Rep. John E. Bradley

Filed: 5/5/2010

 

 


 

 


 
09600SB2093ham003 LRB096 11467 RLJ 41278 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
6 Innovation Development and Economy 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 it is in the public interest to limit the
11     portion of the aggregate proceeds of STAR bonds issued that
12     are derived from the State sales tax increment pledged to
13     pay STAR bonds in any STAR bond district to not more than
14     50% of the total development costs in the STAR bond
15     district as set forth in subsection (f) of Section 30;
16         (b) that as a result of the costs of land assemblage,
17     financing, infrastructure, and other project costs, the
18     private sector, without the assistance contemplated in
19     this Act, is unable to develop major tourism,
20     entertainment, retail, and related destination projects in
21     the State;
22         (c) that the type of projects for which this Act is
23     intended must be of a certain size, scope, and acreage and
24     have direct access to major highways, and must be developed
25     in a cohesive and comprehensive manner;
26         (d) that the eligible tracts of land, portions of which

 

 

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1     have previously been surface or strip mined, present unique
2     development obstacles and are more likely to remain
3     underutilized and undeveloped, or developed in a piecemeal
4     manner resulting in inefficient and poorly planned
5     developments that do not maximize job creation, job
6     retention, tourism, and tax revenue generation within the
7     State;
8         (e) that there are multiple eligible areas in the State
9     that could benefit from this Act;
10         (f) that investment in major tourism, entertainment,
11     retail, and related destination projects within the State
12     would stimulate economic activity in the State, including
13     the creation and maintenance of jobs, the creation of new
14     and lasting infrastructure and other improvements, and the
15     attraction and retention of interstate tourists and
16     entertainment events that generate significant economic
17     activity;
18         (g) that this Act shall enhance and promote tourism in
19     Southern Illinois, including without limitation the
20     Southern Illinois Wine Trail;
21         (h) that the continual encouragement, development,
22     growth, and expansion of major tourism, entertainment,
23     retail, and related destination projects within the State
24     requires a cooperative and continuous partnership between
25     government and the public sector;
26         (i) that the State has a responsibility to help create

 

 

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

 

 

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1     which public money and resources may be expended; and
2         (n) that the necessity in the public interest for the
3     provisions of this Act is hereby declared as a matter of
4     legislative determination.
 
5     Section 10. Definitions. As used in this Act, the following
6 words and phrases shall have the following meanings unless a
7 different meaning clearly appears from the context:
8     "Base year" means the calendar year immediately prior to
9 the calendar year in which the STAR bond district is
10 established.
11     "Commence work" means the manifest commencement of actual
12 operations on the development site, such as, erecting a
13 building, general on-site and off-site grading and utility
14 installations, commencing design and construction
15 documentation, ordering lead-time materials, excavating the
16 ground to lay a foundation or a basement, or work of like
17 description which a reasonable person would recognize as being
18 done with the intention and purpose to continue work until the
19 project is completed.
20     "County" means the county in which a proposed STAR bond
21 district is located.
22     "De minimus" means an amount less than 15% of the land area
23 within a STAR bond district.
24     "Department of Revenue" means the Department of Revenue of
25 the State of Illinois.

 

 

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1     "Destination user" means an owner, operator, licensee,
2 co-developer, subdeveloper, or tenant (i) that operates a
3 business within a STAR bond district that is a retail store
4 having at least 150,000 square feet of sales floor area; (ii)
5 that at the time of opening does not have another Illinois
6 location within a 70 mile radius; (iii) that has an annual
7 average of not less than 30% of customers who travel from at
8 least 75 miles away or from out-of-state, as demonstrated by
9 data from a comparable existing store or stores, or, if there
10 is no comparable existing store, as demonstrated by an economic
11 analysis that shows that the proposed retailer will have an
12 annual average of not less than 30% of customers who travel
13 from at least 75 miles away or from out-of-state; and (iv) that
14 makes an initial capital investment, including project costs
15 and other direct costs, of not less than $30,000,000 for such
16 retail store.
17     "Destination hotel" means a hotel (as that term is defined
18 in Section 2 of the Hotel Operators' Occupation Tax Act)
19 complex having at least 150 guest rooms and which also includes
20 a venue for entertainment attractions, rides, or other
21 activities oriented toward the entertainment and amusement of
22 its guests and other patrons.
23     "Developer" means any individual, corporation, trust,
24 estate, partnership, limited liability partnership, limited
25 liability company, or other entity. The term does not include a
26 not-for-profit entity, political subdivision, or other agency

 

 

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1 or instrumentality of the State.
2     "Director" means the Director of Revenue, who shall consult
3 with the Director of Commerce and Economic Opportunity in any
4 approvals or decisions required by the Director under this Act.
5     "Economic impact study" means a study conducted by an
6 independent economist to project the financial benefit of the
7 proposed STAR bond project to the local, regional, and State
8 economies, consider the proposed adverse impacts on similar
9 projects and businesses, as well as municipalities within the
10 projected market area, and draw conclusions about the net
11 effect of the proposed STAR bond project on the local,
12 regional, and State economies. A copy of the economic impact
13 study shall be provided to the Director for review.
14     "Eligible area" means any improved or vacant area that (i)
15 is contiguous and is not, in the aggregate, less than 250 acres
16 nor more than 500 acres which must include only parcels of real
17 property directly and substantially benefited by the proposed
18 STAR bond district plan, (ii) is adjacent to a federal
19 interstate highway, (iii) is within one mile of 2 State
20 highways, (iv) is within one mile of an entertainment user, or
21 a major or minor league sports stadium or other similar
22 entertainment venue that had an initial capital investment of
23 at least $20,000,000, and (v) includes land that was previously
24 surface or strip mined. The area may be bisected by streets,
25 highways, roads, alleys, railways, bike paths, streams,
26 rivers, and other waterways and still be deemed contiguous. In

 

 

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1 addition, in order to constitute an eligible area one of the
2 following requirements must be satisfied and all of which are
3 subject to the review and approval of the Director as provided
4 in subsection (d) of Section 15:
5         (a) the governing body of the political subdivision
6     shall have determined that the area meets the requirements
7     of a "blighted area" as defined under the Tax Increment
8     Allocation Redevelopment Act; or
9         (b) the governing body of the political subdivision
10     shall have determined that the area is a blighted area as
11     determined under the provisions of Section 11-74.3-5 of the
12     Illinois Municipal Code; or
13         (c) the governing body of the political subdivision
14     shall make the following findings:
15             (i) that the vacant portions of the area have
16         remained vacant for at least one year, or that any
17         building located on a vacant portion of the property
18         was demolished within the last year and that the
19         building would have qualified under item (ii) of this
20         subsection;
21             (ii) if portions of the area are currently
22         developed, that the use, condition, and character of
23         the buildings on the property are not consistent with
24         the purposes set forth in Section 5;
25             (iii) that the STAR bond district is expected to
26         create or retain job opportunities within the

 

 

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1         political subdivision;
2             (iv) that the STAR bond district will serve to
3         further the development of adjacent areas;
4             (v) that without the availability of STAR bonds,
5         the projects described in the STAR bond district plan
6         would not be possible;
7             (vi) that the master developer meets high
8         standards of creditworthiness and financial strength
9         as demonstrated by one or more of the following: (i)
10         corporate debenture ratings of BBB or higher by
11         Standard & Poor's Corporation or Baa or higher by
12         Moody's Investors Service, Inc.; (ii) a letter from a
13         financial institution with assets of $10,000,000 or
14         more attesting to the financial strength of the master
15         developer; or (iii) specific evidence of equity
16         financing for not less than 10% of the estimated total
17         STAR bond project costs;
18             (vii) that the STAR bond district will strengthen
19         the commercial sector of the political subdivision;
20             (viii) that the STAR bond district will enhance the
21         tax base of the political subdivision; and
22             (ix) that the formation of a STAR bond district is
23         in the best interest of the political subdivision.
24     "Entertainment user" means an owner, operator, licensee,
25 co-developer, subdeveloper, or tenant that operates a business
26 within a STAR bond district that has a primary use of providing

 

 

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1 a venue for entertainment attractions, rides, or other
2 activities oriented toward the entertainment and amusement of
3 its patrons, occupies at least 20 acres of land in the STAR
4 bond district, and makes an initial capital investment,
5 including project costs and other direct and indirect costs, of
6 not less than $25,000,000 for that venue.
7     "Feasibility study" means a feasibility study as defined in
8 subsection (b) of Section 20.
9     "Infrastructure" means the public improvements and private
10 improvements that serve the public purposes set forth in
11 Section 5 of this Act and that benefit the STAR bond district
12 or any STAR bond projects, including, but not limited to,
13 streets, drives and driveways, traffic and directional signs
14 and signals, parking lots and parking facilities,
15 interchanges, highways, sidewalks, bridges, underpasses and
16 overpasses, bike and walking trails, sanitary storm sewers and
17 lift stations, drainage conduits, channels, levees, canals,
18 storm water detention and retention facilities, utilities and
19 utility connections, water mains and extensions, and street and
20 parking lot lighting and connections.
21     "Local sales taxes" means any locally-imposed taxes
22 received by a municipality, county, or other local governmental
23 entity arising from sales by retailers and servicemen within a
24 STAR bond district, including business district sales taxes and
25 STAR bond occupation taxes, and that portion of the net revenue
26 realized under the Retailers' Occupation Tax Act, the Use Tax

 

 

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1 Act, the Service Use Tax Act, and the Service Occupation Tax
2 Act from transactions at places of business located within a
3 STAR bond district that is deposited into the Local Government
4 Tax Fund and the County and Mass Transit District Fund. For the
5 purpose of this Act, "local sales taxes" does not include (i)
6 any taxes authorized pursuant to the Local Mass Transit
7 District Act, the Metro-East Park and Recreation District Act,
8 or the Flood Prevention District Act for so long as the
9 applicable taxing district does not impose a tax on real
10 property or (ii) county school facility occupation taxes
11 imposed pursuant to Section 5-1006.7 of the Counties Code.
12     "Local sales tax increment" means, with respect to local
13 sales taxes administered by the Illinois Department of Revenue,
14 (i) all of the local sales tax paid by destination users,
15 destination hotels, and entertainment users that is in excess
16 of the local sales tax paid by destination users, destination
17 hotels, and entertainment users for the same month in the base
18 year, as determined by the Illinois Department of Revenue, (ii)
19 in the case of a municipality forming a STAR bond district that
20 is wholly within the corporate boundaries of the municipality
21 and in the case of a municipality and county forming a STAR
22 bond district that is only partially within such municipality,
23 that portion of the local sales tax paid by taxpayers that are
24 not destination users, destination hotels, or entertainment
25 users that is in excess of the local sales tax paid by
26 taxpayers that are not destination users, destination hotels,

 

 

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1 or entertainment users for the same month in the base year, as
2 determined by the Illinois Department of Revenue, and (iii) in
3 the case of a county in which a STAR bond district is formed
4 that is wholly within a municipality, that portion of the local
5 sales tax paid by taxpayers that are not destination users,
6 destination hotels, or entertainment users that is in excess of
7 the local sales tax paid by taxpayers that are not destination
8 users, destination hotels, or entertainment users for the same
9 month in the base year, as determined by the Illinois
10 Department of Revenue, but only if the corporate authorities of
11 the county adopts an ordinance, and files a copy with the
12 Department within the same time frames as required for STAR
13 bond occupation taxes under Section 31, that designates the
14 taxes referenced in this clause (iii) as part of the local
15 sales tax increment under this Act. "Local sales tax increment"
16 means, with respect to local sales taxes administered by a
17 municipality, county, or other unit of local government, that
18 portion of the local sales tax that is in excess of the local
19 sales tax for the same month in the base year, as determined by
20 the respective municipality, county, or other unit of local
21 government. If any portion of local sales taxes are, at the
22 time of formation of a STAR bond district, already subject to
23 tax increment financing under the Tax Increment Allocation
24 Redevelopment Act, then the local sales tax increment for such
25 portion shall be frozen at the base year established in
26 accordance with this Act, and all future incremental increases

 

 

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1 shall be included in the "local sales tax increment" under this
2 Act. Any party otherwise entitled to receipt of incremental
3 local sales tax revenues through an existing tax increment
4 financing district shall be entitled to continue to receive
5 such revenues up to the amount frozen in the base year. Nothing
6 in this Act shall affect the prior qualification of existing
7 redevelopment project costs incurred that are eligible for
8 reimbursement under the Tax Increment Allocation Redevelopment
9 Act. In such event, prior to approving a STAR bond district,
10 the political subdivision forming the STAR bond district shall
11 take such action as is necessary, including amending the
12 existing tax increment financing district redevelopment plan,
13 to carry out the provisions of this Act. The Illinois
14 Department of Revenue shall allocate the local sales tax
15 increment only if the local sales tax is administered by the
16 Department.
17     "Market study" means a study to determine the ability of
18 the proposed STAR bond project to gain market share locally and
19 regionally and to remain profitable past the term of repayment
20 of STAR bonds.
21     "Master developer" means a developer cooperating with a
22 political subdivision to plan, develop, and implement a STAR
23 bond project plan for a STAR bond district. Subject to the
24 limitations of Section 25, the master developer may work with
25 and transfer certain development rights to other developers for
26 the purpose of implementing STAR bond project plans and

 

 

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1 achieving the purposes of this Act. A master developer for a
2 STAR bond district shall be appointed by a political
3 subdivision in the resolution establishing the STAR bond
4 district, and the master developer must, at the time of
5 appointment, own or have control of, through purchase
6 agreements, option contracts, or other means, not less than 50%
7 of the acreage within the STAR bond district and the master
8 developer or its affiliate must have ownership or control on
9 June 1, 2010.
10     "Master development agreement" means an agreement between
11 the master developer and the political subdivision to govern a
12 STAR bond district and any STAR bond projects.
13     "Municipality" means the city, village, or incorporated
14 town in which a proposed STAR bond district is located.
15     "Pledged STAR revenues" means those sales tax and revenues
16 and other sources of funds pledged to pay debt service on STAR
17 bonds or to pay project costs pursuant to Section 30.
18 Notwithstanding any provision to the contrary, the following
19 revenues shall not constitute pledged STAR revenues or be
20 available to pay principal and interest on STAR bonds: any
21 State sales tax increment or local sales tax increment from a
22 retail entity initiating operations in a STAR bond district
23 while terminating operations at another Illinois location
24 within 25 miles of the STAR bond district. For purposes of this
25 paragraph, "terminating operations" means a closing of a retail
26 operation that is directly related to the opening of the same

 

 

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

 

 

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1     plans, including, but not limited to, staff and
2     professional service costs for architectural, engineering,
3     legal, financial, planning, or other services, provided
4     however that no charges for professional services may be
5     based on a percentage of the tax increment collected and no
6     contracts for professional services, excluding
7     architectural and engineering services, may be entered
8     into if the terms of the contract extend beyond a period of
9     3 years;
10         (b) property assembly costs, including, but not
11     limited to, acquisition of land and other real property or
12     rights or interests therein, located within the boundaries
13     of a STAR bond district, demolition of buildings, site
14     preparation, site improvements that serve as an engineered
15     barrier addressing ground level or below ground
16     environmental contamination, including, but not limited
17     to, parking lots and other concrete or asphalt barriers,
18     the clearing and grading of land, and importing additional
19     soil and fill materials, or removal of soil and fill
20     materials from the site;
21         (c) subject to paragraph (d), costs of buildings and
22     other vertical improvements that are located within the
23     boundaries of a STAR bond district and owned by a political
24     subdivision or other public entity, including without
25     limitation police and fire stations, educational
26     facilities, and public restrooms and rest areas;

 

 

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1         (c-1) costs of buildings and other vertical
2     improvements that are located within the boundaries of a
3     STAR bond district and owned by a destination user or
4     destination hotel; except that only 2 destination users in
5     a STAR bond district and one destination hotel are eligible
6     to include the cost of those vertical improvements as
7     project costs;
8         (c-5) costs of buildings; rides and attractions, which
9     include carousels, slides, roller coasters, displays,
10     models, towers, works of art, and similar theme and
11     amusement park improvements; and other vertical
12     improvements that are located within the boundaries of a
13     STAR bond district and owned by an entertainment user;
14     except that only one entertainment user in a STAR bond
15     district is eligible to include the cost of those vertical
16     improvements as project costs;
17         (d) costs of the design and construction of
18     infrastructure and public works located within the
19     boundaries of a STAR bond district that are reasonable or
20     necessary to implement a STAR bond district plan or any
21     STAR bond project plans, or both, except that project costs
22     shall not include the cost of constructing a new municipal
23     public building principally used to provide offices,
24     storage space, or conference facilities or vehicle
25     storage, maintenance, or repair for administrative, public
26     safety, or public works personnel and that is not intended

 

 

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

 

 

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

 

 

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1         pursuant to this Act may not exceed 30% of the total
2         cost paid or incurred by the developer for a STAR bond
3         district or STAR bond projects, plus project costs,
4         excluding any property assembly costs incurred by a
5         political subdivision pursuant to this Act;
6         (j) costs of common areas located within the boundaries
7     of a STAR bond district;
8         (k) costs of landscaping and plantings, retaining
9     walls and fences, man-made lakes and ponds, shelters,
10     benches, lighting, and similar amenities located within
11     the boundaries of a STAR bond district;
12         (l) costs of mounted building signs, site monument, and
13     pylon signs located within the boundaries of a STAR bond
14     district; or
15         (m) if included in the STAR bond district plan and
16     approved in writing by the Director, salaries or a portion
17     of salaries for local government employees to the extent
18     the same are directly attributable to the work of such
19     employees on the establishment and management of a STAR
20     bond district or any STAR bond projects.
21     Except as specified in items (a) through (m), "project
22 costs" shall not include:
23         (i) the cost of construction of buildings that are
24     privately owned or owned by a municipality and leased to a
25     developer or retail user for non-entertainment retail
26     uses;

 

 

09600SB2093ham003 - 21 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 22 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 23 - LRB096 11467 RLJ 41278 a

1 after completion of a STAR bond project, (vi) a general
2 description of the types of any known or proposed developers,
3 users, or tenants of the STAR bond project or projects included
4 in the plan, (vii) a general description of the type,
5 structure, and character of the property or facilities to be
6 developed or improved, (viii) a description of the general land
7 uses to apply to the STAR bond project, and (ix) a general
8 description or an estimate of the type, class, and number of
9 employees to be employed in the operation of the STAR bond
10 project.
11     "State sales tax" means all 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, excluding that portion of the net revenue realized
16 under the Retailers' Occupation Tax Act, the Use Tax Act, the
17 Service Use Tax Act, and the Service Occupation Tax Act from
18 transactions at places of business located within a STAR bond
19 district that is deposited into the Local Government Tax Fund
20 and the County and Mass Transit District Fund.
21     "State sales tax increment" means (i) 100% of that portion
22 of the State sales tax that is in excess of the State sales tax
23 for the same month in the base year, as determined by the
24 Department of Revenue, from transactions at up to 2 destination
25 users, one destination hotel, and one entertainment user
26 located within a STAR bond district, which destination users,

 

 

09600SB2093ham003 - 24 - LRB096 11467 RLJ 41278 a

1 destination hotel, and entertainment user shall be designated
2 by the master developer and approved by the political
3 subdivision and the Director in conjunction with the applicable
4 STAR bond project approval, and (ii) 25% of that portion of the
5 State sales tax that is in excess of the State sales tax for
6 the same month in the base year, as determined by the
7 Department of Revenue, from all other transactions within a
8 STAR bond district. If any portion of State sales taxes are, at
9 the time of formation of a STAR bond district, already subject
10 to tax increment financing under the Tax Increment Allocation
11 Redevelopment Act, then the State sales tax increment for such
12 portion shall be frozen at the base year established in
13 accordance with this Act, and all future incremental increases
14 shall be included in the State sales tax increment under this
15 Act. Any party otherwise entitled to receipt of incremental
16 State sales tax revenues through an existing tax increment
17 financing district shall be entitled to continue to receive
18 such revenues up to the amount frozen in the base year. Nothing
19 in this Act shall affect the prior qualification of existing
20 redevelopment project costs incurred that are eligible for
21 reimbursement under the Tax Increment Allocation Redevelopment
22 Act. In such event, prior to approving a STAR bond district,
23 the political subdivision forming the STAR bond district shall
24 take such action as is necessary, including amending the
25 existing tax increment financing district redevelopment plan,
26 to carry out the provisions of this Act.

 

 

09600SB2093ham003 - 25 - LRB096 11467 RLJ 41278 a

1     "Substantial change" means a change wherein the proposed
2 STAR bond project plan differs substantially in size, scope, or
3 use from the approved STAR bond district plan or STAR bond
4 project plan.
5     "Taxpayer" means an individual, partnership, corporation,
6 limited liability company, trust, estate, or other entity that
7 is subject to the Illinois Income Tax Act.
8     "Total development costs" means the aggregate public and
9 private investment in a STAR bond district, including project
10 costs and other direct and indirect costs related to the
11 development of the STAR bond district.
12     "Traditional retail use" means the operation of a business
13 that derives at least 90% of its annual gross revenue from
14 sales at retail, as that phrase is defined by Section 1 of the
15 Retailers' Occupation Tax Act, but does not include the
16 operations of destination users, entertainment users,
17 restaurants, hotels, retail uses within hotels, or any other
18 non-retail uses.
19     "Vacant" means that portion of the land in a proposed STAR
20 bond district that is not occupied by a building, facility, or
21 other vertical improvement.
 
22     Section 15. Establishment of STAR bond district. The
23 governing body of a municipality may establish a STAR bond
24 district within an eligible area within the municipality or
25 partially outside the boundaries of the municipality in an

 

 

09600SB2093ham003 - 26 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 27 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 28 - LRB096 11467 RLJ 41278 a

1     subdivision within 60 days from the conclusion of the
2     public hearing, then the STAR bond district shall not be
3     established.
4         (3) Upon adoption of a resolution establishing a STAR
5     bond district, the political subdivision shall send a
6     certified copy of such resolution to the Department of
7     Revenue.
8     (c) Upon the establishment of a STAR bond district, the
9 STAR bond district and any STAR bond projects shall be governed
10 by a master development agreement between the political
11 subdivision and the master developer. A STAR bond district that
12 is partially outside the boundaries of a municipality shall
13 only require one master development agreement; the agreement
14 shall be between the municipality and the master developer. In
15 no event shall there be more than one master development
16 agreement governing the terms and conditions of a STAR bond
17 district. The master development agreement shall require the
18 master developer to ensure compliance with the following
19 requirements to reduce the ecological impact of the STAR bond
20 district development: (i) inclusion of pollution prevention,
21 erosion, and sedimentation control plans during construction;
22 (ii) protection of endangered species' habitat and wetlands
23 mitigation; (iii) preservation of at least 20% of the STAR bond
24 district as green space, including lawns, parks, landscaped
25 areas, paths, lakes, ponds, and other water features; (iv)
26 promotion of the use of renewable energy to the extent

 

 

09600SB2093ham003 - 29 - LRB096 11467 RLJ 41278 a

1 commercially feasible; (v) promotion of access to mass transit
2 and bicycle transportation; (vi) implementation of recycling
3 programs during construction and at completed STAR bond
4 projects; (vii) preservation of water quality and promotion of
5 water conservation through the use of techniques such as
6 reusing storm water and landscaping with native and
7 low-maintenance vegetation to reduce the need for irrigation
8 and fertilization; (viii) inclusion of comprehensive lighting
9 programs that reduce light pollution within the STAR bond
10 district; and (ix) promotion of shared parking between
11 different users to reduce the impact on project sites.
12     (d) Upon adoption of the resolution to establish a STAR
13 bond district, the political subdivision shall submit the
14 proposed STAR bond district to the Director for consideration.
15 The Director may only approve a STAR bond district if the
16 Director finds that: (i) the proposed STAR bond district is an
17 eligible area, (ii) the STAR bond district plan includes a
18 projected capital investment of at least $100,000,000, (iii)
19 the STAR bond district plan is reasonably projected to produce
20 at least $100,000,000 of annual gross sales revenues and 500
21 new jobs, (iv) the STAR bond district plan includes potential
22 destination users and a potential entertainment user, (v) the
23 creation of the STAR bond district and STAR bond district plan
24 are in accordance with the purpose of this Act and the public
25 interest, and (vi) the STAR bond district and STAR bond
26 district plan meet any other requirement that the Director

 

 

09600SB2093ham003 - 30 - LRB096 11467 RLJ 41278 a

1 deems appropriate. If a proposed STAR bond district meets all
2 of the foregoing criteria, the Director shall not unreasonably
3 withhold its approval of the proposed STAR bond district. The
4 Director may only approve one STAR bond district within any
5 projected market area. However, the Director may approve
6 additional STAR bond districts in a single projected market
7 area provided that the Director finds that the additional STAR
8 bond district will not thwart the purposes of this Act. The
9 Director shall promptly send a copy of its written findings and
10 approval or denial of a STAR bond district to the requesting
11 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 $100,000,000, 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

 

 

09600SB2093ham003 - 31 - LRB096 11467 RLJ 41278 a

1 until the total development cost exceeds $100,000,000 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 500 jobs existing in the STAR
6 bond district, the State may require the master developer to
7 pay the State a penalty of $1,500 per job under 500 each year
8 until the earlier of (i) the twenty-third anniversary of the
9 first date of distribution of State sales tax revenues from the
10 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 500 jobs have
13 been created in the STAR bond district. Upon creation of 500
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 $100,000,000 in total development costs, or failure to
24 create 500 jobs is due to delays caused by force majeure, as
25 that term shall be defined in the master development agreement.
 

 

 

09600SB2093ham003 - 32 - LRB096 11467 RLJ 41278 a

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;

 

 

09600SB2093ham003 - 33 - LRB096 11467 RLJ 41278 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.

 

 

09600SB2093ham003 - 34 - LRB096 11467 RLJ 41278 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 at least one
16     destination user for the first STAR bond project proposed
17     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 political
24 subdivision must apply to the Department for approval of the
25 STAR bond project plan. An application for approval of a STAR
26 bond project plan must not be approved unless all of the

 

 

09600SB2093ham003 - 35 - LRB096 11467 RLJ 41278 a

1 components of the feasibility study set forth in items (1)
2 through (11) of subsection (b) have been completed and
3 submitted to the Department for review. In addition to
4 reviewing all of the other elements of the STAR bond project
5 plan required under subsection (c), which must be included in
6 the application (which plan must include a letter or letters of
7 intent as required under subdivision (c)(5) in order to receive
8 Director approval), the Director must review the feasibility
9 study and consider all of the components of the feasibility
10 study set forth in items (1) through (11) of subsection (b) of
11 Section 20, including without limitation the economic impact
12 study and the financial benefit of the proposed STAR bond
13 project to the local, regional, and State economies, the
14 proposed adverse impacts on similar businesses and projects as
15 well as municipalities within the market area, and the net
16 effect of the proposed STAR bond project on the local,
17 regional, and State economies. In addition to the economic
18 impact study, the political subdivision must also submit to the
19 Department, as part of its application, the financial and other
20 information that substantiates the basis for the conclusion of
21 the economic impact study, in the form and manner as required
22 by the Department, so that the Department can verify the
23 results of the study. In addition to any other criteria in this
24 subsection, to approve the STAR bond project plan, the Director
25 must be satisfied that the proposed destination user is in fact
26 a true destination user and also find that the STAR bond

 

 

09600SB2093ham003 - 36 - LRB096 11467 RLJ 41278 a

1 project plan is in accordance with the purpose of this Act and
2 the public interest. The Director shall either approve or deny
3 the STAR bond project plan based on the criteria in this
4 subsection.
5     (e) Upon a finding by the planning and zoning commission of
6 the political subdivision that the STAR bond project plan is
7 consistent with the intent of the comprehensive plan for the
8 development of the political subdivision and upon issuance of
9 written approval of the STAR bond project plan from the
10 Director pursuant to subsection (d) of Section 20, the
11 governing body of the political subdivision shall adopt a
12 resolution stating that the political subdivision is
13 considering the adoption of the STAR bond project plan. The
14 resolution shall:
15         (1) give notice that a public hearing will be held to
16     consider the adoption of the STAR bond project plan and fix
17     the date, hour, and place of the public hearing;
18         (2) describe the general boundaries of the STAR bond
19     district within which the STAR bond project will be located
20     and the date of establishment of the STAR bond district;
21         (3) describe the general boundaries of the area
22     proposed to be included within the STAR bond project area;
23         (4) provide that the STAR bond project plan and map of
24     the area to be redeveloped or developed are available for
25     inspection during regular office hours in the offices of
26     the political subdivision; and

 

 

09600SB2093ham003 - 37 - LRB096 11467 RLJ 41278 a

1         (5) contain a summary of the terms and conditions of
2     any proposed project development agreement with the
3     political subdivision.
4     (f) A public hearing shall be conducted to consider the
5 adoption of any STAR bond project plan.
6         (1) The date fixed for the public hearing to consider
7     the adoption of the STAR bond project plan shall be not
8     less than 20 nor more than 90 days following the date of
9     the adoption of the resolution fixing the date of the
10     hearing.
11         (2) A copy of the political subdivision's resolution
12     providing for the public hearing shall be sent by certified
13     mail, return receipt requested, to the governing body of
14     the county. A copy of the political subdivision's
15     resolution providing for the public hearing shall be sent
16     by certified mail, return receipt requested, to each person
17     or persons in whose name the general taxes for the last
18     preceding year were paid on each parcel of land lying
19     within the proposed STAR bond project area within 10 days
20     following the date of the adoption of the resolution. The
21     resolution shall be published once in a newspaper of
22     general circulation in the political subdivision not less
23     than one week nor more than 3 weeks preceding the date
24     fixed for the public hearing. A map or aerial photo clearly
25     delineating the area of land proposed to be included within
26     the STAR bond project area shall be published with the

 

 

09600SB2093ham003 - 38 - LRB096 11467 RLJ 41278 a

1     resolution.
2         (3) The hearing shall be held at a location that is
3     within 20 miles of the STAR bond district, in a facility
4     that can accommodate a large crowd, and in a facility that
5     is accessible to persons with disabilities.
6         (4) At the public hearing, a representative of the
7     political subdivision or master developer shall present
8     the STAR bond project plan. Following the presentation of
9     the STAR bond project plan, all interested persons shall be
10     given an opportunity to be heard. The governing body may
11     continue the date and time of the public hearing.
12     (g) Upon conclusion of the public hearing, the governing
13 body of the political subdivision may adopt the STAR bond
14 project plan by a resolution approving the STAR bond project
15 plan.
16     (h) After the adoption by the corporate authorities of the
17 political subdivision of a STAR bond project plan, the
18 political subdivision may enter into a project development
19 agreement if the master developer has requested the political
20 subdivision to be a party to the project development agreement
21 pursuant to subsection (b) of Section 25.
22     (i) Within 30 days after the adoption by the political
23 subdivision of a STAR bond project plan, the clerk of the
24 political subdivision shall transmit a copy of the legal
25 description of the land and a list of all new and existing
26 mailing addresses within the STAR bond district, a copy of the

 

 

09600SB2093ham003 - 39 - LRB096 11467 RLJ 41278 a

1 resolution adopting the STAR bond project plan, and a map or
2 plat indicating the boundaries of the STAR bond project area to
3 the clerk, treasurer, and governing body of the county and to
4 the Department of Revenue. Within 30 days of creation of any
5 new mailing addresses within a STAR bond district, the clerk of
6 the political subdivision shall provide written notice of such
7 new addresses to the Department of Revenue.
8     If a certified copy of the resolution adopting the STAR
9 bond project plan is filed with the Department on or before the
10 first day of April, the Department, if all other requirements
11 of this subsection are met, shall proceed to collect and
12 allocate any local sales tax increment and any State sales tax
13 increment in accordance with the provisions of this Act as of
14 the first day of July next following the adoption and filing.
15 If a certified copy of the resolution adopting the STAR bond
16 project plan is filed with the Department after April 1 but on
17 or before the first day of October, the Department, if all
18 other requirements of this subsection are met, shall proceed to
19 collect and allocate any local sales tax increment and any
20 State sales tax increment in accordance with the provisions of
21 this Act as of the first day of January next following the
22 adoption and filing.
23     Any substantial changes to a STAR bond project plan as
24 adopted shall be subject to a public hearing following
25 publication of notice thereof in a newspaper of general
26 circulation in the political subdivision and approval by

 

 

09600SB2093ham003 - 40 - LRB096 11467 RLJ 41278 a

1 resolution of the governing body of the political subdivision.
2     The Department of Revenue shall not collect or allocate any
3 local sales tax increment or State sales tax increment, until
4 the political subdivision also provides, in the manner
5 prescribed by the Department, the boundaries of the STAR bond
6 project area and each address in the STAR bond project area in
7 such a way that the Department can determine by its address
8 whether a business is located in the STAR bond project area.
9 The political subdivision must provide this boundary and
10 address information to the Department on or before April 1 for
11 administration and enforcement under this Act by the Department
12 beginning on the following July 1 and on or before October 1
13 for administration and enforcement under this Act by the
14 Department beginning on the following January 1. The Department
15 of Revenue shall not administer or enforce any change made to
16 the boundaries of a STAR bond project or any address change,
17 addition, or deletion until the political subdivision reports
18 the boundary change or address change, addition, or deletion to
19 the Department in the manner prescribed by the Department. The
20 political subdivision must provide this boundary change or
21 address change, addition, or deletion information to the
22 Department on or before April 1 for administration and
23 enforcement by the Department of the change, addition, or
24 deletion beginning on the following July 1 and on or before
25 October 1 for administration and enforcement by the Department
26 of the change, addition, or deletion beginning on the following

 

 

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1 January 1. If a retailer is incorrectly included or excluded
2 from the list of those located in the STAR bond project, the
3 Department of Revenue shall be held harmless if it reasonably
4 relied on information provided by the political subdivision.
5     (j) Any STAR bond project must be approved by the political
6 subdivision prior to that date which is 23 years from the date
7 of the approval of the STAR bond district, provided however
8 that any amendments to such STAR bond project may occur
9 following such date.
10     (k) Any developer of a STAR bond project shall commence
11 work on the STAR bond project within 3 years from the date of
12 adoption of the STAR bond project plan. If the developer fails
13 to commence work on the STAR bond project within the 3-year
14 period, funding for the project shall cease and the developer
15 of the project or complex shall have one year to appeal to the
16 political subdivision for reapproval of the project and
17 funding. If the project is reapproved, the 3-year period for
18 commencement shall begin again on the date of the reapproval.
19     (l) After the adoption by the corporate authorities of the
20 political subdivision of a STAR bond project plan and approval
21 of the Director pursuant to subsection (d) of Section 20, the
22 political subdivision may authorize the issuance of the STAR
23 bonds in one or more series to finance the STAR bond project in
24 accordance with the provisions of this Act.
25     (m) The maximum maturity of STAR bonds issued to finance a
26 STAR bond project shall not exceed 23 years from the first date

 

 

09600SB2093ham003 - 42 - LRB096 11467 RLJ 41278 a

1 of distribution of State sales tax revenues from such STAR bond
2 project to the political subdivision, unless the political
3 subdivision extends such maturity by resolution up to a maximum
4 of 35 years from such first distribution date. Any such
5 extension shall require the approval of the Director. In no
6 event shall the maximum maturity date for any STAR bonds exceed
7 that date which is 35 years from the first distribution date of
8 the first STAR bonds issued in a STAR bond district.
 
9     Section 25. Co-developers and subdevelopers. Upon approval
10 of a STAR bond project by the political subdivision, the master
11 developer may, subject to the approval of the Director and the
12 political subdivision, develop the STAR bond project on its own
13 or it may develop the STAR bond project with another developer,
14 which may include an assignment or transfer of development
15 rights.
16     (a) A master developer may sell, lease, or otherwise convey
17 its property interest in the STAR bond project area to a
18 co-developer or subdeveloper.
19     (b) A master developer may enter into one or more
20 agreements with a co-developer or subdeveloper in connection
21 with a STAR bond project, and the master developer may request
22 that the political subdivision become a party to the project
23 development agreement, or the master developer may request that
24 the political subdivision amend its master development
25 agreement to provide for certain terms and conditions that may

 

 

09600SB2093ham003 - 43 - LRB096 11467 RLJ 41278 a

1 be related to the co-developer or subdeveloper and the STAR
2 bond project. For any project development agreement which the
3 political subdivision would be a party or for any amendments to
4 the master development agreement, the terms and conditions must
5 be acceptable to both the master developer and the political
6 subdivision.
 
7     Section 30. STAR bonds; source of payment. Any political
8 subdivision shall have the power to issue STAR bonds in one or
9 more series to finance the undertaking of any STAR bond project
10 in accordance with the provisions of this Act and the Omnibus
11 Bond Acts. STAR bonds may be issued as revenue bonds, alternate
12 bonds, or general obligation bonds as defined in and subject to
13 the procedures provided in the Local Government Debt Reform
14 Act.
15     (a) STAR bonds may be made payable, both as to principal
16 and interest, from the following revenues, which to the extent
17 pledged by each respective political subdivision or other
18 public entity for such purpose shall constitute pledged STAR
19 revenues:
20         (1) revenues of the political subdivision derived from
21     or held in connection with the undertaking and carrying out
22     of any STAR bond project or projects under this Act;
23         (2) available private funds and contributions, grants,
24     tax credits, or other financial assistance from the State
25     or federal government;

 

 

09600SB2093ham003 - 44 - LRB096 11467 RLJ 41278 a

1         (3) STAR bond occupation taxes created pursuant to
2     Section 31 and designated as pledged STAR revenues by the
3     political subdivision;
4         (4) all of the local sales tax increment of a
5     municipality, county, or other unit of local government;
6         (5) any special service area taxes collected within the
7     STAR bond district under the Special Service Area Tax Act,
8     may be used for the purposes of funding project costs or
9     paying debt service on STAR bonds in addition to the
10     purposes contained in the special service area plan;
11         (6) all of the State sales tax increment;
12         (7) any other revenues appropriated by the political
13     subdivision; and
14         (8) any combination of these methods.
15     (b) The political subdivision may pledge the pledged STAR
16 revenues to the repayment of STAR bonds prior to,
17 simultaneously with, or subsequent to the issuance of the STAR
18 bonds.
19     (c) Bonds issued as revenue bonds shall not be general
20 obligations of the political subdivision, nor in any event
21 shall they give rise to a charge against its general credit or
22 taxing powers, or be payable out of any funds or properties
23 other than those set forth in subsection (a) and the bonds
24 shall so state on their face.
25     (d) For each STAR bond project financed with STAR bonds
26 payable from the pledged STAR revenues, the political

 

 

09600SB2093ham003 - 45 - LRB096 11467 RLJ 41278 a

1 subdivision shall prepare and submit to the Department of
2 Revenue by June 1 of each year a report describing the status
3 of the STAR bond project, any expenditures of the proceeds of
4 STAR bonds that have occurred for the preceding calendar year,
5 and any expenditures of the proceeds of the bonds expected to
6 occur in the future, including the amount of pledged STAR
7 revenue, the amount of revenue that has been spent, the
8 projected amount of the revenue, and the anticipated use of the
9 revenue. Each annual report shall be accompanied by an
10 affidavit of the master developer certifying the contents of
11 the report as true to the best of the master developer's
12 knowledge. The Department of Revenue shall have the right, but
13 not the obligation, to request the Illinois Auditor General to
14 review the annual report and the political subdivision's
15 records containing the source information for the report for
16 the purpose of verifying the report's contents. If the Illinois
17 Auditor General declines the request for review, the Department
18 of Revenue shall have the right to select an independent
19 third-party auditor to conduct an audit of the annual report
20 and the political subdivision's records containing the source
21 information for the report. The reasonable cost of the audit
22 shall be paid by the master developer. The master development
23 agreement shall grant the Department of Revenue and the
24 Illinois Auditor General the right to review the records of the
25 political subdivision containing the source information for
26 the report.

 

 

09600SB2093ham003 - 46 - LRB096 11467 RLJ 41278 a

1     (e) There is created in the State treasury a special fund
2 to be known as the STAR Bonds Revenue Fund. As soon as possible
3 after the first day of each month, beginning January 1, 2011,
4 upon certification of the Department of Revenue, the
5 Comptroller shall order transferred, and the Treasurer shall
6 transfer, from the General Revenue Fund to the STAR Bonds
7 Revenue Fund the State sales tax increment for the second
8 preceding month, less 3% of that amount, which shall be
9 transferred into the Tax Compliance and Administration Fund and
10 shall be used by the Department, subject to appropriation, to
11 cover the costs of the Department in administering the
12 Innovation Development and Economy Act. As soon as possible
13 after the first day of each month, beginning January 1, 2011,
14 upon certification of the Department of Revenue, the
15 Comptroller shall order transferred, and the Treasurer shall
16 transfer, from the Local Government Tax Fund to the STAR Bonds
17 Revenue Fund the local sales tax increment for the second
18 preceding month, as provided in Section 6z-18 of the State
19 Finance Act and from the County and Mass Transit District Fund
20 to the STAR Bonds Revenue Fund the local sales tax increment
21 for the second preceding month, as provided in Section 6z-20 of
22 the State Finance Act.
23     On or before the 25th day of each calendar month, beginning
24 on January 1, 2011, the Department shall prepare and certify to
25 the Comptroller the disbursement of stated sums of money out of
26 the STAR Bonds Revenue Fund to named municipalities and

 

 

09600SB2093ham003 - 47 - LRB096 11467 RLJ 41278 a

1 counties, the municipalities and counties to be those entitled
2 to distribution of taxes or penalties paid to the Department
3 during the second preceding calendar month. The amount to be
4 paid to each municipality or county shall be the amount of the
5 State sales tax increment and the local sales tax increment
6 (not including credit memoranda or the amount transferred into
7 the Tax Compliance and Administration Fund) collected during
8 the second preceding calendar month by the Department from
9 retailers and servicemen on transactions at places of business
10 located within a STAR bond district in that municipality or
11 county, plus an amount the Department determines is necessary
12 to offset any amounts which were erroneously paid to a
13 different taxing body, and not including an amount equal to the
14 amount of refunds made during the second preceding calendar
15 month by the Department, and not including any amount which the
16 Department determines is necessary to offset any amounts which
17 are payable to a different taxing body but were erroneously
18 paid to the municipality or county. Within 10 days after
19 receipt, by the Comptroller, of the disbursement certification
20 to the municipalities and counties, provided for in this
21 Section to be given to the Comptroller by the Department, the
22 Comptroller shall cause the orders to be drawn for the
23 respective amounts in accordance with the directions contained
24 in such certification.
25     When certifying the amount of monthly disbursement to a
26 municipality or county under this subsection, the Department

 

 

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1 shall increase or decrease that amount by an amount necessary
2 to offset any misallocation of previous disbursements. The
3 offset amount shall be the amount erroneously disbursed within
4 the 6 months preceding the time a misallocation is discovered.
5     (f) As of the seventh anniversary of the first date of
6 distribution of State sales tax revenues from the first STAR
7 bond project in the STAR bond district, and as of every fifth
8 anniversary thereafter until final maturity of all STAR bonds
9 issued in a STAR bond district, the portion of the aggregate
10 proceeds of STAR bonds issued to date that is derived from the
11 State sales tax increment pledged to pay STAR bonds in any STAR
12 bond district shall not exceed 50% of the total development
13 costs in the STAR bond district to date. The Illinois Auditor
14 General shall make the foregoing determination on said seventh
15 anniversary and every 5 years thereafter until final maturity
16 of all STAR bonds issued in a STAR bond district. If at any
17 time after the seventh anniversary of the first date of
18 distribution of State sales tax revenues from the first STAR
19 bond project in the STAR bond district the Illinois Auditor
20 General determines that the portion of the aggregate proceeds
21 of STAR bonds issued to date that is derived from the State
22 sales tax increment pledged to pay STAR bonds in any STAR bond
23 district has exceeded 50% of the total development costs in the
24 STAR bond district, no additional STAR bonds may be issued in
25 the STAR bond district until the percentage is reduced to 50%
26 or below. When the percentage has been reduced to 50% or below,

 

 

09600SB2093ham003 - 49 - LRB096 11467 RLJ 41278 a

1 the master developer shall have the right, at its own cost, to
2 obtain a new audit prepared by an independent third-party
3 auditor verifying compliance and shall provide such audit to
4 the Illinois Auditor General for review and approval. Upon the
5 Illinois Auditor General's determination from the audit that
6 the percentage has been reduced to 50% or below, STAR bonds may
7 again be issued in the STAR bond district.
8     (g) Notwithstanding the provisions of the Tax Increment
9 Allocation Redevelopment Act, if any portion of property taxes
10 attributable to the increase in equalized assessed value within
11 a STAR bond district are, at the time of formation of the STAR
12 bond district, already subject to tax increment financing under
13 the Tax Increment Allocation Redevelopment Act, then the tax
14 increment for such portion shall be frozen at the base year
15 established in accordance with this Act, and all future
16 incremental increases over the base year shall not be subject
17 to tax increment financing under the Tax Increment Allocation
18 Redevelopment Act. Any party otherwise entitled to receipt of
19 incremental tax revenues through an existing tax increment
20 financing district shall be entitled to continue to receive
21 such revenues up to the amount frozen in the base year. Nothing
22 in this Act shall affect the prior qualification of existing
23 redevelopment project costs incurred that are eligible for
24 reimbursement under the Tax Increment Allocation Redevelopment
25 Act. In such event, prior to approving a STAR bond district,
26 the political subdivision forming the STAR bond district shall

 

 

09600SB2093ham003 - 50 - LRB096 11467 RLJ 41278 a

1 take such action as is necessary, including amending the
2 existing tax increment financing district redevelopment plan,
3 to carry out the provisions of this Act.
 
4     Section 31. STAR bond occupation taxes.
5     (a) If the corporate authorities of a political subdivision
6 have established a STAR bond district and have elected to
7 impose a tax by ordinance pursuant to subsection (b) or (c) of
8 this Section, each year after the date of the adoption of the
9 ordinance and until all STAR bond project costs and all
10 political subdivision obligations financing the STAR bond
11 project costs, if any, have been paid in accordance with the
12 STAR bond project plans, but in no event longer than the
13 maximum maturity date of the last of the STAR bonds issued for
14 projects in the STAR bond district, all amounts generated by
15 the retailers' occupation tax and service occupation tax shall
16 be collected and the tax shall be enforced by the Department of
17 Revenue in the same manner as all retailers' occupation taxes
18 and service occupation taxes imposed in the political
19 subdivision imposing the tax. The corporate authorities of the
20 political subdivision shall deposit the proceeds of the taxes
21 imposed under subsections (b) and (c) into either (i) a special
22 fund held by the corporate authorities of the political
23 subdivision called the STAR Bonds Tax Allocation Fund for the
24 purpose of paying STAR bond project costs and obligations
25 incurred in the payment of those costs if such taxes are

 

 

09600SB2093ham003 - 51 - LRB096 11467 RLJ 41278 a

1 designated as pledged STAR revenues by resolution or ordinance
2 of the political subdivision or (ii) the political
3 subdivision's general corporate fund if such taxes are not
4 designated as pledged STAR revenues by resolution or ordinance.
5     The tax imposed under this Section by a municipality may be
6 imposed only on the portion of a STAR bond district that is
7 within the boundaries of the municipality. For any part of a
8 STAR bond district that lies outside of the boundaries of that
9 municipality, the municipality in which the other part of the
10 STAR bond district lies (or the county, in cases where a
11 portion of the STAR bond district lies in the unincorporated
12 area of a county) is authorized to impose the tax under this
13 Section on that part of the STAR bond district.
14     (b) The corporate authorities of a political subdivision
15 that has established a STAR bond district under this Act may,
16 by ordinance or resolution, impose a STAR Bond Retailers'
17 Occupation Tax upon all persons engaged in the business of
18 selling tangible personal property, other than an item of
19 tangible personal property titled or registered with an agency
20 of this State's government, at retail in the STAR bond district
21 at a rate not to exceed 1% of the gross receipts from the sales
22 made in the course of that business, to be imposed only in
23 0.25% increments. The tax may not be imposed on food for human
24 consumption that is to be consumed off the premises where it is
25 sold (other than alcoholic beverages, soft drinks, and food
26 that has been prepared for immediate consumption),

 

 

09600SB2093ham003 - 52 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 53 - LRB096 11467 RLJ 41278 a

1 through 2-65 (in respect to all provisions therein other than
2 the State rate of tax), 2c through 2h, 3 (except as to the
3 disposition of taxes and penalties collected), 4, 5, 5a, 5b,
4 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
5 11, 12, 13, and 14 of the Retailers' Occupation Tax Act and all
6 provisions of the Uniform Penalty and Interest Act, as fully as
7 if those provisions were set forth herein.
8     If a tax is imposed under this subsection (b), a tax shall
9 also be imposed under subsection (c) of this Section.
10     (c) If a tax has been imposed under subsection (b), a STAR
11 Bond Service Occupation Tax shall also be imposed upon all
12 persons engaged, in the STAR bond district, in the business of
13 making sales of service, who, as an incident to making those
14 sales of service, transfer tangible personal property within
15 the STAR bond district, either in the form of tangible personal
16 property or in the form of real estate as an incident to a sale
17 of service. The tax shall be imposed at the same rate as the
18 tax imposed in subsection (b) and shall not exceed 1% of the
19 selling price of tangible personal property so transferred
20 within the STAR bond district, to be imposed only in 0.25%
21 increments. The tax may not be imposed on food for human
22 consumption that is to be consumed off the premises where it is
23 sold (other than alcoholic beverages, soft drinks, and food
24 that has been prepared for immediate consumption),
25 prescription and nonprescription medicines, drugs, medical
26 appliances, modifications to a motor vehicle for the purpose of

 

 

09600SB2093ham003 - 54 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 55 - LRB096 11467 RLJ 41278 a

1 (in respect to all provisions therein other than the State rate
2 of tax), 4 (except that the reference to the State shall be to
3 the STAR bond district), 5, 7, 8 (except that the jurisdiction
4 to which the tax shall be a debt to the extent indicated in
5 that Section 8 shall be the political subdivision), 9 (except
6 as to the disposition of taxes and penalties collected, and
7 except that the returned merchandise credit for this tax may
8 not be taken against any State tax), 10, 11, 12 (except the
9 reference therein to Section 2b of the Retailers' Occupation
10 Tax Act), 13 (except that any reference to the State shall mean
11 the political subdivision), the first paragraph of Section 15,
12 and Sections 16, 17, 18, 19 and 20 of the Service Occupation
13 Tax Act and all provisions of the Uniform Penalty and Interest
14 Act, as fully as if those provisions were set forth herein.
15     If a tax is imposed under this subsection (c), a tax shall
16 also be imposed under subsection (b) of this Section.
17     (d) Persons subject to any tax imposed under this Section
18 may reimburse themselves for their seller's tax liability under
19 this Section by separately stating the tax as an additional
20 charge, which charge may be stated in combination, in a single
21 amount, with State taxes that sellers are required to collect
22 under the Use Tax Act, in accordance with such bracket
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

 

 

09600SB2093ham003 - 56 - LRB096 11467 RLJ 41278 a

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 STAR bond retailers' occupation tax fund.
5     The Department shall immediately pay over to the State
6 Treasurer, ex officio, as trustee, all taxes, penalties, and
7 interest collected under this Section for deposit into the STAR
8 bond retailers' occupation tax fund. On or before the 25th day
9 of each calendar month, the Department shall prepare and
10 certify to the Comptroller the disbursement of stated sums of
11 money to named political subdivisions from the STAR bond
12 retailers' occupation tax fund, the political subdivisions to
13 be those from which retailers have paid taxes or penalties
14 under this Section to the Department during the second
15 preceding calendar month. The amount to be paid to each
16 political subdivision shall be the amount (not including credit
17 memoranda) collected under this Section during the second
18 preceding calendar month by the Department plus an amount the
19 Department determines is necessary to offset any amounts that
20 were erroneously paid to a different taxing body, and not
21 including an amount equal to the amount of refunds made during
22 the second preceding calendar month by the Department, less 3%
23 of that amount, which shall be deposited into the Tax
24 Compliance and Administration Fund and shall be used by the
25 Department, subject to appropriation, to cover the costs of the
26 Department in administering and enforcing the provisions of

 

 

09600SB2093ham003 - 57 - LRB096 11467 RLJ 41278 a

1 this Section, on behalf of such political subdivision, and not
2 including any amount that the Department determines is
3 necessary to offset any amounts that were payable to a
4 different taxing body but were erroneously paid to the
5 political subdivision. Within 10 days after receipt by the
6 Comptroller of the disbursement certification to the political
7 subdivisions provided for in this Section to be given to the
8 Comptroller by the Department, the Comptroller shall cause the
9 orders to be drawn for the respective amounts in accordance
10 with the directions contained in the certification. The
11 proceeds of the tax paid to political subdivisions under this
12 Section shall be deposited into either (i) the STAR Bonds Tax
13 Allocation Fund by the political subdivision if the political
14 subdivision has designated them as pledged STAR revenues by
15 resolution or ordinance or (ii) the political subdivision's
16 general corporate fund if the political subdivision has not
17 designated them as pledged STAR revenues.
18     An ordinance or resolution imposing or discontinuing the
19 tax under this Section or effecting a change in the rate
20 thereof shall either (i) be adopted and a certified copy
21 thereof filed with the Department on or before the first day of
22 April, whereupon the Department, if all other requirements of
23 this Section are met, shall proceed to administer and enforce
24 this Section as of the first day of July next following the
25 adoption and filing; or (ii) be adopted and a certified copy
26 thereof filed with the Department on or before the first day of

 

 

09600SB2093ham003 - 58 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 59 - LRB096 11467 RLJ 41278 a

1 change, addition, or deletion beginning on the following July 1
2 and on or before October 1 for administration and enforcement
3 by the Department of the change, addition, or deletion
4 beginning on the following January 1. The retailers in the STAR
5 bond district shall be responsible for charging the tax imposed
6 under this Section. If a retailer is incorrectly included or
7 excluded from the list of those required to collect the tax
8 under this Section, both the Department of Revenue and the
9 retailer shall be held harmless if they reasonably relied on
10 information provided by the political subdivision.
11     A political subdivision that imposes the tax under this
12 Section must submit to the Department of Revenue any other
13 information as the Department may require that is necessary for
14 the administration and enforcement of the tax.
15     When certifying the amount of a monthly disbursement to a
16 political subdivision under this Section, the Department shall
17 increase or decrease the amount by an amount necessary to
18 offset any misallocation of previous disbursements. The offset
19 amount shall be the amount erroneously disbursed within the
20 previous 6 months from the time a misallocation is discovered.
21     Nothing in this Section shall be construed to authorize the
22 political subdivision to impose a tax upon the privilege of
23 engaging in any business which under the Constitution of the
24 United States may not be made the subject of taxation by this
25 State.
26     (e) When STAR bond project costs, including, without

 

 

09600SB2093ham003 - 60 - LRB096 11467 RLJ 41278 a

1 limitation, all political subdivision obligations financing
2 STAR bond project costs, have been paid, any surplus funds then
3 remaining in the STAR Bonds Tax Allocation Fund shall be
4 distributed to the treasurer of the political subdivision for
5 deposit into the political subdivision's general corporate
6 fund. Upon payment of all STAR bond project costs and
7 retirement of obligations, but in no event later than the
8 maximum maturity date of the last of the STAR bonds issued in
9 the STAR bond district, the political subdivision shall adopt
10 an ordinance immediately rescinding the taxes imposed pursuant
11 to this Section and file a certified copy of the ordinance with
12 the Department in the form and manner as described in this
13 Section.
 
14     Section 33. STAR Bonds School Improvement and Operations
15 Trust Fund.
16     (a) The STAR Bonds School Improvement and Operations Trust
17 Fund is created as a trust fund in the State treasury. Deposits
18 into the Trust Fund shall be made as provided under this
19 Section. Moneys in the Trust Fund shall be used by the
20 Department of Revenue only for the purpose of making payments
21 to school districts in educational service regions that include
22 or are adjacent to the STAR bond district. Moneys in the Trust
23 Fund are not subject to appropriation and shall be used solely
24 as provided in this Section. All deposits into the Trust Fund
25 shall be held in the Trust Fund by the State Treasurer as ex

 

 

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1 officio custodian separate and apart from all public moneys or
2 funds of this State and shall be administered by the Department
3 exclusively for the purposes set forth in this Section. All
4 moneys in the Trust Fund shall be invested and reinvested by
5 the State Treasurer. All interest accruing from these
6 investments shall be deposited in the Trust Fund.
7     (b) Upon approval of a STAR bond district, the political
8 subdivision shall immediately transmit to the county clerk of
9 the county in which the district is located a certified copy of
10 the ordinance creating the district, a legal description of the
11 district, a map of the district, identification of the year
12 that the county clerk shall use for determining the total
13 initial equalized assessed value of the district consistent
14 with subsection (c), and a list of the parcel or tax
15 identification number of each parcel of property included in
16 the district.
17     (c) Upon approval of a STAR bond district, the county clerk
18 immediately thereafter shall determine (i) the most recently
19 ascertained equalized assessed value of each lot, block, tract,
20 or parcel of real property within the STAR bond district, from
21 which shall be deducted the homestead exemptions under Article
22 15 of the Property Tax Code, which value shall be the initial
23 equalized assessed value of each such piece of property, and
24 (ii) the total equalized assessed value of all taxable real
25 property within the district by adding together the most
26 recently ascertained equalized assessed value of each taxable

 

 

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

 

 

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1 shall compute the tax rates for each taxing district with all
2 or a portion of its equalized assessed value located in the
3 STAR bond district. The rate per cent of tax determined shall
4 be extended to the current equalized assessed value of all
5 property in the district in the same manner as the rate per
6 cent of tax is extended to all other taxable property in the
7 taxing district.
8     (f) Beginning with the assessment year in which the first
9 destination user in the first STAR bond project in a STAR bond
10 district makes its first retail sales and for each assessment
11 year thereafter until final maturity of the last STAR bonds
12 issued in the district, the county clerk or other person
13 authorized by law shall determine the increase in equalized
14 assessed value of all real property within the STAR bond
15 district by subtracting the initial equalized assessed value of
16 all property in the district certified under subsection (c)
17 from the current equalized assessed value of all property in
18 the district. Each year, the property taxes arising from the
19 increase in equalized assessed value in the STAR bond district
20 shall be determined for each taxing district and shall be
21 certified to the county collector.
22     (g) Beginning with the year in which taxes are collected
23 based on the assessment year in which the first destination
24 user in the first STAR bond project in a STAR bond district
25 makes its first retail sales and for each year thereafter until
26 final maturity of the last STAR bonds issued in the district,

 

 

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1 the county collector shall, within 30 days after receipt of
2 property taxes, transmit to the Department to be deposited into
3 the STAR Bonds School Improvement and Operations Trust Fund 15%
4 of property taxes attributable to the increase in equalized
5 assessed value within the STAR bond district from each taxing
6 district as certified in subsection (f).
7     (h) The Department shall pay to the regional superintendent
8 of schools whose educational service region includes Franklin
9 and Williamson Counties, for each year for which money is
10 remitted to the Department and paid into the STAR Bonds School
11 Improvement and Operations Trust Fund, the money in the Fund as
12 provided in this Section. The amount paid to each school
13 district shall be allocated proportionately, based on each
14 qualifying school district's fall enrollment for the
15 then-current school year, such that the school district with
16 the largest fall enrollment receives the largest proportionate
17 share of money paid out of the Fund or by any other method or
18 formula that the regional superintendent of schools deems fit,
19 equitable, and in the public interest. The regional
20 superintendent may allocate moneys to school districts that are
21 outside of his or her educational service region or to other
22 regional superintendents.
23     The Department shall determine the distributions under
24 this Section using its best judgment and information. The
25 Department shall be held harmless for the distributions made
26 under this Section and all distributions shall be final.

 

 

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1     (i) In any year that an assessment appeal is filed, the
2 extension of taxes on any assessment so appealed shall not be
3 delayed. In the case of an assessment that is altered, any
4 taxes extended upon the unauthorized assessment or part thereof
5 shall be abated, or, if already paid, shall be refunded with
6 interest as provided in Section 23-20 of the Property Tax Code.
7 In the case of an assessment appeal, the county collector shall
8 notify the Department that an assessment appeal has been filed
9 and the amount of the tax that would have been deposited in the
10 STAR Bond School Improvement Fund. The county collector shall
11 hold that amount in a separate fund until the appeal process is
12 final. After the appeal process is finalized, the county
13 collector shall transmit to the Department the amount of tax
14 that remains, if any, after all required refunds are made. The
15 Department shall pay any amount deposited into the Trust Fund
16 under this Section in the same proportion as determined for
17 payments for that taxable year under subsection (h).
18     (j) In any year that ad valorem taxes are allocated to the
19 STAR Bonds School Improvement and Operations Trust Fund, that
20 allocation shall not reduce or otherwise impact the school aid
21 provided to any school district under the general State school
22 aid formula provided for in Section 18-8.05 of the School Code.
 
23     Section 35. Alternate bonds and general obligation bonds. A
24 political subdivision shall have the power to issue alternate
25 revenue and other general obligation bonds to finance the

 

 

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

 

 

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1 a STAR bond district at the request of the master developer and
2 by approval of the political subdivision, provided that the
3 land becomes a part of a STAR bond project area.
4     (c) If a political subdivision has undertaken a STAR bond
5 project within a STAR bond district, and the political
6 subdivision desires to subsequently remove more than a de
7 minimus amount of real property from the STAR bond district,
8 then prior to any removal of property the political subdivision
9 must provide a revised feasibility study showing that the
10 pledged STAR revenues from the resulting STAR bond district
11 within which the STAR bond project is located are estimated to
12 be sufficient to pay the project costs. If the revenue from the
13 resulting STAR bond district is insufficient to pay the project
14 costs, then the property may not be removed from the STAR bond
15 district. Any removal of real property from a STAR bond
16 district shall be approved by a resolution of the governing
17 body of the political subdivision.
 
18     Section 45. Restrictions. STAR bond districts may lie
19 within an enterprise zone, but no portion of a STAR bond
20 project shall be financed with funds allocated pursuant to the
21 Illinois Enterprise Zone Act. STAR bond districts may overlay
22 and benefit from existing tax increment financing districts
23 created pursuant to the Tax Increment Allocation Redevelopment
24 Act, but no portion of a STAR bond project shall be financed
25 with tax increment financing under said Act. During any period

 

 

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1 of time that STAR bonds are outstanding for a STAR bond
2 district, a developer may not use any land located in the STAR
3 bond district for any (i) retail store whose primary business
4 is the sale of automobiles, including trucks and other
5 automotive vehicles with 4 wheels designed for passenger
6 transportation on public streets and thoroughfares or (ii)
7 multi-screen motion picture theater complexes containing more
8 than 12 auditoriums for viewing motion pictures. No STAR bond
9 district may contain more than 900,000 square feet of floor
10 space devoted to traditional retail use.
 
11     Section 50. Reporting taxes. Notwithstanding any other
12 provisions of law to the contrary, the Department of Revenue
13 shall provide a certified report of the State sales tax
14 increment and local sales tax increment from all taxpayers
15 within a STAR bond district to the bond trustee, escrow agent,
16 or paying agent for such bonds upon the written request of the
17 political subdivision on or before the 25th day of each month.
18 Such report shall provide a detailed allocation of State sales
19 tax increment and local sales tax increment from each local
20 sales tax and State sales tax reported to the Department of
21 Revenue.
22     (a) The bond trustee, escrow agent, or paying agent shall
23 keep such sales and use tax reports and the information
24 contained therein confidential, but may use such information
25 for purposes of allocating and depositing the sales and use tax

 

 

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1 revenues in connection with the bonds used to finance project
2 costs in such STAR bond district. Except as otherwise provided
3 herein, the sales and use tax reports received by the bond
4 trustee, escrow agent, or paying agent shall be subject to the
5 provisions of Chapter 35 of the Illinois Compiled Statutes,
6 including Section 3 of the Retailers' Occupation Tax Act and
7 Section 9 of the Use Tax Act.
8     (b) The political subdivision shall determine when the
9 amount of sales tax and other revenues that have been collected
10 and distributed to the bond debt service or reserve fund is
11 sufficient to satisfy all principal and interest costs to the
12 maturity date or dates of any STAR bond issued by a political
13 subdivision to finance a STAR bond project and shall give the
14 Department of Revenue written notice of such determination. The
15 notice shall include a date certain on which deposits into the
16 STAR Bonds Revenue Fund for that STAR bond project shall
17 terminate and shall be provided to the Department of Revenue at
18 least 60 days prior to that date. Thereafter, all sales tax and
19 other revenues shall be collected and distributed in accordance
20 with applicable law.
 
21     Section 52. Review committee. Upon the seventh anniversary
22 of the first date of distribution of State sales tax revenues
23 from the first STAR bond project in the State, a 6-member STAR
24 bonds review committee shall be formed consisting of one
25 appointee of each of the Director, the Director of the

 

 

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1 Department of Commerce and Economic Opportunity, the President
2 of the Senate, the Senate Minority Leader, the Speaker of the
3 House, and the House Minority Leader. The review committee
4 shall evaluate the success of all STAR bond districts then
5 existing in the State and make a determination of the
6 comprehensive economic benefits and detriments of STAR bonds in
7 the State as a whole. In making its determination, the review
8 committee shall examine available data regarding job creation,
9 sales revenues, and capital investment in STAR bond districts;
10 development that has occurred and is planned in areas adjacent
11 to STAR bond districts that will not be directly financed with
12 STAR bonds; effects of market conditions on STAR bond districts
13 and the likelihood of future successes based on improving or
14 declining market conditions; retail sales migration and
15 cannibalization of retail sales due to STAR bond districts; and
16 other relevant economic factors. The review committee shall
17 provide the Director, the General Assembly, and the Governor
18 with a written report detailing its findings and shall make a
19 final determination of whether STAR bonds have had, and are
20 likely to continue having, a negative or positive economic
21 impact on the State as a whole. Upon completing and filing its
22 written report, the review committee shall be dissolved. If the
23 review committee's report makes a final determination that STAR
24 bonds have had and are likely to continue having a negative
25 economic impact on the State as a whole, then no new STAR bond
26 districts may thereafter be formed in the State until further

 

 

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1 action by the General Assembly.
 
2     Section 55. Severability. If any provision of this Act or
3 the application thereof to any persons or circumstances is held
4 invalid, such invalidity shall not affect other provisions or
5 application of the Act that can be given effect without the
6 invalid provisions or application and to this end the
7 provisions of this Act are declared to be severable.
 
8     Section 57. Rules. The Department of Revenue shall have the
9 authority to adopt such rules as are reasonable and necessary
10 to implement the provisions of this Act. Notwithstanding the
11 foregoing, the Department of Revenue shall have the authority,
12 prior to adoption and approval of those rules, to approve a
13 STAR bond district in accordance with subsection (d) of Section
14 20 and to otherwise administer the Act while those rules are
15 pending adoption and approval.
 
16     Section 60. Open meetings and freedom of information. All
17 public hearings related to the administration, formation,
18 implementation, development, or construction of a STAR bond
19 district, STAR bond district plan, STAR bond project, or STAR
20 bond project plan, including but not limited to the public
21 hearings required by Sections 15, 20, and 40 of this Act, shall
22 be held in compliance with the Open Meetings Act. The public
23 hearing records, feasibility study, and other documents that do

 

 

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1 not otherwise meet a confidentiality exemption shall be subject
2 to the Freedom of Information Act.
 
3     Section 62. Powers of political subdivisions. The
4 provisions of this Act are intended to be supplemental and in
5 addition to all other power or authority granted to political
6 subdivisions, shall be construed liberally, and shall not be
7 construed as a limitation of any power or authority otherwise
8 granted. In addition to the powers a political subdivision may
9 have under other provisions of law, a political subdivision
10 shall have all of the following powers in connection with a
11 STAR bond district:
12         (a) To make and enter into all contracts necessary or
13     incidental to the implementation and furtherance of a STAR
14     bond district plan.
15         (b) Within a STAR bond district, to acquire by
16     purchase, donation, or lease, and to own, convey, lease,
17     mortgage, or dispose of land and other real or personal
18     property or rights or interests in property and to grant or
19     acquire licenses, easements, and options with respect to
20     property, all in the manner and at a price the political
21     subdivision determines is reasonably necessary to achieve
22     the objectives of the STAR bond project.
23         (c) To clear any area within a STAR bond district by
24     demolition or removal of any existing buildings,
25     structures, fixtures, utilities, or improvements and to

 

 

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1     clear and grade land.
2         (d) To install, repair, construct, reconstruct, extend
3     or relocate public streets, public utilities, and other
4     public site improvements located both within and outside
5     the boundaries of a STAR bond district that are essential
6     to the preparation of a STAR bond district for use in
7     accordance with a STAR bond district plan.
8         (e) To renovate, rehabilitate, reconstruct, relocate,
9     repair, or remodel any existing buildings, improvements,
10     and fixtures within a STAR bond district.
11         (f) To install or construct any public buildings,
12     structures, works, streets, improvements, utilities, or
13     fixtures within a STAR bond district.
14         (g) To issue STAR bonds as provided in this Act.
15         (h) Subject to the limitations set forth in the
16     definition of "project costs" in Section 10 of this Act, to
17     fix, charge, and collect fees, rents, and charges for the
18     use of any building, facility, or property or any portion
19     of a building, facility, or property owned or leased by the
20     political subdivision in furtherance of a STAR bond project
21     under this Act within a STAR bond district.
22         (i) To accept grants, guarantees, donations of
23     property or labor, or any other thing of value for use in
24     connection with a STAR bond project.
25         (j) To pay or cause to be paid STAR bond project costs,
26     including, specifically, to reimburse any developer or

 

 

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1     nongovernmental person for STAR bond project costs
2     incurred by that person. A political subdivision is not
3     required to obtain any right, title, or interest in any
4     real or personal property in order to pay STAR bond project
5     costs associated with the property. The political
6     subdivision shall adopt accounting procedures necessary to
7     determine that the STAR bond project costs are properly
8     paid.
9         (k) To exercise any and all other powers necessary to
10     effectuate the purposes of this Act.
 
11     Section 65. The Illinois State Auditing Act is amended by
12 changing Section 3-1 as follows:
 
13     (30 ILCS 5/3-1)  (from Ch. 15, par. 303-1)
14     Sec. 3-1. Jurisdiction of Auditor General. The Auditor
15 General has jurisdiction over all State agencies to make post
16 audits and investigations authorized by or under this Act or
17 the Constitution.
18     The Auditor General has jurisdiction over local government
19 agencies and private agencies only:
20         (a) to make such post audits authorized by or under
21     this Act as are necessary and incidental to a post audit of
22     a State agency or of a program administered by a State
23     agency involving public funds of the State, but this
24     jurisdiction does not include any authority to review local

 

 

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1     governmental agencies in the obligation, receipt,
2     expenditure or use of public funds of the State that are
3     granted without limitation or condition imposed by law,
4     other than the general limitation that such funds be used
5     for public purposes;
6         (b) to make investigations authorized by or under this
7     Act or the Constitution; and
8         (c) to make audits of the records of local government
9     agencies to verify actual costs of state-mandated programs
10     when directed to do so by the Legislative Audit Commission
11     at the request of the State Board of Appeals under the
12     State Mandates Act.
13     In addition to the foregoing, the Auditor General may
14 conduct an audit of the Metropolitan Pier and Exposition
15 Authority, the Regional Transportation Authority, the Suburban
16 Bus Division, the Commuter Rail Division and the Chicago
17 Transit Authority and any other subsidized carrier when
18 authorized by the Legislative Audit Commission. Such audit may
19 be a financial, management or program audit, or any combination
20 thereof.
21     The audit shall determine whether they are operating in
22 accordance with all applicable laws and regulations. Subject to
23 the limitations of this Act, the Legislative Audit Commission
24 may by resolution specify additional determinations to be
25 included in the scope of the audit.
26     In addition to the foregoing, the Auditor General must also

 

 

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1 conduct a financial audit of the Illinois Sports Facilities
2 Authority's expenditures of public funds in connection with the
3 reconstruction, renovation, remodeling, extension, or
4 improvement of all or substantially all of any existing
5 "facility", as that term is defined in the Illinois Sports
6 Facilities Authority Act.
7     The Auditor General may also conduct an audit, when
8 authorized by the Legislative Audit Commission, of any hospital
9 which receives 10% or more of its gross revenues from payments
10 from the State of Illinois, Department of Healthcare and Family
11 Services (formerly Department of Public Aid), Medical
12 Assistance Program.
13     The Auditor General is authorized to conduct financial and
14 compliance audits of the Illinois Distance Learning Foundation
15 and the Illinois Conservation Foundation.
16     As soon as practical after the effective date of this
17 amendatory Act of 1995, the Auditor General shall conduct a
18 compliance and management audit of the City of Chicago and any
19 other entity with regard to the operation of Chicago O'Hare
20 International Airport, Chicago Midway Airport and Merrill C.
21 Meigs Field. The audit shall include, but not be limited to, an
22 examination of revenues, expenses, and transfers of funds;
23 purchasing and contracting policies and practices; staffing
24 levels; and hiring practices and procedures. When completed,
25 the audit required by this paragraph shall be distributed in
26 accordance with Section 3-14.

 

 

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1     The Auditor General shall conduct a financial and
2 compliance and program audit of distributions from the
3 Municipal Economic Development Fund during the immediately
4 preceding calendar year pursuant to Section 8-403.1 of the
5 Public Utilities Act at no cost to the city, village, or
6 incorporated town that received the distributions.
7     The Auditor General must conduct an audit of the Health
8 Facilities and Services Review Board pursuant to Section 19.5
9 of the Illinois Health Facilities Planning Act.
10     The Auditor General of the State of Illinois shall annually
11 conduct or cause to be conducted a financial and compliance
12 audit of the books and records of any county water commission
13 organized pursuant to the Water Commission Act of 1985 and
14 shall file a copy of the report of that audit with the Governor
15 and the Legislative Audit Commission. The filed audit shall be
16 open to the public for inspection. The cost of the audit shall
17 be charged to the county water commission in accordance with
18 Section 6z-27 of the State Finance Act. The county water
19 commission shall make available to the Auditor General its
20 books and records and any other documentation, whether in the
21 possession of its trustees or other parties, necessary to
22 conduct the audit required. These audit requirements apply only
23 through July 1, 2007.
24     The Auditor General must conduct audits of the Rend Lake
25 Conservancy District as provided in Section 25.5 of the River
26 Conservancy Districts Act.

 

 

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1     The Auditor General must conduct financial audits of the
2 Southeastern Illinois Economic Development Authority as
3 provided in Section 70 of the Southeastern Illinois Economic
4 Development Authority Act.
5     The Auditor General shall conduct a compliance audit in
6 accordance with subsections (d) and (f) of Section 30 of the
7 Innovation Development and Economy Act.
8 (Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
 
9     Section 66. The State Finance Act is amended by changing
10 Sections 6z-18 and 6z-20 and by adding Sections 5.756 and 5.758
11 as follows:
 
12     (30 ILCS 105/5.756 new)
13     Sec. 5.756. The STAR Bonds Revenue Fund.
 
14     (30 ILCS 105/5.758 new)
15     Sec. 5.758. STAR Bonds School Improvement and Operations
16 Trust Fund.
 
17     (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
18     Sec. 6z-18. A portion of the money paid into the Local
19 Government Tax Fund from sales of food for human consumption
20 which is to be consumed off the premises where it is sold
21 (other than alcoholic beverages, soft drinks and food which has
22 been prepared for immediate consumption) and prescription and

 

 

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1 nonprescription medicines, drugs, medical appliances and
2 insulin, urine testing materials, syringes and needles used by
3 diabetics, which occurred in municipalities, shall be
4 distributed to each municipality based upon the sales which
5 occurred in that municipality. The remainder shall be
6 distributed to each county based upon the sales which occurred
7 in the unincorporated area of that county.
8     A portion of the money paid into the Local Government Tax
9 Fund from the 6.25% general use tax rate on the selling price
10 of tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by any agency of this State's government shall be
13 distributed to municipalities as provided in this paragraph.
14 Each municipality shall receive the amount attributable to
15 sales for which Illinois addresses for titling or registration
16 purposes are given as being in such municipality. The remainder
17 of the money paid into the Local Government Tax Fund from such
18 sales shall be distributed to counties. Each county shall
19 receive the amount attributable to sales for which Illinois
20 addresses for titling or registration purposes are given as
21 being located in the unincorporated area of such county.
22     A portion of the money paid into the Local Government Tax
23 Fund from the 6.25% general rate (and, beginning July 1, 2000
24 and through December 31, 2000, the 1.25% rate on motor fuel and
25 gasohol) on sales subject to taxation under the Retailers'
26 Occupation Tax Act and the Service Occupation Tax Act, which

 

 

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1 occurred in municipalities, shall be distributed to each
2 municipality, based upon the sales which occurred in that
3 municipality. The remainder shall be distributed to each
4 county, based upon the sales which occurred in the
5 unincorporated area of such 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     Whenever the Department determines that a refund of money
16 paid into the Local Government Tax Fund should be made to a
17 claimant instead of issuing a credit memorandum, the Department
18 shall notify the State Comptroller, who shall cause the order
19 to be drawn for the amount specified, and to the person named,
20 in such notification from the Department. Such refund shall be
21 paid by the State Treasurer out of the Local Government Tax
22 Fund.
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 Innovation
2 Development and Economy Act, collected during the second
3 preceding calendar month for sales within a STAR bond district
4 and deposited into the Local Government Tax Fund, less 3% of
5 that amount, which shall be transferred into the Tax Compliance
6 and Administration Fund and shall be used by the Department,
7 subject to appropriation, to cover the costs of the Department
8 in administering the Innovation Development and Economy Act.
9     After the monthly transfer to the STAR Bonds Revenue Fund,
10 on On or before the 25th day of each calendar month, the
11 Department shall prepare and certify to the Comptroller the
12 disbursement of stated sums of money to named municipalities
13 and counties, the municipalities and counties to be those
14 entitled to distribution of taxes or penalties paid to the
15 Department during the second preceding calendar month. The
16 amount to be paid to each municipality or county shall be the
17 amount (not including credit memoranda) collected during the
18 second preceding calendar month by the Department and paid into
19 the Local Government Tax Fund, plus an amount the Department
20 determines is necessary to offset any amounts which were
21 erroneously paid to a different taxing body, and not including
22 an amount equal to the amount of refunds made during the second
23 preceding calendar month by the Department, and not including
24 any amount which the Department determines is necessary to
25 offset any amounts which are payable to a different taxing body
26 but were erroneously paid to the municipality or county, and

 

 

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

 

 

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1 replacement revenue for such abolished taxes, distributed from
2 the Local Government Tax Fund.
3 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872,
4 eff. 7-1-00.)
 
5     (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
6     Sec. 6z-20. Of the money received from the 6.25% general
7 rate (and, beginning July 1, 2000 and through December 31,
8 2000, the 1.25% rate on motor fuel and gasohol) on sales
9 subject to taxation under the Retailers' Occupation Tax Act and
10 Service Occupation Tax Act and paid into the County and Mass
11 Transit District Fund, distribution to the Regional
12 Transportation Authority tax fund, created pursuant to Section
13 4.03 of the Regional Transportation Authority Act, for deposit
14 therein shall be made based upon the retail sales occurring in
15 a county having more than 3,000,000 inhabitants. The remainder
16 shall be distributed to each county having 3,000,000 or fewer
17 inhabitants based upon the retail sales occurring in each such
18 county.
19     For the purpose of determining allocation to the local
20 government unit, a retail sale by a producer of coal or other
21 mineral mined in Illinois is a sale at retail at the place
22 where the coal or other mineral mined in Illinois is extracted
23 from the earth. This paragraph does not apply to coal or other
24 mineral when it is delivered or shipped by the seller to the
25 purchaser at a point outside Illinois so that the sale is

 

 

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1 exempt under the United States Constitution as a sale in
2 interstate or foreign commerce.
3     Of the money received from the 6.25% general use tax rate
4 on tangible personal property which is purchased outside
5 Illinois at retail from a retailer and which is titled or
6 registered by any agency of this State's government and paid
7 into the County and Mass Transit District Fund, the amount for
8 which Illinois addresses for titling or registration purposes
9 are given as being in each county having more than 3,000,000
10 inhabitants shall be distributed into the Regional
11 Transportation Authority tax fund, created pursuant to Section
12 4.03 of the Regional Transportation Authority Act. The
13 remainder of the money paid from such sales shall be
14 distributed to each county based on sales for which Illinois
15 addresses for titling or registration purposes are given as
16 being located in the county. Any money paid into the Regional
17 Transportation Authority Occupation and Use Tax Replacement
18 Fund from the County and Mass Transit District Fund prior to
19 January 14, 1991, which has not been paid to the Authority
20 prior to that date, shall be transferred to the Regional
21 Transportation Authority tax fund.
22     Whenever the Department determines that a refund of money
23 paid into the County and Mass Transit District Fund should be
24 made to a claimant instead of issuing a credit memorandum, the
25 Department shall notify the State Comptroller, who shall cause
26 the order to be drawn for the amount specified, and to the

 

 

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1 person named, in such notification from the Department. Such
2 refund shall be paid by the State Treasurer out of the County
3 and Mass Transit District Fund.
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 State sales tax increment, as defined in the Innovation
9 Development and Economy Act, collected during the second
10 preceding calendar month for sales within a STAR bond district
11 and deposited into the County and Mass Transit District Fund,
12 less 3% of that amount, which shall be transferred into the Tax
13 Compliance and Administration Fund and shall be used by the
14 Department, subject to appropriation, to cover the costs of the
15 Department in administering the Innovation Development and
16 Economy Act.
17     After the monthly transfer to the STAR Bonds Revenue Fund,
18 on On or before the 25th day of each calendar month, the
19 Department shall prepare and certify to the Comptroller the
20 disbursement of stated sums of money to the Regional
21 Transportation Authority and to named counties, the counties to
22 be those entitled to distribution, as hereinabove provided, of
23 taxes or penalties paid to the Department during the second
24 preceding calendar month. The amount to be paid to the Regional
25 Transportation Authority and each county having 3,000,000 or
26 fewer inhabitants shall be the amount (not including credit

 

 

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

 

 

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1 special fund in the State Treasury provided for in this Section
2 and from the Regional Transportation Authority tax fund created
3 by Section 4.03 of the Regional Transportation Authority Act
4 shall constitute an irrevocable and continuing appropriation
5 of all amounts as provided herein. The State Treasurer and
6 State Comptroller are hereby authorized to make distributions
7 as provided in this Section.
8     In construing any development, redevelopment, annexation,
9 preannexation or other lawful agreement in effect prior to
10 September 1, 1990, which describes or refers to receipts from a
11 county or municipal retailers' occupation tax, use tax or
12 service occupation tax which now cannot be imposed, such
13 description or reference shall be deemed to include the
14 replacement revenue for such abolished taxes, distributed from
15 the County and Mass Transit District Fund or Local Government
16 Distributive Fund, as the case may be.
17 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
 
18     Section 67. The Counties Code is amended by changing
19 Sections 5-1006, 5-1006.5, and 5-1007 as follows:
 
20     (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
21     Sec. 5-1006. Home Rule County Retailers' Occupation Tax
22 Law. Any county that is a home rule unit may impose a tax upon
23 all persons engaged in the business of selling tangible
24 personal property, other than an item of tangible personal

 

 

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

 

 

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1 compliance with, this Section, the Department and persons who
2 are subject to this Section shall have the same rights,
3 remedies, privileges, immunities, powers and duties, and be
4 subject to the same conditions, restrictions, limitations,
5 penalties and definitions of terms, and employ the same modes
6 of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
7 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
8 provisions therein other than the State rate of tax), 4, 5, 5a,
9 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
10 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
11 Section 3-7 of the Uniform Penalty and Interest Act, as fully
12 as if those provisions were set forth herein.
13     No tax may be imposed by a home rule county pursuant to
14 this Section unless the county also imposes a tax at the same
15 rate pursuant to Section 5-1007.
16     Persons subject to any tax imposed pursuant to the
17 authority granted in this Section may reimburse themselves for
18 their seller's tax liability hereunder by separately stating
19 such tax as an additional charge, which charge may be stated in
20 combination, in a single amount, with State tax which sellers
21 are required to collect under the Use Tax Act, pursuant to such
22 bracket schedules as the Department may prescribe.
23     Whenever the Department determines that a refund should be
24 made under this Section to a claimant instead of issuing a
25 credit memorandum, the Department shall notify the State
26 Comptroller, who shall cause the order to be drawn for the

 

 

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

 

 

09600SB2093ham003 - 91 - LRB096 11467 RLJ 41278 a

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

 

 

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

 

 

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1 enforce this Section as of the first day of October next
2 following such adoption and filing. Beginning January 1, 1993,
3 an ordinance or resolution imposing or discontinuing the tax
4 hereunder or effecting a change in the rate thereof shall be
5 adopted and a certified copy thereof filed with the Department
6 on or before the first day of October, whereupon the Department
7 shall proceed to administer and enforce this Section as of the
8 first day of January next following such adoption and filing.
9 Beginning April 1, 1998, an ordinance or resolution imposing or
10 discontinuing the tax hereunder or effecting a change in the
11 rate 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 shall proceed to administer and
14 enforce this Section as of the first day of July next following
15 the adoption and filing; or (ii) be adopted and a certified
16 copy thereof filed with the Department on or before the first
17 day of October, whereupon the Department shall proceed to
18 administer and enforce this Section as of the first day of
19 January next following the adoption and filing.
20     When certifying the amount of a monthly disbursement to a
21 county under this Section, the Department shall increase or
22 decrease such amount by an amount necessary to offset any
23 misallocation of previous disbursements. The offset amount
24 shall be the amount erroneously disbursed within the previous 6
25 months from the time a misallocation is discovered.
26     This Section shall be known and may be cited as the Home

 

 

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1 Rule County Retailers' Occupation Tax Law.
2 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
3     (55 ILCS 5/5-1006.5)
4     (Text of Section before amendment by P.A. 96-845)
5     Sec. 5-1006.5. Special County Retailers' Occupation Tax
6 For Public Safety, Public Facilities, or Transportation.
7     (a) The county board of any county may impose a tax upon
8 all persons engaged in the business of selling tangible
9 personal property, other than personal property titled or
10 registered with an agency of this State's government, at retail
11 in the county on the gross receipts from the sales made in the
12 course of business to provide revenue to be used exclusively
13 for public safety, public facility, or transportation purposes
14 in that county, if a proposition for the tax has been submitted
15 to the electors of that county and approved by a majority of
16 those voting on the question. If imposed, this tax shall be
17 imposed only in one-quarter percent increments. By resolution,
18 the county board may order the proposition to be submitted at
19 any election. If the tax is imposed for transportation purposes
20 for expenditures for public highways or as authorized under the
21 Illinois Highway Code, the county board must publish notice of
22 the existence of its long-range highway transportation plan as
23 required or described in Section 5-301 of the Illinois Highway
24 Code and must make the plan publicly available prior to
25 approval of the ordinance or resolution imposing the tax. If

 

 

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1 the tax is imposed for transportation purposes for expenditures
2 for passenger rail transportation, the county board must
3 publish notice of the existence of its long-range passenger
4 rail transportation plan and must make the plan publicly
5 available prior to approval of the ordinance or resolution
6 imposing the tax.
7     If a tax is imposed for public facilities purposes, then
8 the name of the project may be included in the proposition at
9 the discretion of the county board as determined in the
10 enabling resolution. For example, the "XXX Nursing Home" or the
11 "YYY Museum".
12     The county clerk shall certify the question to the proper
13 election authority, who shall submit the proposition at an
14 election in accordance with the general election law.
15         (1) The proposition for public safety purposes shall be
16     in substantially the following form:
17         "To pay for public safety 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 safety
4     purposes shall be in substantially the following form:
5         "To pay for public safety 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 the purposes of the paragraph, "public safety
18     purposes" means crime prevention, detention, fire
19     fighting, police, medical, ambulance, or other emergency
20     services.
21         Votes shall be recorded as "Yes" or "No".
22         (2) The proposition for transportation purposes shall
23     be in substantially the following form:
24         "To pay for improvements to roads and other
25     transportation purposes, shall (name of county) be
26     authorized to impose an increase on its share of local

 

 

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

 

 

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

 

 

09600SB2093ham003 - 99 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 100 - LRB096 11467 RLJ 41278 a

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

 

 

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1 (except provisions relating to transaction returns and quarter
2 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
3 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
4 the Retailers' Occupation Tax Act and Section 3-7 of the
5 Uniform Penalty and Interest Act as if those provisions were
6 set forth in this Section.
7     Persons subject to any tax imposed under the authority
8 granted in this Section may reimburse themselves for their
9 sellers' tax liability by separately stating the tax as an
10 additional charge, which charge may be stated in combination,
11 in a single amount, with State tax which sellers are required
12 to collect under the Use Tax Act, pursuant to such bracketed
13 schedules as the Department may prescribe.
14     Whenever the Department determines that a refund should be
15 made under this Section to a claimant instead of issuing a
16 credit memorandum, the Department shall notify the State
17 Comptroller, who shall cause the order to be drawn for the
18 amount specified and to the person named in the notification
19 from the Department. The refund shall be paid by the State
20 Treasurer out of the County Public Safety or Transportation
21 Retailers' Occupation Tax Fund.
22     (b) If a tax has been imposed under subsection (a), a
23 service occupation tax shall also be imposed at the same rate
24 upon all persons engaged, in the county, 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 county as an incident to a sale of service. This tax may
2 not be imposed on sales of food for human consumption that is
3 to be consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food prepared for
5 immediate consumption) and prescription and non-prescription
6 medicines, drugs, medical appliances and insulin, urine
7 testing materials, syringes, and needles used by diabetics. The
8 tax imposed under this subsection and all civil penalties that
9 may be assessed as an incident thereof shall be collected and
10 enforced by the Department of Revenue. The Department has full
11 power to administer and enforce this subsection; to collect all
12 taxes and penalties due hereunder; to dispose of taxes and
13 penalties so collected in the manner hereinafter provided; and
14 to determine all rights to credit memoranda arising on account
15 of the erroneous payment of tax or penalty hereunder. In the
16 administration of, and compliance with this subsection, the
17 Department and persons who are subject to this paragraph shall
18 (i) have the same rights, remedies, privileges, immunities,
19 powers, and duties, (ii) be subject to the same conditions,
20 restrictions, limitations, penalties, exclusions, exemptions,
21 and definitions of terms, and (iii) employ the same modes of
22 procedure as are prescribed in Sections 2 (except that the
23 reference to State in the definition of supplier maintaining a
24 place of business in this State shall mean the county), 2a, 2b,
25 2c, 3 through 3-50 (in respect to all provisions therein other
26 than the State rate of tax), 4 (except that the reference to

 

 

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

 

 

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1     Nothing in this subsection shall be construed to authorize
2 the county 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 the State.
5     (c) The Department shall immediately pay over to the State
6 Treasurer, ex officio, as trustee, all taxes and penalties
7 collected under this Section to be deposited into the County
8 Public Safety or Transportation Retailers' Occupation Tax
9 Fund, which shall be an unappropriated trust fund held outside
10 of the State treasury.
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 Innovation
16 Development and Economy Act, collected under this Section
17 during the second preceding calendar month for sales within a
18 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 counties from which
23 retailers have paid taxes or penalties to the Department during
24 the second preceding calendar month. The amount to be paid to
25 each county, and deposited by the county into its special fund
26 created for the purposes of this Section, shall be the amount

 

 

09600SB2093ham003 - 105 - LRB096 11467 RLJ 41278 a

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

 

 

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1 preceding paragraph shall be reduced by the amount allocated
2 and disbursed under this paragraph in the preceding calendar
3 year. The Department shall prepare and certify to the
4 Comptroller for disbursement the allocations made in
5 accordance with this paragraph.
6     (d) For the purpose of determining the local governmental
7 unit whose tax is applicable, a retail sale by a producer of
8 coal or another mineral mined in Illinois is a sale at retail
9 at the place where the coal or other mineral mined in Illinois
10 is extracted from the earth. This paragraph does not apply to
11 coal or another mineral when it is delivered or shipped by the
12 seller to the purchaser at a point outside Illinois so that the
13 sale is exempt under the United States Constitution as a sale
14 in interstate or foreign commerce.
15     (e) Nothing in this Section shall be construed to authorize
16 a county to impose a tax upon the privilege of engaging in any
17 business that under the Constitution of the United States may
18 not be made the subject of taxation by this State.
19     (e-5) If a county imposes a tax under this Section, the
20 county board may, by ordinance, discontinue or lower the rate
21 of the tax. If the county board lowers the tax rate or
22 discontinues the tax, a referendum must be held in accordance
23 with subsection (a) of this Section in order to increase the
24 rate of the tax or to reimpose the discontinued tax.
25     (f) Beginning April 1, 1998, the results of any election
26 authorizing a proposition to impose a tax under this Section or

 

 

09600SB2093ham003 - 107 - LRB096 11467 RLJ 41278 a

1 effecting a change in the rate of tax, or any ordinance
2 lowering the rate or discontinuing the tax, shall be certified
3 by the county clerk and filed with the Illinois Department of
4 Revenue either (i) on or before the first day of April,
5 whereupon the Department shall proceed to administer and
6 enforce the tax as of the first day of July next following the
7 filing; or (ii) on or before the first day of October,
8 whereupon the Department shall proceed to administer and
9 enforce the tax as of the first day of January next following
10 the filing.
11     (g) When certifying the amount of a monthly disbursement to
12 a county under this Section, the Department shall increase or
13 decrease the amounts by an amount necessary to offset any
14 miscalculation of previous disbursements. The offset amount
15 shall be the amount erroneously disbursed within the previous 6
16 months from the time a miscalculation is discovered.
17     (h) This Section may be cited as the "Special County
18 Occupation Tax For Public Safety, Public Facilities, or
19 Transportation Law".
20     (i) For purposes of this Section, "public safety" includes,
21 but is not limited to, crime prevention, detention, fire
22 fighting, police, medical, ambulance, or other emergency
23 services. The county may share tax proceeds received under this
24 Section for public safety purposes, including proceeds
25 received before August 4, 2009 (the effective date of Public
26 Act 96-124) this amendatory Act of the 96th General Assembly,

 

 

09600SB2093ham003 - 108 - LRB096 11467 RLJ 41278 a

1 with any fire protection district located in the county. For
2 the purposes of this Section, "transportation" includes, but is
3 not limited to, the construction, maintenance, operation, and
4 improvement of public highways, any other purpose for which a
5 county may expend funds under the Illinois Highway Code, and
6 passenger rail transportation. For the purposes of this
7 Section, "public facilities purposes" includes, but is not
8 limited to, the acquisition, development, construction,
9 reconstruction, rehabilitation, improvement, financing,
10 architectural planning, and installation of capital facilities
11 consisting of buildings, structures, and durable equipment and
12 for the acquisition and improvement of real property and
13 interest in real property required, or expected to be required,
14 in connection with the public facilities, for use by the county
15 for the furnishing of governmental services to its citizens,
16 including but not limited to museums and nursing homes.
17     (j) The Department may promulgate rules to implement Public
18 Act 95-1002 this amendatory Act of the 95th General Assembly
19 only to the extent necessary to apply the existing rules for
20 the Special County Retailers' Occupation Tax for Public Safety
21 to this new purpose for public facilities.
22 (Source: P.A. 95-474, eff. 1-1-08; 95-1002, eff. 11-20-08;
23 96-124, eff. 8-4-09; 96-622, eff. 8-24-09; revised 11-3-09.)
 
24     (Text of Section after amendment by P.A. 96-845)
25     Sec. 5-1006.5. Special County Retailers' Occupation Tax

 

 

09600SB2093ham003 - 109 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 110 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 111 - LRB096 11467 RLJ 41278 a

1     local sales taxes by (insert rate) for a period not to
2     exceed (insert number of years)?"
3         As additional information on the ballot below the
4     question shall appear the following:
5         "This would mean that a consumer would pay an
6     additional (insert amount) in sales tax for every $100 of
7     tangible personal property bought at retail. If imposed,
8     the additional tax would cease being collected at the end
9     of (insert number of years), if not terminated earlier by a
10     vote of the county board."
11         For the purposes of the paragraph, "public safety
12     purposes" means crime prevention, detention, fire
13     fighting, police, medical, ambulance, or other emergency
14     services.
15         Votes shall be recorded as "Yes" or "No".
16         (2) The proposition for transportation purposes shall
17     be in substantially the following form:
18         "To pay for improvements to roads and other
19     transportation purposes, shall (name of county) be
20     authorized to impose an increase on its share of local
21     sales taxes by (insert rate)?"
22         As additional information on the ballot below the
23     question shall appear the following:
24         "This would mean that a consumer would pay an
25     additional (insert amount) in sales tax for every $100 of
26     tangible personal property bought at retail."

 

 

09600SB2093ham003 - 112 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 113 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 114 - LRB096 11467 RLJ 41278 a

1         For purposes of this Section, "public facilities
2     purposes" means the acquisition, development,
3     construction, reconstruction, rehabilitation, improvement,
4     financing, architectural planning, and installation of
5     capital facilities consisting of buildings, structures,
6     and durable equipment and for the acquisition and
7     improvement of real property and interest in real property
8     required, or expected to be required, in connection with
9     the public facilities, for use by the county for the
10     furnishing of governmental services to its citizens,
11     including but not limited to museums and nursing homes.
12         The votes shall be recorded as "Yes" or "No".
13     If a majority of the electors voting on the proposition
14 vote in favor of it, the county may impose the tax. A county
15 may not submit more than one proposition authorized by this
16 Section to the electors at any one time.
17     This additional tax may not be imposed on the sales of food
18 for human consumption that is to be consumed off the premises
19 where it is sold (other than alcoholic beverages, soft drinks,
20 and food which has been prepared for immediate consumption) and
21 prescription and non-prescription medicines, drugs, medical
22 appliances and insulin, urine testing materials, syringes, and
23 needles used by diabetics. The tax imposed by a county under
24 this Section and all civil penalties that may be assessed as an
25 incident of the tax shall be collected and enforced by the
26 Illinois Department of Revenue and deposited into a special

 

 

09600SB2093ham003 - 115 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 116 - LRB096 11467 RLJ 41278 a

1     Persons subject to any tax imposed under the authority
2 granted in this Section may reimburse themselves for their
3 sellers' tax liability by separately stating the tax as an
4 additional charge, which charge may be stated in combination,
5 in a single amount, with State tax which sellers are required
6 to collect under the Use Tax Act, pursuant to such bracketed
7 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 County Public Safety or Transportation
15 Retailers' Occupation Tax Fund.
16     (b) If a tax has been imposed under subsection (a), a
17 service occupation tax shall also be imposed at the same rate
18 upon all persons engaged, in the county, in the business of
19 making sales of service, who, as an incident to making those
20 sales of service, transfer tangible personal property within
21 the county as an incident to a sale of service. This tax may
22 not be imposed on sales of food for human consumption that is
23 to be consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food prepared for
25 immediate consumption) and prescription and non-prescription
26 medicines, drugs, medical appliances and insulin, urine

 

 

09600SB2093ham003 - 117 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 118 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 119 - LRB096 11467 RLJ 41278 a

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

 

 

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1 Department on behalf of the county, and (ii) any amount that
2 the Department determines is necessary to offset any amounts
3 that were payable to a different taxing body but were
4 erroneously paid to the county, and (iii) 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 counties provided for in this Section to
8 be given to the Comptroller by the Department, the Comptroller
9 shall cause the orders to be drawn for the respective amounts
10 in accordance with directions contained in the certification.
11     In addition to the disbursement required by the preceding
12 paragraph, an allocation shall be made in March of each year to
13 each county that received more than $500,000 in disbursements
14 under the preceding paragraph in the preceding calendar year.
15 The allocation shall be in an amount equal to the average
16 monthly distribution made to each such county under the
17 preceding paragraph during the preceding calendar year
18 (excluding the 2 months of highest receipts). The distribution
19 made in March of each year subsequent to the year in which an
20 allocation was made pursuant to this paragraph and the
21 preceding paragraph shall be reduced by the amount allocated
22 and disbursed under this paragraph in the preceding calendar
23 year. The Department shall prepare and certify to the
24 Comptroller for disbursement the allocations made in
25 accordance with this paragraph.
26     A county may direct, by ordinance, that all or a portion of

 

 

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1 the taxes and penalties collected under the Special County
2 Retailers' Occupation Tax For Public Safety or Transportation
3 be deposited into the Transportation Development Partnership
4 Trust Fund.
5     (d) For the purpose of determining the local governmental
6 unit whose tax is applicable, a retail sale by a producer of
7 coal or another mineral mined in Illinois is a sale at retail
8 at the place where the coal or other mineral mined in Illinois
9 is extracted from the earth. This paragraph does not apply to
10 coal or another mineral when it is delivered or shipped by the
11 seller to the purchaser at a point outside Illinois so that the
12 sale is exempt under the United States Constitution as a sale
13 in interstate or foreign commerce.
14     (e) Nothing in this Section shall be construed to authorize
15 a county to impose a tax upon the privilege of engaging in any
16 business that under the Constitution of the United States may
17 not be made the subject of taxation by this State.
18     (e-5) If a county imposes a tax under this Section, the
19 county board may, by ordinance, discontinue or lower the rate
20 of the tax. If the county board lowers the tax rate or
21 discontinues the tax, a referendum must be held in accordance
22 with subsection (a) of this Section in order to increase the
23 rate of the tax or to reimpose the discontinued tax.
24     (f) Beginning April 1, 1998, the results of any election
25 authorizing a proposition to impose a tax under this Section or
26 effecting a change in the rate of tax, or any ordinance

 

 

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1 lowering the rate or discontinuing the tax, shall be certified
2 by the county clerk and filed with the Illinois Department of
3 Revenue either (i) on or before the first day of April,
4 whereupon the Department shall proceed to administer and
5 enforce the tax as of the first day of July next following the
6 filing; or (ii) on or before the first day of October,
7 whereupon the Department shall proceed to administer and
8 enforce the tax as of the first day of January next following
9 the filing.
10     (g) When certifying the amount of a monthly disbursement to
11 a county under this Section, the Department shall increase or
12 decrease the amounts by an amount necessary to offset any
13 miscalculation of previous disbursements. The offset amount
14 shall be the amount erroneously disbursed within the previous 6
15 months from the time a miscalculation is discovered.
16     (h) This Section may be cited as the "Special County
17 Occupation Tax For Public Safety, Public Facilities, or
18 Transportation Law".
19     (i) For purposes of this Section, "public safety" includes,
20 but is not limited to, crime prevention, detention, fire
21 fighting, police, medical, ambulance, or other emergency
22 services. The county may share tax proceeds received under this
23 Section for public safety purposes, including proceeds
24 received before August 4, 2009 (the effective date of Public
25 Act 96-124) this amendatory Act of the 96th General Assembly,
26 with any fire protection district located in the county. For

 

 

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1 the purposes of this Section, "transportation" includes, but is
2 not limited to, the construction, maintenance, operation, and
3 improvement of public highways, any other purpose for which a
4 county may expend funds under the Illinois Highway Code, and
5 passenger rail transportation. For the purposes of this
6 Section, "public facilities purposes" includes, but is not
7 limited to, the acquisition, development, construction,
8 reconstruction, rehabilitation, improvement, financing,
9 architectural planning, and installation of capital facilities
10 consisting of buildings, structures, and durable equipment and
11 for the acquisition and improvement of real property and
12 interest in real property required, or expected to be required,
13 in connection with the public facilities, for use by the county
14 for the furnishing of governmental services to its citizens,
15 including but not limited to museums and nursing homes.
16     (j) The Department may promulgate rules to implement Public
17 Act 95-1002 this amendatory Act of the 95th General Assembly
18 only to the extent necessary to apply the existing rules for
19 the Special County Retailers' Occupation Tax for Public Safety
20 to this new purpose for public facilities.
21 (Source: P.A. 95-474, eff. 1-1-08; 95-1002, eff. 11-20-08;
22 96-124, eff. 8-4-09; 96-622, eff. 8-24-09; 96-845, eff. 7-1-12;
23 revised 12-30-09.)
 
24     (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
25     Sec. 5-1007. Home Rule County Service Occupation Tax Law.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 distribution made to each such county under the preceding
2 paragraph during the preceding calendar year (excluding the 2
3 months of highest receipts). The distribution made in March of
4 each year subsequent to the year in which an allocation was
5 made pursuant to this paragraph and the preceding paragraph
6 shall be reduced by the amount allocated and disbursed under
7 this paragraph in the preceding calendar year. The Department
8 shall prepare and certify to the Comptroller for disbursement
9 the allocations made in accordance with this paragraph.
10     Nothing in this Section shall be construed to authorize a
11 county to impose a tax upon the privilege of engaging in any
12 business which under the Constitution of the United States may
13 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 such 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 such adoption and filing.
7 Beginning April 1, 1998, an ordinance or resolution imposing or
8 discontinuing the tax hereunder or effecting a change in the
9 rate thereof shall either (i) be adopted and a certified copy
10 thereof filed with the Department on or before the first day of
11 April, whereupon the Department shall proceed to administer and
12 enforce this Section as of the first day of July next following
13 the adoption and filing; or (ii) be adopted and a certified
14 copy thereof filed with the Department on or before the first
15 day of October, whereupon the Department shall proceed to
16 administer and enforce this Section as of the first day of
17 January next following the adoption and filing.
18     This Section shall be known and may be cited as the Home
19 Rule County Service Occupation Tax Law.
20 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
21     Section 70. The Illinois Municipal Code is amended by
22 changing Sections 8-4-1, 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
23 8-11-1.7, 8-11-5, and 11-74.3-6 as follows:
 
24     (65 ILCS 5/8-4-1)  (from Ch. 24, par. 8-4-1)

 

 

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1     Sec. 8-4-1. No bonds shall be issued by the corporate
2 authorities of any municipality until the question of
3 authorizing such bonds has been submitted to the electors of
4 that municipality provided that notice of the bond referendum,
5 if held before July 1, 1999, has been given in accordance with
6 the provisions of Section 12-5 of the Election Code in effect
7 at the time of the bond referendum, at least 10 and not more
8 than 45 days before the date of the election, notwithstanding
9 the time for publication otherwise imposed by Section 12-5, and
10 approved by a majority of the electors voting upon that
11 question. Notices required in connection with the submission of
12 public questions on or after July 1, 1999 shall be as set forth
13 in Section 12-5 of the Election Code. The clerk shall certify
14 the proposition of the corporate authorities to the proper
15 election authority who shall submit the question at an election
16 in accordance with the general election law, subject to the
17 notice provisions set forth in this Section.
18     Notice of any such election shall contain the amount of the
19 bond issue, purpose for which issued, and maximum rate of
20 interest.
21     However, without the submission of the question of issuing
22 bonds to the electors, the corporate authorities of any
23 municipality may authorize the issuance of any of the following
24 bonds:
25     (1) Bonds to refund any existing bonded indebtedness;
26     (2) Bonds to fund or refund any existing judgment

 

 

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1 indebtedness;
2     (3) In any municipality of less than 500,000 population,
3 bonds to anticipate the collection of installments of special
4 assessments and special taxes against property owned by the
5 municipality and to anticipate the collection of the amount
6 apportioned to the municipality as public benefits under
7 Article 9;
8     (4) Bonds issued by any municipality under Sections 8-4-15
9 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1 through
10 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
11 11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
12 11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
13 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
14 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
15 11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
16 11-141-18 of this Code or 10-801 through 10-808 of the Illinois
17 Highway Code, as amended;
18     (5) Bonds issued by the board of education of any school
19 district under the provisions of Sections 34-30 through 34-36
20 of The School Code, as amended;
21     (6) Bonds issued by any municipality under the provisions
22 of Division 6 of this Article 8; and by any municipality under
23 the provisions of Division 7 of this Article 8; or under the
24 provisions of Sections 11-121-4 and 11-121-5;
25     (7) Bonds to pay for the purchase of voting machines by any
26 municipality that has adopted Article 24 of The Election Code,

 

 

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1 approved May 11, 1943, as amended;
2     (8) Bonds issued by any municipality under Sections 15 and
3 46 of the "Environmental Protection Act", approved June 29,
4 1970;
5     (9) Bonds issued by the corporate authorities of any
6 municipality under the provisions of Section 8-4-25 of this
7 Article 8;
8     (10) Bonds issued under Section 8-4-26 of this Article 8 by
9 any municipality having a board of election commissioners;
10     (11) Bonds issued under the provisions of "An Act to
11 provide the manner of levying or imposing taxes for the
12 provision of special services to areas within the boundaries of
13 home rule units and nonhome rule municipalities and counties",
14 approved September 21, 1973;
15     (12) Bonds issued under Section 8-5-16 of this Code;
16     (13) Bonds to finance the cost of the acquisition,
17 construction or improvement of water or wastewater treatment
18 facilities mandated by an enforceable compliance schedule
19 developed in connection with the federal Clean Water Act or a
20 compliance order issued by the United States Environmental
21 Protection Agency or the Illinois Pollution Control Board;
22 provided that such bonds are authorized by an ordinance adopted
23 by a three-fifths majority of the corporate authorities of the
24 municipality issuing the bonds which ordinance shall specify
25 that the construction or improvement of such facilities is
26 necessary to alleviate an emergency condition in such

 

 

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1 municipality;
2     (14) Bonds issued by any municipality pursuant to Section
3 11-113.1-1;
4     (15) Bonds issued under Sections 11-74.6-1 through
5 11-74.6-45, the Industrial Jobs Recovery Law of this Code.
6     (16) Bonds issued under the Innovation Development and
7 Economy Act, except as may be required by Section 35 of that
8 Act.
9 (Source: P.A. 90-706, eff. 8-7-98; 90-812, eff. 1-26-99; 91-57,
10 eff. 6-30-99.)
 
11     (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
12     Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
13 Act. The corporate authorities of a home rule municipality may
14 impose a tax upon all persons engaged in the business of
15 selling tangible personal property, other than an item of
16 tangible personal property titled or registered with an agency
17 of this State's government, at retail in the municipality on
18 the gross receipts from these sales made in the course of such
19 business. If imposed, the tax shall only be imposed in 1/4%
20 increments. On and after September 1, 1991, this additional tax
21 may not be imposed on the sales of food for human consumption
22 that is to be consumed off the premises where it is sold (other
23 than alcoholic beverages, soft drinks and food that has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances and

 

 

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

 

 

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1 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9,
2 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
3 Section 3-7 of the Uniform Penalty and Interest Act, as fully
4 as if those provisions were set forth herein.
5     No tax may be imposed by a home rule municipality under
6 this Section unless the municipality also imposes a tax at the
7 same rate under Section 8-11-5 of this Act.
8     Persons subject to any tax imposed under the authority
9 granted in this Section may reimburse themselves for their
10 seller's tax liability hereunder by separately stating that tax
11 as an additional charge, which charge may be stated in
12 combination, in a single amount, with State tax which sellers
13 are required to collect under the Use Tax Act, pursuant to such
14 bracket schedules as the Department may prescribe.
15     Whenever the Department determines that a refund should be
16 made under this Section to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified and to the person named in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the home rule municipal retailers' occupation
22 tax fund.
23     The Department shall immediately 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 Innovation
5 Development and Economy Act, collected under this Section
6 during the second preceding calendar month for sales within a
7 STAR bond district.
8     After the monthly transfer to the STAR Bonds Revenue Fund,
9 on On or before the 25th day of each calendar month, the
10 Department shall prepare and certify to the Comptroller the
11 disbursement of stated sums of money to named municipalities,
12 the municipalities to be those from which retailers have paid
13 taxes or penalties hereunder to the Department during the
14 second preceding calendar month. The amount to be paid to each
15 municipality shall be the amount (not including credit
16 memoranda) collected hereunder during the second preceding
17 calendar month by the Department plus an amount the Department
18 determines is necessary to offset any amounts that were
19 erroneously paid to a different taxing body, and not including
20 an amount equal to the amount of refunds made during the second
21 preceding calendar month by the Department on behalf of such
22 municipality, and not including any amount that the Department
23 determines is necessary to offset any amounts that were payable
24 to a 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 Section to be given to the Comptroller by the Department, the
4 Comptroller shall cause the orders to be drawn for the
5 respective amounts in accordance with the directions contained
6 in the certification.
7     In addition to the disbursement required by the preceding
8 paragraph and in order to mitigate delays caused by
9 distribution procedures, an allocation shall, if requested, be
10 made within 10 days after January 14, 1991, and in November of
11 1991 and each year thereafter, to each municipality that
12 received more than $500,000 during the preceding fiscal year,
13 (July 1 through June 30) whether collected by the municipality
14 or disbursed by the Department as required by this Section.
15 Within 10 days after January 14, 1991, participating
16 municipalities shall notify the Department in writing of their
17 intent to participate. In addition, for the initial
18 distribution, participating municipalities shall certify to
19 the Department the amounts collected by the municipality for
20 each month under its home rule occupation and service
21 occupation tax during the period July 1, 1989 through June 30,
22 1990. The allocation within 10 days after January 14, 1991,
23 shall be in an amount equal to the monthly average of these
24 amounts, excluding the 2 months of highest receipts. The
25 monthly average for the period of July 1, 1990 through June 30,
26 1991 will be determined as follows: the amounts collected by

 

 

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

 

 

09600SB2093ham003 - 139 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 140 - LRB096 11467 RLJ 41278 a

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

 

 

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1 as a result of an assessment not arising from an audit, for
2 liability periods prior to January 1, 1990, shall be paid into
3 the Local Government Tax Fund for distribution before July 1,
4 1990, as provided by this Section prior to the enactment of
5 Public Act 85-1135; and on and after July 1, 1990, all such
6 receipts shall be distributed as provided in Section 6z-18 of
7 the State Finance Act.
8     As used in this Section, "municipal" and "municipality"
9 means a city, village or incorporated town, including an
10 incorporated town that has superseded a civil township.
11     This Section shall be known and may be cited as the Home
12 Rule Municipal Retailers' Occupation Tax Act.
13 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
14     (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
15     Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
16 Occupation Tax Act. The corporate authorities of a non-home
17 rule municipality may impose a tax upon all persons engaged in
18 the business of selling tangible personal property, other than
19 on an item of tangible personal property which is titled and
20 registered by an agency of this State's Government, at retail
21 in the municipality for expenditure on public infrastructure or
22 for property tax relief or both as defined in Section 8-11-1.2
23 if approved by referendum as provided in Section 8-11-1.1, of
24 the gross receipts from such sales made in the course of such
25 business. The tax imposed may not be more than 1% and may be

 

 

09600SB2093ham003 - 142 - LRB096 11467 RLJ 41278 a

1 imposed only in 1/4% increments. The tax may not be imposed on
2 the sale of food for human consumption that is to be consumed
3 off the premises where it is sold (other than alcoholic
4 beverages, soft drinks, and food that has been prepared for
5 immediate consumption) and prescription and nonprescription
6 medicines, drugs, medical appliances, and insulin, urine
7 testing materials, syringes, and needles used by diabetics. The
8 tax imposed by a municipality pursuant to this Section and all
9 civil penalties that may be assessed as an incident thereof
10 shall be collected and enforced by the State Department of
11 Revenue. The certificate of registration which is issued by the
12 Department to a retailer under the Retailers' Occupation Tax
13 Act shall permit such retailer to engage in a business which is
14 taxable under any ordinance or resolution enacted pursuant to
15 this Section without registering separately with the
16 Department under such ordinance or resolution or under this
17 Section. The Department shall have full power to administer and
18 enforce this Section; to collect all taxes and penalties due
19 hereunder; to dispose of taxes and penalties so collected in
20 the manner hereinafter provided, and to determine all rights to
21 credit memoranda, arising on account of the erroneous payment
22 of tax or penalty hereunder. In the administration of, and
23 compliance with, this Section, the Department and persons who
24 are subject to this Section shall have the same rights,
25 remedies, privileges, immunities, powers and duties, and be
26 subject to the same conditions, restrictions, limitations,

 

 

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

 

 

09600SB2093ham003 - 144 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 145 - LRB096 11467 RLJ 41278 a

1 municipality, and not including any amount which the Department
2 determines is necessary to offset any amounts which were
3 payable to a different taxing body but were erroneously paid to
4 the 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     For the purpose of determining the local governmental unit
13 whose tax is applicable, a retail sale, by a producer of coal
14 or other mineral mined in Illinois, is a sale at retail at the
15 place where the coal or other mineral mined in Illinois is
16 extracted from the earth. This paragraph does not apply to coal
17 or other mineral when it is delivered or shipped by the seller
18 to the purchaser at a point outside Illinois so that the sale
19 is exempt under the Federal Constitution as a sale in
20 interstate or foreign commerce.
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     When certifying the amount of a monthly disbursement to a
26 municipality under this Section, the Department shall increase

 

 

09600SB2093ham003 - 146 - LRB096 11467 RLJ 41278 a

1 or decrease such 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     The Department of Revenue shall implement this amendatory
6 Act of the 91st General Assembly so as to collect the tax on
7 and after January 1, 2002.
8     As used in this Section, "municipal" and "municipality"
9 means a city, village or incorporated town, including an
10 incorporated town which has superseded a civil township.
11     This Section shall be known and may be cited as the
12 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
13 (Source: P.A. 94-679, eff. 1-1-06.)
 
14     (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
15     Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
16 Tax Act. The corporate authorities of a non-home rule
17 municipality may impose a tax upon all persons engaged, in such
18 municipality, in the business of making sales of service for
19 expenditure on public infrastructure or for property tax relief
20 or both as defined in Section 8-11-1.2 if approved by
21 referendum as provided in Section 8-11-1.1, of the selling
22 price of all tangible personal property transferred by such
23 servicemen either in the form of tangible personal property or
24 in the form of real estate as an incident to a sale of service.
25 The tax imposed may not be more than 1% and may be imposed only

 

 

09600SB2093ham003 - 147 - LRB096 11467 RLJ 41278 a

1 in 1/4% increments. The tax may not be imposed on the sale of
2 food for human consumption that is to be consumed off the
3 premises where it is sold (other than alcoholic beverages, soft
4 drinks, and food that has been prepared for immediate
5 consumption) and prescription and nonprescription medicines,
6 drugs, medical appliances, and insulin, urine testing
7 materials, syringes, and needles used by diabetics. The tax
8 imposed by a municipality pursuant to this Section and all
9 civil penalties that may be assessed as an incident thereof
10 shall be collected and enforced by the State Department of
11 Revenue. The certificate of registration which is issued by the
12 Department to a retailer under the Retailers' Occupation Tax
13 Act or under the Service Occupation Tax Act shall permit such
14 registrant to engage in a business which is taxable under any
15 ordinance or resolution enacted pursuant to this Section
16 without registering separately with the Department under such
17 ordinance or resolution or under this Section. The Department
18 shall have full power to administer and enforce this Section;
19 to collect all taxes and penalties due hereunder; to dispose of
20 taxes and penalties so collected in the manner hereinafter
21 provided, and to determine all rights to credit memoranda
22 arising on account of the erroneous payment of tax or penalty
23 hereunder. In the administration of, and compliance with, this
24 Section the Department and persons who are subject to this
25 Section shall have the same rights, remedies, privileges,
26 immunities, powers and duties, and be subject to the same

 

 

09600SB2093ham003 - 148 - LRB096 11467 RLJ 41278 a

1 conditions, restrictions, limitations, penalties and
2 definitions of terms, and employ the same modes of procedure,
3 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
4 respect to all provisions therein other than the State rate of
5 tax), 4 (except that the reference to the State shall be to the
6 taxing municipality), 5, 7, 8 (except that the jurisdiction to
7 which the tax shall be a debt to the extent indicated in that
8 Section 8 shall be the taxing municipality), 9 (except as to
9 the disposition of taxes and penalties collected, and except
10 that the returned merchandise credit for this municipal tax may
11 not be taken against any State tax), 10, 11, 12 (except the
12 reference therein to Section 2b of the Retailers' Occupation
13 Tax Act), 13 (except that any reference to the State shall mean
14 the taxing municipality), the first paragraph of Section 15,
15 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
16 Section 3-7 of the Uniform Penalty and Interest Act, as fully
17 as if those provisions were set forth herein.
18     No municipality may impose a tax under this Section unless
19 the municipality also imposes a tax at the same rate under
20 Section 8-11-1.3 of this Code.
21     Persons subject to any tax imposed pursuant to the
22 authority granted in this Section may reimburse themselves for
23 their serviceman's tax liability hereunder by separately
24 stating such tax as an additional charge, which charge may be
25 stated in combination, in a single amount, with State tax which
26 servicemen are authorized to collect under the Service Use Tax

 

 

09600SB2093ham003 - 149 - LRB096 11467 RLJ 41278 a

1 Act, pursuant to such bracket schedules as the Department may
2 prescribe.
3     Whenever the Department determines that a refund should be
4 made under this Section to a claimant instead of issuing credit
5 memorandum, the Department shall notify the State Comptroller,
6 who shall cause the order to be drawn for the amount specified,
7 and to the person named, in such notification from the
8 Department. Such refund shall be paid by the State Treasurer
9 out of the municipal retailers' occupation tax fund.
10     The Department shall forthwith pay over to the State
11 Treasurer, ex officio, as trustee, all taxes and penalties
12 collected hereunder.
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 Innovation
18 Development and Economy Act, collected under this Section
19 during the second preceding calendar month for sales within a
20 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 suppliers and
26 servicemen have paid taxes or penalties hereunder to the

 

 

09600SB2093ham003 - 150 - LRB096 11467 RLJ 41278 a

1 Department during the second preceding calendar month. The
2 amount to be paid to each municipality shall be the amount (not
3 including credit memoranda) collected hereunder during the
4 second preceding calendar month by the Department, and not
5 including an amount equal to the amount of refunds made during
6 the second preceding calendar month by the Department on behalf
7 of such municipality, and not including any amounts that are
8 transferred to the STAR Bonds Revenue Fund. Within 10 days
9 after receipt, by the Comptroller, of the disbursement
10 certification to the municipalities and the General Revenue
11 Fund, provided for in this Section to be given to the
12 Comptroller by the Department, the Comptroller shall cause the
13 orders to be drawn for the respective amounts in accordance
14 with the directions contained in such certification.
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     Nothing in this Section shall be construed to authorize a
19 municipality to impose a tax upon the privilege of engaging in
20 any business which under the constitution of the United States
21 may not be made the subject of taxation by this State.
22     As used in this Section, "municipal" or "municipality"
23 means or refers to a city, village or incorporated town,
24 including an incorporated town which has superseded a civil
25 township.
26     This Section shall be known and may be cited as the

 

 

09600SB2093ham003 - 151 - LRB096 11467 RLJ 41278 a

1 "Non-Home Rule Municipal Service Occupation Tax Act".
2 (Source: P.A. 94-679, eff. 1-1-06.)
 
3     (65 ILCS 5/8-11-1.6)
4     Sec. 8-11-1.6. Non-home rule municipal retailers
5 occupation tax; municipalities between 20,000 and 25,000. The
6 corporate authorities of a non-home rule municipality with a
7 population of more than 20,000 but less than 25,000 that has,
8 prior to January 1, 1987, established a Redevelopment Project
9 Area that has been certified as a State Sales Tax Boundary and
10 has issued bonds or otherwise incurred indebtedness to pay for
11 costs in excess of $5,000,000, which is secured in part by a
12 tax increment allocation fund, in accordance with the
13 provisions of Division 11-74.4 of this Code may, by passage of
14 an ordinance, impose a tax upon all persons engaged in the
15 business of selling tangible personal property, other than on
16 an item of tangible personal property that is titled and
17 registered by an agency of this State's Government, at retail
18 in the municipality. This tax may not be imposed on the sales
19 of food for human consumption that is to be consumed off the
20 premises where it is sold (other than alcoholic beverages, soft
21 drinks, and food that has been prepared for immediate
22 consumption) and prescription and nonprescription medicines,
23 drugs, medical appliances and insulin, urine testing
24 materials, syringes, and needles used by diabetics. If imposed,
25 the tax shall only be imposed in .25% increments of the gross

 

 

09600SB2093ham003 - 152 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 153 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 154 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 155 - LRB096 11467 RLJ 41278 a

1 municipality, and not including any amount that the Department
2 determines is necessary to offset any amounts that were payable
3 to a different taxing body but were erroneously paid to the
4 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 the certification.
12     For the purpose of determining the local governmental unit
13 whose tax is applicable, a retail sale by a producer of coal or
14 other mineral mined in Illinois is a sale at retail at the
15 place where the coal or other mineral mined in Illinois is
16 extracted from the earth. This paragraph does not apply to coal
17 or other mineral when it is delivered or shipped by the seller
18 to the purchaser at a point outside Illinois so that the sale
19 is exempt under the federal Constitution as a sale in
20 interstate or foreign commerce.
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     When certifying the amount of a monthly disbursement to a
26 municipality under this Section, the Department shall increase

 

 

09600SB2093ham003 - 156 - LRB096 11467 RLJ 41278 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     As used in this Section, "municipal" and "municipality"
6 means a city, village, or incorporated town, including an
7 incorporated town that has superseded a civil township.
8 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
 
9     (65 ILCS 5/8-11-1.7)
10     Sec. 8-11-1.7. Non-home rule municipal service occupation
11 tax; municipalities between 20,000 and 25,000. The corporate
12 authorities of a non-home rule municipality with a population
13 of more than 20,000 but less than 25,000 as determined by the
14 last preceding decennial census that has, prior to January 1,
15 1987, established a Redevelopment Project Area that has been
16 certified as a State Sales Tax Boundary and has issued bonds or
17 otherwise incurred indebtedness to pay for costs in excess of
18 $5,000,000, which is secured in part by a tax increment
19 allocation fund, in accordance with the provisions of Division
20 11-74.7 of this Code may, by passage of an ordinance, impose a
21 tax upon all persons engaged in the municipality in the
22 business of making sales of service. If imposed, the tax shall
23 only be imposed in .25% increments of the selling price of all
24 tangible personal property transferred by such servicemen
25 either in the form of tangible personal property or in the form

 

 

09600SB2093ham003 - 157 - LRB096 11467 RLJ 41278 a

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

 

 

09600SB2093ham003 - 158 - LRB096 11467 RLJ 41278 a

1 determine all rights to credit memoranda arising on account of
2 the erroneous payment of tax or penalty hereunder. In the
3 administration of and compliance with this Section, the
4 Department and persons who are subject to this Section shall
5 have the same rights, remedies, privileges, immunities,
6 powers, and duties, and be subject to the same conditions,
7 restrictions, limitations, penalties and definitions of terms,
8 and employ the same modes of procedure, as are prescribed in
9 Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
10 provisions therein other than the State rate of tax), 4 (except
11 that the reference to the State shall be to the taxing
12 municipality), 5, 7, 8 (except that the jurisdiction to which
13 the tax shall be a debt to the extent indicated in that Section
14 8 shall be the taxing municipality), 9 (except as to the
15 disposition of taxes and penalties collected, and except that
16 the returned merchandise credit for this municipal tax may not
17 be taken against any State tax), 10, 11, 12, (except the
18 reference therein to Section 2b of the Retailers' Occupation
19 Tax Act), 13 (except that any reference to the State shall mean
20 the taxing municipality), the first paragraph of Sections 15,
21 16, 17, 18, 19, and 20 of the Service 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     A tax may not be imposed by a municipality under this
25 Section unless the municipality also imposes a tax at the same
26 rate under Section 8-11-1.6 of this Act.

 

 

09600SB2093ham003 - 159 - LRB096 11467 RLJ 41278 a

1     Person subject to any tax imposed under the authority
2 granted in this Section may reimburse themselves for their
3 servicemen's tax liability hereunder by separately stating the
4 tax as an additional charge, which charge may be stated in
5 combination, in a single amount, with State tax that servicemen
6 are authorized to collect under the Service Use Tax Act, under
7 such 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 credit
10 memorandum, the Department shall notify the State Comptroller,
11 who shall cause the order to be drawn for the amount specified,
12 and to the person named, in such notification from the
13 Department. The refund shall be paid by the State Treasurer out
14 of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.
15     The Department shall forthwith pay over to the State
16 Treasurer, ex officio, as trustee, all taxes and penalties
17 collected hereunder.
18     As soon as possible after the first day of each month,
19 beginning January 1, 2011, upon certification of the Department
20 of Revenue, the Comptroller shall order transferred, and the
21 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
22 local sales tax increment, as defined in the Innovation
23 Development and Economy Act, collected under this Section
24 during the second preceding calendar month for sales within a
25 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 municipalities,
4 the municipalities to be those from which suppliers and
5 servicemen have paid taxes or penalties hereunder to the
6 Department during the second preceding calendar month. The
7 amount to be paid to each municipality shall be the amount (not
8 including credit memoranda) collected hereunder during the
9 second preceding calendar month by the Department, and not
10 including an amount equal to the amount of refunds made during
11 the second preceding calendar month by the Department on behalf
12 of such 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 and the General Revenue
16 Fund, provided for in this Section to be given to the
17 Comptroller by the Department, the Comptroller shall cause the
18 orders to be drawn for the respective amounts in accordance
19 with the directions contained in the certification.
20     When certifying the amount of a monthly disbursement to a
21 municipality under this Section, the Department shall increase
22 or decrease the amount by an amount necessary to offset any
23 misallocation of previous disbursements. The offset amount
24 shall be the amount erroneously disbursed within the previous 6
25 months from the time a misallocation is discovered.
26     Nothing in this Section shall be construed to authorize a

 

 

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1 municipality to impose a tax upon the privilege of engaging in
2 any business which under the constitution of the United States
3 may not be made the subject of taxation by this State.
4 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
 
5     (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
6     Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
7 Act. The corporate authorities of a home rule municipality may
8 impose a tax upon all persons engaged, in such municipality, in
9 the business of making sales of service at the same rate of tax
10 imposed pursuant to Section 8-11-1, of the selling price of all
11 tangible personal property transferred by such servicemen
12 either in the form of tangible personal property or in the form
13 of real estate as an incident to a sale of service. If imposed,
14 such tax shall only be imposed in 1/4% increments. On and after
15 September 1, 1991, this additional tax may not be imposed on
16 the sales of food for human consumption which is to be consumed
17 off the premises where it is sold (other than alcoholic
18 beverages, soft drinks and food which has been prepared for
19 immediate consumption) and prescription and nonprescription
20 medicines, drugs, medical appliances and insulin, urine
21 testing materials, syringes and needles used by diabetics. The
22 tax imposed by a home rule municipality pursuant to this
23 Section and all civil penalties that may be assessed as an
24 incident thereof shall be collected and enforced by the State
25 Department of Revenue. The certificate of registration which is

 

 

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

 

 

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1 State tax), 10, 11, 12 (except the reference therein to Section
2 2b of the Retailers' Occupation Tax Act), 13 (except that any
3 reference to the State shall mean the taxing municipality), the
4 first paragraph of Section 15, 16, 17 (except that credit
5 memoranda issued hereunder may not be used to discharge any
6 State tax liability), 18, 19 and 20 of the Service Occupation
7 Tax Act and Section 3-7 of the Uniform Penalty and Interest
8 Act, as fully as if those provisions were set forth herein.
9     No tax may be imposed by a home rule municipality pursuant
10 to this Section unless such municipality also imposes a tax at
11 the same rate pursuant to Section 8-11-1 of this Act.
12     Persons subject to any tax imposed pursuant to the
13 authority granted in this Section may reimburse themselves for
14 their serviceman's tax liability hereunder by separately
15 stating such tax as an additional charge, which charge may be
16 stated in combination, in a single amount, with State tax which
17 servicemen are authorized to collect under the Service Use Tax
18 Act, pursuant to such bracket schedules as the Department may
19 prescribe.
20     Whenever the Department determines that a refund should be
21 made under this Section to a claimant instead of issuing credit
22 memorandum, the Department shall notify the State Comptroller,
23 who shall cause the order to be drawn for the amount specified,
24 and to the person named, in such notification from the
25 Department. Such refund shall be paid by the State Treasurer
26 out of the home rule municipal retailers' occupation tax fund.

 

 

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1     The Department shall forthwith pay over to the State
2 Treasurer, ex-officio, as trustee, all taxes and penalties
3 collected hereunder.
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 Innovation
9 Development and Economy Act, collected under this Section
10 during the second preceding calendar month for sales within a
11 STAR bond district.
12     After the monthly transfer to the STAR Bonds Revenue Fund,
13 on On or before the 25th day of each calendar month, the
14 Department shall prepare and certify to the Comptroller the
15 disbursement of stated sums of money to named municipalities,
16 the municipalities to be those from which suppliers and
17 servicemen have paid taxes or penalties hereunder to the
18 Department during the second preceding calendar month. The
19 amount to be paid to each municipality shall be the amount (not
20 including credit memoranda) collected hereunder during the
21 second preceding calendar month by the Department, and not
22 including an amount equal to the amount of refunds made during
23 the second preceding calendar month by the Department on behalf
24 of such municipality, and not including any amounts that are
25 transferred to the STAR Bonds Revenue Fund. Within 10 days
26 after receipt, by the Comptroller, of the disbursement

 

 

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

 

 

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1 occupation tax during the period of July 1, 1990 through
2 September 30, 1990, plus amounts collected by the Department
3 and paid to such municipality through June 30, 1991, excluding
4 the 2 months of highest receipts. The monthly average for each
5 subsequent period of July 1 through June 30 shall be an amount
6 equal to the monthly distribution made to each such
7 municipality under the preceding paragraph during this period,
8 excluding the 2 months of highest receipts. The distribution
9 made in November 1991 and each year thereafter under this
10 paragraph and the preceding paragraph shall be reduced by the
11 amount allocated and disbursed under this paragraph in the
12 preceding period of July 1 through June 30. The Department
13 shall prepare and certify to the Comptroller for disbursement
14 the allocations made in accordance with this paragraph.
15     Nothing in this Section shall be construed to authorize a
16 municipality to impose a tax upon the privilege of engaging in
17 any business which under the constitution of the United States
18 may not be made the subject of taxation by this State.
19     An ordinance or resolution imposing or discontinuing a tax
20 hereunder or effecting a change in the rate thereof shall be
21 adopted and a certified copy thereof filed with the Department
22 on or before the first day of June, whereupon the Department
23 shall proceed to administer and enforce this Section as of the
24 first day of September next following such adoption and filing.
25 Beginning January 1, 1992, an ordinance or resolution imposing
26 or discontinuing the tax hereunder or effecting a change in the

 

 

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

 

 

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1 before the first day of October, whereupon the Department shall
2 proceed to administer and enforce this Section as of the first
3 day of January next following the adoption and filing.
4     Any unobligated balance remaining in the Municipal
5 Retailers' Occupation Tax Fund on December 31, 1989, which fund
6 was abolished by Public Act 85-1135, and all receipts of
7 municipal tax as a result of audits of liability periods prior
8 to January 1, 1990, shall be paid into the Local Government Tax
9 Fund, for distribution as provided by this Section prior to the
10 enactment of Public Act 85-1135. All receipts of municipal tax
11 as a result of an assessment not arising from an audit, for
12 liability periods prior to January 1, 1990, shall be paid into
13 the Local Government Tax Fund for distribution before July 1,
14 1990, as provided by this Section prior to the enactment of
15 Public Act 85-1135, and on and after July 1, 1990, all such
16 receipts shall be distributed as provided in Section 6z-18 of
17 the State Finance Act.
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 Home
22 Rule Municipal Service Occupation Tax Act.
23 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
24     (65 ILCS 5/11-74.3-6)
25     Sec. 11-74.3-6. Business district revenue and obligations.

 

 

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1     (a) If the corporate authorities of a municipality have
2 approved a business district development or redevelopment plan
3 and have elected to impose a tax by ordinance pursuant to
4 subsections (b), (c), or (d) of this Section, each year after
5 the date of the approval of the ordinance and until all
6 business district project costs and all municipal obligations
7 financing the business district project costs, if any, have
8 been paid in accordance with the business district development
9 or redevelopment plan, but in no event longer than 23 years
10 after the date of adoption of the ordinance approving the
11 business district development or redevelopment plan, all
12 amounts generated by the retailers' occupation tax and service
13 occupation tax shall be collected and the tax shall be enforced
14 by the Department of Revenue in the same manner as all
15 retailers' occupation taxes and service occupation taxes
16 imposed in the municipality imposing the tax and all amounts
17 generated by the hotel operators' occupation tax shall be
18 collected and the tax shall be enforced by the municipality in
19 the same manner as all hotel operators' occupation taxes
20 imposed in the municipality imposing the tax. The corporate
21 authorities of the municipality shall deposit the proceeds of
22 the taxes imposed under subsections (b), (c), and (d) into a
23 special fund held by the corporate authorities of the
24 municipality called the Business District Tax Allocation Fund
25 for the purpose of paying business district project costs and
26 obligations incurred in the payment of those costs.

 

 

09600SB2093ham003 - 170 - LRB096 11467 RLJ 41278 a

1     (b) The corporate authorities of a municipality that has
2 established a business district under this Division 74.3 may,
3 by ordinance or resolution, impose a Business District
4 Retailers' Occupation Tax upon all persons engaged in the
5 business of selling tangible personal property, other than an
6 item of tangible personal property titled or registered with an
7 agency of this State's government, at retail in the business
8 district at a rate not to exceed 1% of the gross receipts from
9 the sales made in the course of such business, to be imposed
10 only in 0.25% increments. The tax may not be imposed on food
11 for human consumption that is to be consumed off the premises
12 where it is sold (other than alcoholic beverages, soft drinks,
13 and food that has been prepared for immediate consumption),
14 prescription and nonprescription medicines, drugs, medical
15 appliances, modifications to a motor vehicle for the purpose of
16 rendering it usable by a disabled person, and insulin, urine
17 testing materials, syringes, and needles used by diabetics, for
18 human use.
19     The tax imposed under this subsection and all civil
20 penalties that may be assessed as an incident thereof shall be
21 collected and enforced by the Department of Revenue. The
22 certificate of registration that is issued by the Department to
23 a retailer under the Retailers' Occupation Tax Act shall permit
24 the retailer to engage in a business that is taxable under any
25 ordinance or resolution enacted pursuant to this subsection
26 without registering separately with the Department under such

 

 

09600SB2093ham003 - 171 - LRB096 11467 RLJ 41278 a

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

 

 

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1 schedules as the Department may prescribe.
2     Whenever the Department determines that a refund should be
3 made under this subsection to a claimant instead of issuing a
4 credit memorandum, the Department shall notify the State
5 Comptroller, who shall cause the order to be drawn for the
6 amount specified and to the person named in the notification
7 from the Department. The refund shall be paid by the State
8 Treasurer out of the business district retailers' occupation
9 tax fund.
10     The Department shall immediately pay over to the State
11 Treasurer, ex officio, as trustee, all taxes, penalties, and
12 interest collected under this subsection for deposit into the
13 business district retailers' occupation tax fund.
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 Innovation
19 Development and Economy Act, collected under this subsection
20 during the second preceding calendar month for sales within a
21 STAR bond district.
22     After the monthly transfer to the STAR Bonds Revenue Fund,
23 on On or before the 25th day of each calendar month, the
24 Department shall prepare and certify to the Comptroller the
25 disbursement of stated sums of money to named municipalities
26 from the business district retailers' occupation tax fund, the

 

 

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1 municipalities to be those from which retailers have paid taxes
2 or penalties under this subsection 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 under this subsection during the second
6 preceding calendar month by the Department plus an amount the
7 Department determines is necessary to offset any amounts that
8 were erroneously paid to a different taxing body, and not
9 including an amount equal to the amount of refunds made during
10 the second preceding calendar month by the Department, less 2%
11 of that amount, which shall be deposited into the Tax
12 Compliance and Administration Fund and shall be used by the
13 Department, subject to appropriation, to cover the costs of the
14 Department in administering and enforcing the provisions of
15 this subsection, on behalf of such municipality, and not
16 including any amount that the Department determines is
17 necessary to offset any amounts that were payable to a
18 different taxing body but were erroneously paid to the
19 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 provided for in this
23 subsection to be given to the Comptroller by the Department,
24 the Comptroller shall cause the orders to be drawn for the
25 respective amounts in accordance with the directions contained
26 in the certification. The proceeds of the tax paid to

 

 

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

 

 

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

 

 

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1 previous 6 months from the time a misallocation is discovered.
2     Nothing in this subsection shall be construed to authorize
3 the municipality to impose a tax upon the privilege of engaging
4 in any business which under the Constitution of the United
5 States may not be made the subject of taxation by this State.
6     If a tax is imposed under this subsection (b), a tax shall
7 also be imposed under subsection (c) of this Section.
8     (c) If a tax has been imposed under subsection (b), a
9 Business District Service Occupation Tax shall also be imposed
10 upon all persons engaged, in the business district, in the
11 business of making sales of service, who, as an incident to
12 making those sales of service, transfer tangible personal
13 property within the business district, either in the form of
14 tangible personal property or in the form of real estate as an
15 incident to a sale of service. The tax shall be imposed at the
16 same rate as the tax imposed in subsection (b) and shall not
17 exceed 1% of the selling price of tangible personal property so
18 transferred within the business district, to be imposed only in
19 0.25% increments. The tax may not be imposed on food for human
20 consumption that is to be consumed off the premises where it is
21 sold (other than alcoholic beverages, soft drinks, and food
22 that has been prepared for immediate consumption),
23 prescription and nonprescription medicines, drugs, medical
24 appliances, modifications to a motor vehicle for the purpose of
25 rendering it usable by a disabled person, and insulin, urine
26 testing materials, syringes, and needles used by diabetics, for

 

 

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

 

 

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1 the business district), 5, 7, 8 (except that the jurisdiction
2 to which the tax shall be a debt to the extent indicated in
3 that Section 8 shall be the municipality), 9 (except as to the
4 disposition of taxes and penalties collected, and except that
5 the returned merchandise credit for this tax may not be taken
6 against any State tax), 10, 11, 12 (except the reference
7 therein to Section 2b of the Retailers' Occupation Tax Act), 13
8 (except that any reference to the State shall mean the
9 municipality), the first paragraph of Section 15, and Sections
10 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
11 provisions of the Uniform Penalty and Interest Act, as fully as
12 if those provisions were set forth herein.
13     Persons subject to any tax imposed under the authority
14 granted in this subsection may reimburse themselves for their
15 serviceman's tax liability hereunder by separately stating the
16 tax as an additional charge, which charge may be stated in
17 combination, in a single amount, with State tax that servicemen
18 are authorized to collect under the Service Use Tax Act, in
19 accordance with such bracket schedules as the Department may
20 prescribe.
21     Whenever the Department determines that a refund should be
22 made under this subsection to a claimant instead of issuing
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the order to be drawn for the
25 amount specified, and to the person named, in such notification
26 from the Department. Such refund shall be paid by the State

 

 

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1 Treasurer out of the business district retailers' occupation
2 tax fund.
3     The Department shall forthwith pay over to the State
4 Treasurer, ex-officio, as trustee, all taxes, penalties, and
5 interest collected under this subsection for deposit into the
6 business district retailers' occupation tax fund.
7     As soon as possible after the first day of each month,
8 beginning January 1, 2011, upon certification of the Department
9 of Revenue, the Comptroller shall order transferred, and the
10 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
11 local sales tax increment, as defined in the Innovation
12 Development and Economy Act, collected under this subsection
13 during the second preceding calendar month for sales within a
14 STAR bond district.
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 named municipalities
19 from the business district retailers' occupation tax fund, the
20 municipalities to be those from which suppliers and servicemen
21 have paid taxes or penalties under this subsection to the
22 Department during the second preceding calendar month. The
23 amount to be paid to each municipality shall be the amount (not
24 including credit memoranda) collected under this subsection
25 during the second preceding calendar month by the Department,
26 less 2% of that amount, which shall be deposited into the Tax

 

 

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

 

 

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

 

 

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1 imposed under this subsection. If a retailer is incorrectly
2 included or excluded from the list of those required to collect
3 the tax under this subsection, both the Department of Revenue
4 and the retailer shall be held harmless if they reasonably
5 relied on information provided by the municipality.
6     A municipality that imposes the tax under this subsection
7 must submit to the Department of Revenue any other information
8 as the Department may require for the administration and
9 enforcement of the tax.
10     Nothing in this subsection shall be construed to authorize
11 the municipality to impose a tax upon the privilege of engaging
12 in any business which under the Constitution of the United
13 States may not be made the subject of taxation by the State.
14     If a tax is imposed under this subsection (c), a tax shall
15 also be imposed under subsection (b) of this Section.
16     (d) By ordinance, a municipality that has established a
17 business district under this Division 74.3 may impose an
18 occupation tax upon all persons engaged in the business
19 district in the business of renting, leasing, or letting rooms
20 in a hotel, as defined in the Hotel Operators' Occupation Tax
21 Act, at a rate not to exceed 1% of the gross rental receipts
22 from the renting, leasing, or letting of hotel rooms within the
23 business district, to be imposed only in 0.25% increments,
24 excluding, however, from gross rental receipts the proceeds of
25 renting, leasing, or letting to permanent residents of a hotel,
26 as defined in the Hotel Operators' Occupation Tax Act, and

 

 

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1 proceeds from the tax imposed under subsection (c) of Section
2 13 of the Metropolitan Pier and Exposition Authority Act.
3     The tax imposed by the municipality under this subsection
4 and all civil penalties that may be assessed as an incident to
5 that tax shall be collected and enforced by the municipality
6 imposing the tax. The municipality shall have full power to
7 administer and enforce this subsection, to collect all taxes
8 and penalties due under this subsection, to dispose of taxes
9 and penalties so collected in the manner provided in this
10 subsection, and to determine all rights to credit memoranda
11 arising on account of the erroneous payment of tax or penalty
12 under this subsection. In the administration of and compliance
13 with this subsection, the municipality and persons who are
14 subject to this subsection shall have the same rights,
15 remedies, privileges, immunities, powers, and duties, shall be
16 subject to the same conditions, restrictions, limitations,
17 penalties, and definitions of terms, and shall employ the same
18 modes of procedure as are employed with respect to a tax
19 adopted by the municipality under Section 8-3-14 of this Code.
20     Persons subject to any tax imposed under the authority
21 granted in this subsection may reimburse themselves for their
22 tax liability for that tax by separately stating that tax as an
23 additional charge, which charge may be stated in combination,
24 in a single amount, with State taxes imposed under the Hotel
25 Operators' Occupation Tax Act, and with any other tax.
26     Nothing in this subsection shall be construed to authorize

 

 

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1 a municipality to impose a tax upon the privilege of engaging
2 in any business which under the Constitution of the United
3 States may not be made the subject of taxation by this State.
4     The proceeds of the tax imposed under this subsection shall
5 be deposited into the Business District Tax Allocation Fund.
6     (e) Obligations issued pursuant to subsection (14) of
7 Section 11-74.3-3 shall be retired in the manner provided in
8 the ordinance authorizing the issuance of those obligations by
9 the receipts of taxes levied as authorized in subsections (12)
10 and (13) of Section 11-74.3-3. The ordinance shall pledge all
11 of the amounts in and to be deposited in the Business District
12 Tax Allocation Fund to the payment of business district project
13 costs and obligations. Obligations issued pursuant to
14 subsection (14) of Section 11-74.3-3 may be sold at public or
15 private sale at a price determined by the corporate authorities
16 of the municipality and no referendum approval of the electors
17 shall be required as a condition to the issuance of those
18 obligations. The ordinance authorizing the obligations may
19 require that the obligations contain a recital that they are
20 issued pursuant to subsection (14) of Section 11-74.3-3 and
21 this recital shall be conclusive evidence of their validity and
22 of the regularity of their issuance. The corporate authorities
23 of the municipality may also issue its obligations to refund,
24 in whole or in part, obligations previously issued by the
25 municipality under the authority of this Code, whether at or
26 prior to maturity. All obligations issued pursuant to

 

 

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1 subsection (14) of Section 11-74.3-3 shall not be regarded as
2 indebtedness of the municipality issuing the obligations for
3 the purpose of any limitation imposed by law.
4     (f) When business district costs, including, without
5 limitation, all municipal obligations financing business
6 district project costs incurred under Section 11-74.3-3 have
7 been paid, any surplus funds then remaining in the Business
8 District Tax Allocation Fund shall be distributed to the
9 municipal treasurer for deposit into the municipal general
10 corporate fund. Upon payment of all business district project
11 costs and retirement of obligations, but in no event more than
12 23 years after the date of adoption of the ordinance approving
13 the business district development or redevelopment plan, the
14 municipality shall adopt an ordinance immediately rescinding
15 the taxes imposed pursuant to subsections (12) and (13) of
16 Section 11-74.3-3.
17 (Source: P.A. 93-1053, eff. 1-1-05; 93-1089, eff. 3-7-05.)
 
18     Section 75. The Metropolitan Pier and Exposition Authority
19 Act is amended by changing Section 13 as follows:
 
20     (70 ILCS 210/13)  (from Ch. 85, par. 1233)
21     Sec. 13. (a) The Authority shall not have power to levy
22 taxes for any purpose, except as provided in subsections (b),
23 (c), (d), (e), and (f).
24     (b) By ordinance the Authority shall, as soon as

 

 

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1 practicable after the effective date of this amendatory Act of
2 1991, impose a Metropolitan Pier and Exposition Authority
3 Retailers' Occupation Tax upon all persons engaged in the
4 business of selling tangible personal property at retail within
5 the territory described in this subsection at the rate of 1.0%
6 of the gross receipts (i) from the sale of food, alcoholic
7 beverages, and soft drinks sold for consumption on the premises
8 where sold and (ii) from the sale of food, alcoholic beverages,
9 and soft drinks sold for consumption off the premises where
10 sold by a retailer whose principal source of gross receipts is
11 from the sale of food, alcoholic beverages, and soft drinks
12 prepared for immediate consumption.
13     The tax imposed under this subsection and all civil
14 penalties that may be assessed as an incident to that tax shall
15 be collected and enforced by the Illinois Department of
16 Revenue. The Department shall have full power to administer and
17 enforce this subsection, to collect all taxes and penalties so
18 collected in the manner provided in this subsection, and to
19 determine all rights to credit memoranda arising on account of
20 the erroneous payment of tax or penalty under this subsection.
21 In the administration of and compliance with this subsection,
22 the Department and persons who are subject to this subsection
23 shall have the same rights, remedies, privileges, immunities,
24 powers, and duties, shall be subject to the same conditions,
25 restrictions, limitations, penalties, exclusions, exemptions,
26 and definitions of terms, and shall employ the same modes of

 

 

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1 procedure applicable to this Retailers' Occupation Tax as are
2 prescribed in Sections 1, 2 through 2-65 (in respect to all
3 provisions of those Sections other than the State rate of
4 taxes), 2c, 2h, 2i, 3 (except as to the disposition of taxes
5 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
6 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13 and, and until
7 January 1, 1994, 13.5 of the Retailers' Occupation Tax Act,
8 and, on and after January 1, 1994, all applicable provisions of
9 the Uniform Penalty and Interest Act that are not inconsistent
10 with this Act, as fully as if provisions contained in those
11 Sections of the Retailers' Occupation Tax Act were set forth in
12 this subsection.
13     Persons subject to any tax imposed under the authority
14 granted in this subsection may reimburse themselves for their
15 seller's tax liability under this subsection by separately
16 stating that tax as an additional charge, which charge may be
17 stated in combination, in a single amount, with State taxes
18 that sellers are required to collect under the Use Tax Act,
19 pursuant to bracket schedules as the Department may prescribe.
20 The retailer filing the return shall, at the time of filing the
21 return, pay to the Department the amount of tax imposed under
22 this subsection, less a discount of 1.75%, which is allowed to
23 reimburse the retailer for the expenses incurred in keeping
24 records, preparing and filing returns, remitting the tax, and
25 supplying data to the Department on request.
26     Whenever the Department determines that a refund should be

 

 

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1 made under this subsection to a claimant instead of issuing a
2 credit memorandum, the Department shall notify the State
3 Comptroller, who shall cause a warrant to be drawn for the
4 amount specified and to the person named in the notification
5 from the Department. The refund shall be paid by the State
6 Treasurer out of the Metropolitan Pier and Exposition Authority
7 trust fund held by the State Treasurer as trustee for the
8 Authority.
9     Nothing in this subsection authorizes the Authority to
10 impose a tax upon the privilege of engaging in any business
11 that under the Constitution of the United States may not be
12 made the subject of taxation by this State.
13     The Department shall forthwith pay over to the State
14 Treasurer, ex officio, as trustee for the Authority, all taxes
15 and penalties collected under this subsection for deposit into
16 a trust fund held outside of the State Treasury.
17     As soon as possible after the first day of each month,
18 beginning January 1, 2011, upon certification of the Department
19 of Revenue, the Comptroller shall order transferred, and the
20 Treasurer shall transfer, to the STAR Bonds Revenue Fund the
21 local sales tax increment, as defined in the Innovation
22 Development and Economy Act, collected under this subsection
23 during the second preceding calendar month for sales within a
24 STAR bond district.
25     After the monthly transfer to the STAR Bonds Revenue Fund,
26 on On or before the 25th day of each calendar month, the

 

 

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1 Department shall prepare and certify to the Comptroller the
2 amounts to be paid under subsection (g) of this Section, which
3 shall be the amounts, not including credit memoranda, collected
4 under this subsection during the second preceding calendar
5 month by the Department, less any amounts determined by the
6 Department to be necessary for the payment of refunds, and less
7 2% of such balance, which sum shall be deposited by the State
8 Treasurer into the Tax Compliance and Administration Fund in
9 the State Treasury from which it shall be appropriated to the
10 Department to cover the costs of the Department in
11 administering and enforcing the provisions of this subsection,
12 and less any amounts that are transferred to the STAR Bonds
13 Revenue Fund. Within 10 days after receipt by the Comptroller
14 of the certification, the Comptroller shall cause the orders to
15 be drawn for the remaining amounts, and the Treasurer shall
16 administer those amounts as required in subsection (g).
17     A certificate of registration issued by the Illinois
18 Department of Revenue to a retailer under the Retailers'
19 Occupation Tax Act shall permit the registrant to engage in a
20 business that is taxed under the tax imposed under this
21 subsection, and no additional registration shall be required
22 under the ordinance imposing the tax or under this subsection.
23     A certified copy of any ordinance imposing or discontinuing
24 any tax under this subsection or effecting a change in the rate
25 of that tax shall be filed with the Department, whereupon the
26 Department shall proceed to administer and enforce this

 

 

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1 subsection on behalf of the Authority as of the first day of
2 the third calendar month following the date of filing.
3     The tax authorized to be levied under this subsection may
4 be levied within all or any part of the following described
5 portions of the metropolitan area:
6         (1) that portion of the City of Chicago located within
7     the following area: Beginning at the point of intersection
8     of the Cook County - DuPage County line and York Road, then
9     North along York Road to its intersection with Touhy
10     Avenue, then east along Touhy Avenue to its intersection
11     with the Northwest Tollway, then southeast along the
12     Northwest Tollway to its intersection with Lee Street, then
13     south along Lee Street to Higgins Road, then south and east
14     along Higgins Road to its intersection with Mannheim Road,
15     then south along Mannheim Road to its intersection with
16     Irving Park Road, then west along Irving Park Road to its
17     intersection with the Cook County - DuPage County line,
18     then north and west along the county line to the point of
19     beginning; and
20         (2) that portion of the City of Chicago located within
21     the following area: Beginning at the intersection of West
22     55th Street with Central Avenue, then east along West 55th
23     Street to its intersection with South Cicero Avenue, then
24     south along South Cicero Avenue to its intersection with
25     West 63rd Street, then west along West 63rd Street to its
26     intersection with South Central Avenue, then north along

 

 

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1     South Central Avenue to the point of beginning; and
2         (3) that portion of the City of Chicago located within
3     the following area: Beginning at the point 150 feet west of
4     the intersection of the west line of North Ashland Avenue
5     and the north line of West Diversey Avenue, then north 150
6     feet, then east along a line 150 feet north of the north
7     line of West Diversey Avenue extended to the shoreline of
8     Lake Michigan, then following the shoreline of Lake
9     Michigan (including Navy Pier and all other improvements
10     fixed to land, docks, or piers) to the point where the
11     shoreline of Lake Michigan and the Adlai E. Stevenson
12     Expressway extended east to that shoreline intersect, then
13     west along the Adlai E. Stevenson Expressway to a point 150
14     feet west of the west line of South Ashland Avenue, then
15     north along a line 150 feet west of the west line of South
16     and North Ashland Avenue to the point of beginning.
17     The tax authorized to be levied under this subsection may
18 also be levied on food, alcoholic beverages, and soft drinks
19 sold on boats and other watercraft departing from and returning
20 to the shoreline of Lake Michigan (including Navy Pier and all
21 other improvements fixed to land, docks, or piers) described in
22 item (3).
23     (c) By ordinance the Authority shall, as soon as
24 practicable after the effective date of this amendatory Act of
25 1991, impose an occupation tax upon all persons engaged in the
26 corporate limits of the City of Chicago in the business of

 

 

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1 renting, leasing, or letting rooms in a hotel, as defined in
2 the Hotel Operators' Occupation Tax Act, at a rate of 2.5% of
3 the gross rental receipts from the renting, leasing, or letting
4 of hotel rooms within the City of Chicago, excluding, however,
5 from gross rental receipts the proceeds of renting, leasing, or
6 letting to permanent residents of a hotel, as defined in that
7 Act. Gross rental receipts shall not include charges that are
8 added on account of the liability arising from any tax imposed
9 by the State or any governmental agency on the occupation of
10 renting, leasing, or letting rooms in a hotel.
11     The tax imposed by the Authority under this subsection and
12 all civil penalties that may be assessed as an incident to that
13 tax shall be collected and enforced by the Illinois Department
14 of Revenue. The certificate of registration that is issued by
15 the Department to a lessor under the Hotel Operators'
16 Occupation Tax Act shall permit that registrant to engage in a
17 business that is taxable under any ordinance enacted under this
18 subsection without registering separately with the Department
19 under that ordinance or under this subsection. The Department
20 shall have full power to administer and enforce this
21 subsection, to collect all taxes and penalties due under this
22 subsection, to dispose of taxes and penalties so collected in
23 the manner provided in this subsection, and to determine all
24 rights to credit memoranda arising on account of the erroneous
25 payment of tax or penalty under this subsection. In the
26 administration of and compliance with this subsection, the

 

 

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1 Department and persons who are subject to this subsection shall
2 have the same rights, remedies, privileges, immunities,
3 powers, and duties, shall be subject to the same conditions,
4 restrictions, limitations, penalties, and definitions of
5 terms, and shall employ the same modes of procedure as are
6 prescribed in the Hotel Operators' Occupation Tax Act (except
7 where that Act is inconsistent with this subsection), as fully
8 as if the provisions contained in the Hotel Operators'
9 Occupation Tax Act were set out in this subsection.
10     Whenever the Department determines that a refund should be
11 made under this subsection to a claimant instead of issuing a
12 credit memorandum, the Department shall notify the State
13 Comptroller, who shall cause a warrant 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 Metropolitan Pier and Exposition Authority
17 trust fund held by the State Treasurer as trustee for the
18 Authority.
19     Persons subject to any tax imposed under the authority
20 granted in this subsection may reimburse themselves for their
21 tax liability for that tax by separately stating that tax as an
22 additional charge, which charge may be stated in combination,
23 in a single amount, with State taxes imposed under the Hotel
24 Operators' Occupation Tax Act, the municipal tax imposed under
25 Section 8-3-13 of the Illinois Municipal Code, and the tax
26 imposed under Section 19 of the Illinois Sports Facilities

 

 

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1 Authority Act.
2     The person filing the return shall, at the time of filing
3 the return, pay to the Department the amount of tax, less a
4 discount of 2.1% or $25 per calendar year, whichever is
5 greater, which is allowed to reimburse the operator for the
6 expenses incurred in keeping records, preparing and filing
7 returns, remitting the tax, and supplying data to the
8 Department on request.
9     The Department shall forthwith pay over to the State
10 Treasurer, ex officio, as trustee for the Authority, all taxes
11 and penalties collected under this subsection for deposit into
12 a trust fund held outside the State Treasury. On or before the
13 25th day of each calendar month, the Department shall certify
14 to the Comptroller the amounts to be paid under subsection (g)
15 of this Section, which shall be the amounts (not including
16 credit memoranda) collected under this subsection during the
17 second preceding calendar month by the Department, less any
18 amounts determined by the Department to be necessary for
19 payment of refunds. Within 10 days after receipt by the
20 Comptroller of the Department's certification, the Comptroller
21 shall cause the orders to be drawn for such amounts, and the
22 Treasurer shall administer those amounts as required in
23 subsection (g).
24     A certified copy of any ordinance imposing or discontinuing
25 a tax under this subsection or effecting a change in the rate
26 of that tax shall be filed with the Illinois Department of

 

 

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1 Revenue, whereupon the Department shall proceed to administer
2 and enforce this subsection on behalf of the Authority as of
3 the first day of the third calendar month following the date of
4 filing.
5     (d) By ordinance the Authority shall, as soon as
6 practicable after the effective date of this amendatory Act of
7 1991, impose a tax upon all persons engaged in the business of
8 renting automobiles in the metropolitan area at the rate of 6%
9 of the gross receipts from that business, except that no tax
10 shall be imposed on the business of renting automobiles for use
11 as taxicabs or in livery service. The tax imposed under this
12 subsection and all civil penalties that may be assessed as an
13 incident to that tax shall be collected and enforced by the
14 Illinois Department of Revenue. The certificate of
15 registration issued by the Department to a retailer under the
16 Retailers' Occupation Tax Act or under the Automobile Renting
17 Occupation and Use Tax Act shall permit that person to engage
18 in a business that is taxable under any ordinance enacted under
19 this subsection without registering separately with the
20 Department under that ordinance or under this subsection. The
21 Department shall have full power to administer and enforce this
22 subsection, to collect all taxes and penalties due under this
23 subsection, to dispose of taxes and penalties so collected in
24 the manner provided in this subsection, and to determine all
25 rights to credit memoranda arising on account of the erroneous
26 payment of tax or penalty under this subsection. In the

 

 

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1 administration of and compliance with this subsection, the
2 Department and persons who are subject to this subsection shall
3 have the same rights, remedies, privileges, immunities,
4 powers, and duties, be subject to the same conditions,
5 restrictions, limitations, penalties, and definitions of
6 terms, and employ the same modes of procedure as are prescribed
7 in Sections 2 and 3 (in respect to all provisions of those
8 Sections other than the State rate of tax; and in respect to
9 the provisions of the Retailers' Occupation Tax Act referred to
10 in those Sections, except as to the disposition of taxes and
11 penalties collected, except for the provision allowing
12 retailers a deduction from the tax to cover certain costs, and
13 except that credit memoranda issued under this subsection may
14 not be used to discharge any State tax liability) of the
15 Automobile Renting Occupation and Use Tax Act, as fully as if
16 provisions contained in those Sections of that Act were set
17 forth in this subsection.
18     Persons subject to any tax imposed under the authority
19 granted in this subsection may reimburse themselves for their
20 tax liability under this subsection by separately stating that
21 tax as an additional charge, which charge may be stated in
22 combination, in a single amount, with State tax that sellers
23 are required to collect under the Automobile Renting Occupation
24 and Use Tax Act, pursuant to bracket schedules as the
25 Department may prescribe.
26     Whenever the Department determines that a refund should be

 

 

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1 made under this subsection to a claimant instead of issuing a
2 credit memorandum, the Department shall notify the State
3 Comptroller, who shall cause a warrant to be drawn for the
4 amount specified and to the person named in the notification
5 from the Department. The refund shall be paid by the State
6 Treasurer out of the Metropolitan Pier and Exposition Authority
7 trust fund held by the State Treasurer as trustee for the
8 Authority.
9     The Department shall forthwith pay over to the State
10 Treasurer, ex officio, as trustee, all taxes and penalties
11 collected under this subsection for deposit into a trust fund
12 held outside the State Treasury. On or before the 25th day of
13 each calendar month, the Department shall certify to the
14 Comptroller the amounts to be paid under subsection (g) of this
15 Section (not including credit memoranda) collected under this
16 subsection during the second preceding calendar month by the
17 Department, less any amount determined by the Department to be
18 necessary for payment of refunds. Within 10 days after receipt
19 by the Comptroller of the Department's certification, the
20 Comptroller shall cause the orders to be drawn for such
21 amounts, and the Treasurer shall administer those amounts as
22 required in subsection (g).
23     Nothing in this subsection authorizes the Authority to
24 impose a tax upon the privilege of engaging in any business
25 that under the Constitution of the United States may not be
26 made the subject of taxation by this State.

 

 

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1     A certified copy of any ordinance imposing or discontinuing
2 a tax under this subsection or effecting a change in the rate
3 of that tax shall be filed with the Illinois Department of
4 Revenue, whereupon the Department shall proceed to administer
5 and enforce this subsection on behalf of the Authority as of
6 the first day of the third calendar month following the date of
7 filing.
8     (e) By ordinance the Authority shall, as soon as
9 practicable after the effective date of this amendatory Act of
10 1991, impose a tax upon the privilege of using in the
11 metropolitan area an automobile that is rented from a rentor
12 outside Illinois and is titled or registered with an agency of
13 this State's government at a rate of 6% of the rental price of
14 that automobile, except that no tax shall be imposed on the
15 privilege of using automobiles rented for use as taxicabs or in
16 livery service. The tax shall be collected from persons whose
17 Illinois address for titling or registration purposes is given
18 as being in the metropolitan area. The tax shall be collected
19 by the Department of Revenue for the Authority. The tax must be
20 paid to the State or an exemption determination must be
21 obtained from the Department of Revenue before the title or
22 certificate of registration for the property may be issued. The
23 tax or proof of exemption may be transmitted to the Department
24 by way of the State agency with which or State officer with
25 whom the tangible personal property must be titled or
26 registered if the Department and that agency or State officer

 

 

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1 determine that this procedure will expedite the processing of
2 applications for title or registration.
3     The Department shall have full power to administer and
4 enforce this subsection, to collect all taxes, penalties, and
5 interest due under this subsection, to dispose of taxes,
6 penalties, and interest so collected in the manner provided in
7 this subsection, and to determine all rights to credit
8 memoranda or refunds arising on account of the erroneous
9 payment of tax, penalty, or interest under this subsection. In
10 the administration of and compliance with this subsection, the
11 Department and persons who are subject to this subsection shall
12 have the same rights, remedies, privileges, immunities,
13 powers, and duties, be subject to the same conditions,
14 restrictions, limitations, penalties, and definitions of
15 terms, and employ the same modes of procedure as are prescribed
16 in Sections 2 and 4 (except provisions pertaining to the State
17 rate of tax; and in respect to the provisions of the Use Tax
18 Act referred to in that Section, except provisions concerning
19 collection or refunding of the tax by retailers, except the
20 provisions of Section 19 pertaining to claims by retailers,
21 except the last paragraph concerning refunds, and except that
22 credit memoranda issued under this subsection may not be used
23 to discharge any State tax liability) of the Automobile Renting
24 Occupation and Use Tax Act, as fully as if provisions contained
25 in those Sections of that Act were set forth in this
26 subsection.

 

 

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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 a
3 credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause a warrant 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 Metropolitan Pier and Exposition Authority
8 trust fund held by the State Treasurer as trustee for the
9 Authority.
10     The Department shall forthwith pay over to the State
11 Treasurer, ex officio, as trustee, all taxes, penalties, and
12 interest collected under this subsection for deposit into a
13 trust fund held outside the State Treasury. On or before the
14 25th day of each calendar month, the Department shall certify
15 to the State Comptroller the amounts to be paid under
16 subsection (g) of this Section, which shall be the amounts (not
17 including credit memoranda) collected under this subsection
18 during the second preceding calendar month by the Department,
19 less any amounts determined by the Department to be necessary
20 for payment of refunds. Within 10 days after receipt by the
21 State Comptroller of the Department's certification, the
22 Comptroller shall cause the orders to be drawn for such
23 amounts, and the Treasurer shall administer those amounts as
24 required in subsection (g).
25     A certified copy of any ordinance imposing or discontinuing
26 a tax or effecting a change in the rate of that tax shall be

 

 

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1 filed with the Illinois Department of Revenue, whereupon the
2 Department shall proceed to administer and enforce this
3 subsection on behalf of the Authority as of the first day of
4 the third calendar month following the date of filing.
5     (f) By ordinance the Authority shall, as soon as
6 practicable after the effective date of this amendatory Act of
7 1991, impose an occupation tax on all persons, other than a
8 governmental agency, engaged in the business of providing
9 ground transportation for hire to passengers in the
10 metropolitan area at a rate of (i) $2 per taxi or livery
11 vehicle departure with passengers for hire from commercial
12 service airports in the metropolitan area, (ii) for each
13 departure with passengers for hire from a commercial service
14 airport in the metropolitan area in a bus or van operated by a
15 person other than a person described in item (iii): $9 per bus
16 or van with a capacity of 1-12 passengers, $18 per bus or van
17 with a capacity of 13-24 passengers, and $27 per bus or van
18 with a capacity of over 24 passengers, and (iii) 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 regulated by the Interstate Commerce Commission or
22 Illinois Commerce Commission, operating scheduled service from
23 the airport, and charging fares on a per passenger basis: $1
24 per passenger for hire in each bus or van. The term "commercial
25 service airports" means those airports receiving scheduled
26 passenger service and enplaning more than 100,000 passengers

 

 

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1 per year.
2     In the ordinance imposing the tax, the Authority may
3 provide for the administration and enforcement of the tax and
4 the collection of the tax from persons subject to the tax as
5 the Authority determines to be necessary or practicable for the
6 effective administration of the tax. The Authority may enter
7 into agreements as it deems appropriate with any governmental
8 agency providing for that agency to act as the Authority's
9 agent to collect the tax.
10     In the ordinance imposing the tax, the Authority may
11 designate a method or methods for persons subject to the tax to
12 reimburse themselves for the tax liability arising under the
13 ordinance (i) by separately stating the full amount of the tax
14 liability as an additional charge to passengers departing the
15 airports, (ii) by separately stating one-half of the tax
16 liability as an additional charge to both passengers departing
17 from and to passengers arriving at the airports, or (iii) by
18 some other method determined by the Authority.
19     All taxes, penalties, and interest collected under any
20 ordinance adopted under this subsection, less any amounts
21 determined to be necessary for the payment of refunds, shall be
22 paid forthwith to the State Treasurer, ex officio, for deposit
23 into a trust fund held outside the State Treasury and shall be
24 administered by the State Treasurer as provided in subsection
25 (g) of this Section.
26     (g) Amounts deposited from the proceeds of taxes imposed by

 

 

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1 the Authority under subsections (b), (c), (d), (e), and (f) of
2 this Section and amounts deposited under Section 19 of the
3 Illinois Sports Facilities Authority Act shall be held in a
4 trust fund outside the State Treasury and shall be administered
5 by the Treasurer as follows: first, an amount necessary for the
6 payment of refunds shall be retained in the trust fund; second,
7 the balance of the proceeds deposited in the trust fund during
8 fiscal year 1993 shall be retained in the trust fund during
9 that year and thereafter shall be administered as a reserve to
10 fund the deposits required in item "third"; third, beginning
11 July 20, 1993, and continuing each month thereafter, provided
12 that the amount requested in the certificate of the Chairman of
13 the Authority filed under Section 8.25f of the State Finance
14 Act has been appropriated for payment to the Authority, 1/8 of
15 the annual amount requested in that certificate together with
16 any cumulative deficiencies shall be transferred from the trust
17 fund into the McCormick Place Expansion Project Fund in the
18 State Treasury until 100% of the amount requested in that
19 certificate plus any cumulative deficiencies in the amounts
20 transferred into the McCormick Place Expansion Project Fund
21 under this item "third", have been so transferred; fourth, the
22 balance shall be maintained in the trust fund; fifth, on July
23 20, 1994, and on July 20 of each year thereafter the Treasurer
24 shall calculate for the previous fiscal year the surplus
25 revenues in the trust fund and pay that amount to the
26 Authority. "Surplus revenues" shall mean the difference

 

 

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1 between the amount in the trust fund on June 30 of the fiscal
2 year previous to the current fiscal year (excluding amounts
3 retained for refunds under item "first") minus the amount
4 deposited in the trust fund during fiscal year 1993 under item
5 "second". Moneys received by the Authority under item "fifth"
6 may be used solely for the purposes of paying debt service on
7 the bonds and notes issued by the Authority, including early
8 redemption of those bonds or notes, and for the purposes of
9 repair, replacement, and improvement of the grounds,
10 buildings, and facilities of the Authority; provided that any
11 moneys in excess of $50,000,000 held by the Authority as of
12 June 30 in any fiscal year and received by the Authority under
13 item "fifth" shall be used solely for paying the debt service
14 on or early redemption of the Authority's bonds or notes. When
15 bonds and notes issued under Section 13.2, or bonds or notes
16 issued to refund those bonds and notes, are no longer
17 outstanding, the balance in the trust fund shall be paid to the
18 Authority.
19     (h) The ordinances imposing the taxes authorized by this
20 Section shall be repealed when bonds and notes issued under
21 Section 13.2 or bonds and notes issued to refund those bonds
22 and notes are no longer outstanding.
23 (Source: P.A. 90-612, eff. 7-8-98.)
 
24     Section 80. The Flood Prevention District Act is amended by
25 changing Section 25 as follows:
 

 

 

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1     (70 ILCS 750/25)
2     Sec. 25. Flood prevention retailers' and service
3 occupation taxes.
4     (a) If the Board of Commissioners of a flood prevention
5 district determines that an emergency situation exists
6 regarding levee repair or flood prevention, and upon an
7 ordinance confirming the determination adopted by the
8 affirmative vote of a majority of the members of the county
9 board of the county in which the district is situated, the
10 county may impose a flood prevention retailers' occupation tax
11 upon all persons engaged in the business of selling tangible
12 personal property at retail within the territory of the
13 district to provide revenue to pay the costs of providing
14 emergency levee repair and flood prevention and to secure the
15 payment of bonds, notes, and other evidences of indebtedness
16 issued under this Act for a period not to exceed 25 years or as
17 required to repay the bonds, notes, and other evidences of
18 indebtedness issued under this Act. The tax rate shall be 0.25%
19 of the gross receipts from all taxable sales made in the course
20 of that business. The tax imposed under this Section and all
21 civil penalties that may be assessed as an incident thereof
22 shall be collected and enforced by the State Department of
23 Revenue. The Department shall have full power to administer and
24 enforce this Section; to collect all taxes and penalties so
25 collected in the manner hereinafter provided; and to determine

 

 

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

 

 

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

 

 

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

 

 

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1 agency of the State; food for human consumption that is to be
2 consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks, and food that has been
4 prepared for immediate consumption); prescription and
5 non-prescription medicines, drugs, and medical appliances;
6 modifications to a motor vehicle for the purpose of rendering
7 it usable by a disabled person; or insulin, urine testing
8 materials, and syringes and needles used by diabetics.
9     (d) Nothing in this Section shall be construed to authorize
10 the district to impose a tax upon the privilege of engaging in
11 any business that under the Constitution of the United States
12 may not be made the subject of taxation by the State.
13     (e) The certificate of registration that is issued by the
14 Department to a retailer under the Retailers' Occupation Tax
15 Act or a serviceman under the Service Occupation Tax Act
16 permits the retailer or serviceman to engage in a business that
17 is taxable without registering separately with the Department
18 under an ordinance or resolution under this Section.
19     (f) The Department shall immediately pay over to the State
20 Treasurer, ex officio, as trustee, all taxes and penalties
21 collected under this Section to be deposited into the Flood
22 Prevention Occupation Tax Fund, which shall be an
23 unappropriated trust fund held outside the State treasury.
24     As soon as possible after the first day of each month,
25 beginning January 1, 2011, upon certification of the Department
26 of Revenue, the Comptroller shall order transferred, and the

 

 

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

 

 

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1 that the Department determines is necessary to offset any
2 amounts that were payable to a different taxing body but were
3 erroneously paid to the county; and (v) less any amounts that
4 are transferred to the STAR Bonds Revenue Fund. When certifying
5 the amount of a monthly disbursement to a county under this
6 Section, the Department shall increase or decrease the amounts
7 by an amount necessary to offset any miscalculation of previous
8 disbursements within the previous 6 months from the time a
9 miscalculation is discovered.
10     Within 10 days after receipt by the Comptroller from the
11 Department of the disbursement certification to the counties
12 provided for in this Section, the Comptroller shall cause the
13 orders to be drawn for the respective amounts in accordance
14 with directions contained in the certification.
15     If the Department determines that a refund should be made
16 under this Section to a claimant instead of issuing a credit
17 memorandum, then the Department shall notify the Comptroller,
18 who shall cause the order to be drawn for the amount specified
19 and to the person named in the notification from the
20 Department. The refund shall be paid by the Treasurer out of
21 the Flood Prevention Occupation Tax Fund.
22     (g) If a county imposes a tax under this Section, then the
23 county board shall, by ordinance, discontinue the tax upon the
24 payment of all indebtedness of the flood prevention district.
25 The tax shall not be discontinued until all indebtedness of the
26 District has been paid.

 

 

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1     (h) Any ordinance imposing the tax under this Section, or
2 any ordinance that discontinues the tax, must be certified by
3 the county clerk and filed with the Illinois Department of
4 Revenue either (i) on or before the first day of April,
5 whereupon the Department shall proceed to administer and
6 enforce the tax or change in the rate as of the first day of
7 July next following the filing; or (ii) on or before the first
8 day of October, whereupon the Department shall proceed to
9 administer and enforce the tax or change in the rate as of the
10 first day of January next following the filing.
11     (j) County Flood Prevention Occupation Tax Fund. All
12 proceeds received by a county from a tax distribution under
13 this Section must be maintained in a special fund known as the
14 [name of county] flood prevention occupation tax fund. The
15 county shall, at the direction of the flood prevention
16 district, use moneys in the fund to pay the costs of providing
17 emergency levee repair and flood prevention and to pay bonds,
18 notes, and other evidences of indebtedness issued under this
19 Act.
20     (k) This Section may be cited as the Flood Prevention
21 Occupation Tax Law.
22 (Source: P.A. 95-719, eff. 5-21-08; 95-723, eff. 6-23-08.)
 
23     Section 85. The Metro-East Park and Recreation District Act
24 is amended by changing Section 30 as follows:
 

 

 

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1     (70 ILCS 1605/30)
2     Sec. 30. Taxes.
3     (a) The board shall impose a tax upon all persons engaged
4 in the business of selling tangible personal property, other
5 than personal property titled or registered with an agency of
6 this State's government, at retail in the District on the gross
7 receipts from the sales made in the course of business. This
8 tax shall be imposed only at the rate of one-tenth of one per
9 cent.
10     This additional tax may not be imposed on the sales of food
11 for human consumption that is to be consumed off the premises
12 where it is sold (other than alcoholic beverages, soft drinks,
13 and food which has been prepared for immediate consumption) and
14 prescription and non-prescription medicines, drugs, medical
15 appliances, and insulin, urine testing materials, syringes,
16 and needles used by diabetics. The tax imposed by the Board
17 under this Section and all civil penalties that may be assessed
18 as an incident of the tax shall be collected and enforced by
19 the Department of Revenue. The certificate of registration that
20 is issued by the Department to a retailer under the Retailers'
21 Occupation Tax Act shall permit the retailer to engage in a
22 business that is taxable without registering separately with
23 the Department under an ordinance or resolution under this
24 Section. The Department has full power to administer and
25 enforce this Section, to collect all taxes and penalties due
26 under this Section, to dispose of taxes and penalties so

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 following the filing.
2     (g) When certifying the amount of a monthly disbursement to
3 the District under this Section, the Department shall increase
4 or decrease the amounts by an amount necessary to offset any
5 misallocation of previous disbursements. The offset amount
6 shall be the amount erroneously disbursed within the previous 6
7 months from the time a misallocation is discovered.
8 (Source: P.A. 91-103, eff. 7-13-99.)
 
9     Section 90. The Local Mass T