State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

90_SB1565eng

      55 ILCS 5/5-1006.5
          Amends the  Special  County  Occupation  Tax  For  Public
      Safety  Law  in the Counties Code.  Provides that the results
      of the election to impose the tax shall be certified  by  the
      county  clerk and filed with the Department of Revenue within
      30 days of the date of election (now on or before  the  first
      day  of  June).  Provides that the Department will administer
      the tax as of the  first  day  of  July  (now  January)  next
      following the filing.  Effective immediately.
                                                     LRB9011620KDks
SB1565 Engrossed                               LRB9011620KDks
 1        AN ACT concerning taxes.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Counties  Code  is  amended  by  changing
 5    Sections 5-1006, 5-1006.5, and 5-1007 as follows:
 6        (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
 7        Sec.  5-1006.  Home Rule County Retailers' Occupation Tax
 8    Law. Any county that is a home rule unit  may  impose  a  tax
 9    upon  all persons engaged in the business of selling tangible
10    personal property, other than an item  of  tangible  personal
11    property  titled or registered with an agency of this State's
12    government, at retail in the county  on  the  gross  receipts
13    from  such  sales  made  in the course of their business.  If
14    imposed, this tax shall only be imposed in  1/4%  increments.
15    On  and  after September 1, 1991, this additional tax may not
16    be imposed on the sales of food for human  consumption  which
17    is  to  be  consumed off the premises where it is sold (other
18    than alcoholic beverages, soft drinks and food which has been
19    prepared for  immediate  consumption)  and  prescription  and
20    nonprescription  medicines,  drugs,  medical  appliances  and
21    insulin,  urine  testing materials, syringes and needles used
22    by diabetics. The tax imposed by a home rule county  pursuant
23    to  this Section and all civil penalties that may be assessed
24    as an incident thereof shall be collected and enforced by the
25    State Department of Revenue.  The certificate of registration
26    that is issued by the Department  to  a  retailer  under  the
27    Retailers'  Occupation  Tax  Act shall permit the retailer to
28    engage in a business that is taxable under any  ordinance  or
29    resolution   enacted   pursuant   to   this  Section  without
30    registering  separately  with  the  Department   under   such
31    ordinance   or   resolution   or  under  this  Section.   The
SB1565 Engrossed            -2-                LRB9011620KDks
 1    Department shall have full power to  administer  and  enforce
 2    this   Section;  to  collect  all  taxes  and  penalties  due
 3    hereunder; to dispose of taxes and penalties so collected  in
 4    the  manner hereinafter provided; and to determine all rights
 5    to credit memoranda  arising  on  account  of  the  erroneous
 6    payment  of  tax or penalty hereunder.  In the administration
 7    of, and compliance with, this  Section,  the  Department  and
 8    persons  who  are subject to this Section shall have the same
 9    rights, remedies, privileges, immunities, powers and  duties,
10    and   be   subject  to  the  same  conditions,  restrictions,
11    limitations, penalties and definitions of terms,  and  employ
12    the same modes of procedure, as are prescribed in Sections 1,
13    1a,  1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
14    respect to all provisions therein other than the  State  rate
15    of  tax),  4,  5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
16    5l, 6, 6a, 6b, 6c, 7,  8,  9,  10,  11,  12  and  13  of  the
17    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
18    Penalty and Interest Act, as fully  as  if  those  provisions
19    were set forth herein.
20        No  tax  may be imposed by a home rule county pursuant to
21    this Section unless the county also imposes a tax at the same
22    rate pursuant to Section 5-1007.
23        Persons subject  to  any  tax  imposed  pursuant  to  the
24    authority  granted  in  this Section may reimburse themselves
25    for their seller's  tax  liability  hereunder  by  separately
26    stating such tax as an additional charge, which charge may be
27    stated  in  combination,  in  a single amount, with State tax
28    which sellers are required to collect under the Use Tax  Act,
29    pursuant  to  such  bracket  schedules  as the Department may
30    prescribe.
31        Whenever the Department determines that a  refund  should
32    be made under this Section to a claimant instead of issuing a
33    credit  memorandum,  the  Department  shall  notify the State
34    Comptroller, who shall cause the order to be  drawn  for  the
SB1565 Engrossed            -3-                LRB9011620KDks
 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
 4    tax fund.
 5        The Department shall forthwith  pay  over  to  the  State
 6    Treasurer,  ex  officio,  as trustee, all taxes and penalties
 7    collected hereunder.  On or  before  the  25th  day  of  each
 8    calendar  month,  the Department shall prepare and certify to
 9    the Comptroller the disbursement of stated sums of  money  to
10    named counties, the counties to be those from which retailers
11    have  paid  taxes  or  penalties  hereunder to the Department
12    during the second preceding calendar month.  The amount to be
13    paid to each county shall be the amount (not including credit
14    memoranda) collected hereunder during  the  second  preceding
15    calendar   month   by  the  Department  plus  an  amount  the
16    Department determines is necessary to offset any amounts that
17    were erroneously paid to a different  taxing  body,  and  not
18    including  an  amount  equal  to  the  amount of refunds made
19    during the second preceding calendar month by the  Department
20    on  behalf of such county, and not including any amount which
21    the Department determines is necessary to offset any  amounts
22    which  were  payable  to  a  different  taxing  body but were
23    erroneously paid to the county. Within 10 days after receipt,
24    by the Comptroller, of the disbursement certification to  the
25    counties  provided  for  in  this  Section to be given to the
26    Comptroller by the Department, the  Comptroller  shall  cause
27    the  orders  to  be  drawn  for  the  respective  amounts  in
28    accordance    with    the   directions   contained   in   the
29    certification.
30        In addition to the disbursement required by the preceding
31    paragraph, an allocation shall be made in March of each  year
32    to   each   county   that  received  more  than  $500,000  in
33    disbursements under the preceding paragraph in the  preceding
34    calendar year.  The allocation shall be in an amount equal to
SB1565 Engrossed            -4-                LRB9011620KDks
 1    the  average  monthly  distribution  made to each such county
 2    under the preceding paragraph during the  preceding  calendar
 3    year  (excluding  the  2  months  of  highest receipts).  The
 4    distribution made in March of each  year  subsequent  to  the
 5    year  in  which  an  allocation  was  made  pursuant  to this
 6    paragraph and the preceding paragraph shall be reduced by the
 7    amount allocated and disbursed under this  paragraph  in  the
 8    preceding  calendar  year.   The Department shall prepare and
 9    certify to the Comptroller for disbursement  the  allocations
10    made in accordance with this paragraph.
11        For  the  purpose  of  determining the local governmental
12    unit whose tax is applicable, a retail sale by a producer  of
13    coal  or  other mineral mined in Illinois is a sale at retail
14    at the place  where  the  coal  or  other  mineral  mined  in
15    Illinois  is  extracted  from the earth.  This paragraph does
16    not apply to coal or other mineral when it  is  delivered  or
17    shipped  by  the  seller  to the purchaser at a point outside
18    Illinois so that the sale is exempt under the  United  States
19    Constitution as a sale in interstate or foreign commerce.
20        Nothing in this Section shall be construed to authorize a
21    county  to impose a tax upon the privilege of engaging in any
22    business which under the Constitution of  the  United  States
23    may not be made the subject of taxation by this State.
24        An  ordinance  or  resolution imposing or discontinuing a
25    tax hereunder or effecting a change in the rate thereof shall
26    be adopted and  a  certified  copy  thereof  filed  with  the
27    Department  on or before the first day of June, whereupon the
28    Department shall  proceed  to  administer  and  enforce  this
29    Section  as of the first day of September next following such
30    adoption and filing. Beginning January 1, 1992, an  ordinance
31    or  resolution imposing or discontinuing the tax hereunder or
32    effecting a change in the rate thereof shall be adopted and a
33    certified copy thereof filed with the Department on or before
34    the first day of July, whereupon the Department shall proceed
SB1565 Engrossed            -5-                LRB9011620KDks
 1    to administer and enforce this Section as of the first day of
 2    October next following such adoption  and  filing.  Beginning
 3    January  1,  1993,  an  ordinance  or  resolution imposing or
 4    discontinuing the tax hereunder or effecting a change in  the
 5    rate  thereof  shall  be adopted and a certified copy thereof
 6    filed with the Department on  or  before  the  first  day  of
 7    October, whereupon the Department shall proceed to administer
 8    and  enforce this Section as of the first day of January next
 9    following such adoption and filing. Beginning April 1,  1998,
10    an  ordinance or resolution imposing or discontinuing the tax
11    hereunder or effecting a change in  the  rate  thereof  shall
12    either (i) be adopted and a certified copy thereof filed with
13    the Department on or before the first day of April, whereupon
14    the  Department  shall proceed to administer and enforce this
15    Section as of the  first  day  of  July  next  following  the
16    adoption  and filing; or (ii) be adopted and a certified copy
17    thereof filed with the Department on or before the first  day
18    of   October,  whereupon  the  Department  shall  proceed  to
19    administer and enforce this Section as of the  first  day  of
20    January next following the adoption and filing.
21        When certifying the amount of a monthly disbursement to a
22    county  under  this Section, the Department shall increase or
23    decrease such amount by an amount  necessary  to  offset  any
24    misallocation  of  previous disbursements.  The offset amount
25    shall be the amount erroneously disbursed within the previous
26    6 months from the time a misallocation is discovered.
27        This Section shall be known and may be cited as the "Home
28    Rule County Retailers' Occupation Tax Law".
29    (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
30        (55 ILCS 5/5-1006.5)
31        Sec. 5-1006.5.  Special County Retailers' Occupation  Tax
32    For Public Safety.
33        (a)  The county board of any county may impose a tax upon
SB1565 Engrossed            -6-                LRB9011620KDks
 1    all  persons  engaged  in  the  business  of selling tangible
 2    personal property, other than  personal  property  titled  or
 3    registered  with  an  agency  of  this State's government, at
 4    retail in the county on the gross  receipts  from  the  sales
 5    made  in the course of business to provide revenue to be used
 6    exclusively for public safety purposes in that county,  if  a
 7    proposition for the tax has been submitted to the electors of
 8    that county and approved by a majority of those voting on the
 9    question.   If  imposed,  this  tax  shall be imposed only in
10    one-quarter percent increments.  By  resolution,  the  county
11    board  may  order  the  proposition  to  be  submitted at any
12    election.  The county clerk shall certify the question to the
13    proper election authority, who shall submit  the  proposition
14    at an election in accordance with the general election law.
15        The  proposition  shall be in substantially the following
16    form:
17             "Shall (name of county) be authorized  to  impose  a
18        public  safety  tax  at the rate of .... upon all persons
19        engaged in the  business  of  selling  tangible  personal
20        property  at  retail in the county on gross receipts from
21        the sales made in the course of their business to be used
22        for crime prevention, detention, and other public  safety
23        purposes?"
24    Votes  shall  be recorded as Yes or No.  If a majority of the
25    electors voting on the proposition vote in favor of  it,  the
26    county may impose the tax.
27        This  additional  tax  may not be imposed on the sales of
28    food for human consumption that is to  be  consumed  off  the
29    premises  where  it  is sold (other than alcoholic beverages,
30    soft drinks, and food which has been prepared  for  immediate
31    consumption) and prescription and non-prescription medicines,
32    drugs,   medical   appliances   and  insulin,  urine  testing
33    materials, syringes, and needles used by diabetics.  The  tax
34    imposed  by  a  county  under  this  Section  and  all  civil
SB1565 Engrossed            -7-                LRB9011620KDks
 1    penalties  that  may  be  assessed  as an incident of the tax
 2    shall be collected and enforced by the Illinois Department of
 3    Revenue.  The certificate of registration that is  issued  by
 4    the  Department to a retailer under the Retailers' Occupation
 5    Tax Act shall permit the retailer to  engage  in  a  business
 6    that  is  taxable  without  registering  separately  with the
 7    Department  under  an  ordinance  or  resolution  under  this
 8    Section.  The Department has full  power  to  administer  and
 9    enforce  this Section, to collect all taxes and penalties due
10    under this Section, to dispose  of  taxes  and  penalties  so
11    collected  in  the  manner  provided  in this Section, and to
12    determine all rights to credit memoranda arising  on  account
13    of  the  erroneous  payment  of  a  tax or penalty under this
14    Section.  In the administration of and compliance  with  this
15    Section,  the  Department and persons who are subject to this
16    Section shall (i) have the same rights, remedies, privileges,
17    immunities, powers, and duties, (ii) be subject to  the  same
18    conditions,   restrictions,   limitations,   penalties,   and
19    definitions  of  terms,  and  (iii)  employ the same modes of
20    procedure as are prescribed in Sections 1, 1a, 1a-1, 1d,  1e,
21    1f,  1i,  1j,  1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
22    all provisions contained in those  Sections  other  than  the
23    State  rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
24    provisions  relating  to  transaction  returns  and   quarter
25    monthly  payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
26    5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,  and  13
27    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
28    Uniform Penalty and Interest Act as if those provisions  were
29    set forth in this Section.
30        Persons  subject  to  any tax imposed under the authority
31    granted in this Section may reimburse  themselves  for  their
32    sellers'  tax  liability  by separately stating the tax as an
33    additional charge, which charge may be stated in combination,
34    in a single amount, with State tax which sellers are required
SB1565 Engrossed            -8-                LRB9011620KDks
 1    to collect under the Use Tax Act, pursuant to such  bracketed
 2    schedules as the Department may prescribe.
 3        Whenever  the  Department determines that a refund should
 4    be made under this Section to a claimant instead of issuing a
 5    credit memorandum, the  Department  shall  notify  the  State
 6    Comptroller,  who  shall  cause the order to be drawn for the
 7    amount specified and to the person named in the  notification
 8    from  the  Department.  The refund shall be paid by the State
 9    Treasurer  out  of  the  County  Public   Safety   Retailers'
10    Occupation Tax Fund.
11        (b)  If  a  tax  has been imposed under subsection (a), a
12    service occupation tax shall also be imposed at the same rate
13    upon all persons engaged, in the county, in the  business  of
14    making  sales of service, who, as an incident to making those
15    sales of service, transfer tangible personal property  within
16    the  county as an incident to a sale of service. This tax may
17    not be imposed on sales of food for human consumption that is
18    to be consumed off the premises where it is sold (other  than
19    alcoholic  beverages,  soft  drinks,  and  food  prepared for
20    immediate consumption) and prescription and  non-prescription
21    medicines,  drugs,  medical  appliances  and  insulin,  urine
22    testing  materials,  syringes, and needles used by diabetics.
23    The tax imposed under this subsection and all civil penalties
24    that  may  be  assessed  as  an  incident  thereof  shall  be
25    collected and enforced by  the  Department  of  Revenue.  The
26    Department  has  full  power  to  administer and enforce this
27    subsection; to collect all taxes and penalties due hereunder;
28    to dispose of taxes and penalties so collected in the  manner
29    hereinafter  provided;  and to determine all rights to credit
30    memoranda arising on account of the erroneous payment of  tax
31    or   penalty  hereunder.    In  the  administration  of,  and
32    compliance with this subsection, the Department  and  persons
33    who  are  subject  to  this paragraph shall (i) have the same
34    rights, remedies, privileges, immunities, powers, and duties,
SB1565 Engrossed            -9-                LRB9011620KDks
 1    (ii)  be  subject  to  the  same  conditions,   restrictions,
 2    limitations,    penalties,    exclusions,   exemptions,   and
 3    definitions of terms, and (iii)  employ  the  same  modes  of
 4    procedure  as are prescribed in Sections 1a-1, 2 (except that
 5    the  reference  to  State  in  the  definition  of   supplier
 6    maintaining  a place of business in this State shall mean the
 7    county), 2a, 2b, 2c,  3  through  3-50  (in  respect  to  all
 8    provisions  therein  other  than  the  State  rate of tax), 4
 9    (except that the reference to  the  State  shall  be  to  the
10    county),  5,  7, 8 (except that the jurisdiction to which the
11    tax shall be a debt to the extent indicated in that Section 8
12    shall be the county), 9 (except  as  to  the  disposition  of
13    taxes  and  penalties collected, and except that the returned
14    merchandise credit for this tax may not be taken against  any
15    State  tax),  10,  11,  12  (except  the reference therein to
16    Section 2b of the Retailers' Occupation Tax Act), 13  (except
17    that  any  reference to the State shall mean the county), the
18    first paragraph of Section 15, 16, 17, 18, 19 and 20  of  the
19    Service  Occupation  Tax  Act  and Section 3-7 of the Uniform
20    Penalty and Interest Act, as fully  as  if  those  provisions
21    were set forth herein.
22        Persons  subject  to  any tax imposed under the authority
23    granted in this subsection may reimburse themselves for their
24    serviceman's tax liability by separately stating the  tax  as
25    an   additional   charge,  which  charge  may  be  stated  in
26    combination,  in  a  single  amount,  with  State  tax   that
27    servicemen  are  authorized  to collect under the Service Use
28    Tax Act, in accordance with such  bracket  schedules  as  the
29    Department may prescribe.
30        Whenever  the  Department determines that a refund should
31    be made under  this  subsection  to  a  claimant  instead  of
32    issuing  a credit memorandum, the Department shall notify the
33    State Comptroller, who shall cause the warrant  to  be  drawn
34    for  the  amount  specified,  and to the person named, in the
SB1565 Engrossed            -10-               LRB9011620KDks
 1    notification from the Department.  The refund shall  be  paid
 2    by  the  State  Treasurer  out  of  the  County Public Safety
 3    Retailers' Occupation Fund.
 4        Nothing  in  this  subsection  shall  be   construed   to
 5    authorize  the  county  to impose a tax upon the privilege of
 6    engaging in any business which under the Constitution of  the
 7    United  States may not be made the subject of taxation by the
 8    State.
 9        (c)  The Department shall immediately  pay  over  to  the
10    State  Treasurer,  ex  officio,  as  trustee,  all  taxes and
11    penalties collected under this Section to be  deposited  into
12    the  County  Public  Safety  Retailers'  Occupation Tax Fund,
13    which shall be an unappropriated trust fund held  outside  of
14    the  State  treasury.   On  or  before  the  25th day of each
15    calendar month, the Department shall prepare and  certify  to
16    the  Comptroller  the disbursement of stated sums of money to
17    the  counties  from  which  retailers  have  paid  taxes   or
18    penalties  to  the  Department  during  the  second preceding
19    calendar month.  The amount to be paid to each  county  shall
20    be  the  amount  (not  including  credit memoranda) collected
21    under this Section during the second preceding calendar month
22    by the Department plus an amount the Department determines is
23    necessary to offset any amounts that were erroneously paid to
24    a different taxing body, and  not  including  (i)  an  amount
25    equal  to  the  amount  of  refunds  made  during  the second
26    preceding calendar month by the Department on behalf  of  the
27    county  and (ii) any amount that the Department determines is
28    necessary to offset  any  amounts  that  were  payable  to  a
29    different  taxing  body  but  were  erroneously  paid  to the
30    county.  Within 10 days after receipt by the  Comptroller  of
31    the  disbursement  certification to the counties provided for
32    in this Section  to  be  given  to  the  Comptroller  by  the
33    Department,  the  Comptroller  shall  cause  the orders to be
34    drawn  for  the  respective  amounts   in   accordance   with
SB1565 Engrossed            -11-               LRB9011620KDks
 1    directions contained in the certification.
 2        In addition to the disbursement required by the preceding
 3    paragraph,  an allocation shall be made in March of each year
 4    to  each  county  that  received  more   than   $500,000   in
 5    disbursements  under the preceding paragraph in the preceding
 6    calendar year.  The allocation shall be in an amount equal to
 7    the average monthly distribution made  to  each  such  county
 8    under  the  preceding paragraph during the preceding calendar
 9    year (excluding the  2  months  of  highest  receipts).   The
10    distribution  made  in  March  of each year subsequent to the
11    year in  which  an  allocation  was  made  pursuant  to  this
12    paragraph and the preceding paragraph shall be reduced by the
13    amount  allocated  and  disbursed under this paragraph in the
14    preceding calendar year.  The Department  shall  prepare  and
15    certify  to  the Comptroller for disbursement the allocations
16    made in accordance with this paragraph.
17        (d)  For   the   purpose   of   determining   the   local
18    governmental unit whose tax is applicable, a retail sale by a
19    producer of coal or another mineral mined in  Illinois  is  a
20    sale  at  retail at the place where the coal or other mineral
21    mined  in  Illinois  is  extracted  from  the  earth.    This
22    paragraph  does  not apply to coal or another mineral when it
23    is delivered or shipped by the seller to the purchaser  at  a
24    point  outside  Illinois so that the sale is exempt under the
25    United States Constitution as a sale in interstate or foreign
26    commerce.
27        (e)  Nothing  in  this  Section  shall  be  construed  to
28    authorize a county to impose a  tax  upon  the  privilege  of
29    engaging  in  any business that under the Constitution of the
30    United States may not be made the subject of taxation by this
31    State.
32        (e-5)  If a county imposes a tax under this Section,  the
33    county board may, by ordinance, discontinue or lower the rate
34    of  the  tax.   If  the  county  board lowers the tax rate or
SB1565 Engrossed            -12-               LRB9011620KDks
 1    discontinues the tax, a referendum must be held in accordance
 2    with subsection (a) of this Section in order to increase  the
 3    rate of the tax or to reimpose the discontinued tax.
 4        (f)  Beginning April 1, 1998, the results of any election
 5    authorizing  a proposition to impose a tax under this Section
 6    or effecting a change in the rate of tax,  or  any  ordinance
 7    lowering   the  rate  or  discontinuing  the  tax,  shall  be
 8    certified by the county clerk and  filed  with  the  Illinois
 9    Department  of  Revenue either (i) on or before the first day
10    of  April,  whereupon  the  Department   shall   proceed   to
11    administer  and  enforce  the tax as of the first day of July
12    next following the filing; or (ii) on or before the first day
13    of  October,  whereupon  the  Department  shall  proceed   to
14    administer and enforce the tax as of the first day of January
15    next  following  the  filing.  on  or before the first day of
16    June. The Illinois Department of Revenue shall  then  proceed
17    to  administer  and enforce this Section or to lower the rate
18    or discontinue the tax, as the case may be, as of  the  first
19    day of January next following the filing.
20        (g)  When certifying the amount of a monthly disbursement
21    to a county under this Section, the Department shall increase
22    or  decrease the amounts by an amount necessary to offset any
23    miscalculation of previous disbursements.  The offset  amount
24    shall be the amount erroneously disbursed within the previous
25    6 months from the time a miscalculation is discovered.
26        (h)  This  Section  may  be  cited as the "Special County
27    Occupation Tax For Public Safety Law".
28        (i)  For  purposes  of  this  Section,  "public   safety"
29    includes  but  is  not  limited  to  fire  fighting,  police,
30    medical, ambulance, or other emergency services.
31    (Source:  P.A.  89-107,  eff.  1-1-96;  89-718,  eff. 3-7-97;
32    90-190, eff. 7-24-97;  90-267,  eff.  7-30-97;  90-552,  eff.
33    12-12-97; 90-562, eff. 12-16-97; revised 12-30-97.)
SB1565 Engrossed            -13-               LRB9011620KDks
 1        (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
 2        Sec. 5-1007. Home Rule County Service Occupation Tax Law.
 3    The  corporate authorities of a home rule county may impose a
 4    tax upon all persons engaged, in such county, in the business
 5    of making sales of service at the same rate  of  tax  imposed
 6    pursuant  to  Section  5-1006  of  the  selling  price of all
 7    tangible personal property  transferred  by  such  servicemen
 8    either  in  the  form of tangible personal property or in the
 9    form of real estate as an incident to a sale of  service.  If
10    imposed,  such  tax shall only be imposed in 1/4% increments.
11    On and after September 1, 1991, this additional tax  may  not
12    be  imposed  on the sales of food for human consumption which
13    is to be consumed off the premises where it  is  sold  (other
14    than alcoholic beverages, soft drinks and food which has been
15    prepared  for  immediate  consumption)  and  prescription and
16    nonprescription  medicines,  drugs,  medical  appliances  and
17    insulin, urine testing materials, syringes and  needles  used
18    by  diabetics. The tax imposed by a home rule county pursuant
19    to this Section and all civil penalties that may be  assessed
20    as an incident thereof shall be collected and enforced by the
21    State  Department of Revenue. The certificate of registration
22    which is issued by the Department to  a  retailer  under  the
23    Retailers' Occupation Tax Act or under the Service Occupation
24    Tax  Act shall permit such registrant to engage in a business
25    which is taxable under any ordinance  or  resolution  enacted
26    pursuant  to this Section without registering separately with
27    the Department under such ordinance or  resolution  or  under
28    this  Section.   The  Department  shall  have  full  power to
29    administer and enforce this Section; to collect all taxes and
30    penalties due hereunder; to dispose of taxes and penalties so
31    collected  in  the  manner  hereinafter  provided;   and   to
32    determine  all  rights to credit memoranda arising on account
33    of the erroneous payment of tax or penalty hereunder.  In the
34    administration of, and  compliance  with,  this  Section  the
SB1565 Engrossed            -14-               LRB9011620KDks
 1    Department  and persons who are subject to this Section shall
 2    have  the  same  rights,  remedies,  privileges,  immunities,
 3    powers and duties, and be subject  to  the  same  conditions,
 4    restrictions,   limitations,  penalties  and  definitions  of
 5    terms, and  employ  the  same  modes  of  procedure,  as  are
 6    prescribed  in  Sections  1a-1,  2,  2a,  3  through 3-50 (in
 7    respect to all provisions therein other than the  State  rate
 8    of  tax),  4 (except that the reference to the State shall be
 9    to the taxing county), 5, 7, 8 (except that the  jurisdiction
10    to  which  the tax shall be a debt to the extent indicated in
11    that Section 8 shall be the taxing county), 9 (except  as  to
12    the  disposition of taxes and penalties collected, and except
13    that the returned merchandise credit for this county tax  may
14    not  be  taken against any State tax), 10, 11, 12 (except the
15    reference therein to Section 2b of the Retailers'  Occupation
16    Tax  Act),  13  (except that any reference to the State shall
17    mean the taxing county), the first paragraph of  Section  15,
18    16,  17,  18, 19 and 20 of the Service Occupation Tax Act and
19    Section 3-7 of the Uniform Penalty and Interest Act, as fully
20    as if those provisions were set forth herein.
21        No tax may be imposed by a home rule county  pursuant  to
22    this  Section  unless  such  county also imposes a tax at the
23    same rate pursuant to Section 5-1006.
24        Persons subject  to  any  tax  imposed  pursuant  to  the
25    authority  granted  in  this Section may reimburse themselves
26    for their serviceman's tax liability hereunder by  separately
27    stating such tax as an additional charge, which charge may be
28    stated  in  combination,  in  a single amount, with State tax
29    which servicemen are authorized to collect under the  Service
30    Use  Tax  Act,  pursuant  to  such  bracket  schedules as the
31    Department may prescribe.
32        Whenever the Department determines that a  refund  should
33    be  made  under this Section to a claimant instead of issuing
34    credit memorandum, the  Department  shall  notify  the  State
SB1565 Engrossed            -15-               LRB9011620KDks
 1    Comptroller,  who  shall  cause the order to be drawn for the
 2    amount  specified,  and  to  the  person   named,   in   such
 3    notification  from  the Department. Such refund shall be paid
 4    by the State Treasurer out of the home rule county retailers'
 5    occupation tax fund.
 6        The Department shall forthwith  pay  over  to  the  State
 7    Treasurer,  ex-officio,  as  trustee, all taxes and penalties
 8    collected hereunder. On  or  before  the  25th  day  of  each
 9    calendar  month,  the Department shall prepare and certify to
10    the Comptroller the disbursement of stated sums of  money  to
11    named counties, the counties to be those from which suppliers
12    and  servicemen have paid taxes or penalties hereunder to the
13    Department during the second preceding calendar  month.   The
14    amount  to  be  paid  to each county shall be the amount (not
15    including credit memoranda) collected  hereunder  during  the
16    second  preceding  calendar  month by the Department, and not
17    including an amount equal  to  the  amount  of  refunds  made
18    during  the second preceding calendar month by the Department
19    on behalf of such county.  Within 10 days after  receipt,  by
20    the  Comptroller,  of  the  disbursement certification to the
21    counties provided for in this Section  to  be  given  to  the
22    Comptroller  by  the  Department, the Comptroller shall cause
23    the  orders  to  be  drawn  for  the  respective  amounts  in
24    accordance   with   the   directions   contained   in    such
25    certification.
26        In addition to the disbursement required by the preceding
27    paragraph,  an  allocation shall be made in each year to each
28    county which received more  than  $500,000  in  disbursements
29    under the preceding paragraph in the preceding calendar year.
30    The  allocation  shall  be  in an amount equal to the average
31    monthly distribution made  to  each  such  county  under  the
32    preceding   paragraph  during  the  preceding  calendar  year
33    (excluding  the  2  months   of   highest   receipts).    The
34    distribution  made  in  March  of each year subsequent to the
SB1565 Engrossed            -16-               LRB9011620KDks
 1    year in  which  an  allocation  was  made  pursuant  to  this
 2    paragraph and the preceding paragraph shall be reduced by the
 3    amount  allocated  and  disbursed under this paragraph in the
 4    preceding calendar year.  The Department  shall  prepare  and
 5    certify  to  the Comptroller for disbursement the allocations
 6    made in accordance with this paragraph.
 7        Nothing in this Section shall be construed to authorize a
 8    county to impose a tax upon the privilege of engaging in  any
 9    business  which  under  the Constitution of the United States
10    may not be made the subject of taxation by this State.
11        An ordinance or resolution imposing  or  discontinuing  a
12    tax hereunder or effecting a change in the rate thereof shall
13    be  adopted  and  a  certified  copy  thereof  filed with the
14    Department on or before the first day of June, whereupon  the
15    Department  shall  proceed  to  administer  and  enforce this
16    Section as of the first day of September next following  such
17    adoption  and filing. Beginning January 1, 1992, an ordinance
18    or resolution imposing or discontinuing the tax hereunder  or
19    effecting a change in the rate thereof shall be adopted and a
20    certified copy thereof filed with the Department on or before
21    the first day of July, whereupon the Department shall proceed
22    to administer and enforce this Section as of the first day of
23    October  next  following  such adoption and filing. Beginning
24    January 1, 1993,  an  ordinance  or  resolution  imposing  or
25    discontinuing  the tax hereunder or effecting a change in the
26    rate thereof shall be adopted and a  certified  copy  thereof
27    filed  with  the  Department  on  or  before the first day of
28    October, whereupon the Department shall proceed to administer
29    and enforce this Section as of the first day of January  next
30    following such adoption and filing.  Beginning April 1, 1998,
31    an  ordinance or resolution imposing or discontinuing the tax
32    hereunder or effecting a change in  the  rate  thereof  shall
33    either (i) be adopted and a certified copy thereof filed with
34    the Department on or before the first day of April, whereupon
SB1565 Engrossed            -17-               LRB9011620KDks
 1    the  Department  shall proceed to administer and enforce this
 2    Section as of the  first  day  of  July  next  following  the
 3    adoption  and filing; or (ii) be adopted and a certified copy
 4    thereof filed with the Department on or before the first  day
 5    of   October,  whereupon  the  Department  shall  proceed  to
 6    administer and enforce this Section as of the  first  day  of
 7    January next following the adoption and filing.
 8        This Section shall be known and may be cited as the "Home
 9    Rule County Service Occupation Tax Law".
10    (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
11        Section  10.   The  Illinois Municipal Code is amended by
12    changing Sections 8-11-1, 8-11-5, and 8-11-6 as follows:
13        (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
14        Sec. 8-11-1.  Home Rule Municipal  Retailers'  Occupation
15    Tax   Act.    The   corporate  authorities  of  a  home  rule
16    municipality may impose a tax upon all persons engaged in the
17    business of selling tangible personal property, other than an
18    item of tangible personal property titled or registered  with
19    an  agency  of  this  State's  government,  at  retail in the
20    municipality on the gross receipts from these sales  made  in
21    the  course of such business.  If imposed, the tax shall only
22    be imposed in 1/4% increments.  On  and  after  September  1,
23    1991,  this additional tax may not be imposed on the sales of
24    food for human consumption that is to  be  consumed  off  the
25    premises  where  it  is sold (other than alcoholic beverages,
26    soft drinks and food that has  been  prepared  for  immediate
27    consumption)  and prescription and nonprescription medicines,
28    drugs,  medical  appliances  and   insulin,   urine   testing
29    materials,  syringes  and  needles used by diabetics. The tax
30    imposed by a home rule municipality under  this  Section  and
31    all  civil  penalties  that may be assessed as an incident of
32    the  tax  shall  be  collected  and  enforced  by  the  State
SB1565 Engrossed            -18-               LRB9011620KDks
 1    Department of Revenue.  The certificate of registration  that
 2    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 under any ordinance or
 5    resolution  enacted  pursuant   to   this   Section   without
 6    registering   separately   with  the  Department  under  such
 7    ordinance  or  resolution  or  under   this   Section.    The
 8    Department  shall  have  full power to administer and enforce
 9    this  Section;  to  collect  all  taxes  and  penalties   due
10    hereunder;  to dispose of taxes and penalties so collected in
11    the manner hereinafter provided; and to determine all  rights
12    to  credit  memoranda  arising  on  account  of the erroneous
13    payment of tax or penalty hereunder.  In  the  administration
14    of,  and  compliance  with,  this  Section the Department and
15    persons who are subject to this Section shall have  the  same
16    rights,  remedies, privileges, immunities, powers and duties,
17    and  be  subject  to  the  same   conditions,   restrictions,
18    limitations,  penalties  and definitions of terms, and employ
19    the same modes of procedure, as are prescribed in Sections 1,
20    1a, 1d, 1e, 1f, 1i, 1j,  1k,  1m,  1n,  2  through  2-65  (in
21    respect  to  all provisions therein other than the State rate
22    of tax), 2c, 3 (except as to the  disposition  of  taxes  and
23    penalties  collected),  4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
24    5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13  of
25    the  Retailers'  Occupation  Tax  Act  and Section 3-7 of the
26    Uniform Penalty and  Interest  Act,  as  fully  as  if  those
27    provisions were set forth herein.
28        No  tax  may be imposed by a home rule municipality under
29    this Section unless the municipality also imposes  a  tax  at
30    the same rate under Section 8-11-5 of this Act.
31        Persons  subject  to  any tax imposed under the authority
32    granted in this Section may reimburse  themselves  for  their
33    seller's  tax  liability hereunder by separately stating that
34    tax as an additional charge, which charge may  be  stated  in
SB1565 Engrossed            -19-               LRB9011620KDks
 1    combination, in a single amount, with State tax which sellers
 2    are  required  to  collect under the Use Tax Act, pursuant to
 3    such bracket schedules as the Department may prescribe.
 4        Whenever the Department determines that a  refund  should
 5    be made under this Section to a claimant instead of issuing a
 6    credit  memorandum,  the  Department  shall  notify the State
 7    Comptroller, who shall cause the order to be  drawn  for  the
 8    amount  specified and to the person named in the notification
 9    from the Department. The refund shall be paid  by  the  State
10    Treasurer   out   of   the  home  rule  municipal  retailers'
11    occupation tax fund.
12        The Department shall immediately pay over  to  the  State
13    Treasurer,  ex  officio,  as trustee, all taxes and penalties
14    collected hereunder.  On or  before  the  25th  day  of  each
15    calendar  month,  the Department shall prepare and certify to
16    the Comptroller the disbursement of stated sums of  money  to
17    named  municipalities,  the  municipalities  to be those from
18    which retailers have paid taxes or penalties hereunder to the
19    Department during the second preceding  calendar  month.  The
20    amount  to  be  paid to each municipality shall be the amount
21    (not including credit memoranda) collected  hereunder  during
22    the second preceding calendar month by the Department plus an
23    amount  the  Department determines is necessary to offset any
24    amounts that were erroneously  paid  to  a  different  taxing
25    body,  and  not  including  an  amount equal to the amount of
26    refunds made during the second preceding  calendar  month  by
27    the  Department  on  behalf  of  such  municipality,  and not
28    including  any  amount  that  the  Department  determines  is
29    necessary to offset  any  amounts  that  were  payable  to  a
30    different  taxing  body  but  were  erroneously  paid  to the
31    municipality. Within 10 days after receipt by the Comptroller
32    of  the  disbursement  certification  to  the  municipalities
33    provided for in this Section to be given to  the  Comptroller
34    by  the Department, the Comptroller shall cause the orders to
SB1565 Engrossed            -20-               LRB9011620KDks
 1    be drawn for the respective amounts in  accordance  with  the
 2    directions contained in the certification.
 3        In addition to the disbursement required by the preceding
 4    paragraph   and   in  order  to  mitigate  delays  caused  by
 5    distribution procedures, an allocation shall,  if  requested,
 6    be  made  within  10  days  after  January  14,  1991, and in
 7    November  of  1991  and  each  year   thereafter,   to   each
 8    municipality  that  received  more  than  $500,000 during the
 9    preceding fiscal year,  (July  1  through  June  30)  whether
10    collected  by the municipality or disbursed by the Department
11    as required by this Section. Within 10 days after January 14,
12    1991,   participating   municipalities   shall   notify   the
13    Department in writing of their  intent  to  participate.   In
14    addition,   for   the   initial  distribution,  participating
15    municipalities shall certify to the  Department  the  amounts
16    collected  by  the municipality for each month under its home
17    rule occupation and service occupation tax during the  period
18    July 1, 1989 through June 30, 1990.  The allocation within 10
19    days  after  January 14, 1991, shall be in an amount equal to
20    the monthly average of these amounts, excluding the 2  months
21    of  highest  receipts.  The monthly average for the period of
22    July 1, 1990 through June 30,  1991  will  be  determined  as
23    follows:  the amounts collected by the municipality under its
24    home  rule  occupation  and service occupation tax during the
25    period of July 1,  1990  through  September  30,  1990,  plus
26    amounts   collected  by  the  Department  and  paid  to  such
27    municipality through June 30, 1991, excluding the 2 months of
28    highest receipts.  The monthly average  for  each  subsequent
29    period  of July 1 through June 30 shall be an amount equal to
30    the monthly distribution made to each such municipality under
31    the preceding paragraph during this period, excluding  the  2
32    months   of  highest  receipts.   The  distribution  made  in
33    November 1991  and each year thereafter under this  paragraph
34    and  the  preceding  paragraph shall be reduced by the amount
SB1565 Engrossed            -21-               LRB9011620KDks
 1    allocated and disbursed under this paragraph in the preceding
 2    period of July 1 through  June  30.    The  Department  shall
 3    prepare  and  certify to the Comptroller for disbursement the
 4    allocations made in accordance with this paragraph.
 5        For the purpose of  determining  the  local  governmental
 6    unit  whose tax is applicable, a retail sale by a producer of
 7    coal or other mineral mined in Illinois is a sale  at  retail
 8    at  the  place  where  the  coal  or  other  mineral mined in
 9    Illinois is extracted from the earth.   This  paragraph  does
10    not  apply  to  coal or other 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        Nothing in this Section shall be construed to authorize a
15    municipality to impose a tax upon the privilege  of  engaging
16    in  any  business  which under the Constitution of the United
17    States may not be made the subject of taxation by this State.
18        An ordinance or resolution imposing  or  discontinuing  a
19    tax hereunder or effecting a change in the rate thereof shall
20    be  adopted  and  a  certified  copy  thereof  filed with the
21    Department on or before the first day of June, whereupon  the
22    Department  shall  proceed  to  administer  and  enforce this
23    Section as of the first day of September next  following  the
24    adoption  and filing. Beginning January 1, 1992, an ordinance
25    or resolution imposing or discontinuing the tax hereunder  or
26    effecting a change in the rate thereof shall be adopted and a
27    certified copy thereof filed with the Department on or before
28    the first day of July, whereupon the Department shall proceed
29    to administer and enforce this Section as of the first day of
30    October  next  following  such adoption and filing. Beginning
31    January 1, 1993,  an  ordinance  or  resolution  imposing  or
32    discontinuing  the tax hereunder or effecting a change in the
33    rate thereof shall be adopted and a  certified  copy  thereof
34    filed  with  the  Department  on  or  before the first day of
SB1565 Engrossed            -22-               LRB9011620KDks
 1    October, whereupon the Department shall proceed to administer
 2    and enforce this Section as of the first day of January  next
 3    following  the  adoption  and filing. However, a municipality
 4    located in a county with a population in excess of  3,000,000
 5    that  elected  to  become  a  home  rule  unit at the general
 6    primary election in 1994 may adopt an ordinance or resolution
 7    imposing the tax under this Section and file a certified copy
 8    of the ordinance or resolution  with  the  Department  on  or
 9    before  July  1,  1994.  The Department shall then proceed to
10    administer and enforce this Section as of  October  1,  1994.
11    Beginning  April 1, 1998, an ordinance or resolution imposing
12    or discontinuing the tax hereunder or effecting a  change  in
13    the  rate thereof shall either (i) be adopted and a certified
14    copy thereof filed with the Department on or before the first
15    day of April,  whereupon  the  Department  shall  proceed  to
16    administer  and  enforce  this Section as of the first day of
17    July next following the  adoption  and  filing;  or  (ii)  be
18    adopted   and   a  certified  copy  thereof  filed  with  the
19    Department on or before the first day of  October,  whereupon
20    the  Department  shall proceed to administer and enforce this
21    Section as of the first day of  January  next  following  the
22    adoption and filing.
23        When certifying the amount of a monthly disbursement to a
24    municipality   under   this  Section,  the  Department  shall
25    increase or decrease the amount by  an  amount  necessary  to
26    offset  any  misallocation  of  previous  disbursements.  The
27    offset  amount  shall  be  the  amount  erroneously disbursed
28    within the previous 6 months from the time a misallocation is
29    discovered.
30        Any  unobligated  balance  remaining  in  the   Municipal
31    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
32    fund was abolished by Public Act 85-1135, and all receipts of
33    municipal tax as a result  of  audits  of  liability  periods
34    prior  to  January  1,  1990,  shall  be  paid into the Local
SB1565 Engrossed            -23-               LRB9011620KDks
 1    Government Tax Fund for  distribution  as  provided  by  this
 2    Section  prior  to  the  enactment of Public Act 85-1135. All
 3    receipts of municipal tax as a result of  an  assessment  not
 4    arising from an audit, for liability periods prior to January
 5    1, 1990, shall be paid into the Local Government Tax Fund for
 6    distribution before July 1, 1990, as provided by this Section
 7    prior  to  the  enactment  of  Public Act 85-1135; and on and
 8    after July 1, 1990, all such receipts shall be distributed as
 9    provided in Section 6z-18 of the State Finance Act.
10        As used in this Section, "municipal"  and  "municipality"
11    means  a  city,  village  or  incorporated town, including an
12    incorporated town that has superseded a civil township.
13        This Section shall be known and may be cited as the  Home
14    Rule Municipal Retailers' Occupation Tax Act.
15    (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
16        (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
17        Sec.  8-11-5.  Home Rule Municipal Service Occupation Tax
18    Act.  The corporate authorities of a home  rule  municipality
19    may   impose   a  tax  upon  all  persons  engaged,  in  such
20    municipality, in the business of making sales of  service  at
21    the  same  rate of tax imposed pursuant to Section 8-11-1, of
22    the  selling  price  of  all   tangible   personal   property
23    transferred by such servicemen either in the form of tangible
24    personal  property  or  in  the  form  of  real  estate as an
25    incident to a sale of service.  If imposed,  such  tax  shall
26    only be imposed in 1/4% increments. On and after September 1,
27    1991,  this additional tax may not be imposed on the sales of
28    food for human consumption which is to be  consumed  off  the
29    premises  where  it  is sold (other than alcoholic beverages,
30    soft drinks and food which has been  prepared  for  immediate
31    consumption)  and prescription and nonprescription medicines,
32    drugs,  medical  appliances  and   insulin,   urine   testing
33    materials,  syringes  and  needles used by diabetics. The tax
SB1565 Engrossed            -24-               LRB9011620KDks
 1    imposed by a home rule municipality pursuant to this  Section
 2    and  all  civil penalties that may be assessed as an incident
 3    thereof  shall  be  collected  and  enforced  by  the   State
 4    Department  of Revenue. The certificate of registration which
 5    is  issued  by  the  Department  to  a  retailer  under   the
 6    Retailers' Occupation Tax Act or under the Service Occupation
 7    Tax  Act shall permit such registrant to engage in a business
 8    which is taxable under any ordinance  or  resolution  enacted
 9    pursuant  to this Section without registering separately with
10    the Department under such ordinance or  resolution  or  under
11    this  Section.   The  Department  shall  have  full  power to
12    administer and enforce this Section; to collect all taxes and
13    penalties due hereunder; to dispose of taxes and penalties so
14    collected  in  the  manner  hereinafter  provided,   and   to
15    determine  all  rights to credit memoranda arising on account
16    of the erroneous payment of tax or penalty hereunder. In  the
17    administration  of,  and  compliance  with,  this Section the
18    Department and persons who are subject to this Section  shall
19    have  the  same  rights,  remedies,  privileges,  immunities,
20    powers  and  duties,  and  be subject to the same conditions,
21    restrictions,  limitations,  penalties  and  definitions   of
22    terms,  and  employ  the  same  modes  of  procedure,  as are
23    prescribed in Sections  1a-1,  2,  2a,  3  through  3-50  (in
24    respect  to  all provisions therein other than the State rate
25    of tax), 4 (except that the reference to the State  shall  be
26    to  the  taxing  municipality),  5,  7,  8  (except  that the
27    jurisdiction to which the tax shall be a debt to  the  extent
28    indicated   in   that   Section   8   shall   be  the  taxing
29    municipality), 9 (except as to the disposition of  taxes  and
30    penalties collected, and except that the returned merchandise
31    credit  for  this  municipal tax may not be taken against any
32    State tax), 10, 11,  12  (except  the  reference  therein  to
33    Section  2b of the Retailers' Occupation Tax Act), 13 (except
34    that any  reference  to  the  State  shall  mean  the  taxing
SB1565 Engrossed            -25-               LRB9011620KDks
 1    municipality),  the  first  paragraph  of  Section 15, 16, 17
 2    (except that credit memoranda issued  hereunder  may  not  be
 3    used  to discharge any State tax liability), 18, 19 and 20 of
 4    the Service Occupation Tax Act and Section 3-7 of the Uniform
 5    Penalty and Interest Act, as fully  as  if  those  provisions
 6    were set forth herein.
 7        No  tax  may  be  imposed  by  a  home  rule municipality
 8    pursuant  to  this  Section  unless  such  municipality  also
 9    imposes a tax at the same rate pursuant to Section 8-11-1  of
10    this Act.
11        Persons  subject  to  any  tax  imposed  pursuant  to the
12    authority granted in this Section  may  reimburse  themselves
13    for  their serviceman's tax liability hereunder by separately
14    stating such tax as an additional charge, which charge may be
15    stated in combination, in a single  amount,  with  State  tax
16    which  servicemen are authorized to collect under the Service
17    Use Tax Act,  pursuant  to  such  bracket  schedules  as  the
18    Department may prescribe.
19        Whenever  the  Department determines that a refund should
20    be made under this Section to a claimant instead  of  issuing
21    credit  memorandum,  the  Department  shall  notify the State
22    Comptroller, who shall cause the order to be  drawn  for  the
23    amount   specified,   and   to  the  person  named,  in  such
24    notification from the Department.  Such refund shall be  paid
25    by  the  State  Treasurer  out  of  the  home  rule municipal
26    retailers' occupation tax fund.
27        The Department shall forthwith  pay  over  to  the  State
28    Treasurer,  ex-officio,  as  trustee, all taxes and penalties
29    collected hereunder. On  or  before  the  25th  day  of  each
30    calendar  month,  the Department shall prepare and certify to
31    the Comptroller the disbursement of stated sums of  money  to
32    named  municipalities,  the  municipalities  to be those from
33    which suppliers and servicemen have paid taxes  or  penalties
34    hereunder  to  the  Department  during  the  second preceding
SB1565 Engrossed            -26-               LRB9011620KDks
 1    calendar month. The amount to be paid  to  each  municipality
 2    shall   be   the  amount  (not  including  credit  memoranda)
 3    collected hereunder  during  the  second  preceding  calendar
 4    month by the Department, and not including an amount equal to
 5    the  amount  of  refunds  made  during  the  second preceding
 6    calendar  month  by  the  Department  on   behalf   of   such
 7    municipality.   Within   10   days   after  receipt,  by  the
 8    Comptroller,  of  the  disbursement  certification   to   the
 9    municipalities,  provided  for in this Section to be given to
10    the Comptroller by  the  Department,  the  Comptroller  shall
11    cause  the  orders  to be drawn for the respective amounts in
12    accordance   with   the   directions   contained   in    such
13    certification.
14        In addition to the disbursement required by the preceding
15    paragraph   and   in  order  to  mitigate  delays  caused  by
16    distribution procedures, an allocation shall,  if  requested,
17    be  made  within  10  days  after  January  14,  1991, and in
18    November  of  1991  and  each  year   thereafter,   to   each
19    municipality  that  received  more  than  $500,000 during the
20    preceding fiscal year,  (July  1  through  June  30)  whether
21    collected  by the municipality or disbursed by the Department
22    as required by this Section. Within 10 days after January 14,
23    1991,   participating   municipalities   shall   notify   the
24    Department in writing of their  intent  to  participate.   In
25    addition,   for   the   initial  distribution,  participating
26    municipalities shall certify to the  Department  the  amounts
27    collected  by  the municipality for each month under its home
28    rule occupation and service occupation tax during the  period
29    July 1, 1989 through June 30, 1990.  The allocation within 10
30    days  after  January 14, 1991, shall be in an amount equal to
31    the monthly average of these amounts, excluding the 2  months
32    of  highest receipts.  Monthly average for the period of July
33    1, 1990 through June 30, 1991 will be determined as  follows:
34    the amounts collected by the municipality under its home rule
SB1565 Engrossed            -27-               LRB9011620KDks
 1    occupation  and  service  occupation tax during the period of
 2    July  1,  1990  through  September  30,  1990,  plus  amounts
 3    collected by the Department and  paid  to  such  municipality
 4    through  June  30,  1991,  excluding  the 2 months of highest
 5    receipts.  The monthly average for each subsequent period  of
 6    July  1  through  June  30  shall  be  an amount equal to the
 7    monthly distribution made to each such municipality under the
 8    preceding paragraph  during  this  period,  excluding  the  2
 9    months   of  highest  receipts.   The  distribution  made  in
10    November 1991 and each year thereafter under  this  paragraph
11    and  the  preceding  paragraph shall be reduced by the amount
12    allocated and disbursed under this paragraph in the preceding
13    period of July 1 through  June  30.    The  Department  shall
14    prepare  and  certify to the Comptroller for disbursement the
15    allocations made in accordance with this paragraph.
16        Nothing in this Section shall be construed to authorize a
17    municipality to impose a tax upon the privilege  of  engaging
18    in  any  business  which under the constitution of the United
19    States may not be made the subject of taxation by this State.
20        An ordinance or resolution imposing  or  discontinuing  a
21    tax hereunder or effecting a change in the rate thereof shall
22    be  adopted  and  a  certified  copy  thereof  filed with the
23    Department on or before the first day of June, whereupon  the
24    Department  shall  proceed  to  administer  and  enforce this
25    Section as of the first day of September next following  such
26    adoption and filing.  Beginning January 1, 1992, an ordinance
27    or  resolution imposing or discontinuing the tax hereunder or
28    effecting a change in the rate thereof shall be adopted and a
29    certified copy thereof filed with the Department on or before
30    the first day of July, whereupon the Department shall proceed
31    to administer and enforce this Section as of the first day of
32    October next following such adoption  and  filing.  Beginning
33    January  1,  1993,  an  ordinance  or  resolution imposing or
34    discontinuing the tax hereunder or effecting a change in  the
SB1565 Engrossed            -28-               LRB9011620KDks
 1    rate  thereof  shall  be adopted and a certified copy thereof
 2    filed with the Department on  or  before  the  first  day  of
 3    October, whereupon the Department shall proceed to administer
 4    and  enforce this Section as of the first day of January next
 5    following such adoption and filing. However,  a  municipality
 6    located  in a county with a population in excess of 3,000,000
 7    that elected to become  a  home  rule  unit  at  the  general
 8    primary election in 1994 may adopt an ordinance or resolution
 9    imposing the tax under this Section and file a certified copy
10    of  the  ordinance  or  resolution  with the Department on or
11    before July 1, 1994. The Department  shall  then  proceed  to
12    administer  and  enforce  this Section as of October 1, 1994.
13    Beginning April 1, 1998, an ordinance or resolution  imposing
14    or  discontinuing  the tax hereunder or effecting a change in
15    the rate thereof shall either (i) be adopted and a  certified
16    copy thereof filed with the Department on or before the first
17    day  of  April,  whereupon  the  Department  shall proceed to
18    administer and enforce this Section as of the  first  day  of
19    July  next  following  the  adoption  and  filing; or (ii) be
20    adopted  and  a  certified  copy  thereof  filed   with   the
21    Department  on  or before the first day of October, whereupon
22    the Department shall proceed to administer and  enforce  this
23    Section  as  of  the  first day of January next following the
24    adoption and filing.
25        Any  unobligated  balance  remaining  in  the   Municipal
26    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
27    fund was abolished by Public Act 85-1135, and all receipts of
28    municipal tax as a result  of  audits  of  liability  periods
29    prior  to  January  1,  1990,  shall  be  paid into the Local
30    Government Tax Fund, for distribution  as  provided  by  this
31    Section  prior  to  the  enactment of Public Act 85-1135. All
32    receipts of municipal tax as a result of  an  assessment  not
33    arising from an audit, for liability periods prior to January
34    1, 1990, shall be paid into the Local Government Tax Fund for
SB1565 Engrossed            -29-               LRB9011620KDks
 1    distribution before July 1, 1990, as provided by this Section
 2    prior  to  the  enactment  of  Public Act 85-1135, and on and
 3    after July 1, 1990, all such receipts shall be distributed as
 4    provided in Section 6z-18 of the State Finance Act.
 5        As used in this Section, "municipal"  and  "municipality"
 6    means  a  city,  village  or  incorporated town, including an
 7    incorporated town which has superseded a civil township.
 8        This Section shall be known and may be cited as the  Home
 9    Rule Municipal Service Occupation Tax Act.
10    (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
11        (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
12        Sec. 8-11-6.  Home Rule Municipal Use Tax Act.
13        (a)  The   corporate   authorities   of   a   home   rule
14    municipality may impose a tax upon the privilege of using, in
15    such  municipality,  any  item  of tangible personal property
16    which is purchased at retail from a retailer,  and  which  is
17    titled  or  registered  at  a  location  within the corporate
18    limits of such home rule municipality with an agency of  this
19    State's  government,  at a rate which is an increment of 1/4%
20    and based on the selling  price  of  such  tangible  personal
21    property,  as  "selling price" is defined in the Use Tax Act.
22    In  home  rule  municipalities  with  less   than   2,000,000
23    inhabitants,  the  tax shall be collected by the municipality
24    imposing the tax from  persons  whose  Illinois  address  for
25    titling  or  registration  purposes is given as being in such
26    municipality.
27        (b)  In home rule municipalities with 2,000,000  or  more
28    inhabitants,  the  corporate  authorities of the municipality
29    may additionally impose a tax beginning July 1, 1991 upon the
30    privilege of using in the municipality, any item of  tangible
31    personal  property,  other  than  tangible  personal property
32    titled  or  registered  with  an  agency   of   the   State's
33    government,  that  is  purchased  at  retail  from a retailer
SB1565 Engrossed            -30-               LRB9011620KDks
 1    located outside the corporate limits of the municipality,  at
 2    a  rate  that  is  an  increment of 1/4% not to exceed 1% and
 3    based on the selling price of the tangible personal property,
 4    as "selling price" is defined in the Use Tax Act.   Such  tax
 5    shall  be  collected  from  the purchaser by the municipality
 6    imposing such tax.
 7        To prevent multiple home rule taxation, the use in a home
 8    rule municipality  of  tangible  personal  property  that  is
 9    acquired  outside  the  municipality and caused to be brought
10    into the municipality by a person who has already paid a home
11    rule municipal tax in another municipality in respect to  the
12    sale,  purchase,  or use of that property, shall be exempt to
13    the extent of the amount of the tax properly due and paid  in
14    the other home rule municipality.
15        (c)  If   a   municipality   having   2,000,000  or  more
16    inhabitants imposes the tax  authorized  by  subsection  (a),
17    then the tax shall be collected by the Illinois Department of
18    Revenue  when  the  property  is  purchased  at retail from a
19    retailer in the county in which the  home  rule  municipality
20    imposing  the tax is located, and in all contiguous counties.
21    The tax shall be remitted  to  the  State,  or  an  exemption
22    determination must be obtained from the Department before the
23    title  or certificate of registration for the property may be
24    issued.  The tax or proof of exemption may be transmitted  to
25    the  Department  by  way  of  the State agency with which, or
26    State officer with whom, the tangible personal property  must
27    be  titled or registered if the Department and that agency or
28    State officer determine that this procedure will expedite the
29    processing of applications for title or registration.
30        The Department shall have full power  to  administer  and
31    enforce  this  Section  to  collect  all taxes, penalties and
32    interest due hereunder, to dispose of  taxes,  penalties  and
33    interest so collected in the manner hereinafter provided, and
34    determine  all  rights to credit memoranda or refunds arising
SB1565 Engrossed            -31-               LRB9011620KDks
 1    on account of  the  erroneous  payment  of  tax,  penalty  or
 2    interest  hereunder.  In the administration of and compliance
 3    with this Section the Department and persons who are  subject
 4    to  this  Section  shall  have  the  same  rights,  remedies,
 5    privileges,  immunities, powers and duties, and be subject to
 6    the same conditions, restrictions, limitations, penalties and
 7    definitions of terms, and employ the same modes of  procedure
 8    as  are  prescribed  in  Sections 2 (except the definition of
 9    "retailer maintaining a place of business in this State"),  3
10    (except  provisions  pertaining to the State rate of tax, and
11    except provisions concerning collection or refunding  of  the
12    tax  by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
13    of the Use Tax Act, which  are  not  inconsistent  with  this
14    Section,  as  fully  as  if  provisions  contained  in  those
15    Sections of the Use Tax Act were set forth herein.
16        Whenever the Department determines that a refund shall be
17    made  under  this  Section to a claimant instead of issuing a
18    credit memorandum, the  Department  shall  notify  the  State
19    Comptroller,  who  shall  cause the order to be drawn for the
20    amount  specified,  and  to  the  person   named,   in   such
21    notification  from the Department.  Such refund shall be paid
22    by the  State  Treasurer  out  of  the  home  rule  municipal
23    retailers' occupation tax fund.
24        The  Department  shall  forthwith  pay  over to the State
25    Treasurer, ex officio, as trustee, all taxes,  penalties  and
26    interest  collected  hereunder.  On or before the 25th day of
27    each calendar month, the Department shall prepare and certify
28    to the State Comptroller the disbursement of stated  sums  of
29    money  to  named  municipalities,  the  municipality  in each
30    instance to be that municipality from  which  the  Department
31    during   the   second  preceding  calendar  month,  collected
32    municipal use tax from any person whose Illinois address  for
33    titling  or  registration  purposes is given as being in such
34    municipality.  The amount to be  paid  to  each  municipality
SB1565 Engrossed            -32-               LRB9011620KDks
 1    shall   be   the  amount  (not  including  credit  memoranda)
 2    collected hereunder  during  the  second  preceding  calendar
 3    month by the Department, and not including an amount equal to
 4    the  amount  of  refunds  made  during  the  second preceding
 5    calendar  month  by  the  Department  on   behalf   of   such
 6    municipality,  less  the  amount  expended  during the second
 7    preceding month  by  the  Department  to  be  paid  from  the
 8    appropriation  to the Department from the Home Rule Municipal
 9    Retailers' Occupation Tax Trust Fund.  The  appropriation  to
10    cover  the  costs incurred by the Department in administering
11    and enforcing this Section shall not exceed 2% of the  amount
12    estimated  to  be  deposited  into  the  Home  Rule Municipal
13    Retailers' Occupation Tax Trust Fund during the  fiscal  year
14    for  which  the  appropriation is made.  Within 10 days after
15    receipt  by  the  State  Comptroller  of   the   disbursement
16    certification  to  the  municipalities  provided  for in this
17    Section  to  be  given  to  the  State  Comptroller  by   the
18    Department,  the  State Comptroller shall cause the orders to
19    be drawn for the respective amounts in  accordance  with  the
20    directions contained in that certification.
21        Any  ordinance  imposing  or  discontinuing any tax to be
22    collected and enforced by the Department under  this  Section
23    shall  be adopted and a certified copy thereof filed with the
24    Department on or before October 1, whereupon  the  Department
25    of  Revenue  shall  proceed  to  administer  and enforce this
26    Section on behalf of the municipalities as of January 1  next
27    following such adoption and filing.  Beginning April 1, 1998,
28    any  ordinance  imposing  or  discontinuing  any  tax  to  be
29    collected  and  enforced by the Department under this Section
30    shall either (i) be adopted  and  a  certified  copy  thereof
31    filed with the Department on or before April 1, whereupon the
32    Department of Revenue shall proceed to administer and enforce
33    this  Section  on  behalf  of the municipalities as of July 1
34    next following the adoption and filing; or  (ii)  be  adopted
SB1565 Engrossed            -33-               LRB9011620KDks
 1    and  a certified copy thereof filed with the Department on or
 2    before October 1, whereupon the Department of  Revenue  shall
 3    proceed  to  administer and enforce this Section on behalf of
 4    the  municipalities  as  of  January  1  next  following  the
 5    adoption and filing.
 6        Nothing in this subsection (c) shall prevent a home  rule
 7    municipality  from  collecting the tax pursuant to subsection
 8    (a) in any situation where such tax is not collected  by  the
 9    Department of Revenue under this subsection (c).
10        (d)  Any  unobligated  balance remaining in the Municipal
11    Retailers' Occupation Tax Fund on December  31,  1989,  which
12    fund was abolished by Public Act 85-1135, and all receipts of
13    municipal  tax  as  a  result  of audits of liability periods
14    prior to January 1,  1990,  shall  be  paid  into  the  Local
15    Government  Tax  Fund,  for  distribution as provided by this
16    Section prior to the enactment of  Public  Act  85-1135.  All
17    receipts  of  municipal  tax as a result of an assessment not
18    arising from an audit, for liability periods prior to January
19    1, 1990, shall be paid into the Local Government Tax Fund for
20    distribution before July 1, 1990, as provided by this Section
21    prior to the enactment of Public  Act  85-1135,  and  on  and
22    after July 1, 1990, all such receipts shall be distributed as
23    provided in Section 6z-18 of the State Finance Act.
24        (e)  As   used   in   this   Section,   "Municipal"   and
25    "Municipality"  means  a  city, village or incorporated town,
26    including an incorporated town which has superseded  a  civil
27    township.
28        (f)  This  Section shall be known and may be cited as the
29    "Home Rule Municipal Use Tax Act".
30    (Source: P.A. 90-562, eff. 12-16-97.)
31        Section 99.  Effective date.  This Act takes effect  upon
32    becoming law.

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