97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2846

 

Introduced 2/22/2011, by Rep. Patrick J. Verschoore - Roger L. Eddy

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 350/15  from Ch. 17, par. 6915
55 ILCS 5/5-1006.7
105 ILCS 5/10-22.36  from Ch. 122, par. 10-22.36

    Amends the Counties Code. Requires the imposition of a school facility occupation tax in a county if the electors of the county have approved a proposition for the tax. Provides that a school facility occupation tax imposed by approval of the electors may be reduced or discontinued if the electors have voted to reduce or discontinue the tax. Provides that the State will not limit or alter rights and powers so as to impair the rights and remedies of holders of bonds secured by proceeds of a school facility occupation tax. Amends the Local Government Debt Reform Act. Removes a sentence providing that a backdoor referendum is not required for alternate bonds if the proceeds backing the alternate bonds are realized from revenues obtained from a school facility occupation tax. Amends the School Code. Provides that a referendum shall not be required if the purchase, construction, or building of a school building is paid from funds received from the County School Facility Occupation Tax Law or from the proceeds of bonds secured by revenues obtained from that Law. Effective immediately.


LRB097 09014 PJG 49148 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2846LRB097 09014 PJG 49148 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Local Government Debt Reform Act is amended
5by changing Section 15 as follows:
 
6    (30 ILCS 350/15)  (from Ch. 17, par. 6915)
7    Sec. 15. Double-barrelled bonds. Whenever revenue bonds
8have been authorized to be issued pursuant to applicable law or
9whenever there exists for a governmental unit a revenue source,
10the procedures set forth in this Section may be used by a
11governing body. General obligation bonds may be issued in lieu
12of such revenue bonds as authorized, and general obligation
13bonds may be issued payable from any revenue source. Such
14general obligation bonds may be referred to as "alternate
15bonds". Alternate bonds may be issued without any referendum or
16backdoor referendum except as provided in this Section, upon
17the terms provided in Section 10 of this Act without reference
18to other provisions of law, but only upon the conditions
19provided in this Section. Alternate bonds shall not be regarded
20as or included in any computation of indebtedness for the
21purpose of any statutory provision or limitation except as
22expressly provided in this Section.
23    Such conditions are:

 

 

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1    (a) Alternate bonds shall be issued for a lawful corporate
2purpose. If issued in lieu of revenue bonds, alternate bonds
3shall be issued for the purposes for which such revenue bonds
4shall have been authorized. If issued payable from a revenue
5source in the manner hereinafter provided, which revenue source
6is limited in its purposes or applications, then the alternate
7bonds shall be issued only for such limited purposes or
8applications. Alternate bonds may be issued payable from either
9enterprise revenues or revenue sources, or both.
10    (b) Alternate bonds shall be subject to backdoor
11referendum. The provisions of Section 5 of this Act shall apply
12to such backdoor referendum, together with the provisions
13hereof. The authorizing ordinance shall be published in a
14newspaper of general circulation in the governmental unit.
15Along with or as part of the authorizing ordinance, there shall
16be published a notice of (1) the specific number of voters
17required to sign a petition requesting that the issuance of the
18alternate bonds be submitted to referendum, (2) the time when
19such petition must be filed, (3) the date of the prospective
20referendum, and (4), with respect to authorizing ordinances
21adopted on or after January 1, 1991, a statement that
22identifies any revenue source that will be used to pay debt
23service on the alternate bonds. The clerk or secretary of the
24governmental unit shall make a petition form available to
25anyone requesting one. If no petition is filed with the clerk
26or secretary within 30 days of publication of the authorizing

 

 

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1ordinance and notice, the alternate bonds shall be authorized
2to be issued. But if within this 30 days period, a petition is
3filed with such clerk or secretary signed by electors numbering
4the greater of (i) 7.5% of the registered voters in the
5governmental unit or (ii) 200 of those registered voters or 15%
6of those registered voters, whichever is less, asking that the
7issuance of such alternate bonds be submitted to referendum,
8the clerk or secretary shall certify such question for
9submission at an election held in accordance with the general
10election law. The question on the ballot shall include a
11statement of any revenue source that will be used to pay debt
12service on the alternate bonds. The alternate bonds shall be
13authorized to be issued if a majority of the votes cast on the
14question at such election are in favor thereof provided that
15notice of the bond referendum, if held before July 1, 1999, has
16been given in accordance with the provisions of Section 12-5 of
17the Election Code in effect at the time of the bond referendum,
18at least 10 and not more than 45 days before the date of the
19election, notwithstanding the time for publication otherwise
20imposed by Section 12-5. Notices required in connection with
21the submission of public questions on or after July 1, 1999
22shall be as set forth in Section 12-5 of the Election Code.
23Backdoor referendum proceedings for bonds and alternate bonds
24to be issued in lieu of such bonds may be conducted at the same
25time.
26    (c) To the extent payable from enterprise revenues, such

 

 

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1revenues shall have been determined by the governing body to be
2sufficient to provide for or pay in each year to final maturity
3of such alternate bonds all of the following: (1) costs of
4operation and maintenance of the utility or enterprise, but not
5including depreciation, (2) debt service on all outstanding
6revenue bonds payable from such enterprise revenues, (3) all
7amounts required to meet any fund or account requirements with
8respect to such outstanding revenue bonds, (4) other
9contractual or tort liability obligations, if any, payable from
10such enterprise revenues, and (5) in each year, an amount not
11less than 1.25 times debt service of all (i) alternate bonds
12payable from such enterprise revenues previously issued and
13outstanding and (ii) alternate bonds proposed to be issued. To
14the extent payable from one or more revenue sources, such
15sources shall have been determined by the governing body to
16provide in each year, an amount not less than 1.25 times debt
17service of all alternate bonds payable from such revenue
18sources previously issued and outstanding and alternate bonds
19proposed to be issued. The 1.25 figure in the preceding
20sentence shall be reduced to 1.10 if the revenue source is a
21governmental revenue source. The conditions enumerated in this
22subsection (c) need not be met for that amount of debt service
23provided for by the setting aside of proceeds of bonds or other
24moneys at the time of the delivery of such bonds.
25Notwithstanding any other provision of this Section, a backdoor
26referendum is not required if the proceeds backing the debt are

 

 

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1realized from revenues obtained from the County School Facility
2Occupation Tax Law under Section 5-1006.7 of the Counties Code.
3    (c-1) In the case of alternate bonds issued as variable
4rate bonds (including refunding bonds), debt service shall be
5projected based on the rate for the most recent date shown in
6the 20 G.O. Bond Index of average municipal bond yields as
7published in the most recent edition of The Bond Buyer
8published in New York, New York (or any successor publication
9or index, or if such publication or index is no longer
10published, then any index of long-term municipal tax-exempt
11bond yields selected by the governmental unit), as of the date
12of determination referred to in subsection (c) of this Section.
13Any interest or fees that may be payable to the provider of a
14letter of credit, line of credit, surety bond, bond insurance,
15or other credit enhancement relating to such alternate bonds
16and any fees that may be payable to any remarketing agent need
17not be taken into account for purposes of such projection. If
18the governmental unit enters into an agreement in connection
19with such alternate bonds at the time of issuance thereof
20pursuant to which the governmental unit agrees for a specified
21period of time to pay an amount calculated at an agreed-upon
22rate or index based on a notional amount and the other party
23agrees to pay the governmental unit an amount calculated at an
24agreed-upon rate or index based on such notional amount,
25interest shall be projected for such specified period of time
26on the basis of the agreed-upon rate payable by the

 

 

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1governmental unit.
2    (d) The determination of the sufficiency of enterprise
3revenues or a revenue source, as applicable, shall be supported
4by reference to the most recent audit of the governmental unit,
5which shall be for a fiscal year ending not earlier than 18
6months previous to the time of issuance of the alternate bonds.
7If such audit does not adequately show such enterprise revenues
8or revenue source, as applicable, or if such enterprise
9revenues or revenue source, as applicable, are shown to be
10insufficient, then the determination of sufficiency shall be
11supported by the report of an independent accountant or
12feasibility analyst, the latter having a national reputation
13for expertise in such matters, demonstrating the sufficiency of
14such revenues and explaining, if appropriate, by what means the
15revenues will be greater than as shown in the audit. Whenever
16such sufficiency is demonstrated by reference to a schedule of
17higher rates or charges for enterprise revenues or a higher tax
18imposition for a revenue source, such higher rates, charges or
19taxes shall have been properly imposed by an ordinance adopted
20prior to the time of delivery of alternate bonds. The reference
21to and acceptance of an audit or report, as the case may be,
22and the determination of the governing body as to sufficiency
23of enterprise revenues or a revenue source shall be conclusive
24evidence that the conditions of this Section have been met and
25that the alternate bonds are valid.
26    (e) The enterprise revenues or revenue source, as

 

 

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1applicable, shall be in fact pledged to the payment of the
2alternate bonds; and the governing body shall covenant, to the
3extent it is empowered to do so, to provide for, collect and
4apply such enterprise revenues or revenue source, as
5applicable, to the payment of the alternate bonds and the
6provision of not less than an additional .25 (or .10 for
7governmental revenue sources) times debt service. The pledge
8and establishment of rates or charges for enterprise revenues,
9or the imposition of taxes in a given rate or amount, as
10provided in this Section for alternate bonds, shall constitute
11a continuing obligation of the governmental unit with respect
12to such establishment or imposition and a continuing
13appropriation of the amounts received. All covenants relating
14to alternate bonds and the conditions and obligations imposed
15by this Section are enforceable by any bondholder of alternate
16bonds affected, any taxpayer of the governmental unit, and the
17People of the State of Illinois acting through the Attorney
18General or any designee, and in the event that any such action
19results in an order finding that the governmental unit has not
20properly set rates or charges or imposed taxes to the extent it
21is empowered to do so or collected and applied enterprise
22revenues or any revenue source, as applicable, as required by
23this Act, the plaintiff in any such action shall be awarded
24reasonable attorney's fees. The intent is that such enterprise
25revenues or revenue source, as applicable, shall be sufficient
26and shall be applied to the payment of debt service on such

 

 

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1alternate bonds so that taxes need not be levied, or if levied
2need not be extended, for such payment. Nothing in this Section
3shall inhibit or restrict the authority of a governing body to
4determine the lien priority of any bonds, including alternate
5bonds, which may be issued with respect to any enterprise
6revenues or revenue source.
7    In the event that alternate bonds shall have been issued
8and taxes, other than a designated revenue source, shall have
9been extended pursuant to the general obligation, full faith
10and credit promise supporting such alternate bonds, then the
11amount of such alternate bonds then outstanding shall be
12included in the computation of indebtedness of the governmental
13unit for purposes of all statutory provisions or limitations
14until such time as an audit of the governmental unit shall show
15that the alternate bonds have been paid from the enterprise
16revenues or revenue source, as applicable, pledged thereto for
17a complete fiscal year.
18    Alternate bonds may be issued to refund or advance refund
19alternate bonds without meeting any of the conditions set forth
20in this Section, except that the term of the refunding bonds
21shall not be longer than the term of the refunded bonds and
22that the debt service payable in any year on the refunding
23bonds shall not exceed the debt service payable in such year on
24the refunded bonds.
25    Once issued, alternate bonds shall be and forever remain
26until paid or defeased the general obligation of the

 

 

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1governmental unit, for the payment of which its full faith and
2credit are pledged, and shall be payable from the levy of taxes
3as is provided in this Act for general obligation bonds.
4    The changes made by this amendatory Act of 1990 do not
5affect the validity of bonds authorized before September 1,
61990.
7(Source: P.A. 95-675, eff. 10-11-07.)
 
8    Section 10. The Counties Code is amended by changing
9Section 5-1006.7 as follows:
 
10    (55 ILCS 5/5-1006.7)
11    Sec. 5-1006.7. School facility occupation taxes.
12    (a) In The county board of any county may impose a tax
13shall be imposed upon all persons engaged in the business of
14selling tangible personal property, other than personal
15property titled or registered with an agency of this State's
16government, at retail in the county on the gross receipts from
17the sales made in the course of business to provide revenue to
18be used exclusively for school facility purposes if a
19proposition for the tax has been submitted to the electors of
20that county and approved by a majority of those voting on the
21question as provided in subsection (c). The tax under this
22Section shall may be imposed only in one-quarter percent
23increments and may not exceed 1%.
24    This additional tax may not be imposed on the sale of food

 

 

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1for human consumption that is to be consumed off the premises
2where it is sold (other than alcoholic beverages, soft drinks,
3and food that has been prepared for immediate consumption) and
4prescription and non-prescription medicines, drugs, medical
5appliances and insulin, urine testing materials, syringes and
6needles used by diabetics. The Department of Revenue has full
7power to administer and enforce this subsection, to collect all
8taxes and penalties due under this subsection, to dispose of
9taxes and penalties so collected in the manner provided in this
10subsection, and to determine all rights to credit memoranda
11arising on account of the erroneous payment of a tax or penalty
12under this subsection. The Department shall deposit all taxes
13and penalties collected under this subsection into a special
14fund created for that purpose.
15    In the administration of and compliance with this
16subsection, the Department and persons who are subject to this
17subsection (i) have the same rights, remedies, privileges,
18immunities, powers, and duties, (ii) are subject to the same
19conditions, restrictions, limitations, penalties, and
20definitions of terms, and (iii) shall employ the same modes of
21procedure as are set forth in Sections 1 through 1o, 2 through
222-70 (in respect to all provisions contained in those Sections
23other than the State rate of tax), 2a through 2h, 3 (except as
24to the disposition of taxes and penalties collected), 4, 5, 5a,
255b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
269, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act

 

 

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1and all provisions of the Uniform Penalty and Interest Act as
2if those provisions were set forth in this subsection.
3    The certificate of registration that is issued by the
4Department to a retailer under the Retailers' Occupation Tax
5Act permits the retailer to engage in a business that is
6taxable without registering separately with the Department
7under an ordinance or resolution under this subsection.
8    Persons subject to any tax imposed under the authority
9granted in this subsection may reimburse themselves for their
10seller's tax liability by separately stating that tax as an
11additional charge, which may be stated in combination, in a
12single amount, with State tax that sellers are required to
13collect under the Use Tax Act, pursuant to any bracketed
14schedules set forth by the Department.
15    (b) If a tax has been imposed under subsection (a), then a
16service occupation tax must also be imposed at the same rate
17upon all persons engaged, in the county, in the business of
18making sales of service, who, as an incident to making those
19sales of service, transfer tangible personal property within
20the county as an incident to a sale of service.
21    This tax may not be imposed on sales of food for human
22consumption that is to be consumed off the premises where it is
23sold (other than alcoholic beverages, soft drinks, and food
24prepared for immediate consumption) and prescription and
25non-prescription medicines, drugs, medical appliances and
26insulin, urine testing materials, syringes, and needles used by

 

 

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1diabetics.
2    The tax imposed under this subsection and all civil
3penalties that may be assessed as an incident thereof shall be
4collected and enforced by the Department and deposited into a
5special fund created for that purpose. The Department has full
6power to administer and enforce this subsection, to collect all
7taxes and penalties due under this subsection, to dispose of
8taxes and penalties so collected in the manner provided in this
9subsection, and to determine all rights to credit memoranda
10arising on account of the erroneous payment of a tax or penalty
11under this subsection.
12    In the administration of and compliance with this
13subsection, the Department and persons who are subject to this
14subsection shall (i) have the same rights, remedies,
15privileges, immunities, powers and duties, (ii) be subject to
16the same conditions, restrictions, limitations, penalties and
17definition of terms, and (iii) employ the same modes of
18procedure as are set forth in Sections 2 (except that that
19reference to State in the definition of supplier maintaining a
20place of business in this State means the county), 2a through
212d, 3 through 3-50 (in respect to all provisions contained in
22those Sections other than the State rate of tax), 4 (except
23that the reference to the State shall be to the county), 5, 7,
248 (except that the jurisdiction to which the tax is a debt to
25the extent indicated in that Section 8 is the county), 9
26(except as to the disposition of taxes and penalties

 

 

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1collected), 10, 11, 12 (except the reference therein to Section
22b of the Retailers' Occupation Tax Act), 13 (except that any
3reference to the State means the county), Section 15, 16, 17,
418, 19, and 20 of the Service Occupation Tax Act and all
5provisions of the Uniform Penalty and Interest Act, as fully as
6if those provisions were set forth herein.
7    Persons subject to any tax imposed under the authority
8granted in this subsection may reimburse themselves for their
9serviceman's tax liability by separately stating the tax as an
10additional charge, which may be stated in combination, in a
11single amount, with State tax that servicemen are authorized to
12collect under the Service Use Tax Act, pursuant to any
13bracketed schedules set forth by the Department.
14    (c) The tax under this Section may not be imposed until, by
15ordinance or resolution of the county board, the question of
16imposing the tax has been submitted to the electors of the
17county at a regular election and approved by a majority of the
18electors voting on the question. Upon receipt of a resolution
19by the county board or a resolution or resolutions by school
20district boards that represent more than 50% at least 51% of
21the student enrollment within the county, the regional
22superintendent of schools of the county or the county board, as
23the case may be, must certify the question to the proper
24election authority for submission to the electors of the county
25at the next regular election at which the question lawfully may
26be submitted to the electors, all in accordance with the

 

 

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1Election Code.
2    If the county board certifies the question to the election
3authority, the The election authority must submit the question
4in substantially the following form:
5        Shall (name of county) be authorized to impose a
6    retailers' occupation tax and a service occupation tax
7    (commonly referred to as a "sales tax") at a rate of
8    (insert rate) to be used exclusively for school facility
9    purposes?
10    If the regional superintendent of schools for the county
11certifies the question to the election authority, the election
12authority must submit the question in substantially the
13following form:
14        Shall a retailers' occupation tax and a service
15    occupation tax (commonly referred to as a "sales tax") be
16    imposed in (name or county) at a rate of (interest rate) to
17    be used exclusively for school facility purposes?
18The election authority must record the votes as "Yes" or "No".
19    If a majority of the electors voting on the question vote
20in the affirmative, then the tax shall be imposed at the rate
21set forth in the question the county may, thereafter, impose
22the tax.
23    For the purposes of this subsection (c), "enrollment" means
24the head count of the students residing in the county on the
25last school day of September of each year, which must be
26reported on the Illinois State Board of Education Public School

 

 

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

 

 

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1county; and (iv) less any amount that the Department determines
2is necessary to offset any amounts that were payable to a
3different taxing body but were erroneously paid to the county.
4When certifying the amount of a monthly disbursement to a
5regional superintendent of schools under this Section, the
6Department shall increase or decrease the amounts by an amount
7necessary to offset any miscalculation of previous
8disbursements within the previous 6 months from the time a
9miscalculation is discovered.
10    Within 10 days after receipt by the Comptroller from the
11Department of the disbursement certification to the regional
12superintendents of the schools provided for in this Section,
13the Comptroller shall cause the orders to be drawn for the
14respective amounts in accordance with directions contained in
15the certification.
16    If the Department determines that a refund should be made
17under this Section to a claimant instead of issuing a credit
18memorandum, then the Department shall notify the Comptroller,
19who shall cause the order to be drawn for the amount specified
20and to the person named in the notification from the
21Department. The refund shall be paid by the Treasurer out of
22the School Facility Occupation Tax Fund.
23    (e) For the purposes of determining the local governmental
24unit whose tax is applicable, a retail sale by a producer of
25coal or another mineral mined in Illinois is a sale at retail
26at the place where the coal or other mineral mined in Illinois

 

 

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1is extracted from the earth. This subsection does not apply to
2coal or another mineral when it is delivered or shipped by the
3seller to the purchaser at a point outside Illinois so that the
4sale is exempt under the United States Constitution as a sale
5in interstate or foreign commerce.
6    (f) Nothing in this Section may be construed to authorize a
7county board to impose a tax to be imposed upon the privilege
8of engaging in any business that under the Constitution of the
9United States may not be made the subject of taxation by this
10State.
11    (g) If a county board imposes a tax under this Section
12before the effective date of this amendatory Act of the 97th
13General Assembly at a rate below the rate set forth in the
14question approved by a majority of electors of that county
15voting on the question as provided in subsection (c), then the
16county board may, by ordinance, increase the rate of the tax up
17to the rate set forth in the question approved by a majority of
18electors of that county voting on the question as provided in
19subsection (c). If a county board imposes a tax under this
20Section before the effective date of this amendatory Act of the
2197th General Assembly, then the board may, by ordinance,
22discontinue or reduce the rate of the tax. If a tax is
23otherwise imposed under this Section on or after the effective
24date of this amendatory Act of the 97th General Assembly, then
25the county board may reduce or discontinue the tax, but only in
26accordance with subsection (h-5) of this Section. If, however,

 

 

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1a school board issues bonds that are secured backed by the
2proceeds of the tax under this Section, then the county board
3may not reduce the tax rate or discontinue the tax if that rate
4reduction or discontinuance would adversely affect inhibit the
5school board's ability to pay the principal and interest on
6those bonds as they become due. If the county board reduces the
7tax rate or discontinues the tax, then a referendum must be
8held in accordance with subsection (c) of this Section in order
9to increase the rate of the tax or to reimpose the discontinued
10tax. The State of Illinois pledges to and agrees with the
11holders of bonds secured by proceeds of the tax imposed under
12this Section that the State will not limit or alter the rights
13and powers set forth in this Section so as to impair the terms
14of any contract made by school districts with those holders or
15in any way impair the rights and remedies of those holders
16until the bonds, together with interest thereon, with interest
17on any unpaid installments of interest, and all costs and
18expenses in connection with any action or proceedings by or on
19behalf of such holders, are fully met and discharged.
20    The results of any election that imposes, reduces, or
21discontinues authorizes a proposition to impose a tax under
22this Section must be certified by the election authority, and
23or to change the rate of the tax along with an ordinance
24imposing the tax, or any ordinance that increases or lowers the
25rate or discontinues the tax, must be certified by the county
26clerk and, in each case, filed with the Illinois Department of

 

 

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1Revenue either (i) on or before the first day of April,
2whereupon the Department shall proceed to administer and
3enforce the tax or change in the rate as of the first day of
4July next following the filing; or (ii) on or before the first
5day of October, whereupon the Department shall proceed to
6administer and enforce the tax or change in the rate as of the
7first day of January next following the filing.
8    (h) For purposes of this Section, "school facility
9purposes" means (i) the acquisition, development,
10construction, reconstruction, rehabilitation, improvement,
11financing, architectural planning, and installation of capital
12facilities consisting of buildings, structures, and durable
13equipment and for the acquisition and improvement of real
14property and interest in real property required, or expected to
15be required, in connection with the capital facilities and (ii)
16the payment of bonds or other obligations heretofore or
17hereafter issued, including bonds or other obligations
18heretofore or hereafter issued to refund or to continue to
19refund bonds or other obligations issued, for school facility
20purposes, provided that the taxes levied to pay those bonds are
21abated by the amount of the taxes imposed under this Section
22that are used to pay those bonds. "School-facility purposes"
23also includes fire prevention, safety, energy conservation,
24disabled accessibility, school security, and specified repair
25purposes set forth under Section 17-2.11 of the School Code.
26    (h-5) A county board in a county where a tax has been

 

 

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1imposed under this Section on or after the effective date of
2this amendatory Act of the 97th General Assembly may, by
3ordinance or resolution, submit to the voters of the county the
4question of reducing or discontinuing the tax. In the ordinance
5or resolution, the county board shall certify the question to
6the proper election authority in accordance with the Election
7Code. The election authority must submit the question in
8substantially the following form:
9        "Shall the school facility retailers' occupation tax
10    and service occupation tax (commonly referred to as the
11    "school facility sales tax") currently imposed in (name of
12    county) at a rate of (insert rate) be (reduced to (insert
13    rate))(discontinued)?"
14If a majority of the electors voting on the question vote in
15the affirmative, then, subject to the provisions of subsection
16(g) of this Section, the tax shall be reduced or discontinued
17as set forth in the question.
18    (i) This Section does not apply to Cook County.
19    (j) This Section may be cited as the County School Facility
20Occupation Tax Law.
21(Source: P.A. 95-675, eff. 10-11-07.)
 
22    Section 15. The School Code is amended by changing Section
2310-22.36 as follows:
 
24    (105 ILCS 5/10-22.36)  (from Ch. 122, par. 10-22.36)

 

 

HB2846- 21 -LRB097 09014 PJG 49148 b

1    Sec. 10-22.36. Buildings for school purposes. To build or
2purchase a building for school classroom or instructional
3purposes upon the approval of a majority of the voters upon the
4proposition at a referendum held for such purpose or in
5accordance with Section 17-2.11, 19-3.5, or 19-3.10. The board
6may initiate such referendum by resolution. The board shall
7certify the resolution and proposition to the proper election
8authority for submission in accordance with the general
9election law.
10    The questions of building one or more new buildings for
11school purposes or office facilities, and issuing bonds for the
12purpose of borrowing money to purchase one or more buildings or
13sites for such buildings or office sites, to build one or more
14new buildings for school purposes or office facilities or to
15make additions and improvements to existing school buildings,
16may be combined into one or more propositions on the ballot.
17    Before erecting, or purchasing or remodeling such a
18building the board shall submit the plans and specifications
19respecting heating, ventilating, lighting, seating, water
20supply, toilets and safety against fire to the regional
21superintendent of schools having supervision and control over
22the district, for approval in accordance with Section 2-3.12.
23    Notwithstanding any of the foregoing, no referendum shall
24be required if the purchase, construction, or building of any
25such building is completed (1) occurs while the building is
26being leased by the school district or (2) is paid with with

 

 

HB2846- 22 -LRB097 09014 PJG 49148 b

1the expenditure of (A) funds derived from the sale or
2disposition of other buildings, land, or structures of the
3school district or (B) funds received (i) as a grant under the
4School Construction Law, or (ii) as gifts or donations,
5provided that no funds to purchase, construct, or build
6complete such building, other than lease payments, are derived
7from the district's bonded indebtedness or the tax levy of the
8district, or (iii) from the County School Facility Occupation
9Tax Law under Section 5-1006.7 of the Counties Code.
10    Notwithstanding any of the foregoing, no referendum shall
11be required if the purchase, construction, or building of any
12such building is paid with funds received from the County
13School Facility Occupation Tax Law under Section 5-1006.7 of
14the Counties Code or from the proceeds of bonds or other debt
15obligations secured by revenues obtained from that Law.
16(Source: P.A. 95-675, eff. 10-11-07; 96-517, eff. 8-14-09.)
 
17    Section 97. Severability. The provisions of this Act are
18severable under Section 1.31 of the Statute on Statutes.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.