101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0146

 

Introduced 1/29/2019, by Sen. Jil Tracy

 

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 5/5-1007  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
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, 2019.


LRB101 00257 HLH 45261 b

 

 

A BILL FOR

 

SB0146LRB101 00257 HLH 45261 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, 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
16the sales of food for human consumption which is to be consumed
17off the premises where it is sold (other than alcoholic
18beverages, soft drinks and food which has been prepared for
19immediate consumption) and prescription and nonprescription
20medicines, drugs, medical appliances and insulin, urine
21testing materials, syringes and needles used by diabetics. The
22tax imposed by a home rule county pursuant to this Section and
23all civil penalties that may be assessed as an incident thereof
24shall be collected and enforced by the State Department of

 

 

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1Revenue. The certificate of registration that is issued by the
2Department to a retailer under the Retailers' Occupation Tax
3Act shall permit the retailer to engage in a business that is
4taxable under any ordinance or resolution enacted pursuant to
5this Section without registering separately with the
6Department under such ordinance or resolution or under this
7Section. The Department shall have full power to administer and
8enforce this Section; to collect all taxes and penalties due
9hereunder; to dispose of taxes and penalties so collected in
10the manner hereinafter provided; and to determine all rights to
11credit memoranda arising on account of the erroneous payment of
12tax or penalty hereunder. In the administration of, and
13compliance with, this Section, the Department and persons who
14are subject to this Section shall have the same rights,
15remedies, privileges, immunities, powers and duties, and be
16subject to the same conditions, restrictions, limitations,
17penalties and definitions of terms, and employ the same modes
18of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
191e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
20provisions therein other than the State rate of tax), 4, 5, 5a,
215b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
227, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
23and Section 3-7 of the Uniform Penalty and Interest Act, as
24fully as if those provisions were set forth herein.
25    No tax may be imposed by a home rule county pursuant to
26this Section unless the county also imposes a tax at the same

 

 

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1rate pursuant to Section 5-1007.
2    Persons subject to any tax imposed pursuant to the
3authority granted in this Section may reimburse themselves for
4their seller's tax liability hereunder by separately stating
5such tax as an additional charge, which charge may be stated in
6combination, in a single amount, with State tax which sellers
7are required to collect under the Use Tax Act, pursuant to such
8bracket schedules as the Department may prescribe.
9    Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified and to the person named in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the home rule county retailers' occupation tax
16fund.
17    The Department shall forthwith pay over to the State
18Treasurer, ex officio, as trustee, all taxes and penalties
19collected hereunder.
20    As soon as possible after the first day of each month,
21beginning January 1, 2011, upon certification of the Department
22of Revenue, the Comptroller shall order transferred, and the
23Treasurer shall transfer, to the STAR Bonds Revenue Fund the
24local sales tax increment, as defined in the Innovation
25Development and Economy Act, collected under this Section
26during the second preceding calendar month for sales within a

 

 

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

 

 

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1disbursement 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. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
22100-587, eff. 6-4-18.)
 
23    (55 ILCS 5/5-1006.5)
24    Sec. 5-1006.5. Special County Retailers' Occupation Tax
25For Public Safety, Public Facilities, or Transportation.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB0146- 17 -LRB101 00257 HLH 45261 b

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

 

 

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1        As additional information on the ballot below the
2    question shall appear the following:
3        "This would mean that a consumer would pay an
4    additional (insert amount) in sales tax for every $100 of
5    tangible personal property bought at retail. If imposed,
6    the additional tax would cease being collected at the end
7    of (insert number of years), if not terminated earlier by a
8    vote of the county board."
9        For purposes of this Section, "public facilities
10    purposes" means the acquisition, development,
11    construction, reconstruction, rehabilitation, improvement,
12    financing, architectural planning, and installation of
13    capital facilities consisting of buildings, structures,
14    and durable equipment and for the acquisition and
15    improvement of real property and interest in real property
16    required, or expected to be required, in connection with
17    the public facilities, for use by the county for the
18    furnishing of governmental services to its citizens,
19    including but not limited to museums and nursing homes.
20        The votes shall be recorded as "Yes" or "No".
21    If a majority of the electors voting on the proposition
22vote in favor of it, the county may impose the tax. A county
23may not submit more than one proposition authorized by this
24Section to the electors at any one time.
25    This additional tax may not be imposed on the sales of food
26for human consumption that is to be consumed off the premises

 

 

SB0146- 19 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 20 -LRB101 00257 HLH 45261 b

11n, 2 through 2-70 (in respect to all provisions contained in
2those Sections other than the State rate of tax), 2a, 2b, 2c, 3
3(except provisions relating to transaction returns and quarter
4monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
55j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
6of the Retailers' Occupation Tax Act and Section 3-7 of the
7Uniform Penalty and Interest Act as if those provisions were
8set forth in this Section.
9    Persons subject to any tax imposed under the authority
10granted in this Section may reimburse themselves for their
11sellers' tax liability by separately stating the tax as an
12additional charge, which charge may be stated in combination,
13in a single amount, with State tax which sellers are required
14to collect under the Use Tax Act, pursuant to such bracketed
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 order 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 County Public Safety or Transportation
23Retailers' Occupation Tax Fund.
24    (b) If a tax has been imposed under subsection (a), a
25service occupation tax shall also be imposed at the same rate
26upon all persons engaged, in the county, in the business of

 

 

SB0146- 21 -LRB101 00257 HLH 45261 b

1making sales of service, who, as an incident to making those
2sales of service, transfer tangible personal property within
3the county as an incident to a sale of service. This tax may
4not be imposed on sales of food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food prepared for
7immediate consumption) and prescription and non-prescription
8medicines, drugs, medical appliances and insulin, urine
9testing materials, syringes, and needles used by diabetics. The
10tax imposed under this subsection and all civil penalties that
11may be assessed as an incident thereof shall be collected and
12enforced by the Department of Revenue. The Department has full
13power to administer and enforce this subsection; to collect all
14taxes and penalties due hereunder; to dispose of taxes and
15penalties so collected in the manner hereinafter provided; and
16to determine all rights to credit memoranda arising on account
17of the erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with this subsection, the
19Department and persons who are subject to this paragraph shall
20(i) have the same rights, remedies, privileges, immunities,
21powers, and duties, (ii) be subject to the same conditions,
22restrictions, limitations, penalties, exclusions, exemptions,
23and definitions of terms, and (iii) employ the same modes of
24procedure as are prescribed in Sections 2 (except that the
25reference to State in the definition of supplier maintaining a
26place of business in this State shall mean the county), 2a, 2b,

 

 

SB0146- 22 -LRB101 00257 HLH 45261 b

12c, 3 through 3-50 (in respect to all provisions therein other
2than the State rate of tax), 4 (except that the reference to
3the State shall be to the county), 5, 7, 8 (except that the
4jurisdiction to which the tax shall be a debt to the extent
5indicated in that Section 8 shall be the county), 9 (except as
6to the disposition of taxes and penalties collected), 10, 11,
712 (except the reference therein to Section 2b of the
8Retailers' Occupation Tax Act), 13 (except that any reference
9to the State shall mean the county), Section 15, 16, 17, 18, 19
10and 20 of the Service Occupation Tax Act and Section 3-7 of the
11Uniform Penalty and Interest Act, as fully as if those
12provisions were set forth herein.
13    Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15serviceman's tax liability by separately stating the tax as an
16additional charge, which charge may be stated in combination,
17in a single amount, with State tax that servicemen are
18authorized to collect under the Service Use Tax Act, in
19accordance with such bracket schedules as the Department may
20prescribe.
21    Whenever the Department determines that a refund should be
22made under this subsection to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State

 

 

SB0146- 23 -LRB101 00257 HLH 45261 b

1Treasurer out of the County Public Safety or Transportation
2Retailers' Occupation Fund.
3    Nothing in this subsection shall be construed to authorize
4the county to impose a tax upon the privilege of engaging in
5any business which under the Constitution of the United States
6may not be made the subject of taxation by the State.
7    (c) The Department shall immediately pay over to the State
8Treasurer, ex officio, as trustee, all taxes and penalties
9collected under this Section to be deposited into the County
10Public Safety or Transportation Retailers' Occupation Tax
11Fund, which shall be an unappropriated trust fund held outside
12of the State treasury.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to the counties from which
25retailers have paid taxes or penalties to the Department during
26the second preceding calendar month. The amount to be paid to

 

 

SB0146- 24 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 25 -LRB101 00257 HLH 45261 b

1paragraph, an allocation shall be made in March of each year to
2each county that received more than $500,000 in disbursements
3under the preceding paragraph in the preceding calendar year.
4The allocation shall be in an amount equal to the average
5monthly distribution made to each such county under the
6preceding paragraph during the preceding calendar year
7(excluding the 2 months of highest receipts). The distribution
8made in March of each year subsequent to the year in which an
9allocation was made pursuant to this paragraph and the
10preceding paragraph shall be reduced by the amount allocated
11and disbursed under this paragraph in the preceding calendar
12year. The Department shall prepare and certify to the
13Comptroller for disbursement the allocations made in
14accordance with this paragraph.
15    A county may direct, by ordinance, that all or a portion of
16the taxes and penalties collected under the Special County
17Retailers' Occupation Tax For Public Safety or Transportation
18be deposited into the Transportation Development Partnership
19Trust Fund.
20    (d) For the purpose of determining the local governmental
21unit whose tax is applicable, a retail sale by a producer of
22coal or another mineral mined in Illinois is a sale at retail
23at the place where the coal or other mineral mined in Illinois
24is extracted from the earth. This paragraph does not apply to
25coal or another mineral when it is delivered or shipped by the
26seller to the purchaser at a point outside Illinois so that the

 

 

SB0146- 26 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 27 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 28 -LRB101 00257 HLH 45261 b

1Act 96-124), with any fire protection district located in the
2county. For the purposes of this Section, "transportation"
3includes, but is not limited to, the construction, maintenance,
4operation, and improvement of public highways, any other
5purpose for which a county may expend funds under the Illinois
6Highway Code, and passenger rail transportation. For the
7purposes of this Section, "public facilities purposes"
8includes, but is not limited to, the acquisition, development,
9construction, reconstruction, rehabilitation, improvement,
10financing, architectural planning, and installation of capital
11facilities consisting of buildings, structures, and durable
12equipment and for the acquisition and improvement of real
13property and interest in real property required, or expected to
14be required, in connection with the public facilities, for use
15by the county for the furnishing of governmental services to
16its citizens, including but not limited to museums and nursing
17homes.
18    (j) The Department may promulgate rules to implement Public
19Act 95-1002 only to the extent necessary to apply the existing
20rules for the Special County Retailers' Occupation Tax for
21Public Safety to this new purpose for public facilities.
22(Source: P.A. 99-4, eff. 5-31-15; 99-217, eff. 7-31-15; 99-642,
23eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
24    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
25    Sec. 5-1007. Home Rule County Service Occupation Tax Law.

 

 

SB0146- 29 -LRB101 00257 HLH 45261 b

1The corporate authorities of a home rule county may impose a
2tax upon all persons engaged, in such county, in the business
3of making sales of service at the same rate of tax imposed
4pursuant to Section 5-1006 of the selling price of all tangible
5personal property transferred by such servicemen either in the
6form of tangible personal property or in the form of real
7estate as an incident to a sale of service. If imposed, such
8tax shall only be imposed in 1/4% increments. On and after
9September 1, 1991, this additional tax may not be imposed on
10the sales of food for human consumption which is to be consumed
11off the premises where it is sold (other than alcoholic
12beverages, soft drinks and food which has been prepared for
13immediate consumption) and prescription and nonprescription
14medicines, drugs, medical appliances and insulin, urine
15testing materials, syringes and needles used by diabetics. The
16tax imposed by a home rule county pursuant to this Section and
17all civil penalties that may be assessed as an incident thereof
18shall be collected and enforced by the State Department of
19Revenue. The certificate of registration which is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act or under the Service Occupation Tax Act shall permit such
22registrant to engage in a business which is taxable under any
23ordinance or resolution enacted pursuant to this Section
24without registering separately with the Department under such
25ordinance or resolution or under this Section. The Department
26shall have full power to administer and enforce this Section;

 

 

SB0146- 30 -LRB101 00257 HLH 45261 b

1to collect all taxes and penalties due hereunder; to dispose of
2taxes and penalties so collected in the manner hereinafter
3provided; and to determine all rights to credit memoranda
4arising on account of the erroneous payment of tax or penalty
5hereunder. In the administration of, and compliance with, this
6Section the Department and persons who are subject to this
7Section shall have the same rights, remedies, privileges,
8immunities, powers and duties, and be subject to the same
9conditions, restrictions, limitations, penalties and
10definitions of terms, and employ the same modes of procedure,
11as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
12respect to all provisions therein other than the State rate of
13tax), 4 (except that the reference to the State shall be to the
14taxing county), 5, 7, 8 (except that the jurisdiction to which
15the tax shall be a debt to the extent indicated in that Section
168 shall be the taxing county), 9 (except as to the disposition
17of taxes and penalties collected, and except that the returned
18merchandise credit for this county tax may not be taken against
19any State tax), 10, 11, 12 (except the reference therein to
20Section 2b of the Retailers' Occupation Tax Act), 13 (except
21that any reference to the State shall mean the taxing county),
22the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
23Service Occupation Tax Act and Section 3-7 of the Uniform
24Penalty and Interest Act, as fully as if those provisions were
25set forth herein.
26    No tax may be imposed by a home rule county pursuant to

 

 

SB0146- 31 -LRB101 00257 HLH 45261 b

1this Section unless such county also imposes a tax at the same
2rate pursuant to Section 5-1006.
3    Persons subject to any tax imposed pursuant to the
4authority granted in this Section may reimburse themselves for
5their serviceman's tax liability hereunder by separately
6stating such tax as an additional charge, which charge may be
7stated in combination, in a single amount, with State tax which
8servicemen are authorized to collect under the Service Use Tax
9Act, pursuant to such bracket schedules as the Department may
10prescribe.
11    Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing credit
13memorandum, the Department shall notify the State Comptroller,
14who shall cause the order to be drawn for the amount specified,
15and to the person named, in such notification from the
16Department. Such refund shall be paid by the State Treasurer
17out of the home rule county retailers' occupation tax fund.
18    The Department shall forthwith pay over to the State
19Treasurer, ex-officio, as trustee, all taxes and penalties
20collected hereunder.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

SB0146- 32 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 33 -LRB101 00257 HLH 45261 b

1respective amounts in accordance with the directions contained
2in such certification.
3    In addition to the disbursement required by the preceding
4paragraph, an allocation shall be made in each year to each
5county which received more than $500,000 in disbursements under
6the preceding paragraph in the preceding calendar year. The
7allocation shall be in an amount equal to the average monthly
8distribution made to each such county under the preceding
9paragraph during the preceding calendar year (excluding the 2
10months of highest receipts). The distribution made in March of
11each year subsequent to the year in which an allocation was
12made pursuant to this paragraph and the preceding paragraph
13shall be reduced by the amount allocated and disbursed under
14this paragraph in the preceding calendar year. The Department
15shall prepare and certify to the Comptroller for disbursement
16the allocations made in accordance with this paragraph.
17    Nothing in this Section shall be construed to authorize a
18county to impose a tax upon the privilege of engaging in any
19business which under the Constitution of the United States may
20not 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 such adoption and filing.

 

 

SB0146- 34 -LRB101 00257 HLH 45261 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 such adoption and filing.
14Beginning April 1, 1998, an ordinance or resolution imposing or
15discontinuing the tax hereunder or effecting a change in the
16rate thereof shall either (i) be adopted and a certified copy
17thereof filed with the Department on or before the first day of
18April, whereupon the Department shall proceed to administer and
19enforce this Section as of the first day of July next following
20the adoption and filing; or (ii) be adopted and a certified
21copy thereof filed with the Department on or before the first
22day of October, whereupon the Department shall proceed to
23administer and enforce this Section as of the first day of
24January next following the adoption and filing.
25    This Section shall be known and may be cited as the Home
26Rule County Service Occupation Tax Law.

 

 

SB0146- 35 -LRB101 00257 HLH 45261 b

1(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
2    Section 15. The Illinois Municipal Code is amended by
3changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
48-11-1.7, and 8-11-5 as follows:
 
5    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
6    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
7Act. The corporate authorities of a home rule municipality may
8impose a tax upon all persons engaged in the business of
9selling tangible personal property, other than an item of
10tangible personal property titled or registered with an agency
11of this State's government, at retail in the municipality on
12the gross receipts from these sales made in the course of such
13business. If imposed, the tax shall only be imposed in 1/4%
14increments. On and after September 1, 1991, this additional tax
15may not be imposed on the sales of food for human consumption
16that is to be consumed off the premises where it is sold (other
17than alcoholic beverages, soft drinks and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances and
20insulin, urine testing materials, syringes and needles used by
21diabetics. The tax imposed by a home rule municipality under
22this Section and all civil penalties that may be assessed as an
23incident of the tax shall be collected and enforced by the
24State Department of Revenue. The certificate of registration

 

 

SB0146- 36 -LRB101 00257 HLH 45261 b

1that is issued by the Department to a retailer under the
2Retailers' Occupation Tax Act shall permit the retailer to
3engage in a business that is taxable under any ordinance or
4resolution enacted pursuant to this Section without
5registering separately with the Department under such
6ordinance or resolution or under this Section. The Department
7shall have full power to administer and enforce this Section;
8to collect all taxes and penalties due hereunder; to dispose of
9taxes and penalties so collected in the manner hereinafter
10provided; and to determine all rights to credit memoranda
11arising on account of the erroneous payment of tax or penalty
12hereunder. In the administration of, and compliance with, this
13Section the Department and persons who are subject to this
14Section shall have the same rights, remedies, privileges,
15immunities, powers and duties, and be subject to the same
16conditions, restrictions, limitations, penalties and
17definitions of terms, and employ the same modes of procedure,
18as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
191m, 1n, 2 through 2-65 (in respect to all provisions therein
20other than the State rate of tax), 2c, 3 (except as to the
21disposition of taxes and penalties collected), 4, 5, 5a, 5b,
225c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
239, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
24Section 3-7 of the Uniform Penalty and Interest Act, as fully
25as if those provisions were set forth herein.
26    No tax may be imposed by a home rule municipality under

 

 

SB0146- 37 -LRB101 00257 HLH 45261 b

1this Section unless the municipality also imposes a tax at the
2same rate under Section 8-11-5 of this Act.
3    Persons subject to any tax imposed under the authority
4granted in this Section may reimburse themselves for their
5seller's tax liability hereunder by separately stating that tax
6as an additional charge, which charge may be stated in
7combination, in a single amount, with State tax which sellers
8are required to collect under the Use Tax Act, pursuant to such
9bracket schedules 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 home rule municipal retailers' occupation
17tax fund.
18    The Department shall immediately pay over to the State
19Treasurer, ex officio, as trustee, all taxes and penalties
20collected hereunder.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

SB0146- 38 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 39 -LRB101 00257 HLH 45261 b

1under this Section. Within 10 days after receipt by the
2Comptroller of the disbursement certification to the
3municipalities and the Tax Compliance and Administration Fund
4provided for in this Section to be given to the Comptroller by
5the Department, the Comptroller shall cause the orders to be
6drawn for the respective amounts in accordance with the
7directions contained in the certification.
8    In addition to the disbursement required by the preceding
9paragraph and in order to mitigate delays caused by
10distribution procedures, an allocation shall, if requested, be
11made within 10 days after January 14, 1991, and in November of
121991 and each year thereafter, to each municipality that
13received more than $500,000 during the preceding fiscal year,
14(July 1 through June 30) whether collected by the municipality
15or disbursed by the Department as required by this Section.
16Within 10 days after January 14, 1991, participating
17municipalities shall notify the Department in writing of their
18intent to participate. In addition, for the initial
19distribution, participating municipalities shall certify to
20the Department the amounts collected by the municipality for
21each month under its home rule occupation and service
22occupation tax during the period July 1, 1989 through June 30,
231990. The allocation within 10 days after January 14, 1991,
24shall be in an amount equal to the monthly average of these
25amounts, excluding the 2 months of highest receipts. The
26monthly average for the period of July 1, 1990 through June 30,

 

 

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11991 will be determined as follows: the amounts collected by
2the municipality under its home rule occupation and service
3occupation tax during the period of July 1, 1990 through
4September 30, 1990, plus amounts collected by the Department
5and paid to such municipality through June 30, 1991, excluding
6the 2 months of highest receipts. The monthly average for each
7subsequent period of July 1 through June 30 shall be an amount
8equal to the monthly distribution made to each such
9municipality under the preceding paragraph during this period,
10excluding the 2 months of highest receipts. The distribution
11made in November 1991 and each year thereafter under this
12paragraph and the preceding paragraph shall be reduced by the
13amount allocated and disbursed under this paragraph in the
14preceding period of July 1 through June 30. The Department
15shall prepare and certify to the Comptroller for disbursement
16the allocations made in accordance with this paragraph.
17    For the purpose of determining the local governmental unit
18whose tax is applicable, a retail sale by a producer of coal or
19other mineral mined in Illinois is a sale at retail at the
20place where the coal or other mineral mined in Illinois is
21extracted from the earth. This paragraph does not apply to coal
22or other mineral when it is delivered or shipped by the seller
23to the purchaser at a point outside Illinois so that the sale
24is exempt under the United States Constitution as a sale in
25interstate or foreign commerce.
26    Nothing in this Section shall be construed to authorize a

 

 

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1municipality to impose a tax upon the privilege of engaging in
2any business which under the Constitution of the United States
3may not be made the subject of taxation by this State.
4    An ordinance or resolution imposing or discontinuing a tax
5hereunder or effecting a change in the rate thereof shall be
6adopted and a certified copy thereof filed with the Department
7on or before the first day of June, whereupon the Department
8shall proceed to administer and enforce this Section as of the
9first day of September next following the adoption and filing.
10Beginning January 1, 1992, an ordinance or resolution imposing
11or discontinuing the tax hereunder or effecting a change in the
12rate thereof shall be adopted and a certified copy thereof
13filed with the Department on or before the first day of July,
14whereupon the Department shall proceed to administer and
15enforce this Section as of the first day of October next
16following such adoption and filing. Beginning January 1, 1993,
17an ordinance or resolution imposing or discontinuing the tax
18hereunder or effecting a change in the rate thereof shall be
19adopted and a certified copy thereof filed with the Department
20on or before the first day of October, whereupon the Department
21shall proceed to administer and enforce this Section as of the
22first day of January next following the adoption and filing.
23However, a municipality located in a county with a population
24in excess of 3,000,000 that elected to become a home rule unit
25at the general primary election in 1994 may adopt an ordinance
26or resolution imposing the tax under this Section and file a

 

 

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1certified copy of the ordinance or resolution with the
2Department on or before July 1, 1994. The Department shall then
3proceed to administer and enforce this Section as of October 1,
41994. Beginning April 1, 1998, an ordinance or resolution
5imposing or discontinuing the tax hereunder or effecting a
6change in the rate thereof shall either (i) be adopted and a
7certified copy thereof filed with the Department on or before
8the first day of April, whereupon the Department shall proceed
9to administer and enforce this Section as of the first day of
10July next following the adoption and filing; or (ii) be adopted
11and a certified copy thereof filed with the Department on or
12before the first day of October, whereupon the Department shall
13proceed to administer and enforce this Section as of the first
14day of January next following the adoption and filing.
15    When certifying the amount of a monthly disbursement to a
16municipality under this Section, the Department shall increase
17or decrease the amount by an amount necessary to offset any
18misallocation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous 6
20months from the time a misallocation is discovered.
21    Any unobligated balance remaining in the Municipal
22Retailers' Occupation Tax Fund on December 31, 1989, which fund
23was abolished by Public Act 85-1135, and all receipts of
24municipal tax as a result of audits of liability periods prior
25to January 1, 1990, shall be paid into the Local Government Tax
26Fund for distribution as provided by this Section prior to the

 

 

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1enactment of Public Act 85-1135. All receipts of municipal tax
2as a result of an assessment not arising from an audit, for
3liability periods prior to January 1, 1990, shall be paid into
4the Local Government Tax Fund for distribution before July 1,
51990, as provided by this Section prior to the enactment of
6Public Act 85-1135; and on and after July 1, 1990, all such
7receipts shall be distributed as provided in Section 6z-18 of
8the State Finance Act.
9    As used in this Section, "municipal" and "municipality"
10means a city, village or incorporated town, including an
11incorporated town that has superseded a civil township.
12    This Section shall be known and may be cited as the Home
13Rule Municipal Retailers' Occupation Tax Act.
14(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
15100-587, eff. 6-4-18.)
 
16    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
17    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
18Occupation Tax Act. The corporate authorities of a non-home
19rule municipality may impose a tax upon all persons engaged in
20the business of selling tangible personal property, other than
21on an item of tangible personal property which is titled and
22registered by an agency of this State's Government, at retail
23in the municipality for expenditure on public infrastructure or
24for property tax relief or both as defined in Section 8-11-1.2
25if approved by referendum as provided in Section 8-11-1.1, of

 

 

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1the gross receipts from such sales made in the course of such
2business. If the tax is approved by referendum on or after July
314, 2010 (the effective date of Public Act 96-1057), the
4corporate authorities of a non-home rule municipality may,
5until December 31, 2020, use the proceeds of the tax for
6expenditure on municipal operations, in addition to or in lieu
7of any expenditure on public infrastructure or for property tax
8relief. The tax imposed may not be more than 1% and may be
9imposed only in 1/4% increments. The tax may not be imposed on
10the sale of food for human consumption that is to be consumed
11off the premises where it is sold (other than alcoholic
12beverages, soft drinks, and food that has been prepared for
13immediate consumption) and prescription and nonprescription
14medicines, drugs, medical appliances, and insulin, urine
15testing materials, syringes, and needles used by diabetics. The
16tax imposed by a municipality pursuant to this Section and all
17civil penalties that may be assessed as an incident thereof
18shall be collected and enforced by the State Department of
19Revenue. The certificate of registration which is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act shall permit such retailer to engage in a business which is
22taxable under any ordinance or resolution enacted pursuant to
23this Section without registering separately with the
24Department under such 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

 

 

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1hereunder; to dispose of taxes and penalties so collected in
2the manner hereinafter provided, and to determine all rights to
3credit memoranda, arising on account of the erroneous payment
4of tax 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 1, 1a, 1a-1, 1d,
111e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
12therein other than the State rate of tax), 2c, 3 (except as to
13the disposition of taxes and penalties collected), 4, 5, 5a,
145b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
157, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
16and Section 3-7 of the Uniform Penalty and Interest Act as
17fully as if those provisions were set forth herein.
18    No municipality may impose a tax under this Section unless
19the municipality also imposes a tax at the same rate under
20Section 8-11-1.4 of this Code.
21    Persons subject to any tax imposed pursuant to the
22authority granted in this Section may reimburse themselves for
23their seller's tax liability hereunder by separately stating
24such tax as an additional charge, which charge may be stated in
25combination, in a single amount, with State tax which sellers
26are required to collect under the Use Tax Act, pursuant to such

 

 

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1bracket schedules as the Department may prescribe.
2    Whenever the Department determines that a refund should be
3made under this Section to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified, and to the person named, in such notification
7from the Department. Such refund shall be paid by the State
8Treasurer out of the non-home rule municipal retailers'
9occupation tax fund.
10    The Department shall forthwith pay over to the State
11Treasurer, ex officio, as trustee, all taxes and penalties
12collected hereunder.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to named municipalities,
25the municipalities to be those from which retailers have paid
26taxes or penalties hereunder to the Department during the

 

 

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

 

 

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1whose tax is applicable, a retail sale, by a producer of coal
2or other mineral mined in Illinois, is a sale at retail at the
3place where the coal or other mineral mined in Illinois is
4extracted from the earth. This paragraph does not apply to coal
5or other mineral when it is delivered or shipped by the seller
6to the purchaser at a point outside Illinois so that the sale
7is exempt under the Federal Constitution as a sale in
8interstate or foreign commerce.
9    Nothing in this Section shall be construed to authorize a
10municipality to impose a tax upon the privilege of engaging in
11any business which under the constitution of the United States
12may not be made the subject of taxation by this State.
13    When certifying the amount of a monthly disbursement to a
14municipality under this Section, the Department shall increase
15or decrease 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    The Department of Revenue shall implement this amendatory
20Act of the 91st General Assembly so as to collect the tax on
21and after January 1, 2002.
22    As used in this Section, "municipal" and "municipality"
23means a city, village or incorporated town, including an
24incorporated town which has superseded a civil township.
25    This Section shall be known and may be cited as the
26"Non-Home Rule Municipal Retailers' Occupation Tax Act".

 

 

SB0146- 49 -LRB101 00257 HLH 45261 b

1(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
2100-587, eff. 6-4-18.)
 
3    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
4    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
5Tax Act. The corporate authorities of a non-home rule
6municipality may impose a tax upon all persons engaged, in such
7municipality, in the business of making sales of service for
8expenditure on public infrastructure or for property tax relief
9or both as defined in Section 8-11-1.2 if approved by
10referendum as provided in Section 8-11-1.1, of the selling
11price of all tangible personal property transferred by such
12servicemen either in the form of tangible personal property or
13in the form of real estate as an incident to a sale of service.
14If the tax is approved by referendum on or after July 14, 2010
15(the effective date of Public Act 96-1057), the corporate
16authorities of a non-home rule municipality may, until December
1731, 2020, use the proceeds of the tax for expenditure on
18municipal operations, in addition to or in lieu of any
19expenditure on public infrastructure or for property tax
20relief. The tax imposed may not be more than 1% and may be
21imposed only in 1/4% increments. The tax may not be imposed on
22the sale of food for human consumption that is to be consumed
23off the premises where it is sold (other than alcoholic
24beverages, soft drinks, and food that has been prepared for
25immediate consumption) and prescription and nonprescription

 

 

SB0146- 50 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 51 -LRB101 00257 HLH 45261 b

1taxing municipality), 5, 7, 8 (except that the jurisdiction to
2which the tax shall be a debt to the extent indicated in that
3Section 8 shall be the taxing municipality), 9 (except as to
4the disposition of taxes and penalties collected, and except
5that the returned merchandise credit for this municipal tax may
6not be taken against any State tax), 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,

 

 

SB0146- 52 -LRB101 00257 HLH 45261 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.
5    The Department shall forthwith pay over to the State
6Treasurer, ex officio, as trustee, all taxes and penalties
7collected hereunder.
8    As soon as possible after the first day of each month,
9beginning January 1, 2011, upon certification of the Department
10of Revenue, the Comptroller shall order transferred, and the
11Treasurer shall transfer, to the STAR Bonds Revenue Fund the
12local sales tax increment, as defined in the Innovation
13Development and Economy Act, collected under this Section
14during the second preceding calendar month for sales within a
15STAR bond district.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities,
20the municipalities to be those from which suppliers and
21servicemen have paid taxes or penalties hereunder to the
22Department during the second preceding calendar month. The
23amount to be paid to each municipality shall be the amount (not
24including credit memoranda) collected hereunder during the
25second preceding calendar month by the Department, and not
26including an amount equal to the amount of refunds made during

 

 

SB0146- 53 -LRB101 00257 HLH 45261 b

1the second preceding calendar month by the Department on behalf
2of such municipality, and not including any amounts that are
3transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
4remainder, which the Department shall transfer into the Tax
5Compliance and Administration Fund. The Department, at the time
6of each monthly disbursement to the municipalities, shall
7prepare and certify to the State Comptroller the amount to be
8transferred into the Tax Compliance and Administration Fund
9under this Section. Within 10 days after receipt, by the
10Comptroller, of the disbursement certification to the
11municipalities, the General Revenue Fund, and the Tax
12Compliance and Administration Fund provided for in this Section
13to be given to the Comptroller by the Department, the
14Comptroller shall cause the orders to be drawn for the
15respective amounts in accordance with the directions contained
16in such certification.
17    The Department of Revenue shall implement this amendatory
18Act of the 91st General Assembly so as to collect the tax on
19and after January 1, 2002.
20    Nothing in this Section shall be construed to authorize a
21municipality to impose a tax upon the privilege of engaging in
22any business which under the constitution of the United States
23may not be made the subject of taxation by this State.
24    As used in this Section, "municipal" or "municipality"
25means or refers to a city, village or incorporated town,
26including an incorporated town which has superseded a civil

 

 

SB0146- 54 -LRB101 00257 HLH 45261 b

1township.
2    This Section shall be known and may be cited as the
3"Non-Home Rule Municipal Service Occupation Tax Act".
4(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
5    (65 ILCS 5/8-11-1.6)
6    Sec. 8-11-1.6. Non-home rule municipal retailers
7occupation tax; municipalities between 20,000 and 25,000. The
8corporate authorities of a non-home rule municipality with a
9population of more than 20,000 but less than 25,000 that has,
10prior to January 1, 1987, established a Redevelopment Project
11Area that has been certified as a State Sales Tax Boundary and
12has issued bonds or otherwise incurred indebtedness to pay for
13costs in excess of $5,000,000, which is secured in part by a
14tax increment allocation fund, in accordance with the
15provisions of Division 11-74.4 of this Code may, by passage of
16an ordinance, impose a tax upon all persons engaged in the
17business of selling tangible personal property, other than on
18an item of tangible personal property that is titled and
19registered by an agency of this State's Government, at retail
20in the municipality. This tax may not be imposed on the sales
21of food for human consumption that is to be consumed off the
22premises where it is sold (other than alcoholic beverages, soft
23drinks, and food that has been prepared for immediate
24consumption) and prescription and nonprescription medicines,
25drugs, medical appliances and insulin, urine testing

 

 

SB0146- 55 -LRB101 00257 HLH 45261 b

1materials, syringes, and needles used by diabetics. If imposed,
2the tax shall only be imposed in .25% increments of the gross
3receipts from such sales made in the course of business. Any
4tax imposed by a municipality under this Section and all civil
5penalties that may be assessed as an incident thereof shall be
6collected and enforced by the State Department of Revenue. An
7ordinance imposing a 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
10October, whereupon the Department shall proceed to administer
11and enforce this Section as of the first day of January next
12following such adoption and filing. The certificate of
13registration that is issued by the Department to a retailer
14under the Retailers' Occupation Tax Act shall permit the
15retailer to engage in a business that is taxable under any
16ordinance or resolution enacted under this Section without
17registering separately with the Department under the ordinance
18or resolution or under this Section. The Department shall have
19full power to administer and enforce this Section, to collect
20all taxes and penalties due hereunder, to dispose of taxes and
21penalties so collected in the manner hereinafter provided, and
22to determine all rights to credit memoranda, arising on account
23of the erroneous payment of tax or penalty hereunder. In the
24administration of, and compliance with this Section, the
25Department and persons who are subject to this Section shall
26have the same rights, remedies, privileges, immunities,

 

 

SB0146- 56 -LRB101 00257 HLH 45261 b

1powers, and duties, and be subject to the same conditions,
2restrictions, limitations, penalties, and definitions of
3terms, and employ the same modes of procedure, as are
4prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
5through 2-65 (in respect to all provisions therein other than
6the State rate of tax), 2c, 3 (except as to the disposition of
7taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
85g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
9and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
10the Uniform Penalty and Interest Act as fully as if those
11provisions were set forth herein.
12    A tax may not be imposed by a municipality under this
13Section unless the municipality also imposes a tax at the same
14rate under Section 8-11-1.7 of this Act.
15    Persons subject to any tax imposed under the authority
16granted in this Section may reimburse themselves for their
17seller's tax liability hereunder by separately stating the tax
18as an additional charge, which charge may be stated in
19combination, in a single amount, with State tax which sellers
20are required to collect under the Use Tax Act, pursuant to such
21bracket schedules as the Department may prescribe.
22    Whenever the Department determines that a refund should be
23made under this Section 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

 

 

SB0146- 57 -LRB101 00257 HLH 45261 b

1from the Department. The refund shall be paid by the State
2Treasurer out of the Non-Home Rule Municipal Retailers'
3Occupation Tax Fund, which is hereby created.
4    The Department shall forthwith pay over to the State
5Treasurer, ex officio, as trustee, all taxes and penalties
6collected hereunder.
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 retailers have paid
20taxes or penalties hereunder to the Department during the
21second preceding calendar month. The amount to be paid to each
22municipality shall be the amount (not including credit
23memoranda) collected hereunder during the second preceding
24calendar month by the Department plus an amount the Department
25determines is necessary to offset any amounts that were
26erroneously paid to a different taxing body, and not including

 

 

SB0146- 58 -LRB101 00257 HLH 45261 b

1an amount equal to the amount of refunds made during the second
2preceding calendar month by the Department on behalf of the
3municipality, and not including any amount that the Department
4determines is necessary to offset any amounts that were payable
5to a different taxing body but were erroneously paid to the
6municipality, and not including any amounts that are
7transferred to the STAR Bonds Revenue Fund, 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 municipalities, shall
11prepare and certify to the State Comptroller the amount to be
12transferred into the Tax Compliance and Administration Fund
13under this Section. Within 10 days after receipt by the
14Comptroller of the disbursement certification to the
15municipalities and the Tax Compliance and Administration Fund
16provided for in this Section to be given to the Comptroller by
17the Department, the Comptroller shall cause the orders to be
18drawn for the respective amounts in accordance with the
19directions contained in the certification.
20    For the purpose of determining the local governmental unit
21whose tax is applicable, a retail sale by a producer of coal or
22other mineral mined in Illinois is a sale at retail at the
23place where the coal or other mineral mined in Illinois is
24extracted from the earth. This paragraph does not apply to coal
25or other mineral when it is delivered or shipped by the seller
26to the purchaser at a point outside Illinois so that the sale

 

 

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1is exempt under the federal Constitution as a sale in
2interstate or foreign commerce.
3    Nothing in this Section shall be construed to authorize a
4municipality to impose a tax upon the privilege of engaging in
5any business which under the constitution of the United States
6may not be made the subject of taxation by this State.
7    When certifying the amount of a monthly disbursement to a
8municipality under this Section, the Department shall increase
9or decrease the amount by an amount necessary to offset any
10misallocation of previous disbursements. The offset amount
11shall be the amount erroneously disbursed within the previous 6
12months from the time a misallocation is discovered.
13    As used in this Section, "municipal" and "municipality"
14means a city, village, or incorporated town, including an
15incorporated town that has superseded a civil township.
16(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
17100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
188-14-18.)
 
19    (65 ILCS 5/8-11-1.7)
20    Sec. 8-11-1.7. Non-home rule municipal service occupation
21tax; municipalities between 20,000 and 25,000. The corporate
22authorities of a non-home rule municipality with a population
23of more than 20,000 but less than 25,000 as determined by the
24last preceding decennial census that has, prior to January 1,
251987, established a Redevelopment Project Area that has been

 

 

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1certified as a State Sales Tax Boundary and has issued bonds or
2otherwise incurred indebtedness to pay for costs in excess of
3$5,000,000, which is secured in part by a tax increment
4allocation fund, in accordance with the provisions of Division
511-74.4 of this Code may, by passage of an ordinance, impose a
6tax upon all persons engaged in the municipality in the
7business of making sales of service. If imposed, the tax shall
8only be imposed in .25% increments of the selling price of all
9tangible personal property transferred by such servicemen
10either in the form of tangible personal property or in the form
11of real estate as an incident to a sale of service. This tax
12may not be imposed on the sales of food for human consumption
13that is to be consumed off the premises where it is sold (other
14than alcoholic beverages, soft drinks, and food that has been
15prepared for immediate consumption) and prescription and
16nonprescription medicines, drugs, medical appliances and
17insulin, urine testing materials, syringes, and needles used by
18diabetics. The tax imposed by a municipality under this Section
19and all civil penalties that may be assessed as an incident
20thereof shall be collected and enforced by the State Department
21of Revenue. An ordinance imposing a tax hereunder or effecting
22a change in the rate thereof shall be adopted and a certified
23copy thereof filed with the Department on or before the first
24day of October, whereupon the Department shall proceed to
25administer and enforce this Section as of the first day of
26January next following such adoption and filing. The

 

 

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1certificate of registration that is issued by the Department to
2a retailer under the Retailers' Occupation Tax Act or under the
3Service Occupation Tax Act shall permit the registrant to
4engage in a business that is taxable under any ordinance or
5resolution enacted under this Section without registering
6separately with the Department under the ordinance or
7resolution or under this Section. The Department shall have
8full power to administer and enforce this Section, to collect
9all taxes and penalties due hereunder, to dispose of taxes and
10penalties so collected in a manner hereinafter provided, and to
11determine all rights to credit memoranda arising on account of
12the erroneous payment of tax or penalty hereunder. In the
13administration of and compliance with this Section, the
14Department and persons who are subject to this Section shall
15have the same rights, remedies, privileges, immunities,
16powers, and duties, and be subject to the same conditions,
17restrictions, limitations, penalties and definitions of terms,
18and employ the same modes of procedure, as are prescribed in
19Sections 1a-1, 2, 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 taxing
22municipality), 5, 7, 8 (except that the jurisdiction to which
23the tax shall be a debt to the extent indicated in that Section
248 shall be the taxing municipality), 9 (except as to the
25disposition of taxes and penalties collected, and except that
26the returned merchandise credit for this municipal tax may not

 

 

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1be taken against any State tax), 10, 11, 12, (except the
2reference therein to Section 2b of the Retailers' Occupation
3Tax Act), 13 (except that any reference to the State shall mean
4the taxing municipality), the first paragraph of Sections 15,
516, 17, 18, 19, and 20 of the Service Occupation Tax Act and
6Section 3-7 of the Uniform Penalty and Interest Act, as fully
7as if those provisions were set forth herein.
8    A tax may not be imposed by a municipality under this
9Section unless the municipality also imposes a tax at the same
10rate under Section 8-11-1.6 of this Act.
11    Person subject to any tax imposed under the authority
12granted in this Section may reimburse themselves for their
13servicemen's tax liability hereunder by separately stating the
14tax as an additional charge, which 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
17such bracket schedules as the Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this Section to a claimant instead of issuing credit
20memorandum, the Department shall notify the State Comptroller,
21who shall cause the order to be drawn for the amount specified,
22and to the person named, in such notification from the
23Department. The refund shall be paid by the State Treasurer out
24of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.
25    The Department shall forthwith pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

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1collected hereunder.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this Section
8during the second preceding calendar month for sales within a
9STAR bond district.
10    After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to named municipalities,
14the municipalities to be those from which suppliers and
15servicemen have paid taxes or penalties hereunder to the
16Department during the second preceding calendar month. The
17amount to be paid to each municipality shall be the amount (not
18including credit memoranda) collected hereunder during the
19second preceding calendar month by the Department, and not
20including an amount equal to the amount of refunds made during
21the second preceding calendar month by the Department on behalf
22of such municipality, and not including any amounts that are
23transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
24remainder, which the Department shall transfer into the Tax
25Compliance and Administration Fund. The Department, at the time
26of each monthly disbursement to the municipalities, shall

 

 

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1prepare and certify to the State Comptroller the amount to be
2transferred into the Tax Compliance and Administration Fund
3under this Section. Within 10 days after receipt by the
4Comptroller of the disbursement certification to the
5municipalities, the Tax Compliance and Administration Fund,
6and the General Revenue Fund, provided for in this Section to
7be given to the Comptroller by the Department, the Comptroller
8shall cause the orders to be drawn for the respective amounts
9in accordance with the directions contained in the
10certification.
11    When certifying the amount of a monthly disbursement to a
12municipality under this Section, the Department shall increase
13or decrease the amount by an amount necessary to offset any
14misallocation of previous disbursements. The offset amount
15shall be the amount erroneously disbursed within the previous 6
16months from the time a misallocation is discovered.
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(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
22100-863, eff. 8-14-18.)
 
23    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
24    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
25Act. The corporate authorities of a home rule municipality may

 

 

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1impose a tax upon all persons engaged, in such municipality, in
2the business of making sales of service at the same rate of tax
3imposed pursuant to Section 8-11-1, of the selling price of all
4tangible personal property transferred by such servicemen
5either in the form of tangible personal property or in the form
6of real estate as an incident to a sale of service. If imposed,
7such tax shall only be imposed in 1/4% increments. On and after
8September 1, 1991, this additional tax may not be imposed on
9the sales of food for human consumption which is to be consumed
10off the premises where it is sold (other than alcoholic
11beverages, soft drinks and food which has been prepared for
12immediate consumption) and prescription and nonprescription
13medicines, drugs, medical appliances and insulin, urine
14testing materials, syringes and needles used by diabetics. The
15tax imposed by a home rule municipality pursuant to this
16Section and all civil penalties that may be assessed as an
17incident thereof shall be collected and enforced by the State
18Department of Revenue. The certificate of registration which is
19issued by the Department to a retailer under the Retailers'
20Occupation Tax Act or under the Service Occupation Tax Act
21shall permit such registrant to engage in a business which is
22taxable under any ordinance or resolution enacted pursuant to
23this Section without registering separately with the
24Department under such 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

 

 

SB0146- 66 -LRB101 00257 HLH 45261 b

1hereunder; to dispose of taxes and penalties so collected in
2the manner 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), 10, 11, 12 (except the reference therein to Section
202b of the Retailers' Occupation Tax Act), 13 (except that any
21reference to the State shall mean the taxing municipality), the
22first paragraph of Section 15, 16, 17 (except that credit
23memoranda issued hereunder may not be used to discharge any
24State tax liability), 18, 19 and 20 of the Service Occupation
25Tax Act and Section 3-7 of the Uniform Penalty and Interest
26Act, as fully as if those provisions were set forth herein.

 

 

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1    No tax may be imposed by a home rule municipality pursuant
2to this Section unless such municipality also imposes a tax at
3the same rate pursuant to Section 8-11-1 of this Act.
4    Persons subject to any tax imposed pursuant to the
5authority granted in this Section may reimburse themselves for
6their serviceman's tax liability hereunder by separately
7stating such tax as an additional charge, which charge may be
8stated in combination, in a single amount, with State tax which
9servicemen are authorized to collect under the Service Use Tax
10Act, pursuant to such bracket schedules as the Department may
11prescribe.
12    Whenever the Department determines that a refund should be
13made under this Section to a claimant instead of issuing credit
14memorandum, the Department shall notify the State Comptroller,
15who shall cause the order to be drawn for the amount specified,
16and to the person named, in such notification from the
17Department. Such refund shall be paid by the State Treasurer
18out of the home rule municipal retailers' occupation tax fund.
19    The Department shall forthwith pay over to the State
20Treasurer, ex-officio, as trustee, all taxes and penalties
21collected hereunder.
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

 

 

SB0146- 68 -LRB101 00257 HLH 45261 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 named municipalities,
8the municipalities to be those from which suppliers and
9servicemen have paid taxes or penalties hereunder to the
10Department during the second preceding calendar month. The
11amount to be paid to each municipality shall be the amount (not
12including credit memoranda) collected hereunder during the
13second preceding calendar month by the Department, and not
14including an amount equal to the amount of refunds made during
15the second preceding calendar month by the Department on behalf
16of such municipality, 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

 

 

SB0146- 69 -LRB101 00257 HLH 45261 b

1the Department, the Comptroller shall cause the orders to be
2drawn for the respective amounts in accordance with the
3directions contained in such certification.
4    In addition to the disbursement required by the preceding
5paragraph and in order to mitigate delays caused by
6distribution procedures, an allocation shall, if requested, be
7made within 10 days after January 14, 1991, and in November of
81991 and each year thereafter, to each municipality that
9received more than $500,000 during the preceding fiscal year,
10(July 1 through June 30) whether collected by the municipality
11or disbursed by the Department as required by this Section.
12Within 10 days after January 14, 1991, participating
13municipalities shall notify the Department in writing of their
14intent to participate. In addition, for the initial
15distribution, participating municipalities shall certify to
16the Department the amounts collected by the municipality for
17each month under its home rule occupation and service
18occupation tax during the period July 1, 1989 through June 30,
191990. The allocation within 10 days after January 14, 1991,
20shall be in an amount equal to the monthly average of these
21amounts, excluding the 2 months of highest receipts. Monthly
22average for the period of July 1, 1990 through June 30, 1991
23will be determined as follows: the amounts collected by the
24municipality under its home rule occupation and service
25occupation tax during the period of July 1, 1990 through
26September 30, 1990, plus amounts collected by the Department

 

 

SB0146- 70 -LRB101 00257 HLH 45261 b

1and paid to such municipality through June 30, 1991, excluding
2the 2 months of highest receipts. The monthly average for each
3subsequent period of July 1 through June 30 shall be an amount
4equal to the monthly distribution made to each such
5municipality under the preceding paragraph during this period,
6excluding the 2 months of highest receipts. The distribution
7made in November 1991 and each year thereafter under this
8paragraph and the preceding paragraph shall be reduced by the
9amount allocated and disbursed under this paragraph in the
10preceding period of July 1 through June 30. The Department
11shall prepare and certify to the Comptroller for disbursement
12the allocations made in accordance with this paragraph.
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    An ordinance or resolution imposing or discontinuing a tax
18hereunder or effecting a change in the rate thereof shall be
19adopted and a certified copy thereof filed with the Department
20on or before the first day of June, whereupon the Department
21shall proceed to administer and enforce this Section as of the
22first day of September next following such adoption and filing.
23Beginning January 1, 1992, an ordinance or resolution imposing
24or discontinuing the tax hereunder or effecting a change in the
25rate thereof shall be adopted and a certified copy thereof
26filed with the Department on or before the first day of July,

 

 

SB0146- 71 -LRB101 00257 HLH 45261 b

1whereupon the Department shall proceed to administer and
2enforce this Section as of the first day of October next
3following such adoption and filing. Beginning January 1, 1993,
4an ordinance or resolution imposing or discontinuing the tax
5hereunder or effecting a change in the rate thereof shall be
6adopted and a certified copy thereof filed with the Department
7on or before the first day of October, whereupon the Department
8shall proceed to administer and enforce this Section as of the
9first day of January next following such adoption and filing.
10However, a municipality located in a county with a population
11in excess of 3,000,000 that elected to become a home rule unit
12at the general primary election in 1994 may adopt an ordinance
13or resolution imposing the tax under this Section and file a
14certified copy of the ordinance or resolution with the
15Department on or before July 1, 1994. The Department shall then
16proceed to administer and enforce this Section as of October 1,
171994. Beginning April 1, 1998, an ordinance or resolution
18imposing or discontinuing the tax hereunder or effecting a
19change in the rate thereof shall either (i) be adopted and a
20certified copy thereof filed with the Department on or before
21the first day of April, whereupon the Department shall proceed
22to administer and enforce this Section as of the first day of
23July next following the adoption and filing; or (ii) be adopted
24and a certified copy thereof filed with the Department on or
25before the first day of October, whereupon the Department shall
26proceed to administer and enforce this Section as of the first

 

 

SB0146- 72 -LRB101 00257 HLH 45261 b

1day of January next following the adoption and filing.
2    Any unobligated balance remaining in the Municipal
3Retailers' Occupation Tax Fund on December 31, 1989, which fund
4was abolished by Public Act 85-1135, and all receipts of
5municipal tax as a result of audits of liability periods prior
6to January 1, 1990, shall be paid into the Local Government Tax
7Fund, for distribution as provided by this Section prior to the
8enactment of Public Act 85-1135. All receipts of municipal tax
9as a result of an assessment not arising from an audit, for
10liability periods prior to January 1, 1990, shall be paid into
11the Local Government Tax Fund for distribution before July 1,
121990, as provided by this Section prior to the enactment of
13Public Act 85-1135, and on and after July 1, 1990, all such
14receipts shall be distributed as provided in Section 6z-18 of
15the State Finance Act.
16    As used in this Section, "municipal" and "municipality"
17means a city, village or incorporated town, including an
18incorporated town which has superseded a civil township.
19    This Section shall be known and may be cited as the Home
20Rule Municipal Service Occupation Tax Act.
21(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
 
22    Section 20. The Metro-East Park and Recreation District Act
23is amended by changing Section 30 as follows:
 
24    (70 ILCS 1605/30)

 

 

SB0146- 73 -LRB101 00257 HLH 45261 b

1    Sec. 30. Taxes.
2    (a) The board shall impose a tax upon all persons engaged
3in the business of selling tangible personal property, other
4than personal property titled or registered with an agency of
5this State's government, at retail in the District on the gross
6receipts from the sales made in the course of business. This
7tax shall be imposed only at the rate of one-tenth of one per
8cent.
9    This additional tax may not be imposed on the sales of food
10for human consumption that is to be consumed off the premises
11where it is sold (other than alcoholic beverages, soft drinks,
12and food which has been prepared for immediate consumption) and
13prescription and non-prescription medicines, drugs, medical
14appliances, and insulin, urine testing materials, syringes,
15and needles used by diabetics. The tax imposed by the Board
16under this Section and all civil penalties that may be assessed
17as an incident of the tax shall be collected and enforced by
18the Department of Revenue. The certificate of registration that
19is issued by the Department to a retailer under the Retailers'
20Occupation Tax Act shall permit the retailer to engage in a
21business that is taxable without registering separately with
22the Department under an ordinance or resolution under this
23Section. The Department has full power to administer and
24enforce this Section, to collect all taxes and penalties due
25under this Section, to dispose of taxes and penalties so
26collected in the manner provided in this Section, and to

 

 

SB0146- 74 -LRB101 00257 HLH 45261 b

1determine all rights to credit memoranda arising on account of
2the erroneous payment of a tax or penalty under this Section.
3In the administration of and compliance with this Section, the
4Department and persons who are subject to this Section shall
5(i) have the same rights, remedies, privileges, immunities,
6powers, and duties, (ii) be subject to the same conditions,
7restrictions, limitations, penalties, and definitions of
8terms, and (iii) employ the same modes of procedure as are
9prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
101n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained
11in those Sections other than the State rate of tax), 2-12, 2-15
12through 2-70, 2a, 2b, 2c, 3 (except provisions relating to
13transaction returns and quarter monthly payments), 4, 5, 5a,
145b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
157, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
16Tax Act and the Uniform Penalty and Interest Act as if those
17provisions were set forth in this Section.
18    Persons subject to any tax imposed under the authority
19granted in this Section may reimburse themselves for their
20sellers' tax liability by separately stating the tax as an
21additional charge, which charge may be stated in combination,
22in a single amount, with State tax which sellers are required
23to collect under the Use Tax Act, pursuant to such bracketed
24schedules as the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this Section to a claimant instead of issuing a

 

 

SB0146- 75 -LRB101 00257 HLH 45261 b

1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the order to be drawn for the
3amount specified and to the person named in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the State Metro-East Park and Recreation
6District Fund.
7    (b) If a tax has been imposed under subsection (a), a
8service occupation tax shall also be imposed at the same rate
9upon all persons engaged, in the District, in the business of
10making sales of service, who, as an incident to making those
11sales of service, transfer tangible personal property within
12the District as an incident to a sale of service. This tax may
13not be imposed on sales of food for human consumption that is
14to be consumed off the premises where it is sold (other than
15alcoholic beverages, soft drinks, and food prepared for
16immediate consumption) and prescription and non-prescription
17medicines, drugs, medical appliances, and insulin, urine
18testing materials, syringes, and needles used by diabetics. The
19tax imposed under this subsection and all civil penalties that
20may be assessed as an incident thereof shall be collected and
21enforced by the Department of Revenue. The Department has full
22power to administer and enforce this subsection; to collect all
23taxes and penalties due hereunder; to dispose of taxes and
24penalties so collected in the manner hereinafter provided; and
25to determine all rights to credit memoranda arising on account
26of the erroneous payment of tax or penalty hereunder. In the

 

 

SB0146- 76 -LRB101 00257 HLH 45261 b

1administration of, and compliance with this subsection, the
2Department and persons who are subject to this paragraph shall
3(i) have the same rights, remedies, privileges, immunities,
4powers, and duties, (ii) be subject to the same conditions,
5restrictions, limitations, penalties, exclusions, exemptions,
6and definitions of terms, and (iii) employ the same modes of
7procedure as are prescribed in Sections 2 (except that the
8reference to State in the definition of supplier maintaining a
9place of business in this State shall mean the District), 2a,
102b, 2c, 3 through 3-50 (in respect to all provisions therein
11other than the State rate of tax), 4 (except that the reference
12to the State shall be to the District), 5, 7, 8 (except that
13the jurisdiction to which the tax shall be a debt to the extent
14indicated in that Section 8 shall be the District), 9 (except
15as to the disposition of taxes and penalties collected), 10,
1611, 12 (except the reference therein to Section 2b of the
17Retailers' Occupation Tax Act), 13 (except that any reference
18to the State shall mean the District), Sections 15, 16, 17, 18,
1919 and 20 of the Service Occupation Tax Act and the Uniform
20Penalty and Interest Act, as fully as if those provisions were
21set forth herein.
22    Persons subject to any tax imposed under the authority
23granted in this subsection may reimburse themselves for their
24serviceman's tax liability by separately stating the tax as an
25additional charge, which charge may be stated in combination,
26in a single amount, with State tax that servicemen are

 

 

SB0146- 77 -LRB101 00257 HLH 45261 b

1authorized to collect under the Service Use Tax Act, in
2accordance with such bracket schedules as the Department may
3prescribe.
4    Whenever the Department determines that a refund should be
5made under this subsection to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the warrant to be drawn for the
8amount specified, and to the person named, in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the State Metro-East Park and Recreation
11District Fund.
12    Nothing in this subsection shall be construed to authorize
13the board to impose a tax upon the privilege of engaging in any
14business which under the Constitution of the United States may
15not be made the subject of taxation by the State.
16    (c) The Department shall immediately pay over to the State
17Treasurer, ex officio, as trustee, all taxes and penalties
18collected under this Section to be deposited into the State
19Metro-East Park and Recreation District Fund, which shall be an
20unappropriated trust fund held outside of the State treasury.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

SB0146- 78 -LRB101 00257 HLH 45261 b

1during the second preceding calendar month for sales within a
2STAR bond district. The Department shall make this
3certification only if the Metro East Park and Recreation
4District imposes a tax on real property as provided in the
5definition of "local sales taxes" under the Innovation
6Development and Economy Act.
7    After the monthly transfer to the STAR Bonds Revenue Fund,
8on or before the 25th day of each calendar month, the
9Department shall prepare and certify to the Comptroller the
10disbursement of stated sums of money pursuant to Section 35 of
11this Act to the District from which retailers have paid taxes
12or penalties to the Department during the second preceding
13calendar month. The amount to be paid to the District shall be
14the amount (not including credit memoranda) collected under
15this Section during the second preceding calendar month by the
16Department plus an amount the Department determines is
17necessary to offset any amounts that were erroneously paid to a
18different taxing body, and not including (i) an amount equal to
19the amount of refunds made during the second preceding calendar
20month by the Department on behalf of the District, (ii) any
21amount that the Department determines is necessary to offset
22any amounts that were payable to a different taxing body but
23were erroneously paid to the District, (iii) any amounts that
24are transferred to the STAR Bonds Revenue Fund, and (iv) 1%
251.5% of the remainder, which the Department shall transfer into
26the Tax Compliance and Administration Fund. The Department, at

 

 

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1the time of each monthly disbursement to the District, shall
2prepare and certify to the State Comptroller the amount to be
3transferred into the Tax Compliance and Administration Fund
4under this subsection. Within 10 days after receipt by the
5Comptroller of the disbursement certification to the District
6and the Tax Compliance and Administration Fund provided for in
7this Section to be given to the Comptroller by the Department,
8the Comptroller shall cause the orders to be drawn for the
9respective amounts in accordance with directions contained in
10the certification.
11    (d) For the purpose of determining whether a tax authorized
12under this Section is applicable, a retail sale by a producer
13of coal or another mineral mined in Illinois is a sale at
14retail at the place where the coal or other mineral mined in
15Illinois is extracted from the earth. This paragraph does not
16apply to coal or another mineral when it is delivered or
17shipped by the seller to the purchaser at a point outside
18Illinois so that the sale is exempt under the United States
19Constitution as a sale in interstate or foreign commerce.
20    (e) Nothing in this Section shall be construed to authorize
21the board to impose a tax upon the privilege of engaging in any
22business that under the Constitution of the United States may
23not be made the subject of taxation by this State.
24    (f) An ordinance imposing a tax under this Section or an
25ordinance extending the imposition of a tax to an additional
26county or counties shall be certified by the board and filed

 

 

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1with the Department of Revenue either (i) on or before the
2first day of April, whereupon the Department shall proceed to
3administer and enforce the tax as of the first day of July next
4following the filing; or (ii) on or before the first day of
5October, whereupon the Department shall proceed to administer
6and enforce the tax as of the first day of January next
7following the filing.
8    (g) When certifying the amount of a monthly disbursement to
9the District under this Section, the Department shall increase
10or decrease the amounts by an amount necessary to offset any
11misallocation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous 6
13months from the time a misallocation is discovered.
14(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
15100-587, eff. 6-4-18.)
 
16    Section 25. The Local Mass Transit District Act is amended
17by changing Section 5.01 as follows:
 
18    (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
19    Sec. 5.01. Metro East Mass Transit District; use and
20occupation taxes.
21    (a) The Board of Trustees of any Metro East Mass Transit
22District may, by ordinance adopted with the concurrence of
23two-thirds of the then trustees, impose throughout the District
24any or all of the taxes and fees provided in this Section. All

 

 

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

 

 

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1compliance with, this Section, the Department and persons who
2are subject to this Section shall have the same rights,
3remedies, privileges, immunities, powers and duties, and be
4subject to the same conditions, restrictions, limitations,
5penalties, exclusions, exemptions and definitions of terms and
6employ the same modes of procedure, as are prescribed in
7Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
8(in respect to all provisions therein other than the State rate
9of tax), 2c, 3 (except as to the disposition of taxes and
10penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
115k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
12the Retailers' Occupation Tax Act and Section 3-7 of the
13Uniform Penalty and Interest Act, as fully as if those
14provisions were set forth herein.
15    Persons subject to any tax imposed under the Section may
16reimburse themselves for their seller's tax liability
17hereunder by separately stating the tax as an additional
18charge, which charge may be stated in combination, in a single
19amount, with State taxes that sellers are required to collect
20under the Use Tax Act, in accordance with such bracket
21schedules as the Department may prescribe.
22    Whenever the Department determines that a refund should be
23made under this Section to a claimant instead of issuing a
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the warrant 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 the Metro East Mass Transit District tax fund
3established under paragraph (h) of this Section.
4    If a tax is imposed under this subsection (b), a tax shall
5also be imposed under subsections (c) and (d) of this Section.
6    For the purpose of determining whether a tax authorized
7under this Section is applicable, a retail sale, by a producer
8of coal or other mineral mined in Illinois, is a sale at retail
9at the place where the coal or other mineral mined in Illinois
10is extracted from the earth. This paragraph does not apply to
11coal or other mineral when it is delivered or shipped by the
12seller to the purchaser at a point outside Illinois so that the
13sale is exempt under the Federal Constitution as a sale in
14interstate or foreign commerce.
15    No tax shall be imposed or collected under this subsection
16on the sale of a motor vehicle in this State to a resident of
17another state if that motor vehicle will not be titled in this
18State.
19    Nothing in this Section shall be construed to authorize the
20Metro East Mass Transit District to impose a tax upon the
21privilege of engaging in any business which under the
22Constitution of the United States may not be made the subject
23of taxation by this State.
24    (c) If a tax has been imposed under subsection (b), a Metro
25East Mass Transit District Service Occupation Tax shall also be
26imposed upon all persons engaged, in the district, in the

 

 

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1business of making sales of service, who, as an incident to
2making those sales of service, transfer tangible personal
3property within the District, either in the form of tangible
4personal property or in the form of real estate as an incident
5to a sale of service. The tax rate shall be 1/4%, or as
6authorized under subsection (d-5) of this Section, of the
7selling price of tangible personal property so transferred
8within the district. The tax imposed under this paragraph and
9all civil penalties that may be assessed as an incident thereof
10shall be collected and enforced by the State Department of
11Revenue. The Department shall have full power to administer and
12enforce this paragraph; to collect all taxes and penalties due
13hereunder; to dispose of taxes and penalties so collected in
14the manner hereinafter provided; and to determine all rights to
15credit memoranda arising on account of the erroneous payment of
16tax or penalty hereunder. In the administration of, and
17compliance with this paragraph, the Department and persons who
18are subject to this paragraph shall have the same rights,
19remedies, privileges, immunities, powers and duties, and be
20subject to the same conditions, restrictions, limitations,
21penalties, exclusions, exemptions and definitions of terms and
22employ the same modes of procedure as are prescribed in
23Sections 1a-1, 2 (except that the reference to State in the
24definition of supplier maintaining a place of business in this
25State shall mean the Authority), 2a, 3 through 3-50 (in respect
26to all provisions therein other than the State rate of tax), 4

 

 

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1(except that the reference to the State shall be to the
2Authority), 5, 7, 8 (except that the jurisdiction to which the
3tax shall be a debt to the extent indicated in that Section 8
4shall be the District), 9 (except as to the disposition of
5taxes and penalties collected, and except that the returned
6merchandise credit for this tax may not be taken against any
7State tax), 10, 11, 12 (except the reference therein to Section
82b of the Retailers' Occupation Tax Act), 13 (except that any
9reference to the State shall mean the District), the first
10paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
11Occupation Tax Act and Section 3-7 of the Uniform Penalty and
12Interest Act, as fully as if those provisions were set forth
13herein.
14    Persons subject to any tax imposed under the authority
15granted in this paragraph may reimburse themselves for their
16serviceman's tax liability hereunder by separately stating the
17tax as an additional charge, which charge may be stated in
18combination, in a single amount, with State tax that servicemen
19are authorized to collect under the Service Use Tax Act, in
20accordance with such bracket schedules as the Department may
21prescribe.
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 warrant to be drawn for the
26amount specified, and to the person named, in the notification

 

 

SB0146- 86 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 87 -LRB101 00257 HLH 45261 b

1registered if the Department and the State agency or State
2officer determine that this procedure will expedite the
3processing of applications for title or registration.
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 so collected in the manner hereinafter provided; and
8to determine all rights to credit memoranda or refunds arising
9on account 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 of
23the Use Tax Act and Section 3-7 of the Uniform Penalty and
24Interest Act, that are not inconsistent with this paragraph, as
25fully as if those provisions were set forth herein.
26    Whenever the Department determines that a refund should be

 

 

SB0146- 88 -LRB101 00257 HLH 45261 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 Metro East Mass Transit District tax fund
7established under paragraph (h) of this Section.
8    (d-5) (A) The county board of any county participating in
9the Metro East Mass Transit District may authorize, by
10ordinance, a referendum on the question of whether the tax
11rates for the Metro East Mass Transit District Retailers'
12Occupation Tax, the Metro East Mass Transit District Service
13Occupation Tax, and the Metro East Mass Transit District Use
14Tax for the District should be increased from 0.25% to 0.75%.
15Upon adopting the ordinance, the county board shall certify the
16proposition to the proper election officials who shall submit
17the proposition to the voters of the District at the next
18election, in accordance with the general election law.
19    The proposition shall be in substantially the following
20form:
21        Shall the tax rates for the Metro East Mass Transit
22    District Retailers' Occupation Tax, the Metro East Mass
23    Transit District Service Occupation Tax, and the Metro East
24    Mass Transit District Use Tax be increased from 0.25% to
25    0.75%?
26    (B) Two thousand five hundred electors of any Metro East

 

 

SB0146- 89 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 90 -LRB101 00257 HLH 45261 b

1    Transit District Service Occupation Tax, and the Metro East
2    Mass Transit District Use Tax be increased from 0.25% to
3    0.75%?
4        Name                Address, with Street and Number.
5..............................................................
6..............................................................
7    (C) The votes shall be recorded as "YES" or "NO". If a
8majority of all votes cast on the proposition are for the
9increase in the tax rates, the Metro East Mass Transit District
10shall begin imposing the increased rates in the District, and
11the Department of Revenue shall begin collecting the increased
12amounts, as provided under this Section. An ordinance imposing
13or discontinuing 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 the adoption and filing, or on or before the first
19day of April, whereupon the Department shall proceed to
20administer and enforce this Section as of the first day of July
21next following the adoption and filing.
22    (D) If the voters have approved a referendum under this
23subsection, before November 1, 1994, to increase the tax rate
24under this subsection, the Metro East Mass Transit District
25Board of Trustees may adopt by a majority vote an ordinance at
26any time before January 1, 1995 that excludes from the rate

 

 

SB0146- 91 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 92 -LRB101 00257 HLH 45261 b

1Trustees may adopt by a majority vote an ordinance that
2excludes from the rate increase tangible personal property that
3is titled or registered with an agency of this State's
4government. The ordinance excluding titled or registered
5tangible personal property from the rate increase shall be
6adopted, and a certified copy of that ordinance shall be filed
7with the Department on or before October 1, whereupon the
8Department shall administer and enforce this exclusion from the
9rate increase as of the following January 1, or on or before
10April 1, whereupon the Department shall administer and enforce
11this exclusion from the rate increase as of the following July
121. The Board of Trustees of any Metro East Mass Transit
13District may never reimpose a previously excluded tax rate
14increase on tangible personal property titled or registered
15with an agency of this State's government.
16    (d-6) If the Board of Trustees of any Metro East Mass
17Transit District has imposed a rate increase under subsection
18(d-5) and filed an ordinance with the Department of Revenue
19excluding titled property from the higher rate, then that Board
20may, by ordinance adopted with the concurrence of two-thirds of
21the then trustees, impose throughout the District a fee. The
22fee on the excluded property shall not exceed $20 per retail
23transaction or an amount equal to the amount of tax excluded,
24whichever is less, on tangible personal property that is titled
25or registered with an agency of this State's government.
26Beginning July 1, 2004, the fee shall apply only to titled

 

 

SB0146- 93 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 94 -LRB101 00257 HLH 45261 b

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

 

 

SB0146- 95 -LRB101 00257 HLH 45261 b

1certified copy thereof filed with the Department on or before
2the first day of July, whereupon the Department shall proceed
3to administer and enforce this Section as of the first day of
4October next following such adoption and filing. Beginning
5January 1, 1993, except as provided in subsection (d-5) of this
6Section, an ordinance or resolution imposing or discontinuing
7the tax hereunder shall be adopted and a certified copy thereof
8filed with the Department on or before the first day of
9October, whereupon the Department shall proceed to administer
10and enforce this Section as of the first day of January next
11following such adoption and filing, or, beginning January 1,
122004, on or before the first day of April, whereupon the
13Department shall proceed to administer and enforce this Section
14as of the first day of July next following the adoption and
15filing.
16    (h) Except as provided in subsection (d-7.1), the State
17Department of Revenue shall, upon collecting any taxes as
18provided in this Section, pay the taxes over to the State
19Treasurer as trustee for the District. The taxes shall be held
20in a trust fund outside the State Treasury.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

SB0146- 96 -LRB101 00257 HLH 45261 b

1during the second preceding calendar month for sales within a
2STAR bond district. The Department shall make this
3certification only if the local mass transit district imposes a
4tax on real property as provided in the definition of "local
5sales taxes" under the Innovation Development and Economy Act.
6    After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the State
8Department of Revenue shall prepare and certify to the
9Comptroller of the State of Illinois the amount to be paid to
10the District, which shall be the amount (not including credit
11memoranda) collected under this Section during the second
12preceding calendar month by the Department plus an amount the
13Department determines is necessary to offset any amounts that
14were erroneously paid to a different taxing body, and not
15including any amount equal to the amount of refunds made during
16the second preceding calendar month by the Department on behalf
17of the District, and not including any amount that the
18Department determines is necessary to offset any amounts that
19were payable to a different taxing body but were erroneously
20paid to the District, and less any amounts that are transferred
21to the STAR Bonds Revenue Fund, less 1% 1.5% of the remainder,
22which the Department shall transfer into the Tax Compliance and
23Administration Fund. The Department, at the time of each
24monthly disbursement to the District, shall prepare and certify
25to the State Comptroller the amount to be transferred into the
26Tax Compliance and Administration Fund under this subsection.

 

 

SB0146- 97 -LRB101 00257 HLH 45261 b

1Within 10 days after receipt by the Comptroller of the
2certification of the amount to be paid to the District and the
3Tax Compliance and Administration Fund, the Comptroller shall
4cause an order to be drawn for payment for the amount in
5accordance with the direction in the certification.
6(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
7100-587, eff. 6-4-18.)
 
8    Section 30. The Regional Transportation Authority Act is
9amended by changing Section 4.03 as follows:
 
10    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
11    Sec. 4.03. Taxes.
12    (a) In order to carry out any of the powers or purposes of
13the Authority, the Board may by ordinance adopted with the
14concurrence of 12 of the then Directors, impose throughout the
15metropolitan region any or all of the taxes provided in this
16Section. Except as otherwise provided in this Act, taxes
17imposed under this Section and civil penalties imposed incident
18thereto shall be collected and enforced by the State Department
19of Revenue. The Department shall have the power to administer
20and enforce the taxes and to determine all rights for refunds
21for erroneous payments of the taxes. Nothing in Public Act
2295-708 is intended to invalidate any taxes currently imposed by
23the Authority. The increased vote requirements to impose a tax
24shall only apply to actions taken after January 1, 2008 (the

 

 

SB0146- 98 -LRB101 00257 HLH 45261 b

1effective date of Public Act 95-708).
2    (b) The Board may impose a public transportation tax upon
3all persons engaged in the metropolitan region in the business
4of selling at retail motor fuel for operation of motor vehicles
5upon public highways. The tax shall be at a rate not to exceed
65% of the gross receipts from the sales of motor fuel in the
7course of the business. As used in this Act, the term "motor
8fuel" shall have the same meaning as in the Motor Fuel Tax Law.
9The Board may provide for details of the tax. The provisions of
10any tax shall conform, as closely as may be practicable, to the
11provisions of the Municipal Retailers Occupation Tax Act,
12including without limitation, conformity to penalties with
13respect to the tax imposed and as to the powers of the State
14Department of Revenue to promulgate and enforce rules and
15regulations relating to the administration and enforcement of
16the provisions of the tax imposed, except that reference in the
17Act to any municipality shall refer to the Authority and the
18tax shall be imposed only with regard to receipts from sales of
19motor fuel in the metropolitan region, at rates as limited by
20this Section.
21    (c) In connection with the tax imposed under paragraph (b)
22of this Section the Board may impose a tax upon the privilege
23of using in the metropolitan region motor fuel for the
24operation of a motor vehicle upon public highways, the tax to
25be at a rate not in excess of the rate of tax imposed under
26paragraph (b) of this Section. The Board may provide for

 

 

SB0146- 99 -LRB101 00257 HLH 45261 b

1details of the tax.
2    (d) The Board may impose a motor vehicle parking tax upon
3the privilege of parking motor vehicles at off-street parking
4facilities in the metropolitan region at which a fee is
5charged, and may provide for reasonable classifications in and
6exemptions to the tax, for administration and enforcement
7thereof and for civil penalties and refunds thereunder and may
8provide criminal penalties thereunder, the maximum penalties
9not to exceed the maximum criminal penalties provided in the
10Retailers' Occupation Tax Act. The Authority may collect and
11enforce the tax itself or by contract with any unit of local
12government. The State Department of Revenue shall have no
13responsibility for the collection and enforcement unless the
14Department agrees with the Authority to undertake the
15collection and enforcement. As used in this paragraph, the term
16"parking facility" means a parking area or structure having
17parking spaces for more than 2 vehicles at which motor vehicles
18are permitted to park in return for an hourly, daily, or other
19periodic fee, whether publicly or privately owned, but does not
20include parking spaces on a public street, the use of which is
21regulated by parking meters.
22    (e) The Board may impose a Regional Transportation
23Authority Retailers' Occupation Tax upon all persons engaged in
24the business of selling tangible personal property at retail in
25the metropolitan region. In Cook County the tax rate shall be
261.25% of the gross receipts from sales of food for human

 

 

SB0146- 100 -LRB101 00257 HLH 45261 b

1consumption that is to be consumed off the premises where it is
2sold (other than alcoholic beverages, soft drinks and food that
3has been prepared for immediate consumption) and prescription
4and nonprescription medicines, drugs, medical appliances and
5insulin, urine testing materials, syringes and needles used by
6diabetics, and 1% of the gross receipts from other taxable
7sales made in the course of that business. In DuPage, Kane,
8Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
9of the gross receipts from all taxable sales made in the course
10of that business. The tax imposed under this Section and all
11civil penalties that may be assessed as an incident thereof
12shall be collected and enforced by the State Department of
13Revenue. The Department shall have full power to administer and
14enforce this Section; to collect all taxes and penalties so
15collected in the manner hereinafter provided; and to determine
16all rights to credit memoranda arising on account of the
17erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with this Section, the
19Department and persons who are subject to this Section shall
20have the same rights, remedies, privileges, immunities, powers
21and duties, and be subject to the same conditions,
22restrictions, limitations, penalties, exclusions, exemptions
23and definitions of terms, and employ the same modes of
24procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
251e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
26therein other than the State rate of tax), 2c, 3 (except as to

 

 

SB0146- 101 -LRB101 00257 HLH 45261 b

1the disposition of taxes and penalties collected), 4, 5, 5a,
25b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
37, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
4and Section 3-7 of the Uniform Penalty and Interest Act, as
5fully as if those provisions were set forth herein.
6    Persons subject to any tax imposed under the authority
7granted in this Section may reimburse themselves for their
8seller's tax liability hereunder by separately stating the tax
9as an additional charge, which charge may be stated in
10combination in a single amount with State taxes that sellers
11are required to collect under the Use Tax Act, under any
12bracket schedules the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the warrant to be drawn for the
17amount specified, and to the person named, in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the Regional Transportation Authority tax fund
20established under paragraph (n) of this Section.
21    If a tax is imposed under this subsection (e), a tax shall
22also be imposed under subsections (f) and (g) of this Section.
23    For the purpose of determining whether a tax authorized
24under this Section is applicable, a retail sale by a producer
25of coal or other mineral mined in Illinois, is a sale at retail
26at the place where the coal or other mineral mined in Illinois

 

 

SB0146- 102 -LRB101 00257 HLH 45261 b

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

 

 

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1Nursing Home Care Act, the Specialized Mental Health
2Rehabilitation Act of 2013, the ID/DD Community Care Act, or
3the MC/DD Act that is located in the metropolitan region; (2)
41.25% of the selling price of food for human consumption that
5is to be consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks and food that has been
7prepared for immediate consumption) and prescription and
8nonprescription medicines, drugs, medical appliances and
9insulin, urine testing materials, syringes and needles used by
10diabetics; and (3) 1% of the selling price from other taxable
11sales of tangible personal property transferred. In DuPage,
12Kane, Lake, McHenry and Will Counties the rate shall be 0.75%
13of the selling price of all tangible personal property
14transferred.
15    The tax imposed under this paragraph and all civil
16penalties that may be assessed as an incident thereof shall be
17collected and enforced by the State Department of Revenue. The
18Department shall have full power to administer and enforce this
19paragraph; to collect all taxes and penalties due hereunder; to
20dispose of taxes and penalties collected in the manner
21hereinafter provided; and to determine all rights to credit
22memoranda arising on account of the erroneous payment of tax or
23penalty hereunder. In the administration of and compliance with
24this paragraph, the Department and persons who are subject to
25this paragraph shall have the same rights, remedies,
26privileges, immunities, powers and duties, and be subject to

 

 

SB0146- 104 -LRB101 00257 HLH 45261 b

1the same conditions, restrictions, limitations, penalties,
2exclusions, exemptions and definitions of terms, and employ the
3same modes of procedure, as are prescribed in Sections 1a-1, 2,
42a, 3 through 3-50 (in respect to all provisions therein other
5than the State rate of tax), 4 (except that the reference to
6the State shall be to the Authority), 5, 7, 8 (except that the
7jurisdiction to which the tax shall be a debt to the extent
8indicated in that Section 8 shall be the Authority), 9 (except
9as to the disposition of taxes and penalties collected, and
10except that the returned merchandise credit for this tax may
11not be taken against any State tax), 10, 11, 12 (except the
12reference therein to Section 2b of the Retailers' Occupation
13Tax Act), 13 (except that any reference to the State shall mean
14the Authority), the first paragraph of Section 15, 16, 17, 18,
1519 and 20 of the Service Occupation Tax Act and Section 3-7 of
16the Uniform Penalty and Interest Act, as fully as if those
17provisions were set forth herein.
18    Persons subject to any tax imposed under the authority
19granted in this paragraph may reimburse themselves for their
20serviceman's tax liability hereunder by separately stating the
21tax as an additional charge, that charge may be stated in
22combination in a single amount with State tax that servicemen
23are authorized to collect under the Service Use Tax Act, under
24any bracket schedules the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this paragraph to a claimant instead of issuing a

 

 

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

 

 

SB0146- 106 -LRB101 00257 HLH 45261 b

1determination must be obtained from the Department of Revenue,
2before the title or certificate of registration for the
3property may be issued. The tax or proof of exemption may be
4transmitted to the Department by way of the State agency with
5which, or the State officer with whom, the tangible personal
6property must be titled or registered if the Department and the
7State agency or State officer determine that this procedure
8will expedite the processing of applications for title or
9registration.
10    The Department shall have full power to administer and
11enforce this paragraph; to collect all taxes, penalties and
12interest due hereunder; to dispose of taxes, penalties and
13interest collected in the manner hereinafter provided; and to
14determine all rights to credit memoranda or refunds arising on
15account of the erroneous payment of tax, penalty or interest
16hereunder. In the administration of and compliance with this
17paragraph, the Department and persons who are subject to this
18paragraph shall have the same rights, remedies, privileges,
19immunities, powers and duties, and be subject to the same
20conditions, restrictions, limitations, penalties, exclusions,
21exemptions and definitions of terms and employ the same modes
22of procedure, as are prescribed in Sections 2 (except the
23definition of "retailer maintaining a place of business in this
24State"), 3 through 3-80 (except provisions pertaining to the
25State rate of tax, and except provisions concerning collection
26or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,

 

 

SB0146- 107 -LRB101 00257 HLH 45261 b

119 (except the portions pertaining to claims by retailers and
2except the last paragraph concerning refunds), 20, 21 and 22 of
3the Use Tax Act, and are not inconsistent with this paragraph,
4as fully as if those provisions were set forth herein.
5    Whenever the Department determines that a refund should be
6made under this paragraph 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 the notification
10from the Department. The refund shall be paid by the State
11Treasurer out of the Regional Transportation Authority tax fund
12established under paragraph (n) of this Section.
13    (h) The Authority may impose a replacement vehicle tax of
14$50 on any passenger car as defined in Section 1-157 of the
15Illinois Vehicle Code purchased within the metropolitan region
16by or on behalf of an insurance company to replace a passenger
17car of an insured person in settlement of a total loss claim.
18The tax imposed may not become effective before the first day
19of the month following the passage of the ordinance imposing
20the tax and receipt of a certified copy of the ordinance by the
21Department of Revenue. The Department of Revenue shall collect
22the tax for the Authority in accordance with Sections 3-2002
23and 3-2003 of the Illinois Vehicle Code.
24    The Department shall immediately pay over to the State
25Treasurer, ex officio, as trustee, all taxes collected
26hereunder.

 

 

SB0146- 108 -LRB101 00257 HLH 45261 b

1    As soon as possible after the first day of each month,
2beginning January 1, 2011, upon certification of the Department
3of Revenue, the Comptroller shall order transferred, and the
4Treasurer shall transfer, to the STAR Bonds Revenue Fund the
5local sales tax increment, as defined in the Innovation
6Development and Economy Act, collected under this Section
7during the second preceding calendar month for sales within a
8STAR bond district.
9    After the monthly transfer to the STAR Bonds Revenue Fund,
10on or before the 25th day of each calendar month, the
11Department shall prepare and certify to the Comptroller the
12disbursement of stated sums of money to the Authority. The
13amount to be paid to the Authority shall be the amount
14collected hereunder during the second preceding calendar month
15by the Department, less any amount determined by the Department
16to be necessary for the payment of refunds, and less any
17amounts that are transferred to the STAR Bonds Revenue Fund.
18Within 10 days after receipt by the Comptroller of the
19disbursement certification to the Authority provided for in
20this Section to be given to the Comptroller by the Department,
21the Comptroller shall cause the orders to be drawn for that
22amount in accordance with the directions contained in the
23certification.
24    (i) The Board may not impose any other taxes except as it
25may from time to time be authorized by law to impose.
26    (j) A certificate of registration issued by the State

 

 

SB0146- 109 -LRB101 00257 HLH 45261 b

1Department of Revenue to a retailer under the Retailers'
2Occupation Tax Act or under the Service Occupation Tax Act
3shall permit the registrant to engage in a business that is
4taxed under the tax imposed under paragraphs (b), (e), (f) or
5(g) of this Section and no additional registration shall be
6required under the tax. A certificate issued under the Use Tax
7Act or the Service Use Tax Act shall be applicable with regard
8to any tax imposed under paragraph (c) of this Section.
9    (k) The provisions of any tax imposed under paragraph (c)
10of this Section shall conform as closely as may be practicable
11to the provisions of the Use Tax Act, including without
12limitation conformity as to penalties with respect to the tax
13imposed and as to the powers of the State Department of Revenue
14to promulgate and enforce rules and regulations relating to the
15administration and enforcement of the provisions of the tax
16imposed. The taxes shall be imposed only on use within the
17metropolitan region and at rates as provided in the paragraph.
18    (l) The Board in imposing any tax as provided in paragraphs
19(b) and (c) of this Section, shall, after seeking the advice of
20the State Department of Revenue, provide means for retailers,
21users or purchasers of motor fuel for purposes other than those
22with regard to which the taxes may be imposed as provided in
23those paragraphs to receive refunds of taxes improperly paid,
24which provisions may be at variance with the refund provisions
25as applicable under the Municipal Retailers Occupation Tax Act.
26The State Department of Revenue may provide for certificates of

 

 

SB0146- 110 -LRB101 00257 HLH 45261 b

1registration for users or purchasers of motor fuel for purposes
2other than those with regard to which taxes may be imposed as
3provided in paragraphs (b) and (c) of this Section to
4facilitate the reporting and nontaxability of the exempt sales
5or uses.
6    (m) Any ordinance imposing or discontinuing any tax under
7this Section shall be adopted and a certified copy thereof
8filed with the Department on or before June 1, whereupon the
9Department of Revenue shall proceed to administer and enforce
10this Section on behalf of the Regional Transportation Authority
11as of September 1 next following such adoption and filing.
12Beginning January 1, 1992, an ordinance or resolution imposing
13or discontinuing the tax hereunder shall be adopted and a
14certified copy thereof filed with the Department on or before
15the first day of July, whereupon the Department shall proceed
16to administer and enforce this Section as of the first day of
17October next following such adoption and filing. Beginning
18January 1, 1993, an ordinance or resolution imposing,
19increasing, decreasing, or discontinuing the tax hereunder
20shall be adopted and a certified copy thereof filed with the
21Department, whereupon the Department shall proceed to
22administer and enforce this Section as of the first day of the
23first month to occur not less than 60 days following such
24adoption and filing. Any ordinance or resolution of the
25Authority imposing a tax under this Section and in effect on
26August 1, 2007 shall remain in full force and effect and shall

 

 

SB0146- 111 -LRB101 00257 HLH 45261 b

1be administered by the Department of Revenue under the terms
2and conditions and rates of tax established by such ordinance
3or resolution until the Department begins administering and
4enforcing an increased tax under this Section as authorized by
5Public Act 95-708. The tax rates authorized by Public Act
695-708 are effective only if imposed by ordinance of the
7Authority.
8    (n) Except as otherwise provided in this subsection (n),
9the State Department of Revenue shall, upon collecting any
10taxes as provided in this Section, pay the taxes over to the
11State Treasurer as trustee for the Authority. The taxes shall
12be held in a trust fund outside the State Treasury. On or
13before the 25th day of each calendar month, the State
14Department of Revenue shall prepare and certify to the
15Comptroller of the State of Illinois and to the Authority (i)
16the amount of taxes collected in each County other than Cook
17County in the metropolitan region, (ii) the amount of taxes
18collected within the City of Chicago, and (iii) the amount
19collected in that portion of Cook County outside of Chicago,
20each amount less the amount necessary for the payment of
21refunds to taxpayers located in those areas described in items
22(i), (ii), and (iii), and less 1% 1.5% of the remainder, which
23shall be transferred from the trust fund into the Tax
24Compliance and Administration Fund. The Department, at the time
25of each monthly disbursement to the Authority, shall prepare
26and certify to the State Comptroller the amount to be

 

 

SB0146- 112 -LRB101 00257 HLH 45261 b

1transferred into the Tax Compliance and Administration Fund
2under this subsection. Within 10 days after receipt by the
3Comptroller of the certification of the amounts, the
4Comptroller shall cause an order to be drawn for the transfer
5of the amount certified into the Tax Compliance and
6Administration Fund and the payment of two-thirds of the
7amounts certified in item (i) of this subsection to the
8Authority and one-third of the amounts certified in item (i) of
9this subsection to the respective counties other than Cook
10County and the amount certified in items (ii) and (iii) of this
11subsection to the Authority.
12    In addition to the disbursement required by the preceding
13paragraph, an allocation shall be made in July 1991 and each
14year thereafter to the Regional Transportation Authority. The
15allocation shall be made in an amount equal to the average
16monthly distribution during the preceding calendar year
17(excluding the 2 months of lowest receipts) and the allocation
18shall include the amount of average monthly distribution from
19the Regional Transportation Authority Occupation and Use Tax
20Replacement Fund. The distribution made in July 1992 and each
21year thereafter under this paragraph and the preceding
22paragraph shall be reduced by the amount allocated and
23disbursed under this paragraph in the preceding calendar year.
24The Department of Revenue shall prepare and certify to the
25Comptroller for disbursement the allocations made in
26accordance with this paragraph.

 

 

SB0146- 113 -LRB101 00257 HLH 45261 b

1    (o) Failure to adopt a budget ordinance or otherwise to
2comply with Section 4.01 of this Act or to adopt a Five-year
3Capital Program or otherwise to comply with paragraph (b) of
4Section 2.01 of this Act shall not affect the validity of any
5tax imposed by the Authority otherwise in conformity with law.
6    (p) At no time shall a public transportation tax or motor
7vehicle parking tax authorized under paragraphs (b), (c) and
8(d) of this Section be in effect at the same time as any
9retailers' occupation, use or service occupation tax
10authorized under paragraphs (e), (f) and (g) of this Section is
11in effect.
12    Any taxes imposed under the authority provided in
13paragraphs (b), (c) and (d) shall remain in effect only until
14the time as any tax authorized by paragraphs (e), (f) or (g) of
15this Section are imposed and becomes effective. Once any tax
16authorized by paragraphs (e), (f) or (g) is imposed the Board
17may not reimpose taxes as authorized in paragraphs (b), (c) and
18(d) of the Section unless any tax authorized by paragraphs (e),
19(f) or (g) of this Section becomes ineffective by means other
20than an ordinance of the Board.
21    (q) Any existing rights, remedies and obligations
22(including enforcement by the Regional Transportation
23Authority) arising under any tax imposed under paragraphs (b),
24(c) or (d) of this Section shall not be affected by the
25imposition of a tax under paragraphs (e), (f) or (g) of this
26Section.

 

 

SB0146- 114 -LRB101 00257 HLH 45261 b

1(Source: P.A. 99-180, eff. 7-29-15; 99-217, eff. 7-31-15;
299-642, eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff.
36-4-18.)
 
4    Section 35. The Water Commission Act of 1985 is amended by
5changing Section 4 as follows:
 
6    (70 ILCS 3720/4)  (from Ch. 111 2/3, par. 254)
7    Sec. 4. Taxes.
8    (a) The board of commissioners of any county water
9commission may, by ordinance, impose throughout the territory
10of the commission any or all of the taxes provided in this
11Section for its corporate purposes. However, no county water
12commission may impose any such tax unless the commission
13certifies the proposition of imposing the tax to the proper
14election officials, who shall submit the proposition to the
15voters residing in the territory at an election in accordance
16with the general election law, and the proposition has been
17approved by a majority of those voting on the proposition.
18    The proposition shall be in the form provided in Section 5
19or shall be substantially in the following form:
20-------------------------------------------------------------
21    Shall the (insert corporate
22name of county water commission)           YES
23impose (state type of tax or         ------------------------
24taxes to be imposed) at the                NO

 

 

SB0146- 115 -LRB101 00257 HLH 45261 b

1rate of 1/4%?
2-------------------------------------------------------------
3    Taxes imposed under this Section and civil penalties
4imposed incident thereto shall be collected and enforced by the
5State Department of Revenue. The Department shall have the
6power to administer and enforce the taxes and to determine all
7rights for refunds for erroneous payments of the taxes.
8    (b) The board of commissioners may impose a County Water
9Commission Retailers' Occupation Tax upon all persons engaged
10in the business of selling tangible personal property at retail
11in the territory of the commission at a rate of 1/4% of the
12gross receipts from the sales made in the course of such
13business within the territory. The tax imposed under this
14paragraph and all civil penalties that may be assessed as an
15incident thereof shall be collected and enforced by the State
16Department of Revenue. The Department shall have full power to
17administer and enforce this paragraph; to collect all taxes and
18penalties due hereunder; to dispose of taxes and penalties so
19collected in the manner hereinafter provided; and to determine
20all rights to credit memoranda arising on account of the
21erroneous payment of tax or penalty hereunder. In the
22administration of, and compliance with, this paragraph, the
23Department and persons who are subject to this paragraph shall
24have the same rights, remedies, privileges, immunities, powers
25and duties, and be subject to the same conditions,
26restrictions, limitations, penalties, exclusions, exemptions

 

 

SB0146- 116 -LRB101 00257 HLH 45261 b

1and definitions of terms, and employ the same modes of
2procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
31e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
4therein other than the State rate of tax except that food for
5human consumption that is to be consumed off the premises where
6it is sold (other than alcoholic beverages, soft drinks, and
7food that has been prepared for immediate consumption) and
8prescription and nonprescription medicine, drugs, medical
9appliances and insulin, urine testing materials, syringes, and
10needles used by diabetics, for human use, shall not be subject
11to tax hereunder), 2c, 3 (except as to the disposition of taxes
12and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
135i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13
14of the Retailers' Occupation Tax Act and Section 3-7 of the
15Uniform Penalty and Interest Act, as fully as if those
16provisions were set forth herein.
17    Persons subject to any tax imposed under the authority
18granted in this paragraph may reimburse themselves for their
19seller's tax liability hereunder by separately stating the tax
20as an additional charge, which charge may be stated in
21combination, in a single amount, with State taxes that sellers
22are required to collect under the Use Tax Act and under
23subsection (e) of Section 4.03 of the Regional Transportation
24Authority Act, in accordance with such bracket schedules as the
25Department may prescribe.
26    Whenever the Department determines that a refund should be

 

 

SB0146- 117 -LRB101 00257 HLH 45261 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 warrant 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 a county water commission tax fund established
7under subsection (g) of this Section.
8    For the purpose of determining whether a tax authorized
9under this paragraph is applicable, a retail sale by a producer
10of coal or other mineral mined in Illinois is a sale at retail
11at the place where the coal or other mineral mined in Illinois
12is extracted from the earth. This paragraph does not apply to
13coal or other mineral when it is delivered or shipped by the
14seller to the purchaser at a point outside Illinois so that the
15sale is exempt under the Federal Constitution as a sale in
16interstate or foreign commerce.
17    If a tax is imposed under this subsection (b), a tax shall
18also be imposed under subsections (c) and (d) of this Section.
19    No tax shall be imposed or collected under this subsection
20on the sale of a motor vehicle in this State to a resident of
21another state if that motor vehicle will not be titled in this
22State.
23    Nothing in this paragraph shall be construed to authorize a
24county water commission to impose a tax upon the privilege of
25engaging in any business which under the Constitution of the
26United States may not be made the subject of taxation by this

 

 

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1State.
2    (c) If a tax has been imposed under subsection (b), a
3County Water Commission Service Occupation Tax shall also be
4imposed upon all persons engaged, in the territory of the
5commission, in the business of making sales of service, who, as
6an incident to making the sales of service, transfer tangible
7personal property within the territory. The tax rate shall be
81/4% of the selling price of tangible personal property so
9transferred within the territory. The tax imposed under this
10paragraph and all civil penalties that may be assessed as an
11incident thereof shall be collected and enforced by the State
12Department of Revenue. The Department shall have full power to
13administer and enforce this paragraph; to collect all taxes and
14penalties due hereunder; to dispose of taxes and penalties so
15collected in the manner hereinafter provided; and to determine
16all rights to credit memoranda arising on account of the
17erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with, this paragraph, the
19Department and persons who are subject to this paragraph shall
20have the same rights, remedies, privileges, immunities, powers
21and duties, and be subject to the same conditions,
22restrictions, limitations, penalties, exclusions, exemptions
23and definitions of terms, and employ the same modes of
24procedure, as are prescribed in Sections 1a-1, 2 (except that
25the reference to State in the definition of supplier
26maintaining a place of business in this State shall mean the

 

 

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1territory of the commission), 2a, 3 through 3-50 (in respect to
2all provisions therein other than the State rate of tax except
3that food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks, and food that has been prepared for immediate
6consumption) and prescription and nonprescription medicines,
7drugs, medical appliances and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, shall not be subject to tax hereunder), 4 (except that the
10reference to the State shall be to the territory of the
11commission), 5, 7, 8 (except that the jurisdiction to which the
12tax shall be a debt to the extent indicated in that Section 8
13shall be the commission), 9 (except as to the disposition of
14taxes and penalties collected and except that the returned
15merchandise credit for this tax may not be taken against any
16State tax), 10, 11, 12 (except the reference therein to Section
172b of the Retailers' Occupation Tax Act), 13 (except that any
18reference to the State shall mean the territory of the
19commission), the first paragraph of Section 15, 15.5, 16, 17,
2018, 19, and 20 of the Service Occupation Tax Act as fully as if
21those provisions were set forth herein.
22    Persons subject to any tax imposed under the authority
23granted in this paragraph may reimburse themselves for their
24serviceman's tax liability hereunder by separately stating the
25tax as an additional charge, which charge may be stated in
26combination, in a single amount, with State tax that servicemen

 

 

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1are authorized to collect under the Service Use Tax Act, and
2any tax for which servicemen may be liable under subsection (f)
3of Section 4.03 of the Regional Transportation Authority Act,
4in accordance with such bracket schedules as the Department may
5prescribe.
6    Whenever the Department determines that a refund should be
7made under this paragraph to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the warrant to be drawn for the
10amount specified, and to the person named, in the notification
11from the Department. The refund shall be paid by the State
12Treasurer out of a county water commission tax fund established
13under subsection (g) of this Section.
14    Nothing in this paragraph shall be construed to authorize a
15county water commission to impose a tax upon the privilege of
16engaging in any business which under the Constitution of the
17United States may not be made the subject of taxation by the
18State.
19    (d) If a tax has been imposed under subsection (b), a tax
20shall also be imposed upon the privilege of using, in the
21territory of the commission, any item of tangible personal
22property that is purchased outside the territory at retail from
23a retailer, and that is titled or registered with an agency of
24this State's government, at a rate of 1/4% of the selling price
25of the tangible personal property within the territory, as
26"selling price" is defined in the Use Tax Act. The tax shall be

 

 

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

 

 

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1(except the definition of "retailer maintaining a place of
2business in this State"), 3 through 3-80 (except provisions
3pertaining to the State rate of tax, and except provisions
4concerning collection or refunding of the tax by retailers, and
5except that food for human consumption that is to be consumed
6off the premises where it is sold (other than alcoholic
7beverages, soft drinks, and food that has been prepared for
8immediate consumption) and prescription and nonprescription
9medicines, drugs, medical appliances and insulin, urine
10testing materials, syringes, and needles used by diabetics, for
11human use, shall not be subject to tax hereunder), 4, 11, 12,
1212a, 14, 15, 19 (except the portions pertaining to claims by
13retailers and except the last paragraph concerning refunds),
1420, 21, and 22 of the Use Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act that are not inconsistent with this
16paragraph, as fully as if those provisions were set forth
17herein.
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 order 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 a county water commission tax fund established
25under subsection (g) of this Section.
26    (e) A certificate of registration issued by the State

 

 

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

 

 

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1    (g) The State Department of Revenue shall, upon collecting
2any taxes as provided in this Section, pay the taxes over to
3the State Treasurer as trustee for the commission. The taxes
4shall be held in a trust fund outside the State Treasury.
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 State
15Department of Revenue shall prepare and certify to the
16Comptroller of the State of Illinois the amount to be paid to
17the commission, which shall be the amount (not including credit
18memoranda) collected under this Section during the second
19preceding calendar month by the Department plus an amount the
20Department determines is necessary to offset any amounts that
21were erroneously paid to a different taxing body, and not
22including any amount equal to the amount of refunds made during
23the second preceding calendar month by the Department on behalf
24of the commission, and not including any amount that the
25Department determines is necessary to offset any amounts that
26were payable to a different taxing body but were erroneously

 

 

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1paid to the commission, and less any amounts that are
2transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
3remainder, which shall be transferred into the Tax Compliance
4and Administration Fund. The Department, at the time of each
5monthly disbursement to the commission, shall prepare and
6certify to the State Comptroller the amount to be transferred
7into the Tax Compliance and Administration Fund under this
8subsection. Within 10 days after receipt by the Comptroller of
9the certification of the amount to be paid to the commission
10and the Tax Compliance and Administration Fund, the Comptroller
11shall cause an order to be drawn for the payment for the amount
12in accordance with the direction in the certification.
13    (h) Beginning June 1, 2016, any tax imposed pursuant to
14this Section may no longer be imposed or collected, unless a
15continuation of the tax is approved by the voters at a
16referendum as set forth in this Section.
17(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
18100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
198-14-18.)
 
20    Section 99. Effective date. This Act takes effect July 1,
212019.