101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4414

 

Introduced 2/3/2020, by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20
55 ILCS 5/5-1006  from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.8
55 ILCS 5/5-1007  from Ch. 34, par. 5-1007
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 5/8-11-1.4  from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-1.6
65 ILCS 5/8-11-1.7
65 ILCS 5/8-11-5  from Ch. 24, par. 8-11-5
65 ILCS 5/8-11-23
70 ILCS 1605/30
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
70 ILCS 3720/4  from Ch. 111 2/3, par. 254

    Amends the State Finance Act, Counties Code, Illinois Municipal Code, Metro-East Park and Recreation District Act, Local Mass Transit District Act, Regional Transportation Authority Act, and Water Commission Act of 1985. Provides that the amounts transferred into the Tax Compliance and Administration Fund shall be reduced from 1.5% to 1%. Effective July 1, 2020.


LRB101 16786 HLH 66179 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4414LRB101 16786 HLH 66179 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 5. The State Finance Act is amended by changing
5Section 6z-20 as follows:
 
6    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
7    Sec. 6z-20. County and Mass Transit District Fund. Of the
8money received from the 6.25% general rate (and, beginning July
91, 2000 and through December 31, 2000, the 1.25% rate on motor
10fuel and gasohol, and beginning on August 6, 2010 through
11August 15, 2010, the 1.25% rate on sales tax holiday items) on
12sales subject to taxation under the Retailers' Occupation Tax
13Act and Service Occupation Tax Act and paid into the County and
14Mass Transit District Fund, distribution to the Regional
15Transportation Authority tax fund, created pursuant to Section
164.03 of the Regional Transportation Authority Act, for deposit
17therein shall be made based upon the retail sales occurring in
18a county having more than 3,000,000 inhabitants. The remainder
19shall be distributed to each county having 3,000,000 or fewer
20inhabitants based upon the retail sales occurring in each such
21county.
22    For the purpose of determining allocation to the local
23government unit, a retail sale by a producer of coal or other

 

 

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1mineral mined in Illinois is a sale at retail at the place
2where the coal or other mineral mined in Illinois is extracted
3from the earth. This paragraph does not apply to coal or other
4mineral when it is delivered or shipped by the seller to the
5purchaser at a point outside Illinois so that the sale is
6exempt under the United States Constitution as a sale in
7interstate or foreign commerce.
8    Of the money received from the 6.25% general use tax rate
9on tangible personal property which is purchased outside
10Illinois at retail from a retailer and which is titled or
11registered by any agency of this State's government and paid
12into the County and Mass Transit District Fund, the amount for
13which Illinois addresses for titling or registration purposes
14are given as being in each county having more than 3,000,000
15inhabitants shall be distributed into the Regional
16Transportation Authority tax fund, created pursuant to Section
174.03 of the Regional Transportation Authority Act. The
18remainder of the money paid from such sales shall be
19distributed to each county based on sales for which Illinois
20addresses for titling or registration purposes are given as
21being located in the county. Any money paid into the Regional
22Transportation Authority Occupation and Use Tax Replacement
23Fund from the County and Mass Transit District Fund prior to
24January 14, 1991, which has not been paid to the Authority
25prior to that date, shall be transferred to the Regional
26Transportation Authority tax fund.

 

 

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1    Whenever the Department determines that a refund of money
2paid into the County and Mass Transit District Fund should be
3made to a claimant instead of issuing a credit memorandum, the
4Department shall notify the State Comptroller, who shall cause
5the order to be drawn for the amount specified, and to the
6person named, in such notification from the Department. Such
7refund shall be paid by the State Treasurer out of the County
8and Mass Transit District Fund.
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 during the second
15preceding calendar month for sales within a STAR bond district
16and deposited into the County and Mass Transit District Fund,
17less 3% of that amount, which shall be transferred into the Tax
18Compliance and Administration Fund and shall be used by the
19Department, subject to appropriation, to cover the costs of the
20Department in administering the Innovation Development and
21Economy Act.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to the Regional
26Transportation Authority and to named counties, the counties to

 

 

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1be those entitled to distribution, as hereinabove provided, of
2taxes or penalties paid to the Department during the second
3preceding calendar month. The amount to be paid to the Regional
4Transportation Authority and each county having 3,000,000 or
5fewer inhabitants shall be the amount (not including credit
6memoranda) collected during the second preceding calendar
7month by the Department and paid into the County and Mass
8Transit District Fund, plus an amount the Department determines
9is necessary to offset any amounts which were erroneously paid
10to a different taxing body, and not including an amount equal
11to the amount of refunds made during the second preceding
12calendar month by the Department, and not including any amount
13which the Department determines is necessary to offset any
14amounts which were payable to a different taxing body but were
15erroneously paid to the Regional Transportation Authority or
16county, and not including any amounts that are transferred to
17the STAR Bonds Revenue Fund, less 1% 1.5% of the amount to be
18paid to the Regional Transportation Authority, which shall be
19transferred into the Tax Compliance and Administration Fund.
20The Department, at the time of each monthly disbursement to the
21Regional Transportation Authority, shall prepare and certify
22to the State Comptroller the amount to be transferred into the
23Tax Compliance and Administration Fund under this Section.
24Within 10 days after receipt, by the Comptroller, of the
25disbursement certification to the Regional Transportation
26Authority, counties, and the Tax Compliance and Administration

 

 

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1Fund provided for in this Section to be given to the
2Comptroller by the Department, the Comptroller shall cause the
3orders to be drawn for the respective amounts in accordance
4with the directions contained in such certification.
5    When certifying the amount of a monthly disbursement to the
6Regional Transportation Authority or to a county under this
7Section, the Department shall increase or decrease that amount
8by an amount necessary to offset any misallocation of previous
9disbursements. The offset amount shall be the amount
10erroneously disbursed within the 6 months preceding the time a
11misallocation is discovered.
12    The provisions directing the distributions from the
13special fund in the State Treasury provided for in this Section
14and from the Regional Transportation Authority tax fund created
15by Section 4.03 of the Regional Transportation Authority Act
16shall constitute an irrevocable and continuing appropriation
17of all amounts as provided herein. The State Treasurer and
18State Comptroller are hereby authorized to make distributions
19as provided in this Section.
20    In construing any development, redevelopment, annexation,
21preannexation or other lawful agreement in effect prior to
22September 1, 1990, which describes or refers to receipts from a
23county or municipal retailers' occupation tax, use tax or
24service occupation tax which now cannot be imposed, such
25description or reference shall be deemed to include the
26replacement revenue for such abolished taxes, distributed from

 

 

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1the County and Mass Transit District Fund or Local Government
2Distributive Fund, as the case may be.
3(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
4    Section 10. The Counties Code is amended by changing
5Sections 5-1006, 5-1006.5, 5-1006.8, and 5-1007 as follows:
 
6    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
7    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
8Law. Any county that is a home rule unit may impose a tax upon
9all persons engaged in the business of selling tangible
10personal property, other than an item of tangible personal
11property titled or registered with an agency of this State's
12government, at retail in the county on the gross receipts from
13such sales made in the course of their business. If imposed,
14this tax shall only be imposed in 1/4% increments. On and after
15September 1, 1991, this additional tax may not be imposed on
16tangible personal property taxed at the 1% rate under the
17Retailers' Occupation Tax Act. Beginning December 1, 2019, this
18tax is not imposed on sales of aviation fuel unless the tax
19revenue is expended for airport-related purposes. If the county
20does not have an airport-related purpose to which it dedicates
21aviation fuel tax revenue, then aviation fuel is excluded from
22the tax. The county must comply with the certification
23requirements for airport-related purposes under Section 2-22
24of the Retailers' Occupation Tax Act. For purposes of this

 

 

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1Section, "airport-related purposes" has the meaning ascribed
2in Section 6z-20.2 of the State Finance Act. This exclusion for
3aviation fuel only applies for so long as the revenue use
4requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
5binding on the county. The changes made to this Section by this
6amendatory Act of the 101st General Assembly are a denial and
7limitation of home rule powers and functions under subsection
8(g) of Section 6 of Article VII of the Illinois Constitution.
9The tax imposed by a home rule county pursuant to this Section
10and all civil penalties that may be assessed as an incident
11thereof shall be collected and enforced by the State Department
12of Revenue. The certificate of registration that is issued by
13the Department to a retailer under the Retailers' Occupation
14Tax Act shall permit the retailer to engage in a business that
15is taxable under any ordinance or resolution enacted pursuant
16to this Section without registering separately with the
17Department under such ordinance or resolution or under this
18Section. The Department shall have full power to administer and
19enforce this Section; to collect all taxes and penalties due
20hereunder; to dispose of taxes and penalties so collected in
21the manner hereinafter provided; and to determine all rights to
22credit memoranda arising on account of the erroneous payment of
23tax or penalty hereunder. In the administration of, and
24compliance with, this Section, the Department and persons who
25are subject to this Section shall have the same rights,
26remedies, privileges, immunities, powers and duties, and be

 

 

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1subject to the same conditions, restrictions, limitations,
2penalties and definitions of terms, and employ the same modes
3of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
41e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
5provisions therein other than the State rate of tax), 3 (except
6as to the disposition of taxes and penalties collected, and
7except that the retailer's discount is not allowed for taxes
8paid on aviation fuel that are subject to the revenue use
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
105a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
116d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax
12Act and Section 3-7 of the Uniform Penalty and Interest Act, as
13fully as if those provisions were set forth herein.
14    No tax may be imposed by a home rule county pursuant to
15this Section unless the county also imposes a tax at the same
16rate pursuant to Section 5-1007.
17    Persons subject to any tax imposed pursuant to the
18authority granted in this Section may reimburse themselves for
19their seller's tax liability hereunder by separately stating
20such tax as an additional charge, which charge may be stated in
21combination, in a single amount, with State tax which sellers
22are required to collect under the Use Tax Act, pursuant to such
23bracket schedules as the Department may prescribe.
24    Whenever the Department determines that a refund should be
25made under this Section to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

 

 

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1Comptroller, who shall cause the order to be drawn for the
2amount specified and to the person named in the notification
3from the Department. The refund shall be paid by the State
4Treasurer out of the home rule county retailers' occupation tax
5fund or the Local Government Aviation Trust Fund, as
6appropriate.
7    Except as otherwise provided in this paragraph, the
8Department shall forthwith pay over to the State Treasurer, ex
9officio, as trustee, all taxes and penalties collected
10hereunder for deposit into the Home Rule County Retailers'
11Occupation Tax Fund. Taxes and penalties collected on aviation
12fuel sold on or after December 1, 2019, shall be immediately
13paid over by the Department to the State Treasurer, ex officio,
14as trustee, for deposit into the Local Government Aviation
15Trust Fund. The Department shall only pay moneys into the Local
16Government Aviation Trust Fund under this Section for so long
17as the revenue use requirements of 49 U.S.C. 47107(b) and 49
18U.S.C. 47133 are binding on the county.
19    As soon as possible after the first day of each month,
20beginning January 1, 2011, upon certification of the Department
21of Revenue, the Comptroller shall order transferred, and the
22Treasurer shall transfer, to the STAR Bonds Revenue Fund the
23local sales tax increment, as defined in the Innovation
24Development and Economy Act, collected under this Section
25during the second preceding calendar month for sales within a
26STAR bond district.

 

 

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1    After the monthly transfer to the STAR Bonds Revenue Fund,
2on or before the 25th day of each calendar month, the
3Department shall prepare and certify to the Comptroller the
4disbursement of stated sums of money to named counties, the
5counties to be those from which retailers have paid taxes or
6penalties hereunder to the Department during the second
7preceding calendar month. The amount to be paid to each county
8shall be the amount (not including credit memoranda and not
9including taxes and penalties collected on aviation fuel sold
10on or after December 1, 2019) collected hereunder during the
11second preceding calendar month by the Department plus an
12amount the Department determines is necessary to offset any
13amounts that were erroneously paid to a different taxing body,
14and not including an amount equal to the amount of refunds made
15during the second preceding calendar month by the Department on
16behalf of such county, and not including any amount which the
17Department determines is necessary to offset any amounts which
18were payable to a different taxing body but were erroneously
19paid to the county, and not including any amounts that are
20transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
21remainder, which the Department shall transfer into the Tax
22Compliance and Administration Fund. The Department, at the time
23of each monthly disbursement to the counties, shall prepare and
24certify to the State Comptroller the amount to be transferred
25into the Tax Compliance and Administration Fund under this
26Section. Within 10 days after receipt, by the Comptroller, of

 

 

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1the disbursement certification to the counties and the Tax
2Compliance and Administration Fund provided for in this Section
3to be given to the Comptroller by the Department, the
4Comptroller shall cause the orders to be drawn for the
5respective amounts in accordance with the directions contained
6in the certification.
7    In addition to the disbursement required by the preceding
8paragraph, an allocation shall be made in March of each year to
9each county that received more than $500,000 in disbursements
10under the preceding paragraph in the preceding calendar year.
11The allocation shall be in an amount equal to the average
12monthly distribution made to each such county under the
13preceding paragraph during the preceding calendar year
14(excluding the 2 months of highest receipts). The distribution
15made in March of each year subsequent to the year in which an
16allocation was made pursuant to this paragraph and the
17preceding paragraph shall be reduced by the amount allocated
18and disbursed under this paragraph in the preceding calendar
19year. The Department shall prepare and certify to the
20Comptroller for disbursement the allocations made in
21accordance with this paragraph.
22    For the purpose of determining the local governmental unit
23whose tax is applicable, a retail sale by a producer of coal or
24other mineral mined in Illinois is a sale at retail at the
25place 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 United States Constitution as a sale in
4interstate or foreign commerce.
5    Nothing in this Section shall be construed to authorize a
6county to impose a tax upon the privilege of engaging in any
7business which under the Constitution of the United States may
8not be made the subject of taxation by this State.
9    An ordinance or resolution imposing or discontinuing a tax
10hereunder or effecting a change in the rate thereof shall be
11adopted and a certified copy thereof filed with the Department
12on or before the first day of June, whereupon the Department
13shall proceed to administer and enforce this Section as of the
14first day of September next following such adoption and filing.
15Beginning January 1, 1992, an ordinance or resolution imposing
16or discontinuing the tax hereunder or effecting a change in the
17rate thereof shall be adopted and a certified copy thereof
18filed with the Department on or before the first day of July,
19whereupon the Department shall proceed to administer and
20enforce this Section as of the first day of October next
21following such adoption and filing. Beginning January 1, 1993,
22an ordinance or resolution imposing or discontinuing the tax
23hereunder or effecting a change in the rate thereof shall be
24adopted and a certified copy thereof filed with the Department
25on or before the first day of October, whereupon the Department
26shall proceed to administer and enforce this Section as of the

 

 

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1first day of January next following such adoption and filing.
2Beginning April 1, 1998, an ordinance or resolution imposing or
3discontinuing the tax hereunder or effecting a change in the
4rate thereof shall either (i) be adopted and a certified copy
5thereof filed with the Department on or before the first day of
6April, whereupon the Department shall proceed to administer and
7enforce this Section as of the first day of July next following
8the adoption and filing; or (ii) be adopted and a certified
9copy thereof filed with the Department on or before the first
10day of October, whereupon the Department shall proceed to
11administer and enforce this Section as of the first day of
12January next following the adoption and filing.
13    When certifying the amount of a monthly disbursement to a
14county under this Section, the Department shall increase or
15decrease such amount by an amount necessary to offset any
16misallocation of previous disbursements. The offset amount
17shall be the amount erroneously disbursed within the previous 6
18months from the time a misallocation is discovered.
19    This Section shall be known and may be cited as the Home
20Rule County Retailers' Occupation Tax Law.
21(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
22100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
237-12-19; 101-604, eff. 12-13-19.)
 
24    (55 ILCS 5/5-1006.5)
25    Sec. 5-1006.5. Special County Retailers' Occupation Tax

 

 

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1For Public Safety, Public Facilities, Mental Health, Substance
2Abuse, or Transportation.
3    (a) The county board of any county may impose a tax upon
4all persons engaged in the business of selling tangible
5personal property, other than personal property titled or
6registered with an agency of this State's government, at retail
7in the county on the gross receipts from the sales made in the
8course of business to provide revenue to be used exclusively
9for public safety, public facility, mental health, substance
10abuse, or transportation purposes in that county (except as
11otherwise provided in this Section), if a proposition for the
12tax has been submitted to the electors of that county and
13approved by a majority of those voting on the question. If
14imposed, this tax shall be imposed only in one-quarter percent
15increments. By resolution, the county board may order the
16proposition to be submitted at any election. If the tax is
17imposed for transportation purposes for expenditures for
18public highways or as authorized under the Illinois Highway
19Code, the county board must publish notice of the existence of
20its long-range highway transportation plan as required or
21described in Section 5-301 of the Illinois Highway Code and
22must make the plan publicly available prior to approval of the
23ordinance or resolution imposing the tax. If the tax is imposed
24for transportation purposes for expenditures for passenger
25rail transportation, the county board must publish notice of
26the existence of its long-range passenger rail transportation

 

 

HB4414- 15 -LRB101 16786 HLH 66179 b

1plan and must make the plan publicly available prior to
2approval of the ordinance or resolution imposing the tax.
3    If a tax is imposed for public facilities purposes, then
4the name of the project may be included in the proposition at
5the discretion of the county board as determined in the
6enabling resolution. For example, the "XXX Nursing Home" or the
7"YYY Museum".
8    The county clerk shall certify the question to the proper
9election authority, who shall submit the proposition at an
10election in accordance with the general election law.
11        (1) The proposition for public safety purposes shall be
12    in substantially the following form:
13        "To pay for public safety purposes, shall (name of
14    county) be authorized to impose an increase on its share of
15    local sales taxes by (insert rate)?"
16        As additional information on the ballot below the
17    question shall appear the following:
18        "This would mean that a consumer would pay an
19    additional (insert amount) in sales tax for every $100 of
20    tangible personal property bought at retail."
21        The county board may also opt to establish a sunset
22    provision at which time the additional sales tax would
23    cease being collected, if not terminated earlier by a vote
24    of the county board. If the county board votes to include a
25    sunset provision, the proposition for public safety
26    purposes shall be in substantially the following form:

 

 

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1        "To pay for public safety purposes, shall (name of
2    county) be authorized to impose an increase on its share of
3    local sales taxes by (insert rate) for a period not to
4    exceed (insert number of years)?"
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. If imposed,
10    the additional tax would cease being collected at the end
11    of (insert number of years), if not terminated earlier by a
12    vote of the county board."
13        For the purposes of the paragraph, "public safety
14    purposes" means crime prevention, detention, fire
15    fighting, police, medical, ambulance, or other emergency
16    services.
17        Votes shall be recorded as "Yes" or "No".
18        Beginning on the January 1 or July 1, whichever is
19    first, that occurs not less than 30 days after May 31, 2015
20    (the effective date of Public Act 99-4), Adams County may
21    impose a public safety retailers' occupation tax and
22    service occupation tax at the rate of 0.25%, as provided in
23    the referendum approved by the voters on April 7, 2015,
24    notwithstanding the omission of the additional information
25    that is otherwise required to be printed on the ballot
26    below the question pursuant to this item (1).

 

 

HB4414- 17 -LRB101 16786 HLH 66179 b

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

 

 

HB4414- 18 -LRB101 16786 HLH 66179 b

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

 

 

HB4414- 19 -LRB101 16786 HLH 66179 b

1    county) be authorized to impose an increase on its share of
2    local sales taxes by (insert rate) for a period not to
3    exceed (insert number of years)?"
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. If imposed,
9    the additional tax would cease being collected at the end
10    of (insert number of years), if not terminated earlier by a
11    vote of the county board."
12        For purposes of this Section, "public facilities
13    purposes" means the acquisition, development,
14    construction, reconstruction, rehabilitation, improvement,
15    financing, architectural planning, and installation of
16    capital facilities consisting of buildings, structures,
17    and durable equipment and for the acquisition and
18    improvement of real property and interest in real property
19    required, or expected to be required, in connection with
20    the public facilities, for use by the county for the
21    furnishing of governmental services to its citizens,
22    including, but not limited to, museums and nursing homes.
23        The votes shall be recorded as "Yes" or "No".
24        (4) The proposition for mental health purposes shall be
25    in substantially the following form:
26        "To pay for mental health purposes, shall (name of

 

 

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

 

 

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

 

 

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1    of (insert number of years), if not terminated earlier by a
2    vote of the county board."
3        The votes shall be recorded as "Yes" or "No".
4    If a majority of the electors voting on the proposition
5vote in favor of it, the county may impose the tax. A county
6may not submit more than one proposition authorized by this
7Section to the electors at any one time.
8    This additional tax may not be imposed on tangible personal
9property taxed at the 1% rate under the Retailers' Occupation
10Tax Act. Beginning December 1, 2019 and through December 31,
112020, this tax is not imposed on sales of aviation fuel unless
12the tax revenue is expended for airport-related purposes. If
13the county does not have an airport-related purpose to which it
14dedicates aviation fuel tax revenue, then aviation fuel is
15excluded from the tax. The county must comply with the
16certification requirements for airport-related purposes under
17Section 2-22 of the Retailers' Occupation Tax Act. For purposes
18of this Section, "airport-related purposes" has the meaning
19ascribed in Section 6z-20.2 of the State Finance Act. Beginning
20January 1, 2021, this tax is not imposed on sales of aviation
21fuel for so long as the revenue use requirements of 49 U.S.C.
2247107(b) and 49 U.S.C. 47133 are binding on the county. The tax
23imposed by a county under this Section and all civil penalties
24that may be assessed as an incident of the tax shall be
25collected and enforced by the Illinois Department of Revenue
26and deposited into a special fund created for that purpose. The

 

 

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1certificate of registration that is issued by the Department to
2a retailer under the Retailers' Occupation Tax Act shall permit
3the retailer to engage in a business that is taxable without
4registering separately with the Department under an ordinance
5or resolution under this Section. The Department has full power
6to administer and enforce this Section, to collect all taxes
7and penalties due under this Section, to dispose of taxes and
8penalties so collected in the manner provided in this Section,
9and to determine all rights to credit memoranda arising on
10account of the erroneous payment of a tax or penalty under this
11Section. In the administration of and compliance with this
12Section, the Department and persons who are subject to this
13Section shall (i) have the same rights, remedies, privileges,
14immunities, powers, and duties, (ii) be subject to the same
15conditions, restrictions, limitations, penalties, and
16definitions of terms, and (iii) employ the same modes of
17procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
181f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
19provisions contained in those Sections other than the State
20rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
21transaction returns and quarter monthly payments, and except
22that the retailer's discount is not allowed for taxes paid on
23aviation fuel that are deposited into the Local Government
24Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
255j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
26of the Retailers' Occupation Tax Act and Section 3-7 of the

 

 

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1Uniform Penalty and Interest Act as if those provisions were
2set forth in this Section.
3    Persons subject to any tax imposed under the authority
4granted in this Section may reimburse themselves for their
5sellers' tax liability by separately stating the tax as an
6additional charge, which charge may be stated in combination,
7in a single amount, with State tax which sellers are required
8to collect under the Use Tax Act, pursuant to such bracketed
9schedules as the Department may prescribe.
10    Whenever the Department determines that a refund should be
11made under this Section to a claimant instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the order to be drawn for the
14amount specified and to the person named in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of the County Public Safety, Public Facilities,
17Mental Health, Substance Abuse, or Transportation Retailers'
18Occupation Tax Fund or the Local Government Aviation Trust
19Fund, as appropriate.
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 tangible personal property taxed at the 1%

 

 

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1rate under the Service Occupation Tax Act. Beginning December
21, 2019 and through December 31, 2020, this tax is not imposed
3on sales of aviation fuel unless the tax revenue is expended
4for airport-related purposes. If the county does not have an
5airport-related purpose to which it dedicates aviation fuel tax
6revenue, then aviation fuel is excluded from the tax. The
7county must comply with the certification requirements for
8airport-related purposes under Section 2-22 of the Retailers'
9Occupation Tax Act. For purposes of this Section,
10"airport-related purposes" has the meaning ascribed in Section
116z-20.2 of the State Finance Act. Beginning January 1, 2021,
12this tax is not imposed on sales of aviation fuel for so long
13as the revenue use requirements of 49 U.S.C. 47107(b) and 49
14U.S.C. 47133 are binding on the county. The tax imposed under
15this subsection and all civil penalties that may be assessed as
16an incident thereof shall be collected and enforced by the
17Department of Revenue. The Department has full power to
18administer and enforce this subsection; to collect all taxes
19and penalties due hereunder; to dispose of taxes and penalties
20so collected in the manner hereinafter provided; and to
21determine all rights to credit memoranda arising on account of
22the erroneous payment of tax or penalty hereunder. In the
23administration of and compliance with this subsection, the
24Department and persons who are subject to this paragraph shall
25(i) have the same rights, remedies, privileges, immunities,
26powers, and duties, (ii) be subject to the same conditions,

 

 

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1restrictions, limitations, penalties, exclusions, exemptions,
2and definitions of terms, and (iii) employ the same modes of
3procedure as are prescribed in Sections 2 (except that the
4reference to State in the definition of supplier maintaining a
5place of business in this State shall mean the county), 2a, 2b,
62c, 3 through 3-50 (in respect to all provisions therein other
7than the State rate of tax), 4 (except that the reference to
8the State shall be to the county), 5, 7, 8 (except that the
9jurisdiction to which the tax shall be a debt to the extent
10indicated in that Section 8 shall be the county), 9 (except as
11to the disposition of taxes and penalties collected, and except
12that the retailer's discount is not allowed for taxes paid on
13aviation fuel that are deposited into the Local Government
14Aviation Trust Fund), 10, 11, 12 (except the reference therein
15to Section 2b of the Retailers' Occupation Tax Act), 13 (except
16that any reference to the State shall mean the county), Section
1715, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act,
18and Section 3-7 of the Uniform Penalty and Interest Act, as
19fully as if those provisions were set forth herein.
20    Persons subject to any tax imposed under the authority
21granted in this subsection may reimburse themselves for their
22serviceman's tax liability by separately stating the tax as an
23additional charge, which charge may be stated in combination,
24in a single amount, with State tax that servicemen are
25authorized to collect under the Service Use Tax Act, in
26accordance with such bracket schedules as the Department may

 

 

HB4414- 27 -LRB101 16786 HLH 66179 b

1prescribe.
2    Whenever the Department determines that a refund should be
3made under this subsection to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the warrant to be drawn for the
6amount specified, and to the person named, in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the County Public Safety, Public Facilities,
9Mental Health, Substance Abuse, or Transportation Retailers'
10Occupation Fund or the Local Government Aviation Trust Fund, as
11appropriate.
12    Nothing in this subsection shall be construed to authorize
13the county to impose a tax upon the privilege of engaging in
14any business which under the Constitution of the United States
15may not be made the subject of taxation by the State.
16    (c) Except as otherwise provided in this paragraph, the
17Department shall immediately pay over to the State Treasurer,
18ex officio, as trustee, all taxes and penalties collected under
19this Section to be deposited into the County Public Safety,
20Public Facilities, Mental Health, Substance Abuse, or
21Transportation Retailers' Occupation Tax Fund, which shall be
22an unappropriated trust fund held outside of the State
23treasury. Taxes and penalties collected on aviation fuel sold
24on or after December 1, 2019 and through December 31, 2020,
25shall be immediately paid over by the Department to the State
26Treasurer, ex officio, as trustee, for deposit into the Local

 

 

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1Government Aviation Trust Fund. The Department shall only pay
2moneys into the Local Government Aviation Trust Fund under this
3Act for so long as the revenue use requirements of 49 U.S.C.
447107(b) and 49 U.S.C. 47133 are binding on the county.
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 the counties from which
17retailers have paid taxes or penalties to the Department during
18the second preceding calendar month. The amount to be paid to
19each county, and deposited by the county into its special fund
20created for the purposes of this Section, shall be the amount
21(not including credit memoranda and not including taxes and
22penalties collected on aviation fuel sold on or after December
231, 2019 and through December 31, 2020) collected under this
24Section 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

 

 

HB4414- 29 -LRB101 16786 HLH 66179 b

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

 

 

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1(excluding the 2 months of highest receipts). The distribution
2made in March of each year subsequent to the year in which an
3allocation was made pursuant to this paragraph and the
4preceding paragraph shall be reduced by the amount allocated
5and disbursed under this paragraph in the preceding calendar
6year. The Department shall prepare and certify to the
7Comptroller for disbursement the allocations made in
8accordance with this paragraph.
9    (d) For the purpose of determining the local governmental
10unit whose tax is applicable, a retail sale by a producer of
11coal or another 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 another 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 United States Constitution as a sale
17in interstate or foreign commerce.
18    (e) Nothing in this Section shall be construed to authorize
19a county to impose a tax upon the privilege of engaging in any
20business that under the Constitution of the United States may
21not be made the subject of taxation by this State.
22    (e-5) If a county imposes a tax under this Section, the
23county board may, by ordinance, discontinue or lower the rate
24of the tax. If the county board lowers the tax rate or
25discontinues the tax, a referendum must be held in accordance
26with subsection (a) of this Section in order to increase the

 

 

HB4414- 31 -LRB101 16786 HLH 66179 b

1rate of the tax or to reimpose the discontinued tax.
2    (f) Beginning April 1, 1998 and through December 31, 2013,
3the results of any election authorizing a proposition to impose
4a tax under this Section or effecting a change in the rate of
5tax, or any ordinance lowering the rate or discontinuing the
6tax, shall be certified by the county clerk and filed with the
7Illinois Department of Revenue either (i) on or before the
8first day of April, whereupon the Department shall proceed to
9administer and enforce the tax as of the first day of July next
10following the filing; or (ii) on or before the first day of
11October, whereupon the Department shall proceed to administer
12and enforce the tax as of the first day of January next
13following the filing.
14    Beginning January 1, 2014, the results of any election
15authorizing a proposition to impose a tax under this Section or
16effecting an increase in the rate of tax, along with the
17ordinance adopted to impose the tax or increase the rate of the
18tax, or any ordinance adopted to lower the rate or discontinue
19the tax, shall be certified by the county clerk and filed with
20the Illinois Department of Revenue either (i) on or before the
21first day of May, whereupon the Department shall proceed to
22administer and enforce the tax as of the first day of July next
23following the adoption and filing; or (ii) on or before the
24first day of October, whereupon the Department shall proceed to
25administer and enforce the tax as of the first day of January
26next following the adoption and filing.

 

 

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1    (g) When certifying the amount of a monthly disbursement to
2a county under this Section, the Department shall increase or
3decrease the amounts by an amount necessary to offset any
4miscalculation of previous disbursements. The offset amount
5shall be the amount erroneously disbursed within the previous 6
6months from the time a miscalculation is discovered.
7    (h) This Section may be cited as the "Special County
8Occupation Tax For Public Safety, Public Facilities, Mental
9Health, Substance Abuse, or Transportation Law".
10    (i) For purposes of this Section, "public safety" includes,
11but is not limited to, crime prevention, detention, fire
12fighting, police, medical, ambulance, or other emergency
13services. The county may share tax proceeds received under this
14Section for public safety purposes, including proceeds
15received before August 4, 2009 (the effective date of Public
16Act 96-124), with any fire protection district located in the
17county. For the purposes of this Section, "transportation"
18includes, but is not limited to, the construction, maintenance,
19operation, and improvement of public highways, any other
20purpose for which a county may expend funds under the Illinois
21Highway Code, and passenger rail transportation. For the
22purposes of this Section, "public facilities purposes"
23includes, but is not limited to, the acquisition, development,
24construction, reconstruction, rehabilitation, improvement,
25financing, architectural planning, and installation of capital
26facilities consisting of buildings, structures, and durable

 

 

HB4414- 33 -LRB101 16786 HLH 66179 b

1equipment and for the acquisition and improvement of real
2property and interest in real property required, or expected to
3be required, in connection with the public facilities, for use
4by the county for the furnishing of governmental services to
5its citizens, including, but not limited to, museums and
6nursing homes.
7    (j) The Department may promulgate rules to implement Public
8Act 95-1002 only to the extent necessary to apply the existing
9rules for the Special County Retailers' Occupation Tax for
10Public Safety to this new purpose for public facilities.
11(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
12100-1167, eff. 1-4-19; 100-1171, eff. 1-4-19; 101-10, eff.
136-5-19; 101-81, eff. 7-12-19; 101-275, eff. 8-9-19; 101-604,
14eff. 12-13-19.)
 
15    (55 ILCS 5/5-1006.8)
16    Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
17Law.
18    (a) This Section may be referred to as the County Cannabis
19Retailers' Occupation Tax Law. The corporate authorities of any
20county may, by ordinance, impose a tax upon all persons engaged
21in the business of selling cannabis, other than cannabis
22purchased under the Compassionate Use of Medical Cannabis
23Program Act, at retail in the county on the gross receipts from
24these sales made in the course of that business. If imposed,
25the tax shall be imposed only in 0.25% increments. The tax rate

 

 

HB4414- 34 -LRB101 16786 HLH 66179 b

1may not exceed: (i) 3.75% of the gross receipts of sales made
2in unincorporated areas of the county; and (ii) 3% of the gross
3receipts of sales made in a municipality located in the county.
4The tax imposed under this Section and all civil penalties that
5may be assessed as an incident of the tax shall be collected
6and enforced by the Department of Revenue. The Department of
7Revenue shall have full power to administer and enforce this
8Section; to collect all taxes and penalties due hereunder; to
9dispose of taxes and penalties so collected in the manner
10hereinafter provided; and to determine all rights to credit
11memoranda arising on account of the erroneous payment of tax or
12penalty under this Section. In the administration of and
13compliance with this Section, the Department of Revenue and
14persons who are subject to this Section shall have the same
15rights, remedies, privileges, immunities, powers and duties,
16and be subject to the same conditions, restrictions,
17limitations, penalties, and definitions of terms, and employ
18the same modes of procedure, as are described in Sections 1,
191a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect
20to all provisions therein other than the State rate of tax),
212a, 2b, 2c, 2i, 3 (except as to the disposition of taxes and
22penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
235j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
24of the Retailers' Occupation Tax Act and Section 3-7 of the
25Uniform Penalty and Interest Act as fully as if those
26provisions were set forth in this Section.

 

 

HB4414- 35 -LRB101 16786 HLH 66179 b

1    (b) Persons subject to any tax imposed under the authority
2granted in this Section may reimburse themselves for their
3seller's tax liability hereunder by separately stating that tax
4as an additional charge, which charge may be stated in
5combination, in a single amount, with any State tax that
6sellers are required to collect.
7    (c) Whenever the Department of Revenue determines that a
8refund should be made under this Section to a claimant instead
9of issuing a credit memorandum, the Department of Revenue shall
10notify the State Comptroller, who shall cause the order to be
11drawn for the amount specified and to the person named in the
12notification from the Department of Revenue.
13    (d) The Department of Revenue shall immediately pay over to
14the State Treasurer, ex officio, as trustee, all taxes and
15penalties collected hereunder for deposit into the Local
16Cannabis Retailers' Occupation Tax Trust Fund.
17    (e) On or before the 25th day of each calendar month, the
18Department of Revenue shall prepare and certify to the
19Comptroller the amount of money to be disbursed from the Local
20Cannabis Retailers' Occupation Tax Trust Fund to counties from
21which retailers have paid taxes or penalties under this Section
22during the second preceding calendar month. The amount to be
23paid to each county shall be the amount (not including credit
24memoranda) collected under this Section from sales made in the
25county during the second preceding calendar month, plus an
26amount the Department of Revenue determines is necessary to

 

 

HB4414- 36 -LRB101 16786 HLH 66179 b

1offset any amounts that were erroneously paid to a different
2taxing body, and not including an amount equal to the amount of
3refunds made during the second preceding calendar month by the
4Department on behalf of such county, and not including any
5amount that the Department determines is necessary to offset
6any amounts that were payable to a different taxing body but
7were erroneously paid to the county, less 1% 1.5% of the
8remainder, which the Department shall transfer into the Tax
9Compliance and Administration Fund. The Department, at the time
10of each monthly disbursement to the counties, shall prepare and
11certify the State Comptroller the amount to be transferred into
12the Tax Compliance and Administration Fund under this Section.
13Within 10 days after receipt by the Comptroller of the
14disbursement certification to the counties and the Tax
15Compliance and Administration Fund provided for in this Section
16to be given to the Comptroller by the Department, the
17Comptroller shall cause the orders to be drawn for the
18respective amounts in accordance with the directions contained
19in the certification.
20    (f) An ordinance or resolution imposing or discontinuing a
21tax under this Section or effecting a change in the rate
22thereof that is adopted on or after June 25, 2019 (the
23effective date of Public Act 101-27) and for which a certified
24copy is filed with the Department on or before April 1, 2020
25shall be administered and enforced by the Department beginning
26on July 1, 2020. For ordinances filed with the Department after

 

 

HB4414- 37 -LRB101 16786 HLH 66179 b

1April 1, 2020, an ordinance or resolution imposing or
2discontinuing a tax under this Section or effecting a change in
3the rate thereof shall either (i) be adopted and a certified
4copy thereof filed with the Department 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; or (ii) be adopted and
8a certified copy thereof filed with the Department on or before
9the first day of October, whereupon the Department shall
10proceed to administer and enforce this Section as of the first
11day of January next following the adoption and filing.
12(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
13101-593, eff. 12-4-19.)
 
14    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
15    Sec. 5-1007. Home Rule County Service Occupation Tax Law.
16The corporate authorities of a home rule county may impose a
17tax upon all persons engaged, in such county, in the business
18of making sales of service at the same rate of tax imposed
19pursuant to Section 5-1006 of the selling price of all tangible
20personal property transferred by such servicemen either in the
21form of tangible personal property or in the form of real
22estate as an incident to a sale of service. If imposed, such
23tax shall only be imposed in 1/4% increments. On and after
24September 1, 1991, this additional tax may not be imposed on
25tangible personal property taxed at the 1% rate under the

 

 

HB4414- 38 -LRB101 16786 HLH 66179 b

1Service Occupation Tax Act. Beginning December 1, 2019, this
2tax is not imposed on sales of aviation fuel unless the tax
3revenue is expended for airport-related purposes. If the county
4does not have an airport-related purpose to which it dedicates
5aviation fuel tax revenue, then aviation fuel is excluded from
6the tax. The county must comply with the certification
7requirements for airport-related purposes under Section 2-22
8of the Retailers' Occupation Tax Act. For purposes of this
9Section, "airport-related purposes" has the meaning ascribed
10in Section 6z-20.2 of the State Finance Act. This exclusion for
11aviation fuel only applies for so long as the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
13binding on the county. The changes made to this Section by this
14amendatory Act of the 101st General Assembly are a denial and
15limitation of home rule powers and functions under subsection
16(g) of Section 6 of Article VII of the Illinois Constitution.
17The tax imposed by a home rule county pursuant to this Section
18and all civil penalties that may be assessed as an incident
19thereof shall be collected and enforced by the State Department
20of Revenue. The certificate of registration which is issued by
21the Department to a retailer under the Retailers' Occupation
22Tax Act or under the Service Occupation Tax Act shall permit
23such registrant to engage in a business which is taxable under
24any ordinance or resolution enacted pursuant to this Section
25without registering separately with the Department under such
26ordinance or resolution or under this Section. The Department

 

 

HB4414- 39 -LRB101 16786 HLH 66179 b

1shall have full power to administer and enforce this Section;
2to collect all taxes and penalties due hereunder; to dispose of
3taxes and penalties so collected in the manner hereinafter
4provided; and to determine all rights to credit memoranda
5arising on account of the erroneous payment of tax or penalty
6hereunder. In the administration of, and compliance with, this
7Section the Department and persons who are subject to this
8Section shall have the same rights, remedies, privileges,
9immunities, powers and duties, and be subject to the same
10conditions, restrictions, limitations, penalties and
11definitions of terms, and employ the same modes of procedure,
12as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
13respect to all provisions therein other than the State rate of
14tax), 4 (except that the reference to the State shall be to the
15taxing county), 5, 7, 8 (except that the jurisdiction to which
16the tax shall be a debt to the extent indicated in that Section
178 shall be the taxing county), 9 (except as to the disposition
18of taxes and penalties collected, and except that the returned
19merchandise credit for this county tax may not be taken against
20any State tax, and except that the retailer's discount is not
21allowed for taxes paid on aviation fuel that are subject to the
22revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2347133), 10, 11, 12 (except the reference therein to Section 2b
24of the Retailers' Occupation Tax Act), 13 (except that any
25reference to the State shall mean the taxing county), the first
26paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service

 

 

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1Occupation Tax Act and Section 3-7 of the Uniform Penalty and
2Interest Act, as fully as if those provisions were set forth
3herein.
4    No tax may be imposed by a home rule county pursuant to
5this Section unless such county also imposes a tax at the same
6rate pursuant to Section 5-1006.
7    Persons subject to any tax imposed pursuant to the
8authority granted in this Section may reimburse themselves for
9their serviceman's tax liability hereunder by separately
10stating such tax as an additional charge, which charge may be
11stated in combination, in a single amount, with State tax which
12servicemen are authorized to collect under the Service Use Tax
13Act, pursuant to such bracket schedules as the Department may
14prescribe.
15    Whenever the Department determines that a refund should be
16made under this Section to a claimant instead of issuing credit
17memorandum, the Department shall notify the State Comptroller,
18who shall cause the order to be drawn for the amount specified,
19and to the person named, in such notification from the
20Department. Such refund shall be paid by the State Treasurer
21out of the home rule county retailers' occupation tax fund or
22the Local Government Aviation Trust Fund, as appropriate.
23    Except as otherwise provided in this paragraph, the
24Department shall forthwith pay over to the State Treasurer, ex
25officio, as trustee, all taxes and penalties collected
26hereunder for deposit into the Home Rule County Retailers'

 

 

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1Occupation Tax Fund. Taxes and penalties collected on aviation
2fuel sold on or after December 1, 2019, shall be immediately
3paid over by the Department to the State Treasurer, ex officio,
4as trustee, for deposit into the Local Government Aviation
5Trust Fund. The Department shall only pay moneys into the Local
6Government Aviation Trust Fund under this Section for so long
7as the revenue use requirements of 49 U.S.C. 47107(b) and 49
8U.S.C. 47133 are binding on the county.
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 named counties, the
21counties to be those from which suppliers and servicemen have
22paid taxes or penalties hereunder to the Department during the
23second preceding calendar month. The amount to be paid to each
24county shall be the amount (not including credit memoranda and
25not including taxes and penalties collected on aviation fuel
26sold on or after December 1, 2019) collected hereunder during

 

 

HB4414- 42 -LRB101 16786 HLH 66179 b

1the second preceding calendar month by the Department, and not
2including an amount equal to the amount of refunds made during
3the second preceding calendar month by the Department on behalf
4of such county, and not including any amounts that are
5transferred to the STAR Bonds Revenue Fund, less 1% 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 counties, shall prepare and
9certify to the State Comptroller the amount to be transferred
10into the Tax Compliance and Administration Fund under this
11Section. Within 10 days after receipt, by the Comptroller, of
12the disbursement certification to the counties and the Tax
13Compliance and Administration Fund provided for in this Section
14to be given to the Comptroller by the Department, the
15Comptroller shall cause the orders to be drawn for the
16respective amounts in accordance with the directions contained
17in such certification.
18    In addition to the disbursement required by the preceding
19paragraph, an allocation shall be made in each year to each
20county which received more than $500,000 in disbursements under
21the preceding paragraph in the preceding calendar year. The
22allocation shall be in an amount equal to the average monthly
23distribution made to each such county under the preceding
24paragraph during the preceding calendar year (excluding the 2
25months of highest receipts). The distribution made in March of
26each year subsequent to the year in which an allocation was

 

 

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1made pursuant to this paragraph and the preceding paragraph
2shall be reduced by the amount allocated and disbursed under
3this paragraph in the preceding calendar year. The Department
4shall prepare and certify to the Comptroller for disbursement
5the allocations made in accordance with this paragraph.
6    Nothing in this Section shall be construed to authorize a
7county to impose a tax upon the privilege of engaging in any
8business which under the Constitution of the United States may
9not be made the subject of taxation by this State.
10    An ordinance or resolution imposing or discontinuing a tax
11hereunder or effecting a change in the rate thereof shall be
12adopted and a certified copy thereof filed with the Department
13on or before the first day of June, whereupon the Department
14shall proceed to administer and enforce this Section as of the
15first day of September next following such adoption and filing.
16Beginning January 1, 1992, an ordinance or resolution imposing
17or discontinuing the tax hereunder or effecting a change in the
18rate thereof shall be adopted and a certified copy thereof
19filed with the Department on or before the first day of July,
20whereupon the Department shall proceed to administer and
21enforce this Section as of the first day of October next
22following such adoption and filing. Beginning January 1, 1993,
23an ordinance or resolution imposing or discontinuing the tax
24hereunder or effecting a change in the rate thereof shall be
25adopted and a certified copy thereof filed with the Department
26on or before the first day of October, whereupon the Department

 

 

HB4414- 44 -LRB101 16786 HLH 66179 b

1shall proceed to administer and enforce this Section as of the
2first day of January next following such adoption and filing.
3Beginning April 1, 1998, an ordinance or resolution imposing or
4discontinuing the tax hereunder or effecting a change in the
5rate thereof shall either (i) be adopted and a certified copy
6thereof filed with the Department on or before the first day of
7April, whereupon the Department shall proceed to administer and
8enforce this Section as of the first day of July next following
9the adoption and filing; or (ii) be adopted and a certified
10copy thereof filed with the Department on or before the first
11day of October, whereupon the Department shall proceed to
12administer and enforce this Section as of the first day of
13January next following the adoption and filing.
14    This Section shall be known and may be cited as the Home
15Rule County Service Occupation Tax Law.
16(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
17100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
187-12-19; 101-604, eff. 12-13-19.)
 
19    Section 15. The Illinois Municipal Code is amended by
20changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
218-11-1.7, 8-11-5, and 8-11-23 as follows:
 
22    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
23    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
24Act. The corporate authorities of a home rule municipality may

 

 

HB4414- 45 -LRB101 16786 HLH 66179 b

1impose a tax upon all persons engaged in the business of
2selling tangible personal property, other than an item of
3tangible personal property titled or registered with an agency
4of this State's government, at retail in the municipality on
5the gross receipts from these sales made in the course of such
6business. If imposed, the tax shall only be imposed in 1/4%
7increments. On and after September 1, 1991, this additional tax
8may not be imposed on tangible personal property taxed at the
91% rate under the Retailers' Occupation Tax Act. Beginning
10December 1, 2019, this tax is not imposed on sales of aviation
11fuel unless the tax revenue is expended for airport-related
12purposes. If a municipality does not have an airport-related
13purpose to which it dedicates aviation fuel tax revenue, then
14aviation fuel is excluded from the tax. Each municipality must
15comply with the certification requirements for airport-related
16purposes under Section 2-22 of the Retailers' Occupation Tax
17Act. For purposes of this Section, "airport-related purposes"
18has the meaning ascribed in Section 6z-20.2 of the State
19Finance Act. This exclusion for aviation fuel only applies for
20so long as the revenue use requirements of 49 U.S.C. 47107(b)
21and 49 U.S.C. 47133 are binding on the municipality. The
22changes made to this Section by this amendatory Act of the
23101st General Assembly are a denial and limitation of home rule
24powers and functions under subsection (g) of Section 6 of
25Article VII of the Illinois Constitution. The tax imposed by a
26home rule municipality under this Section and all civil

 

 

HB4414- 46 -LRB101 16786 HLH 66179 b

1penalties that may be assessed as an incident of the tax shall
2be collected and enforced by the State Department of Revenue.
3The certificate of registration that is issued by the
4Department to a retailer under the Retailers' Occupation Tax
5Act shall permit the retailer to engage in a business that is
6taxable under any ordinance or resolution enacted pursuant to
7this Section without registering separately with the
8Department under such ordinance or resolution or under this
9Section. The Department shall have full power to administer and
10enforce this Section; to collect all taxes and penalties due
11hereunder; to dispose of taxes and penalties so collected in
12the manner hereinafter provided; and to determine all rights to
13credit memoranda arising on account of the erroneous payment of
14tax or penalty hereunder. In the administration of, and
15compliance with, this Section the Department and persons who
16are subject to this Section shall have the same rights,
17remedies, privileges, immunities, powers and duties, and be
18subject to the same conditions, restrictions, limitations,
19penalties and definitions of terms, and employ the same modes
20of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
211i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
22provisions therein other than the State rate of tax), 2c, 3
23(except as to the disposition of taxes and penalties collected,
24and except that the retailer's discount is not allowed for
25taxes paid on aviation fuel that are subject to the revenue use
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,

 

 

HB4414- 47 -LRB101 16786 HLH 66179 b

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

 

 

HB4414- 48 -LRB101 16786 HLH 66179 b

1hereunder for deposit into the Home Rule Municipal Retailers'
2Occupation Tax Fund. Taxes and penalties collected on aviation
3fuel sold on or after December 1, 2019, shall be immediately
4paid over by the Department to the State Treasurer, ex officio,
5as trustee, for deposit into the Local Government Aviation
6Trust Fund. The Department shall only pay moneys into the Local
7Government Aviation Trust Fund under this Section for so long
8as the revenue use requirements of 49 U.S.C. 47107(b) and 49
9U.S.C. 47133 are binding on the State.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the Department
12of Revenue, the Comptroller shall order transferred, and the
13Treasurer shall transfer, to the STAR Bonds Revenue Fund the
14local sales tax increment, as defined in the Innovation
15Development and Economy Act, collected under this Section
16during the second preceding calendar month for sales within a
17STAR bond district.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities,
22the municipalities to be those from which retailers have paid
23taxes or penalties hereunder to the Department during the
24second preceding calendar month. The amount to be paid to each
25municipality shall be the amount (not including credit
26memoranda and not including taxes and penalties collected on

 

 

HB4414- 49 -LRB101 16786 HLH 66179 b

1aviation fuel sold on or after December 1, 2019) collected
2hereunder during the second preceding calendar month by the
3Department plus an amount the Department determines is
4necessary to offset any amounts that were erroneously paid to a
5different taxing body, and not including an amount equal to the
6amount of refunds made during the second preceding calendar
7month by the Department on behalf of such municipality, and not
8including any amount that the Department determines is
9necessary to offset any amounts that were payable to a
10different taxing body but were erroneously paid to the
11municipality, and not including any amounts that are
12transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
13remainder, which the Department shall transfer into the Tax
14Compliance and Administration Fund. The Department, at the time
15of each monthly disbursement to the municipalities, shall
16prepare and certify to the State Comptroller the amount to be
17transferred into the Tax Compliance and Administration Fund
18under this Section. Within 10 days after receipt by the
19Comptroller of the disbursement certification to the
20municipalities and the Tax Compliance and Administration Fund
21provided for in this Section to be given to the Comptroller by
22the Department, the Comptroller shall cause the orders to be
23drawn for the respective amounts in accordance with the
24directions contained in the certification.
25    In addition to the disbursement required by the preceding
26paragraph and in order to mitigate delays caused by

 

 

HB4414- 50 -LRB101 16786 HLH 66179 b

1distribution procedures, an allocation shall, if requested, be
2made within 10 days after January 14, 1991, and in November of
31991 and each year thereafter, to each municipality that
4received more than $500,000 during the preceding fiscal year,
5(July 1 through June 30) whether collected by the municipality
6or disbursed by the Department as required by this Section.
7Within 10 days after January 14, 1991, participating
8municipalities shall notify the Department in writing of their
9intent to participate. In addition, for the initial
10distribution, participating municipalities shall certify to
11the Department the amounts collected by the municipality for
12each month under its home rule occupation and service
13occupation tax during the period July 1, 1989 through June 30,
141990. The allocation within 10 days after January 14, 1991,
15shall be in an amount equal to the monthly average of these
16amounts, excluding the 2 months of highest receipts. The
17monthly average for the period of July 1, 1990 through June 30,
181991 will be determined as follows: the amounts collected by
19the municipality under its home rule occupation and service
20occupation tax during the period of July 1, 1990 through
21September 30, 1990, plus amounts collected by the Department
22and paid to such municipality through June 30, 1991, excluding
23the 2 months of highest receipts. The monthly average for each
24subsequent period of July 1 through June 30 shall be an amount
25equal to the monthly distribution made to each such
26municipality under the preceding paragraph during this period,

 

 

HB4414- 51 -LRB101 16786 HLH 66179 b

1excluding the 2 months of highest receipts. The distribution
2made in November 1991 and each year thereafter under this
3paragraph and the preceding paragraph shall be reduced by the
4amount allocated and disbursed under this paragraph in the
5preceding period of July 1 through June 30. The Department
6shall prepare and certify to the Comptroller for disbursement
7the allocations made in accordance with this paragraph.
8    For the purpose of determining the local governmental unit
9whose tax is applicable, a retail sale by a producer of coal or
10other mineral mined in Illinois is a sale at retail at the
11place where the coal or other mineral mined in Illinois is
12extracted from the earth. This paragraph does not apply to coal
13or other mineral when it is delivered or shipped by the seller
14to the purchaser at a point outside Illinois so that the sale
15is exempt under the United States Constitution as a sale in
16interstate or foreign commerce.
17    Nothing in this Section shall be construed to authorize a
18municipality to impose a tax upon the privilege of engaging in
19any business which under the Constitution of the United States
20may not be made the subject of taxation by this State.
21    An ordinance or resolution imposing or discontinuing a tax
22hereunder or effecting a change in the rate thereof shall be
23adopted and a certified copy thereof filed with the Department
24on or before the first day of June, whereupon the Department
25shall proceed to administer and enforce this Section as of the
26first day of September next following the adoption and filing.

 

 

HB4414- 52 -LRB101 16786 HLH 66179 b

1Beginning January 1, 1992, an ordinance or resolution imposing
2or discontinuing the tax hereunder or effecting a change in the
3rate thereof shall be adopted and a certified copy thereof
4filed with the Department on or before the first day of July,
5whereupon the Department shall proceed to administer and
6enforce this Section as of the first day of October next
7following such adoption and filing. Beginning January 1, 1993,
8an ordinance or resolution imposing or discontinuing the tax
9hereunder or effecting a change in the rate thereof shall be
10adopted and a certified copy thereof filed with the Department
11on or before the first day of October, whereupon the Department
12shall proceed to administer and enforce this Section as of the
13first day of January next following the adoption and filing.
14However, a municipality located in a county with a population
15in excess of 3,000,000 that elected to become a home rule unit
16at the general primary election in 1994 may adopt an ordinance
17or resolution imposing the tax under this Section and file a
18certified copy of the ordinance or resolution with the
19Department on or before July 1, 1994. The Department shall then
20proceed to administer and enforce this Section as of October 1,
211994. Beginning April 1, 1998, an ordinance or resolution
22imposing or discontinuing the tax hereunder or effecting a
23change in the rate thereof shall either (i) be adopted and a
24certified copy thereof filed with the Department on or before
25the first day of April, whereupon the Department shall proceed
26to administer and enforce this Section as of the first day of

 

 

HB4414- 53 -LRB101 16786 HLH 66179 b

1July next following the adoption and filing; or (ii) be adopted
2and a certified copy thereof filed with the Department on or
3before the first day of October, whereupon the Department shall
4proceed to administer and enforce this Section as of the first
5day of January next following the adoption and filing.
6    When certifying the amount of a monthly disbursement to a
7municipality under this Section, the Department shall increase
8or decrease the amount by an amount necessary to offset any
9misallocation of previous disbursements. The offset amount
10shall be the amount erroneously disbursed within the previous 6
11months from the time a misallocation is discovered.
12    Any unobligated balance remaining in the Municipal
13Retailers' Occupation Tax Fund on December 31, 1989, which fund
14was abolished by Public Act 85-1135, and all receipts of
15municipal tax as a result of audits of liability periods prior
16to January 1, 1990, shall be paid into the Local Government Tax
17Fund for distribution as provided by this Section prior to the
18enactment of Public Act 85-1135. All receipts of municipal tax
19as a result of an assessment not arising from an audit, for
20liability periods prior to January 1, 1990, shall be paid into
21the Local Government Tax Fund for distribution before July 1,
221990, as provided by this Section prior to the enactment of
23Public Act 85-1135; and on and after July 1, 1990, all such
24receipts shall be distributed as provided in Section 6z-18 of
25the State Finance Act.
26    As used in this Section, "municipal" and "municipality"

 

 

HB4414- 54 -LRB101 16786 HLH 66179 b

1means a city, village or incorporated town, including an
2incorporated town that has superseded a civil township.
3    This Section shall be known and may be cited as the Home
4Rule Municipal Retailers' Occupation Tax Act.
5(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
6100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
77-12-19; 101-604, eff. 12-13-19.)
 
8    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
9    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
10Occupation Tax Act. The corporate authorities of a non-home
11rule municipality may impose a tax upon all persons engaged in
12the business of selling tangible personal property, other than
13on an item of tangible personal property which is titled and
14registered by an agency of this State's Government, at retail
15in the municipality for expenditure on public infrastructure or
16for property tax relief or both as defined in Section 8-11-1.2
17if approved by referendum as provided in Section 8-11-1.1, of
18the gross receipts from such sales made in the course of such
19business. If the tax is approved by referendum on or after July
2014, 2010 (the effective date of Public Act 96-1057), the
21corporate authorities of a non-home rule municipality may,
22until July 1, 2030, use the proceeds of the tax for expenditure
23on municipal operations, in addition to or in lieu of any
24expenditure on public infrastructure or for property tax
25relief. The tax imposed may not be more than 1% and may be

 

 

HB4414- 55 -LRB101 16786 HLH 66179 b

1imposed only in 1/4% increments. The tax may not be imposed on
2tangible personal property taxed at the 1% rate under the
3Retailers' Occupation Tax Act. Beginning December 1, 2019, this
4tax is not imposed on sales of aviation fuel unless the tax
5revenue is expended for airport-related purposes. If a
6municipality does not have an airport-related purpose to which
7it dedicates aviation fuel tax revenue, then aviation fuel is
8excluded from the tax. Each municipality must comply with the
9certification requirements for airport-related purposes under
10Section 2-22 of the Retailers' Occupation Tax Act. For purposes
11of this Section, "airport-related purposes" has the meaning
12ascribed in Section 6z-20.2 of the State Finance Act. This
13exclusion for aviation fuel only applies for so long as the
14revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1547133 are binding on the municipality. The tax imposed by a
16municipality pursuant to this Section and all civil penalties
17that may be assessed as an incident thereof shall be collected
18and enforced by the State Department of Revenue. The
19certificate of registration which is issued by the Department
20to a retailer under the Retailers' Occupation Tax Act shall
21permit such retailer to engage in a business which is taxable
22under any ordinance or resolution enacted pursuant to this
23Section without registering separately with the Department
24under such ordinance or resolution or under this Section. The
25Department shall have full power to administer and enforce this
26Section; to collect all taxes and penalties due hereunder; to

 

 

HB4414- 56 -LRB101 16786 HLH 66179 b

1dispose of taxes and penalties so collected in the manner
2hereinafter provided, and to determine all rights to credit
3memoranda, arising on account of the erroneous payment of tax
4or penalty hereunder. In the administration of, and compliance
5with, this Section, the Department and persons who are subject
6to this Section shall have the same rights, remedies,
7privileges, immunities, powers and duties, and be subject to
8the same conditions, restrictions, limitations, penalties and
9definitions of terms, and employ the same modes of procedure,
10as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
112 through 2-65 (in respect to all provisions therein other than
12the State rate of tax), 2c, 3 (except as to the disposition of
13taxes and penalties collected, and except that the retailer's
14discount is not allowed for taxes paid on aviation fuel that
15are subject to the revenue use requirements of 49 U.S.C.
1647107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
175g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
18and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
19the Uniform Penalty and Interest Act as fully as if those
20provisions were set forth herein.
21    No municipality may impose a tax under this Section unless
22the municipality also imposes a tax at the same rate under
23Section 8-11-1.4 of this Code.
24    Persons subject to any tax imposed pursuant to the
25authority granted in this Section may reimburse themselves for
26their seller's tax liability hereunder by separately stating

 

 

HB4414- 57 -LRB101 16786 HLH 66179 b

1such tax as an additional charge, which charge may be stated in
2combination, in a single amount, with State tax which sellers
3are required to collect under the Use Tax Act, pursuant to such
4bracket schedules as the Department may prescribe.
5    Whenever the Department determines that a refund should be
6made under this Section to a claimant instead of issuing a
7credit memorandum, the Department shall notify the State
8Comptroller, who shall cause the order to be drawn for the
9amount specified, and to the person named, in such notification
10from the Department. Such refund shall be paid by the State
11Treasurer out of the non-home rule municipal retailers'
12occupation tax fund or the Local Government Aviation Trust
13Fund, as appropriate.
14    Except as otherwise provided, the Department shall
15forthwith pay over to the State Treasurer, ex officio, as
16trustee, all taxes and penalties collected hereunder for
17deposit into the Non-Home Rule Municipal Retailers' Occupation
18Tax Fund. Taxes and penalties collected on aviation fuel sold
19on or after December 1, 2019, shall be immediately paid over by
20the Department to the State Treasurer, ex officio, as trustee,
21for deposit into the Local Government Aviation Trust Fund. The
22Department shall only pay moneys into the Local Government
23Aviation Trust Fund under this Section for so long as the
24revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2547133 are binding on the municipality.
26    As soon as possible after the first day of each month,

 

 

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1beginning January 1, 2011, upon certification of the Department
2of Revenue, the Comptroller shall order transferred, and the
3Treasurer shall transfer, to the STAR Bonds Revenue Fund the
4local sales tax increment, as defined in the Innovation
5Development and Economy Act, collected under this Section
6during the second preceding calendar month for sales within a
7STAR bond district.
8    After the monthly transfer to the STAR Bonds Revenue Fund,
9on or before the 25th day of each calendar month, the
10Department shall prepare and certify to the Comptroller the
11disbursement of stated sums of money to named municipalities,
12the municipalities to be those from which retailers have paid
13taxes or penalties hereunder to the Department during the
14second preceding calendar month. The amount to be paid to each
15municipality shall be the amount (not including credit
16memoranda and not including taxes and penalties collected on
17aviation fuel sold on or after December 1, 2019) collected
18hereunder during the second preceding calendar month by the
19Department plus an amount the Department determines is
20necessary to offset any amounts which were erroneously paid to
21a different taxing body, and not including an amount equal to
22the amount of refunds made during the second preceding calendar
23month by the Department on behalf of such municipality, and not
24including any amount which the Department determines is
25necessary to offset any amounts which were payable to a
26different taxing body but were erroneously paid to the

 

 

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1municipality, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund, less 1% 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 such certification.
15    For the purpose of determining the local governmental unit
16whose tax is applicable, a retail sale, by a producer of coal
17or other mineral mined in Illinois, is a sale at retail at the
18place where the coal or other mineral mined in Illinois is
19extracted from the earth. This paragraph does not apply to coal
20or other mineral when it is delivered or shipped by the seller
21to the purchaser at a point outside Illinois so that the sale
22is exempt under the Federal Constitution as a sale in
23interstate or foreign commerce.
24    Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the constitution of the United States

 

 

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1may not be made the subject of taxation by this State.
2    When certifying the amount of a monthly disbursement to a
3municipality under this Section, the Department shall increase
4or decrease such amount by an amount necessary to offset any
5misallocation of previous disbursements. The offset amount
6shall be the amount erroneously disbursed within the previous 6
7months from the time a misallocation is discovered.
8    The Department of Revenue shall implement Public Act 91-649
9so as to collect the tax on and after January 1, 2002.
10    As used in this Section, "municipal" and "municipality"
11mean a city, village, or incorporated town, including an
12incorporated town which has superseded a civil township.
13    This Section shall be known and may be cited as the
14Non-Home Rule Municipal Retailers' Occupation Tax Act.
15(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
16100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-47, eff.
171-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
18    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
19    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
20Tax Act. The corporate authorities of a non-home rule
21municipality may impose a tax upon all persons engaged, in such
22municipality, in the business of making sales of service for
23expenditure on public infrastructure or for property tax relief
24or both as defined in Section 8-11-1.2 if approved by
25referendum as provided in Section 8-11-1.1, of the selling

 

 

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1price of all tangible personal property transferred by such
2servicemen either in the form of tangible personal property or
3in the form of real estate as an incident to a sale of service.
4If the tax is approved by referendum on or after July 14, 2010
5(the effective date of Public Act 96-1057), the corporate
6authorities of a non-home rule municipality may, until December
731, 2020, use the proceeds of the tax for expenditure on
8municipal operations, in addition to or in lieu of any
9expenditure on public infrastructure or for property tax
10relief. The tax imposed may not be more than 1% and may be
11imposed only in 1/4% increments. The tax may not be imposed on
12tangible personal property taxed at the 1% rate under the
13Service Occupation Tax Act. Beginning December 1, 2019, this
14tax is not imposed on sales of aviation fuel unless the tax
15revenue is expended for airport-related purposes. If a
16municipality does not have an airport-related purpose to which
17it dedicates aviation fuel tax revenue, then aviation fuel is
18excluded from the tax. Each municipality must comply with the
19certification requirements for airport-related purposes under
20Section 2-22 of the Retailers' Occupation Tax Act. For purposes
21of this Section, "airport-related purposes" has the meaning
22ascribed in Section 6z-20.2 of the State Finance Act. This
23exclusion for aviation fuel only applies for so long as the
24revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2547133 are binding on the municipality. The tax imposed by a
26municipality pursuant to this Section and all civil penalties

 

 

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1that may be assessed as an incident thereof shall be collected
2and enforced by the State Department of Revenue. The
3certificate of registration which is issued by the Department
4to a retailer under the Retailers' Occupation Tax Act or under
5the Service Occupation Tax Act shall permit such registrant to
6engage in a business which is taxable under any ordinance or
7resolution enacted pursuant to this Section without
8registering separately with the Department under such
9ordinance or resolution or under this Section. The Department
10shall have full power to administer and enforce this Section;
11to collect all taxes and penalties due hereunder; to dispose of
12taxes and penalties so collected in the manner hereinafter
13provided, and to determine all rights to credit memoranda
14arising on account of the erroneous payment of tax or penalty
15hereunder. In the administration of, and compliance with, this
16Section the Department and persons who are subject to this
17Section shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties and
20definitions of terms, and employ the same modes of procedure,
21as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
22respect to all provisions therein other than the State rate of
23tax), 4 (except that the reference to the State shall be to the
24taxing municipality), 5, 7, 8 (except that the jurisdiction to
25which the tax shall be a debt to the extent indicated in that
26Section 8 shall be the taxing municipality), 9 (except as to

 

 

HB4414- 63 -LRB101 16786 HLH 66179 b

1the disposition of taxes and penalties collected, and except
2that the returned merchandise credit for this municipal tax may
3not be taken against any State tax, and except that the
4retailer's discount is not allowed for taxes paid on aviation
5fuel that are subject to the revenue use requirements of 49
6U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
7reference therein to Section 2b of the Retailers' Occupation
8Tax Act), 13 (except that any reference to the State shall mean
9the taxing municipality), the first paragraph of Section 15,
1016, 17, 18, 19 and 20 of the Service 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 municipality may impose a tax under this Section unless
14the municipality also imposes a tax at the same rate under
15Section 8-11-1.3 of this Code.
16    Persons subject to any tax imposed pursuant to the
17authority granted in this Section may reimburse themselves for
18their serviceman's tax liability hereunder by separately
19stating such tax as an additional charge, which charge may be
20stated in combination, in a single amount, with State tax which
21servicemen are authorized to collect under the Service Use Tax
22Act, pursuant to such bracket schedules as the Department may
23prescribe.
24    Whenever the Department determines that a refund should be
25made under this Section to a claimant instead of issuing credit
26memorandum, the Department shall notify the State Comptroller,

 

 

HB4414- 64 -LRB101 16786 HLH 66179 b

1who shall cause the order to be drawn for the amount specified,
2and to the person named, in such notification from the
3Department. Such refund shall be paid by the State Treasurer
4out of the municipal retailers' occupation tax fund or the
5Local Government Aviation Trust Fund, as appropriate.
6    Except as otherwise provided in this paragraph, the
7Department shall forthwith pay over to the State Treasurer, ex
8officio, as trustee, all taxes and penalties collected
9hereunder for deposit into the municipal retailers' occupation
10tax fund. Taxes and penalties collected on aviation fuel sold
11on or after December 1, 2019, shall be immediately paid over by
12the Department to the State Treasurer, ex officio, as trustee,
13for deposit into the Local Government Aviation Trust Fund. The
14Department shall only pay moneys into the Local Government
15Aviation Trust Fund under this Section for so long as the
16revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1747133 are binding on the municipality.
18    As soon as possible after the first day of each month,
19beginning January 1, 2011, upon certification of the Department
20of Revenue, the Comptroller shall order transferred, and the
21Treasurer shall transfer, to the STAR Bonds Revenue Fund the
22local sales tax increment, as defined in the Innovation
23Development and Economy Act, collected under this Section
24during the second preceding calendar month for sales within a
25STAR bond district.
26    After the monthly transfer to the STAR Bonds Revenue Fund,

 

 

HB4414- 65 -LRB101 16786 HLH 66179 b

1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities,
4the municipalities to be those from which suppliers and
5servicemen have paid taxes or penalties hereunder to the
6Department during the second preceding calendar month. The
7amount to be paid to each municipality shall be the amount (not
8including credit memoranda and not including taxes and
9penalties collected on aviation fuel sold on or after December
101, 2019) collected hereunder during the second preceding
11calendar month by the Department, and not including an amount
12equal to the amount of refunds made during the second preceding
13calendar month by the Department on behalf of such
14municipality, and not including any amounts that are
15transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
16remainder, which the Department shall transfer into the Tax
17Compliance and Administration Fund. The Department, at the time
18of each monthly disbursement to the municipalities, shall
19prepare and certify to the State Comptroller the amount to be
20transferred into the Tax Compliance and Administration Fund
21under this Section. Within 10 days after receipt, by the
22Comptroller, of the disbursement certification to the
23municipalities, the General Revenue Fund, and the Tax
24Compliance and Administration Fund provided for in this Section
25to be given to the Comptroller by the Department, the
26Comptroller shall cause the orders to be drawn for the

 

 

HB4414- 66 -LRB101 16786 HLH 66179 b

1respective amounts in accordance with the directions contained
2in such certification.
3    The Department of Revenue shall implement Public Act 91-649
4so as to collect the tax on and after January 1, 2002.
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    As used in this Section, "municipal" or "municipality"
10means or refers to a city, village or incorporated town,
11including an incorporated town which has superseded a civil
12township.
13    This Section shall be known and may be cited as the
14"Non-Home Rule Municipal Service Occupation Tax Act".
15(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
16100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
177-12-19; 101-604, eff. 12-13-19.)
 
18    (65 ILCS 5/8-11-1.6)
19    Sec. 8-11-1.6. Non-home rule municipal retailers'
20occupation tax; municipalities between 20,000 and 25,000. The
21corporate authorities of a non-home rule municipality with a
22population of more than 20,000 but less than 25,000 that has,
23prior to January 1, 1987, established a Redevelopment Project
24Area that has been certified as a State Sales Tax Boundary and
25has issued bonds or otherwise incurred indebtedness to pay for

 

 

HB4414- 67 -LRB101 16786 HLH 66179 b

1costs in excess of $5,000,000, which is secured in part by a
2tax increment allocation fund, in accordance with the
3provisions of Division 11-74.4 of this Code may, by passage of
4an ordinance, impose a tax upon all persons engaged in the
5business of selling tangible personal property, other than on
6an item of tangible personal property that is titled and
7registered by an agency of this State's Government, at retail
8in the municipality. This tax may not be imposed on tangible
9personal property taxed at the 1% rate under the Retailers'
10Occupation Tax Act. Beginning December 1, 2019, this tax is not
11imposed on sales of aviation fuel unless the tax revenue is
12expended for airport-related purposes. If a municipality does
13not have an airport-related purpose to which it dedicates
14aviation fuel tax revenue, then aviation fuel is excluded from
15the tax. Each municipality must comply with the certification
16requirements for airport-related purposes under Section 2-22
17of the Retailers' Occupation Tax Act. For purposes of this
18Section, "airport-related purposes" has the meaning ascribed
19in Section 6z-20.2 of the State Finance Act. This exclusion for
20aviation fuel only applies for so long as the revenue use
21requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
22binding on the municipality. If imposed, the tax shall only be
23imposed in .25% increments of the gross receipts from such
24sales made in the course of business. Any tax imposed by a
25municipality under this Section and all civil penalties that
26may be assessed as an incident thereof shall be collected and

 

 

HB4414- 68 -LRB101 16786 HLH 66179 b

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

 

 

HB4414- 69 -LRB101 16786 HLH 66179 b

1the State rate of tax), 2c, 3 (except as to the disposition of
2taxes and penalties collected, and except that the retailer's
3discount is not allowed for taxes paid on aviation fuel that
4are subject to the revenue use requirements of 49 U.S.C.
547107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
65g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
7and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
8the Uniform Penalty and Interest Act as fully as if those
9provisions were set forth herein.
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'

 

 

HB4414- 70 -LRB101 16786 HLH 66179 b

1Occupation Tax Fund, which is hereby created or the Local
2Government Aviation Trust Fund, as appropriate.
3    Except as otherwise provided in this paragraph, the
4Department shall forthwith pay over to the State Treasurer, ex
5officio, as trustee, all taxes and penalties collected
6hereunder for deposit into the Non-Home Rule Municipal
7Retailers' Occupation Tax Fund. Taxes and penalties collected
8on aviation fuel sold on or after December 1, 2019, shall be
9immediately paid over by the Department to the State Treasurer,
10ex officio, as trustee, for deposit into the Local Government
11Aviation Trust Fund. The Department shall only pay moneys into
12the Local Government Aviation Trust Fund under this Section for
13so long as the revenue use requirements of 49 U.S.C. 47107(b)
14and 49 U.S.C. 47133 are binding on the municipality.
15    As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the Department
17of Revenue, the Comptroller shall order transferred, and the
18Treasurer shall transfer, to the STAR Bonds Revenue Fund the
19local sales tax increment, as defined in the Innovation
20Development and Economy Act, collected under this Section
21during the second preceding calendar month for sales within a
22STAR bond district.
23    After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to named municipalities,

 

 

HB4414- 71 -LRB101 16786 HLH 66179 b

1the municipalities to be those from which retailers have paid
2taxes or penalties hereunder to the Department during the
3second preceding calendar month. The amount to be paid to each
4municipality shall be the amount (not including credit
5memoranda and not including taxes and penalties collected on
6aviation fuel sold on or after December 1, 2019) collected
7hereunder during the second preceding calendar month by the
8Department plus an amount the Department determines is
9necessary to offset any amounts that were erroneously paid to a
10different taxing body, and not including an amount equal to the
11amount of refunds made during the second preceding calendar
12month by the Department on behalf of the municipality, and not
13including any amount that the Department determines is
14necessary to offset any amounts that were payable to a
15different taxing body but were erroneously paid to the
16municipality, and not including any amounts that are
17transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
18remainder, which the Department shall transfer into the Tax
19Compliance and Administration Fund. The Department, at the time
20of each monthly disbursement to the municipalities, shall
21prepare and certify to the State Comptroller the amount to be
22transferred into the Tax Compliance and Administration Fund
23under this Section. Within 10 days after receipt by the
24Comptroller of the disbursement certification to the
25municipalities and the Tax Compliance and Administration Fund
26provided for in this Section to be given to the Comptroller by

 

 

HB4414- 72 -LRB101 16786 HLH 66179 b

1the Department, the Comptroller shall cause the orders to be
2drawn for the respective amounts in accordance with the
3directions contained in the certification.
4    For the purpose of determining the local governmental unit
5whose tax is applicable, a retail sale by a producer of coal or
6other mineral mined in Illinois is a sale at retail at the
7place where the coal or other mineral mined in Illinois is
8extracted from the earth. This paragraph does not apply to coal
9or other mineral when it is delivered or shipped by the seller
10to the purchaser at a point outside Illinois so that the sale
11is exempt under the federal Constitution as a sale in
12interstate or foreign commerce.
13    Nothing in this Section shall be construed to authorize a
14municipality to impose a tax upon the privilege of engaging in
15any business which under the constitution of the United States
16may not be made the subject of taxation by this State.
17    When certifying the amount of a monthly disbursement to a
18municipality under this Section, the Department shall increase
19or decrease the amount by an amount necessary to offset any
20misallocation of previous disbursements. The offset amount
21shall be the amount erroneously disbursed within the previous 6
22months from the time a misallocation is discovered.
23    As used in this Section, "municipal" and "municipality"
24means a city, village, or incorporated town, including an
25incorporated town that has superseded a civil township.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;

 

 

HB4414- 73 -LRB101 16786 HLH 66179 b

1100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
26-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
3    (65 ILCS 5/8-11-1.7)
4    Sec. 8-11-1.7. Non-home rule municipal service occupation
5tax; municipalities between 20,000 and 25,000. The corporate
6authorities of a non-home rule municipality with a population
7of more than 20,000 but less than 25,000 as determined by the
8last preceding decennial census that has, prior to January 1,
91987, established a Redevelopment Project Area that has been
10certified as a State Sales Tax Boundary and has issued bonds or
11otherwise incurred indebtedness to pay for costs in excess of
12$5,000,000, which is secured in part by a tax increment
13allocation fund, in accordance with the provisions of Division
1411-74.4 of this Code may, by passage of an ordinance, impose a
15tax upon all persons engaged in the municipality in the
16business of making sales of service. If imposed, the tax shall
17only be imposed in .25% increments of the selling price of all
18tangible personal property transferred by such servicemen
19either in the form of tangible personal property or in the form
20of real estate as an incident to a sale of service. This tax
21may not be imposed on tangible personal property taxed at the
221% rate under the Service Occupation Tax Act. Beginning
23December 1, 2019, this tax is not imposed on sales of aviation
24fuel unless the tax revenue is expended for airport-related
25purposes. If a municipality does not have an airport-related

 

 

HB4414- 74 -LRB101 16786 HLH 66179 b

1purpose to which it dedicates aviation fuel tax revenue, then
2aviation fuel is excluded from the tax. Each municipality must
3comply with the certification requirements for airport-related
4purposes under Section 2-22 of the Retailers' Occupation Tax
5Act. For purposes of this Section, "airport-related purposes"
6has the meaning ascribed in Section 6z-20.2 of the State
7Finance Act. This exclusion for aviation fuel only applies for
8so long as the revenue use requirements of 49 U.S.C. 47107(b)
9and 49 U.S.C. 47133 are binding on the municipality. The tax
10imposed by a municipality under this Section and all civil
11penalties that may be assessed as an incident thereof shall be
12collected and enforced by the State Department of Revenue. An
13ordinance imposing a tax hereunder or effecting a change in the
14rate thereof shall be adopted and a certified copy thereof
15filed with the Department on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce this Section as of the first day of January next
18following such adoption and filing. The certificate of
19registration that is issued by the Department to a retailer
20under the Retailers' Occupation Tax Act or under the Service
21Occupation Tax Act shall permit the registrant to engage in a
22business that is taxable under any ordinance or resolution
23enacted under this Section without registering separately with
24the Department under the ordinance or resolution or under this
25Section. The Department shall have full power to administer and
26enforce this Section, to collect all taxes and penalties due

 

 

HB4414- 75 -LRB101 16786 HLH 66179 b

1hereunder, to dispose of taxes and penalties so collected in a
2manner hereinafter provided, and to determine all rights to
3credit memoranda arising on account of the erroneous payment of
4tax or penalty hereunder. In the administration of and
5compliance with this Section, the Department and persons who
6are subject to this Section shall have the same rights,
7remedies, privileges, immunities, powers, and duties, and be
8subject to the same conditions, restrictions, limitations,
9penalties and definitions of terms, and employ the same modes
10of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
11through 3-50 (in respect to all provisions therein other than
12the State rate of tax), 4 (except that the reference to the
13State shall be to the taxing municipality), 5, 7, 8 (except
14that the jurisdiction to which the tax shall be a debt to the
15extent indicated in that Section 8 shall be the taxing
16municipality), 9 (except as to the disposition of taxes and
17penalties collected, and except that the returned merchandise
18credit for this municipal tax may not be taken against any
19State tax, and except that the retailer's discount is not
20allowed for taxes paid on aviation fuel that are subject to the
21revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2247133), 10, 11, 12, (except the reference therein to Section 2b
23of the Retailers' Occupation Tax Act), 13 (except that any
24reference to the State shall mean the taxing municipality), the
25first paragraph of Sections 15, 16, 17, 18, 19, and 20 of the
26Service Occupation Tax Act and Section 3-7 of the Uniform

 

 

HB4414- 76 -LRB101 16786 HLH 66179 b

1Penalty and Interest Act, as fully as if those provisions were
2set forth herein.
3    A tax may not be imposed by a municipality under this
4Section unless the municipality also imposes a tax at the same
5rate under Section 8-11-1.6 of this Act.
6    Person subject to any tax imposed under the authority
7granted in this Section may reimburse themselves for their
8servicemen's tax liability hereunder by separately stating the
9tax as an additional charge, which charge may be stated in
10combination, in a single amount, with State tax that servicemen
11are authorized to collect under the Service Use Tax Act, under
12such bracket schedules as the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing credit
15memorandum, the Department shall notify the State Comptroller,
16who shall cause the order to be drawn for the amount specified,
17and to the person named, in such notification from the
18Department. The refund shall be paid by the State Treasurer out
19of the Non-Home Rule Municipal Retailers' Occupation Tax Fund
20or the Local Government Aviation Trust Fund, as appropriate.
21    Except as otherwise provided in this paragraph, the
22Department shall forthwith pay over to the State Treasurer, ex
23officio, as trustee, all taxes and penalties collected
24hereunder for deposit into the Non-Home Rule Municipal
25Retailers' Occupation Tax Fund. Taxes and penalties collected
26on aviation fuel sold on or after December 1, 2019, shall be

 

 

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1immediately paid over by the Department to the State Treasurer,
2ex officio, as trustee, for deposit into the Local Government
3Aviation Trust Fund. The Department shall only pay moneys into
4the Local Government Aviation Trust Fund under this Section for
5so long as the revenue use requirements of 49 U.S.C. 47107(b)
6and 49 U.S.C. 47133 are binding on the Municipality.
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.
15    After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to named municipalities,
19the municipalities to be those from which suppliers and
20servicemen have paid taxes or penalties hereunder to the
21Department during the second preceding calendar month. The
22amount to be paid to each municipality shall be the amount (not
23including credit memoranda and not including taxes and
24penalties collected on aviation fuel sold on or after December
251, 2019) collected hereunder during the second preceding
26calendar month by the Department, and not including an amount

 

 

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1equal to the amount of refunds made during the second preceding
2calendar month by the Department on behalf of such
3municipality, and not including any amounts that are
4transferred to the STAR Bonds Revenue Fund, less 1% 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, the Tax Compliance and Administration Fund,
13and the General Revenue Fund, provided for in this Section to
14be given to the Comptroller by the Department, the Comptroller
15shall cause the orders to be drawn for the respective amounts
16in accordance with the directions contained in the
17certification.
18    When certifying the amount of a monthly disbursement to a
19municipality under this Section, the Department shall increase
20or decrease the amount by an amount necessary to offset any
21misallocation of previous disbursements. The offset amount
22shall be the amount erroneously disbursed within the previous 6
23months from the time a misallocation is discovered.
24    Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the constitution of the United States

 

 

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1may not be made the subject of taxation by this State.
2(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
3100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
46-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
5    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
6    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
7Act. The corporate authorities of a home rule municipality may
8impose a tax upon all persons engaged, in such municipality, in
9the business of making sales of service at the same rate of tax
10imposed pursuant to Section 8-11-1, of the selling price of all
11tangible personal property transferred by such servicemen
12either in the form of tangible personal property or in the form
13of real estate as an incident to a sale of service. If imposed,
14such tax shall only be imposed in 1/4% increments. On and after
15September 1, 1991, this additional tax may not be imposed on
16tangible personal property taxed at the 1% rate under the
17Retailers' Occupation Tax Act. Beginning December 1, 2019, this
18tax may not be imposed on sales of aviation fuel unless the tax
19revenue is expended for airport-related purposes. If a
20municipality does not have an airport-related purpose to which
21it dedicates aviation fuel tax revenue, then aviation fuel
22shall be excluded from tax. Each municipality must comply with
23the certification requirements for airport-related purposes
24under Section 2-22 of the Retailers' Occupation Tax Act. For
25purposes of this Section, "airport-related purposes" has the

 

 

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1meaning ascribed in Section 6z-20.2 of the State Finance Act.
2This exception for aviation fuel only applies for so long as
3the revenue use requirements of 49 U.S.C. 47107(b) and 49
4U.S.C. 47133 are binding on the State. The changes made to this
5Section by this amendatory Act of the 101st General Assembly
6are a denial and limitation of home rule powers and functions
7under subsection (g) of Section 6 of Article VII of the
8Illinois Constitution. The tax imposed by a home rule
9municipality pursuant to this Section and all civil penalties
10that may be assessed as an incident thereof shall be collected
11and enforced by the State Department of Revenue. The
12certificate of registration which is issued by the Department
13to a retailer under the Retailers' Occupation Tax Act or under
14the Service Occupation Tax Act shall permit such registrant to
15engage in a business which is taxable under any ordinance or
16resolution enacted pursuant to this Section without
17registering separately with the Department under such
18ordinance or resolution or under this Section. The Department
19shall have full power to administer and enforce this Section;
20to collect all taxes and penalties due hereunder; to dispose of
21taxes and penalties so collected in the manner hereinafter
22provided, and to determine all rights to credit memoranda
23arising on account of the erroneous payment of tax or penalty
24hereunder. In the administration of, and compliance with, this
25Section the Department and persons who are subject to this
26Section shall have the same rights, remedies, privileges,

 

 

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1immunities, powers and duties, and be subject to the same
2conditions, restrictions, limitations, penalties and
3definitions of terms, and employ the same modes of procedure,
4as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
5respect to all provisions therein other than the State rate of
6tax), 4 (except that the reference to the State shall be to the
7taxing municipality), 5, 7, 8 (except that the jurisdiction to
8which the tax shall be a debt to the extent indicated in that
9Section 8 shall be the taxing municipality), 9 (except as to
10the disposition of taxes and penalties collected, and except
11that the returned merchandise credit for this municipal tax may
12not be taken against any State tax, and except that the
13retailer's discount is not allowed for taxes paid on aviation
14fuel that are subject to the revenue use requirements of 49
15U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
16reference therein to Section 2b of the Retailers' Occupation
17Tax Act), 13 (except that any reference to the State shall mean
18the taxing municipality), the first paragraph of Section 15,
1916, 17 (except that credit memoranda issued hereunder may not
20be used to discharge any State tax liability), 18, 19 and 20 of
21the Service Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act, as fully as if those provisions were
23set forth herein.
24    No tax may be imposed by a home rule municipality pursuant
25to this Section unless such municipality also imposes a tax at
26the same rate pursuant to Section 8-11-1 of this Act.

 

 

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1    Persons subject to any tax imposed pursuant to the
2authority granted in this Section may reimburse themselves for
3their serviceman's tax liability hereunder by separately
4stating such tax as an additional charge, which charge may be
5stated in combination, in a single amount, with State tax which
6servicemen are authorized to collect under the Service Use Tax
7Act, pursuant to such bracket schedules as the Department may
8prescribe.
9    Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing credit
11memorandum, the Department shall notify the State Comptroller,
12who shall cause the order to be drawn for the amount specified,
13and to the person named, in such notification from the
14Department. Such refund shall be paid by the State Treasurer
15out of the home rule municipal retailers' occupation tax fund
16or the Local Government Aviation Trust Fund, as appropriate.
17    Except as otherwise provided in this paragraph, the
18Department shall forthwith pay over to the State Treasurer, ex
19officio, as trustee, all taxes and penalties collected
20hereunder for deposit into the Home Rule Municipal Retailers'
21Occupation Tax Fund. Taxes and penalties collected on aviation
22fuel sold on or after December 1, 2019, shall be immediately
23paid over by the Department to the State Treasurer, ex officio,
24as trustee, for deposit into the Local Government Aviation
25Trust Fund. The Department shall only pay moneys into the Local
26Government Aviation Trust Fund under this Section for so long

 

 

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1as the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133 are binding on the municipality.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the Department
5of Revenue, the Comptroller shall order transferred, and the
6Treasurer shall transfer, to the STAR Bonds Revenue Fund the
7local sales tax increment, as defined in the Innovation
8Development and Economy Act, collected under this Section
9during the second preceding calendar month for sales within a
10STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities,
15the municipalities to be those from which suppliers and
16servicemen have paid taxes or penalties hereunder to the
17Department during the second preceding calendar month. The
18amount to be paid to each municipality shall be the amount (not
19including credit memoranda and not including taxes and
20penalties collected on aviation fuel sold on or after December
211, 2019) collected hereunder during the second preceding
22calendar month by the Department, and not including an amount
23equal to the amount of refunds made during the second preceding
24calendar month by the Department on behalf of such
25municipality, and not including any amounts that are
26transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the

 

 

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1remainder, which the Department shall transfer into the Tax
2Compliance and Administration Fund. The Department, at the time
3of each monthly disbursement to the municipalities, shall
4prepare and certify to the State Comptroller the amount to be
5transferred into the Tax Compliance and Administration Fund
6under this Section. Within 10 days after receipt, by the
7Comptroller, of the disbursement certification to the
8municipalities and the Tax Compliance and Administration Fund
9provided for in this Section to be given to the Comptroller by
10the Department, the Comptroller shall cause the orders to be
11drawn for the respective amounts in accordance with the
12directions contained in such certification.
13    In addition to the disbursement required by the preceding
14paragraph and in order to mitigate delays caused by
15distribution procedures, an allocation shall, if requested, be
16made within 10 days after January 14, 1991, and in November of
171991 and each year thereafter, to each municipality that
18received more than $500,000 during the preceding fiscal year,
19(July 1 through June 30) whether collected by the municipality
20or disbursed by the Department as required by this Section.
21Within 10 days after January 14, 1991, participating
22municipalities shall notify the Department in writing of their
23intent to participate. In addition, for the initial
24distribution, participating municipalities shall certify to
25the Department the amounts collected by the municipality for
26each month under its home rule occupation and service

 

 

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1occupation tax during the period July 1, 1989 through June 30,
21990. The allocation within 10 days after January 14, 1991,
3shall be in an amount equal to the monthly average of these
4amounts, excluding the 2 months of highest receipts. Monthly
5average for the period of July 1, 1990 through June 30, 1991
6will be determined as follows: the amounts collected by the
7municipality under its home rule occupation and service
8occupation tax during the period of July 1, 1990 through
9September 30, 1990, plus amounts collected by the Department
10and paid to such municipality through June 30, 1991, excluding
11the 2 months of highest receipts. The monthly average for each
12subsequent period of July 1 through June 30 shall be an amount
13equal to the monthly distribution made to each such
14municipality under the preceding paragraph during this period,
15excluding the 2 months of highest receipts. The distribution
16made in November 1991 and each year thereafter under this
17paragraph and the preceding paragraph shall be reduced by the
18amount allocated and disbursed under this paragraph in the
19preceding period of July 1 through June 30. The Department
20shall prepare and certify to the Comptroller for disbursement
21the allocations made in accordance with this paragraph.
22    Nothing in this Section shall be construed to authorize a
23municipality to impose a tax upon the privilege of engaging in
24any business which under the constitution of the United States
25may not be made the subject of taxation by this State.
26    An ordinance or resolution imposing or discontinuing a tax

 

 

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1hereunder or effecting a change in the rate thereof shall be
2adopted and a certified copy thereof filed with the Department
3on or before the first day of June, whereupon the Department
4shall proceed to administer and enforce this Section as of the
5first day of September next following such adoption and filing.
6Beginning January 1, 1992, an ordinance or resolution imposing
7or discontinuing the tax hereunder or effecting a change in the
8rate thereof shall be adopted and a certified copy thereof
9filed with the Department on or before the first day of July,
10whereupon the Department shall proceed to administer and
11enforce this Section as of the first day of October next
12following such adoption and filing. Beginning January 1, 1993,
13an ordinance or resolution imposing or discontinuing the tax
14hereunder or effecting a change in the rate thereof shall be
15adopted and a certified copy thereof filed with the Department
16on or before the first day of October, whereupon the Department
17shall proceed to administer and enforce this Section as of the
18first day of January next following such adoption and filing.
19However, a municipality located in a county with a population
20in excess of 3,000,000 that elected to become a home rule unit
21at the general primary election in 1994 may adopt an ordinance
22or resolution imposing the tax under this Section and file a
23certified copy of the ordinance or resolution with the
24Department on or before July 1, 1994. The Department shall then
25proceed to administer and enforce this Section as of October 1,
261994. Beginning April 1, 1998, an ordinance or resolution

 

 

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1imposing or discontinuing the tax hereunder or effecting a
2change in the rate thereof shall either (i) be adopted and a
3certified copy thereof filed with the Department on or before
4the first day of April, whereupon the Department shall proceed
5to administer and enforce this Section as of the first day of
6July next following the adoption and filing; or (ii) be adopted
7and a certified copy thereof filed with the Department on or
8before the first day of October, whereupon the Department shall
9proceed to administer and enforce this Section as of the first
10day of January next following the adoption and filing.
11    Any unobligated balance remaining in the Municipal
12Retailers' Occupation Tax Fund on December 31, 1989, which fund
13was abolished by Public Act 85-1135, and all receipts of
14municipal tax as a result of audits of liability periods prior
15to January 1, 1990, shall be paid into the Local Government Tax
16Fund, for distribution as provided by this Section prior to the
17enactment of Public Act 85-1135. All receipts of municipal tax
18as a result of an assessment not arising from an audit, for
19liability periods prior to January 1, 1990, shall be paid into
20the Local Government Tax Fund for distribution before July 1,
211990, as provided by this Section prior to the enactment of
22Public Act 85-1135, and on and after July 1, 1990, all such
23receipts shall be distributed as provided in Section 6z-18 of
24the State Finance Act.
25    As used in this Section, "municipal" and "municipality"
26means a city, village or incorporated town, including an

 

 

HB4414- 88 -LRB101 16786 HLH 66179 b

1incorporated town which has superseded a civil township.
2    This Section shall be known and may be cited as the Home
3Rule Municipal Service Occupation Tax Act.
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
5100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
67-12-19; 101-604, eff. 12-13-19.)
 
7    (65 ILCS 5/8-11-23)
8    Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax
9Law.
10    (a) This Section may be referred to as the Municipal
11Cannabis Retailers' Occupation Tax Law. The corporate
12authorities of any municipality may, by ordinance, impose a tax
13upon all persons engaged in the business of selling cannabis,
14other than cannabis purchased under the Compassionate Use of
15Medical Cannabis Program Act, at retail in the municipality on
16the gross receipts from these sales made in the course of that
17business. If imposed, the tax may not exceed 3% of the gross
18receipts from these sales and shall only be imposed in 1/4%
19increments. The tax imposed under this Section and all civil
20penalties that may be assessed as an incident of the tax shall
21be collected and enforced by the Department of Revenue. The
22Department of Revenue shall have full power to administer and
23enforce this Section; to collect all taxes and penalties due
24hereunder; to dispose of taxes and penalties so collected in
25the manner hereinafter provided; and to determine all rights to

 

 

HB4414- 89 -LRB101 16786 HLH 66179 b

1credit memoranda arising on account of the erroneous payment of
2tax or penalty under this Section. In the administration of and
3compliance with this Section, the Department and persons who
4are subject to this Section shall have the same rights,
5remedies, privileges, immunities, powers and duties, and be
6subject to the same conditions, restrictions, limitations,
7penalties and definitions of terms, and employ the same modes
8of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
91i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
10provisions therein other than the State rate of tax), 2a, 2b,
112c, 2i, 3 (except as to the disposition of taxes and penalties
12collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
135l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
14Retailers' Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act, as fully as if those provisions were
16set forth herein.
17    (b) Persons subject to any tax imposed under the authority
18granted in this Section may reimburse themselves for their
19seller's tax liability hereunder by separately stating that tax
20as an additional charge, which charge may be stated in
21combination, in a single amount, with any State tax that
22sellers are required to collect.
23    (c) Whenever the Department of Revenue determines that a
24refund should be made under this Section to a claimant instead
25of issuing a credit memorandum, the Department of Revenue shall
26notify the State Comptroller, who shall cause the order to be

 

 

HB4414- 90 -LRB101 16786 HLH 66179 b

1drawn for the amount specified and to the person named in the
2notification from the Department of Revenue.
3    (d) The Department of Revenue shall immediately pay over to
4the State Treasurer, ex officio, as trustee, all taxes and
5penalties collected hereunder for deposit into the Local
6Cannabis Retailers' Occupation Tax Trust Fund.
7    (e) On or before the 25th day of each calendar month, the
8Department of Revenue shall prepare and certify to the
9Comptroller the amount of money to be disbursed from the Local
10Cannabis Retailers' Occupation Tax Trust Fund to
11municipalities from which retailers have paid taxes or
12penalties under this Section during the second preceding
13calendar month. The amount to be paid to each municipality
14shall be the amount (not including credit memoranda) collected
15under this Section from sales made in the municipality during
16the second preceding calendar month, plus an amount the
17Department of Revenue determines is necessary to offset any
18amounts that were erroneously paid to a different taxing body,
19and not including an amount equal to the amount of refunds made
20during the second preceding calendar month by the Department on
21behalf of such municipality, and not including any amount that
22the Department determines is necessary to offset any amounts
23that were payable to a different taxing body but were
24erroneously paid to the municipality, less 1% 1.5% of the
25remainder, which the Department shall transfer into the Tax
26Compliance and Administration Fund. The Department, at the time

 

 

HB4414- 91 -LRB101 16786 HLH 66179 b

1of each monthly disbursement to the municipalities, shall
2prepare and certify to the State Comptroller the amount to be
3transferred into the Tax Compliance and Administration Fund
4under this Section. Within 10 days after receipt by the
5Comptroller of the disbursement certification to the
6municipalities and the Tax Compliance and Administration Fund
7provided for in this Section to be given to the Comptroller by
8the Department, the Comptroller shall cause the orders to be
9drawn for the respective amounts in accordance with the
10directions contained in the certification.
11    (f) An ordinance or resolution imposing or discontinuing a
12tax under this Section or effecting a change in the rate
13thereof that is adopted on or after June 25, 2019 (the
14effective date of Public Act 101-27) and for which a certified
15copy is filed with the Department on or before April 1, 2020
16shall be administered and enforced by the Department beginning
17on July 1, 2020. For ordinances filed with the Department after
18April 1, 2020, an ordinance or resolution imposing or
19discontinuing a tax under this Section or effecting a change in
20the rate thereof shall either (i) be adopted and a certified
21copy thereof filed with the Department on or before the first
22day of April, whereupon the Department shall proceed to
23administer and enforce this Section as of the first day of July
24next following the adoption and filing; or (ii) be adopted and
25a certified copy thereof filed with the Department on or before
26the first day of October, whereupon the Department shall

 

 

HB4414- 92 -LRB101 16786 HLH 66179 b

1proceed to administer and enforce this Section as of the first
2day of January next following the adoption and filing.
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
4    Section 20. The Metro-East Park and Recreation District Act
5is amended by changing Section 30 as follows:
 
6    (70 ILCS 1605/30)
7    Sec. 30. Taxes.
8    (a) The board shall impose a tax upon all persons engaged
9in the business of selling tangible personal property, other
10than personal property titled or registered with an agency of
11this State's government, at retail in the District on the gross
12receipts from the sales made in the course of business. This
13tax shall be imposed only at the rate of one-tenth of one per
14cent.
15    This additional tax may not be imposed on tangible personal
16property taxed at the 1% rate under the Retailers' Occupation
17Tax Act. Beginning December 1, 2019 and through December 31,
182020, this tax is not imposed on sales of aviation fuel unless
19the tax revenue is expended for airport-related purposes. If
20the District does not have an airport-related purpose to which
21it dedicates aviation fuel tax revenue, then aviation fuel
22shall be excluded from tax. The board must comply with the
23certification requirements for airport-related purposes under
24Section 2-22 of the Retailers' Occupation Tax Act. For purposes

 

 

HB4414- 93 -LRB101 16786 HLH 66179 b

1of this Act, "airport-related purposes" has the meaning
2ascribed in Section 6z-20.2 of the State Finance Act. Beginning
3January 1, 2021, this tax is not imposed on sales of aviation
4fuel for so long as the revenue use requirements of 49 U.S.C.
547107(b) and 49 U.S.C. 47133 are binding on the District. The
6tax imposed by the Board under this Section and all civil
7penalties that may be assessed as an incident of the tax shall
8be collected and enforced by the Department of Revenue. The
9certificate of registration that is issued by the Department to
10a retailer under the Retailers' Occupation Tax Act shall permit
11the retailer to engage in a business that is taxable without
12registering separately with the Department under an ordinance
13or resolution under this Section. The Department has full power
14to administer and enforce this Section, to collect all taxes
15and penalties due under this Section, to dispose of taxes and
16penalties so collected in the manner provided in this Section,
17and to determine all rights to credit memoranda arising on
18account of the erroneous payment of a tax or penalty under this
19Section. In the administration of and compliance with this
20Section, the Department and persons who are subject to this
21Section shall (i) have the same rights, remedies, privileges,
22immunities, powers, and duties, (ii) be subject to the same
23conditions, restrictions, limitations, penalties, and
24definitions of terms, and (iii) employ the same modes of
25procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
261f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all

 

 

HB4414- 94 -LRB101 16786 HLH 66179 b

1provisions contained in those Sections other than the State
2rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except
3provisions relating to transaction returns and quarter monthly
4payments, and except that the retailer's discount is not
5allowed for taxes paid on aviation fuel that are subject to the
6revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
747133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6,
86a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
9Retailers' Occupation Tax Act and the Uniform Penalty and
10Interest Act as if those provisions were set forth in this
11Section.
12    Persons subject to any tax imposed under the authority
13granted in this Section may reimburse themselves for their
14sellers' tax liability by separately stating the tax as an
15additional charge, which charge may be stated in combination,
16in a single amount, with State tax which sellers are required
17to collect under the Use Tax Act, pursuant to such bracketed
18schedules 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 the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the State Metro-East Park and Recreation
26District Fund or the Local Government Aviation Trust Fund, as

 

 

HB4414- 95 -LRB101 16786 HLH 66179 b

1appropriate.
2    (b) If a tax has been imposed under subsection (a), a
3service occupation tax shall also be imposed at the same rate
4upon all persons engaged, in the District, in the business of
5making sales of service, who, as an incident to making those
6sales of service, transfer tangible personal property within
7the District as an incident to a sale of service. This tax may
8not be imposed on tangible personal property taxed at the 1%
9rate under the Service Occupation Tax Act. Beginning December
101, 2019 and through December 31, 2020, this tax may not be
11imposed on sales of aviation fuel unless the tax revenue is
12expended for airport-related purposes. If the District does not
13have an airport-related purpose to which it dedicates aviation
14fuel tax revenue, then aviation fuel shall be excluded from
15tax. The board must comply with the certification requirements
16for airport-related purposes under Section 2-22 of the
17Retailers' Occupation Tax Act. For purposes of this Act,
18"airport-related purposes" has the meaning ascribed in Section
196z-20.2 of the State Finance Act. Beginning January 1, 2021,
20this tax is not imposed on sales of aviation fuel for so long
21as the revenue use requirements of 49 U.S.C. 47107(b) and 49
22U.S.C. 47133 are binding on the District. The tax imposed under
23this subsection and all civil penalties that may be assessed as
24an incident thereof shall be collected and enforced by the
25Department of Revenue. The Department has full power to
26administer and enforce this subsection; to collect all taxes

 

 

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1and penalties due hereunder; to dispose of taxes and penalties
2so collected in the manner hereinafter provided; and to
3determine all rights to credit memoranda arising on account of
4the erroneous payment of tax or penalty hereunder. In the
5administration of, and compliance with this subsection, the
6Department and persons who are subject to this paragraph shall
7(i) have the same rights, remedies, privileges, immunities,
8powers, and duties, (ii) be subject to the same conditions,
9restrictions, limitations, penalties, exclusions, exemptions,
10and definitions of terms, and (iii) employ the same modes of
11procedure as are prescribed in Sections 2 (except that the
12reference to State in the definition of supplier maintaining a
13place of business in this State shall mean the District), 2a,
142b, 2c, 3 through 3-50 (in respect to all provisions therein
15other than the State rate of tax), 4 (except that the reference
16to the State shall be to the District), 5, 7, 8 (except that
17the jurisdiction to which the tax shall be a debt to the extent
18indicated in that Section 8 shall be the District), 9 (except
19as to the disposition of taxes and penalties collected, and
20except that the retailer's discount is not allowed for taxes
21paid on aviation fuel that are subject to the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
2311, 12 (except the reference therein to Section 2b of the
24Retailers' Occupation Tax Act), 13 (except that any reference
25to the State shall mean the District), Sections 15, 16, 17, 18,
2619 and 20 of the Service Occupation Tax Act and the Uniform

 

 

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1Penalty and Interest Act, as fully as if those provisions were
2set forth herein.
3    Persons subject to any tax imposed under the authority
4granted in this subsection may reimburse themselves for their
5serviceman's tax liability by separately stating the tax as an
6additional charge, which charge may be stated in combination,
7in a single amount, with State tax that servicemen are
8authorized to collect under the Service Use Tax Act, in
9accordance with such bracket schedules as the Department may
10prescribe.
11    Whenever the Department determines that a refund should be
12made under this subsection 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 State Metro-East Park and Recreation
18District Fund or the Local Government Aviation Trust Fund, as
19appropriate.
20    Nothing in this subsection shall be construed to authorize
21the board to impose a tax upon the privilege of engaging in any
22business which under the Constitution of the United States may
23not be made the subject of taxation by the State.
24    (c) Except as otherwise provided in this paragraph, the
25Department shall immediately pay over to the State Treasurer,
26ex officio, as trustee, all taxes and penalties collected under

 

 

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1this Section to be deposited into the State Metro-East Park and
2Recreation District Fund, which shall be an unappropriated
3trust fund held outside of the State treasury. Taxes and
4penalties collected on aviation fuel sold on or after December
51, 2019 and through December 31, 2020, shall be immediately
6paid over by the Department to the State Treasurer, ex officio,
7as trustee, for deposit into the Local Government Aviation
8Trust Fund. The Department shall only pay moneys into the Local
9Government Aviation Trust Fund under this Act for so long as
10the revenue use requirements of 49 U.S.C. 47107(b) and 49
11U.S.C. 47133 are binding on the District.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the Department
14of Revenue, the Comptroller shall order transferred, and the
15Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16local sales tax increment, as defined in the Innovation
17Development and Economy Act, collected under this Section
18during the second preceding calendar month for sales within a
19STAR bond district. The Department shall make this
20certification only if the Metro East Park and Recreation
21District imposes a tax on real property as provided in the
22definition of "local sales taxes" under the Innovation
23Development and Economy Act.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

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1disbursement of stated sums of money pursuant to Section 35 of
2this Act to the District from which retailers have paid taxes
3or penalties to the Department during the second preceding
4calendar month. The amount to be paid to the District shall be
5the amount (not including credit memoranda and not including
6taxes and penalties collected on aviation fuel sold on or after
7December 1, 2019 and through December 31, 2020) collected under
8this Section during the second preceding calendar month by the
9Department plus an amount the Department determines is
10necessary to offset any amounts that were erroneously paid to a
11different taxing body, and not including (i) an amount equal to
12the amount of refunds made during the second preceding calendar
13month by the Department on behalf of the District, (ii) any
14amount that the Department determines is necessary to offset
15any amounts that were payable to a different taxing body but
16were erroneously paid to the District, (iii) any amounts that
17are transferred to the STAR Bonds Revenue Fund, and (iv) 1%
181.5% of the remainder, which the Department shall transfer into
19the Tax Compliance and Administration Fund. The Department, at
20the time of each monthly disbursement to the District, shall
21prepare and certify to the State Comptroller the amount to be
22transferred into the Tax Compliance and Administration Fund
23under this subsection. Within 10 days after receipt by the
24Comptroller of the disbursement certification to the District
25and the Tax Compliance and Administration Fund provided for in
26this Section to be given to the Comptroller by the Department,

 

 

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1the Comptroller shall cause the orders to be drawn for the
2respective amounts in accordance with directions contained in
3the certification.
4    (d) For the purpose of determining whether a tax authorized
5under this Section is applicable, a retail sale by a producer
6of coal or another mineral mined in Illinois is a sale at
7retail at the place where the coal or other mineral mined in
8Illinois is extracted from the earth. This paragraph does not
9apply to coal or another mineral when it is delivered or
10shipped by the seller to the purchaser at a point outside
11Illinois so that the sale is exempt under the United States
12Constitution as a sale in interstate or foreign commerce.
13    (e) Nothing in this Section shall be construed to authorize
14the board to impose a tax upon the privilege of engaging in any
15business that under the Constitution of the United States may
16not be made the subject of taxation by this State.
17    (f) An ordinance imposing a tax under this Section or an
18ordinance extending the imposition of a tax to an additional
19county or counties shall be certified by the board and filed
20with the Department of Revenue either (i) on or before the
21first day of April, whereupon the Department shall proceed to
22administer and enforce the tax as of the first day of July next
23following the filing; or (ii) on or before the first day of
24October, whereupon the Department shall proceed to administer
25and enforce the tax as of the first day of January next
26following the filing.

 

 

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1    (g) When certifying the amount of a monthly disbursement to
2the District under this Section, the Department shall increase
3or decrease the amounts by an amount necessary to offset any
4misallocation of previous disbursements. The offset amount
5shall be the amount erroneously disbursed within the previous 6
6months from the time a misallocation is discovered.
7(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
8100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
97-12-19; 101-604, eff. 12-13-19.)
 
10    Section 25. The Local Mass Transit District Act is amended
11by changing Section 5.01 as follows:
 
12    (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
13    Sec. 5.01. Metro East Mass Transit District; use and
14occupation taxes.
15    (a) The Board of Trustees of any Metro East Mass Transit
16District may, by ordinance adopted with the concurrence of
17two-thirds of the then trustees, impose throughout the District
18any or all of the taxes and fees provided in this Section.
19Except as otherwise provided, all taxes and fees imposed under
20this Section shall be used only for public mass transportation
21systems, and the amount used to provide mass transit service to
22unserved areas of the District shall be in the same proportion
23to the total proceeds as the number of persons residing in the
24unserved areas is to the total population of the District.

 

 

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1Except as otherwise provided in this Act, taxes imposed under
2this Section and civil penalties imposed incident thereto shall
3be collected and enforced by the State Department of Revenue.
4The Department shall have the power to administer and enforce
5the taxes and to determine all rights for refunds for erroneous
6payments of the taxes.
7    (b) The Board may impose a Metro East Mass Transit District
8Retailers' Occupation Tax upon all persons engaged in the
9business of selling tangible personal property at retail in the
10district at a rate of 1/4 of 1%, or as authorized under
11subsection (d-5) of this Section, of the gross receipts from
12the sales made in the course of such business within the
13district, except that the rate of tax imposed under this
14Section on sales of aviation fuel on or after December 1, 2019
15shall be 0.25% in Madison County unless the Metro-East Mass
16Transit District in Madison County has an "airport-related
17purpose" and any additional amount authorized under subsection
18(d-5) is expended for airport-related purposes. If there is no
19airport-related purpose to which aviation fuel tax revenue is
20dedicated, then aviation fuel is excluded from any additional
21amount authorized under subsection (d-5). The rate in St. Clair
22County shall be 0.25% unless the Metro-East Mass Transit
23District in St. Clair County has an "airport-related purpose"
24and the additional 0.50% of the 0.75% tax on aviation fuel
25imposed in that County is expended for airport-related
26purposes. If there is no airport-related purpose to which

 

 

HB4414- 103 -LRB101 16786 HLH 66179 b

1aviation fuel tax revenue is dedicated, then aviation fuel is
2excluded from the additional 0.50% of the 0.75% tax.
3    The Board must comply with the certification requirements
4for airport-related purposes under Section 2-22 of the
5Retailers' Occupation Tax Act. For purposes of this Section,
6"airport-related purposes" has the meaning ascribed in Section
76z-20.2 of the State Finance Act. This exclusion for aviation
8fuel only applies for so long as the revenue use requirements
9of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
10District.
11    The tax imposed under this Section and all civil penalties
12that may be assessed as an incident thereof shall be collected
13and enforced by the State Department of Revenue. The Department
14shall have full power to administer and enforce this Section;
15to collect all taxes and penalties so collected in the manner
16hereinafter provided; and to determine all rights to credit
17memoranda arising on account of the erroneous payment of tax or
18penalty hereunder. In the administration of, and compliance
19with, this Section, the Department and persons who are subject
20to this Section shall have the same rights, remedies,
21privileges, immunities, powers and duties, and be subject to
22the same conditions, restrictions, limitations, penalties,
23exclusions, exemptions and definitions of terms and employ the
24same modes of procedure, as are prescribed in Sections 1, 1a,
251a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
26provisions therein other than the State rate of tax), 2c, 3

 

 

HB4414- 104 -LRB101 16786 HLH 66179 b

1(except as to the disposition of taxes and penalties collected,
2and except that the retailer's discount is not allowed for
3taxes paid on aviation fuel that are subject to the revenue use
4requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
55a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
67, 8, 9, 10, 11, 12, 13, and 14 of the Retailers' Occupation
7Tax Act and Section 3-7 of the Uniform Penalty and Interest
8Act, as fully as if those provisions were set forth herein.
9    Persons subject to any tax imposed under the Section may
10reimburse themselves for their seller's tax liability
11hereunder by separately stating the tax as an additional
12charge, which charge may be stated in combination, in a single
13amount, with State taxes that sellers are required to collect
14under the Use Tax Act, in accordance with such bracket
15schedules as the Department may prescribe.
16    Whenever the Department determines that a refund should 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 warrant to be drawn for the
20amount specified, and to the person named, in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of the Metro East Mass Transit District tax fund
23established under paragraph (h) of this Section or the Local
24Government Aviation Trust Fund, as appropriate.
25    If a tax is imposed under this subsection (b), a tax shall
26also be imposed under subsections (c) and (d) of this Section.

 

 

HB4414- 105 -LRB101 16786 HLH 66179 b

1    For the purpose of determining whether a tax authorized
2under this Section is applicable, a retail sale, by a producer
3of coal or other mineral mined in Illinois, is a sale at retail
4at the place where the coal or other mineral mined in Illinois
5is extracted from the earth. This paragraph does not apply to
6coal or other mineral when it is delivered or shipped by the
7seller to the purchaser at a point outside Illinois so that the
8sale is exempt under the Federal Constitution as a sale in
9interstate or foreign commerce.
10    No tax shall be imposed or collected under this subsection
11on the sale of a motor vehicle in this State to a resident of
12another state if that motor vehicle will not be titled in this
13State.
14    Nothing in this Section shall be construed to authorize the
15Metro East Mass Transit District to impose a tax upon the
16privilege of engaging in any business which under the
17Constitution of the United States may not be made the subject
18of taxation by this State.
19    (c) If a tax has been imposed under subsection (b), a Metro
20East Mass Transit District Service Occupation Tax shall also be
21imposed upon all persons engaged, in the district, in the
22business of making sales of service, who, as an incident to
23making those sales of service, transfer tangible personal
24property within the District, either in the form of tangible
25personal property or in the form of real estate as an incident
26to a sale of service. The tax rate shall be 1/4%, or as

 

 

HB4414- 106 -LRB101 16786 HLH 66179 b

1authorized under subsection (d-5) of this Section, of the
2selling price of tangible personal property so transferred
3within the district, except that the rate of tax imposed in
4these Counties under this Section on sales of aviation fuel on
5or after December 1, 2019 shall be 0.25% in Madison County
6unless the Metro-East Mass Transit District in Madison County
7has an "airport-related purpose" and any additional amount
8authorized under subsection (d-5) is expended for
9airport-related purposes. If there is no airport-related
10purpose to which aviation fuel tax revenue is dedicated, then
11aviation fuel is excluded from any additional amount authorized
12under subsection (d-5). The rate in St. Clair County shall be
130.25% unless the Metro-East Mass Transit District in St. Clair
14County has an "airport-related purpose" and the additional
150.50% of the 0.75% tax on aviation fuel is expended for
16airport-related purposes. If there is no airport-related
17purpose to which aviation fuel tax revenue is dedicated, then
18aviation fuel is excluded from the additional 0.50% of the
190.75% tax.
20    The Board must comply with the certification requirements
21for airport-related purposes under Section 2-22 of the
22Retailers' Occupation Tax Act. For purposes of this Section,
23"airport-related purposes" has the meaning ascribed in Section
246z-20.2 of the State Finance Act. This exclusion for aviation
25fuel only applies for so long as the revenue use requirements
26of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the

 

 

HB4414- 107 -LRB101 16786 HLH 66179 b

1District.
2    The tax imposed under this paragraph and all civil
3penalties that may be assessed as an incident thereof shall be
4collected and enforced by the State Department of Revenue. The
5Department shall have full power to administer and enforce this
6paragraph; to collect all taxes and penalties due hereunder; to
7dispose of taxes and penalties so collected in the manner
8hereinafter provided; and to determine all rights to credit
9memoranda arising on account of the erroneous payment of tax or
10penalty hereunder. In the administration of, and compliance
11with this paragraph, the Department and persons who are subject
12to this paragraph shall have the same rights, remedies,
13privileges, immunities, powers and duties, and be subject to
14the same conditions, restrictions, limitations, penalties,
15exclusions, exemptions and definitions of terms and employ the
16same modes of procedure as are prescribed in Sections 1a-1, 2
17(except that the reference to State in the definition of
18supplier maintaining a place of business in this State shall
19mean the Authority), 2a, 3 through 3-50 (in respect to all
20provisions therein other than the State rate of tax), 4 (except
21that the reference to the State shall be to the Authority), 5,
227, 8 (except that the jurisdiction to which the tax shall be a
23debt to the extent indicated in that Section 8 shall be the
24District), 9 (except as to the disposition of taxes and
25penalties collected, and except that the returned merchandise
26credit for this tax may not be taken against any State tax, and

 

 

HB4414- 108 -LRB101 16786 HLH 66179 b

1except that the retailer's discount is not allowed for taxes
2paid on aviation fuel that are subject to the revenue use
3requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
411, 12 (except the reference therein to Section 2b of the
5Retailers' Occupation Tax Act), 13 (except that any reference
6to the State shall mean the District), the first paragraph of
7Section 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax
8Act and Section 3-7 of the Uniform Penalty and Interest Act, as
9fully as if those provisions were set forth herein.
10    Persons subject to any tax imposed under the authority
11granted in this paragraph may reimburse themselves for their
12serviceman's tax liability hereunder by separately stating the
13tax as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax that servicemen
15are authorized to collect under the Service Use Tax Act, in
16accordance with such bracket schedules as the Department may
17prescribe.
18    Whenever the Department determines that a refund should be
19made under this paragraph to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the warrant to be drawn for the
22amount specified, and to the person named, in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Metro East Mass Transit District tax fund
25established under paragraph (h) of this Section or the Local
26Government Aviation Trust Fund, as appropriate.

 

 

HB4414- 109 -LRB101 16786 HLH 66179 b

1    Nothing in this paragraph shall be construed to authorize
2the District to impose a tax upon the privilege of engaging in
3any business which under the Constitution of the United States
4may not be made the subject of taxation by the State.
5    (d) If a tax has been imposed under subsection (b), a Metro
6East Mass Transit District Use Tax shall also be imposed upon
7the privilege of using, in the district, any item of tangible
8personal property that is purchased outside the district at
9retail from a retailer, and that is titled or registered with
10an agency of this State's government, at a rate of 1/4%, or as
11authorized under subsection (d-5) of this Section, of the
12selling price of the tangible personal property within the
13District, as "selling price" is defined in the Use Tax Act. The
14tax shall be collected from persons whose Illinois address for
15titling or registration purposes is given as being in the
16District. The tax shall be collected by the Department of
17Revenue for the Metro East Mass Transit District. The tax must
18be paid to the State, or an exemption determination must be
19obtained from the Department of Revenue, before the title or
20certificate of registration for the property may be issued. The
21tax or proof of exemption may be transmitted to the Department
22by way of the State agency with which, or the State officer
23with whom, the tangible personal property must be titled or
24registered if the Department and the State agency or State
25officer determine that this procedure will expedite the
26processing of applications for title or registration.

 

 

HB4414- 110 -LRB101 16786 HLH 66179 b

1    The Department shall have full power to administer and
2enforce this paragraph; to collect all taxes, penalties and
3interest due hereunder; to dispose of taxes, penalties and
4interest so collected in the manner hereinafter provided; and
5to determine all rights to credit memoranda or refunds arising
6on account of the erroneous payment of tax, penalty or interest
7hereunder. In the administration of, and compliance with, this
8paragraph, the Department and persons who are subject to this
9paragraph shall have the same rights, remedies, privileges,
10immunities, powers and duties, and be subject to the same
11conditions, restrictions, limitations, penalties, exclusions,
12exemptions and definitions of terms and employ the same modes
13of procedure, as are prescribed in Sections 2 (except the
14definition of "retailer maintaining a place of business in this
15State"), 3 through 3-80 (except provisions pertaining to the
16State rate of tax, and except provisions concerning collection
17or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
1819 (except the portions pertaining to claims by retailers and
19except the last paragraph concerning refunds), 20, 21 and 22 of
20the Use Tax Act and Section 3-7 of the Uniform Penalty and
21Interest Act, that are not inconsistent with this paragraph, as
22fully as if those provisions were set forth herein.
23    Whenever the Department determines that a refund should be
24made under this paragraph 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

 

 

HB4414- 111 -LRB101 16786 HLH 66179 b

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 Metro East Mass Transit District tax fund
4established under paragraph (h) of this Section.
5    (d-5) (A) The county board of any county participating in
6the Metro East Mass Transit District may authorize, by
7ordinance, a referendum on the question of whether the tax
8rates for the Metro East Mass Transit District Retailers'
9Occupation Tax, the Metro East Mass Transit District Service
10Occupation Tax, and the Metro East Mass Transit District Use
11Tax for the District should be increased from 0.25% to 0.75%.
12Upon adopting the ordinance, the county board shall certify the
13proposition to the proper election officials who shall submit
14the proposition to the voters of the District at the next
15election, in accordance with the general election law.
16    The proposition shall be in substantially the following
17form:
18        Shall the tax rates for the Metro East Mass Transit
19    District Retailers' Occupation Tax, the Metro East Mass
20    Transit District Service Occupation Tax, and the Metro East
21    Mass Transit District Use Tax be increased from 0.25% to
22    0.75%?
23    (B) Two thousand five hundred electors of any Metro East
24Mass Transit District may petition the Chief Judge of the
25Circuit Court, or any judge of that Circuit designated by the
26Chief Judge, in which that District is located to cause to be

 

 

HB4414- 112 -LRB101 16786 HLH 66179 b

1submitted to a vote of the electors the question whether the
2tax rates for the Metro East Mass Transit District Retailers'
3Occupation Tax, the Metro East Mass Transit District Service
4Occupation Tax, and the Metro East Mass Transit District Use
5Tax for the District should be increased from 0.25% to 0.75%.
6    Upon submission of such petition the court shall set a date
7not less than 10 nor more than 30 days thereafter for a hearing
8on the sufficiency thereof. Notice of the filing of such
9petition and of such date shall be given in writing to the
10District and the County Clerk at least 7 days before the date
11of such hearing.
12    If such petition is found sufficient, the court shall enter
13an order to submit that proposition at the next election, in
14accordance with general election law.
15    The form of the petition shall be in substantially the
16following form: To the Circuit Court of the County of (name of
17county):
18        We, the undersigned electors of the (name of transit
19    district), respectfully petition your honor to submit to a
20    vote of the electors of (name of transit district) the
21    following proposition:
22        Shall the tax rates for the Metro East Mass Transit
23    District Retailers' Occupation Tax, the Metro East Mass
24    Transit District Service Occupation Tax, and the Metro East
25    Mass Transit District Use Tax be increased from 0.25% to
26    0.75%?

 

 

HB4414- 113 -LRB101 16786 HLH 66179 b

1        Name                Address, with Street and Number.
2..............................................................
3..............................................................
4    (C) The votes shall be recorded as "YES" or "NO". If a
5majority of all votes cast on the proposition are for the
6increase in the tax rates, the Metro East Mass Transit District
7shall begin imposing the increased rates in the District, and
8the Department of Revenue shall begin collecting the increased
9amounts, as provided under this Section. An ordinance imposing
10or discontinuing a tax hereunder or effecting a change in the
11rate thereof shall be adopted and a certified copy thereof
12filed with the Department on or before the first day of
13October, whereupon the Department shall proceed to administer
14and enforce this Section as of the first day of January next
15following the adoption and filing, or on or before the first
16day of April, whereupon the Department shall proceed to
17administer and enforce this Section as of the first day of July
18next following the adoption and filing.
19    (D) If the voters have approved a referendum under this
20subsection, before November 1, 1994, to increase the tax rate
21under this subsection, the Metro East Mass Transit District
22Board of Trustees may adopt by a majority vote an ordinance at
23any time before January 1, 1995 that excludes from the rate
24increase tangible personal property that is titled or
25registered with an agency of this State's government. The
26ordinance excluding titled or registered tangible personal

 

 

HB4414- 114 -LRB101 16786 HLH 66179 b

1property from the rate increase must be filed with the
2Department at least 15 days before its effective date. At any
3time after adopting an ordinance excluding from the rate
4increase tangible personal property that is titled or
5registered with an agency of this State's government, the Metro
6East Mass Transit District Board of Trustees may adopt an
7ordinance applying the rate increase to that tangible personal
8property. The ordinance shall be adopted, and a certified copy
9of that ordinance shall be filed with the Department, on or
10before October 1, whereupon the Department shall proceed to
11administer and enforce the rate increase against tangible
12personal property titled or registered with an agency of this
13State's government as of the following January 1. After
14December 31, 1995, any reimposed rate increase in effect under
15this subsection shall no longer apply to tangible personal
16property titled or registered with an agency of this State's
17government. Beginning January 1, 1996, the Board of Trustees of
18any Metro East Mass Transit District may never reimpose a
19previously excluded tax rate increase on tangible personal
20property titled or registered with an agency of this State's
21government. After July 1, 2004, if the voters have approved a
22referendum under this subsection to increase the tax rate under
23this subsection, the Metro East Mass Transit District Board of
24Trustees may adopt by a majority vote an ordinance that
25excludes from the rate increase tangible personal property that
26is titled or registered with an agency of this State's

 

 

HB4414- 115 -LRB101 16786 HLH 66179 b

1government. The ordinance excluding titled or registered
2tangible personal property from the rate increase shall be
3adopted, and a certified copy of that ordinance shall be filed
4with the Department on or before October 1, whereupon the
5Department shall administer and enforce this exclusion from the
6rate increase as of the following January 1, or on or before
7April 1, whereupon the Department shall administer and enforce
8this exclusion from the rate increase as of the following July
91. The Board of Trustees of any Metro East Mass Transit
10District may never reimpose a previously excluded tax rate
11increase on tangible personal property titled or registered
12with an agency of this State's government.
13    (d-6) If the Board of Trustees of any Metro East Mass
14Transit District has imposed a rate increase under subsection
15(d-5) and filed an ordinance with the Department of Revenue
16excluding titled property from the higher rate, then that Board
17may, by ordinance adopted with the concurrence of two-thirds of
18the then trustees, impose throughout the District a fee. The
19fee on the excluded property shall not exceed $20 per retail
20transaction or an amount equal to the amount of tax excluded,
21whichever is less, on tangible personal property that is titled
22or registered with an agency of this State's government.
23Beginning July 1, 2004, the fee shall apply only to titled
24property that is subject to either the Metro East Mass Transit
25District Retailers' Occupation Tax or the Metro East Mass
26Transit District Service Occupation Tax. No fee shall be

 

 

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1imposed or collected under this subsection on the sale of a
2motor vehicle in this State to a resident of another state if
3that motor vehicle will not be titled in this State.
4    (d-7) Until June 30, 2004, if a fee has been imposed under
5subsection (d-6), a fee shall also be imposed upon the
6privilege of using, in the district, any item of tangible
7personal property that is titled or registered with any agency
8of this State's government, in an amount equal to the amount of
9the fee imposed under subsection (d-6).
10    (d-7.1) Beginning July 1, 2004, any fee imposed by the
11Board of Trustees of any Metro East Mass Transit District under
12subsection (d-6) and all civil penalties that may be assessed
13as an incident of the fees shall be collected and enforced by
14the State Department of Revenue. Reference to "taxes" in this
15Section shall be construed to apply to the administration,
16payment, and remittance of all fees under this Section. For
17purposes of any fee imposed under subsection (d-6), 4% of the
18fee, penalty, and interest received by the Department in the
19first 12 months that the fee is collected and enforced by the
20Department and 2% of the fee, penalty, and interest following
21the first 12 months (except the amount collected on aviation
22fuel sold on or after December 1, 2019) shall be deposited into
23the Tax Compliance and Administration Fund and shall be used by
24the Department, subject to appropriation, to cover the costs of
25the Department. No retailers' discount shall apply to any fee
26imposed under subsection (d-6).

 

 

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1    (d-8) No item of titled property shall be subject to both
2the higher rate approved by referendum, as authorized under
3subsection (d-5), and any fee imposed under subsection (d-6) or
4(d-7).
5    (d-9) (Blank).
6    (d-10) (Blank).
7    (e) A certificate of registration issued by the State
8Department of Revenue to a retailer under the Retailers'
9Occupation Tax Act or under the Service Occupation Tax Act
10shall permit the registrant to engage in a business that is
11taxed under the tax imposed under paragraphs (b), (c) or (d) of
12this Section and no additional registration shall be required
13under the tax. A certificate issued under the Use Tax Act or
14the Service Use Tax Act shall be applicable with regard to any
15tax imposed under paragraph (c) of this Section.
16    (f) (Blank).
17    (g) Any ordinance imposing or discontinuing any tax under
18this Section shall be adopted and a certified copy thereof
19filed with the Department on or before June 1, whereupon the
20Department of Revenue shall proceed to administer and enforce
21this Section on behalf of the Metro East Mass Transit District
22as of September 1 next following such adoption and filing.
23Beginning January 1, 1992, an ordinance or resolution imposing
24or discontinuing the tax hereunder shall be adopted and a
25certified copy thereof filed with the Department on or before
26the first day of July, whereupon the Department shall proceed

 

 

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1to administer and enforce this Section as of the first day of
2October next following such adoption and filing. Beginning
3January 1, 1993, except as provided in subsection (d-5) of this
4Section, an ordinance or resolution imposing or discontinuing
5the tax hereunder shall be adopted and a certified copy thereof
6filed with the Department on or before the first day of
7October, whereupon the Department shall proceed to administer
8and enforce this Section as of the first day of January next
9following such adoption and filing, or, beginning January 1,
102004, on or before the first day of April, whereupon the
11Department shall proceed to administer and enforce this Section
12as of the first day of July next following the adoption and
13filing.
14    (h) Except as provided in subsection (d-7.1), the State
15Department of Revenue shall, upon collecting any taxes as
16provided in this Section, pay the taxes over to the State
17Treasurer as trustee for the District. The taxes shall be held
18in a trust fund outside the State Treasury. If an
19airport-related purpose has been certified, taxes and
20penalties collected in St. Clair County on aviation fuel sold
21on or after December 1, 2019 from the 0.50% of the 0.75% rate
22shall be immediately paid over by the Department to the State
23Treasurer, ex officio, as trustee, for deposit into the Local
24Government Aviation Trust Fund. The Department shall only pay
25moneys into the Local Government Aviation Trust Fund under this
26Act for so long as the revenue use requirements of 49 U.S.C.

 

 

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147107(b) and 49 U.S.C. 47133 are binding on the District.
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. The Department shall make this
10certification only if the local mass transit district imposes a
11tax on real property as provided in the definition of "local
12sales taxes" under the Innovation Development and Economy Act.
13    After the monthly transfer to the STAR Bonds Revenue Fund,
14on or before the 25th day of each calendar month, the State
15Department of Revenue shall prepare and certify to the
16Comptroller of the State of Illinois the amount to be paid to
17the District, which shall be the amount (not including credit
18memoranda and not including taxes and penalties collected on
19aviation fuel sold on or after December 1, 2019 that are
20deposited into the Local Government Aviation Trust Fund)
21collected under this Section 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
25any amount equal to the amount of refunds made during the
26second preceding calendar month by the Department on behalf of

 

 

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1the District, 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
4District, and less any amounts that are transferred to the STAR
5Bonds Revenue Fund, less 1% 1.5% of the remainder, which the
6Department shall transfer into the Tax Compliance and
7Administration Fund. The Department, at the time of each
8monthly disbursement to the District, shall prepare and certify
9to the State Comptroller the amount to be transferred into the
10Tax Compliance and Administration Fund under this subsection.
11Within 10 days after receipt by the Comptroller of the
12certification of the amount to be paid to the District and the
13Tax Compliance and Administration Fund, the Comptroller shall
14cause an order to be drawn for payment for the amount in
15accordance with the direction in the certification.
16(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
17101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
18    Section 30. The Regional Transportation Authority Act is
19amended by changing Section 4.03 as follows:
 
20    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
21    Sec. 4.03. Taxes.
22    (a) In order to carry out any of the powers or purposes of
23the Authority, the Board may by ordinance adopted with the
24concurrence of 12 of the then Directors, impose throughout the

 

 

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1metropolitan region any or all of the taxes provided in this
2Section. Except as otherwise provided in this Act, taxes
3imposed under this Section and civil penalties imposed incident
4thereto shall be collected and enforced by the State Department
5of Revenue. The Department shall have the power to administer
6and enforce the taxes and to determine all rights for refunds
7for erroneous payments of the taxes. Nothing in Public Act
895-708 is intended to invalidate any taxes currently imposed by
9the Authority. The increased vote requirements to impose a tax
10shall only apply to actions taken after January 1, 2008 (the
11effective date of Public Act 95-708).
12    (b) The Board may impose a public transportation tax upon
13all persons engaged in the metropolitan region in the business
14of selling at retail motor fuel for operation of motor vehicles
15upon public highways. The tax shall be at a rate not to exceed
165% of the gross receipts from the sales of motor fuel in the
17course of the business. As used in this Act, the term "motor
18fuel" shall have the same meaning as in the Motor Fuel Tax Law.
19The Board may provide for details of the tax. The provisions of
20any tax shall conform, as closely as may be practicable, to the
21provisions of the Municipal Retailers Occupation Tax Act,
22including without limitation, conformity to penalties with
23respect to the tax imposed and as to the powers of the State
24Department of Revenue to promulgate and enforce rules and
25regulations relating to the administration and enforcement of
26the provisions of the tax imposed, except that reference in the

 

 

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

 

 

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1parking spaces for more than 2 vehicles at which motor vehicles
2are permitted to park in return for an hourly, daily, or other
3periodic fee, whether publicly or privately owned, but does not
4include parking spaces on a public street, the use of which is
5regulated by parking meters.
6    (e) The Board may impose a Regional Transportation
7Authority Retailers' Occupation Tax upon all persons engaged in
8the business of selling tangible personal property at retail in
9the metropolitan region. In Cook County, the tax rate shall be
101.25% of the gross receipts from sales of tangible personal
11property taxed at the 1% rate under the Retailers' Occupation
12Tax Act, and 1% of the gross receipts from other taxable sales
13made in the course of that business. In DuPage, Kane, Lake,
14McHenry, and Will counties, the tax rate shall be 0.75% of the
15gross receipts from all taxable sales made in the course of
16that business. The rate of tax imposed in DuPage, Kane, Lake,
17McHenry, and Will counties under this Section on sales of
18aviation fuel on or after December 1, 2019 shall, however, be
190.25% unless the Regional Transportation Authority in DuPage,
20Kane, Lake, McHenry, and Will counties has an "airport-related
21purpose" and the additional 0.50% of the 0.75% tax on aviation
22fuel is expended for airport-related purposes. If there is no
23airport-related purpose to which aviation fuel tax revenue is
24dedicated, then aviation fuel is excluded from the additional
250.50% of the 0.75% tax. The tax imposed under this Section and
26all civil penalties that may be assessed as an incident thereof

 

 

HB4414- 124 -LRB101 16786 HLH 66179 b

1shall be collected and enforced by the State Department of
2Revenue. The Department shall have full power to administer and
3enforce this Section; to collect all taxes and penalties so
4collected in the manner hereinafter provided; and to determine
5all rights to credit memoranda arising on account of the
6erroneous payment of tax or penalty hereunder. In the
7administration of, and compliance with this Section, the
8Department and persons who are subject to this Section shall
9have the same rights, remedies, privileges, immunities,
10powers, and duties, and be subject to the same conditions,
11restrictions, limitations, penalties, exclusions, exemptions,
12and definitions of terms, and employ the same modes of
13procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
141e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
15therein other than the State rate of tax), 2c, 3 (except as to
16the disposition of taxes and penalties collected, and except
17that the retailer's discount is not allowed for taxes paid on
18aviation fuel that are subject to the revenue use requirements
19of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
205d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
2110, 11, 12, and 13 of the Retailers' Occupation Tax Act and
22Section 3-7 of the Uniform Penalty and Interest Act, as fully
23as if those provisions were set forth herein.
24    The Board and DuPage, Kane, Lake, McHenry, and Will
25counties must comply with the certification requirements for
26airport-related purposes under Section 2-22 of the Retailers'

 

 

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1Occupation Tax Act. For purposes of this Section,
2"airport-related purposes" has the meaning ascribed in Section
36z-20.2 of the State Finance Act. This exclusion for aviation
4fuel only applies for so long as the revenue use requirements
5of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
6Authority.
7    Persons subject to any tax imposed under the authority
8granted in this Section may reimburse themselves for their
9seller's tax liability hereunder by separately stating the tax
10as an additional charge, which charge may be stated in
11combination in a single amount with State taxes that sellers
12are required to collect under the Use Tax Act, under any
13bracket schedules the Department may prescribe.
14    Whenever the Department determines that a refund should be
15made under this Section to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the warrant to be drawn for the
18amount specified, and to the person named, in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the Regional Transportation Authority tax fund
21established under paragraph (n) of this Section or the Local
22Government Aviation Trust Fund, as appropriate.
23    If a tax is imposed under this subsection (e), a tax shall
24also be imposed under subsections (f) and (g) of this Section.
25    For the purpose of determining whether a tax authorized
26under this Section is applicable, a retail sale by a producer

 

 

HB4414- 126 -LRB101 16786 HLH 66179 b

1of coal or other mineral mined in Illinois, is a sale at retail
2at the place where the coal or other mineral mined in Illinois
3is extracted from the earth. This paragraph does not apply to
4coal or other mineral when it is delivered or shipped by the
5seller to the purchaser at a point outside Illinois so that the
6sale is exempt under the Federal Constitution as a sale in
7interstate or foreign commerce.
8    No tax shall be imposed or collected under this subsection
9on the sale of a motor vehicle in this State to a resident of
10another state if that motor vehicle will not be titled in this
11State.
12    Nothing in this Section shall be construed to authorize the
13Regional Transportation Authority to impose a tax upon the
14privilege of engaging in any business that under the
15Constitution of the United States may not be made the subject
16of taxation by this State.
17    (f) If a tax has been imposed under paragraph (e), a
18Regional Transportation Authority Service Occupation Tax shall
19also be imposed upon all persons engaged, in the metropolitan
20region in the business of making sales of service, who as an
21incident to making the sales of service, transfer tangible
22personal property within the metropolitan region, either in the
23form of tangible personal property or in the form of real
24estate as an incident to a sale of service. In Cook County, the
25tax rate shall be: (1) 1.25% of the serviceman's cost price of
26food prepared for immediate consumption and transferred

 

 

HB4414- 127 -LRB101 16786 HLH 66179 b

1incident to a sale of service subject to the service occupation
2tax by an entity licensed under the Hospital Licensing Act, the
3Nursing Home Care Act, the Specialized Mental Health
4Rehabilitation Act of 2013, the ID/DD Community Care Act, or
5the MC/DD Act that is located in the metropolitan region; (2)
61.25% of the selling price of tangible personal property taxed
7at the 1% rate under the Service Occupation Tax Act; and (3) 1%
8of the selling price from other taxable sales of tangible
9personal property transferred. In DuPage, Kane, Lake, McHenry,
10and Will counties, the rate shall be 0.75% of the selling price
11of all tangible personal property transferred. The rate of tax
12imposed in DuPage, Kane, Lake, McHenry, and Will counties under
13this Section on sales of aviation fuel on or after December 1,
142019 shall, however, be 0.25% unless the Regional
15Transportation Authority in DuPage, Kane, Lake, McHenry, and
16Will counties has an "airport-related purpose" and the
17additional 0.50% of the 0.75% tax on aviation fuel is expended
18for airport-related purposes. If there is no airport-related
19purpose to which aviation fuel tax revenue is dedicated, then
20aviation fuel is excluded from the additional 0.5% of the 0.75%
21tax.
22    The Board and DuPage, Kane, Lake, McHenry, and Will
23counties must comply with the certification requirements for
24airport-related purposes under Section 2-22 of the Retailers'
25Occupation Tax Act. For purposes of this Section,
26"airport-related purposes" has the meaning ascribed in Section

 

 

HB4414- 128 -LRB101 16786 HLH 66179 b

16z-20.2 of the State Finance Act. This exclusion for aviation
2fuel only applies for so long as the revenue use requirements
3of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
4Authority.
5    The tax imposed under this paragraph and all civil
6penalties that may be assessed as an incident thereof shall be
7collected and enforced by the State Department of Revenue. The
8Department shall have full power to administer and enforce this
9paragraph; to collect all taxes and penalties due hereunder; to
10dispose of taxes and penalties collected in the manner
11hereinafter provided; and to determine all rights to credit
12memoranda arising on account of the erroneous payment of tax or
13penalty hereunder. In the administration of and compliance with
14this paragraph, the Department and persons who are subject to
15this paragraph shall have the same rights, remedies,
16privileges, immunities, powers, and duties, and be subject to
17the same conditions, restrictions, limitations, penalties,
18exclusions, exemptions, and definitions of terms, and employ
19the same modes of procedure, as are prescribed in Sections
201a-1, 2, 2a, 3 through 3-50 (in respect to all provisions
21therein other than the State rate of tax), 4 (except that the
22reference to the State shall be to the Authority), 5, 7, 8
23(except that the jurisdiction to which the tax shall be a debt
24to the extent indicated in that Section 8 shall be the
25Authority), 9 (except as to the disposition of taxes and
26penalties collected, and except that the returned merchandise

 

 

HB4414- 129 -LRB101 16786 HLH 66179 b

1credit for this tax may not be taken against any State tax, and
2except that the retailer's discount is not allowed for taxes
3paid on aviation fuel that are subject to the revenue use
4requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
511, 12 (except the reference therein to Section 2b of the
6Retailers' Occupation Tax Act), 13 (except that any reference
7to the State shall mean the Authority), the first paragraph of
8Section 15, 16, 17, 18, 19, and 20 of the Service Occupation
9Tax Act and Section 3-7 of the Uniform Penalty and Interest
10Act, as fully as if those provisions were set forth herein.
11    Persons subject to any tax imposed under the authority
12granted in this paragraph may reimburse themselves for their
13serviceman's tax liability hereunder by separately stating the
14tax as an additional charge, that charge may be stated in
15combination in a single amount with State tax that servicemen
16are authorized to collect under the Service Use Tax Act, under
17any bracket schedules the Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this paragraph to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the warrant to be drawn for the
22amount specified, and to the person named in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the Regional Transportation Authority tax fund
25established under paragraph (n) of this Section or the Local
26Government Aviation Trust Fund, as appropriate.

 

 

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1    Nothing in this paragraph shall be construed to authorize
2the Authority to impose a tax upon the privilege of engaging in
3any business that under the Constitution of the United States
4may not be made the subject of taxation by the State.
5    (g) If a tax has been imposed under paragraph (e), a tax
6shall also be imposed upon the privilege of using in the
7metropolitan region, any item of tangible personal property
8that is purchased outside the metropolitan region at retail
9from a retailer, and that is titled or registered with an
10agency of this State's government. In Cook County, the tax rate
11shall be 1% of the selling price of the tangible personal
12property, as "selling price" is defined in the Use Tax Act. In
13DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
14shall be 0.75% of the selling price of the tangible personal
15property, as "selling price" is defined in the Use Tax Act. The
16tax shall be collected from persons whose Illinois address for
17titling or registration purposes is given as being in the
18metropolitan region. The tax shall be collected by the
19Department of Revenue for the Regional Transportation
20Authority. The tax must be paid to the State, or an exemption
21determination must be obtained from the Department of Revenue,
22before the title or certificate of registration for the
23property may be issued. The tax or proof of exemption may be
24transmitted to the Department by way of the State agency with
25which, or the State officer with whom, the tangible personal
26property must be titled or registered if the Department and the

 

 

HB4414- 131 -LRB101 16786 HLH 66179 b

1State agency or State officer determine that this procedure
2will expedite the processing of applications for title or
3registration.
4    The Department shall have full power to administer and
5enforce this paragraph; to collect all taxes, penalties, and
6interest due hereunder; to dispose of taxes, penalties, and
7interest collected in the manner hereinafter provided; and to
8determine all rights to credit memoranda or refunds arising on
9account of the erroneous payment of tax, penalty, or interest
10hereunder. In the administration of and compliance with this
11paragraph, the Department and persons who are subject to this
12paragraph shall have the same rights, remedies, privileges,
13immunities, powers, and duties, and be subject to the same
14conditions, restrictions, limitations, penalties, exclusions,
15exemptions, and definitions of terms and employ the same modes
16of procedure, as are prescribed in Sections 2 (except the
17definition of "retailer maintaining a place of business in this
18State"), 3 through 3-80 (except provisions pertaining to the
19State rate of tax, and except provisions concerning collection
20or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
2119 (except the portions pertaining to claims by retailers and
22except the last paragraph concerning refunds), 20, 21, and 22
23of the Use Tax Act, and are not inconsistent with this
24paragraph, as fully as if those provisions were set forth
25herein.
26    Whenever the Department determines that a refund should be

 

 

HB4414- 132 -LRB101 16786 HLH 66179 b

1made under this paragraph to a claimant instead of issuing a
2credit memorandum, the Department shall notify the State
3Comptroller, who shall cause the order to be drawn for the
4amount specified, and to the person named in the notification
5from the Department. The refund shall be paid by the State
6Treasurer out of the Regional Transportation Authority tax fund
7established under paragraph (n) of this Section.
8    (h) The Authority may impose a replacement vehicle tax of
9$50 on any passenger car as defined in Section 1-157 of the
10Illinois Vehicle Code purchased within the metropolitan region
11by or on behalf of an insurance company to replace a passenger
12car of an insured person in settlement of a total loss claim.
13The tax imposed may not become effective before the first day
14of the month following the passage of the ordinance imposing
15the tax and receipt of a certified copy of the ordinance by the
16Department of Revenue. The Department of Revenue shall collect
17the tax for the Authority in accordance with Sections 3-2002
18and 3-2003 of the Illinois Vehicle Code.
19    The Department shall immediately pay over to the State
20Treasurer, ex officio, as trustee, all taxes collected
21hereunder.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the Department
24of Revenue, the Comptroller shall order transferred, and the
25Treasurer shall transfer, to the STAR Bonds Revenue Fund the
26local sales tax increment, as defined in the Innovation

 

 

HB4414- 133 -LRB101 16786 HLH 66179 b

1Development and Economy Act, collected under this Section
2during the second preceding calendar month for sales within a
3STAR bond district.
4    After the monthly transfer to the STAR Bonds Revenue Fund,
5on or before the 25th day of each calendar month, the
6Department shall prepare and certify to the Comptroller the
7disbursement of stated sums of money to the Authority. The
8amount to be paid to the Authority shall be the amount
9collected hereunder during the second preceding calendar month
10by the Department, less any amount determined by the Department
11to be necessary for the payment of refunds, and less any
12amounts that are transferred to the STAR Bonds Revenue Fund.
13Within 10 days after receipt by the Comptroller of the
14disbursement certification to the Authority provided for in
15this Section to be given to the Comptroller by the Department,
16the Comptroller shall cause the orders to be drawn for that
17amount in accordance with the directions contained in the
18certification.
19    (i) The Board may not impose any other taxes except as it
20may from time to time be authorized by law to impose.
21    (j) 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), (e), (f) or
26(g) of this Section and no additional registration shall be

 

 

HB4414- 134 -LRB101 16786 HLH 66179 b

1required under the tax. A certificate issued under the Use Tax
2Act or the Service Use Tax Act shall be applicable with regard
3to any tax imposed under paragraph (c) of this Section.
4    (k) The provisions of any tax imposed under paragraph (c)
5of this Section shall conform as closely as may be practicable
6to the provisions of the Use Tax Act, including without
7limitation conformity as to penalties with respect to the tax
8imposed and as to the powers of the State Department of Revenue
9to promulgate and enforce rules and regulations relating to the
10administration and enforcement of the provisions of the tax
11imposed. The taxes shall be imposed only on use within the
12metropolitan region and at rates as provided in the paragraph.
13    (l) The Board in imposing any tax as provided in paragraphs
14(b) and (c) of this Section, shall, after seeking the advice of
15the State Department of Revenue, provide means for retailers,
16users or purchasers of motor fuel for purposes other than those
17with regard to which the taxes may be imposed as provided in
18those paragraphs to receive refunds of taxes improperly paid,
19which provisions may be at variance with the refund provisions
20as applicable under the Municipal Retailers Occupation Tax Act.
21The State Department of Revenue may provide for certificates of
22registration for users or purchasers of motor fuel for purposes
23other than those with regard to which taxes may be imposed as
24provided in paragraphs (b) and (c) of this Section to
25facilitate the reporting and nontaxability of the exempt sales
26or uses.

 

 

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1    (m) Any ordinance imposing or discontinuing any tax under
2this Section shall be adopted and a certified copy thereof
3filed with the Department on or before June 1, whereupon the
4Department of Revenue shall proceed to administer and enforce
5this Section on behalf of the Regional Transportation Authority
6as of September 1 next following such adoption and filing.
7Beginning January 1, 1992, an ordinance or resolution imposing
8or discontinuing the tax hereunder shall be adopted and a
9certified copy thereof filed with the Department on or before
10the first day of July, whereupon the Department shall proceed
11to administer and enforce this Section as of the first day of
12October next following such adoption and filing. Beginning
13January 1, 1993, an ordinance or resolution imposing,
14increasing, decreasing, or discontinuing the tax hereunder
15shall be adopted and a certified copy thereof filed with the
16Department, whereupon the Department shall proceed to
17administer and enforce this Section as of the first day of the
18first month to occur not less than 60 days following such
19adoption and filing. Any ordinance or resolution of the
20Authority imposing a tax under this Section and in effect on
21August 1, 2007 shall remain in full force and effect and shall
22be administered by the Department of Revenue under the terms
23and conditions and rates of tax established by such ordinance
24or resolution until the Department begins administering and
25enforcing an increased tax under this Section as authorized by
26Public Act 95-708. The tax rates authorized by Public Act

 

 

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195-708 are effective only if imposed by ordinance of the
2Authority.
3    (n) Except as otherwise provided in this subsection (n),
4the State Department of Revenue shall, upon collecting any
5taxes as provided in this Section, pay the taxes over to the
6State Treasurer as trustee for the Authority. The taxes shall
7be held in a trust fund outside the State Treasury. If an
8airport-related purpose has been certified, taxes and
9penalties collected in DuPage, Kane, Lake, McHenry and Will
10counties on aviation fuel sold on or after December 1, 2019
11from the 0.50% of the 0.75% rate shall be immediately paid over
12by the Department to the State Treasurer, ex officio, as
13trustee, for deposit into the Local Government Aviation Trust
14Fund. The Department shall only pay moneys into the Local
15Government Aviation Trust Fund under this Act for so long as
16the revenue use requirements of 49 U.S.C. 47107(b) and 49
17U.S.C. 47133 are binding on the Authority. On or before the
1825th day of each calendar month, the State Department of
19Revenue shall prepare and certify to the Comptroller of the
20State of Illinois and to the Authority (i) the amount of taxes
21collected in each county other than Cook County in the
22metropolitan region, (not including, if an airport-related
23purpose has been certified, the taxes and penalties collected
24from the 0.50% of the 0.75% rate on aviation fuel sold on or
25after December 1, 2019 that are deposited into the Local
26Government Aviation Trust Fund) (ii) the amount of taxes

 

 

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

 

 

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

 

 

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1and (d) of the Section unless any tax authorized by paragraph
2(e), (f), or (g) of this Section becomes ineffective by means
3other than an ordinance of the Board.
4    (q) Any existing rights, remedies and obligations
5(including enforcement by the Regional Transportation
6Authority) arising under any tax imposed under paragraph (b),
7(c), or (d) of this Section shall not be affected by the
8imposition of a tax under paragraph (e), (f), or (g) of this
9Section.
10(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
11100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
127-12-19; 101-604, eff. 12-13-19.)
 
13    Section 35. The Water Commission Act of 1985 is amended by
14changing Section 4 as follows:
 
15    (70 ILCS 3720/4)  (from Ch. 111 2/3, par. 254)
16    Sec. 4. Taxes.
17    (a) The board of commissioners of any county water
18commission may, by ordinance, impose throughout the territory
19of the commission any or all of the taxes provided in this
20Section for its corporate purposes. However, no county water
21commission may impose any such tax unless the commission
22certifies the proposition of imposing the tax to the proper
23election officials, who shall submit the proposition to the
24voters residing in the territory at an election in accordance

 

 

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1with the general election law, and the proposition has been
2approved by a majority of those voting on the proposition.
3    The proposition shall be in the form provided in Section 5
4or shall be substantially in the following form:
5-------------------------------------------------------------
6    Shall the (insert corporate
7name of county water commission)           YES
8impose (state type of tax or         ------------------------
9taxes to be imposed) at the                NO
10rate of 1/4%?
11-------------------------------------------------------------
12    Taxes imposed under this Section and civil penalties
13imposed incident thereto shall be collected and enforced by the
14State Department of Revenue. The Department shall have the
15power to administer and enforce the taxes and to determine all
16rights for refunds for erroneous payments of the taxes.
17    (b) The board of commissioners may impose a County Water
18Commission Retailers' Occupation Tax upon all persons engaged
19in the business of selling tangible personal property at retail
20in the territory of the commission at a rate of 1/4% of the
21gross receipts from the sales made in the course of such
22business within the territory. Beginning January 1, 2021, this
23tax is not imposed on sales of aviation fuel for so long as the
24revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2547133 are binding on the District.
26    The tax imposed under this paragraph and all civil

 

 

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1penalties that may be assessed as an incident thereof shall be
2collected and enforced by the State Department of Revenue. The
3Department shall have full power to administer and enforce this
4paragraph; to collect all taxes and penalties due hereunder; to
5dispose of taxes and penalties so collected in the manner
6hereinafter provided; and to determine all rights to credit
7memoranda arising on account of the erroneous payment of tax or
8penalty hereunder. In the administration of, and compliance
9with, this paragraph, the Department and persons who are
10subject to this paragraph shall have the same rights, remedies,
11privileges, immunities, powers and duties, and be subject to
12the same conditions, restrictions, limitations, penalties,
13exclusions, exemptions and definitions of terms, and employ the
14same modes of procedure, as are prescribed in Sections 1, 1a,
151a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
16provisions therein other than the State rate of tax except that
17tangible personal property taxed at the 1% rate under the
18Retailers' Occupation Tax Act shall not be subject to tax
19hereunder), 2c, 3 (except as to the disposition of taxes and
20penalties collected, and except that the retailer's discount is
21not allowed for taxes paid on aviation fuel sold on or after
22December 1, 2019 and through December 31, 2020), 4, 5, 5a, 5b,
235c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
249, 10, 11, 12, and 13 of the Retailers' Occupation Tax Act and
25Section 3-7 of the Uniform Penalty and Interest Act, as fully
26as if those provisions were set forth herein.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this paragraph may reimburse themselves for their
3seller's tax liability hereunder by separately stating the tax
4as an additional charge, which charge may be stated in
5combination, in a single amount, with State taxes that sellers
6are required to collect under the Use Tax Act and under
7subsection (e) of Section 4.03 of the Regional Transportation
8Authority Act, in accordance with such bracket schedules as the
9Department may prescribe.
10    Whenever the Department determines that a refund should be
11made under this paragraph to a claimant instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the warrant to be drawn for the
14amount specified, and to the person named, in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of a county water commission tax fund established
17under subsection (g) of this Section.
18    For the purpose of determining whether a tax authorized
19under this paragraph 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    If a tax is imposed under this subsection (b), a tax shall
2also be imposed under subsections (c) and (d) of this Section.
3    No tax shall be imposed or collected under this subsection
4on the sale of a motor vehicle in this State to a resident of
5another state if that motor vehicle will not be titled in this
6State.
7    Nothing in this paragraph shall be construed to authorize a
8county water commission to impose a tax upon the privilege of
9engaging in any business which under the Constitution of the
10United States may not be made the subject of taxation by this
11State.
12    (c) If a tax has been imposed under subsection (b), a
13County Water Commission Service Occupation Tax shall also be
14imposed upon all persons engaged, in the territory of the
15commission, in the business of making sales of service, who, as
16an incident to making the sales of service, transfer tangible
17personal property within the territory. The tax rate shall be
181/4% of the selling price of tangible personal property so
19transferred within the territory. Beginning January 1, 2021,
20this tax is not imposed on sales of aviation fuel for so long
21as the revenue use requirements of 49 U.S.C. 47107(b) and 49
22U.S.C. 47133 are binding on the District.
23    The tax imposed under this paragraph and all civil
24penalties that may be assessed as an incident thereof shall be
25collected and enforced by the State Department of Revenue. The
26Department shall have full power to administer and enforce this

 

 

HB4414- 144 -LRB101 16786 HLH 66179 b

1paragraph; to collect all taxes and penalties due hereunder; to
2dispose of 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. In the administration of, and compliance
6with, this paragraph, the Department and persons who are
7subject to this paragraph shall have the same rights, remedies,
8privileges, immunities, powers and duties, and be subject to
9the same conditions, restrictions, limitations, penalties,
10exclusions, exemptions and definitions of terms, and employ the
11same modes of procedure, as are prescribed in Sections 1a-1, 2
12(except that the reference to State in the definition of
13supplier maintaining a place of business in this State shall
14mean the territory of the commission), 2a, 3 through 3-50 (in
15respect to all provisions therein other than the State rate of
16tax except that tangible personal property taxed at the 1% rate
17under the Service Occupation Tax Act shall not be subject to
18tax hereunder), 4 (except that the reference to the State shall
19be to the territory of the commission), 5, 7, 8 (except that
20the jurisdiction to which the tax shall be a debt to the extent
21indicated in that Section 8 shall be the commission), 9 (except
22as to the disposition of taxes and penalties collected and
23except that the returned merchandise credit for this tax may
24not be taken against any State tax, and except that the
25retailer's discount is not allowed for taxes paid on aviation
26fuel sold on or after December 1, 2019 and through December 31,

 

 

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12020), 10, 11, 12 (except the reference therein to Section 2b
2of the Retailers' Occupation Tax Act), 13 (except that any
3reference to the State shall mean the territory of the
4commission), the first paragraph of Section 15, 15.5, 16, 17,
518, 19, and 20 of the Service Occupation Tax Act as fully as if
6those provisions were set forth herein.
7    Persons subject to any tax imposed under the authority
8granted in this paragraph may reimburse themselves for their
9serviceman's tax liability hereunder by separately stating the
10tax as an additional charge, which charge may be stated in
11combination, in a single amount, with State tax that servicemen
12are authorized to collect under the Service Use Tax Act, and
13any tax for which servicemen may be liable under subsection (f)
14of Section 4.03 of the Regional Transportation Authority Act,
15in accordance with such bracket schedules as the Department may
16prescribe.
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 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 a county water commission tax fund established
24under subsection (g) of this Section.
25    Nothing in this paragraph shall be construed to authorize a
26county water commission to impose a tax upon the privilege of

 

 

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1engaging in any business which under the Constitution of the
2United States may not be made the subject of taxation by the
3State.
4    (d) If a tax has been imposed under subsection (b), a tax
5shall also be imposed upon the privilege of using, in the
6territory of the commission, any item of tangible personal
7property that is purchased outside the territory at retail from
8a retailer, and that is titled or registered with an agency of
9this State's government, at a rate of 1/4% of the selling price
10of the tangible personal property within the territory, as
11"selling price" is defined in the Use Tax Act. The tax shall be
12collected from persons whose Illinois address for titling or
13registration purposes is given as being in the territory. The
14tax shall be collected by the Department of Revenue for a
15county water commission. The tax must be paid to the State, or
16an exemption determination must be obtained from the Department
17of Revenue, before the title or certificate of registration for
18the property may be issued. The tax or proof of exemption may
19be transmitted to the Department by way of the State agency
20with which, or the State officer with whom, the tangible
21personal property must be titled or registered if the
22Department and the State agency or State officer determine that
23this procedure will expedite the processing of applications for
24title or registration.
25    The Department shall have full power to administer and
26enforce this paragraph; to collect all taxes, penalties, and

 

 

HB4414- 147 -LRB101 16786 HLH 66179 b

1interest due hereunder; to dispose of taxes, penalties, and
2interest so collected in the manner hereinafter provided; and
3to determine all rights to credit memoranda or refunds arising
4on account of the erroneous payment of tax, penalty, or
5interest hereunder. In the administration of and compliance
6with this paragraph, the Department and persons who are subject
7to this paragraph shall have the same rights, remedies,
8privileges, immunities, powers, and duties, and be subject to
9the same conditions, restrictions, limitations, penalties,
10exclusions, exemptions, and definitions of terms and employ the
11same modes of procedure, as are prescribed in Sections 2
12(except the definition of "retailer maintaining a place of
13business in this State"), 3 through 3-80 (except provisions
14pertaining to the State rate of tax, and except provisions
15concerning collection or refunding of the tax by retailers), 4,
1611, 12, 12a, 14, 15, 19 (except the portions pertaining to
17claims by retailers and except the last paragraph concerning
18refunds), 20, 21, and 22 of the Use Tax Act and Section 3-7 of
19the Uniform Penalty and Interest Act that are not inconsistent
20with this paragraph, as fully as if those provisions were set
21forth herein.
22    Whenever the Department determines that a refund should be
23made under this paragraph to a claimant instead of issuing a
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the order to be drawn for the
26amount specified, and to the person named, in the notification

 

 

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1from the Department. The refund shall be paid by the State
2Treasurer out of a county water commission tax fund established
3under subsection (g) of this Section.
4    (e) A certificate of registration issued by the State
5Department of Revenue to a retailer under the Retailers'
6Occupation Tax Act or under the Service Occupation Tax Act
7shall permit the registrant to engage in a business that is
8taxed under the tax imposed under subsection (b), (c), or (d)
9of this Section and no additional registration shall be
10required under the tax. A certificate issued under the Use Tax
11Act or the Service Use Tax Act shall be applicable with regard
12to any tax imposed under subsection (c) of this Section.
13    (f) Any ordinance imposing or discontinuing any tax under
14this Section shall be adopted and a certified copy thereof
15filed with the Department on or before June 1, whereupon the
16Department of Revenue shall proceed to administer and enforce
17this Section on behalf of the county water commission as of
18September 1 next following the adoption and filing. Beginning
19January 1, 1992, an ordinance or resolution imposing or
20discontinuing the tax hereunder shall be adopted and a
21certified copy thereof filed with the Department on or before
22the first day of July, whereupon the Department shall proceed
23to administer and enforce this Section as of the first day of
24October next following such adoption and filing. Beginning
25January 1, 1993, an ordinance or resolution imposing or
26discontinuing the tax hereunder shall be adopted and a

 

 

HB4414- 149 -LRB101 16786 HLH 66179 b

1certified copy thereof filed with the Department on or before
2the first day of October, whereupon the Department shall
3proceed to administer and enforce this Section as of the first
4day of January next following such adoption and filing.
5    (g) The State Department of Revenue shall, upon collecting
6any taxes as provided in this Section, pay the taxes over to
7the State Treasurer as trustee for the commission. The taxes
8shall be held in a trust fund outside 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 State
19Department of Revenue shall prepare and certify to the
20Comptroller of the State of Illinois the amount to be paid to
21the commission, which shall be the amount (not including credit
22memoranda) collected under this Section during the second
23preceding calendar month by the Department plus an amount the
24Department determines is necessary to offset any amounts that
25were erroneously paid to a different taxing body, and not
26including any amount equal to the amount of refunds made during

 

 

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1the second preceding calendar month by the Department on behalf
2of the commission, and not including any amount that the
3Department determines is necessary to offset any amounts that
4were payable to a different taxing body but were erroneously
5paid to the commission, and less any amounts that are
6transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
7remainder, which shall be transferred into the Tax Compliance
8and Administration Fund. The Department, at the time of each
9monthly disbursement to the commission, shall prepare and
10certify to the State Comptroller the amount to be transferred
11into the Tax Compliance and Administration Fund under this
12subsection. Within 10 days after receipt by the Comptroller of
13the certification of the amount to be paid to the commission
14and the Tax Compliance and Administration Fund, the Comptroller
15shall cause an order to be drawn for the payment for the amount
16in accordance with the direction in the certification.
17    (h) Beginning June 1, 2016, any tax imposed pursuant to
18this Section may no longer be imposed or collected, unless a
19continuation of the tax is approved by the voters at a
20referendum as set forth in this Section.
21(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
22100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
236-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
24    Section 99. Effective date. This Act takes effect July 1,
252020.