Rep. Thomas Holbrook

Filed: 1/11/2010

 

 


 

 


 
09600SB2093ham002 LRB096 11467 RLJ 32088 a

1
AMENDMENT TO SENATE BILL 2093

2     AMENDMENT NO. ______. Amend Senate Bill 2093, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
 
5     "Section 1. Short title. This Act may be cited as the STAR
6 Bonds Financing Act.
 
7     Section 5. Purpose. It is hereby found and declared that
8 the purpose of this Act is to promote, stimulate, and develop
9 the general and economic welfare of the State of Illinois and
10 its communities and to assist in the development and
11 redevelopment of major tourism, entertainment, retail, and
12 related destination projects within eligible areas of the
13 State, thereby creating new jobs, stimulating significant
14 capital investment, and promoting the general welfare of the
15 citizens of this State, by authorizing municipalities and
16 counties to issue sales tax and revenue (STAR) bonds for the

 

 

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1 financing of STAR bond projects as defined in Section 10, and
2 to otherwise exercise the powers and authorities granted to
3 municipalities. It is further found and declared to be the
4 policy of the State, in the interest of promoting the health,
5 safety, morals, and general welfare of all the people of the
6 State, to provide incentives to create new job opportunities
7 and to promote major tourism, entertainment, retail, and
8 related destination projects within the State. It is further
9 found and declared:
10         (a) that as a result of the costs of land assemblage,
11     financing, infrastructure, and other project costs, the
12     private sector, without the assistance contemplated in
13     this Act, is unable to develop major tourism,
14     entertainment, retail, and related destination projects in
15     the State;
16         (b) that the type of projects for which this Act is
17     intended must be of a certain size, scope, and acreage and
18     have direct access to major highways, and must be developed
19     in a cohesive and comprehensive manner;
20         (c) that the eligible tracts of land, significant
21     portions of which are vacant and located in the 100-year
22     flood plain, present unique development obstacles and are
23     more likely to remain underutilized and undeveloped, or
24     developed in a piecemeal manner resulting in inefficient
25     and poorly planned developments that do not maximize job
26     creation, job retention, tourism, and tax revenue

 

 

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1     generation within the State;
2         (d) that there are multiple eligible areas in the State
3     that could benefit from this Act;
4         (e) that municipalities of the State that already have
5     an enterprise zone in place have a sufficient tool to
6     encourage development and to preserve and enhance their
7     local tax bases and job opportunities and otherwise achieve
8     the purposes set forth in this Act;
9         (f) that investment in major tourism, entertainment,
10     retail, and related destination projects within the State
11     would stimulate economic activity in the State, including
12     the creation and maintenance of jobs, the creation of new
13     and lasting infrastructure and other improvements, and the
14     attraction and retention of interstate tourists and
15     entertainment events that generate significant economic
16     activity;
17         (g) that the continual encouragement, development,
18     growth, and expansion of major tourism, entertainment,
19     retail, and related destination projects within the State
20     requires a cooperative and continuous partnership between
21     government and the public sector;
22         (h) that the State has a responsibility to help create
23     a favorable climate for new and improved job opportunities
24     for its citizens and to increase the tax base of the State
25     and its political subdivisions by encouraging development
26     by the private sector of major tourism, entertainment,

 

 

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1     retail, and related destination projects within the State;
2         (i) that the stagnation of local tax bases and the loss
3     of job opportunities within the State has persisted despite
4     efforts of State and local authorities and private
5     organizations to create major tourism, entertainment,
6     retail, and related destination projects within the State;
7         (j) that the stagnation of local tax bases and the
8     persistent loss of job opportunities in the State may
9     continue and worsen if the State and its political
10     subdivisions are not able to provide additional incentives
11     to developers of major tourism, entertainment, retail, and
12     related destination projects;
13         (k) that the provision of additional incentives by the
14     State and its political subdivisions will relieve
15     conditions of unemployment, maintain existing levels of
16     employment, create new job opportunities, retain jobs
17     within the State, increase tourism and commerce within the
18     State, and increase the tax base of the State and its
19     political subdivisions;
20         (l) that the powers conferred by this Act promote and
21     protect the health, safety, morals, and welfare of the
22     State, and are for a public purpose and public use for
23     which public money and resources may be expended; and
24         (m) that the necessity in the public interest for the
25     provisions of this Act is hereby declared as a matter of
26     legislative determination.
 

 

 

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1     Section 10. Definitions. As used in this Act, the following
2 words and phrases shall have the following meanings unless a
3 different meaning clearly appears from the context:
4     "Base year" means the calendar year immediately prior to
5 the calendar year in which the STAR bond district is
6 established.
7     "Commence work" means the manifest commencement of actual
8 operations on the development site, such as, erecting a
9 building, general on-site and off-site grading and utility
10 installations, commencing design and construction
11 documentation, ordering lead-time materials, excavating the
12 ground to lay a foundation or a basement, or work of like
13 description which a reasonable person would recognize as being
14 done with the intention and purpose to continue work until the
15 project is completed.
16     "County" means the county in which a proposed STAR bond
17 district is located.
18     "De minimus" means an amount less than 15% of the land area
19 within a STAR bond district.
20     "Department of Revenue" means the Department of Revenue of
21 the State of Illinois.
22     "Destination user" means an owner, operator, licensee,
23 co-developer, subdeveloper, or tenant (i) that operates a
24 business within a STAR bond district that is a retail store
25 having at least 150,000 square feet of sales floor area; (ii)

 

 

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1 that at the time of opening does not have another Illinois
2 location within a 70 mile radius; (iii) that has an annual
3 average of not less than 30% of customers who travel from at
4 least 75 miles away or from out-of-state, as demonstrated by
5 data from a comparable existing store or stores, or, if there
6 is no comparable existing store, as demonstrated by an economic
7 analysis that shows that the proposed retailer will have an
8 annual average of not less than 30% of customers who travel
9 from at least 75 miles away or from out-of-state; and (iv) that
10 makes an initial capital investment, including project costs
11 and other direct costs, of not less than $30,000,000 for such
12 retail store.
13     "Developer" means any individual, corporation, trust,
14 estate, partnership, limited liability partnership, limited
15 liability company, or other entity. The term does not include a
16 not-for-profit entity, political subdivision, or other agency
17 or instrumentality of the State.
18     "Director" means the Director of Revenue, who shall consult
19 with the Director of Commerce and Economic Opportunity in any
20 approvals or decisions required by the Director under this Act.
21     "Economic impact study" means a study conducted by an
22 independent economist to project the financial benefit of the
23 proposed STAR bond project to the local, regional, and State
24 economies, consider the proposed adverse impacts on similar
25 projects and businesses, as well as municipalities within the
26 projected market area, and draw conclusions about the net

 

 

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1 effect of the proposed STAR bond project on the local,
2 regional, and State economies. A copy of the economic impact
3 study shall be provided to the Director for review.
4     "Eligible area" means any improved or vacant area that is
5 contiguous and is not, in the aggregate, less than 600 acres
6 which must include only parcels of real property directly and
7 substantially benefited by the proposed STAR bond district
8 plan, which is located adjacent to the intersection of at least
9 2 highways, one of which is an interstate highway, which area
10 must be comprised of land which is at least 90% vacant, and at
11 least 30% of which is located in the 100-year flood plain. The
12 area may be bisected by streets, highways, roads, alleys,
13 railways, bike paths, streams, rivers, and other waterways and
14 still be deemed contiguous. In addition, in order to constitute
15 an eligible area one of the following requirements must be
16 satisfied and all of which are subject to the review and
17 approval of the Director as provided in subsection (d) of
18 Section 15:
19         (a) the governing body of the political subdivision
20     shall have determined that the area meets the requirements
21     of a "blighted area" as defined under the Tax Increment
22     Allocation Redevelopment Act; or
23         (b) the governing body of the political subdivision
24     shall have determined that the area is a blighted area as
25     determined under the provisions of Section 11-74.3-5 of the
26     Illinois Municipal Code; or

 

 

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1         (c) the governing body of the political subdivision
2     shall make the following findings:
3             (i) that the vacant portions of the area have
4         remained vacant for at least one year, or that any
5         building located on a vacant portion of the property
6         was demolished within the last year and that the
7         building would have qualified under item (ii) of this
8         subsection;
9             (ii) if portions of the area are currently
10         developed, that the use, condition, and character of
11         the buildings on the property are not consistent with
12         the purposes set forth in Section 5;
13             (iii) that the STAR bond district is expected to
14         create or retain job opportunities within the
15         political subdivision;
16             (iv) that the STAR bond district will serve to
17         further the development of adjacent areas;
18             (v) that without the availability of STAR bonds,
19         the projects described in the STAR bond district plan
20         would not be possible;
21             (vi) that the master developer meets high
22         standards of creditworthiness and financial strength
23         as demonstrated by one or more of the following: (i)
24         corporate debenture ratings of BBB or higher by
25         Standard & Poor's Corporation or Baa or higher by
26         Moody's Investors Service, Inc.; (ii) a letter from a

 

 

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1         financial institution with assets of $10,000,000 or
2         more attesting to the financial strength of the master
3         developer; or (iii) specific evidence of equity
4         financing for not less than 10% of the estimated total
5         STAR bond project costs;
6             (vii) that the STAR bond district will strengthen
7         the commercial sector of the political subdivision;
8             (viii) that the STAR bond district will enhance the
9         tax base of the political subdivision; and
10             (ix) that the formation of a STAR bond district is
11         in the best interest of the political subdivision.
12     "Entertainment user" means an owner, operator, licensee,
13 co-developer, subdeveloper, or tenant that operates a business
14 within a STAR bond district that has a primary use of providing
15 a venue for entertainment attractions, rides, or other
16 activities oriented toward the entertainment and amusement of
17 its patrons, occupies at least 50 acres of land in the STAR
18 bond district, and makes an initial capital investment,
19 including project costs and other direct and indirect costs, of
20 not less than $100,000,000 for that venue.
21     "Feasibility study" means a feasibility study as defined in
22 subsection (b) of Section 20.
23     "Infrastructure" means the public improvements and private
24 improvements that serve the public purposes set forth in
25 Section 5 of this Act and that benefit the STAR bond district
26 or any STAR bond projects, including, but not limited to,

 

 

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1 streets, drives and driveways, traffic and directional signs
2 and signals, parking lots and parking facilities,
3 interchanges, highways, sidewalks, bridges, underpasses and
4 overpasses, bike and walking trails, sanitary storm sewers and
5 lift stations, drainage conduits, channels, levees, canals,
6 storm water detention and retention facilities, utilities and
7 utility connections, water mains and extensions, and street and
8 parking lot lighting and connections.
9     "Local sales taxes" means any locally-imposed taxes
10 received by a municipality, county, or other local governmental
11 entity arising from sales by retailers and servicemen within a
12 STAR bond district, including business district sales taxes and
13 STAR bond occupation taxes, and that portion of the net revenue
14 realized under the Retailers' Occupation Tax Act, the Use Tax
15 Act, the Service Use Tax Act, and the Service Occupation Tax
16 Act from transactions at places of business located within a
17 STAR bond district that is deposited into the Local Government
18 Tax Fund and the County and Mass Transit District Fund. For the
19 purpose of this Act, "local sales taxes" does not include (i)
20 any taxes authorized pursuant to the Local Mass Transit
21 District Act, the Metro-East Park and Recreation District Act,
22 or the Flood Prevention District Act for so long as the
23 applicable taxing district does not impose a tax on real
24 property or (ii) any local sales taxes that are, at the time of
25 formation of a STAR bond district, already subject to tax
26 increment financing under the Tax Increment Allocation

 

 

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1 Redevelopment Act.
2     "Local sales tax increment" means, with respect to local
3 sales taxes administered by the Illinois Department of Revenue,
4 (i) that portion of the local sales tax paid by destination
5 users and entertainment users that is in excess of the local
6 sales tax paid by destination users and entertainment users for
7 the same month in the base year, as determined by the Illinois
8 Department of Revenue and (ii) that portion of the local sales
9 tax paid by taxpayers that are not destination users or
10 entertainment users that is in excess of the local sales tax
11 paid by taxpayers that are not destination users or
12 entertainment users for the same month in the base year, as
13 determined by the Illinois Department of Revenue. "Local sales
14 tax increment" means, with respect to local sales taxes
15 administered by a municipality, county, or other unit of local
16 government, that portion of the local sales tax that is in
17 excess of the local sales tax for the same month in the base
18 year, as determined by the respective municipality, county, or
19 other unit of local government. The Illinois Department of
20 Revenue shall allocate the local sales tax increment only if
21 the local sales tax is administered by the Department.
22     "Market study" means a study to determine the ability of
23 the proposed STAR bond project to gain market share locally and
24 regionally and to remain profitable past the term of repayment
25 of STAR bonds.
26     "Master developer" means a developer cooperating with a

 

 

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1 political subdivision to plan, develop, and implement a STAR
2 bond project plan for a STAR bond district. Subject to the
3 limitations of Section 25, the master developer may work with
4 and transfer certain development rights to other developers for
5 the purpose of implementing STAR bond project plans and
6 achieving the purposes of this Act. A master developer for a
7 STAR bond district shall be appointed by a political
8 subdivision in the resolution establishing the STAR bond
9 district, and the master developer must, at the time of
10 appointment, own or have control of, through purchase
11 agreements, option contracts, or other means, not less than 50%
12 of the acreage within the STAR bond district and the master
13 developer or its affiliate must have ownership or control on
14 May 26, 2009.
15     "Master development agreement" means an agreement between
16 the master developer and the political subdivision to govern a
17 STAR bond district and any STAR bond projects.
18     "Municipality" means the city, village, or incorporated
19 town in which a proposed STAR bond district is located.
20     "Pledged STAR revenues" means those sales tax and revenues
21 and other sources of funds pledged to pay debt service on STAR
22 bonds or to pay project costs pursuant to Section 30.
23 Notwithstanding any provision to the contrary, the following
24 revenues shall not constitute pledged STAR revenues or be
25 available to pay principal and interest on STAR bonds: any
26 State sales tax increment or local sales tax increment from a

 

 

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1 retail entity initiating operations in a STAR bond district
2 while terminating operations at another Illinois location
3 within 25 miles of the STAR bond district. For purposes of this
4 paragraph, "terminating operations" means a closing of a retail
5 operation that is directly related to the opening of the same
6 operation or like retail entity owned or operated by more than
7 50% of the original ownership in a STAR bond district within
8 one year before or after initiating operations in the STAR bond
9 district, but it does not mean closing an operation for reasons
10 beyond the control of the retail entity, as documented by the
11 retail entity, subject to a reasonable finding by the
12 municipality that the current location contained inadequate
13 space, had become economically obsolete, or was no longer a
14 viable location for the retailer or serviceman.
15     "Political subdivision" means a municipality or county
16 which undertakes to establish a STAR bond district pursuant to
17 the provisions of this Act.
18     "Project costs" means and includes the sum total of all
19 costs incurred or estimated to be incurred on or following the
20 date of establishment of a STAR bond district that are
21 reasonable or necessary to implement a STAR bond district plan
22 or any STAR bond project plans, or both, including costs
23 incurred for public improvements and private improvements that
24 serve the public purposes set forth in Section 5 of this Act.
25 Such costs include without limitation the following:
26         (a) costs of studies, surveys, development of plans and

 

 

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1     specifications, formation, implementation, and
2     administration of a STAR bond district, STAR bond district
3     plan, any STAR bond projects, or any STAR bond project
4     plans, including, but not limited to, staff and
5     professional service costs for architectural, engineering,
6     legal, financial, planning, or other services, provided
7     however that no charges for professional services may be
8     based on a percentage of the tax increment collected and no
9     contracts for professional services, excluding
10     architectural and engineering services, may be entered
11     into if the terms of the contract extend beyond a period of
12     3 years;
13         (b) property assembly costs, including, but not
14     limited to, acquisition of land and other real property or
15     rights or interests therein, located within the boundaries
16     of a STAR bond district, demolition of buildings, site
17     preparation, site improvements that serve as an engineered
18     barrier addressing ground level or below ground
19     environmental contamination, including, but not limited
20     to, parking lots and other concrete or asphalt barriers,
21     the clearing and grading of land, and importing additional
22     soil and fill materials, or removal of soil and fill
23     materials from the site;
24         (c) subject to paragraph (d), costs of buildings and
25     other vertical improvements that are located within the
26     boundaries of a STAR bond district and owned by a political

 

 

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1     subdivision or other public entity, including without
2     limitation police and fire stations, educational
3     facilities, and public restrooms and rest areas;
4         (c-5) costs of buildings; rides and attractions, which
5     include carousels, slides, roller coasters, displays,
6     models, towers, works of art, and similar theme and
7     amusement park improvements; and other vertical
8     improvements that are located within the boundaries of a
9     STAR bond district and owned by an entertainment user;
10     except that only one entertainment user in a STAR bond
11     district is eligible to include the cost of those vertical
12     improvements as project costs;
13         (d) costs of the design and construction of
14     infrastructure and public works located within the
15     boundaries of a STAR bond district that are reasonable or
16     necessary to implement a STAR bond district plan or any
17     STAR bond project plans, or both, except that project costs
18     shall not include the cost of constructing a new municipal
19     public building principally used to provide offices,
20     storage space, or conference facilities or vehicle
21     storage, maintenance, or repair for administrative, public
22     safety, or public works personnel and that is not intended
23     to replace an existing public building unless the political
24     subdivision makes a reasonable determination in a STAR bond
25     district plan or any STAR bond project plans, supported by
26     information that provides the basis for that

 

 

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1     determination, that the new municipal building is required
2     to meet an increase in the need for public safety purposes
3     anticipated to result from the implementation of the STAR
4     bond district plan or any STAR bond project plans;
5         (e) costs of the design and construction of the
6     following improvements located outside the boundaries of a
7     STAR bond district, provided that the costs are essential
8     to further the purpose and development of a STAR bond
9     district plan and either (i) part of and connected to
10     sewer, water, or utility service lines that physically
11     connect to the STAR bond district or (ii) significant
12     improvements for adjacent offsite highways, streets,
13     roadways, and interchanges that are approved by the
14     Illinois Department of Transportation. No other cost of
15     infrastructure and public works improvements located
16     outside the boundaries of a STAR bond district may be
17     deemed project costs;
18         (f) costs of job training and retraining projects,
19     including the cost of "welfare to work" programs
20     implemented by businesses located within a STAR bond
21     district;
22         (g) financing costs, including, but not limited to, all
23     necessary and incidental expenses related to the issuance
24     of obligations and which may include payment of interest on
25     any obligations issued hereunder including interest
26     accruing during the estimated period of construction of any

 

 

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1     improvements in a STAR bond district or any STAR bond
2     projects for which such obligations are issued and for not
3     exceeding 36 months thereafter and including reasonable
4     reserves related thereto;
5         (h) to the extent the political subdivision by written
6     agreement accepts and approves the same, all or a portion
7     of a taxing district's capital costs resulting from a STAR
8     bond district or STAR bond projects necessarily incurred or
9     to be incurred within a taxing district in furtherance of
10     the objectives of a STAR bond district plan or STAR bond
11     project plans;
12         (i) interest cost incurred by a developer for project
13     costs related to the acquisition, formation,
14     implementation, development, construction, and
15     administration of a STAR bond district, STAR bond district
16     plan, STAR bond projects, or any STAR bond project plans
17     provided that:
18             (i) payment of such costs in any one year may not
19         exceed 30% of the annual interest costs incurred by the
20         developer with regard to the STAR bond district or any
21         STAR bond projects during that year; and
22             (ii) the total of such interest payments paid
23         pursuant to this Act may not exceed 30% of the total
24         cost paid or incurred by the developer for a STAR bond
25         district or STAR bond projects, plus project costs,
26         excluding any property assembly costs incurred by a

 

 

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1         political subdivision pursuant to this Act;
2         (j) costs of common areas located within the boundaries
3     of a STAR bond district;
4         (k) costs of landscaping and plantings, retaining
5     walls and fences, man-made lakes and ponds, shelters,
6     benches, lighting, and similar amenities located within
7     the boundaries of a STAR bond district;
8         (l) costs of mounted building signs, site monument, and
9     pylon signs located within the boundaries of a STAR bond
10     district; or
11         (m) if included in the STAR bond district plan and
12     approved in writing by the Director, salaries or a portion
13     of salaries for local government employees to the extent
14     the same are directly attributable to the work of such
15     employees on the establishment and management of a STAR
16     bond district or any STAR bond projects.
17     Except as specified in items (a) through (m), "project
18 costs" shall not include:
19         (i) the cost of construction of buildings that are
20     privately owned or owned by a municipality and leased to a
21     developer or retail user for non-entertainment retail
22     uses;
23         (ii) moving expenses for employees of the businesses
24     locating within the STAR bond district;
25         (iii) property taxes for property located in the STAR
26     bond district;

 

 

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1         (iv) lobbying costs; and
2         (v) general overhead or administrative costs of the
3     political subdivision that would still have been incurred
4     by the political subdivision if the political subdivision
5     had not established a STAR bond district.
6     "Project development agreement" means any one or more
7 agreements, including any amendments thereto, between a master
8 developer and any co-developer or subdeveloper in connection
9 with a STAR bond project, which project development agreement
10 may include the political subdivision as a party.
11     "Projected market area" means any area within the State in
12 which a STAR bond district or STAR bond project is projected to
13 have a significant fiscal or market impact as determined by the
14 Director.
15     "Resolution" means a resolution, order, ordinance, or
16 other appropriate form of legislative action of a political
17 subdivision or other applicable public entity approved by a
18 vote of a majority of a quorum at a meeting of the governing
19 body of the political subdivision or applicable public entity.
20     "STAR bond" means a sales tax and revenue bond, note, or
21 other obligation payable from pledged STAR revenues and issued
22 by a political subdivision, the proceeds of which shall be used
23 only to pay project costs as defined in this Act.
24     "STAR bond district" means the specific area declared to be
25 an eligible area as determined by the political subdivision,
26 and approved by the Director, in which the political

 

 

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1 subdivision may develop one or more STAR bond projects.
2     "STAR bond district plan" means the preliminary or
3 conceptual plan that generally identifies the proposed STAR
4 bond project areas and identifies in a general manner the
5 buildings, facilities, and improvements to be constructed or
6 improved in each STAR bond project area.
7     "STAR bond project" means a project within a STAR bond
8 district which is approved pursuant to Section 20.
9     "STAR bond project area" means the geographic area within a
10 STAR bond district in which there may be one or more STAR bond
11 projects.
12     "STAR bond project plan" means the written plan adopted by
13 a political subdivision for the development of a STAR bond
14 project in a STAR bond district; the plan may include, but is
15 not limited to, (i) project costs incurred prior to the date of
16 the STAR bond project plan and estimated future STAR bond
17 project costs, (ii) proposed sources of funds to pay those
18 costs, (iii) the nature and estimated term of any obligations
19 to be issued by the political subdivision to pay those costs,
20 (iv) the most recent equalized assessed valuation of the STAR
21 bond project area, (v) an estimate of the equalized assessed
22 valuation of the STAR bond district or applicable project area
23 after completion of a STAR bond project, (vi) a general
24 description of the types of any known or proposed developers,
25 users, or tenants of the STAR bond project or projects included
26 in the plan, (vii) a general description of the type,

 

 

09600SB2093ham002 - 21 - LRB096 11467 RLJ 32088 a

1 structure, and character of the property or facilities to be
2 developed or improved, (viii) a description of the general land
3 uses to apply to the STAR bond project, and (ix) a general
4 description or an estimate of the type, class, and number of
5 employees to be employed in the operation of the STAR bond
6 project.
7     "State sales tax" means all of the net revenue realized
8 under the Retailers' Occupation Tax Act, the Use Tax Act, the
9 Service Use Tax Act, and the Service Occupation Tax Act from
10 transactions at places of business located within a STAR bond
11 district, excluding that portion of the net revenue realized
12 under the Retailers' Occupation Tax Act, the Use Tax Act, the
13 Service Use Tax Act, and the Service Occupation Tax Act from
14 transactions at places of business located within a STAR bond
15 district that is deposited into the Local Government Tax Fund
16 and the County and Mass Transit District Fund. For the purposes
17 of this Act, "State sales tax" does not include any State sales
18 taxes that are, at the time of formation of a STAR bond
19 district, already subject to tax increment financing under the
20 Tax Increment Allocation Redevelopment Act.
21     "State sales tax increment" means that portion of the State
22 sales tax that is in excess of the State sales tax for the same
23 month in the base year, as determined by the Department of
24 Revenue, from transactions at destination users and
25 entertainment users located within a STAR bond district, which
26 destination users and entertainment users shall be designated

 

 

09600SB2093ham002 - 22 - LRB096 11467 RLJ 32088 a

1 by the master developer and approved by the political
2 subdivision and the Director in conjunction with the applicable
3 STAR bond project approval.
4     "Substantial change" means a change wherein the proposed
5 STAR bond project plan differs substantially in size, scope, or
6 use from the approved STAR bond district plan or STAR bond
7 project plan.
8     "Taxpayer" means an individual, partnership, corporation,
9 limited liability company, trust, estate, or other entity that
10 is subject to the Illinois Income Tax Act.
11     "Total development costs" means the aggregate public and
12 private investment in a STAR bond district, including project
13 costs and other direct and indirect costs related to the
14 development of the STAR bond district.
15     "Vacant" means that portion of the land in a proposed STAR
16 bond district that is not occupied by a building, facility, or
17 other vertical improvement.
 
18     Section 15. Establishment of STAR bond district. The
19 governing body of a municipality may establish a STAR bond
20 district within an eligible area within the municipality or
21 partially outside the boundaries of the municipality in an
22 unincorporated area of the county. A STAR bond district which
23 is partially outside the boundaries of the municipality must
24 also be approved by the governing body of the county by the
25 passage of a resolution. The governing body of a county may

 

 

09600SB2093ham002 - 23 - LRB096 11467 RLJ 32088 a

1 establish a STAR bond district in an eligible area in any
2 unincorporated area of the county.
3     (a) When a political subdivision proposes to establish a
4 STAR bond district, the political subdivision shall adopt a
5 resolution stating that the political subdivision is
6 considering the establishment of a STAR bond district. The
7 resolution shall:
8         (1) give notice, in the same manner as set forth in
9     item (2) of subsection (g) of Section 20, that a public
10     hearing will be held to consider the establishment of a
11     STAR bond district and fix the date, hour, and place of the
12     public hearing, which shall be at a location that is within
13     20 miles of the STAR bond district, in a facility that can
14     accommodate a large crowd, and in a facility that is
15     accessible to persons with disabilities;
16         (2) describe the proposed general boundaries of the
17     STAR bond district;
18         (3) describe the STAR bond district plan;
19         (4) require that a description and map of the proposed
20     STAR bond district are available for inspection at a time
21     and place designated;
22         (5) identify the master developer for the STAR bond
23     district; and
24         (6) require that the governing body consider findings
25     necessary for the establishment of a STAR bond district.
26     (b) Upon the conclusion of the public hearing the governing

 

 

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1 body of the political subdivision may consider a resolution to
2 establish the STAR bond district.
3         (1) A resolution to establish a STAR bond district
4     shall:
5             (A) make findings that the proposed STAR bond
6         district is to be developed with one or more STAR bond
7         projects;
8             (B) make findings that the STAR bond district is an
9         eligible area;
10             (C) contain a STAR bond district plan that
11         identifies in a general manner the buildings and
12         facilities that are proposed to be constructed or
13         improved in subsequent STAR bond projects and that
14         includes plans for destination users and an
15         entertainment user;
16             (D) contain the legal description of the STAR bond
17         district;
18             (E) appoint the master developer for the STAR bond
19         district; and
20             (F) establish the STAR bond district, contingent
21         upon approval of the Director as set forth in
22         subsection (d).
23         (2) If the resolution is not adopted by the political
24     subdivision within 60 days from the conclusion of the
25     public hearing, then the STAR bond district shall not be
26     established.

 

 

09600SB2093ham002 - 25 - LRB096 11467 RLJ 32088 a

1         (3) Upon adoption of a resolution establishing a STAR
2     bond district, the political subdivision shall send a
3     certified copy of such resolution to the Department of
4     Revenue.
5     (c) Upon the establishment of a STAR bond district, the
6 STAR bond district and any STAR bond projects shall be governed
7 by a master development agreement between the political
8 subdivision and the master developer. A STAR bond district that
9 is partially outside the boundaries of a municipality shall
10 only require one master development agreement; the agreement
11 shall be between the municipality and the master developer. In
12 no event shall there be more than one master development
13 agreement governing the terms and conditions of a STAR bond
14 district. The master development agreement shall require the
15 master developer to ensure compliance with the following
16 requirements to reduce the ecological impact of the STAR bond
17 district development: (i) inclusion of pollution prevention,
18 erosion, and sedimentation control plans during construction;
19 (ii) protection of endangered species' habitat and wetlands
20 mitigation; (iii) preservation of at least 20% of the STAR bond
21 district as green space, including lawns, parks, landscaped
22 areas, paths, lakes, ponds, and other water features; (iv)
23 promotion of the use of renewable energy to the extent
24 commercially feasible; (v) promotion of access to mass transit
25 and bicycle transportation; (vi) implementation of recycling
26 programs during construction and at completed STAR bond

 

 

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1 projects; (vii) preservation of water quality and promotion of
2 water conservation through the use of techniques such as
3 reusing storm water and landscaping with native and
4 low-maintenance vegetation to reduce the need for irrigation
5 and fertilization; (viii) inclusion of comprehensive lighting
6 programs that reduce light pollution within the STAR bond
7 district; and (ix) promotion of shared parking between
8 different users to reduce the impact on project sites.
9     (d) Upon adoption of the resolution to establish a STAR
10 bond district, the political subdivision shall submit the
11 proposed STAR bond district to the Director for consideration.
12 The Director may only approve a STAR bond district if the
13 Director finds that: (i) the proposed STAR bond district is an
14 eligible area, (ii) no portion of the proposed STAR bond
15 district is located within a municipality that has an
16 enterprise zone pursuant to the Illinois Enterprise Zone Act
17 within its municipal boundaries, (iii) the STAR bond district
18 plan includes a projected capital investment of at least
19 $300,000,000, (iv) the STAR bond district plan is reasonably
20 projected to produce at least $300,000,000 of annual gross
21 sales revenues and 1,000 new jobs, (v) the STAR bond district
22 plan includes potential destination users and a potential
23 entertainment user, (vi) the creation of the STAR bond district
24 and STAR bond district plan are in accordance with the purpose
25 of this Act and the public interest, and (vii) the STAR bond
26 district and STAR bond district plan meet any other requirement

 

 

09600SB2093ham002 - 27 - LRB096 11467 RLJ 32088 a

1 that the Director deems appropriate. If a proposed STAR bond
2 district meets all of the foregoing criteria, the Director
3 shall not unreasonably withhold its approval of the proposed
4 STAR bond district. The Director may only approve one STAR bond
5 district within any projected market area. However, the
6 Director may approve additional STAR bond districts in a single
7 projected market area provided that the Director finds that the
8 additional STAR bond district will not thwart the purposes of
9 this Act. The Director shall promptly send a copy of its
10 written findings and approval or denial of a STAR bond district
11 to the requesting political subdivision.
12     (e) Starting on the fifth anniversary of the first date of
13 distribution of State sales tax revenues from the first STAR
14 bond project in the STAR bond district and continuing each
15 anniversary thereafter, the Director shall, in consultation
16 with the political subdivision and the master developer,
17 determine the total number of new jobs created within the STAR
18 bond district, the total development cost to date, and the
19 master developer's compliance with its obligations under any
20 written agreements with the State. If, on the fifth anniversary
21 of the first date of distribution of State sales tax revenues
22 from the first STAR bond project in the STAR bond district, the
23 Director determines that the total development cost to date is
24 not equal to or greater than $300,000,000, or that the master
25 developer is in breach of any written agreement with the State,
26 then no new STAR bonds may be issued in the STAR bond district

 

 

09600SB2093ham002 - 28 - LRB096 11467 RLJ 32088 a

1 until the total development cost exceeds $300,000,000 or the
2 breach of agreement is cured, or both. If, on the fifth
3 anniversary of the first date of distribution of State sales
4 tax revenues from the first STAR bond project in the STAR bond
5 district, there are not at least 1,000 jobs existing in the
6 STAR bond district, the State may require the master developer
7 to pay the State a penalty of $1,500 per job under 1,000 each
8 year until the earlier of (i) the twenty-third anniversary of
9 the first date of distribution of State sales tax revenues from
10 the first STAR bond project in the STAR bond district, (ii) the
11 date that all STAR bonds issued in the STAR bond district have
12 been paid off, or (iii) the date that at least 1,000 jobs have
13 been created in the STAR bond district. Upon creation of 1,000
14 jobs in the STAR bond district, there shall not be an ongoing
15 obligation to maintain those jobs after the fifth anniversary
16 of the first date of distribution of State sales tax revenues
17 from the first STAR bond project in the STAR bond district, and
18 the master developer shall be relieved of any liability with
19 respect to job creation under this subsection. Notwithstanding
20 anything to the contrary in this subsection, the master
21 developer shall not be liable for the penalties set forth under
22 this subsection if the breach of agreement, failure to reach at
23 least $300,000,000 in total development costs, or failure to
24 create 1,000 jobs is due to delays caused by force majeure, as
25 that term shall be defined in the master development agreement.
 

 

 

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1     Section 20. Approval of STAR bond projects. The governing
2 body of a political subdivision may establish one or more STAR
3 bond projects in any STAR bond district. A STAR bond project
4 which is partially outside the boundaries of a municipality
5 must also be approved by the governing body of the county by
6 resolution.
7     (a) After the establishment of a STAR bond district, the
8 master developer may propose one or more STAR bond projects to
9 a political subdivision and the master developer shall, in
10 cooperation with the political subdivision, prepare a STAR bond
11 project plan in consultation with the planning commission of
12 the political subdivision, if any. The STAR bond project plan
13 may be implemented in separate development stages.
14     (b) Any political subdivision considering a STAR bond
15 project within a STAR bond district shall notify the
16 Department, which shall cause to be prepared an independent
17 feasibility study by a feasibility consultant with certified
18 copies provided to the political subdivision, the Director, and
19 the Department of Commerce and Economic Opportunity. The
20 feasibility study shall include the following:
21         (1) the estimated amount of pledged STAR revenues
22     expected to be collected in each year through the maturity
23     date of the proposed STAR bonds;
24         (2) a statement of how the jobs and taxes obtained from
25     the STAR bond project will contribute significantly to the
26     economic development of the State and region;

 

 

09600SB2093ham002 - 30 - LRB096 11467 RLJ 32088 a

1         (3) visitation expectations;
2         (4) the unique quality of the project;
3         (5) an economic impact study;
4         (6) a market study;
5         (7) integration and collaboration with other resources
6     or businesses;
7         (8) the quality of service and experience provided, as
8     measured against national consumer standards for the
9     specific target market;
10         (9) project accountability, measured according to best
11     industry practices;
12         (10) the expected return on State and local investment
13     that the STAR bond project is anticipated to produce; and
14         (11) an anticipated principal and interest payment
15     schedule on the STAR bonds.
16     The feasibility consultant, along with the independent
17 economist and any other consultants commissioned to perform the
18 studies and other analysis required by the feasibility study,
19 shall be selected by the Director with the approval of the
20 political subdivision. The consultants shall be retained by the
21 Director and the Department shall be reimbursed by the master
22 developer for the costs to retain the consultants.
23     The failure to include all information enumerated in this
24 subsection in the feasibility study for a STAR bond project
25 shall not affect the validity of STAR bonds issued pursuant to
26 this Act.

 

 

09600SB2093ham002 - 31 - LRB096 11467 RLJ 32088 a

1     (c) If the political subdivision determines the STAR bond
2 project is feasible, the STAR bond project plan shall include:
3         (1) a summary of the feasibility study;
4         (2) a reference to the STAR bond district plan that
5     identifies the STAR bond project area that is set forth in
6     the STAR bond project plan that is being considered;
7         (3) a legal description and map of the STAR bond
8     project area to be developed or redeveloped;
9         (4) a description of the buildings and facilities
10     proposed to be constructed or improved in such STAR bond
11     project area, including destination users and an
12     entertainment user, as applicable;
13         (5) a copy of letters of intent to locate within the
14     STAR bond district signed by both the master developer and
15     the appropriate corporate officer of a destination user and
16     an entertainment user for the first STAR bond project
17     proposed within the district; and
18         (6) any other information the governing body of the
19     political subdivision deems reasonable and necessary to
20     advise the public of the intent of the STAR bond project
21     plan.
22     (d) Before a political subdivision may hold a public
23 hearing to consider a STAR bond project plan, the Department of
24 Commerce and Economic Opportunity shall hold a regional public
25 meeting to discuss, evaluate, and review the merits of the STAR
26 bond project plan. The public meeting shall be held at a

 

 

09600SB2093ham002 - 32 - LRB096 11467 RLJ 32088 a

1 location that is within 20 miles of the STAR bond district, in
2 a facility that can accommodate a large crowd, and in a
3 facility that is accessible to persons with disabilities. The
4 public meeting shall be held within 20 days after the receipt
5 of the feasibility study by the Director. Notice of the public
6 meeting shall be delivered to the Director and the political
7 subdivision and shall be published once in a newspaper of
8 general circulation in the political subdivision not less than
9 one week and not more than 3 weeks preceding the date of the
10 public meeting. At the public meeting, all interested persons
11 shall be given an opportunity to be heard. At the conclusion of
12 the public meeting, the Department of Commerce and Economic
13 Opportunity shall provide a report to the Director concerning
14 the testimony of the public meeting.
15     (e) Before a political subdivision may hold a public
16 hearing to consider a STAR bond project plan, the political
17 subdivision must apply to the Department for approval of the
18 STAR bond project plan. An application for approval of a STAR
19 bond project plan must not be approved unless all of the
20 components of the feasibility study set forth in items (1)
21 through (11) of subsection (b) have been completed and
22 submitted to the Department for review. In addition to
23 reviewing all of the other elements of the STAR bond project
24 plan required under subsection (c), which must be included in
25 the application (which plan must include a letter or letters of
26 intent as required under subdivision (c)(5) in order to receive

 

 

09600SB2093ham002 - 33 - LRB096 11467 RLJ 32088 a

1 Director approval), the Director must review the feasibility
2 study and consider all of the components of the feasibility
3 study set forth in items (1) through (11) of subsection (b) of
4 Section 20, including without limitation the economic impact
5 study and the financial benefit of the proposed STAR bond
6 project to the local, regional, and State economies, the
7 proposed adverse impacts on similar businesses and projects as
8 well as municipalities within the market area, and the net
9 effect of the proposed STAR bond project on the local,
10 regional, and State economies. In addition to the economic
11 impact study, the political subdivision must also submit to the
12 Department, as part of its application, the financial and other
13 information that substantiates the basis for the conclusion of
14 the economic impact study, in the form and manner as required
15 by the Department, so that the Department can verify the
16 results of the study. In addition to any other criteria in this
17 subsection, to approve the STAR bond project plan, the Director
18 must be satisfied that the proposed destination user is in fact
19 a true destination user and also find that the STAR bond
20 project plan is in accordance with the purpose of this Act and
21 the public interest. The Director shall either approve or deny
22 the STAR bond project plan based on the criteria in this
23 subsection.
24     (f) Upon a finding by the planning and zoning commission of
25 the political subdivision that the STAR bond project plan is
26 consistent with the intent of the comprehensive plan for the

 

 

09600SB2093ham002 - 34 - LRB096 11467 RLJ 32088 a

1 development of the political subdivision and upon issuance of
2 the written approval of the STAR bond project plan from the
3 Director pursuant to subsection (e) of Section 20 the governing
4 body of the political subdivision shall adopt a resolution
5 stating that the political subdivision is considering the
6 adoption of the STAR bond project plan. The resolution shall:
7         (1) give notice that a public hearing will be held to
8     consider the adoption of the STAR bond project plan and fix
9     the date, hour, and place of the public hearing;
10         (2) describe the general boundaries of the STAR bond
11     district within which the STAR bond project will be located
12     and the date of establishment of the STAR bond district;
13         (3) describe the general boundaries of the area
14     proposed to be included within the STAR bond project area;
15         (4) provide that the STAR bond project plan and map of
16     the area to be redeveloped or developed are available for
17     inspection during regular office hours in the offices of
18     the political subdivision; and
19         (5) contain a summary of the terms and conditions of
20     any proposed project development agreement with the
21     political subdivision.
22     (g) A public hearing shall be conducted to consider the
23 adoption of any STAR bond project plan.
24         (1) The date fixed for the public hearing to consider
25     the adoption of the STAR bond project plan shall be not
26     less than 20 nor more than 90 days following the date of

 

 

09600SB2093ham002 - 35 - LRB096 11467 RLJ 32088 a

1     the adoption of the resolution fixing the date of the
2     hearing.
3         (2) A copy of the political subdivision's resolution
4     providing for the public hearing shall be sent by certified
5     mail, return receipt requested, to the governing body of
6     the county. A copy of the political subdivision's
7     resolution providing for the public hearing shall be sent
8     by certified mail, return receipt requested, to each person
9     or persons in whose name the general taxes for the last
10     preceding year were paid on each parcel of land lying
11     within the proposed STAR bond project area within 10 days
12     following the date of the adoption of the resolution. The
13     resolution shall be published once in a newspaper of
14     general circulation in the political subdivision not less
15     than one week nor more than 3 weeks preceding the date
16     fixed for the public hearing. A map or aerial photo clearly
17     delineating the area of land proposed to be included within
18     the STAR bond project area shall be published with the
19     resolution.
20         (3) The hearing shall be held at a location that is
21     within 20 miles of the STAR bond district, in a facility
22     that can accommodate a large crowd, and in a facility that
23     is accessible to persons with disabilities.
24         (4) At the public hearing, a representative of the
25     political subdivision or master developer shall present
26     the STAR bond project plan. Following the presentation of

 

 

09600SB2093ham002 - 36 - LRB096 11467 RLJ 32088 a

1     the STAR bond project plan, all interested persons shall be
2     given an opportunity to be heard. The governing body may
3     continue the date and time of the public hearing.
4     (h) Upon conclusion of the public hearing, the governing
5 body of the political subdivision may adopt the STAR bond
6 project plan by a resolution approving the STAR bond project
7 plan.
8     (i) After the adoption by the corporate authorities of the
9 political subdivision of a STAR bond project plan, the
10 political subdivision may enter into a project development
11 agreement if the master developer has requested the political
12 subdivision to be a party to the project development agreement
13 pursuant to subsection (b) of Section 25.
14     (j) Within 30 days after the adoption by the political
15 subdivision of a STAR bond project plan, the clerk of the
16 political subdivision shall transmit a copy of the legal
17 description of the land and a list of all new and existing
18 mailing addresses within the STAR bond district, a copy of the
19 resolution adopting the STAR bond project plan, and a map or
20 plat indicating the boundaries of the STAR bond project area to
21 the clerk, treasurer, and governing body of the county and to
22 the Department of Revenue. Within 30 days of creation of any
23 new mailing addresses within a STAR bond district, the clerk of
24 the political subdivision shall provide written notice of such
25 new addresses to the Department of Revenue.
26     If a certified copy of the resolution adopting the STAR

 

 

09600SB2093ham002 - 37 - LRB096 11467 RLJ 32088 a

1 bond project plan is filed with the Department on or before the
2 first day of April, the Department, if all other requirements
3 of this subsection are met, shall proceed to collect and
4 allocate any local sales tax increment and any State sales tax
5 increment in accordance with the provisions of this Act as of
6 the first day of July next following the adoption and filing.
7 If a certified copy of the resolution adopting the STAR bond
8 project plan is filed with the Department after April 1 but on
9 or before the first day of October, the Department, if all
10 other requirements of this subsection are met, shall proceed to
11 collect and allocate any local sales tax increment and any
12 State sales tax increment in accordance with the provisions of
13 this Act as of the first day of January next following the
14 adoption and filing.
15     Any substantial changes to a STAR bond project plan as
16 adopted shall be subject to a public hearing following
17 publication of notice thereof in a newspaper of general
18 circulation in the political subdivision and approval by
19 resolution of the governing body of the political subdivision.
20     The Department of Revenue shall not collect or allocate any
21 local sales tax increment or State sales tax increment, until
22 the political subdivision also provides, in the manner
23 prescribed by the Department, the boundaries of the STAR bond
24 project area and each address in the STAR bond project area in
25 such a way that the Department can determine by its address
26 whether a business is located in the STAR bond project area.

 

 

09600SB2093ham002 - 38 - LRB096 11467 RLJ 32088 a

1 The political subdivision must provide this boundary and
2 address information to the Department on or before April 1 for
3 administration and enforcement under this Act by the Department
4 beginning on the following July 1 and on or before October 1
5 for administration and enforcement under this Act by the
6 Department beginning on the following January 1. The Department
7 of Revenue shall not administer or enforce any change made to
8 the boundaries of a STAR bond project or any address change,
9 addition, or deletion until the political subdivision reports
10 the boundary change or address change, addition, or deletion to
11 the Department in the manner prescribed by the Department. The
12 political subdivision must provide this boundary change or
13 address change, addition, or deletion information to the
14 Department on or before April 1 for administration and
15 enforcement by the Department of the change, addition, or
16 deletion beginning on the following July 1 and on or before
17 October 1 for administration and enforcement by the Department
18 of the change, addition, or deletion beginning on the following
19 January 1. If a retailer is incorrectly included or excluded
20 from the list of those located in the STAR bond project, the
21 Department of Revenue shall be held harmless if it reasonably
22 relied on information provided by the political subdivision.
23     (k) Any STAR bond project must be approved by the political
24 subdivision prior to that date which is 23 years from the date
25 of the approval of the STAR bond district, provided however
26 that any amendments to such STAR bond project may occur

 

 

09600SB2093ham002 - 39 - LRB096 11467 RLJ 32088 a

1 following such date.
2     (l) Any developer of a STAR bond project shall commence
3 work on the STAR bond project within 3 years from the date of
4 adoption of the STAR bond project plan. If the developer fails
5 to commence work on the STAR bond project within the 3-year
6 period, funding for the project shall cease and the developer
7 of the project or complex shall have one year to appeal to the
8 political subdivision for reapproval of the project and
9 funding. If the project is reapproved, the 3-year period for
10 commencement shall begin again on the date of the reapproval.
11     (m) After the adoption by the corporate authorities of the
12 political subdivision of a STAR bond project plan and approval
13 of the Director pursuant to subsection (e) of Section 20, the
14 political subdivision may authorize the issuance of the STAR
15 bonds in one or more series to finance the STAR bond project in
16 accordance with the provisions of this Act.
17     (n) The maximum maturity of STAR bonds issued to finance a
18 STAR bond project shall not exceed 23 years from the first date
19 of distribution of State sales tax revenues from such STAR bond
20 project to the political subdivision, unless the political
21 subdivision extends such maturity by resolution up to a maximum
22 of 35 years from such first distribution date. Any such
23 extension shall require the approval of the Director. In no
24 event shall the maximum maturity date for any STAR bonds exceed
25 that date which is 35 years from the first distribution date of
26 the first STAR bonds issued in a STAR bond district.
 

 

 

09600SB2093ham002 - 40 - LRB096 11467 RLJ 32088 a

1     Section 25. Co-developers and subdevelopers. Upon approval
2 of a STAR bond project by the political subdivision, the master
3 developer may, subject to the approval of the Director and the
4 political subdivision, develop the STAR bond project on its own
5 or it may develop the STAR bond project with another developer,
6 which may include an assignment or transfer of development
7 rights.
8     (a) A master developer may sell, lease, or otherwise convey
9 its property interest in the STAR bond project area to a
10 co-developer or subdeveloper.
11     (b) A master developer may enter into one or more
12 agreements with a co-developer or subdeveloper in connection
13 with a STAR bond project, and the master developer may request
14 that the political subdivision become a party to the project
15 development agreement, or the master developer may request that
16 the political subdivision amend its master development
17 agreement to provide for certain terms and conditions that may
18 be related to the co-developer or subdeveloper and the STAR
19 bond project. For any project development agreement which the
20 political subdivision would be a party or for any amendments to
21 the master development agreement, the terms and conditions must
22 be acceptable to both the master developer and the political
23 subdivision.
 
24     Section 30. STAR bonds; source of payment. Any political

 

 

09600SB2093ham002 - 41 - LRB096 11467 RLJ 32088 a

1 subdivision shall have the power to issue STAR bonds in one or
2 more series to finance the undertaking of any STAR bond project
3 in accordance with the provisions of this Act and the Omnibus
4 Bond Acts. STAR bonds may be issued as revenue bonds, alternate
5 bonds, or general obligation bonds as defined in and subject to
6 the procedures provided in the Local Government Debt Reform
7 Act.
8     (a) STAR bonds may be made payable, both as to principal
9 and interest, from the following revenues, which to the extent
10 pledged by each respective political subdivision or other
11 public entity for such purpose shall constitute pledged STAR
12 revenues:
13         (1) revenues of the political subdivision derived from
14     or held in connection with the undertaking and carrying out
15     of any STAR bond project or projects under this Act;
16         (2) available private funds and contributions, grants,
17     tax credits, or other financial assistance from the State
18     or federal government;
19         (3) all of the local sales tax increment of a
20     municipality, county, or other unit of local government;
21         (4) any special service area taxes collected within the
22     STAR bond district under the Special Service Area Tax Act,
23     may be used for the purposes of funding project costs or
24     paying debt service on STAR bonds in addition to the
25     purposes contained in the special service area plan;
26         (5) all of the State sales tax increment;

 

 

09600SB2093ham002 - 42 - LRB096 11467 RLJ 32088 a

1         (6) any other revenues appropriated by the political
2     subdivision; and
3         (7) any combination of these methods.
4     (b) The political subdivision may pledge the pledged STAR
5 revenues to the repayment of STAR bonds prior to,
6 simultaneously with, or subsequent to the issuance of the STAR
7 bonds.
8     (c) Bonds issued as revenue bonds shall not be general
9 obligations of the political subdivision, nor in any event
10 shall they give rise to a charge against its general credit or
11 taxing powers, or be payable out of any funds or properties
12 other than those set forth in subsection (a) and the bonds
13 shall so state on their face.
14     (d) For each STAR bond project financed with STAR bonds
15 payable from the pledged STAR revenues, the political
16 subdivision shall prepare and submit to the Department of
17 Revenue by June 1 of each year a report describing the status
18 of the STAR bond project, any expenditures of the proceeds of
19 STAR bonds that have occurred for the preceding calendar year,
20 and any expenditures of the proceeds of the bonds expected to
21 occur in the future, including the amount of pledged STAR
22 revenue, the amount of revenue that has been spent, the
23 projected amount of the revenue, and the anticipated use of the
24 revenue. Each annual report shall be accompanied by an
25 affidavit of the master developer certifying the contents of
26 the report as true to the best of the master developer's

 

 

09600SB2093ham002 - 43 - LRB096 11467 RLJ 32088 a

1 knowledge. The Department of Revenue shall have the right, but
2 not the obligation, to request the Illinois Auditor General to
3 review the annual report and the political subdivision's
4 records containing the source information for the report for
5 the purpose of verifying the report's contents. If the Illinois
6 Auditor General declines the request for review, the Department
7 of Revenue shall have the right to select an independent
8 third-party auditor to conduct an audit of the annual report
9 and the political subdivision's records containing the source
10 information for the report. The reasonable cost of the audit
11 shall be paid by the master developer. The master development
12 agreement shall grant the Department of Revenue and the
13 Illinois Auditor General the right to review the records of the
14 political subdivision containing the source information for
15 the report.
16     (e) There is created in the State treasury a special fund
17 to be known as the STAR Bonds Revenue Fund. As soon as possible
18 after the first day of each month, beginning January 1, 2011,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred, and the Treasurer shall
21 transfer, from the General Revenue Fund to the STAR Bonds
22 Revenue Fund the State sales tax increment for the second
23 preceding month, less 3% of that amount, which shall be
24 transferred into the Tax Compliance and Administration Fund and
25 shall be used by the Department, subject to appropriation, to
26 cover the costs of the Department in administering the STAR

 

 

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1 Bonds Financing Act. As soon as possible after the first day of
2 each month, beginning January 1, 2011, upon certification of
3 the Department of Revenue, the Comptroller shall order
4 transferred, and the Treasurer shall transfer, from the Local
5 Government Tax Fund to the STAR Bonds Revenue Fund the local
6 sales tax increment for the second preceding month, as provided
7 in Section 6z-18 of the State Finance Act and from the County
8 and Mass Transit District Fund to the STAR Bonds Revenue Fund
9 the local sales tax increment for the second preceding month,
10 as provided in Section 6z-20 of the State Finance Act.
11     On or before the 25th day of each calendar month, beginning
12 on January 1, 2011, the Department shall prepare and certify to
13 the Comptroller the disbursement of stated sums of money out of
14 the STAR Bonds Revenue Fund to named municipalities and
15 counties, the municipalities and counties to be those entitled
16 to distribution of taxes or penalties paid to the Department
17 during the second preceding calendar month. The amount to be
18 paid to each municipality or county shall be the amount of the
19 State sales tax increment and the local sales tax increment
20 (not including credit memoranda or the amount transferred into
21 the Tax Compliance and Administration Fund) collected during
22 the second preceding calendar month by the Department from
23 retailers and servicemen on transactions at places of business
24 located within a STAR bond district in that municipality or
25 county, plus an amount the Department determines is necessary
26 to offset any amounts which were erroneously paid to a

 

 

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1 different taxing body, and not including an amount equal to the
2 amount of refunds made during the second preceding calendar
3 month by the Department, and not including any amount which the
4 Department determines is necessary to offset any amounts which
5 are payable to a different taxing body but were erroneously
6 paid to the municipality or county. Within 10 days after
7 receipt, by the Comptroller, of the disbursement certification
8 to the municipalities and counties, provided for in this
9 Section to be given to the Comptroller by the Department, the
10 Comptroller shall cause the orders to be drawn for the
11 respective amounts in accordance with the directions contained
12 in such certification.
13     When certifying the amount of monthly disbursement to a
14 municipality or county under this subsection, the Department
15 shall increase or decrease that amount by an amount necessary
16 to offset any misallocation of previous disbursements. The
17 offset amount shall be the amount erroneously disbursed within
18 the 6 months preceding the time a misallocation is discovered.
19     (f) As of the seventh anniversary of the first date of
20 distribution of State sales tax revenues from the first STAR
21 bond project in the STAR bond district, and as of every fifth
22 anniversary thereafter until final maturity of all STAR bonds
23 issued in a STAR bond district, the aggregate proceeds of STAR
24 bonds issued to date for the STAR bond district shall not
25 exceed 50% of the total development costs in the STAR bond
26 district to date. The Illinois Auditor General shall make the

 

 

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1 foregoing determination on said seventh anniversary and every 5
2 years thereafter until final maturity of all STAR bonds issued
3 in a STAR bond district. If at any time after the seventh
4 anniversary of the first date of distribution of State sales
5 tax revenues from the first STAR bond project in the STAR bond
6 district the Illinois Auditor General determines that the
7 aggregate proceeds of STAR bonds issued to date for the STAR
8 bond district have exceeded 50% of the total development costs
9 in the STAR bond district, no additional STAR bonds may be
10 issued in the STAR bond district until the percentage is
11 reduced to 50% or below. When the percentage has been reduced
12 to 50% or below, the master developer shall have the right, at
13 its own cost, to obtain a new audit prepared by an independent
14 third-party auditor verifying compliance and shall provide
15 such audit to the Illinois Auditor General for review and
16 approval. Upon the Illinois Auditor General's determination
17 from the audit that the percentage has been reduced to 50% or
18 below, STAR bonds may again be issued in the STAR bond
19 district.
 
20     Section 31. STAR bond occupation taxes.
21     (a) If the corporate authorities of a political subdivision
22 have established a STAR bond district and have elected to
23 impose a tax by ordinance pursuant to subsection (b) or (c) of
24 this Section, each year after the date of the adoption of the
25 ordinance and until all STAR bond project costs and all

 

 

09600SB2093ham002 - 47 - LRB096 11467 RLJ 32088 a

1 political subdivision obligations financing the STAR bond
2 project costs, if any, have been paid in accordance with the
3 STAR bond project plans, but in no event longer than the
4 maximum maturity date of the last of the STAR bonds issued for
5 projects in the STAR bond district, all amounts generated by
6 the retailers' occupation tax and service occupation tax shall
7 be collected and the tax shall be enforced by the Department of
8 Revenue in the same manner as all retailers' occupation taxes
9 and service occupation taxes imposed in the political
10 subdivision imposing the tax. The corporate authorities of the
11 political subdivision shall deposit the proceeds of the taxes
12 imposed under subsections (b) and (c) into a special fund held
13 by the corporate authorities of the political subdivision
14 called the STAR Bonds Tax Allocation Fund for the purpose of
15 paying STAR bond project costs and obligations incurred in the
16 payment of those costs.
17     The tax imposed under this Section by a municipality may be
18 imposed only on the portion of a STAR bond district that is
19 within the boundaries of the municipality. For any part of a
20 STAR bond district that lies outside of the boundaries of that
21 municipality, the municipality in which the other part of the
22 STAR bond district lies (or the county, in cases where a
23 portion of the STAR bond district lies in the unincorporated
24 area of a county) is authorized to impose the tax under this
25 Section on that part of the STAR bond district.
26     (b) The corporate authorities of a political subdivision

 

 

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1 that has established a STAR bond district under this Act may,
2 by ordinance or resolution, impose a STAR Bond Retailers'
3 Occupation Tax upon all persons engaged in the business of
4 selling tangible personal property, other than an item of
5 tangible personal property titled or registered with an agency
6 of this State's government, at retail in the STAR bond district
7 at a rate not to exceed 1% of the gross receipts from the sales
8 made in the course of that business, to be imposed only in
9 0.25% increments. The tax may not be imposed on food for human
10 consumption that is to be consumed off the premises where it is
11 sold (other than alcoholic beverages, soft drinks, and food
12 that has been prepared for immediate consumption),
13 prescription and nonprescription medicines, drugs, medical
14 appliances, modifications to a motor vehicle for the purpose of
15 rendering it usable by a disabled person, and insulin, urine
16 testing materials, syringes, and needles used by diabetics, for
17 human use.
18     The tax imposed under this subsection and all civil
19 penalties that may be assessed as an incident thereof shall be
20 collected and enforced by the Department of Revenue. The
21 certificate of registration that is issued by the Department to
22 a retailer under the Retailers' Occupation Tax Act shall permit
23 the retailer to engage in a business that is taxable under any
24 ordinance or resolution enacted pursuant to this subsection
25 without registering separately with the Department under such
26 ordinance or resolution or under this subsection. The

 

 

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1 Department of Revenue shall have full power to administer and
2 enforce this subsection; to collect all taxes and penalties due
3 under this subsection in the manner hereinafter provided; and
4 to determine all rights to credit memoranda arising on account
5 of the erroneous payment of tax or penalty under this
6 subsection. In the administration of, and compliance with, this
7 subsection, the Department and persons who are subject to this
8 subsection shall have the same rights, remedies, privileges,
9 immunities, powers, and duties, and be subject to the same
10 conditions, restrictions, limitations, penalties, exclusions,
11 exemptions, and definitions of terms and employ the same modes
12 of procedure, as are prescribed in Sections 1, 1a through 1o, 2
13 through 2-65 (in respect to all provisions therein other than
14 the State rate of tax), 2c through 2h, 3 (except as to the
15 disposition of taxes and penalties collected), 4, 5, 5a, 5b,
16 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
17 11, 12, 13, and 14 of the Retailers' Occupation Tax Act and all
18 provisions of the Uniform Penalty and Interest Act, as fully as
19 if those provisions were set forth herein.
20     If a tax is imposed under this subsection (b), a tax shall
21 also be imposed under subsection (c) of this Section.
22     (c) If a tax has been imposed under subsection (b), a STAR
23 Bond Service Occupation Tax shall also be imposed upon all
24 persons engaged, in the STAR bond district, in the business of
25 making sales of service, who, as an incident to making those
26 sales of service, transfer tangible personal property within

 

 

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1 the STAR bond district, either in the form of tangible personal
2 property or in the form of real estate as an incident to a sale
3 of service. The tax shall be imposed at the same rate as the
4 tax imposed in subsection (b) and shall not exceed 1% of the
5 selling price of tangible personal property so transferred
6 within the STAR bond district, to be imposed only in 0.25%
7 increments. The tax may not be imposed on food for human
8 consumption that is to be consumed off the premises where it is
9 sold (other than alcoholic beverages, soft drinks, and food
10 that has been prepared for immediate consumption),
11 prescription and nonprescription medicines, drugs, medical
12 appliances, modifications to a motor vehicle for the purpose of
13 rendering it usable by a disabled person, and insulin, urine
14 testing materials, syringes, and needles used by diabetics, for
15 human use.
16     The tax imposed under this subsection and all civil
17 penalties that may be assessed as an incident thereof shall be
18 collected and enforced by the Department of Revenue. The
19 certificate of registration that is issued by the Department to
20 a retailer under the Retailers' Occupation Tax Act or under the
21 Service Occupation Tax Act shall permit the registrant to
22 engage in a business that is taxable under any ordinance or
23 resolution enacted pursuant to this subsection without
24 registering separately with the Department under that
25 ordinance or resolution or under this subsection. The
26 Department of Revenue shall have full power to administer and

 

 

09600SB2093ham002 - 51 - LRB096 11467 RLJ 32088 a

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

 

 

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1     If a tax is imposed under this subsection (c), a tax shall
2 also be imposed under subsection (b) of this Section.
3     (d) Persons subject to any tax imposed under this Section
4 may reimburse themselves for their seller's tax liability under
5 this Section by separately stating the tax as an additional
6 charge, which charge may be stated in combination, in a single
7 amount, with State taxes that sellers are required to collect
8 under the Use Tax Act, in accordance with such bracket
9 schedules as the Department may prescribe.
10     Whenever the Department determines that a refund should be
11 made under this Section to a claimant instead of issuing a
12 credit memorandum, the Department shall notify the State
13 Comptroller, who shall cause the order to be drawn for the
14 amount specified and to the person named in the notification
15 from the Department. The refund shall be paid by the State
16 Treasurer out of the STAR bond retailers' occupation tax fund.
17     The Department shall immediately pay over to the State
18 Treasurer, ex officio, as trustee, all taxes, penalties, and
19 interest collected under this Section for deposit into the STAR
20 bond retailers' occupation tax fund. On or before the 25th day
21 of each calendar month, the Department shall prepare and
22 certify to the Comptroller the disbursement of stated sums of
23 money to named political subdivisions from the STAR bond
24 retailers' occupation tax fund, the political subdivisions to
25 be those from which retailers have paid taxes or penalties
26 under this Section to the Department during the second

 

 

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1 preceding calendar month. The amount to be paid to each
2 political subdivision shall be the amount (not including credit
3 memoranda) collected under this Section during the second
4 preceding calendar month by the Department plus an amount the
5 Department determines is necessary to offset any amounts that
6 were erroneously paid to a different taxing body, and not
7 including an amount equal to the amount of refunds made during
8 the second preceding calendar month by the Department, less 3%
9 of that amount, which shall be deposited into the Tax
10 Compliance and Administration Fund and shall be used by the
11 Department, subject to appropriation, to cover the costs of the
12 Department in administering and enforcing the provisions of
13 this Section, on behalf of such political subdivision, and not
14 including any amount that the Department determines is
15 necessary to offset any amounts that were payable to a
16 different taxing body but were erroneously paid to the
17 political subdivision. Within 10 days after receipt by the
18 Comptroller of the disbursement certification to the political
19 subdivisions provided for in this Section to be given to the
20 Comptroller by the Department, the Comptroller shall cause the
21 orders to be drawn for the respective amounts in accordance
22 with the directions contained in the certification. The
23 proceeds of the tax paid to political subdivisions under this
24 Section shall be deposited into the STAR Bonds Tax Allocation
25 Fund by the political subdivision.
26     An ordinance or resolution imposing or discontinuing the

 

 

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1 tax under this Section or effecting a change in the rate
2 thereof shall either (i) be adopted and a certified copy
3 thereof filed with the Department on or before the first day of
4 April, whereupon the Department, if all other requirements of
5 this Section are met, shall proceed to administer and enforce
6 this Section as of the first day of July next following the
7 adoption and filing; or (ii) be adopted and a certified copy
8 thereof filed with the Department on or before the first day of
9 October, whereupon, if all other requirements of this Section
10 are met, the Department shall proceed to administer and enforce
11 this Section as of the first day of January next following the
12 adoption and filing.
13     The Department of Revenue shall not administer or enforce
14 an ordinance imposing, discontinuing, or changing the rate of
15 the tax under this Section, until the political subdivision
16 also provides, in the manner prescribed by the Department, the
17 boundaries of the STAR bond district and each address in the
18 STAR bond district in such a way that the Department can
19 determine by its address whether a business is located in the
20 STAR bond district. The political subdivision must provide this
21 boundary and address information to the Department on or before
22 April 1 for administration and enforcement of the tax under
23 this Section by the Department beginning on the following July
24 1 and on or before October 1 for administration and enforcement
25 of the tax under this Section by the Department beginning on
26 the following January 1. The Department of Revenue shall not

 

 

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1 administer or enforce any change made to the boundaries of a
2 STAR bond district or any address change, addition, or deletion
3 until the political subdivision reports the boundary change or
4 address change, addition, or deletion to the Department in the
5 manner prescribed by the Department. The political subdivision
6 must provide this boundary change or address change, addition,
7 or deletion information to the Department on or before April 1
8 for administration and enforcement by the Department of the
9 change, addition, or deletion beginning on the following July 1
10 and on or before October 1 for administration and enforcement
11 by the Department of the change, addition, or deletion
12 beginning on the following January 1. The retailers in the STAR
13 bond district shall be responsible for charging the tax imposed
14 under this Section. If a retailer is incorrectly included or
15 excluded from the list of those required to collect the tax
16 under this Section, both the Department of Revenue and the
17 retailer shall be held harmless if they reasonably relied on
18 information provided by the political subdivision.
19     A political subdivision that imposes the tax under this
20 Section must submit to the Department of Revenue any other
21 information as the Department may require for the
22 administration and enforcement of the tax.
23     When certifying the amount of a monthly disbursement to a
24 political subdivision under this Section, the Department shall
25 increase or decrease the amount by an amount necessary to
26 offset any misallocation of previous disbursements. The offset

 

 

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1 amount shall be the amount erroneously disbursed within the
2 previous 6 months from the time a misallocation is discovered.
3     Nothing in this Section shall be construed to authorize the
4 political subdivision to impose a tax upon the privilege of
5 engaging in any business which under the Constitution of the
6 United States may not be made the subject of taxation by this
7 State.
8     (e) When STAR bond project costs, including, without
9 limitation, all political subdivision obligations financing
10 STAR bond project costs, have been paid, any surplus funds then
11 remaining in the STAR Bonds Tax Allocation Fund shall be
12 distributed to the treasurer of the political subdivision for
13 deposit into the political subdivision's general corporate
14 fund. Upon payment of all STAR bond project costs and
15 retirement of obligations, but in no event later than the
16 maximum maturity date of the last of the STAR bonds issued in
17 the STAR bond district, the political subdivision shall adopt
18 an ordinance immediately rescinding the taxes imposed pursuant
19 to this Section and file a certified copy of the ordinance with
20 the Department in the form and manner as described in this
21 Section.
 
22     Section 33. STAR Bonds Community Improvement Trust Fund.
23     (a) The STAR Bonds Community Improvement Trust Fund is
24 created as a trust fund in the State treasury. Deposits into
25 the Trust Fund shall be made as provided under this Section.

 

 

09600SB2093ham002 - 57 - LRB096 11467 RLJ 32088 a

1 Moneys in the Trust Fund shall be used by the Department of
2 Revenue only for the purpose of making payments to
3 municipalities that lie within a 12 mile radius of the
4 political subdivision in which the STAR bond district is
5 located and the county in which the STAR bond district is
6 located. Moneys in the Trust Fund are not subject to
7 appropriation and shall be used solely as provided in this
8 Section. All deposits into the Trust Fund shall be held in the
9 Trust Fund by the State Treasurer as ex officio custodian
10 separate and apart from all public moneys or funds of this
11 State and shall be administered by the Department exclusively
12 for the purposes set forth in this Section. All moneys in the
13 Trust Fund shall be invested and reinvested by the State
14 Treasurer. All interest accruing from these investments shall
15 be deposited in the Trust Fund.
16     (b) Upon approval of a STAR bond district by the Director,
17 the political subdivision shall immediately transmit to the
18 county clerk of the county in which the district is located a
19 certified copy of the ordinance creating the district, a legal
20 description of the district, a map of the district,
21 identification of the year that the county clerk shall use for
22 determining the total initial equalized assessed value of the
23 district consistent with subsection (c), and a list of the
24 parcel or tax identification number of each parcel of property
25 included in the district.
26     (c) Upon approval of a STAR bond district, the county clerk

 

 

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1 immediately thereafter shall determine (i) the most recently
2 ascertained equalized assessed value of each lot, block, tract,
3 or parcel of real property within the STAR bond district, from
4 which shall be deducted the homestead exemptions under Article
5 15 of the Property Tax Code, which value shall be the initial
6 equalized assessed value of each such piece of property, and
7 (ii) the total equalized assessed value of all taxable real
8 property within the district by adding together the most
9 recently ascertained equalized assessed value of each taxable
10 lot, block, tract, or parcel of real property within the
11 district, from which shall be deducted the homestead exemptions
12 under Article 15 of the Property Tax Code, and shall certify
13 that amount as the total initial equalized assessed value of
14 the taxable real property within the STAR bond district.
15     (d) In reference to any STAR bond district created within
16 any political subdivision, and in respect to which the county
17 clerk has certified the total initial equalized assessed value
18 of the property in the area, the political subdivision may
19 thereafter request the clerk in writing to adjust the initial
20 equalized value of all taxable real property within the STAR
21 bond district by deducting therefrom the exemptions under
22 Article 15 of the Property Tax Code applicable to each lot,
23 block, tract, or parcel of real property within the STAR bond
24 district. The county clerk shall immediately after the written
25 request to adjust the total initial equalized value is received
26 determine the total homestead exemptions in the STAR bond

 

 

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1 district as provided under Article 15 of the Property Tax Code
2 by adding together the homestead exemptions provided by said
3 Article on each lot, block, tract, or parcel of real property
4 within STAR bond district and then shall deduct the total of
5 said exemptions from the total initial equalized assessed
6 value. The county clerk shall then promptly certify that amount
7 as the total initial equalized assessed value as adjusted of
8 the taxable real property within the STAR bond district.
9     (e) The county clerk or other person authorized by law
10 shall compute the tax rates for each taxing district with all
11 or a portion of its equalized assessed value located in the
12 STAR bond district. The rate per cent of tax determined shall
13 be extended to the current equalized assessed value of all
14 property in the district in the same manner as the rate per
15 cent of tax is extended to all other taxable property in the
16 taxing district.
17     (f) Beginning with the assessment year in which the first
18 destination user in the first STAR bond project in a STAR bond
19 district makes its first retail sales and for each assessment
20 year thereafter until final maturity of the last STAR bonds
21 issued in the district, the county clerk or other person
22 authorized by law shall determine the increase in equalized
23 assessed value of all real property within the STAR bond
24 district by subtracting the initial equalized assessed value of
25 all property in the district certified under subsection (c)
26 from the current equalized assessed value of all property in

 

 

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1 the district. Each year, the property taxes arising from the
2 increase in equalized assessed value in the STAR bond district
3 shall be determined for each taxing district and shall be
4 certified to the county collector.
5     (g) Beginning with the year in which taxes are collected
6 based on the assessment year in which the first destination
7 user in the first STAR bond project in a STAR bond district
8 makes its first retail sales and for each year thereafter until
9 final maturity of the last STAR bonds issued in the district,
10 the county collector shall, within 30 days after receipt of
11 property taxes, transmit to the Department to be deposited into
12 the STAR Bonds Community Improvement Trust Fund 15% of property
13 taxes attributable to the increase in equalized assessed value
14 within the STAR bond district from each taxing district as
15 certified in subsection (f).
16     (h) The Department shall pay to each municipality that lies
17 within 12 miles of the STAR bond district (excluding the
18 municipality in which the STAR bond district is located) and to
19 the county in which the STAR bond district is located for each
20 year for which money is remitted to the Department and paid
21 into the STAR Bonds Community Improvement Trust Fund, a portion
22 of the money in the Fund as provided in this subsection. The
23 money in the Fund shall first be allocated such that 35% of the
24 money is paid to the municipalities that lie within 5 miles of
25 the STAR bond district (excluding the municipality in which the
26 STAR bond district is located), with the balance being paid to

 

 

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1 the municipalities that lie more than 5 but no more than 12
2 miles from the STAR bond district and the county. The amount
3 paid to each political subdivision (after allocating 35% to
4 municipalities that lie within 5 miles of the STAR bond
5 district and 65% to the municipalities that lie more than 5 but
6 not more than 12 miles from the STAR bond district and the
7 county) shall be based on each qualifying municipality or
8 county's proportionate share of the total municipal and county
9 sales tax generated within a 12 mile radius of the STAR bond
10 district (excluding the municipality in which the STAR bond
11 district is located) as measured over the 4 years immediately
12 prior to the year in which the first retail sales are made in
13 the district.
14     The Department shall determine the distributions under
15 this Section using its best judgment and information. The
16 Department shall be held harmless for the distributions made
17 under this Section and all distributions shall be final.
18     (i) In any year that an assessment appeal is filed, the
19 extension of taxes on any assessment so appealed shall not be
20 delayed. In the case of an assessment that is altered, any
21 taxes extended upon the unauthorized assessment or part thereof
22 shall be abated, or, if already paid, shall be refunded with
23 interest as provided in Section 23-20 of the Property Tax Code.
24 In the case of an assessment appeal, the county collector shall
25 notify the Department that an assessment appeal has been filed
26 and the amount of the tax that would have been deposited in the

 

 

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1 STAR Bond Community Improvement Fund. The county collector
2 shall hold that amount in a separate fund until the appeal
3 process is final. After the appeal process is finalized, the
4 county collector shall transmit to the Department the amount of
5 tax that remains, if any, after all required refunds are made.
6 The Department shall pay any amount deposited into the Trust
7 Fund under this Section in the same proportion as determined
8 for payments for that taxable year under subsection (h).
9     (j) In any year that ad valorem taxes are allocated to the
10 STAR Bonds Community Improvement Trust Fund, that allocation
11 shall not reduce or otherwise impact the school aid provided to
12 any school district under the general State school aid formula
13 provided for in Section 18-8.05 of the School Code.
 
14     Section 34. STAR bond district property tax. To assist in
15 the provision of special services that will necessarily be
16 required by a STAR bond district, the political subdivision
17 forming a STAR bond district shall, subject to item (6) of
18 Section 7 of Article VII of the Illinois Constitution, have the
19 power to levy a tax on the equalized assessed value of property
20 within the STAR bond district to be known as the "STAR bond
21 district property tax". For purposes of this Section, the
22 corporate authorities of the political subdivision forming the
23 STAR bond district shall be the governing body of the STAR bond
24 district. The powers vested in political subdivisions under
25 this Section shall be in addition to those set forth in the

 

 

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1 Special Service Area Tax Law.
2     (a) The STAR bond district property tax may be annually
3 levied or imposed by the political subdivision in the STAR bond
4 district in an amount equal to 1% of the equalized assessed
5 value. Prior to the first levy of the STAR bond district
6 property tax, notice shall be furnished at least once in a
7 newspaper of general circulation within the political
8 subdivision not less than 15 days prior to the first levy. For
9 purposes of this Section, the notice shall include: (i) the
10 boundaries of the STAR bond district by legal description and,
11 where possible, by street location; (ii) the permanent tax
12 index number of each parcel located within the STAR bond
13 district; and (iii) a statement that the proposed tax is to be
14 levied pursuant to this Section to pay for the provision of
15 certain special services provided to the STAR bond district.
16     After the first levy of the STAR bond district property tax
17 within the STAR bond district, the tax may continue to be
18 levied in subsequent years without the requirement of an
19 additional public notice until such time as the STAR bond
20 district is terminated pursuant to this Act.
21     (b) No STAR bond district property tax lien shall be
22 established against any real property in a STAR bond district
23 nor shall a STAR bond district property tax be valid before a
24 certified copy of the ordinance or ordinances establishing the
25 STAR bond district property tax and establishing or altering
26 the boundaries of the STAR bond district, including a legal

 

 

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1 description of the territory of the STAR bond district, the
2 permanent tax index numbers of the parcels located within the
3 STAR bond district, an accurate map of the STAR bond district,
4 and a copy of the notice is filed for record in the office of
5 the recorder in each county in which any part of the STAR bond
6 district is located. The ordinance must be recorded no later
7 than 60 days after the date the ordinance establishing the STAR
8 bond district property tax was adopted.
9     (c) If the STAR bond district property tax is levied, the
10 tax shall be extended by the county clerk in the STAR bond
11 district in the manner provided by Articles 1 through 26 of the
12 Property Tax Code based on equalized assessed values as
13 established under Articles 1 through 26 of the Property Tax
14 Code. The political subdivision shall file a certified copy of
15 the ordinance creating the STAR bond district, including an
16 accurate map thereof, with the county clerk. The corporate
17 authorities of the political subdivision may levy taxes in the
18 STAR bond district prior to the date the levy must be filed
19 with the county clerk, for the same year in which the ordinance
20 and map are filed with the county clerk. In addition, the
21 corporate authorities shall file a certified copy of each
22 ordinance levying the STAR bond district property tax on or
23 before the last Tuesday of December of each year and shall file
24 a certified copy of any ordinance authorizing the issuance of
25 bonds by December 31 of the year of the first levy.
 

 

 

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1     Section 35. Alternate bonds and general obligation bonds. A
2 political subdivision shall have the power to issue alternate
3 revenue and other general obligation bonds to finance the
4 undertaking, establishment, or redevelopment of any STAR bond
5 project as provided and pursuant to the procedures set forth in
6 the Local Government Debt Reform Act. A political subdivision
7 shall have the power to issue general obligation bonds to
8 finance the undertaking, establishment, or redevelopment of
9 any STAR bond project on approval by the voters of the
10 political subdivision of a proposition authorizing the issue of
11 such bonds.
12     The full faith and credit of the State, any department,
13 authority, public corporation or quasi-public corporation of
14 the State, any State college or university, or any other public
15 agency created by the State shall not be pledged for any
16 payment under any obligation authorized by this Act.
 
17     Section 40. Amendments to STAR bond district. Any addition
18 of real property to a STAR bond district or any substantial
19 change to a STAR bond district plan shall be subject to the
20 same procedure for public notice, hearing, and approval as is
21 required for the establishment of the STAR bond district
22 pursuant to this Act.
23     (a) The addition or removal of land to or from a STAR bond
24 district shall require the consent of the master developer of
25 the STAR bond district.

 

 

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1     (b) Any land that is outside of, but is contiguous to an
2 established STAR bond district and is subsequently owned,
3 leased, or controlled by the master developer shall be added to
4 a STAR bond district at the request of the master developer and
5 by approval of the political subdivision, provided that the
6 land becomes a part of a STAR bond project area.
7     (c) If a political subdivision has undertaken a STAR bond
8 project within a STAR bond district, and the political
9 subdivision desires to subsequently remove more than a de
10 minimus amount of real property from the STAR bond district,
11 then prior to any removal of property the political subdivision
12 must provide a revised feasibility study showing that the
13 pledged STAR revenues from the resulting STAR bond district
14 within which the STAR bond project is located are estimated to
15 be sufficient to pay the project costs. If the revenue from the
16 resulting STAR bond district is insufficient to pay the project
17 costs, then the property may not be removed from the STAR bond
18 district. Any removal of real property from a STAR bond
19 district shall be approved by a resolution of the governing
20 body of the political subdivision.
21     (d) If the boundaries of a STAR bond district are proposed
22 to be enlarged and a STAR bond district property tax has been
23 established pursuant to Section 34, the same notice
24 requirements set forth in subsection (a) of Section 34 shall be
25 complied with prior to implementation of the STAR bond district
26 property tax in any area that becomes, or is proposed to

 

 

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1 become, a part of the STAR bond district. The property added to
2 the STAR bond district shall be subject to all taxes levied in
3 the district after the property becomes a part of the district.
 
4     Section 45. Restrictions. No portion of a STAR bond project
5 shall be financed with tax increment financing pursuant to the
6 Tax Increment Allocation Redevelopment Act, and no moneys
7 deposited into the STAR Bonds Revenue Fund shall be used to
8 fund tax increment financing district projects. An existing
9 district created under the Tax Increment Allocation
10 Redevelopment Act, Industrial Jobs Recovery Law, or County
11 Economic Development Project Area Property Tax Allocation Act
12 may not annex parcels located within a STAR bond district nor
13 may a new district be created that encompasses any portion of a
14 STAR bond district. During any period of time that STAR bonds
15 are outstanding for a STAR bond district, a developer may not
16 use any land located in the STAR bond district for any (i)
17 retail store whose primary business is the sale of automobiles,
18 including trucks and other automotive vehicles with 4 wheels
19 designed for passenger transportation on public streets and
20 thoroughfares or (ii) stadium or facility for playing National
21 Association of Minor League Baseball or Professional
22 Independent Baseball League games.
 
23     Section 50. Reporting taxes. Notwithstanding any other
24 provisions of law to the contrary, the Department of Revenue

 

 

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1 shall provide a certified report of the State sales tax
2 increment and local sales tax increment from all taxpayers
3 within a STAR bond district to the bond trustee, escrow agent,
4 or paying agent for such bonds upon the written request of the
5 political subdivision on or before the 25th day of each month.
6 Such report shall provide a detailed allocation of State sales
7 tax increment and local sales tax increment from each local
8 sales tax and State sales tax reported to the Department of
9 Revenue.
10     (a) The bond trustee, escrow agent, or paying agent shall
11 keep such sales and use tax reports and the information
12 contained therein confidential, but may use such information
13 for purposes of allocating and depositing the sales and use tax
14 revenues in connection with the bonds used to finance project
15 costs in such STAR bond district. Except as otherwise provided
16 herein, the sales and use tax reports received by the bond
17 trustee, escrow agent, or paying agent shall be subject to the
18 provisions of Chapter 35 of the Illinois Compiled Statutes,
19 including Section 3 of the Retailers' Occupation Tax Act and
20 Section 9 of the Use Tax Act.
21     (b) The political subdivision shall determine when the
22 amount of sales tax and other revenues that have been collected
23 and distributed to the bond debt service or reserve fund is
24 sufficient to satisfy all principal and interest costs to the
25 maturity date or dates of any STAR bond issued by a political
26 subdivision to finance a STAR bond project and shall give the

 

 

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1 Department of Revenue written notice of such determination. The
2 notice shall include a date certain on which deposits into the
3 STAR Bonds Revenue Fund for that STAR bond project shall
4 terminate and shall be provided to the Department of Revenue at
5 least 60 days prior to that date. Thereafter, all sales tax and
6 other revenues shall be collected and distributed in accordance
7 with applicable law.
 
8     Section 52. Review committee. Upon the seventh anniversary
9 of the first date of distribution of State sales tax revenues
10 from the first STAR bond project in the State, a 6-member STAR
11 bonds review committee shall be formed consisting of one
12 appointee of each of the Director, the Director of the
13 Department of Commerce and Economic Opportunity, the President
14 of the Senate, the Senate Minority Leader, the Speaker of the
15 House, and the House Minority Leader. The review committee
16 shall evaluate the success of all STAR bond districts then
17 existing in the State and make a determination of the
18 comprehensive economic benefits and detriments of STAR bonds in
19 the State as a whole. In making its determination, the review
20 committee shall examine available data regarding job creation,
21 sales revenues, and capital investment in STAR bond districts;
22 development that has occurred and is planned in areas adjacent
23 to STAR bond districts that will not be directly financed with
24 STAR bonds; effects of market conditions on STAR bond districts
25 and the likelihood of future successes based on improving or

 

 

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1 declining market conditions; retail sales migration and
2 cannibalization of retail sales due to STAR bond districts; and
3 other relevant economic factors. The review committee shall
4 provide the Director, the General Assembly, and the Governor
5 with a written report detailing its findings and shall make a
6 final determination of whether STAR bonds have had, and are
7 likely to continue having, a negative or positive economic
8 impact on the State as a whole. Upon completing and filing its
9 written report, the review committee shall be dissolved. If the
10 review committee's report makes a final determination that STAR
11 bonds have had and are likely to continue having a negative
12 economic impact on the State as a whole, then no new STAR bond
13 districts may thereafter be formed in the State until further
14 action by the General Assembly.
 
15     Section 55. Severability. If any provision of this Act or
16 the application thereof to any persons or circumstances is held
17 invalid, such invalidity shall not affect other provisions or
18 application of the Act that can be given effect without the
19 invalid provisions or application and to this end the
20 provisions of this Act are declared to be severable.
 
21     Section 57. Rules. The Department of Revenue shall have the
22 authority to adopt such rules as are reasonable and necessary
23 to implement the provisions of this Act. Notwithstanding the
24 foregoing, the Department of Revenue shall have the authority,

 

 

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1 prior to adoption and approval of those rules, to approve a
2 STAR bond district in accordance with subsection (d) of Section
3 20 and otherwise administer the Act while those rules are
4 pending adoption and approval.
 
5     Section 60. Open meetings and freedom of information. All
6 public hearings related to the administration, formation,
7 implementation, development, or construction of a STAR bond
8 district, STAR bond district plan, STAR bond project, or STAR
9 bond project plan, including but not limited to the public
10 hearings required by Sections 15, 20, and 40 of this Act, shall
11 be held in compliance with the Open Meetings Act. The public
12 hearing records, feasibility study, and other documents that do
13 not otherwise meet a confidentiality exemption shall be subject
14 to the Freedom of Information Act.
 
15     Section 62. Powers of political subdivisions. The
16 provisions of this Act are intended to be supplemental and in
17 addition to all other power or authority granted to political
18 subdivisions, shall be construed liberally, and shall not be
19 construed as a limitation of any power or authority otherwise
20 granted. In addition to the powers a political subdivision may
21 have under other provisions of law, a political subdivision
22 shall have all of the following powers in connection with a
23 STAR bond district:
24         (a) To make and enter into all contracts necessary or

 

 

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1     incidental to the implementation and furtherance of a STAR
2     bond district plan.
3         (b) Within a STAR bond district, to acquire by
4     purchase, donation, or lease, and to own, convey, lease,
5     mortgage, or dispose of land and other real or personal
6     property or rights or interests in property and to grant or
7     acquire licenses, easements, and options with respect to
8     property, all in the manner and at a price the political
9     subdivision determines is reasonably necessary to achieve
10     the objectives of the STAR bond project.
11         (c) To clear any area within a STAR bond district by
12     demolition or removal of any existing buildings,
13     structures, fixtures, utilities, or improvements and to
14     clear and grade land.
15         (d) To install, repair, construct, reconstruct, extend
16     or relocate public streets, public utilities, and other
17     public site improvements located both within and outside
18     the boundaries of a STAR bond district that are essential
19     to the preparation of a STAR bond district for use in
20     accordance with a STAR bond district plan.
21         (e) To renovate, rehabilitate, reconstruct, relocate,
22     repair, or remodel any existing buildings, improvements,
23     and fixtures within a STAR bond district.
24         (f) To install or construct any public buildings,
25     structures, works, streets, improvements, utilities, or
26     fixtures within a STAR bond district.

 

 

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1         (g) To issue STAR bonds as provided in this Act.
2         (h) Subject to the limitations set forth in the
3     definition of "project costs" in Section 10 of this Act, to
4     fix, charge, and collect fees, rents, and charges for the
5     use of any building, facility, or property or any portion
6     of a building, facility, or property owned or leased by the
7     political subdivision in furtherance of a STAR bond project
8     under this Act within a STAR bond district.
9         (i) To accept grants, guarantees, donations of
10     property or labor, or any other thing of value for use in
11     connection with a STAR bond project.
12         (j) To pay or cause to be paid STAR bond project costs,
13     including, specifically, to reimburse any developer or
14     nongovernmental person for STAR bond project costs
15     incurred by that person. A political subdivision is not
16     required to obtain any right, title, or interest in any
17     real or personal property in order to pay STAR bond project
18     costs associated with the property. The political
19     subdivision shall adopt accounting procedures necessary to
20     determine that the STAR bond project costs are properly
21     paid.
22         (k) To exercise any and all other powers necessary to
23     effectuate the purposes of this Act.
 
24     Section 65. The Illinois State Auditing Act is amended by
25 changing Section 3-1 as follows:
 

 

 

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1     (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
2     Sec. 3-1. Jurisdiction of Auditor General. The Auditor
3 General has jurisdiction over all State agencies to make post
4 audits and investigations authorized by or under this Act or
5 the Constitution.
6     The Auditor General has jurisdiction over local government
7 agencies and private agencies only:
8         (a) to make such post audits authorized by or under
9     this Act as are necessary and incidental to a post audit of
10     a State agency or of a program administered by a State
11     agency involving public funds of the State, but this
12     jurisdiction does not include any authority to review local
13     governmental agencies in the obligation, receipt,
14     expenditure or use of public funds of the State that are
15     granted without limitation or condition imposed by law,
16     other than the general limitation that such funds be used
17     for public purposes;
18         (b) to make investigations authorized by or under this
19     Act or the Constitution; and
20         (c) to make audits of the records of local government
21     agencies to verify actual costs of state-mandated programs
22     when directed to do so by the Legislative Audit Commission
23     at the request of the State Board of Appeals under the
24     State Mandates Act.
25     In addition to the foregoing, the Auditor General may

 

 

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1 conduct an audit of the Metropolitan Pier and Exposition
2 Authority, the Regional Transportation Authority, the Suburban
3 Bus Division, the Commuter Rail Division and the Chicago
4 Transit Authority and any other subsidized carrier when
5 authorized by the Legislative Audit Commission. Such audit may
6 be a financial, management or program audit, or any combination
7 thereof.
8     The audit shall determine whether they are operating in
9 accordance with all applicable laws and regulations. Subject to
10 the limitations of this Act, the Legislative Audit Commission
11 may by resolution specify additional determinations to be
12 included in the scope of the audit.
13     In addition to the foregoing, the Auditor General must also
14 conduct a financial audit of the Illinois Sports Facilities
15 Authority's expenditures of public funds in connection with the
16 reconstruction, renovation, remodeling, extension, or
17 improvement of all or substantially all of any existing
18 "facility", as that term is defined in the Illinois Sports
19 Facilities Authority Act.
20     The Auditor General may also conduct an audit, when
21 authorized by the Legislative Audit Commission, of any hospital
22 which receives 10% or more of its gross revenues from payments
23 from the State of Illinois, Department of Healthcare and Family
24 Services (formerly Department of Public Aid), Medical
25 Assistance Program.
26     The Auditor General is authorized to conduct financial and

 

 

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1 compliance audits of the Illinois Distance Learning Foundation
2 and the Illinois Conservation Foundation.
3     As soon as practical after the effective date of this
4 amendatory Act of 1995, the Auditor General shall conduct a
5 compliance and management audit of the City of Chicago and any
6 other entity with regard to the operation of Chicago O'Hare
7 International Airport, Chicago Midway Airport and Merrill C.
8 Meigs Field. The audit shall include, but not be limited to, an
9 examination of revenues, expenses, and transfers of funds;
10 purchasing and contracting policies and practices; staffing
11 levels; and hiring practices and procedures. When completed,
12 the audit required by this paragraph shall be distributed in
13 accordance with Section 3-14.
14     The Auditor General shall conduct a financial and
15 compliance and program audit of distributions from the
16 Municipal Economic Development Fund during the immediately
17 preceding calendar year pursuant to Section 8-403.1 of the
18 Public Utilities Act at no cost to the city, village, or
19 incorporated town that received the distributions.
20     The Auditor General must conduct an audit of the Health
21 Facilities and Services Review Board pursuant to Section 19.5
22 of the Illinois Health Facilities Planning Act.
23     The Auditor General of the State of Illinois shall annually
24 conduct or cause to be conducted a financial and compliance
25 audit of the books and records of any county water commission
26 organized pursuant to the Water Commission Act of 1985 and

 

 

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1 shall file a copy of the report of that audit with the Governor
2 and the Legislative Audit Commission. The filed audit shall be
3 open to the public for inspection. The cost of the audit shall
4 be charged to the county water commission in accordance with
5 Section 6z-27 of the State Finance Act. The county water
6 commission shall make available to the Auditor General its
7 books and records and any other documentation, whether in the
8 possession of its trustees or other parties, necessary to
9 conduct the audit required. These audit requirements apply only
10 through July 1, 2007.
11     The Auditor General must conduct audits of the Rend Lake
12 Conservancy District as provided in Section 25.5 of the River
13 Conservancy Districts Act.
14     The Auditor General must conduct financial audits of the
15 Southeastern Illinois Economic Development Authority as
16 provided in Section 70 of the Southeastern Illinois Economic
17 Development Authority Act.
18     The Auditor General shall conduct a compliance audit in
19 accordance with subsections (d) and (f) of Section 30 of the
20 STAR Bonds Financing Act.
21 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
 
22     Section 66. The State Finance Act is amended by changing
23 Sections 6z-18 and 6z-20 and by adding Sections 5.756 and 5.757
24 as follows:
 

 

 

09600SB2093ham002 - 78 - LRB096 11467 RLJ 32088 a

1     (30 ILCS 105/5.756 new)
2     Sec. 5.756. The STAR Bonds Revenue Fund.
 
3     (30 ILCS 105/5.757 new)
4     Sec. 5.757. STAR Bonds Community Improvement Trust Fund.
 
5     (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
6     Sec. 6z-18. A portion of the money paid into the Local
7 Government Tax Fund from sales of food for human consumption
8 which is to be consumed off the premises where it is sold
9 (other than alcoholic beverages, soft drinks and food which has
10 been prepared for immediate consumption) and prescription and
11 nonprescription medicines, drugs, medical appliances and
12 insulin, urine testing materials, syringes and needles used by
13 diabetics, which occurred in municipalities, shall be
14 distributed to each municipality based upon the sales which
15 occurred in that municipality. The remainder shall be
16 distributed to each county based upon the sales which occurred
17 in the unincorporated area of that county.
18     A portion of the money paid into the Local Government Tax
19 Fund from the 6.25% general use tax rate on the selling price
20 of tangible personal property which is purchased outside
21 Illinois at retail from a retailer and which is titled or
22 registered by any agency of this State's government shall be
23 distributed to municipalities as provided in this paragraph.
24 Each municipality shall receive the amount attributable to

 

 

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1 sales for which Illinois addresses for titling or registration
2 purposes are given as being in such municipality. The remainder
3 of the money paid into the Local Government Tax Fund from such
4 sales shall be distributed to counties. Each county shall
5 receive the amount attributable to sales for which Illinois
6 addresses for titling or registration purposes are given as
7 being located in the unincorporated area of such county.
8     A portion of the money paid into the Local Government Tax
9 Fund from the 6.25% general rate (and, beginning July 1, 2000
10 and through December 31, 2000, the 1.25% rate on motor fuel and
11 gasohol) on sales subject to taxation under the Retailers'
12 Occupation Tax Act and the Service Occupation Tax Act, which
13 occurred in municipalities, shall be distributed to each
14 municipality, based upon the sales which occurred in that
15 municipality. The remainder shall be distributed to each
16 county, based upon the sales which occurred in the
17 unincorporated area of such county.
18     For the purpose of determining allocation to the local
19 government unit, a retail sale by a producer of coal or other
20 mineral mined in Illinois is a sale at retail at the place
21 where the coal or other mineral mined in Illinois is extracted
22 from the earth. This paragraph does not apply to coal or other
23 mineral when it is delivered or shipped by the seller to the
24 purchaser at a point outside Illinois so that the sale is
25 exempt under the United States Constitution as a sale in
26 interstate or foreign commerce.

 

 

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1     Whenever the Department determines that a refund of money
2 paid into the Local Government Tax Fund should be made to a
3 claimant instead of issuing a credit memorandum, the Department
4 shall notify the State Comptroller, who shall cause the order
5 to be drawn for the amount specified, and to the person named,
6 in such notification from the Department. Such refund shall be
7 paid by the State Treasurer out of the Local Government Tax
8 Fund.
9     As soon as possible after the first day of each month,
10 beginning January 1, 2011, upon certification of the Department
11 of Revenue, the Comptroller shall order transferred, and the
12 Treasurer shall transfer to the STAR Bonds Revenue Fund the
13 local sales tax increment, as defined in the STAR Bonds
14 Financing Act, collected during the second preceding calendar
15 month for sales within a STAR bond district and deposited into
16 the Local Government Tax Fund, less 3% of that amount, which
17 shall be transferred into the Tax Compliance and Administration
18 Fund and shall be used by the Department, subject to
19 appropriation, to cover the costs of the Department in
20 administering the STAR Bonds Financing Act.
21     After the monthly transfer to the STAR Bonds Revenue Fund,
22 on On or before the 25th day of each calendar month, the
23 Department shall prepare and certify to the Comptroller the
24 disbursement of stated sums of money to named municipalities
25 and counties, the municipalities and counties to be those
26 entitled to distribution of taxes or penalties paid to the

 

 

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1 Department during the second preceding calendar month. The
2 amount to be paid to each municipality or county shall be the
3 amount (not including credit memoranda) collected during the
4 second preceding calendar month by the Department and paid into
5 the Local Government Tax Fund, plus an amount the Department
6 determines is necessary to offset any amounts which were
7 erroneously paid to a different taxing body, and not including
8 an amount equal to the amount of refunds made during the second
9 preceding calendar month by the Department, and not including
10 any amount which the Department determines is necessary to
11 offset any amounts which are payable to a different taxing body
12 but were erroneously paid to the municipality or county, and
13 not including any amounts that are transferred to the STAR
14 Bonds Revenue Fund. Within 10 days after receipt, by the
15 Comptroller, of the disbursement certification to the
16 municipalities and counties, provided for in this Section to be
17 given to the Comptroller by the Department, the Comptroller
18 shall cause the orders to be drawn for the respective amounts
19 in accordance with the directions contained in such
20 certification.
21     When certifying the amount of monthly disbursement to a
22 municipality or county under this Section, the Department shall
23 increase or decrease that amount by an amount necessary to
24 offset any misallocation of previous disbursements. The offset
25 amount shall be the amount erroneously disbursed within the 6
26 months preceding the time a misallocation is discovered.

 

 

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1     The provisions directing the distributions from the
2 special fund in the State Treasury provided for in this Section
3 shall constitute an irrevocable and continuing appropriation
4 of all amounts as provided herein. The State Treasurer and
5 State Comptroller are hereby authorized to make distributions
6 as provided in this Section.
7     In construing any development, redevelopment, annexation,
8 preannexation or other lawful agreement in effect prior to
9 September 1, 1990, which describes or refers to receipts from a
10 county or municipal retailers' occupation tax, use tax or
11 service occupation tax which now cannot be imposed, such
12 description or reference shall be deemed to include the
13 replacement revenue for such abolished taxes, distributed from
14 the Local Government Tax Fund.
15 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872,
16 eff. 7-1-00.)
 
17     (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
18     Sec. 6z-20. Of the money received from the 6.25% general
19 rate (and, beginning July 1, 2000 and through December 31,
20 2000, the 1.25% rate on motor fuel and gasohol) on sales
21 subject to taxation under the Retailers' Occupation Tax Act and
22 Service Occupation Tax Act and paid into the County and Mass
23 Transit District Fund, distribution to the Regional
24 Transportation Authority tax fund, created pursuant to Section
25 4.03 of the Regional Transportation Authority Act, for deposit

 

 

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1 therein shall be made based upon the retail sales occurring in
2 a county having more than 3,000,000 inhabitants. The remainder
3 shall be distributed to each county having 3,000,000 or fewer
4 inhabitants based upon the retail sales occurring in each such
5 county.
6     For the purpose of determining allocation to the local
7 government unit, a retail sale by a producer of coal or other
8 mineral mined in Illinois is a sale at retail at the place
9 where the coal or other mineral mined in Illinois is extracted
10 from the earth. This paragraph does not apply to coal or other
11 mineral when it is delivered or shipped by the seller to the
12 purchaser at a point outside Illinois so that the sale is
13 exempt under the United States Constitution as a sale in
14 interstate or foreign commerce.
15     Of the money received from the 6.25% general use tax rate
16 on tangible personal property which is purchased outside
17 Illinois at retail from a retailer and which is titled or
18 registered by any agency of this State's government and paid
19 into the County and Mass Transit District Fund, the amount for
20 which Illinois addresses for titling or registration purposes
21 are given as being in each county having more than 3,000,000
22 inhabitants shall be distributed into the Regional
23 Transportation Authority tax fund, created pursuant to Section
24 4.03 of the Regional Transportation Authority Act. The
25 remainder of the money paid from such sales shall be
26 distributed to each county based on sales for which Illinois

 

 

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1 addresses for titling or registration purposes are given as
2 being located in the county. Any money paid into the Regional
3 Transportation Authority Occupation and Use Tax Replacement
4 Fund from the County and Mass Transit District Fund prior to
5 January 14, 1991, which has not been paid to the Authority
6 prior to that date, shall be transferred to the Regional
7 Transportation Authority tax fund.
8     Whenever the Department determines that a refund of money
9 paid into the County and Mass Transit District Fund should be
10 made to a claimant instead of issuing a credit memorandum, the
11 Department shall notify the State Comptroller, who shall cause
12 the order to be drawn for the amount specified, and to the
13 person named, in such notification from the Department. Such
14 refund shall be paid by the State Treasurer out of the County
15 and Mass Transit District Fund.
16     As soon as possible after the first day of each month,
17 beginning January 1, 2011, upon certification of the Department
18 of Revenue, the Comptroller shall order transferred, and the
19 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
20 State sales tax increment, as defined in the STAR Bonds
21 Financing Act, collected during the second preceding calendar
22 month for sales within a STAR bond district and deposited into
23 the County and Mass Transit District Fund, less 3% of that
24 amount, which shall be transferred into the Tax Compliance and
25 Administration Fund and shall be used by the Department,
26 subject to appropriation, to cover the costs of the Department

 

 

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

 

 

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

 

 

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1 Distributive Fund, as the case may be.
2 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
 
3     Section 67. The Counties Code is amended by changing
4 Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1007 as follows:
 
5     (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
6     Sec. 5-1006. Home Rule County Retailers' Occupation Tax
7 Law. Any county that is a home rule unit may impose a tax upon
8 all persons engaged in the business of selling tangible
9 personal property, other than an item of tangible personal
10 property titled or registered with an agency of this State's
11 government, at retail in the county on the gross receipts from
12 such sales made in the course of their business. If imposed,
13 this tax shall only be imposed in 1/4% increments. On and after
14 September 1, 1991, this additional tax may not be imposed on
15 the sales of food for human consumption which is to be consumed
16 off the premises where it is sold (other than alcoholic
17 beverages, soft drinks and food which has been prepared for
18 immediate consumption) and prescription and nonprescription
19 medicines, drugs, medical appliances and insulin, urine
20 testing materials, syringes and needles used by diabetics. The
21 tax imposed by a home rule county pursuant to this Section and
22 all civil penalties that may be assessed as an incident thereof
23 shall be collected and enforced by the State Department of
24 Revenue. The certificate of registration that is issued by the

 

 

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1 Department to a retailer under the Retailers' Occupation Tax
2 Act shall permit the retailer to engage in a business that is
3 taxable under any ordinance or resolution enacted pursuant to
4 this Section without registering separately with the
5 Department under such ordinance or resolution or under this
6 Section. The Department shall have full power to administer and
7 enforce this Section; to collect all taxes and penalties due
8 hereunder; to dispose of taxes and penalties so collected in
9 the manner hereinafter provided; and to determine all rights to
10 credit memoranda arising on account of the erroneous payment of
11 tax or penalty hereunder. In the administration of, and
12 compliance with, this Section, the Department and persons who
13 are subject to this Section shall have the same rights,
14 remedies, privileges, immunities, powers and duties, and be
15 subject to the same conditions, restrictions, limitations,
16 penalties and definitions of terms, and employ the same modes
17 of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
18 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
19 provisions therein other than the State rate of tax), 4, 5, 5a,
20 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
21 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
22 Section 3-7 of the Uniform Penalty and Interest Act, as fully
23 as if those provisions were set forth herein.
24     No tax may be imposed by a home rule county pursuant to
25 this Section unless the county also imposes a tax at the same
26 rate pursuant to Section 5-1007.

 

 

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

 

 

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1 on On or before the 25th day of each calendar month, the
2 Department shall prepare and certify to the Comptroller the
3 disbursement of stated sums of money to named counties, the
4 counties to be those from which retailers have paid taxes or
5 penalties hereunder to the Department during the second
6 preceding calendar month. The amount to be paid to each county
7 shall be the amount (not including credit memoranda) collected
8 hereunder during the second preceding calendar month by the
9 Department plus an amount the Department determines is
10 necessary to offset any amounts that were erroneously paid to a
11 different taxing body, and not including an amount equal to the
12 amount of refunds made during the second preceding calendar
13 month by the Department on behalf of such county, and not
14 including any amount which the Department determines is
15 necessary to offset any amounts which were payable to a
16 different taxing body but were erroneously paid to the county,
17 and not including any amounts that are transferred to the STAR
18 Bonds Revenue Fund. Within 10 days after receipt, by the
19 Comptroller, of the disbursement certification to the counties
20 provided for in this Section to be given to the Comptroller by
21 the Department, the Comptroller shall cause the orders to be
22 drawn for the respective amounts in accordance with the
23 directions contained in the certification.
24     In addition to the disbursement required by the preceding
25 paragraph, an allocation shall be made in March of each year to
26 each county that received more than $500,000 in disbursements

 

 

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

 

 

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

 

 

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1 day of October, whereupon the Department shall proceed to
2 administer and enforce this Section as of the first day of
3 January next following the adoption and filing.
4     When certifying the amount of a monthly disbursement to a
5 county under this Section, the Department shall increase or
6 decrease such amount by an amount necessary to offset any
7 misallocation of previous disbursements. The offset amount
8 shall be the amount erroneously disbursed within the previous 6
9 months from the time a misallocation is discovered.
10     This Section shall be known and may be cited as the Home
11 Rule County Retailers' Occupation Tax Law.
12 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
13     (55 ILCS 5/5-1006.5)
14     (Text of Section before amendment by P.A. 96-845)
15     Sec. 5-1006.5. Special County Retailers' Occupation Tax
16 For Public Safety, Public Facilities, or Transportation.
17     (a) The county board of any county may impose a tax upon
18 all persons engaged in the business of selling tangible
19 personal property, other than personal property titled or
20 registered with an agency of this State's government, at retail
21 in the county on the gross receipts from the sales made in the
22 course of business to provide revenue to be used exclusively
23 for public safety, public facility, or transportation purposes
24 in that county, if a proposition for the tax has been submitted
25 to the electors of that county and approved by a majority of

 

 

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

 

 

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

 

 

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1         For the purposes of the paragraph, "public safety
2     purposes" means crime prevention, detention, fire
3     fighting, police, medical, ambulance, or other emergency
4     services.
5         Votes shall be recorded as "Yes" or "No".
6         (2) The proposition for transportation purposes shall
7     be in substantially the following form:
8         "To pay for improvements to roads and other
9     transportation purposes, shall (name of county) be
10     authorized to impose an increase on its share of local
11     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 transportation
22     purposes shall be in substantially the following form:
23         "To pay for road improvements and other transportation
24     purposes, shall (name of county) be authorized to impose an
25     increase on its share of local sales taxes by (insert rate)
26     for a period not to exceed (insert number of years)?"

 

 

09600SB2093ham002 - 97 - LRB096 11467 RLJ 32088 a

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 the purposes of this paragraph, transportation
10     purposes means construction, maintenance, operation, and
11     improvement of public highways, any other purpose for which
12     a county may expend funds under the Illinois Highway Code,
13     and passenger rail transportation.
14         The votes shall be recorded as "Yes" or "No".
15         (3) The proposition for public facilities purposes
16     shall be in substantially the following form:
17         "To pay for public facilities purposes, shall (name of
18     county) be authorized to impose an increase on its share of
19     local sales taxes by (insert rate)?"
20         As additional information on the ballot below the
21     question shall appear the following:
22         "This would mean that a consumer would pay an
23     additional (insert amount) in sales tax for every $100 of
24     tangible personal property bought at retail."
25         The county board may also opt to establish a sunset
26     provision at which time the additional sales tax would

 

 

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1     cease being collected, if not terminated earlier by a vote
2     of the county board. If the county board votes to include a
3     sunset provision, the proposition for public facilities
4     purposes shall be in substantially the following form:
5         "To pay for public facilities purposes, shall (name of
6     county) be authorized to impose an increase on its share of
7     local sales taxes by (insert rate) for a period not to
8     exceed (insert number of years)?"
9         As additional information on the ballot below the
10     question shall appear the following:
11         "This would mean that a consumer would pay an
12     additional (insert amount) in sales tax for every $100 of
13     tangible personal property bought at retail. If imposed,
14     the additional tax would cease being collected at the end
15     of (insert number of years), if not terminated earlier by a
16     vote of the county board."
17         For purposes of this Section, "public facilities
18     purposes" means the acquisition, development,
19     construction, reconstruction, rehabilitation, improvement,
20     financing, architectural planning, and installation of
21     capital facilities consisting of buildings, structures,
22     and durable equipment and for the acquisition and
23     improvement of real property and interest in real property
24     required, or expected to be required, in connection with
25     the public facilities, for use by the county for the
26     furnishing of governmental services to its citizens,

 

 

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1     including but not limited to museums and nursing homes.
2         The votes shall be recorded as "Yes" or "No".
3     If a majority of the electors voting on the proposition
4 vote in favor of it, the county may impose the tax. A county
5 may not submit more than one proposition authorized by this
6 Section to the electors at any one time.
7     This additional tax may not be imposed on the sales of food
8 for human consumption that is to be consumed off the premises
9 where it is sold (other than alcoholic beverages, soft drinks,
10 and food which has been prepared for immediate consumption) and
11 prescription and non-prescription medicines, drugs, medical
12 appliances and insulin, urine testing materials, syringes, and
13 needles used by diabetics. The tax imposed by a county under
14 this Section and all civil penalties that may be assessed as an
15 incident of the tax shall be collected and enforced by the
16 Illinois Department of Revenue and deposited into a special
17 fund created for that purpose. The certificate of registration
18 that is issued by the Department to a retailer under the
19 Retailers' Occupation Tax Act shall permit the retailer to
20 engage in a business that is taxable without registering
21 separately with the Department under an ordinance or resolution
22 under this Section. The Department has full power to administer
23 and enforce this Section, to collect all taxes and penalties
24 due under this Section, to dispose of taxes and penalties so
25 collected in the manner provided in this Section, and to
26 determine all rights to credit memoranda arising on account of

 

 

09600SB2093ham002 - 100 - LRB096 11467 RLJ 32088 a

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

 

 

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

 

 

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1 Department and persons who are subject to this paragraph shall
2 (i) have the same rights, remedies, privileges, immunities,
3 powers, and duties, (ii) be subject to the same conditions,
4 restrictions, limitations, penalties, exclusions, exemptions,
5 and definitions of terms, and (iii) employ the same modes of
6 procedure as are prescribed in Sections 2 (except that the
7 reference to State in the definition of supplier maintaining a
8 place of business in this State shall mean the county), 2a, 2b,
9 2c, 3 through 3-50 (in respect to all provisions therein other
10 than the State rate of tax), 4 (except that the reference to
11 the State shall be to the county), 5, 7, 8 (except that the
12 jurisdiction to which the tax shall be a debt to the extent
13 indicated in that Section 8 shall be the county), 9 (except as
14 to the disposition of taxes and penalties collected), 10, 11,
15 12 (except the reference therein to Section 2b of the
16 Retailers' Occupation Tax Act), 13 (except that any reference
17 to the State shall mean the county), Section 15, 16, 17, 18, 19
18 and 20 of the Service Occupation Tax Act and Section 3-7 of the
19 Uniform Penalty and Interest Act, as fully as if those
20 provisions were set forth herein.
21     Persons subject to any tax imposed under the authority
22 granted in this subsection may reimburse themselves for their
23 serviceman's tax liability by separately stating the tax as an
24 additional charge, which charge may be stated in combination,
25 in a single amount, with State tax that servicemen are
26 authorized to collect under the Service Use Tax Act, in

 

 

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

 

 

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

 

 

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1 paragraph, an allocation shall be made in March of each year to
2 each county that received more than $500,000 in disbursements
3 under the preceding paragraph in the preceding calendar year.
4 The allocation shall be in an amount equal to the average
5 monthly distribution made to each such county under the
6 preceding paragraph during the preceding calendar year
7 (excluding the 2 months of highest receipts). The distribution
8 made in March of each year subsequent to the year in which an
9 allocation was made pursuant to this paragraph and the
10 preceding paragraph shall be reduced by the amount allocated
11 and disbursed under this paragraph in the preceding calendar
12 year. The Department shall prepare and certify to the
13 Comptroller for disbursement the allocations made in
14 accordance with this paragraph.
15     (d) For the purpose of determining the local governmental
16 unit whose tax is applicable, a retail sale by a producer of
17 coal or another mineral mined in Illinois is a sale at retail
18 at the place where the coal or other mineral mined in Illinois
19 is extracted from the earth. This paragraph does not apply to
20 coal or another mineral when it is delivered or shipped by the
21 seller to the purchaser at a point outside Illinois so that the
22 sale is exempt under the United States Constitution as a sale
23 in interstate or foreign commerce.
24     (e) Nothing in this Section shall be construed to authorize
25 a county to impose a tax upon the privilege of engaging in any
26 business that under the Constitution of the United States may

 

 

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1 not be made the subject of taxation by this State.
2     (e-5) If a county imposes a tax under this Section, the
3 county board may, by ordinance, discontinue or lower the rate
4 of the tax. If the county board lowers the tax rate or
5 discontinues the tax, a referendum must be held in accordance
6 with subsection (a) of this Section in order to increase the
7 rate of the tax or to reimpose the discontinued tax.
8     (f) Beginning April 1, 1998, the results of any election
9 authorizing a proposition to impose a tax under this Section or
10 effecting a change in the rate of tax, or any ordinance
11 lowering the rate or discontinuing the tax, shall be certified
12 by the county clerk and filed with the Illinois Department of
13 Revenue either (i) on or before the first day of April,
14 whereupon the Department shall proceed to administer and
15 enforce the tax as of the first day of July next following the
16 filing; or (ii) on or before the first day of October,
17 whereupon the Department shall proceed to administer and
18 enforce the tax as of the first day of January next following
19 the filing.
20     (g) When certifying the amount of a monthly disbursement to
21 a county under this Section, the Department shall increase or
22 decrease the amounts by an amount necessary to offset any
23 miscalculation of previous disbursements. The offset amount
24 shall be the amount erroneously disbursed within the previous 6
25 months from the time a miscalculation is discovered.
26     (h) This Section may be cited as the "Special County

 

 

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1 Occupation Tax For Public Safety, Public Facilities, or
2 Transportation Law".
3     (i) For purposes of this Section, "public safety" includes,
4 but is not limited to, crime prevention, detention, fire
5 fighting, police, medical, ambulance, or other emergency
6 services. The county may share tax proceeds received under this
7 Section for public safety purposes, including proceeds
8 received before August 4, 2009 (the effective date of Public
9 Act 96-124) this amendatory Act of the 96th General Assembly,
10 with any fire protection district located in the county. For
11 the purposes of this Section, "transportation" includes, but is
12 not limited to, the construction, maintenance, operation, and
13 improvement of public highways, any other purpose for which a
14 county may expend funds under the Illinois Highway Code, and
15 passenger rail transportation. For the purposes of this
16 Section, "public facilities purposes" includes, but is not
17 limited to, the acquisition, development, construction,
18 reconstruction, rehabilitation, improvement, financing,
19 architectural planning, and installation of capital facilities
20 consisting of buildings, structures, and durable equipment and
21 for the acquisition and improvement of real property and
22 interest in real property required, or expected to be required,
23 in connection with the public facilities, for use by the county
24 for the furnishing of governmental services to its citizens,
25 including but not limited to museums and nursing homes.
26     (j) The Department may promulgate rules to implement Public

 

 

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1 Act 95-1002 this amendatory Act of the 95th General Assembly
2 only to the extent necessary to apply the existing rules for
3 the Special County Retailers' Occupation Tax for Public Safety
4 to this new purpose for public facilities.
5 (Source: P.A. 95-474, eff. 1-1-08; 95-1002, eff. 11-20-08;
6 96-124, eff. 8-4-09; 96-622, eff. 8-24-09; revised 11-3-09.)
 
7     (Text of Section after amendment by P.A. 96-845)
8     Sec. 5-1006.5. Special County Retailers' Occupation Tax
9 For Public Safety, Public Facilities, or Transportation.
10     (a) The county board of any county may impose a tax upon
11 all persons engaged in the business of selling tangible
12 personal property, other than personal property titled or
13 registered with an agency of this State's government, at retail
14 in the county on the gross receipts from the sales made in the
15 course of business to provide revenue to be used exclusively
16 for public safety, public facility, or transportation purposes
17 in that county, if a proposition for the tax has been submitted
18 to the electors of that county and approved by a majority of
19 those voting on the question. If imposed, this tax shall be
20 imposed only in one-quarter percent increments. By resolution,
21 the county board may order the proposition to be submitted at
22 any election. If the tax is imposed for transportation purposes
23 for expenditures for public highways or as authorized under the
24 Illinois Highway Code, the county board must publish notice of
25 the existence of its long-range highway transportation plan as

 

 

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1 required or described in Section 5-301 of the Illinois Highway
2 Code and must make the plan publicly available prior to
3 approval of the ordinance or resolution imposing the tax. If
4 the tax is imposed for transportation purposes for expenditures
5 for passenger rail transportation, the county board must
6 publish notice of the existence of its long-range passenger
7 rail transportation plan and must make the plan publicly
8 available prior to approval of the ordinance or resolution
9 imposing the tax.
10     If a tax is imposed for public facilities purposes, then
11 the name of the project may be included in the proposition at
12 the discretion of the county board as determined in the
13 enabling resolution. For example, the "XXX Nursing Home" or the
14 "YYY Museum".
15     The county clerk shall certify the question to the proper
16 election authority, who shall submit the proposition at an
17 election in accordance with the general election law.
18         (1) The proposition for public safety purposes shall be
19     in substantially the following form:
20         "To pay for public safety purposes, shall (name of
21     county) be authorized to impose an increase on its share of
22     local sales taxes by (insert rate)?"
23         As additional information on the ballot below the
24     question shall appear the following:
25         "This would mean that a consumer would pay an
26     additional (insert amount) in sales tax for every $100 of

 

 

09600SB2093ham002 - 110 - LRB096 11467 RLJ 32088 a

1     tangible personal property bought at retail."
2         The county board may also opt to establish a sunset
3     provision at which time the additional sales tax would
4     cease being collected, if not terminated earlier by a vote
5     of the county board. If the county board votes to include a
6     sunset provision, the proposition for public safety
7     purposes shall be in substantially the following form:
8         "To pay for public safety purposes, shall (name of
9     county) be authorized to impose an increase on its share of
10     local sales taxes by (insert rate) for a period not to
11     exceed (insert number of years)?"
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. If imposed,
17     the additional tax would cease being collected at the end
18     of (insert number of years), if not terminated earlier by a
19     vote of the county board."
20         For the purposes of the paragraph, "public safety
21     purposes" means crime prevention, detention, fire
22     fighting, police, medical, ambulance, or other emergency
23     services.
24         Votes shall be recorded as "Yes" or "No".
25         (2) The proposition for transportation purposes shall
26     be in substantially the following form:

 

 

09600SB2093ham002 - 111 - LRB096 11467 RLJ 32088 a

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

 

 

09600SB2093ham002 - 112 - LRB096 11467 RLJ 32088 a

1     vote of the county board."
2         For the purposes of this paragraph, transportation
3     purposes means construction, maintenance, operation, and
4     improvement of public highways, any other purpose for which
5     a county may expend funds under the Illinois Highway Code,
6     and passenger rail transportation.
7         The votes shall be recorded as "Yes" or "No".
8         (3) The proposition for public facilities purposes
9     shall be in substantially the following form:
10         "To pay for public facilities 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 facilities
23     purposes shall be in substantially the following form:
24         "To pay for public facilities 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

 

 

09600SB2093ham002 - 113 - LRB096 11467 RLJ 32088 a

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 purposes of this Section, "public facilities
11     purposes" means the acquisition, development,
12     construction, reconstruction, rehabilitation, improvement,
13     financing, architectural planning, and installation of
14     capital facilities consisting of buildings, structures,
15     and durable equipment and for the acquisition and
16     improvement of real property and interest in real property
17     required, or expected to be required, in connection with
18     the public facilities, for use by the county for the
19     furnishing of governmental services to its citizens,
20     including but not limited to museums and nursing homes.
21         The votes shall be recorded as "Yes" or "No".
22     If a majority of the electors voting on the proposition
23 vote in favor of it, the county may impose the tax. A county
24 may not submit more than one proposition authorized by this
25 Section to the electors at any one time.
26     This additional tax may not be imposed on the sales of food

 

 

09600SB2093ham002 - 114 - LRB096 11467 RLJ 32088 a

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

 

 

09600SB2093ham002 - 115 - LRB096 11467 RLJ 32088 a

1 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
2 1n, 2 through 2-70 (in respect to all provisions contained in
3 those Sections other than the State rate of tax), 2a, 2b, 2c, 3
4 (except provisions relating to transaction returns and quarter
5 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
6 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
7 the Retailers' Occupation Tax Act and Section 3-7 of the
8 Uniform Penalty and Interest Act as if those provisions were
9 set forth in this Section.
10     Persons subject to any tax imposed under the authority
11 granted in this Section may reimburse themselves for their
12 sellers' tax liability by separately stating the tax as an
13 additional charge, which charge may be stated in combination,
14 in a single amount, with State tax which sellers are required
15 to collect under the Use Tax Act, pursuant to such bracketed
16 schedules as the Department may prescribe.
17     Whenever the Department determines that a refund should be
18 made under this Section to a claimant instead of issuing a
19 credit memorandum, the Department shall notify the State
20 Comptroller, who shall cause the order to be drawn for the
21 amount specified and to the person named in the notification
22 from the Department. The refund shall be paid by the State
23 Treasurer out of the County Public Safety or Transportation
24 Retailers' Occupation Tax Fund.
25     (b) If a tax has been imposed under subsection (a), a
26 service occupation tax shall also be imposed at the same rate

 

 

09600SB2093ham002 - 116 - LRB096 11467 RLJ 32088 a

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

 

 

09600SB2093ham002 - 117 - LRB096 11467 RLJ 32088 a

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

 

 

09600SB2093ham002 - 118 - LRB096 11467 RLJ 32088 a

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

 

 

09600SB2093ham002 - 119 - LRB096 11467 RLJ 32088 a

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

 

 

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1 made in March of each year subsequent to the year in which an
2 allocation was made pursuant to this paragraph and the
3 preceding paragraph shall be reduced by the amount allocated
4 and disbursed under this paragraph in the preceding calendar
5 year. The Department shall prepare and certify to the
6 Comptroller for disbursement the allocations made in
7 accordance with this paragraph.
8     A county may direct, by ordinance, that all or a portion of
9 the taxes and penalties collected under the Special County
10 Retailers' Occupation Tax For Public Safety or Transportation
11 be deposited into the Transportation Development Partnership
12 Trust Fund.
13     (d) For the purpose of determining the local governmental
14 unit whose tax is applicable, a retail sale by a producer of
15 coal or another mineral mined in Illinois is a sale at retail
16 at the place where the coal or other mineral mined in Illinois
17 is extracted from the earth. This paragraph does not apply to
18 coal or another mineral when it is delivered or shipped by the
19 seller to the purchaser at a point outside Illinois so that the
20 sale is exempt under the United States Constitution as a sale
21 in interstate or foreign commerce.
22     (e) Nothing in this Section shall be construed to authorize
23 a county to impose a tax upon the privilege of engaging in any
24 business that under the Constitution of the United States may
25 not be made the subject of taxation by this State.
26     (e-5) If a county imposes a tax under this Section, the

 

 

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1 county board may, by ordinance, discontinue or lower the rate
2 of the tax. If the county board lowers the tax rate or
3 discontinues the tax, a referendum must be held in accordance
4 with subsection (a) of this Section in order to increase the
5 rate of the tax or to reimpose the discontinued tax.
6     (f) Beginning April 1, 1998, the results of any election
7 authorizing a proposition to impose a tax under this Section or
8 effecting a change in the rate of tax, or any ordinance
9 lowering the rate or discontinuing the tax, shall be certified
10 by the county clerk and filed with the Illinois Department of
11 Revenue either (i) on or before the first day of April,
12 whereupon the Department shall proceed to administer and
13 enforce the tax as of the first day of July next following the
14 filing; or (ii) on or before the first day of October,
15 whereupon the Department shall proceed to administer and
16 enforce the tax as of the first day of January next following
17 the filing.
18     (g) When certifying the amount of a monthly disbursement to
19 a county under this Section, the Department shall increase or
20 decrease the amounts by an amount necessary to offset any
21 miscalculation of previous disbursements. The offset amount
22 shall be the amount erroneously disbursed within the previous 6
23 months from the time a miscalculation is discovered.
24     (h) This Section may be cited as the "Special County
25 Occupation Tax For Public Safety, Public Facilities, or
26 Transportation Law".

 

 

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1     (i) For purposes of this Section, "public safety" includes,
2 but is not limited to, crime prevention, detention, fire
3 fighting, police, medical, ambulance, or other emergency
4 services. The county may share tax proceeds received under this
5 Section for public safety purposes, including proceeds
6 received before August 4, 2009 (the effective date of Public
7 Act 96-124) this amendatory Act of the 96th General Assembly,
8 with any fire protection district located in the county. For
9 the purposes of this Section, "transportation" includes, but is
10 not limited to, the construction, maintenance, operation, and
11 improvement of public highways, any other purpose for which a
12 county may expend funds under the Illinois Highway Code, and
13 passenger rail transportation. For the purposes of this
14 Section, "public facilities purposes" includes, but is not
15 limited to, the acquisition, development, construction,
16 reconstruction, rehabilitation, improvement, financing,
17 architectural planning, and installation of capital facilities
18 consisting of buildings, structures, and durable equipment and
19 for the acquisition and improvement of real property and
20 interest in real property required, or expected to be required,
21 in connection with the public facilities, for use by the county
22 for the furnishing of governmental services to its citizens,
23 including but not limited to museums and nursing homes.
24     (j) The Department may promulgate rules to implement Public
25 Act 95-1002 this amendatory Act of the 95th General Assembly
26 only to the extent necessary to apply the existing rules for

 

 

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1 the Special County Retailers' Occupation Tax for Public Safety
2 to this new purpose for public facilities.
3 (Source: P.A. 95-474, eff. 1-1-08; 95-1002, eff. 11-20-08;
4 96-124, eff. 8-4-09; 96-622, eff. 8-24-09; 96-845, eff. 7-1-12;
5 revised 12-30-09.)
 
6     (55 ILCS 5/5-1006.7)
7     Sec. 5-1006.7. School facility occupation taxes.
8     (a) The county board of any county may impose a tax upon
9 all persons engaged in the business of selling tangible
10 personal property, other than personal property titled or
11 registered with an agency of this State's government, at retail
12 in the county on the gross receipts from the sales made in the
13 course of business to provide revenue to be used exclusively
14 for school facility purposes if a proposition for the tax has
15 been submitted to the electors of that county and approved by a
16 majority of those voting on the question as provided in
17 subsection (c). The tax under this Section may be imposed only
18 in one-quarter percent increments and may not exceed 1%.
19     This additional tax may not be imposed on the sale of food
20 for human consumption that is to be consumed off the premises
21 where it is sold (other than alcoholic beverages, soft drinks,
22 and food that has been prepared for immediate consumption) and
23 prescription and non-prescription medicines, drugs, medical
24 appliances and insulin, urine testing materials, syringes and
25 needles used by diabetics. The Department of Revenue has full

 

 

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1 power to administer and enforce this subsection, to collect all
2 taxes and penalties due under this subsection, to dispose of
3 taxes and penalties so collected in the manner provided in this
4 subsection, and to determine all rights to credit memoranda
5 arising on account of the erroneous payment of a tax or penalty
6 under this subsection. The Department shall deposit all taxes
7 and penalties collected under this subsection into a special
8 fund created for that purpose.
9     In the administration of and compliance with this
10 subsection, the Department and persons who are subject to this
11 subsection (i) have the same rights, remedies, privileges,
12 immunities, powers, and duties, (ii) are subject to the same
13 conditions, restrictions, limitations, penalties, and
14 definitions of terms, and (iii) shall employ the same modes of
15 procedure as are set forth in Sections 1 through 1o, 2 through
16 2-70 (in respect to all provisions contained in those Sections
17 other than the State rate of tax), 2a through 2h, 3 (except as
18 to the disposition of taxes and penalties collected), 4, 5, 5a,
19 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
20 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
21 and all provisions of the Uniform Penalty and Interest Act as
22 if those provisions were set forth in this subsection.
23     The certificate of registration that is issued by the
24 Department to a retailer under the Retailers' Occupation Tax
25 Act permits the retailer to engage in a business that is
26 taxable without registering separately with the Department

 

 

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

 

 

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

 

 

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1     Persons subject to any tax imposed under the authority
2 granted in this subsection may reimburse themselves for their
3 serviceman's tax liability by separately stating the tax as an
4 additional charge, which may be stated in combination, in a
5 single amount, with State tax that servicemen are authorized to
6 collect under the Service Use Tax Act, pursuant to any
7 bracketed schedules set forth by the Department.
8     (c) The tax under this Section may not be imposed until, by
9 ordinance or resolution of the county board, the question of
10 imposing the tax has been submitted to the electors of the
11 county at a regular election and approved by a majority of the
12 electors voting on the question. Upon a resolution by the
13 county board or a resolution by school district boards that
14 represent at least 51% of the student enrollment within the
15 county, the county board must certify the question to the
16 proper election authority in accordance with the Election Code.
17     The election authority must submit the question in
18 substantially the following form:
19         Shall (name of county) be authorized to impose a
20     retailers' occupation tax and a service occupation tax
21     (commonly referred to as a "sales tax") at a rate of
22     (insert rate) to be used exclusively for school facility
23     purposes?
24 The election authority must record the votes as "Yes" or "No".
25     If a majority of the electors voting on the question vote
26 in the affirmative, then the county may, thereafter, impose the

 

 

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1 tax.
2     For the purposes of this subsection (c), "enrollment" means
3 the head count of the students residing in the county on the
4 last school day of September of each year, which must be
5 reported on the Illinois State Board of Education Public School
6 Fall Enrollment/Housing Report.
7     (d) The Department shall immediately pay over to the State
8 Treasurer, ex officio, as trustee, all taxes and penalties
9 collected under this Section to be deposited into the School
10 Facility Occupation Tax Fund, which shall be an unappropriated
11 trust fund held outside the State treasury.
12     As soon as possible after the first day of each month,
13 beginning January 1, 2011, upon certification of the Department
14 of Revenue, the Comptroller shall order transferred, and the
15 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16 local sales tax increment, as defined in the STAR Bonds
17 Financing Act, collected under this Section during the second
18 preceding calendar month for sales within a STAR bond district.
19     After the monthly transfer to the STAR Bonds Revenue Fund,
20 on On or before the 25th day of each calendar month, the
21 Department shall prepare and certify to the Comptroller the
22 disbursement of stated sums of money to the regional
23 superintendents of schools in counties from which retailers or
24 servicemen have paid taxes or penalties to the Department
25 during the second preceding calendar month. The amount to be
26 paid to each regional superintendent of schools and disbursed

 

 

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1 to him or her in accordance with 3-14.31 of the School Code, is
2 equal to the amount (not including credit memoranda) collected
3 from the county under this Section during the second preceding
4 calendar month by the Department, (i) less 2% of that amount,
5 which shall be deposited into the Tax Compliance and
6 Administration Fund and shall be used by the Department,
7 subject to appropriation, to cover the costs of the Department
8 in administering and enforcing the provisions of this Section,
9 on behalf of the county, (ii) plus an amount that the
10 Department determines is necessary to offset any amounts that
11 were erroneously paid to a different taxing body; (iii) less an
12 amount equal to the amount of refunds made during the second
13 preceding calendar month by the Department on behalf of the
14 county; and (iv) less any amount that the Department determines
15 is necessary to offset any amounts that were payable to a
16 different taxing body but were erroneously paid to the county;
17 and (v) less any amounts that are transferred to the STAR Bonds
18 Revenue Fund. When certifying the amount of a monthly
19 disbursement to a regional superintendent of schools under this
20 Section, the Department shall increase or decrease the amounts
21 by an amount necessary to offset any miscalculation of previous
22 disbursements within the previous 6 months from the time a
23 miscalculation is discovered.
24     Within 10 days after receipt by the Comptroller from the
25 Department of the disbursement certification to the regional
26 superintendents of the schools provided for in this Section,

 

 

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1 the Comptroller shall cause the orders to be drawn for the
2 respective amounts in accordance with directions contained in
3 the certification.
4     If the Department determines that a refund should be made
5 under this Section to a claimant instead of issuing a credit
6 memorandum, then the Department shall notify the Comptroller,
7 who shall cause the order to be drawn for the amount specified
8 and to the person named in the notification from the
9 Department. The refund shall be paid by the Treasurer out of
10 the School Facility Occupation Tax Fund.
11     (e) For the purposes of determining the local governmental
12 unit whose tax is applicable, a retail sale by a producer of
13 coal or another mineral mined in Illinois is a sale at retail
14 at the place where the coal or other mineral mined in Illinois
15 is extracted from the earth. This subsection does not apply to
16 coal or another mineral when it is delivered or shipped by the
17 seller to the purchaser at a point outside Illinois so that the
18 sale is exempt under the United States Constitution as a sale
19 in interstate or foreign commerce.
20     (f) Nothing in this Section may be construed to authorize a
21 county board to impose a tax upon the privilege of engaging in
22 any business that under the Constitution of the United States
23 may not be made the subject of taxation by this State.
24     (g) If a county board imposes a tax under this Section,
25 then the board may, by ordinance, discontinue or reduce the
26 rate of the tax. If, however, a school board issues bonds that

 

 

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1 are backed by the proceeds of the tax under this Section, then
2 the county board may not reduce the tax rate or discontinue the
3 tax if that rate reduction or discontinuance would inhibit the
4 school board's ability to pay the principal and interest on
5 those bonds as they become due. If the county board reduces the
6 tax rate or discontinues the tax, then a referendum must be
7 held in accordance with subsection (c) of this Section in order
8 to increase the rate of the tax or to reimpose the discontinued
9 tax.
10     The results of any election that authorizes a proposition
11 to impose a tax under this Section or to change the rate of the
12 tax along with an ordinance imposing the tax, or any ordinance
13 that lowers the rate or discontinues the tax, must be certified
14 by the county clerk and filed with the Illinois Department of
15 Revenue either (i) on or before the first day of April,
16 whereupon the Department shall proceed to administer and
17 enforce the tax or change in the rate as of the first day of
18 July next following the filing; or (ii) on or before the first
19 day of October, whereupon the Department shall proceed to
20 administer and enforce the tax or change in the rate as of the
21 first day of January next following the filing.
22     (h) For purposes of this Section, "school facility
23 purposes" means the acquisition, development, construction,
24 reconstruction, rehabilitation, improvement, financing,
25 architectural planning, and installation of capital facilities
26 consisting of buildings, structures, and durable equipment and

 

 

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1 for the acquisition and improvement of real property and
2 interest in real property required, or expected to be required,
3 in connection with the capital facilities. "School-facility
4 purposes" also includes fire prevention, safety, energy
5 conservation, disabled accessibility, school security, and
6 specified repair purposes set forth under Section 17-2.11 of
7 the School Code.
8     (i) This Section does not apply to Cook County.
9     (j) This Section may be cited as the County School Facility
10 Occupation Tax Law.
11 (Source: P.A. 95-675, eff. 10-11-07.)
 
12     (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
13     Sec. 5-1007. Home Rule County Service Occupation Tax Law.
14 The corporate authorities of a home rule county may impose a
15 tax upon all persons engaged, in such county, in the business
16 of making sales of service at the same rate of tax imposed
17 pursuant to Section 5-1006 of the selling price of all tangible
18 personal property transferred by such servicemen either in the
19 form of tangible personal property or in the form of real
20 estate as an incident to a sale of service. If imposed, such
21 tax shall only be imposed in 1/4% increments. On and after
22 September 1, 1991, this additional tax may not be imposed on
23 the sales of food for human consumption which is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks and food which has been prepared for

 

 

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

 

 

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1 tax), 4 (except that the reference to the State shall be to the
2 taxing county), 5, 7, 8 (except that the jurisdiction to which
3 the tax shall be a debt to the extent indicated in that Section
4 8 shall be the taxing county), 9 (except as to the disposition
5 of taxes and penalties collected, and except that the returned
6 merchandise credit for this county tax may not be taken against
7 any State tax), 10, 11, 12 (except the reference therein to
8 Section 2b of the Retailers' Occupation Tax Act), 13 (except
9 that any reference to the State shall mean the taxing county),
10 the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
11 Service Occupation Tax Act and Section 3-7 of the Uniform
12 Penalty and Interest Act, as fully as if those provisions were
13 set forth herein.
14     No tax may be imposed by a home rule county pursuant to
15 this Section unless such county also imposes a tax at the same
16 rate pursuant to Section 5-1006.
17     Persons subject to any tax imposed pursuant to the
18 authority granted in this Section may reimburse themselves for
19 their serviceman's tax liability hereunder by separately
20 stating such tax as an additional charge, which charge may be
21 stated in combination, in a single amount, with State tax which
22 servicemen are authorized to collect under the Service Use Tax
23 Act, pursuant to such bracket schedules as the Department may
24 prescribe.
25     Whenever the Department determines that a refund should be
26 made under this Section to a claimant instead of issuing credit

 

 

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

 

 

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1 month by the Department on behalf of such county, and not
2 including any amounts that are transferred to the STAR Bonds
3 Revenue Fund. Within 10 days after receipt, by the Comptroller,
4 of the disbursement certification to the counties provided for
5 in this Section to be given to the Comptroller by the
6 Department, the Comptroller shall cause the orders to be drawn
7 for the respective amounts in accordance with the directions
8 contained in such certification.
9     In addition to the disbursement required by the preceding
10 paragraph, an allocation shall be made in each year to each
11 county which received more than $500,000 in disbursements under
12 the preceding paragraph in the preceding calendar year. The
13 allocation shall be in an amount equal to the average monthly
14 distribution made to each such county under the preceding
15 paragraph during the preceding calendar year (excluding the 2
16 months of highest receipts). The distribution made in March of
17 each year subsequent to the year in which an allocation was
18 made pursuant to this paragraph and the preceding paragraph
19 shall be reduced by the amount allocated and disbursed under
20 this paragraph in the preceding calendar year. The Department
21 shall prepare and certify to the Comptroller for disbursement
22 the allocations made in accordance with this paragraph.
23     Nothing in this Section shall be construed to authorize a
24 county to impose a tax upon the privilege of engaging in any
25 business which under the Constitution of the United States may
26 not be made the subject of taxation by this State.

 

 

09600SB2093ham002 - 137 - LRB096 11467 RLJ 32088 a

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

 

 

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1 copy thereof filed with the Department on or before the first
2 day of October, whereupon the Department shall proceed to
3 administer and enforce this Section as of the first day of
4 January next following the adoption and filing.
5     This Section shall be known and may be cited as the Home
6 Rule County Service Occupation Tax Law.
7 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
8     Section 70. The Illinois Municipal Code is amended by
9 changing Sections 8-4-1, 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
10 8-11-1.7, 8-11-5, and 11-74.3-6 as follows:
 
11     (65 ILCS 5/8-4-1)  (from Ch. 24, par. 8-4-1)
12     Sec. 8-4-1. No bonds shall be issued by the corporate
13 authorities of any municipality until the question of
14 authorizing such bonds has been submitted to the electors of
15 that municipality provided that notice of the bond referendum,
16 if held before July 1, 1999, has been given in accordance with
17 the provisions of Section 12-5 of the Election Code in effect
18 at the time of the bond referendum, at least 10 and not more
19 than 45 days before the date of the election, notwithstanding
20 the time for publication otherwise imposed by Section 12-5, and
21 approved by a majority of the electors voting upon that
22 question. Notices required in connection with the submission of
23 public questions on or after July 1, 1999 shall be as set forth
24 in Section 12-5 of the Election Code. The clerk shall certify

 

 

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1 the proposition of the corporate authorities to the proper
2 election authority who shall submit the question at an election
3 in accordance with the general election law, subject to the
4 notice provisions set forth in this Section.
5     Notice of any such election shall contain the amount of the
6 bond issue, purpose for which issued, and maximum rate of
7 interest.
8     However, without the submission of the question of issuing
9 bonds to the electors, the corporate authorities of any
10 municipality may authorize the issuance of any of the following
11 bonds:
12     (1) Bonds to refund any existing bonded indebtedness;
13     (2) Bonds to fund or refund any existing judgment
14 indebtedness;
15     (3) In any municipality of less than 500,000 population,
16 bonds to anticipate the collection of installments of special
17 assessments and special taxes against property owned by the
18 municipality and to anticipate the collection of the amount
19 apportioned to the municipality as public benefits under
20 Article 9;
21     (4) Bonds issued by any municipality under Sections 8-4-15
22 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1 through
23 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
24 11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
25 11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
26 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through

 

 

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1 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
2 11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
3 11-141-18 of this Code or 10-801 through 10-808 of the Illinois
4 Highway Code, as amended;
5     (5) Bonds issued by the board of education of any school
6 district under the provisions of Sections 34-30 through 34-36
7 of The School Code, as amended;
8     (6) Bonds issued by any municipality under the provisions
9 of Division 6 of this Article 8; and by any municipality under
10 the provisions of Division 7 of this Article 8; or under the
11 provisions of Sections 11-121-4 and 11-121-5;
12     (7) Bonds to pay for the purchase of voting machines by any
13 municipality that has adopted Article 24 of The Election Code,
14 approved May 11, 1943, as amended;
15     (8) Bonds issued by any municipality under Sections 15 and
16 46 of the "Environmental Protection Act", approved June 29,
17 1970;
18     (9) Bonds issued by the corporate authorities of any
19 municipality under the provisions of Section 8-4-25 of this
20 Article 8;
21     (10) Bonds issued under Section 8-4-26 of this Article 8 by
22 any municipality having a board of election commissioners;
23     (11) Bonds issued under the provisions of "An Act to
24 provide the manner of levying or imposing taxes for the
25 provision of special services to areas within the boundaries of
26 home rule units and nonhome rule municipalities and counties",

 

 

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1 approved September 21, 1973;
2     (12) Bonds issued under Section 8-5-16 of this Code;
3     (13) Bonds to finance the cost of the acquisition,
4 construction or improvement of water or wastewater treatment
5 facilities mandated by an enforceable compliance schedule
6 developed in connection with the federal Clean Water Act or a
7 compliance order issued by the United States Environmental
8 Protection Agency or the Illinois Pollution Control Board;
9 provided that such bonds are authorized by an ordinance adopted
10 by a three-fifths majority of the corporate authorities of the
11 municipality issuing the bonds which ordinance shall specify
12 that the construction or improvement of such facilities is
13 necessary to alleviate an emergency condition in such
14 municipality;
15     (14) Bonds issued by any municipality pursuant to Section
16 11-113.1-1;
17     (15) Bonds issued under Sections 11-74.6-1 through
18 11-74.6-45, the Industrial Jobs Recovery Law of this Code.
19     (16) Bonds issued under the STAR Bond Financing Act, except
20 as may be required by Section 35 of that Act.
21 (Source: P.A. 90-706, eff. 8-7-98; 90-812, eff. 1-26-99; 91-57,
22 eff. 6-30-99.)
 
23     (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
24     Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
25 Act. The corporate authorities of a home rule municipality may

 

 

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1 impose a tax upon all persons engaged in the business of
2 selling tangible personal property, other than an item of
3 tangible personal property titled or registered with an agency
4 of this State's government, at retail in the municipality on
5 the gross receipts from these sales made in the course of such
6 business. If imposed, the tax shall only be imposed in 1/4%
7 increments. On and after September 1, 1991, this additional tax
8 may not be imposed on the sales of food for human consumption
9 that is to be consumed off the premises where it is sold (other
10 than alcoholic beverages, soft drinks and food that has been
11 prepared for immediate consumption) and prescription and
12 nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used by
14 diabetics. The tax imposed by a home rule municipality under
15 this Section and all civil penalties that may be assessed as an
16 incident of the tax shall be collected and enforced by the
17 State Department of Revenue. The certificate of registration
18 that is issued by the Department to a retailer under the
19 Retailers' Occupation Tax Act shall permit the retailer to
20 engage in a business that is taxable under any ordinance or
21 resolution enacted pursuant to this Section without
22 registering separately with the Department under such
23 ordinance or resolution or under this Section. The Department
24 shall have full power to administer and enforce this Section;
25 to collect all taxes and penalties due hereunder; to dispose of
26 taxes and penalties so collected in the manner hereinafter

 

 

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1 provided; and to determine all rights to credit memoranda
2 arising on account of the erroneous payment of tax or penalty
3 hereunder. In the administration of, and compliance with, this
4 Section the Department and persons who are subject to this
5 Section shall have the same rights, remedies, privileges,
6 immunities, powers and duties, and be subject to the same
7 conditions, restrictions, limitations, penalties and
8 definitions of terms, and employ the same modes of procedure,
9 as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
10 1m, 1n, 2 through 2-65 (in respect to all provisions therein
11 other than the State rate of tax), 2c, 3 (except as to the
12 disposition of taxes and penalties collected), 4, 5, 5a, 5b,
13 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9,
14 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
15 Section 3-7 of the Uniform Penalty and Interest Act, as fully
16 as if those provisions were set forth herein.
17     No tax may be imposed by a home rule municipality under
18 this Section unless the municipality also imposes a tax at the
19 same rate under Section 8-11-5 of this Act.
20     Persons subject to any tax imposed under the authority
21 granted in this Section may reimburse themselves for their
22 seller's tax liability hereunder by separately stating that tax
23 as an additional charge, which charge may be stated in
24 combination, in a single amount, with State tax which sellers
25 are required to collect under the Use Tax Act, pursuant to such
26 bracket schedules as the Department may prescribe.

 

 

09600SB2093ham002 - 144 - LRB096 11467 RLJ 32088 a

1     Whenever the Department determines that a refund should be
2 made under this Section to a claimant instead of issuing a
3 credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause the order to be drawn for the
5 amount specified and to the person named in the notification
6 from the Department. The refund shall be paid by the State
7 Treasurer out of the home rule municipal retailers' occupation
8 tax fund.
9     The Department shall immediately pay over to the State
10 Treasurer, ex officio, as trustee, all taxes and penalties
11 collected hereunder.
12     As soon as possible after the first day of each month,
13 beginning January 1, 2011, upon certification of the Department
14 of Revenue, the Comptroller shall order transferred, and the
15 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16 local sales tax increment, as defined in the STAR Bonds
17 Financing Act, collected under this Section during the second
18 preceding calendar month for sales within a STAR bond district.
19     After the monthly transfer to the STAR Bonds Revenue Fund,
20 on On or before the 25th day of each calendar month, the
21 Department shall prepare and certify to the Comptroller the
22 disbursement of stated sums of money to named municipalities,
23 the municipalities to be those from which retailers have paid
24 taxes or penalties hereunder to the Department during the
25 second preceding calendar month. The amount to be paid to each
26 municipality shall be the amount (not including credit

 

 

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1 memoranda) collected hereunder during the second preceding
2 calendar month by the Department plus an amount the Department
3 determines is necessary to offset any amounts that were
4 erroneously paid to a different taxing body, and not including
5 an amount equal to the amount of refunds made during the second
6 preceding calendar month by the Department on behalf of such
7 municipality, and not including any amount that the Department
8 determines is necessary to offset any amounts that were payable
9 to a different taxing body but were erroneously paid to the
10 municipality, and not including any amounts that are
11 transferred to the STAR Bonds Revenue Fund. Within 10 days
12 after receipt by the Comptroller of the disbursement
13 certification to the municipalities provided for in this
14 Section to be given to the Comptroller by the Department, the
15 Comptroller shall cause the orders to be drawn for the
16 respective amounts in accordance with the directions contained
17 in the certification.
18     In addition to the disbursement required by the preceding
19 paragraph and in order to mitigate delays caused by
20 distribution procedures, an allocation shall, if requested, be
21 made within 10 days after January 14, 1991, and in November of
22 1991 and each year thereafter, to each municipality that
23 received more than $500,000 during the preceding fiscal year,
24 (July 1 through June 30) whether collected by the municipality
25 or disbursed by the Department as required by this Section.
26 Within 10 days after January 14, 1991, participating

 

 

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1 municipalities shall notify the Department in writing of their
2 intent to participate. In addition, for the initial
3 distribution, participating municipalities shall certify to
4 the Department the amounts collected by the municipality for
5 each month under its home rule occupation and service
6 occupation tax during the period July 1, 1989 through June 30,
7 1990. The allocation within 10 days after January 14, 1991,
8 shall be in an amount equal to the monthly average of these
9 amounts, excluding the 2 months of highest receipts. The
10 monthly average for the period of July 1, 1990 through June 30,
11 1991 will be determined as follows: the amounts collected by
12 the municipality under its home rule occupation and service
13 occupation tax during the period of July 1, 1990 through
14 September 30, 1990, plus amounts collected by the Department
15 and paid to such municipality through June 30, 1991, excluding
16 the 2 months of highest receipts. The monthly average for each
17 subsequent period of July 1 through June 30 shall be an amount
18 equal to the monthly distribution made to each such
19 municipality under the preceding paragraph during this period,
20 excluding the 2 months of highest receipts. The distribution
21 made in November 1991 and each year thereafter under this
22 paragraph and the preceding paragraph shall be reduced by the
23 amount allocated and disbursed under this paragraph in the
24 preceding period of July 1 through June 30. The Department
25 shall prepare and certify to the Comptroller for disbursement
26 the allocations made in accordance with this paragraph.

 

 

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1     For the purpose of determining the local governmental unit
2 whose tax is applicable, a retail sale by a producer of coal or
3 other mineral mined in Illinois is a sale at retail at the
4 place where the coal or other mineral mined in Illinois is
5 extracted from the earth. This paragraph does not apply to coal
6 or other mineral when it is delivered or shipped by the seller
7 to the purchaser at a point outside Illinois so that the sale
8 is exempt under the United States Constitution as a sale in
9 interstate or foreign commerce.
10     Nothing in this Section shall be construed to authorize a
11 municipality to impose a tax upon the privilege of engaging in
12 any business which under the Constitution of the United States
13 may not be made the subject of taxation by this State.
14     An ordinance or resolution imposing or discontinuing a tax
15 hereunder or effecting a change in the rate thereof shall be
16 adopted and a certified copy thereof filed with the Department
17 on or before the first day of June, whereupon the Department
18 shall proceed to administer and enforce this Section as of the
19 first day of September next following the adoption and filing.
20 Beginning January 1, 1992, an ordinance or resolution imposing
21 or discontinuing the tax hereunder or effecting a change in the
22 rate thereof shall be adopted and a certified copy thereof
23 filed with the Department on or before the first day of July,
24 whereupon the Department shall proceed to administer and
25 enforce this Section as of the first day of October next
26 following such adoption and filing. Beginning January 1, 1993,

 

 

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

 

 

09600SB2093ham002 - 149 - LRB096 11467 RLJ 32088 a

1 or decrease the amount by an amount necessary to offset any
2 misallocation of previous disbursements. The offset amount
3 shall be the amount erroneously disbursed within the previous 6
4 months from the time a misallocation is discovered.
5     Any unobligated balance remaining in the Municipal
6 Retailers' Occupation Tax Fund on December 31, 1989, which fund
7 was abolished by Public Act 85-1135, and all receipts of
8 municipal tax as a result of audits of liability periods prior
9 to January 1, 1990, shall be paid into the Local Government Tax
10 Fund for distribution as provided by this Section prior to the
11 enactment of Public Act 85-1135. All receipts of municipal tax
12 as a result of an assessment not arising from an audit, for
13 liability periods prior to January 1, 1990, shall be paid into
14 the Local Government Tax Fund for distribution before July 1,
15 1990, as provided by this Section prior to the enactment of
16 Public Act 85-1135; and on and after July 1, 1990, all such
17 receipts shall be distributed as provided in Section 6z-18 of
18 the State Finance Act.
19     As used in this Section, "municipal" and "municipality"
20 means a city, village or incorporated town, including an
21 incorporated town that has superseded a civil township.
22     This Section shall be known and may be cited as the Home
23 Rule Municipal Retailers' Occupation Tax Act.
24 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
25     (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)

 

 

09600SB2093ham002 - 150 - LRB096 11467 RLJ 32088 a

1     Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
2 Occupation Tax Act. The corporate authorities of a non-home
3 rule municipality may impose a tax upon all persons engaged in
4 the business of selling tangible personal property, other than
5 on an item of tangible personal property which is titled and
6 registered by an agency of this State's Government, at retail
7 in the municipality for expenditure on public infrastructure or
8 for property tax relief or both as defined in Section 8-11-1.2
9 if approved by referendum as provided in Section 8-11-1.1, of
10 the gross receipts from such sales made in the course of such
11 business. The tax imposed may not be more than 1% and may be
12 imposed only in 1/4% increments. The tax may not be imposed on
13 the sale of food for human consumption that is to be consumed
14 off the premises where it is sold (other than alcoholic
15 beverages, soft drinks, and food that has been prepared for
16 immediate consumption) and prescription and nonprescription
17 medicines, drugs, medical appliances, and insulin, urine
18 testing materials, syringes, and needles used by diabetics. The
19 tax imposed by a municipality pursuant to this Section and all
20 civil penalties that may be assessed as an incident thereof
21 shall be collected and enforced by the State Department of
22 Revenue. The certificate of registration which is issued by the
23 Department to a retailer under the Retailers' Occupation Tax
24 Act shall permit such retailer to engage in a business which is
25 taxable under any ordinance or resolution enacted pursuant to
26 this Section without registering separately with the

 

 

09600SB2093ham002 - 151 - LRB096 11467 RLJ 32088 a

1 Department under such ordinance or resolution or under this
2 Section. The Department shall have full power to administer and
3 enforce this Section; to collect all taxes and penalties due
4 hereunder; to dispose of taxes and penalties so collected in
5 the manner hereinafter provided, and to determine all rights to
6 credit memoranda, arising on account of the erroneous payment
7 of tax or penalty hereunder. In the administration of, and
8 compliance with, this Section, the Department and persons who
9 are subject to this Section shall have the same rights,
10 remedies, privileges, immunities, powers and duties, and be
11 subject to the same conditions, restrictions, limitations,
12 penalties and definitions of terms, and employ the same modes
13 of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
14 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
15 therein other than the State rate of tax), 2c, 3 (except as to
16 the disposition of taxes and penalties collected), 4, 5, 5a,
17 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
18 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
19 Section 3-7 of the Uniform Penalty and Interest Act as fully as
20 if those provisions were set forth herein.
21     No municipality may impose a tax under this Section unless
22 the municipality also imposes a tax at the same rate under
23 Section 8-11-1.4 of this Code.
24     Persons subject to any tax imposed pursuant to the
25 authority granted in this Section may reimburse themselves for
26 their seller's tax liability hereunder by separately stating

 

 

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

 

 

09600SB2093ham002 - 153 - LRB096 11467 RLJ 32088 a

1 the municipalities to be those from which retailers have paid
2 taxes or penalties hereunder to the Department during the
3 second preceding calendar month. The amount to be paid to each
4 municipality shall be the amount (not including credit
5 memoranda) collected hereunder during the second preceding
6 calendar month by the Department plus an amount the Department
7 determines is necessary to offset any amounts which were
8 erroneously paid to a different taxing body, and not including
9 an amount equal to the amount of refunds made during the second
10 preceding calendar month by the Department on behalf of such
11 municipality, and not including any amount which the Department
12 determines is necessary to offset any amounts which were
13 payable to a different taxing body but were erroneously paid to
14 the municipality, and not including any amounts that are
15 transferred to the STAR Bonds Revenue Fund. Within 10 days
16 after receipt, by the Comptroller, of the disbursement
17 certification to the municipalities, provided for in this
18 Section to be given to the Comptroller by the Department, the
19 Comptroller shall cause the orders to be drawn for the
20 respective amounts in accordance with the directions contained
21 in such certification.
22     For the purpose of determining the local governmental unit
23 whose tax is applicable, a retail sale, by a producer of coal
24 or other mineral mined in Illinois, is a sale at retail at the
25 place where the coal or other mineral mined in Illinois is
26 extracted from the earth. This paragraph does not apply to coal

 

 

09600SB2093ham002 - 154 - LRB096 11467 RLJ 32088 a

1 or other mineral when it is delivered or shipped by the seller
2 to the purchaser at a point outside Illinois so that the sale
3 is exempt under the Federal Constitution as a sale in
4 interstate or foreign commerce.
5     Nothing in this Section shall be construed to authorize a
6 municipality to impose a tax upon the privilege of engaging in
7 any business which under the constitution of the United States
8 may not be made the subject of taxation by this State.
9     When certifying the amount of a monthly disbursement to a
10 municipality under this Section, the Department shall increase
11 or decrease such amount by an amount necessary to offset any
12 misallocation of previous disbursements. The offset amount
13 shall be the amount erroneously disbursed within the previous 6
14 months from the time a misallocation is discovered.
15     The Department of Revenue shall implement this amendatory
16 Act of the 91st General Assembly so as to collect the tax on
17 and after January 1, 2002.
18     As used in this Section, "municipal" and "municipality"
19 means a city, village or incorporated town, including an
20 incorporated town which has superseded a civil township.
21     This Section shall be known and may be cited as the
22 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
23 (Source: P.A. 94-679, eff. 1-1-06.)
 
24     (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
25     Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation

 

 

09600SB2093ham002 - 155 - LRB096 11467 RLJ 32088 a

1 Tax Act. The corporate authorities of a non-home rule
2 municipality may impose a tax upon all persons engaged, in such
3 municipality, in the business of making sales of service for
4 expenditure on public infrastructure or for property tax relief
5 or both as defined in Section 8-11-1.2 if approved by
6 referendum as provided in Section 8-11-1.1, of the selling
7 price of all tangible personal property transferred by such
8 servicemen either in the form of tangible personal property or
9 in the form of real estate as an incident to a sale of service.
10 The tax imposed may not be more than 1% and may be imposed only
11 in 1/4% increments. The tax may not be imposed on the sale of
12 food for human consumption that is to be consumed off the
13 premises where it is sold (other than alcoholic beverages, soft
14 drinks, and food that has been prepared for immediate
15 consumption) and prescription and nonprescription medicines,
16 drugs, medical appliances, and insulin, urine testing
17 materials, syringes, and needles used by diabetics. The tax
18 imposed by a municipality pursuant to this Section and all
19 civil penalties that may be assessed as an incident thereof
20 shall be collected and enforced by the State Department of
21 Revenue. The certificate of registration which is issued by the
22 Department to a retailer under the Retailers' Occupation Tax
23 Act or under the Service Occupation Tax Act shall permit such
24 registrant to engage in a business which is taxable under any
25 ordinance or resolution enacted pursuant to this Section
26 without registering separately with the Department under such

 

 

09600SB2093ham002 - 156 - LRB096 11467 RLJ 32088 a

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

 

 

09600SB2093ham002 - 157 - LRB096 11467 RLJ 32088 a

1 as if those provisions were set forth herein.
2     No municipality may impose a tax under this Section unless
3 the municipality also imposes a tax at the same rate under
4 Section 8-11-1.3 of this Code.
5     Persons subject to any tax imposed pursuant to the
6 authority granted in this Section may reimburse themselves for
7 their serviceman's tax liability hereunder by separately
8 stating such tax as an additional charge, which charge may be
9 stated in combination, in a single amount, with State tax which
10 servicemen are authorized to collect under the Service Use Tax
11 Act, pursuant to such bracket schedules as the Department may
12 prescribe.
13     Whenever the Department determines that a refund should be
14 made under this Section to a claimant instead of issuing credit
15 memorandum, the Department shall notify the State Comptroller,
16 who shall cause the order to be drawn for the amount specified,
17 and to the person named, in such notification from the
18 Department. Such refund shall be paid by the State Treasurer
19 out of the municipal retailers' occupation tax fund.
20     The Department shall forthwith pay over to the State
21 Treasurer, ex officio, as trustee, all taxes and penalties
22 collected hereunder.
23     As soon as possible after the first day of each month,
24 beginning January 1, 2011, upon certification of the Department
25 of Revenue, the Comptroller shall order transferred, and the
26 Treasurer shall transfer, to the STAR Bonds Revenue Fund the

 

 

09600SB2093ham002 - 158 - LRB096 11467 RLJ 32088 a

1 local sales tax increment, as defined in the STAR Bonds
2 Financing Act, collected under this Section during the second
3 preceding calendar month for sales within a STAR bond district.
4     After the monthly transfer to the STAR Bonds Revenue Fund,
5 on On or before the 25th day of each calendar month, the
6 Department shall prepare and certify to the Comptroller the
7 disbursement of stated sums of money to named municipalities,
8 the municipalities to be those from which suppliers and
9 servicemen have paid taxes or penalties hereunder to the
10 Department during the second preceding calendar month. The
11 amount to be paid to each municipality shall be the amount (not
12 including credit memoranda) collected hereunder during the
13 second preceding calendar month by the Department, and not
14 including an amount equal to the amount of refunds made during
15 the second preceding calendar month by the Department on behalf
16 of such municipality, and not including any amounts that are
17 transferred to the STAR Bonds Revenue Fund. Within 10 days
18 after receipt, by the Comptroller, of the disbursement
19 certification to the municipalities and the General Revenue
20 Fund, provided for in this Section to be given to the
21 Comptroller by the Department, the Comptroller shall cause the
22 orders to be drawn for the respective amounts in accordance
23 with the directions contained in such certification.
24     The Department of Revenue shall implement this amendatory
25 Act of the 91st General Assembly so as to collect the tax on
26 and after January 1, 2002.

 

 

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1     Nothing in this Section shall be construed to authorize a
2 municipality to impose a tax upon the privilege of engaging in
3 any business which under the constitution of the United States
4 may not be made the subject of taxation by this State.
5     As used in this Section, "municipal" or "municipality"
6 means or refers to a city, village or incorporated town,
7 including an incorporated town which has superseded a civil
8 township.
9     This Section shall be known and may be cited as the
10 "Non-Home Rule Municipal Service Occupation Tax Act".
11 (Source: P.A. 94-679, eff. 1-1-06.)
 
12     (65 ILCS 5/8-11-1.6)
13     Sec. 8-11-1.6. Non-home rule municipal retailers
14 occupation tax; municipalities between 20,000 and 25,000. The
15 corporate authorities of a non-home rule municipality with a
16 population of more than 20,000 but less than 25,000 that has,
17 prior to January 1, 1987, established a Redevelopment Project
18 Area that has been certified as a State Sales Tax Boundary and
19 has issued bonds or otherwise incurred indebtedness to pay for
20 costs in excess of $5,000,000, which is secured in part by a
21 tax increment allocation fund, in accordance with the
22 provisions of Division 11-74.4 of this Code may, by passage of
23 an ordinance, impose a tax upon all persons engaged in the
24 business of selling tangible personal property, other than on
25 an item of tangible personal property that is titled and

 

 

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1 registered by an agency of this State's Government, at retail
2 in the municipality. This tax may not be imposed on the sales
3 of food for human consumption that is to be consumed off the
4 premises where it is sold (other than alcoholic beverages, soft
5 drinks, and food that has been prepared for immediate
6 consumption) and prescription and nonprescription medicines,
7 drugs, medical appliances and insulin, urine testing
8 materials, syringes, and needles used by diabetics. If imposed,
9 the tax shall only be imposed in .25% increments of the gross
10 receipts from such sales made in the course of business. Any
11 tax imposed by a municipality under this Sec. and all civil
12 penalties that may be assessed as an incident thereof shall be
13 collected and enforced by the State Department of Revenue. An
14 ordinance imposing a tax hereunder or effecting a change in the
15 rate thereof shall be adopted and a certified copy thereof
16 filed with the Department on or before the first day of
17 October, whereupon the Department shall proceed to administer
18 and enforce this Section as of the first day of January next
19 following such adoption and filing. The certificate of
20 registration that is issued by the Department to a retailer
21 under the Retailers' Occupation Tax Act shall permit the
22 retailer to engage in a business that is taxable under any
23 ordinance or resolution enacted under this Section without
24 registering separately with the Department under the ordinance
25 or resolution or under this Section. The Department shall have
26 full power to administer and enforce this Section, to collect

 

 

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1 all taxes and penalties due hereunder, to dispose of taxes and
2 penalties so collected in the manner hereinafter provided, and
3 to determine all rights to credit memoranda, arising on account
4 of the erroneous payment of tax or penalty hereunder. In the
5 administration of, and compliance with this Section, the
6 Department and persons who are subject to this Section shall
7 have the same rights, remedies, privileges, immunities,
8 powers, and duties, and be subject to the same conditions,
9 restrictions, limitations, penalties, and definitions of
10 terms, and employ the same modes of procedure, as are
11 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
12 through 2-65 (in respect to all provisions therein other than
13 the State rate of tax), 2c, 3 (except as to the disposition of
14 taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
15 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and
16 13 of the Retailers' Occupation Tax Act and Section 3-7 of the
17 Uniform Penalty and Interest Act as fully as if those
18 provisions were set forth herein.
19     A tax may not be imposed by a municipality under this
20 Section unless the municipality also imposes a tax at the same
21 rate under Section 8-11-1.7 of this Act.
22     Persons subject to any tax imposed under the authority
23 granted in this Section, may reimburse themselves for their
24 seller's tax liability hereunder by separately stating the tax
25 as an additional charge, which charge may be stated in
26 combination, in a single amount, with State tax which sellers

 

 

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

 

 

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

 

 

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1 is exempt under the federal Constitution as a sale in
2 interstate or foreign commerce.
3     Nothing in this Section shall be construed to authorize a
4 municipality to impose a tax upon the privilege of engaging in
5 any business which under the constitution of the United States
6 may not be made the subject of taxation by this State.
7     When certifying the amount of a monthly disbursement to a
8 municipality under this Section, the Department shall increase
9 or decrease the amount by an amount necessary to offset any
10 misallocation of previous disbursements. The offset amount
11 shall be the amount erroneously disbursed within the previous 6
12 months from the time a misallocation is discovered.
13     As used in this Section, "municipal" and "municipality"
14 means a city, village, or incorporated town, including an
15 incorporated town that has superseded a civil township.
16 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
 
17     (65 ILCS 5/8-11-1.7)
18     Sec. 8-11-1.7. Non-home rule municipal service occupation
19 tax; municipalities between 20,000 and 25,000. The corporate
20 authorities of a non-home rule municipality with a population
21 of more than 20,000 but less than 25,000 as determined by the
22 last preceding decennial census that has, prior to January 1,
23 1987, established a Redevelopment Project Area that has been
24 certified as a State Sales Tax Boundary and has issued bonds or
25 otherwise incurred indebtedness to pay for costs in excess of

 

 

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1 $5,000,000, which is secured in part by a tax increment
2 allocation fund, in accordance with the provisions of Division
3 11-74.7 of this Code may, by passage of an ordinance, impose a
4 tax upon all persons engaged in the municipality in the
5 business of making sales of service. If imposed, the tax shall
6 only be imposed in .25% increments of the selling price of all
7 tangible personal property transferred by such servicemen
8 either in the form of tangible personal property or in the form
9 of real estate as an incident to a sale of service. This tax
10 may not be imposed on the sales of food for human consumption
11 that is to be consumed off the premises where it is sold (other
12 than alcoholic beverages, soft drinks, and food that has been
13 prepared for immediate consumption) and prescription and
14 nonprescription medicines, drugs, medical appliances and
15 insulin, urine testing materials, syringes, and needles used by
16 diabetics. The tax imposed by a municipality under this Sec.
17 and all civil penalties that may be assessed as an incident
18 thereof shall be collected and enforced by the State Department
19 of Revenue. An ordinance imposing a tax hereunder or effecting
20 a change in the rate thereof shall be adopted and a certified
21 copy thereof filed with the Department on or before the first
22 day of October, whereupon the Department shall proceed to
23 administer and enforce this Section as of the first day of
24 January next following such adoption and filing. The
25 certificate of registration that is issued by the Department to
26 a retailer under the Retailers' Occupation Tax Act or under the

 

 

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1 Service Occupation Tax Act shall permit the registrant to
2 engage in a business that is taxable under any ordinance or
3 resolution enacted under this Section without registering
4 separately with the Department under the ordinance or
5 resolution or under this Section. The Department shall have
6 full power to administer and enforce this Section, to collect
7 all taxes and penalties due hereunder, to dispose of taxes and
8 penalties so collected in a manner hereinafter provided, and to
9 determine all rights to credit memoranda arising on account of
10 the erroneous payment of tax or penalty hereunder. In the
11 administration of and compliance with this Section, the
12 Department and persons who are subject to this Section shall
13 have the same rights, remedies, privileges, immunities,
14 powers, and duties, and be subject to the same conditions,
15 restrictions, limitations, penalties and definitions of terms,
16 and employ the same modes of procedure, as are prescribed in
17 Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
18 provisions therein other than the State rate of tax), 4 (except
19 that the reference to the State shall be to the taxing
20 municipality), 5, 7, 8 (except that the jurisdiction to which
21 the tax shall be a debt to the extent indicated in that Section
22 8 shall be the taxing municipality), 9 (except as to the
23 disposition of taxes and penalties collected, and except that
24 the returned merchandise credit for this municipal tax may not
25 be taken against any State tax), 10, 11, 12, (except the
26 reference therein to Section 2b of the Retailers' Occupation

 

 

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

 

 

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1 beginning January 1, 2011, upon certification of the Department
2 of Revenue, the Comptroller shall order transferred, and the
3 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
4 local sales tax increment, as defined in the STAR Bonds
5 Financing Act, collected under this Section during the second
6 preceding calendar month for sales within a STAR bond district.
7     After the monthly transfer to the STAR Bonds Revenue Fund,
8 on On or before the 25th day of each calendar month, the
9 Department shall prepare and certify to the Comptroller the
10 disbursement of stated sums of money to named municipalities,
11 the municipalities to be those from which suppliers and
12 servicemen have paid taxes or penalties hereunder to the
13 Department during the second preceding calendar month. The
14 amount to be paid to each municipality shall be the amount (not
15 including credit memoranda) collected hereunder during the
16 second preceding calendar month by the Department, and not
17 including an amount equal to the amount of refunds made during
18 the second preceding calendar month by the Department on behalf
19 of such municipality, and not including any amounts that are
20 transferred to the STAR Bonds Revenue Fund. Within 10 days
21 after receipt by the Comptroller of the disbursement
22 certification to the municipalities and the General Revenue
23 Fund, provided for in this Section to be given to the
24 Comptroller by the Department, the Comptroller shall cause the
25 orders to be drawn for the respective amounts in accordance
26 with the directions contained in the certification.

 

 

09600SB2093ham002 - 169 - LRB096 11467 RLJ 32088 a

1     When certifying the amount of a monthly disbursement to a
2 municipality under this Section, the Department shall increase
3 or decrease the amount by an amount necessary to offset any
4 misallocation of previous disbursements. The offset amount
5 shall be the amount erroneously disbursed within the previous 6
6 months from the time a misallocation is discovered.
7     Nothing in this Section shall be construed to authorize a
8 municipality to impose a tax upon the privilege of engaging in
9 any business which under the constitution of the United States
10 may not be made the subject of taxation by this State.
11 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
 
12     (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
13     Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
14 Act. The corporate authorities of a home rule municipality may
15 impose a tax upon all persons engaged, in such municipality, in
16 the business of making sales of service at the same rate of tax
17 imposed pursuant to Section 8-11-1, of the selling price of all
18 tangible personal property transferred by such servicemen
19 either in the form of tangible personal property or in the form
20 of real estate as an incident to a sale of service. If imposed,
21 such tax shall only be imposed in 1/4% increments. On and after
22 September 1, 1991, this additional tax may not be imposed on
23 the sales of food for human consumption which is to be consumed
24 off the premises where it is sold (other than alcoholic
25 beverages, soft drinks and food which has been prepared for

 

 

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

 

 

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1 the State rate of tax), 4 (except that the reference to the
2 State shall be to the taxing municipality), 5, 7, 8 (except
3 that the jurisdiction to which the tax shall be a debt to the
4 extent indicated in that Section 8 shall be the taxing
5 municipality), 9 (except as to the disposition of taxes and
6 penalties collected, and except that the returned merchandise
7 credit for this municipal tax may not be taken against any
8 State tax), 10, 11, 12 (except the reference therein to Section
9 2b of the Retailers' Occupation Tax Act), 13 (except that any
10 reference to the State shall mean the taxing municipality), the
11 first paragraph of Section 15, 16, 17 (except that credit
12 memoranda issued hereunder may not be used to discharge any
13 State tax liability), 18, 19 and 20 of the Service Occupation
14 Tax Act and Section 3-7 of the Uniform Penalty and Interest
15 Act, as fully as if those provisions were set forth herein.
16     No tax may be imposed by a home rule municipality pursuant
17 to this Section unless such municipality also imposes a tax at
18 the same rate pursuant to Section 8-11-1 of this Act.
19     Persons subject to any tax imposed pursuant to the
20 authority granted in this Section may reimburse themselves for
21 their serviceman's tax liability hereunder by separately
22 stating such tax as an additional charge, which charge may be
23 stated in combination, in a single amount, with State tax which
24 servicemen are authorized to collect under the Service Use Tax
25 Act, pursuant to such bracket schedules as the Department may
26 prescribe.

 

 

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1     Whenever the Department determines that a refund should be
2 made under this Section to a claimant instead of issuing credit
3 memorandum, the Department shall notify the State Comptroller,
4 who shall cause the order to be drawn for the amount specified,
5 and to the person named, in such notification from the
6 Department. Such refund shall be paid by the State Treasurer
7 out of the home rule municipal retailers' occupation tax fund.
8     The Department shall forthwith pay over to the State
9 Treasurer, ex-officio, as trustee, all taxes and penalties
10 collected hereunder.
11     As soon as possible after the first day of each month,
12 beginning January 1, 2011, upon certification of the Department
13 of Revenue, the Comptroller shall order transferred, and the
14 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
15 local sales tax increment, as defined in the STAR Bonds
16 Financing Act, collected under this Section during the second
17 preceding calendar month for sales within a STAR bond district.
18     After the monthly transfer to the STAR Bonds Revenue Fund,
19 on On or before the 25th day of each calendar month, the
20 Department shall prepare and certify to the Comptroller the
21 disbursement of stated sums of money to named municipalities,
22 the municipalities to be those from which suppliers and
23 servicemen have paid taxes or penalties hereunder to the
24 Department during the second preceding calendar month. The
25 amount to be paid to each municipality shall be the amount (not
26 including credit memoranda) collected hereunder during the

 

 

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1 second preceding calendar month by the Department, and not
2 including an amount equal to the amount of refunds made during
3 the second preceding calendar month by the Department on behalf
4 of such municipality, and not including any amounts that are
5 transferred to the STAR Bonds Revenue Fund. Within 10 days
6 after receipt, by the Comptroller, of the disbursement
7 certification to the municipalities, provided for in this
8 Section to be given to the Comptroller by the Department, the
9 Comptroller shall cause the orders to be drawn for the
10 respective amounts in accordance with the directions contained
11 in such certification.
12     In addition to the disbursement required by the preceding
13 paragraph and in order to mitigate delays caused by
14 distribution procedures, an allocation shall, if requested, be
15 made within 10 days after January 14, 1991, and in November of
16 1991 and each year thereafter, to each municipality that
17 received more than $500,000 during the preceding fiscal year,
18 (July 1 through June 30) whether collected by the municipality
19 or disbursed by the Department as required by this Section.
20 Within 10 days after January 14, 1991, participating
21 municipalities shall notify the Department in writing of their
22 intent to participate. In addition, for the initial
23 distribution, participating municipalities shall certify to
24 the Department the amounts collected by the municipality for
25 each month under its home rule occupation and service
26 occupation tax during the period July 1, 1989 through June 30,

 

 

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

 

 

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

 

 

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

 

 

09600SB2093ham002 - 177 - LRB096 11467 RLJ 32088 a

1     This Section shall be known and may be cited as the Home
2 Rule Municipal Service Occupation Tax Act.
3 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
4     (65 ILCS 5/11-74.3-6)
5     Sec. 11-74.3-6. Business district revenue and obligations.
6     (a) If the corporate authorities of a municipality have
7 approved a business district development or redevelopment plan
8 and have elected to impose a tax by ordinance pursuant to
9 subsections (b), (c), or (d) of this Section, each year after
10 the date of the approval of the ordinance and until all
11 business district project costs and all municipal obligations
12 financing the business district project costs, if any, have
13 been paid in accordance with the business district development
14 or redevelopment plan, but in no event longer than 23 years
15 after the date of adoption of the ordinance approving the
16 business district development or redevelopment plan, all
17 amounts generated by the retailers' occupation tax and service
18 occupation tax shall be collected and the tax shall be enforced
19 by the Department of Revenue in the same manner as all
20 retailers' occupation taxes and service occupation taxes
21 imposed in the municipality imposing the tax and all amounts
22 generated by the hotel operators' occupation tax shall be
23 collected and the tax shall be enforced by the municipality in
24 the same manner as all hotel operators' occupation taxes
25 imposed in the municipality imposing the tax. The corporate

 

 

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1 authorities of the municipality shall deposit the proceeds of
2 the taxes imposed under subsections (b), (c), and (d) into a
3 special fund held by the corporate authorities of the
4 municipality called the Business District Tax Allocation Fund
5 for the purpose of paying business district project costs and
6 obligations incurred in the payment of those costs.
7     (b) The corporate authorities of a municipality that has
8 established a business district under this Division 74.3 may,
9 by ordinance or resolution, impose a Business District
10 Retailers' Occupation Tax upon all persons engaged in the
11 business of selling tangible personal property, other than an
12 item of tangible personal property titled or registered with an
13 agency of this State's government, at retail in the business
14 district at a rate not to exceed 1% of the gross receipts from
15 the sales made in the course of such business, to be imposed
16 only in 0.25% increments. The tax may not be imposed on food
17 for human consumption that is to be consumed off the premises
18 where it is sold (other than alcoholic beverages, soft drinks,
19 and food that has been prepared for immediate consumption),
20 prescription and nonprescription medicines, drugs, medical
21 appliances, modifications to a motor vehicle for the purpose of
22 rendering it usable by a disabled person, and insulin, urine
23 testing materials, syringes, and needles used by diabetics, for
24 human use.
25     The tax imposed under this subsection and all civil
26 penalties that may be assessed as an incident thereof shall be

 

 

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1 collected and enforced by the Department of Revenue. The
2 certificate of registration that is issued by the Department to
3 a retailer under the Retailers' Occupation Tax Act shall permit
4 the retailer to engage in a business that is taxable under any
5 ordinance or resolution enacted pursuant to this subsection
6 without registering separately with the Department under such
7 ordinance or resolution or under this subsection. The
8 Department of Revenue shall have full power to administer and
9 enforce this subsection; to collect all taxes and penalties due
10 under this subsection in the manner hereinafter provided; and
11 to determine all rights to credit memoranda arising on account
12 of the erroneous payment of tax or penalty under this
13 subsection. In the administration of, and compliance with, this
14 subsection, the Department and persons who are subject to this
15 subsection shall have the same rights, remedies, privileges,
16 immunities, powers and duties, and be subject to the same
17 conditions, restrictions, limitations, penalties, exclusions,
18 exemptions, and definitions of terms and employ the same modes
19 of procedure, as are prescribed in Sections 1, 1a through 1o, 2
20 through 2-65 (in respect to all provisions therein other than
21 the State rate of tax), 2c through 2h, 3 (except as to the
22 disposition of taxes and penalties collected), 4, 5, 5a, 5c,
23 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
24 12, 13, and 14 of the Retailers' Occupation Tax Act and all
25 provisions of the Uniform Penalty and Interest Act, as fully as
26 if those provisions were set forth herein.

 

 

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

 

 

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1 district.
2     After the monthly transfer to the STAR Bonds Revenue Fund,
3 on On or before the 25th day of each calendar month, the
4 Department shall prepare and certify to the Comptroller the
5 disbursement of stated sums of money to named municipalities
6 from the business district retailers' occupation tax fund, the
7 municipalities to be those from which retailers have paid taxes
8 or penalties under this subsection to the Department during the
9 second preceding calendar month. The amount to be paid to each
10 municipality shall be the amount (not including credit
11 memoranda) collected under this subsection during the second
12 preceding calendar month by the Department plus an amount the
13 Department determines is necessary to offset any amounts that
14 were erroneously paid to a different taxing body, and not
15 including an amount equal to the amount of refunds made during
16 the second preceding calendar month by the Department, less 2%
17 of that amount, which shall be deposited into the Tax
18 Compliance and Administration Fund and shall be used by the
19 Department, subject to appropriation, to cover the costs of the
20 Department in administering and enforcing the provisions of
21 this subsection, on behalf of such municipality, and not
22 including any amount that the Department determines is
23 necessary to offset any amounts that were payable to a
24 different taxing body but were erroneously paid to the
25 municipality, and not including any amounts that are
26 transferred to the STAR Bonds Revenue Fund. Within 10 days

 

 

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1 after receipt by the Comptroller of the disbursement
2 certification to the municipalities provided for in this
3 subsection to be given to the Comptroller by the Department,
4 the Comptroller shall cause the orders to be drawn for the
5 respective amounts in accordance with the directions contained
6 in the certification. The proceeds of the tax paid to
7 municipalities under this subsection shall be deposited into
8 the Business District Tax Allocation Fund by the municipality.
9     An ordinance or resolution imposing or discontinuing the
10 tax under this subsection or effecting a change in the rate
11 thereof shall either (i) be adopted and a certified copy
12 thereof filed with the Department on or before the first day of
13 April, whereupon the Department, if all other requirements of
14 this subsection are met, shall proceed to administer and
15 enforce this subsection as of the first day of July next
16 following the adoption and filing; or (ii) be adopted and a
17 certified copy thereof filed with the Department on or before
18 the first day of October, whereupon, if all other requirements
19 of this subsection are met, the Department shall proceed to
20 administer and enforce this subsection as of the first day of
21 January next following the adoption and filing.
22     The Department of Revenue shall not administer or enforce
23 an ordinance imposing, discontinuing, or changing the rate of
24 the tax under this subsection, until the municipality also
25 provides, in the manner prescribed by the Department, the
26 boundaries of the business district in such a way that the

 

 

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1 Department can determine by its address whether a business is
2 located in the business district. The municipality must provide
3 this boundary information to the Department on or before April
4 1 for administration and enforcement of the tax under this
5 subsection by the Department beginning on the following July 1
6 and on or before October 1 for administration and enforcement
7 of the tax under this subsection by the Department beginning on
8 the following January 1. The Department of Revenue shall not
9 administer or enforce any change made to the boundaries of a
10 business district until the municipality reports the boundary
11 change to the Department in the manner prescribed by the
12 Department. The municipality must provide this boundary change
13 information to the Department on or before April 1 for
14 administration and enforcement by the Department of the change
15 beginning on the following July 1 and on or before October 1
16 for administration and enforcement by the Department of the
17 change beginning on the following January 1. The retailers in
18 the business district shall be responsible for charging the tax
19 imposed under this subsection. If a retailer is incorrectly
20 included or excluded from the list of those required to collect
21 the tax under this subsection, both the Department of Revenue
22 and the retailer shall be held harmless if they reasonably
23 relied on information provided by the municipality.
24     A municipality that imposes the tax under this subsection
25 must submit to the Department of Revenue any other information
26 as the Department may require for the administration and

 

 

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1 enforcement of the tax.
2     When certifying the amount of a monthly disbursement to a
3 municipality under this subsection, the Department shall
4 increase or decrease the amount by an amount necessary to
5 offset any misallocation of previous disbursements. The offset
6 amount shall be the amount erroneously disbursed within the
7 previous 6 months from the time a misallocation is discovered.
8     Nothing in this subsection shall be construed to authorize
9 the municipality to impose a tax upon the privilege of engaging
10 in any business which under the Constitution of the United
11 States may not be made the subject of taxation by this State.
12     If a tax is imposed under this subsection (b), a tax shall
13 also be imposed under subsection (c) of this Section.
14     (c) If a tax has been imposed under subsection (b), a
15 Business District Service Occupation Tax shall also be imposed
16 upon all persons engaged, in the business district, in the
17 business of making sales of service, who, as an incident to
18 making those sales of service, transfer tangible personal
19 property within the business district, either in the form of
20 tangible personal property or in the form of real estate as an
21 incident to a sale of service. The tax shall be imposed at the
22 same rate as the tax imposed in subsection (b) and shall not
23 exceed 1% of the selling price of tangible personal property so
24 transferred within the business district, to be imposed only in
25 0.25% increments. The tax may not be imposed on food for human
26 consumption that is to be consumed off the premises where it is

 

 

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

 

 

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

 

 

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

 

 

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1 have paid taxes or penalties under this subsection to the
2 Department during the second preceding calendar month. The
3 amount to be paid to each municipality shall be the amount (not
4 including credit memoranda) collected under this subsection
5 during the second preceding calendar month by the Department,
6 less 2% of that amount, which shall be deposited into the Tax
7 Compliance and Administration Fund and shall be used by the
8 Department, subject to appropriation, to cover the costs of the
9 Department in administering and enforcing the provisions of
10 this subsection, and not including an amount equal to the
11 amount of refunds made during the second preceding calendar
12 month by the Department on behalf of such municipality, and not
13 including any amounts that are transferred to the STAR Bonds
14 Revenue Fund. Within 10 days after receipt, by the Comptroller,
15 of the disbursement certification to the municipalities,
16 provided for in this subsection to be given to the Comptroller
17 by the Department, the Comptroller shall cause the orders to be
18 drawn for the respective amounts in accordance with the
19 directions contained in such certification. The proceeds of the
20 tax paid to municipalities under this subsection shall be
21 deposited into the Business District Tax Allocation Fund by the
22 municipality.
23     An ordinance or resolution imposing or discontinuing the
24 tax under this subsection or effecting a change in the rate
25 thereof shall either (i) be adopted and a certified copy
26 thereof filed with the Department on or before the first day of

 

 

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1 April, whereupon the Department, if all other requirements of
2 this subsection are met, shall proceed to administer and
3 enforce this subsection as of the first day of July next
4 following the adoption and filing; or (ii) be adopted and a
5 certified copy thereof filed with the Department on or before
6 the first day of October, whereupon, if all other conditions of
7 this subsection are met, the Department shall proceed to
8 administer and enforce this subsection as of the first day of
9 January next following the adoption and filing.
10     The Department of Revenue shall not administer or enforce
11 an ordinance imposing, discontinuing, or changing the rate of
12 the tax under this subsection, until the municipality also
13 provides, in the manner prescribed by the Department, the
14 boundaries of the business district in such a way that the
15 Department can determine by its address whether a business is
16 located in the business district. The municipality must provide
17 this boundary information to the Department on or before April
18 1 for administration and enforcement of the tax under this
19 subsection by the Department beginning on the following July 1
20 and on or before October 1 for administration and enforcement
21 of the tax under this subsection by the Department beginning on
22 the following January 1. The Department of Revenue shall not
23 administer or enforce any change made to the boundaries of a
24 business district until the municipality reports the boundary
25 change to the Department in the manner prescribed by the
26 Department. The municipality must provide this boundary change

 

 

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1 information to the Department on or before April 1 for
2 administration and enforcement by the Department of the change
3 beginning on the following July 1 and on or before October 1
4 for administration and enforcement by the Department of the
5 change beginning on the following January 1. The retailers in
6 the business district shall be responsible for charging the tax
7 imposed under this subsection. If a retailer is incorrectly
8 included or excluded from the list of those required to collect
9 the tax under this subsection, both the Department of Revenue
10 and the retailer shall be held harmless if they reasonably
11 relied on information provided by the municipality.
12     A municipality that imposes the tax under this subsection
13 must submit to the Department of Revenue any other information
14 as the Department may require for the administration and
15 enforcement of the tax.
16     Nothing in this subsection shall be construed to authorize
17 the municipality to impose a tax upon the privilege of engaging
18 in any business which under the Constitution of the United
19 States may not be made the subject of taxation by the State.
20     If a tax is imposed under this subsection (c), a tax shall
21 also be imposed under subsection (b) of this Section.
22     (d) By ordinance, a municipality that has established a
23 business district under this Division 74.3 may impose an
24 occupation tax upon all persons engaged in the business
25 district in the business of renting, leasing, or letting rooms
26 in a hotel, as defined in the Hotel Operators' Occupation Tax

 

 

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1 Act, at a rate not to exceed 1% of the gross rental receipts
2 from the renting, leasing, or letting of hotel rooms within the
3 business district, to be imposed only in 0.25% increments,
4 excluding, however, from gross rental receipts the proceeds of
5 renting, leasing, or letting to permanent residents of a hotel,
6 as defined in the Hotel Operators' Occupation Tax Act, and
7 proceeds from the tax imposed under subsection (c) of Section
8 13 of the Metropolitan Pier and Exposition Authority Act.
9     The tax imposed by the municipality under this subsection
10 and all civil penalties that may be assessed as an incident to
11 that tax shall be collected and enforced by the municipality
12 imposing the tax. The municipality shall have full power to
13 administer and enforce this subsection, to collect all taxes
14 and penalties due under this subsection, to dispose of taxes
15 and penalties so collected in the manner provided in this
16 subsection, and to determine all rights to credit memoranda
17 arising on account of the erroneous payment of tax or penalty
18 under this subsection. In the administration of and compliance
19 with this subsection, the municipality and persons who are
20 subject to this subsection shall have the same rights,
21 remedies, privileges, immunities, powers, and duties, shall be
22 subject to the same conditions, restrictions, limitations,
23 penalties, and definitions of terms, and shall employ the same
24 modes of procedure as are employed with respect to a tax
25 adopted by the municipality under Section 8-3-14 of this Code.
26     Persons subject to any tax imposed under the authority

 

 

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1 granted in this subsection may reimburse themselves for their
2 tax liability for that tax by separately stating that tax as an
3 additional charge, which charge may be stated in combination,
4 in a single amount, with State taxes imposed under the Hotel
5 Operators' Occupation Tax Act, and with any other tax.
6     Nothing in this subsection shall be construed to authorize
7 a municipality to impose a tax upon the privilege of engaging
8 in any business which under the Constitution of the United
9 States may not be made the subject of taxation by this State.
10     The proceeds of the tax imposed under this subsection shall
11 be deposited into the Business District Tax Allocation Fund.
12     (e) Obligations issued pursuant to subsection (14) of
13 Section 11-74.3-3 shall be retired in the manner provided in
14 the ordinance authorizing the issuance of those obligations by
15 the receipts of taxes levied as authorized in subsections (12)
16 and (13) of Section 11-74.3-3. The ordinance shall pledge all
17 of the amounts in and to be deposited in the Business District
18 Tax Allocation Fund to the payment of business district project
19 costs and obligations. Obligations issued pursuant to
20 subsection (14) of Section 11-74.3-3 may be sold at public or
21 private sale at a price determined by the corporate authorities
22 of the municipality and no referendum approval of the electors
23 shall be required as a condition to the issuance of those
24 obligations. The ordinance authorizing the obligations may
25 require that the obligations contain a recital that they are
26 issued pursuant to subsection (14) of Section 11-74.3-3 and

 

 

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1 this recital shall be conclusive evidence of their validity and
2 of the regularity of their issuance. The corporate authorities
3 of the municipality may also issue its obligations to refund,
4 in whole or in part, obligations previously issued by the
5 municipality under the authority of this Code, whether at or
6 prior to maturity. All obligations issued pursuant to
7 subsection (14) of Section 11-74.3-3 shall not be regarded as
8 indebtedness of the municipality issuing the obligations for
9 the purpose of any limitation imposed by law.
10     (f) When business district costs, including, without
11 limitation, all municipal obligations financing business
12 district project costs incurred under Section 11-74.3-3 have
13 been paid, any surplus funds then remaining in the Business
14 District Tax Allocation Fund shall be distributed to the
15 municipal treasurer for deposit into the municipal general
16 corporate fund. Upon payment of all business district project
17 costs and retirement of obligations, but in no event more than
18 23 years after the date of adoption of the ordinance approving
19 the business district development or redevelopment plan, the
20 municipality shall adopt an ordinance immediately rescinding
21 the taxes imposed pursuant to subsections (12) and (13) of
22 Section 11-74.3-3.
23 (Source: P.A. 93-1053, eff. 1-1-05; 93-1089, eff. 3-7-05.)
 
24     Section 75. The Metropolitan Pier and Exposition Authority
25 Act is amended by changing Section 13 as follows:
 

 

 

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1     (70 ILCS 210/13)  (from Ch. 85, par. 1233)
2     Sec. 13. (a) The Authority shall not have power to levy
3 taxes for any purpose, except as provided in subsections (b),
4 (c), (d), (e), and (f).
5     (b) By ordinance the Authority shall, as soon as
6 practicable after the effective date of this amendatory Act of
7 1991, impose a Metropolitan Pier and Exposition Authority
8 Retailers' Occupation Tax upon all persons engaged in the
9 business of selling tangible personal property at retail within
10 the territory described in this subsection at the rate of 1.0%
11 of the gross receipts (i) from the sale of food, alcoholic
12 beverages, and soft drinks sold for consumption on the premises
13 where sold and (ii) from the sale of food, alcoholic beverages,
14 and soft drinks sold for consumption off the premises where
15 sold by a retailer whose principal source of gross receipts is
16 from the sale of food, alcoholic beverages, and soft drinks
17 prepared for immediate consumption.
18     The tax imposed under this subsection and all civil
19 penalties that may be assessed as an incident to that tax shall
20 be collected and enforced by the Illinois Department of
21 Revenue. The Department shall have full power to administer and
22 enforce this subsection, to collect all taxes and penalties so
23 collected in the manner provided in this subsection, and to
24 determine all rights to credit memoranda arising on account of
25 the erroneous payment of tax or penalty under this subsection.

 

 

09600SB2093ham002 - 195 - LRB096 11467 RLJ 32088 a

1 In the administration of and compliance with this subsection,
2 the Department and persons who are subject to this subsection
3 shall have the same rights, remedies, privileges, immunities,
4 powers, and duties, shall be subject to the same conditions,
5 restrictions, limitations, penalties, exclusions, exemptions,
6 and definitions of terms, and shall employ the same modes of
7 procedure applicable to this Retailers' Occupation Tax as are
8 prescribed in Sections 1, 2 through 2-65 (in respect to all
9 provisions of those Sections other than the State rate of
10 taxes), 2c, 2h, 2i, 3 (except as to the disposition of taxes
11 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
12 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13 and, and until
13 January 1, 1994, 13.5 of the Retailers' Occupation Tax Act,
14 and, on and after January 1, 1994, all applicable provisions of
15 the Uniform Penalty and Interest Act that are not inconsistent
16 with this Act, as fully as if provisions contained in those
17 Sections of the Retailers' Occupation Tax Act were set forth in
18 this subsection.
19     Persons subject to any tax imposed under the authority
20 granted in this subsection may reimburse themselves for their
21 seller's tax liability under this subsection by separately
22 stating that tax as an additional charge, which charge may be
23 stated in combination, in a single amount, with State taxes
24 that sellers are required to collect under the Use Tax Act,
25 pursuant to bracket schedules as the Department may prescribe.
26 The retailer filing the return shall, at the time of filing the

 

 

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1 return, pay to the Department the amount of tax imposed under
2 this subsection, less a discount of 1.75%, which is allowed to
3 reimburse the retailer for the expenses incurred in keeping
4 records, preparing and filing returns, remitting the tax, and
5 supplying data to the Department on request.
6     Whenever the Department determines that a refund should be
7 made under this subsection to a claimant instead of issuing a
8 credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause a warrant to be drawn for the
10 amount specified and to the person named in the notification
11 from the Department. The refund shall be paid by the State
12 Treasurer out of the Metropolitan Pier and Exposition Authority
13 trust fund held by the State Treasurer as trustee for the
14 Authority.
15     Nothing in this subsection authorizes the Authority to
16 impose a tax upon the privilege of engaging in any business
17 that under the Constitution of the United States may not be
18 made the subject of taxation by this State.
19     The Department shall forthwith pay over to the State
20 Treasurer, ex officio, as trustee for the Authority, all taxes
21 and penalties collected under this subsection for deposit into
22 a trust fund held outside of the State Treasury.
23     As soon as possible after the first day of each month,
24 beginning January 1, 2011, upon certification of the Department
25 of Revenue, the Comptroller shall order transferred, and the
26 Treasurer shall transfer, to the STAR Bonds Revenue Fund the

 

 

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1 local sales tax increment, as defined in the STAR Bonds
2 Financing Act, collected under this subsection during the
3 second preceding calendar month for sales within a STAR bond
4 district.
5     After the monthly transfer to the STAR Bonds Revenue Fund,
6 on On or before the 25th day of each calendar month, the
7 Department shall prepare and certify to the Comptroller the
8 amounts to be paid under subsection (g) of this Section, which
9 shall be the amounts, not including credit memoranda, collected
10 under this subsection during the second preceding calendar
11 month by the Department, less any amounts determined by the
12 Department to be necessary for the payment of refunds, and less
13 2% of such balance, which sum shall be deposited by the State
14 Treasurer into the Tax Compliance and Administration Fund in
15 the State Treasury from which it shall be appropriated to the
16 Department to cover the costs of the Department in
17 administering and enforcing the provisions of this subsection,
18 and less any amounts that are transferred to the STAR Bonds
19 Revenue Fund. Within 10 days after receipt by the Comptroller
20 of the certification, the Comptroller shall cause the orders to
21 be drawn for the remaining amounts, and the Treasurer shall
22 administer those amounts as required in subsection (g).
23     A certificate of registration issued by the Illinois
24 Department of Revenue to a retailer under the Retailers'
25 Occupation Tax Act shall permit the registrant to engage in a
26 business that is taxed under the tax imposed under this

 

 

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1 subsection, and no additional registration shall be required
2 under the ordinance imposing the tax or under this subsection.
3     A certified copy of any ordinance imposing or discontinuing
4 any tax under this subsection or effecting a change in the rate
5 of that tax shall be filed with the Department, whereupon the
6 Department shall proceed to administer and enforce this
7 subsection on behalf of the Authority as of the first day of
8 the third calendar month following the date of filing.
9     The tax authorized to be levied under this subsection may
10 be levied within all or any part of the following described
11 portions of the metropolitan area:
12         (1) that portion of the City of Chicago located within
13     the following area: Beginning at the point of intersection
14     of the Cook County - DuPage County line and York Road, then
15     North along York Road to its intersection with Touhy
16     Avenue, then east along Touhy Avenue to its intersection
17     with the Northwest Tollway, then southeast along the
18     Northwest Tollway to its intersection with Lee Street, then
19     south along Lee Street to Higgins Road, then south and east
20     along Higgins Road to its intersection with Mannheim Road,
21     then south along Mannheim Road to its intersection with
22     Irving Park Road, then west along Irving Park Road to its
23     intersection with the Cook County - DuPage County line,
24     then north and west along the county line to the point of
25     beginning; and
26         (2) that portion of the City of Chicago located within

 

 

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1     the following area: Beginning at the intersection of West
2     55th Street with Central Avenue, then east along West 55th
3     Street to its intersection with South Cicero Avenue, then
4     south along South Cicero Avenue to its intersection with
5     West 63rd Street, then west along West 63rd Street to its
6     intersection with South Central Avenue, then north along
7     South Central Avenue to the point of beginning; and
8         (3) that portion of the City of Chicago located within
9     the following area: Beginning at the point 150 feet west of
10     the intersection of the west line of North Ashland Avenue
11     and the north line of West Diversey Avenue, then north 150
12     feet, then east along a line 150 feet north of the north
13     line of West Diversey Avenue extended to the shoreline of
14     Lake Michigan, then following the shoreline of Lake
15     Michigan (including Navy Pier and all other improvements
16     fixed to land, docks, or piers) to the point where the
17     shoreline of Lake Michigan and the Adlai E. Stevenson
18     Expressway extended east to that shoreline intersect, then
19     west along the Adlai E. Stevenson Expressway to a point 150
20     feet west of the west line of South Ashland Avenue, then
21     north along a line 150 feet west of the west line of South
22     and North Ashland Avenue to the point of beginning.
23     The tax authorized to be levied under this subsection may
24 also be levied on food, alcoholic beverages, and soft drinks
25 sold on boats and other watercraft departing from and returning
26 to the shoreline of Lake Michigan (including Navy Pier and all

 

 

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1 other improvements fixed to land, docks, or piers) described in
2 item (3).
3     (c) By ordinance the Authority shall, as soon as
4 practicable after the effective date of this amendatory Act of
5 1991, impose an occupation tax upon all persons engaged in the
6 corporate limits of the City of Chicago in the business of
7 renting, leasing, or letting rooms in a hotel, as defined in
8 the Hotel Operators' Occupation Tax Act, at a rate of 2.5% of
9 the gross rental receipts from the renting, leasing, or letting
10 of hotel rooms within the City of Chicago, excluding, however,
11 from gross rental receipts the proceeds of renting, leasing, or
12 letting to permanent residents of a hotel, as defined in that
13 Act. Gross rental receipts shall not include charges that are
14 added on account of the liability arising from any tax imposed
15 by the State or any governmental agency on the occupation of
16 renting, leasing, or letting rooms in a hotel.
17     The tax imposed by the Authority under this subsection and
18 all civil penalties that may be assessed as an incident to that
19 tax shall be collected and enforced by the Illinois Department
20 of Revenue. The certificate of registration that is issued by
21 the Department to a lessor under the Hotel Operators'
22 Occupation Tax Act shall permit that registrant to engage in a
23 business that is taxable under any ordinance enacted under this
24 subsection without registering separately with the Department
25 under that ordinance or under this subsection. The Department
26 shall have full power to administer and enforce this

 

 

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1 subsection, to collect all taxes and penalties due under this
2 subsection, to dispose of taxes and penalties so collected in
3 the manner provided in this subsection, and to determine all
4 rights to credit memoranda arising on account of the erroneous
5 payment of tax or penalty under this subsection. In the
6 administration of and compliance with this subsection, the
7 Department and persons who are subject to this subsection shall
8 have the same rights, remedies, privileges, immunities,
9 powers, and duties, shall be subject to the same conditions,
10 restrictions, limitations, penalties, and definitions of
11 terms, and shall employ the same modes of procedure as are
12 prescribed in the Hotel Operators' Occupation Tax Act (except
13 where that Act is inconsistent with this subsection), as fully
14 as if the provisions contained in the Hotel Operators'
15 Occupation Tax Act were set out in this subsection.
16     Whenever the Department determines that a refund should be
17 made under this subsection to a claimant instead of issuing a
18 credit memorandum, the Department shall notify the State
19 Comptroller, who shall cause a warrant to be drawn for the
20 amount specified and to the person named in the notification
21 from the Department. The refund shall be paid by the State
22 Treasurer out of the Metropolitan Pier and Exposition Authority
23 trust fund held by the State Treasurer as trustee for the
24 Authority.
25     Persons subject to any tax imposed under the authority
26 granted in this subsection may reimburse themselves for their

 

 

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1 tax liability for that tax by separately stating that tax as an
2 additional charge, which charge may be stated in combination,
3 in a single amount, with State taxes imposed under the Hotel
4 Operators' Occupation Tax Act, the municipal tax imposed under
5 Section 8-3-13 of the Illinois Municipal Code, and the tax
6 imposed under Section 19 of the Illinois Sports Facilities
7 Authority Act.
8     The person filing the return shall, at the time of filing
9 the return, pay to the Department the amount of tax, less a
10 discount of 2.1% or $25 per calendar year, whichever is
11 greater, which is allowed to reimburse the operator for the
12 expenses incurred in keeping records, preparing and filing
13 returns, remitting the tax, and supplying data to the
14 Department on request.
15     The Department shall forthwith pay over to the State
16 Treasurer, ex officio, as trustee for the Authority, all taxes
17 and penalties collected under this subsection for deposit into
18 a trust fund held outside the State Treasury. On or before the
19 25th day of each calendar month, the Department shall certify
20 to the Comptroller the amounts to be paid under subsection (g)
21 of this Section, which shall be the amounts (not including
22 credit memoranda) collected under this subsection during the
23 second preceding calendar month by the Department, less any
24 amounts determined by the Department to be necessary for
25 payment of refunds. Within 10 days after receipt by the
26 Comptroller of the Department's certification, the Comptroller

 

 

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1 shall cause the orders to be drawn for such amounts, and the
2 Treasurer shall administer those amounts as required in
3 subsection (g).
4     A certified copy of any ordinance imposing or discontinuing
5 a tax under this subsection or effecting a change in the rate
6 of that tax shall be filed with the Illinois Department of
7 Revenue, whereupon the Department shall proceed to administer
8 and enforce this subsection on behalf of the Authority as of
9 the first day of the third calendar month following the date of
10 filing.
11     (d) By ordinance the Authority shall, as soon as
12 practicable after the effective date of this amendatory Act of
13 1991, impose a tax upon all persons engaged in the business of
14 renting automobiles in the metropolitan area at the rate of 6%
15 of the gross receipts from that business, except that no tax
16 shall be imposed on the business of renting automobiles for use
17 as taxicabs or in livery service. The tax imposed under this
18 subsection and all civil penalties that may be assessed as an
19 incident to that tax shall be collected and enforced by the
20 Illinois Department of Revenue. The certificate of
21 registration issued by the Department to a retailer under the
22 Retailers' Occupation Tax Act or under the Automobile Renting
23 Occupation and Use Tax Act shall permit that person to engage
24 in a business that is taxable under any ordinance enacted under
25 this subsection without registering separately with the
26 Department under that ordinance or under this subsection. The

 

 

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1 Department shall have full power to administer and enforce this
2 subsection, to collect all taxes and penalties due under this
3 subsection, to dispose of taxes and penalties so collected in
4 the manner provided in this subsection, and to determine all
5 rights to credit memoranda arising on account of the erroneous
6 payment of tax or penalty under this subsection. In the
7 administration of and compliance with this subsection, the
8 Department and persons who are subject to this subsection shall
9 have the same rights, remedies, privileges, immunities,
10 powers, and duties, be subject to the same conditions,
11 restrictions, limitations, penalties, and definitions of
12 terms, and employ the same modes of procedure as are prescribed
13 in Sections 2 and 3 (in respect to all provisions of those
14 Sections other than the State rate of tax; and in respect to
15 the provisions of the Retailers' Occupation Tax Act referred to
16 in those Sections, except as to the disposition of taxes and
17 penalties collected, except for the provision allowing
18 retailers a deduction from the tax to cover certain costs, and
19 except that credit memoranda issued under this subsection may
20 not be used to discharge any State tax liability) of the
21 Automobile Renting Occupation and Use Tax Act, as fully as if
22 provisions contained in those Sections of that Act were set
23 forth in this subsection.
24     Persons subject to any tax imposed under the authority
25 granted in this subsection may reimburse themselves for their
26 tax liability under this subsection by separately stating that

 

 

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1 tax as an additional charge, which charge may be stated in
2 combination, in a single amount, with State tax that sellers
3 are required to collect under the Automobile Renting Occupation
4 and Use Tax Act, pursuant to bracket schedules as the
5 Department may prescribe.
6     Whenever the Department determines that a refund should be
7 made under this subsection to a claimant instead of issuing a
8 credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause a warrant to be drawn for the
10 amount specified and to the person named in the notification
11 from the Department. The refund shall be paid by the State
12 Treasurer out of the Metropolitan Pier and Exposition Authority
13 trust fund held by the State Treasurer as trustee for the
14 Authority.
15     The Department shall forthwith pay over to the State
16 Treasurer, ex officio, as trustee, all taxes and penalties
17 collected under this subsection for deposit into a trust fund
18 held outside the State Treasury. On or before the 25th day of
19 each calendar month, the Department shall certify to the
20 Comptroller the amounts to be paid under subsection (g) of this
21 Section (not including credit memoranda) collected under this
22 subsection during the second preceding calendar month by the
23 Department, less any amount determined by the Department to be
24 necessary for payment of refunds. Within 10 days after receipt
25 by the Comptroller of the Department's certification, the
26 Comptroller shall cause the orders to be drawn for such

 

 

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1 amounts, and the Treasurer shall administer those amounts as
2 required in subsection (g).
3     Nothing in this subsection authorizes the Authority to
4 impose a tax upon the privilege of engaging in any business
5 that under the Constitution of the United States may not be
6 made the subject of taxation by this State.
7     A certified copy of any ordinance imposing or discontinuing
8 a tax under this subsection or effecting a change in the rate
9 of that tax shall be filed with the Illinois Department of
10 Revenue, whereupon the Department shall proceed to administer
11 and enforce this subsection on behalf of the Authority as of
12 the first day of the third calendar month following the date of
13 filing.
14     (e) By ordinance the Authority shall, as soon as
15 practicable after the effective date of this amendatory Act of
16 1991, impose a tax upon the privilege of using in the
17 metropolitan area an automobile that is rented from a rentor
18 outside Illinois and is titled or registered with an agency of
19 this State's government at a rate of 6% of the rental price of
20 that automobile, except that no tax shall be imposed on the
21 privilege of using automobiles rented for use as taxicabs or in
22 livery service. The tax shall be collected from persons whose
23 Illinois address for titling or registration purposes is given
24 as being in the metropolitan area. The tax shall be collected
25 by the Department of Revenue for the Authority. The tax must be
26 paid to the State or an exemption determination must be

 

 

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

 

 

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1 except the last paragraph concerning refunds, and except that
2 credit memoranda issued under this subsection may not be used
3 to discharge any State tax liability) of the Automobile Renting
4 Occupation and Use Tax Act, as fully as if provisions contained
5 in those Sections of that Act were set forth in this
6 subsection.
7     Whenever the Department determines that a refund should be
8 made under this subsection to a claimant instead of issuing a
9 credit memorandum, the Department shall notify the State
10 Comptroller, who shall cause a warrant to be drawn for the
11 amount specified and to the person named in the notification
12 from the Department. The refund shall be paid by the State
13 Treasurer out of the Metropolitan Pier and Exposition Authority
14 trust fund held by the State Treasurer as trustee for the
15 Authority.
16     The Department shall forthwith pay over to the State
17 Treasurer, ex officio, as trustee, all taxes, penalties, and
18 interest collected under this subsection for deposit into a
19 trust fund held outside the State Treasury. On or before the
20 25th day of each calendar month, the Department shall certify
21 to the State Comptroller the amounts to be paid under
22 subsection (g) of this Section, which shall be the amounts (not
23 including credit memoranda) collected under this subsection
24 during the second preceding calendar month by the Department,
25 less any amounts determined by the Department to be necessary
26 for payment of refunds. Within 10 days after receipt by the

 

 

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1 State Comptroller of the Department's certification, the
2 Comptroller shall cause the orders to be drawn for such
3 amounts, and the Treasurer shall administer those amounts as
4 required in subsection (g).
5     A certified copy of any ordinance imposing or discontinuing
6 a tax or effecting a change in the rate of that tax shall be
7 filed with the Illinois Department of Revenue, whereupon the
8 Department shall proceed to administer and enforce this
9 subsection on behalf of the Authority as of the first day of
10 the third calendar month following the date of filing.
11     (f) By ordinance the Authority shall, as soon as
12 practicable after the effective date of this amendatory Act of
13 1991, impose an occupation tax on all persons, other than a
14 governmental agency, engaged in the business of providing
15 ground transportation for hire to passengers in the
16 metropolitan area at a rate of (i) $2 per taxi or livery
17 vehicle departure with passengers for hire from commercial
18 service airports in the metropolitan area, (ii) for each
19 departure with passengers for hire from a commercial service
20 airport in the metropolitan area in a bus or van operated by a
21 person other than a person described in item (iii): $9 per bus
22 or van with a capacity of 1-12 passengers, $18 per bus or van
23 with a capacity of 13-24 passengers, and $27 per bus or van
24 with a capacity of over 24 passengers, and (iii) for each
25 departure with passengers for hire from a commercial service
26 airport in the metropolitan area in a bus or van operated by a

 

 

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1 person regulated by the Interstate Commerce Commission or
2 Illinois Commerce Commission, operating scheduled service from
3 the airport, and charging fares on a per passenger basis: $1
4 per passenger for hire in each bus or van. The term "commercial
5 service airports" means those airports receiving scheduled
6 passenger service and enplaning more than 100,000 passengers
7 per year.
8     In the ordinance imposing the tax, the Authority may
9 provide for the administration and enforcement of the tax and
10 the collection of the tax from persons subject to the tax as
11 the Authority determines to be necessary or practicable for the
12 effective administration of the tax. The Authority may enter
13 into agreements as it deems appropriate with any governmental
14 agency providing for that agency to act as the Authority's
15 agent to collect the tax.
16     In the ordinance imposing the tax, the Authority may
17 designate a method or methods for persons subject to the tax to
18 reimburse themselves for the tax liability arising under the
19 ordinance (i) by separately stating the full amount of the tax
20 liability as an additional charge to passengers departing the
21 airports, (ii) by separately stating one-half of the tax
22 liability as an additional charge to both passengers departing
23 from and to passengers arriving at the airports, or (iii) by
24 some other method determined by the Authority.
25     All taxes, penalties, and interest collected under any
26 ordinance adopted under this subsection, less any amounts

 

 

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1 determined to be necessary for the payment of refunds, shall be
2 paid forthwith to the State Treasurer, ex officio, for deposit
3 into a trust fund held outside the State Treasury and shall be
4 administered by the State Treasurer as provided in subsection
5 (g) of this Section.
6     (g) Amounts deposited from the proceeds of taxes imposed by
7 the Authority under subsections (b), (c), (d), (e), and (f) of
8 this Section and amounts deposited under Section 19 of the
9 Illinois Sports Facilities Authority Act shall be held in a
10 trust fund outside the State Treasury and shall be administered
11 by the Treasurer as follows: first, an amount necessary for the
12 payment of refunds shall be retained in the trust fund; second,
13 the balance of the proceeds deposited in the trust fund during
14 fiscal year 1993 shall be retained in the trust fund during
15 that year and thereafter shall be administered as a reserve to
16 fund the deposits required in item "third"; third, beginning
17 July 20, 1993, and continuing each month thereafter, provided
18 that the amount requested in the certificate of the Chairman of
19 the Authority filed under Section 8.25f of the State Finance
20 Act has been appropriated for payment to the Authority, 1/8 of
21 the annual amount requested in that certificate together with
22 any cumulative deficiencies shall be transferred from the trust
23 fund into the McCormick Place Expansion Project Fund in the
24 State Treasury until 100% of the amount requested in that
25 certificate plus any cumulative deficiencies in the amounts
26 transferred into the McCormick Place Expansion Project Fund

 

 

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1 under this item "third", have been so transferred; fourth, the
2 balance shall be maintained in the trust fund; fifth, on July
3 20, 1994, and on July 20 of each year thereafter the Treasurer
4 shall calculate for the previous fiscal year the surplus
5 revenues in the trust fund and pay that amount to the
6 Authority. "Surplus revenues" shall mean the difference
7 between the amount in the trust fund on June 30 of the fiscal
8 year previous to the current fiscal year (excluding amounts
9 retained for refunds under item "first") minus the amount
10 deposited in the trust fund during fiscal year 1993 under item
11 "second". Moneys received by the Authority under item "fifth"
12 may be used solely for the purposes of paying debt service on
13 the bonds and notes issued by the Authority, including early
14 redemption of those bonds or notes, and for the purposes of
15 repair, replacement, and improvement of the grounds,
16 buildings, and facilities of the Authority; provided that any
17 moneys in excess of $50,000,000 held by the Authority as of
18 June 30 in any fiscal year and received by the Authority under
19 item "fifth" shall be used solely for paying the debt service
20 on or early redemption of the Authority's bonds or notes. When
21 bonds and notes issued under Section 13.2, or bonds or notes
22 issued to refund those bonds and notes, are no longer
23 outstanding, the balance in the trust fund shall be paid to the
24 Authority.
25     (h) The ordinances imposing the taxes authorized by this
26 Section shall be repealed when bonds and notes issued under

 

 

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1 Section 13.2 or bonds and notes issued to refund those bonds
2 and notes are no longer outstanding.
3 (Source: P.A. 90-612, eff. 7-8-98.)
 
4     Section 80. The Flood Prevention District Act is amended by
5 changing Section 25 as follows:
 
6     (70 ILCS 750/25)
7     Sec. 25. Flood prevention retailers' and service
8 occupation taxes.
9     (a) If the Board of Commissioners of a flood prevention
10 district determines that an emergency situation exists
11 regarding levee repair or flood prevention, and upon an
12 ordinance confirming the determination adopted by the
13 affirmative vote of a majority of the members of the county
14 board of the county in which the district is situated, the
15 county may impose a flood prevention retailers' occupation tax
16 upon all persons engaged in the business of selling tangible
17 personal property at retail within the territory of the
18 district to provide revenue to pay the costs of providing
19 emergency levee repair and flood prevention and to secure the
20 payment of bonds, notes, and other evidences of indebtedness
21 issued under this Act for a period not to exceed 25 years or as
22 required to repay the bonds, notes, and other evidences of
23 indebtedness issued under this Act. The tax rate shall be 0.25%
24 of the gross receipts from all taxable sales made in the course

 

 

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1 of that business. The tax imposed under this Section and all
2 civil penalties that may be assessed as an incident thereof
3 shall be collected and enforced by the State Department of
4 Revenue. The Department shall have full power to administer and
5 enforce this Section; to collect all taxes and penalties so
6 collected in the manner hereinafter provided; and to determine
7 all rights to credit memoranda arising on account of the
8 erroneous payment of tax or penalty hereunder.
9     In the administration of and compliance with this
10 subsection, the Department and persons who are subject to this
11 subsection (i) have the same rights, remedies, privileges,
12 immunities, powers, and duties, (ii) are subject to the same
13 conditions, restrictions, limitations, penalties, and
14 definitions of terms, and (iii) shall employ the same modes of
15 procedure as are set forth in Sections 1 through 1o, 2 through
16 2-70 (in respect to all provisions contained in those Sections
17 other than the State rate of tax), 2a through 2h, 3 (except as
18 to the disposition of taxes and penalties collected), 4, 5, 5a,
19 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
20 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
21 all provisions of the Uniform Penalty and Interest Act as if
22 those provisions were set forth in this subsection.
23     Persons subject to any tax imposed under this Section may
24 reimburse themselves for their seller's tax liability
25 hereunder by separately stating the tax as an additional
26 charge, which charge may be stated in combination in a single

 

 

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

 

 

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1 memoranda arising on account of the erroneous payment of tax or
2 penalty hereunder.
3     In the administration of and compliance with this
4 subsection, the Department and persons who are subject to this
5 subsection shall (i) have the same rights, remedies,
6 privileges, immunities, powers, and duties, (ii) be subject to
7 the same conditions, restrictions, limitations, penalties, and
8 definitions of terms, and (iii) employ the same modes of
9 procedure as are set forth in Sections 2 (except that the
10 reference to State in the definition of supplier maintaining a
11 place of business in this State means the district), 2a through
12 2d, 3 through 3-50 (in respect to all provisions contained in
13 those Sections other than the State rate of tax), 4 (except
14 that the reference to the State shall be to the district), 5,
15 7, 8 (except that the jurisdiction to which the tax is a debt
16 to the extent indicated in that Section 8 is the district), 9
17 (except as to the disposition of taxes and penalties
18 collected), 10, 11, 12 (except the reference therein to Section
19 2b of the Retailers' Occupation Tax Act), 13 (except that any
20 reference to the State means the district), Section 15, 16, 17,
21 18, 19, and 20 of the Service Occupation Tax Act and all
22 provisions of the Uniform Penalty and Interest Act, as fully as
23 if those provisions were set forth herein.
24     Persons subject to any tax imposed under the authority
25 granted in this subsection may reimburse themselves for their
26 serviceman's tax liability hereunder by separately stating the

 

 

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

 

 

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1 collected under this Section to be deposited into the Flood
2 Prevention Occupation Tax Fund, which shall be an
3 unappropriated trust fund held outside the State treasury.
4     As soon as possible after the first day of each month,
5 beginning January 1, 2011, upon certification of the Department
6 of Revenue, the Comptroller shall order transferred, and the
7 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
8 local sales tax increment, as defined in the STAR Bonds
9 Financing Act, collected under this Section during the second
10 preceding calendar month for sales within a STAR bond district.
11 The Department shall make this certification only if the flood
12 prevention district imposes a tax on real property as provided
13 in the definition of "local sales taxes" under the STAR Bonds
14 Financing Act.
15     After the monthly transfer to the STAR Bonds Revenue Fund,
16 on On or before the 25th day of each calendar month, the
17 Department shall prepare and certify to the Comptroller the
18 disbursement of stated sums of money to the counties from which
19 retailers or servicemen have paid taxes or penalties to the
20 Department during the second preceding calendar month. The
21 amount to be paid to each county is equal to the amount (not
22 including credit memoranda) collected from the county under
23 this Section during the second preceding calendar month by the
24 Department, (i) less 2% of that amount, which shall be
25 deposited into the Tax Compliance and Administration Fund and
26 shall be used by the Department in administering and enforcing

 

 

09600SB2093ham002 - 219 - LRB096 11467 RLJ 32088 a

1 the provisions of this Section on behalf of the county, (ii)
2 plus an amount that the Department determines is necessary to
3 offset any amounts that were erroneously paid to a different
4 taxing body; (iii) less an amount equal to the amount of
5 refunds made during the second preceding calendar month by the
6 Department on behalf of the county; and (iv) less any amount
7 that the Department determines is necessary to offset any
8 amounts that were payable to a different taxing body but were
9 erroneously paid to the county; and (v) less any amounts that
10 are transferred to the STAR Bonds Revenue Fund. When certifying
11 the amount of a monthly disbursement to a county under this
12 Section, the Department shall increase or decrease the amounts
13 by an amount necessary to offset any miscalculation of previous
14 disbursements within the previous 6 months from the time a
15 miscalculation is discovered.
16     Within 10