent period of July 1 through June 30 shall be an amount
15equal to the monthly distribution made to each such
16municipality under the preceding paragraph during this period,
17excluding the 2 months of highest receipts. The distribution
18made in November 1991 and each year thereafter under this
19paragraph and the preceding paragraph shall be reduced by the
20amount allocated and disbursed under this paragraph in the
21preceding period of July 1 through June 30. The Department
22shall prepare and certify to the Comptroller for disbursement
23the allocations made in accordance with this paragraph.
24    A sale is deemed to have occurred in a municipality if the
25retailer is engaged in the business of selling tangible
26personal property in that municipality with respect to that

 

 

HB0270- 46 -LRB101 05409 HLH 50423 b

1sale, as provided in Section 2-12 of the Retailers' Occupation
2Tax Act. For the purpose of determining the local governmental
3unit whose tax is applicable, a retail sale by a producer of
4coal or other mineral mined in Illinois is a sale at retail at
5the place where the coal or other mineral mined in Illinois is
6extracted from the earth. This paragraph does not apply to coal
7or other mineral when it is delivered or shipped by the seller
8to the purchaser at a point outside Illinois so that the sale
9is exempt under the United States Constitution as a sale in
10interstate or foreign commerce.
11    Nothing in this Section shall be construed to authorize a
12municipality to impose a tax upon the privilege of engaging in
13any business which under the Constitution of the United States
14may not be made the subject of taxation by this State.
15    An ordinance or resolution imposing or discontinuing a tax
16hereunder or effecting a change in the rate thereof shall be
17adopted and a certified copy thereof filed with the Department
18on or before the first day of June, whereupon the Department
19shall proceed to administer and enforce this Section as of the
20first day of September next following the adoption and filing.
21Beginning January 1, 1992, an ordinance or resolution imposing
22or discontinuing the tax hereunder or effecting a change in the
23rate thereof shall be adopted and a certified copy thereof
24filed with the Department on or before the first day of July,
25whereupon the Department shall proceed to administer and
26enforce this Section as of the first day of October next

 

 

HB0270- 47 -LRB101 05409 HLH 50423 b

1following such adoption and filing. Beginning January 1, 1993,
2an ordinance or resolution imposing or discontinuing the tax
3hereunder or effecting a change in the rate thereof shall be
4adopted and a certified copy thereof filed with the Department
5on or before the first day of October, whereupon the Department
6shall proceed to administer and enforce this Section as of the
7first day of January next following the adoption and filing.
8However, a municipality located in a county with a population
9in excess of 3,000,000 that elected to become a home rule unit
10at the general primary election in 1994 may adopt an ordinance
11or resolution imposing the tax under this Section and file a
12certified copy of the ordinance or resolution with the
13Department on or before July 1, 1994. The Department shall then
14proceed to administer and enforce this Section as of October 1,
151994. Beginning April 1, 1998, an ordinance or resolution
16imposing or discontinuing the tax hereunder or effecting a
17change in the rate thereof shall either (i) be adopted and a
18certified copy thereof filed with the Department on or before
19the first day of April, whereupon the Department shall proceed
20to administer and enforce this Section as of the first day of
21July next following the adoption and filing; or (ii) be adopted
22and a certified copy thereof filed with the Department on or
23before the first day of October, whereupon the Department shall
24proceed to administer and enforce this Section as of the first
25day of January next following the adoption and filing.
26    When certifying the amount of a monthly disbursement to a

 

 

HB0270- 48 -LRB101 05409 HLH 50423 b

1municipality under this Section, the Department shall increase
2or decrease the amount by an amount necessary to offset any
3misallocation of previous disbursements. The offset amount
4shall be the amount erroneously disbursed within the previous 6
5months from the time a misallocation is discovered.
6    Any unobligated balance remaining in the Municipal
7Retailers' Occupation Tax Fund on December 31, 1989, which fund
8was abolished by Public Act 85-1135, and all receipts of
9municipal tax as a result of audits of liability periods prior
10to January 1, 1990, shall be paid into the Local Government Tax
11Fund for distribution as provided by this Section prior to the
12enactment of Public Act 85-1135. All receipts of municipal tax
13as a result of an assessment not arising from an audit, for
14liability periods prior to January 1, 1990, shall be paid into
15the Local Government Tax Fund for distribution before July 1,
161990, as provided by this Section prior to the enactment of
17Public Act 85-1135; and on and after July 1, 1990, all such
18receipts shall be distributed as provided in Section 6z-18 of
19the State Finance Act.
20    As used in this Section, "municipal" and "municipality"
21means a city, village or incorporated town, including an
22incorporated town that has superseded a civil township.
23    This Section shall be known and may be cited as the Home
24Rule Municipal Retailers' Occupation Tax Act.
25(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
26100-587, eff. 6-4-18.)
 

 

 

HB0270- 49 -LRB101 05409 HLH 50423 b

1    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
2    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
3Occupation Tax Act. The corporate authorities of a non-home
4rule municipality may impose a tax upon all persons engaged in
5the business of selling tangible personal property, other than
6on an item of tangible personal property which is titled and
7registered by an agency of this State's Government, at retail
8in the municipality for expenditure on public infrastructure or
9for property tax relief or both as defined in Section 8-11-1.2
10if approved by referendum as provided in Section 8-11-1.1, of
11the gross receipts from such sales made in the municipality in
12the course of such business. If the tax is approved by
13referendum on or after July 14, 2010 (the effective date of
14Public Act 96-1057), the corporate authorities of a non-home
15rule municipality may, until December 31, 2020, use the
16proceeds of the tax for expenditure on municipal operations, in
17addition to or in lieu of any expenditure on public
18infrastructure or for property tax relief. Subject to the
19limitations set forth in this Code, the corporate authorities
20of the municipality may require a retailer to collect and remit
21a tax imposed under this Section if the retailer qualifies as a
22"retailer maintaining a place of business in this State" under
23Section 2 of the Use Tax Act. The tax imposed may not be more
24than 1% and may be imposed only in 1/4% increments. The tax may
25not be imposed on the sale of food for human consumption that

 

 

HB0270- 50 -LRB101 05409 HLH 50423 b

1is to be consumed off the premises where it is sold (other than
2alcoholic beverages, soft drinks, and food that has been
3prepared for immediate consumption) and prescription and
4nonprescription medicines, drugs, medical appliances, and
5insulin, urine testing materials, syringes, and needles used by
6diabetics. The tax imposed by a municipality pursuant to this
7Section and all civil penalties that may be assessed as an
8incident thereof shall be collected and enforced by the State
9Department of Revenue. The certificate of registration which is
10issued by the Department to a retailer under the Retailers'
11Occupation Tax Act shall permit such retailer to engage in a
12business which is taxable under any ordinance or resolution
13enacted pursuant to this Section without registering
14separately with the Department under such ordinance or
15resolution or under this Section. The Department shall have
16full power to administer and enforce this Section; to collect
17all taxes and penalties due hereunder; to dispose of taxes and
18penalties so collected in the manner hereinafter provided, and
19to determine all rights to credit memoranda, arising on account
20of the erroneous payment of tax or penalty hereunder. In the
21administration of, and compliance with, this Section, the
22Department and persons who are subject to this Section shall
23have the same rights, remedies, privileges, immunities, powers
24and duties, and be subject to the same conditions,
25restrictions, limitations, penalties and definitions of terms,
26and employ the same modes of procedure, as are prescribed in

 

 

HB0270- 51 -LRB101 05409 HLH 50423 b

1Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
2respect to all provisions therein other than the State rate of
3tax), 2c, 3 (except as to the disposition of taxes and
4penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
55j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
6Retailers' Occupation Tax Act and Section 3-7 of the Uniform
7Penalty and Interest Act as fully as if those provisions were
8set forth herein.
9    No municipality may impose a tax under this Section unless
10the municipality also imposes a tax at the same rate under
11Section 8-11-1.4 of this Code.
12    Persons subject to any tax imposed pursuant to the
13authority granted in this Section may reimburse themselves for
14their seller's tax liability hereunder by separately stating
15such tax as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax which sellers
17are required to collect under the Use Tax Act, pursuant to such
18bracket schedules as the Department may prescribe.
19    Whenever the Department determines that a refund should be
20made under this Section to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified, and to the person named, in such notification
24from the Department. Such refund shall be paid by the State
25Treasurer out of the non-home rule municipal retailers'
26occupation tax fund.

 

 

HB0270- 52 -LRB101 05409 HLH 50423 b

1    The Department shall forthwith pay over to the State
2Treasurer, ex officio, as trustee, all taxes and penalties
3collected hereunder.
4    As soon as possible after the first day of each month,
5beginning January 1, 2011, upon certification of the Department
6of Revenue, the Comptroller shall order transferred, and the
7Treasurer shall transfer, to the STAR Bonds Revenue Fund the
8local sales tax increment, as defined in the Innovation
9Development and Economy Act, collected under this Section
10during the second preceding calendar month for sales within a
11STAR bond district.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to named municipalities,
16the municipalities to be those from which retailers have paid
17taxes or penalties hereunder to the Department during the
18second preceding calendar month. The amount to be paid to each
19municipality shall be the amount (not including credit
20memoranda) collected hereunder during the second preceding
21calendar month by the Department plus an amount the Department
22determines is necessary to offset any amounts which were
23erroneously paid to a different taxing body, and not including
24an amount equal to the amount of refunds made during the second
25preceding calendar month by the Department on behalf of such
26municipality, and not including any amount which the Department

 

 

HB0270- 53 -LRB101 05409 HLH 50423 b

1determines is necessary to offset any amounts which were
2payable to a different taxing body but were erroneously paid to
3the municipality, and not including any amounts that are
4transferred to the STAR Bonds Revenue Fund, less 1.5% of the
5remainder, which the Department shall transfer into the Tax
6Compliance and Administration Fund. The Department, at the time
7of each monthly disbursement to the municipalities, shall
8prepare and certify to the State Comptroller the amount to be
9transferred into the Tax Compliance and Administration Fund
10under this Section. Within 10 days after receipt, by the
11Comptroller, of the disbursement certification to the
12municipalities and the Tax Compliance and Administration Fund
13provided for in this Section to be given to the Comptroller by
14the Department, the Comptroller shall cause the orders to be
15drawn for the respective amounts in accordance with the
16directions contained in such certification.
17    A sale is deemed to have occurred in a municipality if the
18retailer is engaged in the business of selling tangible
19personal property in that municipality with respect to that
20sale, as provided in Section 2-12 of the Retailers' Occupation
21Tax Act. For the purpose of determining the local governmental
22unit whose tax is applicable, a retail sale, by a producer of
23coal or other mineral mined in Illinois, is a sale at retail at
24the place where the coal or other mineral mined in Illinois is
25extracted from the earth. This paragraph does not apply to coal
26or other mineral when it is delivered or shipped by the seller

 

 

HB0270- 54 -LRB101 05409 HLH 50423 b

1to the purchaser at a point outside Illinois so that the sale
2is exempt under the Federal Constitution as a sale in
3interstate or foreign commerce.
4    Nothing in this Section shall be construed to authorize a
5municipality to impose a tax upon the privilege of engaging in
6any business which under the constitution of the United States
7may not be made the subject of taxation by this State.
8    When certifying the amount of a monthly disbursement to a
9municipality under this Section, the Department shall increase
10or decrease such amount by an amount necessary to offset any
11misallocation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous 6
13months from the time a misallocation is discovered.
14    The Department of Revenue shall implement this amendatory
15Act of the 91st General Assembly so as to collect the tax on
16and after January 1, 2002.
17    As used in this Section, "municipal" and "municipality"
18means a city, village or incorporated town, including an
19incorporated town which has superseded a civil township.
20    This Section shall be known and may be cited as the
21"Non-Home Rule Municipal Retailers' Occupation Tax Act".
22(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
23100-587, eff. 6-4-18.)
 
24    (65 ILCS 5/8-11-1.6)
25    Sec. 8-11-1.6. Non-home rule municipal retailers

 

 

HB0270- 55 -LRB101 05409 HLH 50423 b

1occupation tax; municipalities between 20,000 and 25,000. The
2corporate authorities of a non-home rule municipality with a
3population of more than 20,000 but less than 25,000 that has,
4prior to January 1, 1987, established a Redevelopment Project
5Area that has been certified as a State Sales Tax Boundary and
6has issued bonds or otherwise incurred indebtedness to pay for
7costs in excess of $5,000,000, which is secured in part by a
8tax increment allocation fund, in accordance with the
9provisions of Division 11-74.4 of this Code may, by passage of
10an ordinance, impose a tax upon all persons engaged in the
11business of selling tangible personal property, other than on
12an item of tangible personal property that is titled and
13registered by an agency of this State's Government, at retail
14in the municipality. This tax may not be imposed on the sales
15of food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks, and food that has been prepared for immediate
18consumption) and prescription and nonprescription medicines,
19drugs, medical appliances and insulin, urine testing
20materials, syringes, and needles used by diabetics. If imposed,
21the tax shall only be imposed in .25% increments of the gross
22receipts from such sales made in the municipality in the course
23of business. Any tax imposed by a municipality under this
24Section and all civil penalties that may be assessed as an
25incident thereof shall be collected and enforced by the State
26Department of Revenue. An ordinance imposing a tax hereunder or

 

 

HB0270- 56 -LRB101 05409 HLH 50423 b

1effecting a change in the rate thereof shall be adopted and a
2certified copy thereof filed with the Department on or before
3the first day of October, whereupon the Department shall
4proceed to administer and enforce this Section as of the first
5day of January next following such adoption and filing. The
6certificate of registration that is issued by the Department to
7a retailer under the Retailers' Occupation Tax Act shall permit
8the retailer to engage in a business that is taxable under any
9ordinance or resolution enacted under this Section without
10registering separately with the Department under the ordinance
11or resolution or under this Section. The Department shall have
12full power to administer and enforce this Section, to collect
13all taxes and penalties due hereunder, to dispose of taxes and
14penalties so collected in the manner hereinafter provided, and
15to determine all rights to credit memoranda, arising on account
16of the erroneous payment of tax or penalty hereunder. In the
17administration of, and compliance with this Section, the
18Department and persons who are subject to this Section shall
19have the same rights, remedies, privileges, immunities,
20powers, and duties, and be subject to the same conditions,
21restrictions, limitations, penalties, and definitions of
22terms, and employ the same modes of procedure, as are
23prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
24through 2-65 (in respect to all provisions therein other than
25the State rate of tax), 2c, 3 (except as to the disposition of
26taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,

 

 

HB0270- 57 -LRB101 05409 HLH 50423 b

15g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
2and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
3the Uniform Penalty and Interest Act as fully as if those
4provisions were set forth herein.
5    Subject to the limitations set forth in this Code, the
6corporate authorities of the municipality may require a
7retailer to collect and remit a tax imposed under this Section
8if the retailer qualifies as a "retailer maintaining a place of
9business in this State" under Section 2 of the Use Tax Act.
10    A tax may not be imposed by a municipality under this
11Section unless the municipality also imposes a tax at the same
12rate under Section 8-11-1.7 of this Act.
13    Persons subject to any tax imposed under the authority
14granted in this Section may reimburse themselves for their
15seller's tax liability hereunder by separately stating the tax
16as an additional charge, which charge may be stated in
17combination, in a single amount, with State tax which sellers
18are required to collect under the Use Tax Act, pursuant to such
19bracket schedules as the Department may prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant, instead of issuing a
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the order to be drawn for the
24amount specified, and to the person named in the notification
25from the Department. The refund shall be paid by the State
26Treasurer out of the Non-Home Rule Municipal Retailers'

 

 

HB0270- 58 -LRB101 05409 HLH 50423 b

1Occupation Tax Fund, which is hereby created.
2    The Department shall forthwith pay over to the State
3Treasurer, ex officio, as trustee, all taxes and penalties
4collected hereunder.
5    As soon as possible after the first day of each month,
6beginning January 1, 2011, upon certification of the Department
7of Revenue, the Comptroller shall order transferred, and the
8Treasurer shall transfer, to the STAR Bonds Revenue Fund the
9local sales tax increment, as defined in the Innovation
10Development and Economy Act, collected under this Section
11during the second preceding calendar month for sales within a
12STAR bond district.
13    After the monthly transfer to the STAR Bonds Revenue Fund,
14on or before the 25th day of each calendar month, the
15Department shall prepare and certify to the Comptroller the
16disbursement of stated sums of money to named municipalities,
17the municipalities to be those from which retailers have paid
18taxes or penalties hereunder to the Department during the
19second preceding calendar month. The amount to be paid to each
20municipality shall be the amount (not including credit
21memoranda) collected hereunder during the second preceding
22calendar month by the Department plus an amount the Department
23determines is necessary to offset any amounts that were
24erroneously paid to a different taxing body, and not including
25an amount equal to the amount of refunds made during the second
26preceding calendar month by the Department on behalf of the

 

 

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1municipality, and not including any amount that the Department
2determines is necessary to offset any amounts that were payable
3to a different taxing body but were erroneously paid to the
4municipality, and not including any amounts that are
5transferred to the STAR Bonds Revenue Fund, less 1.5% of the
6remainder, which the Department shall transfer into the Tax
7Compliance and Administration Fund. The Department, at the time
8of each monthly disbursement to the municipalities, shall
9prepare and certify to the State Comptroller the amount to be
10transferred into the Tax Compliance and Administration Fund
11under this Section. Within 10 days after receipt by the
12Comptroller of the disbursement certification to the
13municipalities and the Tax Compliance and Administration Fund
14provided for in this Section to be given to the Comptroller by
15the Department, the Comptroller shall cause the orders to be
16drawn for the respective amounts in accordance with the
17directions contained in the certification.
18    A sale is deemed to have occurred in a municipality if the
19retailer is engaged in the business of selling tangible
20personal property in that municipality with respect to that
21sale, as provided in Section 2-12 of the Retailers' Occupation
22Tax Act. For the purpose of determining the local governmental
23unit whose tax is applicable, a retail sale by a producer of
24coal or other mineral mined in Illinois is a sale at retail at
25the place where the coal or other mineral mined in Illinois is
26extracted from the earth. This paragraph does not apply to coal

 

 

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1or other mineral when it is delivered or shipped by the seller
2to the purchaser at a point outside Illinois so that the sale
3is exempt under the federal Constitution as a sale in
4interstate or foreign commerce.
5    Nothing in this Section shall be construed to authorize a
6municipality to impose a tax upon the privilege of engaging in
7any business which under the constitution of the United States
8may not be made the subject of taxation by this State.
9    When certifying the amount of a monthly disbursement to a
10municipality under this Section, the Department shall increase
11or decrease the amount by an amount necessary to offset any
12misallocation of previous disbursements. The offset amount
13shall be the amount erroneously disbursed within the previous 6
14months from the time a misallocation is discovered.
15    As used in this Section, "municipal" and "municipality"
16means a city, village, or incorporated town, including an
17incorporated town that has superseded a civil township.
18(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
19100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
208-14-18.)
 
21    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)
22    Sec. 8-11-6. Home Rule Municipal Use Tax Act.
23    (a) The corporate authorities of a home rule municipality
24may impose a tax upon the privilege of using, in such
25municipality, any item of tangible personal property which is

 

 

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1purchased at retail from a retailer, and which is titled or
2registered at a location within the corporate limits of such
3home rule municipality with an agency of this State's
4government, at a rate which is an increment of 1/4% and based
5on the selling price of such tangible personal property, as
6"selling price" is defined in the Use Tax Act. In home rule
7municipalities with less than 2,000,000 inhabitants, the tax
8shall be collected by the municipality imposing the tax from
9persons whose Illinois address for titling or registration
10purposes is given as being in such municipality.
11    (b) In home rule municipalities with 2,000,000 or more
12inhabitants, the corporate authorities of the municipality may
13additionally impose a tax beginning July 1, 1991 upon the
14privilege of using in the municipality, any item of tangible
15personal property, other than tangible personal property
16titled or registered with an agency of the State's government,
17that is purchased at retail from a retailer located outside the
18corporate limits of the municipality, at a rate that is an
19increment of 1/4% not to exceed 1% and based on the selling
20price of the tangible personal property, as "selling price" is
21defined in the Use Tax Act. Such tax shall be collected from
22the purchaser either by the municipality imposing such tax or
23by the Department of Revenue pursuant to an agreement between
24the Department and the municipality.
25    To prevent multiple home rule taxation, the use in a home
26rule municipality of tangible personal property that is

 

 

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1acquired outside the municipality and caused to be brought into
2the municipality by a person who has already paid a home rule
3municipal tax in another municipality in respect to the sale,
4purchase, or use of that property, shall be exempt to the
5extent of the amount of the tax properly due and paid in the
6other home rule municipality.
7    (c) If a municipality having 2,000,000 or more inhabitants
8imposes the tax authorized by subsection (a), then the tax
9shall be collected by the Illinois Department of Revenue when
10the property is purchased at retail from a retailer in the
11county in which the home rule municipality imposing the tax is
12located, and in all contiguous counties. The tax shall be
13remitted to the State, or an exemption determination must be
14obtained from the Department before the title or certificate of
15registration for the property may be issued. The tax or proof
16of exemption may be transmitted to the Department by way of the
17State agency with which, or State officer with whom, the
18tangible personal property must be titled or registered if the
19Department and that agency or State officer determine that this
20procedure will expedite the processing of applications for
21title or registration.
22    The Department shall have full power to administer and
23enforce this Section to collect all taxes, penalties and
24interest due hereunder, to dispose of taxes, penalties and
25interest so collected in the manner hereinafter provided, and
26determine all rights to credit memoranda or refunds arising on

 

 

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1account of the erroneous payment of tax, penalty or interest
2hereunder. In the administration of and compliance with this
3Section the Department and persons who are subject to this
4Section shall have the same rights, remedies, privileges,
5immunities, powers and duties, and be subject to the same
6conditions, restrictions, limitations, penalties and
7definitions of terms, and employ the same modes of procedure as
8are prescribed in Sections 2 (except the definition of
9"retailer maintaining a place of business in this State"), 3
10(except provisions pertaining to the State rate of tax, and
11except provisions concerning collection or refunding of the tax
12by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
13Use Tax Act, which are not inconsistent with this Section, as
14fully as if provisions contained in those Sections of the Use
15Tax Act were set forth herein.
16    Whenever the Department determines that a refund shall be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified, and to the person named, in such notification
21from the Department. Such refund shall be paid by the State
22Treasurer out of the home rule municipal retailers' occupation
23tax fund.
24    The Department shall forthwith pay over to the State
25Treasurer, ex officio, as trustee, all taxes, penalties and
26interest collected hereunder. On or before the 25th day of each

 

 

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1calendar month, the Department shall prepare and certify to the
2State Comptroller the disbursement of stated sums of money to
3named municipalities, the municipality in each instance to be
4that municipality from which the Department during the second
5preceding calendar month, collected municipal use tax from any
6person whose Illinois address for titling or registration
7purposes is given as being in such municipality. The amount to
8be paid to each municipality shall be the amount (not including
9credit memoranda) collected hereunder during the second
10preceding calendar month by the Department, and not including
11an amount equal to the amount of refunds made during the second
12preceding calendar month by the Department on behalf of such
13municipality, less 2% of the balance, which sum shall be
14retained by the State Treasurer to cover the costs incurred by
15the Department in administering and enforcing the provisions of
16this Section. The Department, at the time of each monthly
17disbursement to the municipalities, shall prepare and certify
18to the Comptroller the amount so retained by the State
19Treasurer, which shall be transferred into the Tax Compliance
20and Administration Fund. Within 10 days after receipt by the
21State Comptroller of the disbursement certification to the
22municipalities provided for in this Section to be given to the
23State Comptroller by the Department, the State Comptroller
24shall cause the orders to be drawn for the respective amounts
25in accordance with the directions contained in that
26certification.

 

 

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1    Any ordinance imposing or discontinuing any tax to be
2collected and enforced by the Department under this Section
3shall be adopted and a certified copy thereof filed with the
4Department on or before October 1, whereupon the Department of
5Revenue shall proceed to administer and enforce this Section on
6behalf of the municipalities as of January 1 next following
7such adoption and filing. Beginning April 1, 1998, any
8ordinance imposing or discontinuing any tax to be collected and
9enforced by the Department under this Section shall either (i)
10be adopted and a certified copy thereof filed with the
11Department on or before April 1, whereupon the Department of
12Revenue shall proceed to administer and enforce this Section on
13behalf of the municipalities as of July 1 next following the
14adoption and filing; or (ii) be adopted and a certified copy
15thereof filed with the Department on or before October 1,
16whereupon the Department of Revenue shall proceed to administer
17and enforce this Section on behalf of the municipalities as of
18January 1 next following the adoption and filing.
19    Nothing in this subsection (c) shall prevent a home rule
20municipality from collecting the tax pursuant to subsection (a)
21in any situation where such tax is not collected by the
22Department of Revenue under this subsection (c).
23    Subject to the limitations set forth in this Code, the
24corporate authorities may require a retailer to collect and
25remit a tax imposed under this Section if the retailer
26qualifies as a "retailer maintaining a place of business in

 

 

HB0270- 66 -LRB101 05409 HLH 50423 b

1this State" under Section 2 of the Use Tax Act.
2    (d) Any unobligated balance remaining in the Municipal
3Retailers' Occupation Tax Fund on December 31, 1989, which fund
4was abolished by Public Act 85-1135, and all receipts of
5municipal tax as a result of audits of liability periods prior
6to January 1, 1990, shall be paid into the Local Government Tax
7Fund, for distribution as provided by this Section prior to the
8enactment of Public Act 85-1135. All receipts of municipal tax
9as a result of an assessment not arising from an audit, for
10liability periods prior to January 1, 1990, shall be paid into
11the Local Government Tax Fund for distribution before July 1,
121990, as provided by this Section prior to the enactment of
13Public Act 85-1135, and on and after July 1, 1990, all such
14receipts shall be distributed as provided in Section 6z-18 of
15the State Finance Act.
16    (e) As used in this Section, "Municipal" and "Municipality"
17means a city, village or incorporated town, including an
18incorporated town which has superseded a civil township.
19    (f) This Section shall be known and may be cited as the
20Home Rule Municipal Use Tax Act.
21(Source: P.A. 98-1049, eff. 8-25-14.)
 
22    Section 15. The Flood Prevention District Act is amended by
23changing Section 25 as follows:
 
24    (70 ILCS 750/25)

 

 

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1    Sec. 25. Flood prevention retailers' and service
2occupation taxes.
3    (a) If the Board of Commissioners of a flood prevention
4district determines that an emergency situation exists
5regarding levee repair or flood prevention, and upon an
6ordinance confirming the determination adopted by the
7affirmative vote of a majority of the members of the county
8board of the county in which the district is situated, the
9county may impose a flood prevention retailers' occupation tax
10upon all persons engaged in the business of selling tangible
11personal property at retail within the territory of the
12district to provide revenue to pay the costs of providing
13emergency levee repair and flood prevention and to secure the
14payment of bonds, notes, and other evidences of indebtedness
15issued under this Act for a period not to exceed 25 years or as
16required to repay the bonds, notes, and other evidences of
17indebtedness issued under this Act. Subject to the limitations
18set forth in this Section, the county may require a retailer to
19collect and remit a tax imposed under this Section if the
20retailer qualifies as a "retailer maintaining a place of
21business in this State" under Section 2 of the Use Tax Act. The
22tax rate shall be 0.25% of the gross receipts from all taxable
23sales made in the district in the course of that business. The
24tax imposed under this Section and all civil penalties that may
25be assessed as an incident thereof shall be collected and
26enforced by the State Department of Revenue. The Department

 

 

HB0270- 68 -LRB101 05409 HLH 50423 b

1shall have full power to administer and enforce this Section;
2to collect all taxes and penalties so collected in the manner
3hereinafter provided; and to determine all rights to credit
4memoranda arising on account of the erroneous payment of tax or
5penalty hereunder.
6    In the administration of and compliance with this
7subsection, the Department and persons who are subject to this
8subsection (i) have the same rights, remedies, privileges,
9immunities, powers, and duties, (ii) are subject to the same
10conditions, restrictions, limitations, penalties, and
11definitions of terms, and (iii) shall employ the same modes of
12procedure as are set forth in Sections 1 through 1o, 2 through
132-70 (in respect to all provisions contained in those Sections
14other than the State rate of tax), 2a through 2h, 3 (except as
15to the disposition of taxes and penalties collected), 4, 5, 5a,
165b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1710, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
18and all provisions of the Uniform Penalty and Interest Act as
19if those provisions were set forth in this subsection.
20    A sale is deemed to have occurred in a flood prevention
21district if the retailer is engaged in the business of selling
22tangible personal property in that flood prevention district
23with respect to that sale, as provided in Section 2-12 of the
24Retailers' Occupation Tax Act.
25    Persons subject to any tax imposed under this Section may
26reimburse themselves for their seller's tax liability

 

 

HB0270- 69 -LRB101 05409 HLH 50423 b

1hereunder by separately stating the tax as an additional
2charge, which charge may be stated in combination in a single
3amount with State taxes that sellers are required to collect
4under the Use Tax Act, under any bracket schedules the
5Department may prescribe.
6    If a tax is imposed under this subsection (a), a tax shall
7also be imposed under subsection (b) of this Section.
8    (b) If a tax has been imposed under subsection (a), a flood
9prevention service occupation tax shall also be imposed upon
10all persons engaged within the territory of the district in the
11business of making sales of service, who, as an incident to
12making the sales of service, transfer tangible personal
13property, either in the form of tangible personal property or
14in the form of real estate as an incident to a sale of service
15to provide revenue to pay the costs of providing emergency
16levee repair and flood prevention and to secure the payment of
17bonds, notes, and other evidences of indebtedness issued under
18this Act for a period not to exceed 25 years or as required to
19repay the bonds, notes, and other evidences of indebtedness.
20The tax rate shall be 0.25% of the selling price of all
21tangible personal property transferred.
22    The tax imposed under this subsection and all civil
23penalties that may be assessed as an incident thereof shall be
24collected and enforced by the State Department of Revenue. The
25Department shall have full power to administer and enforce this
26subsection; to collect all taxes and penalties due hereunder;

 

 

HB0270- 70 -LRB101 05409 HLH 50423 b

1to dispose of taxes and penalties collected in the manner
2hereinafter provided; and to determine all rights to credit
3memoranda arising on account of the erroneous payment of tax or
4penalty hereunder.
5    In the administration of and compliance with this
6subsection, the Department and persons who are subject to this
7subsection shall (i) have the same rights, remedies,
8privileges, immunities, powers, and duties, (ii) be subject to
9the same conditions, restrictions, limitations, penalties, and
10definitions of terms, and (iii) employ the same modes of
11procedure as are set forth in Sections 2 (except that the
12reference to State in the definition of supplier maintaining a
13place of business in this State means the district), 2a through
142d, 3 through 3-50 (in respect to all provisions contained in
15those Sections other than the State rate of tax), 4 (except
16that the reference to the State shall be to the district), 5,
177, 8 (except that the jurisdiction to which the tax is a debt
18to the extent indicated in that Section 8 is the district), 9
19(except as to the disposition of taxes and penalties
20collected), 10, 11, 12 (except the reference therein to Section
212b of the Retailers' Occupation Tax Act), 13 (except that any
22reference to the State means the district), Section 15, 16, 17,
2318, 19, and 20 of the Service Occupation Tax Act and all
24provisions of the Uniform Penalty and Interest Act, as fully as
25if those provisions were set forth herein.
26    Persons subject to any tax imposed under the authority

 

 

HB0270- 71 -LRB101 05409 HLH 50423 b

1granted in this subsection may reimburse themselves for their
2serviceman's tax liability hereunder by separately stating the
3tax as an additional charge, that charge may be stated in
4combination in a single amount with State tax that servicemen
5are authorized to collect under the Service Use Tax Act, under
6any bracket schedules the Department may prescribe.
7    (c) The taxes imposed in subsections (a) and (b) may not be
8imposed on personal property titled or registered with an
9agency of the State; food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption); prescription and
13non-prescription medicines, drugs, and medical appliances;
14modifications to a motor vehicle for the purpose of rendering
15it usable by a person with a disability; or insulin, urine
16testing materials, and syringes and needles used by diabetics.
17    (d) Nothing in this Section shall be construed to authorize
18the district to impose a tax upon the privilege of engaging in
19any business that under the Constitution of the United States
20may not be made the subject of taxation by the State.
21    (e) The certificate of registration that is issued by the
22Department to a retailer under the Retailers' Occupation Tax
23Act or a serviceman under the Service Occupation Tax Act
24permits the retailer or serviceman to engage in a business that
25is taxable without registering separately with the Department
26under an ordinance or resolution under this Section.

 

 

HB0270- 72 -LRB101 05409 HLH 50423 b

1    (f) The Department shall immediately pay over to the State
2Treasurer, ex officio, as trustee, all taxes and penalties
3collected under this Section to be deposited into the Flood
4Prevention Occupation Tax Fund, which shall be an
5unappropriated trust fund held outside the State treasury.
6    On or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to the counties from which
9retailers or servicemen have paid taxes or penalties to the
10Department during the second preceding calendar month. The
11amount to be paid to each county is equal to the amount (not
12including credit memoranda) collected from the county under
13this Section during the second preceding calendar month by the
14Department, (i) less 2% of that amount, which shall be
15deposited into the Tax Compliance and Administration Fund and
16shall be used by the Department in administering and enforcing
17the provisions of this Section on behalf of the county, (ii)
18plus an amount that the Department determines is necessary to
19offset any amounts that were erroneously paid to a different
20taxing body; (iii) less an amount equal to the amount of
21refunds made during the second preceding calendar month by the
22Department on behalf of the county; and (iv) less any amount
23that the Department determines is necessary to offset any
24amounts that were payable to a different taxing body but were
25erroneously paid to the county. When certifying the amount of a
26monthly disbursement to a county under this Section, the

 

 

HB0270- 73 -LRB101 05409 HLH 50423 b

1Department shall increase or decrease the amounts by an amount
2necessary to offset any miscalculation of previous
3disbursements within the previous 6 months from the time a
4miscalculation is discovered.
5    Within 10 days after receipt by the Comptroller from the
6Department of the disbursement certification to the counties
7provided for in this Section, the Comptroller shall cause the
8orders to be drawn for the respective amounts in accordance
9with directions contained in the certification.
10    If the Department determines that a refund should be made
11under this Section to a claimant instead of issuing a credit
12memorandum, then the Department shall notify the Comptroller,
13who shall cause the order to be drawn for the amount specified
14and to the person named in the notification from the
15Department. The refund shall be paid by the Treasurer out of
16the Flood Prevention Occupation Tax Fund.
17    (g) If a county imposes a tax under this Section, then the
18county board shall, by ordinance, discontinue the tax upon the
19payment of all indebtedness of the flood prevention district.
20The tax shall not be discontinued until all indebtedness of the
21District has been paid.
22    (h) Any ordinance imposing the tax under this Section, or
23any ordinance that discontinues the tax, must be certified by
24the county clerk and filed with the Illinois Department of
25Revenue either (i) on or before the first day of April,
26whereupon the Department shall proceed to administer and

 

 

HB0270- 74 -LRB101 05409 HLH 50423 b

1enforce the tax or change in the rate as of the first day of
2July next following the filing; or (ii) on or before the first
3day of October, whereupon the Department shall proceed to
4administer and enforce the tax or change in the rate as of the
5first day of January next following the filing.
6    (j) County Flood Prevention Occupation Tax Fund. All
7proceeds received by a county from a tax distribution under
8this Section must be maintained in a special fund known as the
9[name of county] flood prevention occupation tax fund. The
10county shall, at the direction of the flood prevention
11district, use moneys in the fund to pay the costs of providing
12emergency levee repair and flood prevention and to pay bonds,
13notes, and other evidences of indebtedness issued under this
14Act.
15    (k) This Section may be cited as the Flood Prevention
16Occupation Tax Law.
17(Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15;
1899-642, eff. 7-28-16.)
 
19    Section 20. The Local Mass Transit District Act is amended
20by changing Section 5.01 as follows:
 
21    (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
22    Sec. 5.01. Metro East Mass Transit District; use and
23occupation taxes.
24    (a) The Board of Trustees of any Metro East Mass Transit

 

 

HB0270- 75 -LRB101 05409 HLH 50423 b

1District may, by ordinance adopted with the concurrence of
2two-thirds of the then trustees, impose throughout the District
3any or all of the taxes and fees provided in this Section. All
4taxes and fees imposed under this Section shall be used only
5for public mass transportation systems, and the amount used to
6provide mass transit service to unserved areas of the District
7shall be in the same proportion to the total proceeds as the
8number of persons residing in the unserved areas is to the
9total population of the District. Except as otherwise provided
10in this Act, taxes imposed under this Section and civil
11penalties imposed incident thereto shall be collected and
12enforced by the State Department of Revenue. The Department
13shall have the power to administer and enforce the taxes and to
14determine all rights for refunds for erroneous payments of the
15taxes.
16    (b) The Board may impose a Metro East Mass Transit District
17Retailers' Occupation Tax upon all persons engaged in the
18business of selling tangible personal property at retail in the
19district at a rate of 1/4 of 1%, or as authorized under
20subsection (d-5) of this Section, of the gross receipts from
21the sales made in the course of such business within the
22district. The tax imposed under this Section and all civil
23penalties that may be assessed as an incident thereof shall be
24collected and enforced by the State Department of Revenue. The
25Department shall have full power to administer and enforce this
26Section; to collect all taxes and penalties so collected in the

 

 

HB0270- 76 -LRB101 05409 HLH 50423 b

1manner hereinafter provided; and to determine all rights to
2credit memoranda arising on account of the erroneous payment of
3tax or penalty hereunder. In the administration of, and
4compliance with, this Section, the Department and persons who
5are subject to this Section shall have the same rights,
6remedies, privileges, immunities, powers and duties, and be
7subject to the same conditions, restrictions, limitations,
8penalties, exclusions, exemptions and definitions of terms and
9employ the same modes of procedure, as are prescribed in
10Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
11(in respect to all provisions therein other than the State rate
12of tax), 2c, 3 (except as to the disposition of taxes and
13penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
145k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
15the Retailers' Occupation Tax Act and Section 3-7 of the
16Uniform Penalty and Interest Act, as fully as if those
17provisions were set forth herein.
18    Persons subject to any tax imposed under the Section may
19reimburse themselves for their seller's tax liability
20hereunder by separately stating the tax as an additional
21charge, which charge may be stated in combination, in a single
22amount, with State taxes that sellers are required to collect
23under the Use Tax Act, in accordance with such bracket
24schedules as the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this Section to a claimant instead of issuing a

 

 

HB0270- 77 -LRB101 05409 HLH 50423 b

1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the warrant to be drawn for the
3amount specified, and to the person named, in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the Metro East Mass Transit District tax fund
6established under paragraph (h) of this Section.
7    If a tax is imposed under this subsection (b), a tax shall
8also be imposed under subsections (c) and (d) of this Section.
9    Subject to the limitations set forth in this Section, the
10Board may require a retailer to collect and remit the taxes
11imposed under this Section if the retailer qualifies as a
12"retailer maintaining a place of business in this State" under
13Section 2 of the Use Tax Act. A sale is deemed to have occurred
14in the District if the retailer is engaged in the business of
15selling tangible personal property in the District with respect
16to that sale, as provided in Section 2-12 of the Retailers'
17Occupation Tax Act.
18    For the purpose of determining whether a tax authorized
19under this Section is applicable, a retail sale, by a producer
20of coal or other mineral mined in Illinois, is a sale at retail
21at the place where the coal or other mineral mined in Illinois
22is extracted from the earth. This paragraph does not apply to
23coal or other mineral when it is delivered or shipped by the
24seller to the purchaser at a point outside Illinois so that the
25sale is exempt under the Federal Constitution as a sale in
26interstate or foreign commerce.

 

 

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1    No tax shall be imposed or collected under this subsection
2on the sale of a motor vehicle in this State to a resident of
3another state if that motor vehicle will not be titled in this
4State.
5    Nothing in this Section shall be construed to authorize the
6Metro East Mass Transit District to impose a tax upon the
7privilege of engaging in any business which under the
8Constitution of the United States may not be made the subject
9of taxation by this State.
10    (c) If a tax has been imposed under subsection (b), a Metro
11East Mass Transit District Service Occupation Tax shall also be
12imposed upon all persons engaged, in the district, in the
13business of making sales of service, who, as an incident to
14making those sales of service, transfer tangible personal
15property within the District, either in the form of tangible
16personal property or in the form of real estate as an incident
17to a sale of service. The tax rate shall be 1/4%, or as
18authorized under subsection (d-5) of this Section, of the
19selling price of tangible personal property so transferred
20within the district. The tax imposed under this paragraph and
21all civil penalties that may be assessed as an incident thereof
22shall be collected and enforced by the State Department of
23Revenue. The Department shall have full power to administer and
24enforce this paragraph; to collect all taxes and penalties due
25hereunder; to dispose of taxes and penalties so collected in
26the manner hereinafter provided; and to determine all rights to

 

 

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1credit memoranda arising on account of the erroneous payment of
2tax or penalty hereunder. In the administration of, and
3compliance with this paragraph, the Department and persons who
4are subject to this paragraph shall have the same rights,
5remedies, privileges, immunities, powers and duties, and be
6subject to the same conditions, restrictions, limitations,
7penalties, exclusions, exemptions and definitions of terms and
8employ the same modes of procedure as are prescribed in
9Sections 1a-1, 2 (except that the reference to State in the
10definition of supplier maintaining a place of business in this
11State shall mean the Authority), 2a, 3 through 3-50 (in respect
12to all provisions therein other than the State rate of tax), 4
13(except that the reference to the State shall be to the
14Authority), 5, 7, 8 (except that the jurisdiction to which the
15tax shall be a debt to the extent indicated in that Section 8
16shall be the District), 9 (except as to the disposition of
17taxes and penalties collected, and except that the returned
18merchandise credit for this tax may not be taken against any
19State tax), 10, 11, 12 (except the reference therein to Section
202b of the Retailers' Occupation Tax Act), 13 (except that any
21reference to the State shall mean the District), the first
22paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
23Occupation Tax Act and Section 3-7 of the Uniform Penalty and
24Interest Act, as fully as if those provisions were set forth
25herein.
26    Persons subject to any tax imposed under the authority

 

 

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1granted in this paragraph may reimburse themselves for their
2serviceman's tax liability hereunder by separately stating the
3tax as an additional charge, which charge may be stated in
4combination, in a single amount, with State tax that servicemen
5are authorized to collect under the Service Use Tax Act, in
6accordance with such bracket schedules as the Department may
7prescribe.
8    Whenever the Department determines that a refund should be
9made under this paragraph to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the warrant to be drawn for the
12amount specified, and to the person named, in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the Metro East Mass Transit District tax fund
15established under paragraph (h) of this Section.
16    Nothing in this paragraph shall be construed to authorize
17the District to impose a tax upon the privilege of engaging in
18any business which under the Constitution of the United States
19may not be made the subject of taxation by the State.
20    (d) If a tax has been imposed under subsection (b), a Metro
21East Mass Transit District Use Tax shall also be imposed upon
22the privilege of using, in the district, any item of tangible
23personal property that is purchased outside the district at
24retail from a retailer, and that is titled or registered with
25an agency of this State's government, at a rate of 1/4%, or as
26authorized under subsection (d-5) of this Section, of the

 

 

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1selling price of the tangible personal property within the
2District, as "selling price" is defined in the Use Tax Act. The
3tax shall be collected from persons whose Illinois address for
4titling or registration purposes is given as being in the
5District. The tax shall be collected by the Department of
6Revenue for the Metro East Mass Transit District. The tax must
7be paid to the State, or an exemption determination must be
8obtained from the Department of Revenue, before the title or
9certificate of registration for the property may be issued. The
10tax or proof of exemption may be transmitted to the Department
11by way of the State agency with which, or the State officer
12with whom, the tangible personal property must be titled or
13registered if the Department and the State agency or State
14officer determine that this procedure will expedite the
15processing of applications for title or registration.
16    The Department shall have full power to administer and
17enforce this paragraph; to collect all taxes, penalties and
18interest due hereunder; to dispose of taxes, penalties and
19interest so collected in the manner hereinafter provided; and
20to determine all rights to credit memoranda or refunds arising
21on account of the erroneous payment of tax, penalty or interest
22hereunder. In the administration of, and compliance with, this
23paragraph, the Department and persons who are subject to this
24paragraph shall have the same rights, remedies, privileges,
25immunities, powers and duties, and be subject to the same
26conditions, restrictions, limitations, penalties, exclusions,

 

 

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1exemptions and definitions of terms and employ the same modes
2of procedure, as are prescribed in Sections 2 (except the
3definition of "retailer maintaining a place of business in this
4State"), 3 through 3-80 (except provisions pertaining to the
5State rate of tax, and except provisions concerning collection
6or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
719 (except the portions pertaining to claims by retailers and
8except the last paragraph concerning refunds), 20, 21 and 22 of
9the Use Tax Act and Section 3-7 of the Uniform Penalty and
10Interest Act, that are not inconsistent with this paragraph, as
11fully as if those provisions were set forth herein.
12    Whenever the Department determines that a refund should be
13made under this paragraph to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the order to be drawn for the
16amount specified, and to the person named, in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the Metro East Mass Transit District tax fund
19established under paragraph (h) of this Section.
20    (d-5) (A) The county board of any county participating in
21the Metro East Mass Transit District may authorize, by
22ordinance, a referendum on the question of whether the tax
23rates for the Metro East Mass Transit District Retailers'
24Occupation Tax, the Metro East Mass Transit District Service
25Occupation Tax, and the Metro East Mass Transit District Use
26Tax for the District should be increased from 0.25% to 0.75%.

 

 

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1Upon adopting the ordinance, the county board shall certify the
2proposition to the proper election officials who shall submit
3the proposition to the voters of the District at the next
4election, in accordance with the general election law.
5    The proposition shall be in substantially the following
6form:
7        Shall the tax rates for the Metro East Mass Transit
8    District Retailers' Occupation Tax, the Metro East Mass
9    Transit District Service Occupation Tax, and the Metro East
10    Mass Transit District Use Tax be increased from 0.25% to
11    0.75%?
12    (B) Two thousand five hundred electors of any Metro East
13Mass Transit District may petition the Chief Judge of the
14Circuit Court, or any judge of that Circuit designated by the
15Chief Judge, in which that District is located to cause to be
16submitted to a vote of the electors the question whether the
17tax rates for the Metro East Mass Transit District Retailers'
18Occupation Tax, the Metro East Mass Transit District Service
19Occupation Tax, and the Metro East Mass Transit District Use
20Tax for the District should be increased from 0.25% to 0.75%.
21    Upon submission of such petition the court shall set a date
22not less than 10 nor more than 30 days thereafter for a hearing
23on the sufficiency thereof. Notice of the filing of such
24petition and of such date shall be given in writing to the
25District and the County Clerk at least 7 days before the date
26of such hearing.

 

 

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1    If such petition is found sufficient, the court shall enter
2an order to submit that proposition at the next election, in
3accordance with general election law.
4    The form of the petition shall be in substantially the
5following form: To the Circuit Court of the County of (name of
6county):
7        We, the undersigned electors of the (name of transit
8    district), respectfully petition your honor to submit to a
9    vote of the electors of (name of transit district) the
10    following proposition:
11        Shall the tax rates for the Metro East Mass Transit
12    District Retailers' Occupation Tax, the Metro East Mass
13    Transit District Service Occupation Tax, and the Metro East
14    Mass Transit District Use Tax be increased from 0.25% to
15    0.75%?
16        Name                Address, with Street and Number.
17..............................................................
18..............................................................
19    (C) The votes shall be recorded as "YES" or "NO". If a
20majority of all votes cast on the proposition are for the
21increase in the tax rates, the Metro East Mass Transit District
22shall begin imposing the increased rates in the District, and
23the Department of Revenue shall begin collecting the increased
24amounts, as provided under this Section. An ordinance imposing
25or discontinuing a tax hereunder or effecting a change in the
26rate thereof shall be adopted and a certified copy thereof

 

 

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1filed with the Department on or before the first day of
2October, whereupon the Department shall proceed to administer
3and enforce this Section as of the first day of January next
4following the adoption and filing, or on or before the first
5day of April, whereupon the Department shall proceed to
6administer and enforce this Section as of the first day of July
7next following the adoption and filing.
8    (D) If the voters have approved a referendum under this
9subsection, before November 1, 1994, to increase the tax rate
10under this subsection, the Metro East Mass Transit District
11Board of Trustees may adopt by a majority vote an ordinance at
12any time before January 1, 1995 that excludes from the rate
13increase tangible personal property that is titled or
14registered with an agency of this State's government. The
15ordinance excluding titled or registered tangible personal
16property from the rate increase must be filed with the
17Department at least 15 days before its effective date. At any
18time after adopting an ordinance excluding from the rate
19increase tangible personal property that is titled or
20registered with an agency of this State's government, the Metro
21East Mass Transit District Board of Trustees may adopt an
22ordinance applying the rate increase to that tangible personal
23property. The ordinance shall be adopted, and a certified copy
24of that ordinance shall be filed with the Department, on or
25before October 1, whereupon the Department shall proceed to
26administer and enforce the rate increase against tangible

 

 

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1personal property titled or registered with an agency of this
2State's government as of the following January 1. After
3December 31, 1995, any reimposed rate increase in effect under
4this subsection shall no longer apply to tangible personal
5property titled or registered with an agency of this State's
6government. Beginning January 1, 1996, the Board of Trustees of
7any Metro East Mass Transit District may never reimpose a
8previously excluded tax rate increase on tangible personal
9property titled or registered with an agency of this State's
10government. After July 1, 2004, if the voters have approved a
11referendum under this subsection to increase the tax rate under
12this subsection, the Metro East Mass Transit District Board of
13Trustees may adopt by a majority vote an ordinance that
14excludes from the rate increase tangible personal property that
15is titled or registered with an agency of this State's
16government. The ordinance excluding titled or registered
17tangible personal property from the rate increase shall be
18adopted, and a certified copy of that ordinance shall be filed
19with the Department on or before October 1, whereupon the
20Department shall administer and enforce this exclusion from the
21rate increase as of the following January 1, or on or before
22April 1, whereupon the Department shall administer and enforce
23this exclusion from the rate increase as of the following July
241. The Board of Trustees of any Metro East Mass Transit
25District may never reimpose a previously excluded tax rate
26increase on tangible personal property titled or registered

 

 

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1with an agency of this State's government.
2    (d-6) If the Board of Trustees of any Metro East Mass
3Transit District has imposed a rate increase under subsection
4(d-5) and filed an ordinance with the Department of Revenue
5excluding titled property from the higher rate, then that Board
6may, by ordinance adopted with the concurrence of two-thirds of
7the then trustees, impose throughout the District a fee. The
8fee on the excluded property shall not exceed $20 per retail
9transaction or an amount equal to the amount of tax excluded,
10whichever is less, on tangible personal property that is titled
11or registered with an agency of this State's government.
12Beginning July 1, 2004, the fee shall apply only to titled
13property that is subject to either the Metro East Mass Transit
14District Retailers' Occupation Tax or the Metro East Mass
15Transit District Service Occupation Tax. No fee shall be
16imposed or collected under this subsection on the sale of a
17motor vehicle in this State to a resident of another state if
18that motor vehicle will not be titled in this State.
19    (d-7) Until June 30, 2004, if a fee has been imposed under
20subsection (d-6), a fee shall also be imposed upon the
21privilege of using, in the district, any item of tangible
22personal property that is titled or registered with any agency
23of this State's government, in an amount equal to the amount of
24the fee imposed under subsection (d-6).
25    (d-7.1) Beginning July 1, 2004, any fee imposed by the
26Board of Trustees of any Metro East Mass Transit District under

 

 

HB0270- 88 -LRB101 05409 HLH 50423 b

1subsection (d-6) and all civil penalties that may be assessed
2as an incident of the fees shall be collected and enforced by
3the State Department of Revenue. Reference to "taxes" in this
4Section shall be construed to apply to the administration,
5payment, and remittance of all fees under this Section. For
6purposes of any fee imposed under subsection (d-6), 4% of the
7fee, penalty, and interest received by the Department in the
8first 12 months that the fee is collected and enforced by the
9Department and 2% of the fee, penalty, and interest following
10the first 12 months shall be deposited into the Tax Compliance
11and Administration Fund and shall be used by the Department,
12subject to appropriation, to cover the costs of the Department.
13No retailers' discount shall apply to any fee imposed under
14subsection (d-6).
15    (d-8) No item of titled property shall be subject to both
16the higher rate approved by referendum, as authorized under
17subsection (d-5), and any fee imposed under subsection (d-6) or
18(d-7).
19    (d-9) (Blank).
20    (d-10) (Blank).
21    (e) A certificate of registration issued by the State
22Department of Revenue to a retailer under the Retailers'
23Occupation Tax Act or under the Service Occupation Tax Act
24shall permit the registrant to engage in a business that is
25taxed under the tax imposed under paragraphs (b), (c) or (d) of
26this Section and no additional registration shall be required

 

 

HB0270- 89 -LRB101 05409 HLH 50423 b

1under the tax. A certificate issued under the Use Tax Act or
2the Service Use Tax Act shall be applicable with regard to any
3tax imposed under paragraph (c) of this Section.
4    (f) (Blank).
5    (g) Any ordinance imposing or discontinuing any tax under
6this Section shall be adopted and a certified copy thereof
7filed with the Department on or before June 1, whereupon the
8Department of Revenue shall proceed to administer and enforce
9this Section on behalf of the Metro East Mass Transit District
10as of September 1 next following such adoption and filing.
11Beginning January 1, 1992, an ordinance or resolution imposing
12or discontinuing the tax hereunder shall be adopted and a
13certified copy thereof filed with the Department on or before
14the first day of July, whereupon the Department shall proceed
15to administer and enforce this Section as of the first day of
16October next following such adoption and filing. Beginning
17January 1, 1993, except as provided in subsection (d-5) of this
18Section, an ordinance or resolution imposing or discontinuing
19the tax hereunder shall be adopted and a certified copy thereof
20filed with the Department on or before the first day of
21October, whereupon the Department shall proceed to administer
22and enforce this Section as of the first day of January next
23following such adoption and filing, or, beginning January 1,
242004, on or before the first day of April, whereupon the
25Department shall proceed to administer and enforce this Section
26as of the first day of July next following the adoption and

 

 

HB0270- 90 -LRB101 05409 HLH 50423 b

1filing.
2    (h) Except as provided in subsection (d-7.1), the State
3Department of Revenue shall, upon collecting any taxes as
4provided in this Section, pay the taxes over to the State
5Treasurer as trustee for the District. The taxes shall be held
6in a trust fund outside the State Treasury.
7    As soon as possible after the first day of each month,
8beginning January 1, 2011, upon certification of the Department
9of Revenue, the Comptroller shall order transferred, and the
10Treasurer shall transfer, to the STAR Bonds Revenue Fund the
11local sales tax increment, as defined in the Innovation
12Development and Economy Act, collected under this Section
13during the second preceding calendar month for sales within a
14STAR bond district. The Department shall make this
15certification only if the local mass transit district imposes a
16tax on real property as provided in the definition of "local
17sales taxes" under the Innovation Development and Economy Act.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the State
20Department of Revenue shall prepare and certify to the
21Comptroller of the State of Illinois the amount to be paid to
22the District, which shall be the amount (not including credit
23memoranda) collected under this Section during the second
24preceding calendar month by the Department plus an amount the
25Department determines is necessary to offset any amounts that
26were erroneously paid to a different taxing body, and not

 

 

HB0270- 91 -LRB101 05409 HLH 50423 b

1including any amount equal to the amount of refunds made during
2the second preceding calendar month by the Department on behalf
3of the District, and not including any amount that the
4Department determines is necessary to offset any amounts that
5were payable to a different taxing body but were erroneously
6paid to the District, and less any amounts that are transferred
7to the STAR Bonds Revenue Fund, less 1.5% of the remainder,
8which the Department shall transfer into the Tax Compliance and
9Administration Fund. The Department, at the time of each
10monthly disbursement to the District, shall prepare and certify
11to the State Comptroller the amount to be transferred into the
12Tax Compliance and Administration Fund under this subsection.
13Within 10 days after receipt by the Comptroller of the
14certification of the amount to be paid to the District and the
15Tax Compliance and Administration Fund, the Comptroller shall
16cause an order to be drawn for payment for the amount in
17accordance with the direction in the certification.
18(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
19100-587, eff. 6-4-18.)
 
20    Section 30. The Regional Transportation Authority Act is
21amended by changing Section 4.03 as follows:
 
22    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
23    Sec. 4.03. Taxes.
24    (a) In order to carry out any of the powers or purposes of

 

 

HB0270- 92 -LRB101 05409 HLH 50423 b

1the Authority, the Board may by ordinance adopted with the
2concurrence of 12 of the then Directors, impose throughout the
3metropolitan region any or all of the taxes provided in this
4Section. Except as otherwise provided in this Act, taxes
5imposed under this Section and civil penalties imposed incident
6thereto shall be collected and enforced by the State Department
7of Revenue. The Department shall have the power to administer
8and enforce the taxes and to determine all rights for refunds
9for erroneous payments of the taxes. Nothing in Public Act
1095-708 is intended to invalidate any taxes currently imposed by
11the Authority. The increased vote requirements to impose a tax
12shall only apply to actions taken after January 1, 2008 (the
13effective date of Public Act 95-708).
14    (b) The Board may impose a public transportation tax upon
15all persons engaged in the metropolitan region in the business
16of selling at retail motor fuel for operation of motor vehicles
17upon public highways. The tax shall be at a rate not to exceed
185% of the gross receipts from the sales of motor fuel in the
19course of the business. As used in this Act, the term "motor
20fuel" shall have the same meaning as in the Motor Fuel Tax Law.
21The Board may provide for details of the tax. The provisions of
22any tax shall conform, as closely as may be practicable, to the
23provisions of the Municipal Retailers Occupation Tax Act,
24including without limitation, conformity to penalties with
25respect to the tax imposed and as to the powers of the State
26Department of Revenue to promulgate and enforce rules and

 

 

HB0270- 93 -LRB101 05409 HLH 50423 b

1regulations relating to the administration and enforcement of
2the provisions of the tax imposed, except that reference in the
3Act to any municipality shall refer to the Authority and the
4tax shall be imposed only with regard to receipts from sales of
5motor fuel in the metropolitan region, at rates as limited by
6this Section.
7    (c) In connection with the tax imposed under paragraph (b)
8of this Section the Board may impose a tax upon the privilege
9of using in the metropolitan region motor fuel for the
10operation of a motor vehicle upon public highways, the tax to
11be at a rate not in excess of the rate of tax imposed under
12paragraph (b) of this Section. The Board may provide for
13details of the tax.
14    (d) The Board may impose a motor vehicle parking tax upon
15the privilege of parking motor vehicles at off-street parking
16facilities in the metropolitan region at which a fee is
17charged, and may provide for reasonable classifications in and
18exemptions to the tax, for administration and enforcement
19thereof and for civil penalties and refunds thereunder and may
20provide criminal penalties thereunder, the maximum penalties
21not to exceed the maximum criminal penalties provided in the
22Retailers' Occupation Tax Act. The Authority may collect and
23enforce the tax itself or by contract with any unit of local
24government. The State Department of Revenue shall have no
25responsibility for the collection and enforcement unless the
26Department agrees with the Authority to undertake the

 

 

HB0270- 94 -LRB101 05409 HLH 50423 b

1collection and enforcement. As used in this paragraph, the term
2"parking facility" means a parking area or structure having
3parking spaces for more than 2 vehicles at which motor vehicles
4are permitted to park in return for an hourly, daily, or other
5periodic fee, whether publicly or privately owned, but does not
6include parking spaces on a public street, the use of which is
7regulated by parking meters.
8    (e) The Board may impose a Regional Transportation
9Authority Retailers' Occupation Tax upon all persons engaged in
10the business of selling tangible personal property at retail in
11the metropolitan region. In Cook County the tax rate shall be
121.25% of the gross receipts from sales of food for human
13consumption that is to be consumed off the premises where it is
14sold (other than alcoholic beverages, soft drinks and food that
15has been prepared for immediate consumption) and prescription
16and nonprescription medicines, drugs, medical appliances and
17insulin, urine testing materials, syringes and needles used by
18diabetics, and 1% of the gross receipts from other taxable
19sales made in the course of that business. In DuPage, Kane,
20Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
21of the gross receipts from all taxable sales made in the course
22of that business. The tax imposed under this Section and all
23civil penalties that may be assessed as an incident thereof
24shall be collected and enforced by the State Department of
25Revenue. The Department shall have full power to administer and
26enforce this Section; to collect all taxes and penalties so

 

 

HB0270- 95 -LRB101 05409 HLH 50423 b

1collected in the manner hereinafter provided; and to determine
2all rights to credit memoranda arising on account of the
3erroneous payment of tax or penalty hereunder. In the
4administration of, and compliance with this Section, the
5Department and persons who are subject to this Section shall
6have the same rights, remedies, privileges, immunities, powers
7and duties, and be subject to the same conditions,
8restrictions, limitations, penalties, exclusions, exemptions
9and definitions of terms, and employ the same modes of
10procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
111e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
12therein other than the State rate of tax), 2c, 3 (except as to
13the disposition of taxes and penalties collected), 4, 5, 5a,
145b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
157, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
16and Section 3-7 of the Uniform Penalty and Interest Act, as
17fully as if those provisions were set forth herein.
18    Persons subject to any tax imposed under the authority
19granted in this Section may reimburse themselves for their
20seller's tax liability hereunder by separately stating the tax
21as an additional charge, which charge may be stated in
22combination in a single amount with State taxes that sellers
23are required to collect under the Use Tax Act, under any
24bracket schedules the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this Section to a claimant instead of issuing a

 

 

HB0270- 96 -LRB101 05409 HLH 50423 b

1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the warrant to be drawn for the
3amount specified, and to the person named, in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the Regional Transportation Authority tax fund
6established under paragraph (n) of this Section.
7    If a tax is imposed under this subsection (e), a tax shall
8also be imposed under subsections (f) and (g) of this Section.
9    For the purpose of determining whether a tax authorized
10under this Section is applicable, a retail sale by a producer
11of coal or other mineral mined in Illinois, is a sale at retail
12at the place where the coal or other mineral mined in Illinois
13is extracted from the earth. This paragraph does not apply to
14coal or other mineral when it is delivered or shipped by the
15seller to the purchaser at a point outside Illinois so that the
16sale is exempt under the Federal Constitution as a sale in
17interstate or foreign commerce.
18    No tax shall be imposed or collected under this subsection
19on the sale of a motor vehicle in this State to a resident of
20another state if that motor vehicle will not be titled in this
21State.
22    Nothing in this Section shall be construed to authorize the
23Regional Transportation Authority to impose a tax upon the
24privilege of engaging in any business that under the
25Constitution of the United States may not be made the subject
26of taxation by this State.

 

 

HB0270- 97 -LRB101 05409 HLH 50423 b

1    (f) If a tax has been imposed under paragraph (e), a
2Regional Transportation Authority Service Occupation Tax shall
3also be imposed upon all persons engaged, in the metropolitan
4region in the business of making sales of service, who as an
5incident to making the sales of service, transfer tangible
6personal property within the metropolitan region, either in the
7form of tangible personal property or in the form of real
8estate as an incident to a sale of service. In Cook County, the
9tax rate shall be: (1) 1.25% of the serviceman's cost price of
10food prepared for immediate consumption and transferred
11incident to a sale of service subject to the service occupation
12tax by an entity licensed under the Hospital Licensing Act, the
13Nursing Home Care Act, the Specialized Mental Health
14Rehabilitation Act of 2013, the ID/DD Community Care Act, or
15the MC/DD Act that is located in the metropolitan region; (2)
161.25% of the selling price of food for human consumption that
17is to be consumed off the premises where it is sold (other than
18alcoholic beverages, soft drinks and food that has been
19prepared for immediate consumption) and prescription and
20nonprescription medicines, drugs, medical appliances and
21insulin, urine testing materials, syringes and needles used by
22diabetics; and (3) 1% of the selling price from other taxable
23sales of tangible personal property transferred. In DuPage,
24Kane, Lake, McHenry and Will Counties the rate shall be 0.75%
25of the selling price of all tangible personal property
26transferred.

 

 

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1    The tax imposed under this paragraph and all civil
2penalties that may be assessed as an incident thereof shall be
3collected and enforced by the State Department of Revenue. The
4Department shall have full power to administer and enforce this
5paragraph; to collect all taxes and penalties due hereunder; to
6dispose of taxes and penalties collected in the manner
7hereinafter provided; and to determine all rights to credit
8memoranda arising on account of the erroneous payment of tax or
9penalty hereunder. In the administration of and compliance with
10this paragraph, the Department and persons who are subject to
11this paragraph shall have the same rights, remedies,
12privileges, immunities, powers and duties, and be subject to
13the same conditions, restrictions, limitations, penalties,
14exclusions, exemptions and definitions of terms, and employ the
15same modes of procedure, as are prescribed in Sections 1a-1, 2,
162a, 3 through 3-50 (in respect to all provisions therein other
17than the State rate of tax), 4 (except that the reference to
18the State shall be to the Authority), 5, 7, 8 (except that the
19jurisdiction to which the tax shall be a debt to the extent
20indicated in that Section 8 shall be the Authority), 9 (except
21as to the disposition of taxes and penalties collected, and
22except that the returned merchandise credit for this tax may
23not be taken against any State tax), 10, 11, 12 (except the
24reference therein to Section 2b of the Retailers' Occupation
25Tax Act), 13 (except that any reference to the State shall mean
26the Authority), the first paragraph of Section 15, 16, 17, 18,

 

 

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119 and 20 of the Service Occupation Tax Act and Section 3-7 of
2the Uniform Penalty and Interest Act, as fully as if those
3provisions were set forth herein.
4    Persons subject to any tax imposed under the authority
5granted in this paragraph may reimburse themselves for their
6serviceman's tax liability hereunder by separately stating the
7tax as an additional charge, that charge may be stated in
8combination in a single amount with State tax that servicemen
9are authorized to collect under the Service Use Tax Act, under
10any bracket schedules the Department may prescribe.
11    Whenever the Department determines that a refund should be
12made under this paragraph to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the warrant to be drawn for the
15amount specified, and to the person named in the notification
16from the Department. The refund shall be paid by the State
17Treasurer out of the Regional Transportation Authority tax fund
18established under paragraph (n) of this Section.
19    Nothing in this paragraph shall be construed to authorize
20the Authority to impose a tax upon the privilege of engaging in
21any business that under the Constitution of the United States
22may not be made the subject of taxation by the State.
23    (g) If a tax has been imposed under paragraph (e), a tax
24shall also be imposed upon the privilege of using in the
25metropolitan region, any item of tangible personal property
26that is purchased outside the metropolitan region at retail

 

 

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1from a retailer, and that is titled or registered with an
2agency of this State's government. In Cook County the tax rate
3shall be 1% of the selling price of the tangible personal
4property, as "selling price" is defined in the Use Tax Act. In
5DuPage, Kane, Lake, McHenry and Will counties the tax rate
6shall be 0.75% of the selling price of the tangible personal
7property, as "selling price" is defined in the Use Tax Act. The
8tax shall be collected from persons whose Illinois address for
9titling or registration purposes is given as being in the
10metropolitan region. The tax shall be collected by the
11Department of Revenue for the Regional Transportation
12Authority. The tax must be paid to the State, or an exemption
13determination must be obtained from the Department of Revenue,
14before the title or certificate of registration for the
15property may be issued. The tax or proof of exemption may be
16transmitted to the Department by way of the State agency with
17which, or the State officer with whom, the tangible personal
18property must be titled or registered if the Department and the
19State agency or State officer determine that this procedure
20will expedite the processing of applications for title or
21registration.
22    The Department shall have full power to administer and
23enforce this paragraph; to collect all taxes, penalties and
24interest due hereunder; to dispose of taxes, penalties and
25interest collected in the manner hereinafter provided; and to
26determine all rights to credit memoranda or refunds arising on

 

 

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1account of the erroneous payment of tax, penalty or interest
2hereunder. In the administration of and compliance with this
3paragraph, the Department and persons who are subject to this
4paragraph shall have the same rights, remedies, privileges,
5immunities, powers and duties, and be subject to the same
6conditions, restrictions, limitations, penalties, exclusions,
7exemptions and definitions of terms and employ the same modes
8of procedure, as are prescribed in Sections 2 (except the
9definition of "retailer maintaining a place of business in this
10State"), 3 through 3-80 (except provisions pertaining to the
11State rate of tax, and except provisions concerning collection
12or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
1319 (except the portions pertaining to claims by retailers and
14except the last paragraph concerning refunds), 20, 21 and 22 of
15the Use Tax Act, and are not inconsistent with this paragraph,
16as fully as if those provisions were set forth herein.
17    Whenever the Department determines that a refund should be
18made under this paragraph to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified, and to the person named in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the Regional Transportation Authority tax fund
24established under paragraph (n) of this Section.
25    (h) The Authority may impose a replacement vehicle tax of
26$50 on any passenger car as defined in Section 1-157 of the

 

 

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1Illinois Vehicle Code purchased within the metropolitan region
2by or on behalf of an insurance company to replace a passenger
3car of an insured person in settlement of a total loss claim.
4The tax imposed may not become effective before the first day
5of the month following the passage of the ordinance imposing
6the tax and receipt of a certified copy of the ordinance by the
7Department of Revenue. The Department of Revenue shall collect
8the tax for the Authority in accordance with Sections 3-2002
9and 3-2003 of the Illinois Vehicle Code.
10    The Department shall immediately pay over to the State
11Treasurer, ex officio, as trustee, all taxes collected
12hereunder.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to the Authority. The
25amount to be paid to the Authority shall be the amount
26collected hereunder during the second preceding calendar month

 

 

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1by the Department, less any amount determined by the Department
2to be necessary for the payment of refunds, and less any
3amounts that are transferred to the STAR Bonds Revenue Fund.
4Within 10 days after receipt by the Comptroller of the
5disbursement certification to the Authority provided for in
6this Section to be given to the Comptroller by the Department,
7the Comptroller shall cause the orders to be drawn for that
8amount in accordance with the directions contained in the
9certification.
10    (i) The Board may not impose any other taxes except as it
11may from time to time be authorized by law to impose.
12    (j) A certificate of registration issued by the State
13Department of Revenue to a retailer under the Retailers'
14Occupation Tax Act or under the Service Occupation Tax Act
15shall permit the registrant to engage in a business that is
16taxed under the tax imposed under paragraphs (b), (e), (f) or
17(g) of this Section and no additional registration shall be
18required under the tax. A certificate issued under the Use Tax
19Act or the Service Use Tax Act shall be applicable with regard
20to any tax imposed under paragraph (c) of this Section.
21    (k) The provisions of any tax imposed under paragraph (c)
22of this Section shall conform as closely as may be practicable
23to the provisions of the Use Tax Act, including without
24limitation conformity as to penalties with respect to the tax
25imposed and as to the powers of the State Department of Revenue
26to promulgate and enforce rules and regulations relating to the

 

 

HB0270- 104 -LRB101 05409 HLH 50423 b

1administration and enforcement of the provisions of the tax
2imposed. The taxes shall be imposed only on use within the
3metropolitan region and at rates as provided in the paragraph.
4    (l) The Board in imposing any tax as provided in paragraphs
5(b) and (c) of this Section, shall, after seeking the advice of
6the State Department of Revenue, provide means for retailers,
7users or purchasers of motor fuel for purposes other than those
8with regard to which the taxes may be imposed as provided in
9those paragraphs to receive refunds of taxes improperly paid,
10which provisions may be at variance with the refund provisions
11as applicable under the Municipal Retailers Occupation Tax Act.
12The State Department of Revenue may provide for certificates of
13registration for users or purchasers of motor fuel for purposes
14other than those with regard to which taxes may be imposed as
15provided in paragraphs (b) and (c) of this Section to
16facilitate the reporting and nontaxability of the exempt sales
17or uses.
18    (m) Any ordinance imposing or discontinuing any tax under
19this Section shall be adopted and a certified copy thereof
20filed with the Department on or before June 1, whereupon the
21Department of Revenue shall proceed to administer and enforce
22this Section on behalf of the Regional Transportation Authority
23as of September 1 next following such adoption and filing.
24Beginning January 1, 1992, an ordinance or resolution imposing
25or discontinuing the tax hereunder shall be adopted and a
26certified copy thereof filed with the Department on or before

 

 

HB0270- 105 -LRB101 05409 HLH 50423 b

1the first day of July, whereupon the Department shall proceed
2to administer and enforce this Section as of the first day of
3October next following such adoption and filing. Beginning
4January 1, 1993, an ordinance or resolution imposing,
5increasing, decreasing, or discontinuing the tax hereunder
6shall be adopted and a certified copy thereof filed with the
7Department, whereupon the Department shall proceed to
8administer and enforce this Section as of the first day of the
9first month to occur not less than 60 days following such
10adoption and filing. Any ordinance or resolution of the
11Authority imposing a tax under this Section and in effect on
12August 1, 2007 shall remain in full force and effect and shall
13be administered by the Department of Revenue under the terms
14and conditions and rates of tax established by such ordinance
15or resolution until the Department begins administering and
16enforcing an increased tax under this Section as authorized by
17Public Act 95-708. The tax rates authorized by Public Act
1895-708 are effective only if imposed by ordinance of the
19Authority.
20    (n) Except as otherwise provided in this subsection (n),
21the State Department of Revenue shall, upon collecting any
22taxes as provided in this Section, pay the taxes over to the
23State Treasurer as trustee for the Authority. The taxes shall
24be held in a trust fund outside the State Treasury. On or
25before the 25th day of each calendar month, the State
26Department of Revenue shall prepare and certify to the

 

 

HB0270- 106 -LRB101 05409 HLH 50423 b

1Comptroller of the State of Illinois and to the Authority (i)
2the amount of taxes collected in each County other than Cook
3County in the metropolitan region, (ii) the amount of taxes
4collected within the City of Chicago, and (iii) the amount
5collected in that portion of Cook County outside of Chicago,
6each amount less the amount necessary for the payment of
7refunds to taxpayers located in those areas described in items
8(i), (ii), and (iii), and less 1.5% of the remainder, which
9shall be transferred from the trust fund into the Tax
10Compliance and Administration Fund. The Department, at the time
11of each monthly disbursement to the Authority, shall prepare
12and certify to the State Comptroller the amount to be
13transferred into the Tax Compliance and Administration Fund
14under this subsection. Within 10 days after receipt by the
15Comptroller of the certification of the amounts, the
16Comptroller shall cause an order to be drawn for the transfer
17of the amount certified into the Tax Compliance and
18Administration Fund and the payment of two-thirds of the
19amounts certified in item (i) of this subsection to the
20Authority and one-third of the amounts certified in item (i) of
21this subsection to the respective counties other than Cook
22County and the amount certified in items (ii) and (iii) of this
23subsection to the Authority.
24    In addition to the disbursement required by the preceding
25paragraph, an allocation shall be made in July 1991 and each
26year thereafter to the Regional Transportation Authority. The

 

 

HB0270- 107 -LRB101 05409 HLH 50423 b

1allocation shall be made in an amount equal to the average
2monthly distribution during the preceding calendar year
3(excluding the 2 months of lowest receipts) and the allocation
4shall include the amount of average monthly distribution from
5the Regional Transportation Authority Occupation and Use Tax
6Replacement Fund. The distribution made in July 1992 and each
7year thereafter under this paragraph and the preceding
8paragraph shall be reduced by the amount allocated and
9disbursed under this paragraph in the preceding calendar year.
10The Department of Revenue shall prepare and certify to the
11Comptroller for disbursement the allocations made in
12accordance with this paragraph.
13    (o) Failure to adopt a budget ordinance or otherwise to
14comply with Section 4.01 of this Act or to adopt a Five-year
15Capital Program or otherwise to comply with paragraph (b) of
16Section 2.01 of this Act shall not affect the validity of any
17tax imposed by the Authority otherwise in conformity with law.
18    (p) At no time shall a public transportation tax or motor
19vehicle parking tax authorized under paragraphs (b), (c) and
20(d) of this Section be in effect at the same time as any
21retailers' occupation, use or service occupation tax
22authorized under paragraphs (e), (f) and (g) of this Section is
23in effect.
24    Any taxes imposed under the authority provided in
25paragraphs (b), (c) and (d) shall remain in effect only until
26the time as any tax authorized by paragraphs (e), (f) or (g) of

 

 

HB0270- 108 -LRB101 05409 HLH 50423 b

1this Section are imposed and becomes effective. Once any tax
2authorized by paragraphs (e), (f) or (g) is imposed the Board
3may not reimpose taxes as authorized in paragraphs (b), (c) and
4(d) of the Section unless any tax authorized by paragraphs (e),
5(f) or (g) of this Section becomes ineffective by means other
6than an ordinance of the Board.
7    (q) Any existing rights, remedies and obligations
8(including enforcement by the Regional Transportation
9Authority) arising under any tax imposed under paragraphs (b),
10(c) or (d) of this Section shall not be affected by the
11imposition of a tax under paragraphs (e), (f) or (g) of this
12Section.
13    (r) Subject to the limitations set forth in this Section,
14the Board may require any retailer that qualifies as a
15"retailer maintaining a place of business in this State" under
16Section 2 of the Use Tax Act to collect and remit the
17retailers' occupation tax, service occupation tax, and use tax
18imposed under this Section. A sale is deemed to have occurred
19in the metropolitan region if the retailer is engaged in the
20business of selling tangible personal property in the
21metropolitan region with respect to that sale, as provided in
22Section 2-12 of the Retailers' Occupation Tax Act.
23(Source: P.A. 99-180, eff. 7-29-15; 99-217, eff. 7-31-15;
2499-642, eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff.
256-4-18.)