HB2755sam001 98TH GENERAL ASSEMBLY

Sen. Chapin Rose

Filed: 5/17/2013

09800HB2755sam001 LRB098 08712 OMW 46003 a

AMENDMENT TO HOUSE BILL 2755

AMENDMENT NO. ______. Amend House Bill 2755 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Municipal Code is amended by adding Section 8-11-22 as follows:

(65 ILCS 5/8-11-22 new)

Sec. 8-11-22. School facility occupation taxes; City of Shelbyville.

(a) The corporate authorities of the City of Shelbyville may impose a tax upon all persons engaged in the business of selling tangible personal property, other than personal property titled or registered with an agency of this State's government, at retail in the City of Shelbyville on the gross receipts from the sales made in the course of business to provide revenue to be used exclusively for school facility purposes if a proposition for the tax has been submitted to the electors of the City of Shelbyville and approved by a majority of those voting on the question as provided in subsection (c). The tax under this Section may be imposed in one-quarter percent increments and may not exceed 1%.

A tax may not be imposed under this Section by the City of Shelbyville if the voters of the county have approved a school facility occupation tax pursuant to Section 5-1006.7 of the Counties Code at a referendum submitted to the voters on or before the March 2014 general primary election.

This additional tax may not be imposed on the sale of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The Department of Revenue has full power to administer and enforce this Section, to collect all taxes and penalties due under this Section, to dispose of taxes and penalties so collected in the manner provided in this Section, and to determine all rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this Section. The Department shall deposit all taxes and penalties collected under this Section into a special fund created for that purpose.

In the administration of and compliance with this subsection, the Department and persons who are subject to this Section: (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in Sections 1 through 1o, 2 through 2-70 (in respect to all provisions contained in those Sections other than the State rate of tax), 2a through 2h, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and all provisions of the Uniform Penalty and Interest Act as if those provisions were set forth in this subsection.

The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act permits the retailer to engage in a business that is taxable without registering separately with the Department under an ordinance or resolution under this subsection.

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their seller's tax liability by separately stating that tax as an additional charge, which may be stated in combination, in a single amount, with State tax that sellers are required to collect under the Use Tax Act, pursuant to any bracketed schedules set forth by the Department.

(b) If a tax has been imposed under subsection (a), then a service occupation tax must also be imposed at the same rate upon all persons engaged, in the City of Shelbyville, in the business of making sales of service, who, as an incident to making those sales of service, transfer tangible personal property within the City of Shelbyville as an incident to a sale of service.

This tax may not be imposed on sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics.

The tax imposed under this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department and deposited into a special fund created for that purpose. The Department has full power to administer and enforce this subsection, to collect all taxes and penalties due under this subsection, to dispose of taxes and penalties so collected in the manner provided in this subsection, and to determine all rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this Section.

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

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability by separately stating the tax as an additional charge, which may be stated in combination, in a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, pursuant to any bracketed schedules set forth by the Department.

(c) The tax under this Section may not be imposed until the question of imposing the tax has been submitted to the electors of the City of Shelbyville at a regular election and approved by a majority of the electors voting on the question.

The corporate authorities of the City of Shelbyville may by ordinance or resolution call for the submission to the electors of the City of Shelbyville the question of whether the City of Shelbyville shall impose a tax under this Section. Such question shall be certified by the county clerk.

The county clerk must submit the question in substantially the following form:

Shall a retailers' occupation tax and a service occupation tax (commonly referred to as a "sales tax") be imposed in the City of Shelbyville at a rate of 1% to be used exclusively for school facility purposes?

Votes must be recorded as votes "Yes" or "No".

If a majority of the electors voting on the question vote in the affirmative, then the tax shall be imposed at the rate set forth in the question.

(d) The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section to be deposited into the School Facility Occupation Tax Fund, which shall be an unappropriated trust fund held outside the State treasury.

On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the amount of the tax collected under this Section. The Comptroller shall pay the amount certified to the City of Shelbyville (i) less 2% of that amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to cover the costs of the Department in administering and enforcing the provisions of this Section, on behalf of the City of Shelbyville, and (ii) less an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of the City of Shelbyville. When certifying the amount of a monthly disbursement to the City of Shelbyville under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation of previous disbursements within the previous 6 months from the time a miscalculation is discovered.

Within 10 days after receipt by the Comptroller from the Department of the disbursement certification to the regional superintendents of the schools provided for in this Section, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with directions contained in the certification.

If the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, then the Department shall notify the Comptroller, who shall cause the order to be drawn for the amount specified and to the person named in the notification from the Department. The refund shall be paid by the Treasurer out of the School Facility Occupation Tax Fund.

(e) For the purposes of determining the local governmental unit whose tax is applicable, a retail sale by a producer of coal or another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This subsection does not apply to coal or another mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or foreign commerce.

(f) Nothing in this Section may be construed to authorize a tax to be imposed upon the privilege of engaging in any business that under the Constitution of the United States may not be made the subject of taxation by this State.

(g) If the corporate authorities of the City of Shelbyville impose a tax under this Section pursuant to a referendum, then the corporate authorities may reduce or discontinue the tax, but only in accordance with subsections (h-5) and (i) of this Section. If, however, the City of Shelbyville or any taxing district within the City of Shelbyville issues bonds that are secured by the proceeds of the tax under this Section, then the corporate authorities may not reduce the tax rate or discontinue the tax if that rate reduction or discontinuance would adversely affect the City of Shelbyville's ability to pay the principal and interest on those bonds as they become due or necessitate the extension of additional property taxes to pay the principal and interest on those bonds. If the corporate authorities reduce the tax rate or discontinues the tax, then a referendum must be held in accordance with subsection (c) of this Section in order to increase the rate of the tax or to reimpose the discontinued tax.

The results of any election that imposes, reduces, or discontinues a tax under this Section must be certified by the county clerk, and any ordinance that increases or lowers the rate or discontinues the tax must be certified by the county clerk and, in each case, filed with the Illinois Department of Revenue either (i) on or before the first day of April, whereupon the Department shall proceed to administer and enforce the tax or change in the rate as of the first day of July next following the filing; or (ii) on or before the first day of October, whereupon the Department shall proceed to administer and enforce the tax or change in the rate as of the first day of January next following the filing.

(h) For purposes of this Section:

"Department" means the Department of Revenue.

"School facility purposes" means (i) the acquisition, development, construction, reconstruction, rehabilitation, improvement, financing, architectural planning, and installation of capital facilities consisting of buildings, structures, and durable equipment and for the acquisition and improvement of real property and interest in real property required, or expected to be required, in connection with the capital facilities and (ii) the payment of bonds or other obligations heretofore or hereafter issued, including bonds or other obligations heretofore or hereafter issued to refund or to continue to refund bonds or other obligations issued, for school facility purposes, provided that the taxes levied to pay those bonds are abated by the amount of the taxes imposed under this Section that are used to pay those bonds. "School-facility purposes" also includes fire prevention, safety, energy conservation, disabled accessibility, school security, and specified repair purposes set forth under Section 17-2.11 of the School Code.

(h-5) Where a tax has been imposed by the corporate authorities of the City of Shelbyville under this Section pursuant to a referendum, they may, by ordinance or resolution, submit to the voters of the City of Shelbyville the question of reducing or discontinuing the tax. In the ordinance or resolution, the corporate authorities shall certify the question to the county clerk. The county clerk must submit the question in substantially the following form:

Shall the school facility retailers' occupation tax and service occupation tax (commonly referred to as the "school facility sales tax") currently imposed in the City of Shelbyville at a rate of (insert rate) be (reduced to (insert rate))(discontinued)?

Votes must be recorded as votes "Yes" or "No".

If a majority of the electors voting on the question vote in the affirmative, then, subject to the provisions of subsection (g) of this Section, the tax shall be reduced or discontinued as set forth in the question.

(i) In the event that the City of Shelbyville imposes a tax under this Section and the county imposes a school facility occupation tax under Section 5-1006.7 of the Counties Code, then the City of Shelbyville may not continue to impose the tax under this Section, nor may the City of Shelbyville impose a new tax under this Section, beginning on the effective date of the county's ordinance or resolution imposing the tax, except as provided in subsection (i-5).

(i-5) If the City of Shelbyville or any taxing district located within the City of Shelbyville issues bonds that are secured by the proceeds of the tax under this Section, then the tax shall not discontinue pursuant to subsection (i) if that discontinuance would adversely affect the City of Shelbyville's ability to pay the principal and interest on those bonds as they become due or necessitate the extension of additional property taxes to pay the principal and interest on those bonds; however, the tax shall be discontinued at such time as the bonds are paid in full. Furthermore, if the county imposes a school facility occupation tax under Section 5-1006.7 of the Counties Code, then the City of Shelbyville may not issue any new or additional bonds secured by the proceeds of a tax imposed under this Section, except for bonds issued to refund bonds issued before the effective date of the tax imposed by the county.

(j) This Section may be cited as the City of Shelbyville School Facility Occupation Tax Law.

Section 99. Effective date. This Act takes effect upon becoming law.".