State of Illinois
91st General Assembly
Legislation
4th Special Session

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91_SB1310sam002

 










                                           LRB9110257SMdvam06

 1                    AMENDMENT TO SENATE BILL 1310

 2        AMENDMENT NO.     .  Amend Senate Bill 1310, AS  AMENDED,
 3    by replacing the title with the following:
 4        "AN ACT in relation to taxes."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Use  Tax  Act  is  amended  by  changing
 8    Sections 3-10 and 9 as follows:

 9        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
10        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
11    this Section, the tax imposed by this Act is at the  rate  of
12    6.25%  of  either the selling price or the fair market value,
13    if any, of the tangible  personal  property.   In  all  cases
14    where  property  functionally used or consumed is the same as
15    the property that was purchased at retail, then  the  tax  is
16    imposed  on  the selling price of the property.  In all cases
17    where property functionally used or consumed is a  by-product
18    or  waste  product  that  has  been refined, manufactured, or
19    produced from property purchased at retail, then the  tax  is
20    imposed on the lower of the fair market value, if any, of the
21    specific  property  so  used  in this State or on the selling
 
                            -2-            LRB9110257SMdvam06
 1    price of the property purchased at retail.  For  purposes  of
 2    this  Section  "fair  market  value" means the price at which
 3    property would change hands between a  willing  buyer  and  a
 4    willing  seller, neither being under any compulsion to buy or
 5    sell and both having reasonable  knowledge  of  the  relevant
 6    facts. The fair market value shall be established by Illinois
 7    sales   by   the  taxpayer  of  the  same  property  as  that
 8    functionally used or consumed, or if there are no such  sales
 9    by  the  taxpayer,  then  comparable  sales  or  purchases of
10    property of like kind and character in Illinois.
11        With respect to motor fuel, as defined in Section 1.1  of
12    the  Motor  Fuel  Tax Law, and gasohol, as defined in Section
13    3-40 of the Use Tax Act, the tax is imposed at  the  rate  of
14    1.25%.    If,  however, the aggregate tax revenues from motor
15    fuel and gasohol under the Motor  Fuel  Tax  Law  during  the
16    period  from  October  1, 2002 through September 30, 2003 are
17    not at least 15% more than the aggregate  tax  revenues  from
18    motor  fuel and gasohol under that Law during the period from
19    October 1, 1999 through September 30,  2000,  then  beginning
20    January  1, 2004 the tax is imposed on motor fuel and gasohol
21    at the 6.25% general rate.
22        With respect to gasohol, the  tax  imposed  by  this  Act
23    applies  to  70%  of  the  proceeds of sales made on or after
24    January 1, 1990, and before July 1, 2003, and to 100% of  the
25    proceeds of sales made thereafter.
26        With  respect to food for human consumption that is to be
27    consumed off the  premises  where  it  is  sold  (other  than
28    alcoholic  beverages,  soft  drinks,  and  food that has been
29    prepared for  immediate  consumption)  and  prescription  and
30    nonprescription   medicines,   drugs,   medical   appliances,
31    modifications to a motor vehicle for the purpose of rendering
32    it  usable  by  a disabled person, and insulin, urine testing
33    materials, syringes, and needles used by diabetics, for human
34    use, the tax is imposed at the rate of 1%. For  the  purposes
 
                            -3-            LRB9110257SMdvam06
 1    of  this  Section, the term "soft drinks" means any complete,
 2    finished,   ready-to-use,   non-alcoholic   drink,    whether
 3    carbonated  or  not, including but not limited to soda water,
 4    cola, fruit juice, vegetable juice, carbonated water, and all
 5    other preparations commonly known as soft drinks of  whatever
 6    kind  or  description  that  are  contained  in any closed or
 7    sealed bottle, can, carton, or container, regardless of size.
 8    "Soft drinks" does not include  coffee,  tea,  non-carbonated
 9    water,  infant  formula,  milk or milk products as defined in
10    the Grade A Pasteurized Milk and Milk Products Act, or drinks
11    containing 50% or more natural fruit or vegetable juice.
12        Notwithstanding any other provisions of this  Act,  "food
13    for human consumption that is to be consumed off the premises
14    where  it  is  sold" includes all food sold through a vending
15    machine, except  soft  drinks  and  food  products  that  are
16    dispensed  hot  from  a  vending  machine,  regardless of the
17    location of the vending machine.
18        If the property  that  is  purchased  at  retail  from  a
19    retailer  is  acquired  outside  Illinois  and  used  outside
20    Illinois before being brought to Illinois for use here and is
21    taxable  under this Act, the "selling price" on which the tax
22    is computed shall be reduced by an amount that  represents  a
23    reasonable allowance for depreciation for the period of prior
24    out-of-state use.
25    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
26    91-51, eff. 6-30-99.)

27        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
28        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
29    aircraft,  and  trailers  that  are required to be registered
30    with an agency of  this  State,  each  retailer  required  or
31    authorized  to  collect the tax imposed by this Act shall pay
32    to the Department the amount of such tax (except as otherwise
33    provided) at the time when he is required to file his  return
 
                            -4-            LRB9110257SMdvam06
 1    for  the  period  during which such tax was collected, less a
 2    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
 3    after  January 1, 1990, or $5 per calendar year, whichever is
 4    greater, which is  allowed  to  reimburse  the  retailer  for
 5    expenses  incurred  in  collecting  the tax, keeping records,
 6    preparing and filing returns, remitting the tax and supplying
 7    data to the Department on request.  In the case of  retailers
 8    who  report  and  pay the tax on a transaction by transaction
 9    basis, as provided in this Section, such  discount  shall  be
10    taken  with  each  such  tax  remittance instead of when such
11    retailer files his periodic  return.   A  retailer  need  not
12    remit  that  part  of  any tax collected by him to the extent
13    that he is required to remit and does remit the  tax  imposed
14    by  the  Retailers'  Occupation  Tax Act, with respect to the
15    sale of the same property.
16        Where such tangible personal property  is  sold  under  a
17    conditional  sales  contract, or under any other form of sale
18    wherein the payment of the principal sum, or a part  thereof,
19    is  extended  beyond  the  close  of the period for which the
20    return is filed, the retailer, in collecting the tax  (except
21    as to motor vehicles, watercraft, aircraft, and trailers that
22    are  required to be registered with an agency of this State),
23    may  collect  for  each  tax  return  period,  only  the  tax
24    applicable  to  that  part  of  the  selling  price  actually
25    received during such tax return period.
26        Except as provided in this  Section,  on  or  before  the
27    twentieth  day  of  each  calendar month, such retailer shall
28    file a return for the preceding calendar month.  Such  return
29    shall  be  filed  on  forms  prescribed by the Department and
30    shall  furnish  such  information  as  the   Department   may
31    reasonably require.
32        The  Department  may  require  returns  to  be filed on a
33    quarterly basis.  If so required, a return for each  calendar
34    quarter  shall be filed on or before the twentieth day of the
 
                            -5-            LRB9110257SMdvam06
 1    calendar month following the end of  such  calendar  quarter.
 2    The taxpayer shall also file a return with the Department for
 3    each  of the first two months of each calendar quarter, on or
 4    before the twentieth day of  the  following  calendar  month,
 5    stating:
 6             1.  The name of the seller;
 7             2.  The  address  of the principal place of business
 8        from which he engages in the business of selling tangible
 9        personal property at retail in this State;
10             3.  The total amount of taxable receipts received by
11        him during the preceding calendar  month  from  sales  of
12        tangible  personal  property by him during such preceding
13        calendar month, including receipts from charge  and  time
14        sales, but less all deductions allowed by law;
15             4.  The  amount  of credit provided in Section 2d of
16        this Act;
17             5.  The amount of tax due;
18             5-5.  The signature of the taxpayer; and
19             6.  Such  other  reasonable   information   as   the
20        Department may require.
21        If a taxpayer fails to sign a return within 30 days after
22    the proper notice and demand for signature by the Department,
23    the  return shall be considered valid and any amount shown to
24    be due on the return shall be deemed assessed.
25        Beginning October 1, 1993, a taxpayer who has an  average
26    monthly  tax  liability  of  $150,000  or more shall make all
27    payments required by rules of the  Department  by  electronic
28    funds transfer. Beginning October 1, 1994, a taxpayer who has
29    an  average  monthly  tax liability of $100,000 or more shall
30    make all payments required by  rules  of  the  Department  by
31    electronic  funds  transfer.  Beginning  October  1,  1995, a
32    taxpayer who has an average monthly tax liability of  $50,000
33    or  more  shall  make  all  payments required by rules of the
34    Department by electronic funds transfer. Beginning October 1,
 
                            -6-            LRB9110257SMdvam06
 1    2000, a taxpayer who has an annual tax liability of  $200,000
 2    or  more  shall  make  all  payments required by rules of the
 3    Department by electronic funds transfer.   The  term  "annual
 4    tax liability" shall be the sum of the taxpayer's liabilities
 5    under   this  Act,  and  under  all  other  State  and  local
 6    occupation and use tax laws administered by  the  Department,
 7    for   the  immediately  preceding  calendar  year.  The  term
 8    "average  monthly  tax  liability"  means  the  sum  of   the
 9    taxpayer's  liabilities  under  this Act, and under all other
10    State and local occupation and use tax laws  administered  by
11    the  Department,  for the immediately preceding calendar year
12    divided by 12.
13        Before August 1 of  each  year  beginning  in  1993,  the
14    Department  shall  notify  all  taxpayers  required  to  make
15    payments by electronic funds transfer. All taxpayers required
16    to  make  payments  by  electronic  funds transfer shall make
17    those payments for a minimum of one year beginning on October
18    1.
19        Any taxpayer not required to make payments by  electronic
20    funds transfer may make payments by electronic funds transfer
21    with the permission of the Department.
22        All  taxpayers  required  to  make  payment by electronic
23    funds transfer and any taxpayers  authorized  to  voluntarily
24    make  payments  by electronic funds transfer shall make those
25    payments in the manner authorized by the Department.
26        The Department shall adopt such rules as are necessary to
27    effectuate a program of electronic  funds  transfer  and  the
28    requirements of this Section.
29        Before October 1, 2000, if the taxpayer's average monthly
30    tax   liability   to  the  Department  under  this  Act,  the
31    Retailers' Occupation Tax Act,  the  Service  Occupation  Tax
32    Act,  the  Service Use Tax Act was $10,000 or more during the
33    preceding 4 complete  calendar  quarters,  he  shall  file  a
34    return  with the Department each month by the 20th day of the
 
                            -7-            LRB9110257SMdvam06
 1    month  next  following  the  month  during  which  such   tax
 2    liability   is  incurred  and  shall  make  payments  to  the
 3    Department on or before the 7th, 15th, 22nd and last  day  of
 4    the  month  during  which  such liability is incurred. On and
 5    after October 1, 2000, if the taxpayer's average monthly  tax
 6    liability  to  the  Department under this Act, the Retailers'
 7    Occupation Tax Act, the Service Occupation Tax Act,  and  the
 8    Service  Use Tax Act was $20,000 or more during the preceding
 9    4 complete calendar quarters, he shall file a return with the
10    Department each month by the  20th  day  of  the  month  next
11    following  the  month  during  which  such  tax  liability is
12    incurred and shall make  payment  to  the  Department  on  or
13    before  the  7th,  15th,  22nd  and  last day of or the month
14    during which such liability is incurred. If the month  during
15    which  such  tax liability is incurred began prior to January
16    1, 1985, each payment shall be in an amount equal to  1/4  of
17    the  taxpayer's  actual  liability for the month or an amount
18    set by the Department  not  to  exceed  1/4  of  the  average
19    monthly  liability  of the taxpayer to the Department for the
20    preceding 4 complete calendar quarters (excluding  the  month
21    of  highest  liability  and  the month of lowest liability in
22    such 4 quarter period).  If the month during which  such  tax
23    liability is incurred begins on or after January 1, 1985, and
24    prior  to January 1, 1987, each payment shall be in an amount
25    equal to 22.5% of the taxpayer's  actual  liability  for  the
26    month  or  27.5%  of  the  taxpayer's  liability for the same
27    calendar month of the preceding year.  If  the  month  during
28    which  such  tax  liability  is  incurred  begins on or after
29    January 1, 1987, and prior to January 1, 1988,  each  payment
30    shall be in an amount equal to 22.5% of the taxpayer's actual
31    liability for the month or 26.25% of the taxpayer's liability
32    for  the  same  calendar month of the preceding year.  If the
33    month during which such tax liability is incurred  begins  on
34    or  after  January  1, 1988, and prior to January 1, 1989, or
 
                            -8-            LRB9110257SMdvam06
 1    begins on or after January 1, 1996, each payment shall be  in
 2    an  amount  equal to 22.5% of the taxpayer's actual liability
 3    for the month or 25% of the taxpayer's liability for the same
 4    calendar month of the preceding year.  If  the  month  during
 5    which  such  tax  liability  is  incurred  begins on or after
 6    January 1, 1989, and prior to January 1, 1996,  each  payment
 7    shall be in an amount equal to 22.5% of the taxpayer's actual
 8    liability  for  the  month or 25% of the taxpayer's liability
 9    for the same calendar month of the preceding year or 100%  of
10    the  taxpayer's  actual  liability  for  the  quarter monthly
11    reporting  period.   The  amount  of  such  quarter   monthly
12    payments shall be credited against the final tax liability of
13    the  taxpayer's  return  for  that  month.  Before October 1,
14    2000, once applicable,  the  requirement  of  the  making  of
15    quarter  monthly  payments  to  the Department shall continue
16    until  such  taxpayer's  average  monthly  liability  to  the
17    Department during the preceding 4 complete calendar  quarters
18    (excluding  the  month  of highest liability and the month of
19    lowest  liability)  is  less  than  $9,000,  or  until   such
20    taxpayer's  average  monthly  liability  to the Department as
21    computed  for  each  calendar  quarter  of  the  4  preceding
22    complete  calendar  quarter  period  is  less  than  $10,000.
23    However, if  a  taxpayer  can  show  the  Department  that  a
24    substantial  change  in  the taxpayer's business has occurred
25    which causes the taxpayer  to  anticipate  that  his  average
26    monthly  tax  liability for the reasonably foreseeable future
27    will fall below the $10,000 threshold stated above, then such
28    taxpayer may petition  the  Department  for  change  in  such
29    taxpayer's  reporting  status.  On and after October 1, 2000,
30    once applicable, the requirement of  the  making  of  quarter
31    monthly  payments to the Department shall continue until such
32    taxpayer's average monthly liability to the Department during
33    the preceding 4 complete  calendar  quarters  (excluding  the
34    month of highest liability and the month of lowest liability)
 
                            -9-            LRB9110257SMdvam06
 1    is less than $19,000 or until such taxpayer's average monthly
 2    liability  to  the  Department  as computed for each calendar
 3    quarter of the 4 preceding complete calendar  quarter  period
 4    is  less  than  $20,000.  However, if a taxpayer can show the
 5    Department  that  a  substantial  change  in  the  taxpayer's
 6    business has occurred which causes the taxpayer to anticipate
 7    that his average monthly tax  liability  for  the  reasonably
 8    foreseeable  future  will  fall  below  the $20,000 threshold
 9    stated above, then such taxpayer may petition the  Department
10    for  a  change  in  such  taxpayer's  reporting  status.  The
11    Department shall  change  such  taxpayer's  reporting  status
12    unless  it  finds  that such change is seasonal in nature and
13    not likely to be long  term.  If  any  such  quarter  monthly
14    payment  is not paid at the time or in the amount required by
15    this Section, then the taxpayer shall be liable for penalties
16    and interest on the difference between the minimum amount due
17    and the amount of such quarter monthly payment  actually  and
18    timely  paid,  except  insofar as the taxpayer has previously
19    made payments for that month to the Department in  excess  of
20    the  minimum  payments  previously  due  as  provided in this
21    Section.  The Department  shall  make  reasonable  rules  and
22    regulations  to govern the quarter monthly payment amount and
23    quarter monthly payment dates for taxpayers who file on other
24    than a calendar monthly basis.
25        If any such payment provided for in this Section  exceeds
26    the  taxpayer's  liabilities  under  this Act, the Retailers'
27    Occupation Tax Act, the Service Occupation Tax  Act  and  the
28    Service  Use Tax Act, as shown by an original monthly return,
29    the  Department  shall  issue  to  the  taxpayer   a   credit
30    memorandum  no  later than 30 days after the date of payment,
31    which memorandum may be submitted  by  the  taxpayer  to  the
32    Department  in  payment  of  tax liability subsequently to be
33    remitted by the taxpayer to the Department or be assigned  by
34    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
 
                            -10-           LRB9110257SMdvam06
 1    Retailers' Occupation Tax Act, the Service Occupation Tax Act
 2    or the Service Use Tax Act,  in  accordance  with  reasonable
 3    rules  and  regulations  to  be prescribed by the Department,
 4    except that if such excess payment is shown  on  an  original
 5    monthly return and is made after December 31, 1986, no credit
 6    memorandum shall be issued, unless requested by the taxpayer.
 7    If  no  such  request  is  made, the taxpayer may credit such
 8    excess payment  against  tax  liability  subsequently  to  be
 9    remitted  by  the  taxpayer to the Department under this Act,
10    the Retailers' Occupation Tax Act, the Service Occupation Tax
11    Act or the Service Use Tax Act, in accordance with reasonable
12    rules and regulations prescribed by the Department.   If  the
13    Department  subsequently  determines  that all or any part of
14    the credit taken was not actually due to  the  taxpayer,  the
15    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
16    by 2.1% or 1.75% of the difference between the  credit  taken
17    and  that  actually due, and the taxpayer shall be liable for
18    penalties and interest on such difference.
19        If the retailer is otherwise required to file  a  monthly
20    return and if the retailer's average monthly tax liability to
21    the  Department  does  not  exceed  $200,  the Department may
22    authorize his returns to be filed on a quarter annual  basis,
23    with  the  return for January, February, and March of a given
24    year being due by April 20 of such year; with the return  for
25    April,  May  and June of a given year being due by July 20 of
26    such year; with the return for July, August and September  of
27    a  given  year being due by October 20 of such year, and with
28    the return for October, November and December of a given year
29    being due by January 20 of the following year.
30        If the retailer is otherwise required to file  a  monthly
31    or quarterly return and if the retailer's average monthly tax
32    liability   to  the  Department  does  not  exceed  $50,  the
33    Department may authorize his returns to be filed on an annual
34    basis, with the return for a given year being due by  January
 
                            -11-           LRB9110257SMdvam06
 1    20 of the following year.
 2        Such  quarter  annual  and annual returns, as to form and
 3    substance, shall be  subject  to  the  same  requirements  as
 4    monthly returns.
 5        Notwithstanding   any   other   provision   in  this  Act
 6    concerning the time within which  a  retailer  may  file  his
 7    return, in the case of any retailer who ceases to engage in a
 8    kind  of  business  which  makes  him  responsible for filing
 9    returns under this Act, such  retailer  shall  file  a  final
10    return  under  this Act with the Department not more than one
11    month after discontinuing such business.
12        In addition, with respect to motor vehicles,  watercraft,
13    aircraft,  and  trailers  that  are required to be registered
14    with an agency of this State,  every  retailer  selling  this
15    kind  of  tangible  personal  property  shall  file, with the
16    Department, upon a form to be prescribed and supplied by  the
17    Department,  a separate return for each such item of tangible
18    personal property  which  the  retailer  sells,  except  that
19    where,  in  the  same  transaction,  a  retailer of aircraft,
20    watercraft, motor vehicles or trailers  transfers  more  than
21    one aircraft, watercraft, motor vehicle or trailer to another
22    aircraft,  watercraft,  motor vehicle or trailer retailer for
23    the purpose of resale, that seller for resale may report  the
24    transfer  of  all the aircraft, watercraft, motor vehicles or
25    trailers involved in that transaction to  the  Department  on
26    the  same  uniform invoice-transaction reporting return form.
27    For purposes of this Section, "watercraft" means a  Class  2,
28    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
29    the Boat Registration and Safety Act, a personal  watercraft,
30    or any boat equipped with an inboard motor.
31        The  transaction  reporting  return  in the case of motor
32    vehicles or trailers that are required to be registered  with
33    an  agency  of  this State, shall be the same document as the
34    Uniform Invoice referred to in Section 5-402 of the  Illinois
 
                            -12-           LRB9110257SMdvam06
 1    Vehicle  Code  and  must  show  the  name  and address of the
 2    seller; the name and address of the purchaser; the amount  of
 3    the  selling  price  including  the  amount  allowed  by  the
 4    retailer  for  traded-in property, if any; the amount allowed
 5    by the retailer for the traded-in tangible personal property,
 6    if any, to the extent to which Section 2 of this  Act  allows
 7    an exemption for the value of traded-in property; the balance
 8    payable  after  deducting  such  trade-in  allowance from the
 9    total selling price; the amount of tax due from the  retailer
10    with respect to such transaction; the amount of tax collected
11    from  the  purchaser  by the retailer on such transaction (or
12    satisfactory evidence that  such  tax  is  not  due  in  that
13    particular  instance, if that is claimed to be the fact); the
14    place and date of the sale; a  sufficient  identification  of
15    the  property  sold; such other information as is required in
16    Section 5-402 of the Illinois Vehicle Code,  and  such  other
17    information as the Department may reasonably require.
18        The   transaction   reporting   return  in  the  case  of
19    watercraft and aircraft must show the name and address of the
20    seller; the name and address of the purchaser; the amount  of
21    the  selling  price  including  the  amount  allowed  by  the
22    retailer  for  traded-in property, if any; the amount allowed
23    by the retailer for the traded-in tangible personal property,
24    if any, to the extent to which Section 2 of this  Act  allows
25    an exemption for the value of traded-in property; the balance
26    payable  after  deducting  such  trade-in  allowance from the
27    total selling price; the amount of tax due from the  retailer
28    with respect to such transaction; the amount of tax collected
29    from  the  purchaser  by the retailer on such transaction (or
30    satisfactory evidence that  such  tax  is  not  due  in  that
31    particular  instance, if that is claimed to be the fact); the
32    place and date of the sale, a  sufficient  identification  of
33    the   property  sold,  and  such  other  information  as  the
34    Department may reasonably require.
 
                            -13-           LRB9110257SMdvam06
 1        Such transaction reporting  return  shall  be  filed  not
 2    later  than  20  days  after the date of delivery of the item
 3    that is being sold, but may be filed by the retailer  at  any
 4    time   sooner  than  that  if  he  chooses  to  do  so.   The
 5    transaction reporting return and tax remittance or  proof  of
 6    exemption  from  the  tax  that is imposed by this Act may be
 7    transmitted to the Department by way of the State agency with
 8    which, or State officer  with  whom,  the  tangible  personal
 9    property   must  be  titled  or  registered  (if  titling  or
10    registration is required) if the Department and  such  agency
11    or  State officer determine that this procedure will expedite
12    the processing of applications for title or registration.
13        With each such transaction reporting return, the retailer
14    shall remit the proper amount of tax  due  (or  shall  submit
15    satisfactory evidence that the sale is not taxable if that is
16    the  case),  to  the  Department or its agents, whereupon the
17    Department shall  issue,  in  the  purchaser's  name,  a  tax
18    receipt  (or  a certificate of exemption if the Department is
19    satisfied that the particular sale is tax exempt) which  such
20    purchaser  may  submit  to  the  agency  with which, or State
21    officer with whom, he must title  or  register  the  tangible
22    personal   property   that   is   involved   (if  titling  or
23    registration is required)  in  support  of  such  purchaser's
24    application  for an Illinois certificate or other evidence of
25    title or registration to such tangible personal property.
26        No retailer's failure or refusal to remit tax under  this
27    Act  precludes  a  user,  who  has paid the proper tax to the
28    retailer, from obtaining his certificate of  title  or  other
29    evidence of title or registration (if titling or registration
30    is  required)  upon  satisfying the Department that such user
31    has paid the proper tax (if tax is due) to the retailer.  The
32    Department shall adopt appropriate rules  to  carry  out  the
33    mandate of this paragraph.
34        If  the  user who would otherwise pay tax to the retailer
 
                            -14-           LRB9110257SMdvam06
 1    wants the transaction reporting return filed and the  payment
 2    of  tax  or  proof of exemption made to the Department before
 3    the retailer is willing to take these actions and  such  user
 4    has  not  paid the tax to the retailer, such user may certify
 5    to the fact of such delay by the retailer, and may (upon  the
 6    Department   being   satisfied   of   the   truth   of   such
 7    certification)  transmit  the  information  required  by  the
 8    transaction  reporting  return  and the remittance for tax or
 9    proof of exemption directly to the Department and obtain  his
10    tax  receipt  or  exemption determination, in which event the
11    transaction reporting return and tax  remittance  (if  a  tax
12    payment  was required) shall be credited by the Department to
13    the  proper  retailer's  account  with  the  Department,  but
14    without the 2.1% or  1.75%  discount  provided  for  in  this
15    Section  being  allowed.  When the user pays the tax directly
16    to the Department, he shall pay the tax in  the  same  amount
17    and in the same form in which it would be remitted if the tax
18    had been remitted to the Department by the retailer.
19        Where  a  retailer  collects  the tax with respect to the
20    selling price of tangible personal property  which  he  sells
21    and  the  purchaser thereafter returns such tangible personal
22    property and the retailer refunds the selling  price  thereof
23    to  the  purchaser,  such  retailer shall also refund, to the
24    purchaser, the tax so  collected  from  the  purchaser.  When
25    filing his return for the period in which he refunds such tax
26    to  the  purchaser, the retailer may deduct the amount of the
27    tax so refunded by him to the purchaser from  any  other  use
28    tax  which  such  retailer may be required to pay or remit to
29    the Department, as shown by such return, if the amount of the
30    tax to be deducted was previously remitted to the  Department
31    by  such  retailer.   If  the  retailer  has  not  previously
32    remitted  the  amount  of  such  tax to the Department, he is
33    entitled to no deduction under this Act upon  refunding  such
34    tax to the purchaser.
 
                            -15-           LRB9110257SMdvam06
 1        Any  retailer  filing  a  return under this Section shall
 2    also include (for the purpose  of  paying  tax  thereon)  the
 3    total  tax  covered  by such return upon the selling price of
 4    tangible personal property purchased by him at retail from  a
 5    retailer, but as to which the tax imposed by this Act was not
 6    collected  from  the  retailer  filing  such return, and such
 7    retailer shall remit the amount of such tax to the Department
 8    when filing such return.
 9        If experience indicates such action  to  be  practicable,
10    the  Department  may  prescribe  and furnish a combination or
11    joint return which will enable retailers, who are required to
12    file  returns  hereunder  and  also  under   the   Retailers'
13    Occupation  Tax  Act,  to  furnish all the return information
14    required by both Acts on the one form.
15        Where the retailer has more than one business  registered
16    with  the  Department  under separate registration under this
17    Act, such retailer may not file each return that is due as  a
18    single  return  covering  all such registered businesses, but
19    shall  file  separate  returns  for  each   such   registered
20    business.
21        Beginning  January  1,  1990,  each  month the Department
22    shall pay into the State and Local Sales Tax Reform  Fund,  a
23    special  fund  in the State Treasury which is hereby created,
24    the net revenue realized for the preceding month from the  1%
25    tax  on  sales  of  food for human consumption which is to be
26    consumed off the  premises  where  it  is  sold  (other  than
27    alcoholic  beverages,  soft  drinks  and  food which has been
28    prepared for  immediate  consumption)  and  prescription  and
29    nonprescription  medicines,  drugs,  medical  appliances  and
30    insulin,  urine  testing materials, syringes and needles used
31    by diabetics.
32        Beginning January 1,  1990,  each  month  the  Department
33    shall  pay  into the County and Mass Transit District Fund 4%
34    of the net revenue realized for the preceding month from  the
 
                            -16-           LRB9110257SMdvam06
 1    6.25%  general rate on the selling price of tangible personal
 2    property which is purchased outside Illinois at retail from a
 3    retailer and which is titled or registered by  an  agency  of
 4    this State's government.
 5        Beginning  January  1,  1990,  each  month the Department
 6    shall pay into the State and Local Sales Tax Reform  Fund,  a
 7    special  fund  in  the State Treasury, 20% of the net revenue
 8    realized for the preceding month from the 6.25% general  rate
 9    on  the  selling  price  of tangible personal property, other
10    than tangible personal property which  is  purchased  outside
11    Illinois  at  retail  from  a retailer and which is titled or
12    registered by an agency of this State's government.
13        Beginning November 1, 2000,  and  so  long  as  the  rate
14    remains  at  1.25%,  each month the Department shall pay into
15    the County and Mass Transit District  Fund  20%  of  the  net
16    revenue  realized for the preceding month from the 1.25% rate
17    on the selling price of motor fuel and gasohol.
18        Beginning January 1,  1990,  each  month  the  Department
19    shall  pay  into the Local Government Tax Fund 16% of the net
20    revenue realized for  the  preceding  month  from  the  6.25%
21    general  rate  on  the  selling  price  of  tangible personal
22    property which is purchased outside Illinois at retail from a
23    retailer and which is titled or registered by  an  agency  of
24    this State's government.
25        Beginning  November  1,  2000,  and  so  long as the rate
26    remains at 1.25%, each month the Department  shall  pay  into
27    the Local Government Tax Fund 80% of the net revenue realized
28    for  the  preceding  month from the 1.25% rate on the selling
29    price of motor fuel and gasohol.
30        Of the remainder of the moneys received by the Department
31    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
32    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
33    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
34    into  the  Build Illinois Fund; provided, however, that if in
 
                            -17-           LRB9110257SMdvam06
 1    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 2    as the case may be, of the moneys received by the  Department
 3    and required to be paid into the Build Illinois Fund pursuant
 4    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
 5    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 6    Section 9 of the Service Occupation Tax Act, such Acts  being
 7    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 8    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
 9    called  the  "Tax Act Amount", and (2) the amount transferred
10    to the Build Illinois Fund from the State and Local Sales Tax
11    Reform Fund shall be less than the  Annual  Specified  Amount
12    (as  defined  in  Section  3 of the Retailers' Occupation Tax
13    Act), an amount equal to the difference shall be  immediately
14    paid  into the Build Illinois Fund from other moneys received
15    by the Department pursuant  to  the  Tax  Acts;  and  further
16    provided,  that  if on the last business day of any month the
17    sum of (1) the Tax Act Amount required to be  deposited  into
18    the  Build  Illinois  Bond Account in the Build Illinois Fund
19    during such month and (2) the amount transferred during  such
20    month  to  the  Build  Illinois Fund from the State and Local
21    Sales Tax Reform Fund shall have been less than 1/12  of  the
22    Annual  Specified  Amount,  an amount equal to the difference
23    shall be immediately paid into the Build Illinois  Fund  from
24    other  moneys  received by the Department pursuant to the Tax
25    Acts; and, further provided,  that  in  no  event  shall  the
26    payments  required  under  the  preceding  proviso  result in
27    aggregate payments into the Build Illinois Fund  pursuant  to
28    this  clause (b) for any fiscal year in excess of the greater
29    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
30    for such fiscal year; and, further provided, that the amounts
31    payable into the Build Illinois Fund under  this  clause  (b)
32    shall be payable only until such time as the aggregate amount
33    on  deposit  under each trust indenture securing Bonds issued
34    and outstanding pursuant to the Build Illinois  Bond  Act  is
 
                            -18-           LRB9110257SMdvam06
 1    sufficient, taking into account any future investment income,
 2    to  fully provide, in accordance with such indenture, for the
 3    defeasance of or the payment of the principal of, premium, if
 4    any, and interest on the Bonds secured by such indenture  and
 5    on  any  Bonds  expected to be issued thereafter and all fees
 6    and costs payable with respect thereto, all as  certified  by
 7    the  Director  of  the  Bureau of the Budget.  If on the last
 8    business day of any month  in  which  Bonds  are  outstanding
 9    pursuant to the Build Illinois Bond Act, the aggregate of the
10    moneys  deposited  in  the Build Illinois Bond Account in the
11    Build Illinois Fund in such month  shall  be  less  than  the
12    amount  required  to  be  transferred  in such month from the
13    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
14    Retirement  and  Interest  Fund pursuant to Section 13 of the
15    Build Illinois Bond Act, an amount equal to  such  deficiency
16    shall  be  immediately paid from other moneys received by the
17    Department pursuant to the Tax Acts  to  the  Build  Illinois
18    Fund;  provided,  however, that any amounts paid to the Build
19    Illinois Fund in any fiscal year pursuant  to  this  sentence
20    shall be deemed to constitute payments pursuant to clause (b)
21    of  the  preceding  sentence  and  shall  reduce  the  amount
22    otherwise payable for such fiscal year pursuant to clause (b)
23    of  the  preceding  sentence.   The  moneys  received  by the
24    Department pursuant to this Act and required to be  deposited
25    into the Build Illinois Fund are subject to the pledge, claim
26    and charge set forth in Section 12 of the Build Illinois Bond
27    Act.
28        Subject  to  payment  of  amounts into the Build Illinois
29    Fund as  provided  in  the  preceding  paragraph  or  in  any
30    amendment  thereto hereafter enacted, the following specified
31    monthly  installment  of  the   amount   requested   in   the
32    certificate  of  the  Chairman  of  the Metropolitan Pier and
33    Exposition Authority provided  under  Section  8.25f  of  the
34    State  Finance  Act, but not in excess of the sums designated
 
                            -19-           LRB9110257SMdvam06
 1    as "Total Deposit", shall be deposited in the aggregate  from
 2    collections  under Section 9 of the Use Tax Act, Section 9 of
 3    the Service Use Tax Act, Section 9 of the Service  Occupation
 4    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
 5    into the  McCormick  Place  Expansion  Project  Fund  in  the
 6    specified fiscal years.
 7             Fiscal Year                   Total Deposit
 8                 1993                            $0
 9                 1994                        53,000,000
10                 1995                        58,000,000
11                 1996                        61,000,000
12                 1997                        64,000,000
13                 1998                        68,000,000
14                 1999                        71,000,000
15                 2000                        75,000,000
16                 2001                        80,000,000
17                 2002                        84,000,000
18                 2003                        89,000,000
19                 2004                        93,000,000
20                 2005                        97,000,000
21                 2006                       102,000,000
22                 2007                       108,000,000
23                 2008                       115,000,000
24                 2009                       120,000,000
25                 2010                       126,000,000
26                 2011                       132,000,000
27                 2012                       138,000,000
28                 2013 and                   145,000,000
29        each fiscal year
30        thereafter that bonds
31        are outstanding under
32        Section 13.2 of the
33        Metropolitan Pier and
34        Exposition Authority
 
                            -20-           LRB9110257SMdvam06
 1        Act, but not after fiscal year 2029.
 2        Beginning  July 20, 1993 and in each month of each fiscal
 3    year thereafter, one-eighth of the amount  requested  in  the
 4    certificate  of  the  Chairman  of  the Metropolitan Pier and
 5    Exposition Authority for that fiscal year,  less  the  amount
 6    deposited  into the McCormick Place Expansion Project Fund by
 7    the State Treasurer in the respective month under  subsection
 8    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 9    Authority Act, plus cumulative deficiencies in  the  deposits
10    required  under  this  Section for previous months and years,
11    shall be deposited into the McCormick Place Expansion Project
12    Fund, until the full amount requested for  the  fiscal  year,
13    but  not  in  excess  of the amount specified above as "Total
14    Deposit", has been deposited.
15        Subject to payment of amounts  into  the  Build  Illinois
16    Fund  and the McCormick Place Expansion Project Fund pursuant
17    to the preceding  paragraphs  or  in  any  amendment  thereto
18    hereafter  enacted,  each month the Department shall pay into
19    the Local Government Distributive Fund .4% of the net revenue
20    realized for the preceding month from the 5% general rate, or
21    .4% of 80% of the net  revenue  realized  for  the  preceding
22    month from the 6.25% general rate, as the case may be, on the
23    selling  price  of  tangible  personal  property which amount
24    shall, subject to appropriation, be distributed  as  provided
25    in Section 2 of the State Revenue Sharing Act. No payments or
26    distributions pursuant to this paragraph shall be made if the
27    tax  imposed  by  this  Act  on  photoprocessing  products is
28    declared unconstitutional, or if the proceeds from  such  tax
29    are unavailable for distribution because of litigation.
30        Subject  to  payment  of  amounts into the Build Illinois
31    Fund, the McCormick Place Expansion  Project  Fund,  and  the
32    Local  Government Distributive Fund pursuant to the preceding
33    paragraphs or in any amendments  thereto  hereafter  enacted,
34    beginning  July  1, 1993, the Department shall each month pay
 
                            -21-           LRB9110257SMdvam06
 1    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
 2    revenue  realized  for  the  preceding  month  from the 6.25%
 3    general rate  on  the  selling  price  of  tangible  personal
 4    property.
 5        Of the remainder of the moneys received by the Department
 6    pursuant  to  this  Act,  75%  thereof shall be paid into the
 7    State Treasury and 25% shall be reserved in a special account
 8    and used only for the transfer to the Common School  Fund  as
 9    part of the monthly transfer from the General Revenue Fund in
10    accordance with Section 8a of the State Finance Act.
11        As  soon  as  possible after the first day of each month,
12    upon  certification  of  the  Department  of   Revenue,   the
13    Comptroller  shall  order transferred and the Treasurer shall
14    transfer from the General Revenue Fund to the Motor Fuel  Tax
15    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
16    realized under this  Act  for  the  second  preceding  month.
17    Beginning  April 1, 2000, this transfer is no longer required
18    and shall not be made.
19        Net revenue realized for a month  shall  be  the  revenue
20    collected  by the State pursuant to this Act, less the amount
21    paid out during  that  month  as  refunds  to  taxpayers  for
22    overpayment of liability.
23        For  greater simplicity of administration, manufacturers,
24    importers and wholesalers whose products are sold  at  retail
25    in Illinois by numerous retailers, and who wish to do so, may
26    assume  the  responsibility  for accounting and paying to the
27    Department all tax accruing under this Act  with  respect  to
28    such  sales,  if  the  retailers who are affected do not make
29    written objection to the Department to this arrangement.
30    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
31    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
32    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

33        Section  10.   The  Service  Use  Tax  Act  is amended by
 
                            -22-           LRB9110257SMdvam06
 1    changing Sections 3-10 and 9 as follows:

 2        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
 3        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
 4    this  Section,  the tax imposed by this Act is at the rate of
 5    6.25% of the selling  price  of  tangible  personal  property
 6    transferred  as  an incident to the sale of service, but, for
 7    the purpose of computing this tax,  in  no  event  shall  the
 8    selling  price be less than the cost price of the property to
 9    the serviceman.
10        With respect to motor fuel, as defined in Section 1.1  of
11    the  Motor  Fuel  Tax Law, and gasohol, as defined in Section
12    3-40 of the Use Tax Act, the tax is imposed at  the  rate  of
13    1.25%.    If,  however, the aggregate tax revenues from motor
14    fuel and gasohol under the Motor  Fuel  Tax  Law  during  the
15    period  from  October  1, 2002 through September 30, 2003 are
16    not at least 15% more than the aggregate  tax  revenues  from
17    motor  fuel and gasohol under that Law during the period from
18    October 1, 1999 through September 30,  2000,  then  beginning
19    January  1, 2004 the tax is imposed on motor fuel and gasohol
20    at the 6.25% general rate.
21        With respect to gasohol, as defined in the Use  Tax  Act,
22    the  tax  imposed  by  this Act applies to 70% of the selling
23    price of property transferred as an incident to the  sale  of
24    service on or after January 1, 1990, and before July 1, 2003,
25    and to 100% of the selling price thereafter.
26        At  the  election  of  any registered serviceman made for
27    each fiscal year, sales of service  in  which  the  aggregate
28    annual  cost  price of tangible personal property transferred
29    as an incident to the sales of service is less than  35%,  or
30    75% in the case of servicemen transferring prescription drugs
31    or  servicemen  engaged  in  graphic  arts production, of the
32    aggregate annual total  gross  receipts  from  all  sales  of
33    service,  the  tax  imposed by this Act shall be based on the
 
                            -23-           LRB9110257SMdvam06
 1    serviceman's cost price of  the  tangible  personal  property
 2    transferred as an incident to the sale of those services.
 3        The  tax  shall  be  imposed  at  the  rate of 1% on food
 4    prepared for immediate consumption and  transferred  incident
 5    to  a  sale  of  service  subject  to this Act or the Service
 6    Occupation Tax Act by an entity licensed under  the  Hospital
 7    Licensing  Act,  the Nursing Home Care Act, or the Child Care
 8    Act of 1969.  The tax shall also be imposed at the rate of 1%
 9    on food for human consumption that is to be consumed off  the
10    premises  where  it  is sold (other than alcoholic beverages,
11    soft drinks, and food that has been  prepared  for  immediate
12    consumption  and is not otherwise included in this paragraph)
13    and  prescription  and  nonprescription   medicines,   drugs,
14    medical  appliances, modifications to a motor vehicle for the
15    purpose of rendering it usable  by  a  disabled  person,  and
16    insulin,  urine testing materials, syringes, and needles used
17    by diabetics,  for  human  use.  For  the  purposes  of  this
18    Section, the term "soft drinks" means any complete, finished,
19    ready-to-use, non-alcoholic drink, whether carbonated or not,
20    including  but  not limited to soda water, cola, fruit juice,
21    vegetable juice, carbonated water, and all other preparations
22    commonly known as soft drinks of whatever kind or description
23    that are contained in  any  closed  or  sealed  bottle,  can,
24    carton, or container, regardless of size.  "Soft drinks" does
25    not   include   coffee,  tea,  non-carbonated  water,  infant
26    formula, milk or milk products as  defined  in  the  Grade  A
27    Pasteurized  Milk and Milk Products Act, or drinks containing
28    50% or more natural fruit or vegetable juice.
29        Notwithstanding any other provisions of this  Act,  "food
30    for human consumption that is to be consumed off the premises
31    where  it  is  sold" includes all food sold through a vending
32    machine, except  soft  drinks  and  food  products  that  are
33    dispensed  hot  from  a  vending  machine,  regardless of the
34    location of the vending machine.
 
                            -24-           LRB9110257SMdvam06
 1        If the property that is acquired  from  a  serviceman  is
 2    acquired  outside  Illinois  and used outside Illinois before
 3    being brought to Illinois for use here and is  taxable  under
 4    this  Act,  the  "selling price" on which the tax is computed
 5    shall be reduced by an amount that  represents  a  reasonable
 6    allowance   for   depreciation   for   the  period  of  prior
 7    out-of-state use.
 8    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
 9    91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)

10        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
11        Sec.   9.  Each  serviceman  required  or  authorized  to
12    collect the tax herein imposed shall pay  to  the  Department
13    the  amount of such tax (except as otherwise provided) at the
14    time when he is required to file his return  for  the  period
15    during  which such tax was collected, less a discount of 2.1%
16    prior to January 1, 1990 and 1.75% on and  after  January  1,
17    1990, or $5 per calendar year, whichever is greater, which is
18    allowed  to reimburse the serviceman for expenses incurred in
19    collecting the tax, keeping  records,  preparing  and  filing
20    returns,   remitting  the  tax  and  supplying  data  to  the
21    Department on request. A serviceman need not remit that  part
22    of any tax collected by him to the extent that he is required
23    to pay and does pay the tax imposed by the Service Occupation
24    Tax  Act  with  respect  to his sale of service involving the
25    incidental transfer by him of the same property.
26        Except as provided hereinafter in  this  Section,  on  or
27    before  the  twentieth  day  of  each  calendar  month,  such
28    serviceman  shall  file  a  return for the preceding calendar
29    month in accordance with reasonable Rules and Regulations  to
30    be  promulgated by the Department. Such return shall be filed
31    on a form prescribed by the Department and shall contain such
32    information as the Department may reasonably require.
33        The Department may require  returns  to  be  filed  on  a
 
                            -25-           LRB9110257SMdvam06
 1    quarterly  basis.  If so required, a return for each calendar
 2    quarter shall be filed on or before the twentieth day of  the
 3    calendar  month  following  the end of such calendar quarter.
 4    The taxpayer shall also file a return with the Department for
 5    each of the first two months of each calendar quarter, on  or
 6    before  the  twentieth  day  of the following calendar month,
 7    stating:
 8             1.  The name of the seller;
 9             2.  The address of the principal place  of  business
10        from which he engages in business as a serviceman in this
11        State;
12             3.  The total amount of taxable receipts received by
13        him   during  the  preceding  calendar  month,  including
14        receipts  from  charge  and  time  sales,  but  less  all
15        deductions allowed by law;
16             4.  The amount of credit provided in Section  2d  of
17        this Act;
18             5.  The amount of tax due;
19             5-5.  The signature of the taxpayer; and
20             6.  Such   other   reasonable   information  as  the
21        Department may require.
22        If a taxpayer fails to sign a return within 30 days after
23    the proper notice and demand for signature by the Department,
24    the return shall be considered valid and any amount shown  to
25    be due on the return shall be deemed assessed.
26        Beginning  October 1, 1993, a taxpayer who has an average
27    monthly tax liability of $150,000  or  more  shall  make  all
28    payments  required  by  rules of the Department by electronic
29    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
30    has  an  average  monthly  tax  liability of $100,000 or more
31    shall make all payments required by rules of  the  Department
32    by  electronic  funds transfer.  Beginning October 1, 1995, a
33    taxpayer who has an average monthly tax liability of  $50,000
34    or  more  shall  make  all  payments required by rules of the
 
                            -26-           LRB9110257SMdvam06
 1    Department by electronic funds transfer. Beginning October 1,
 2    2000, a taxpayer who has an annual tax liability of  $200,000
 3    or  more  shall  make  all  payments required by rules of the
 4    Department by electronic funds transfer.   The  term  "annual
 5    tax liability" shall be the sum of the taxpayer's liabilities
 6    under   this  Act,  and  under  all  other  State  and  local
 7    occupation and use tax laws administered by  the  Department,
 8    for  the  immediately  preceding  calendar  year.    The term
 9    "average  monthly  tax  liability"  means  the  sum  of   the
10    taxpayer's  liabilities  under  this Act, and under all other
11    State and local occupation and use tax laws  administered  by
12    the  Department,  for the immediately preceding calendar year
13    divided by 12.
14        Before August 1 of  each  year  beginning  in  1993,  the
15    Department  shall  notify  all  taxpayers  required  to  make
16    payments by electronic funds transfer. All taxpayers required
17    to  make  payments  by  electronic  funds transfer shall make
18    those payments for a minimum of one year beginning on October
19    1.
20        Any taxpayer not required to make payments by  electronic
21    funds transfer may make payments by electronic funds transfer
22    with the permission of the Department.
23        All  taxpayers  required  to  make  payment by electronic
24    funds transfer and any taxpayers  authorized  to  voluntarily
25    make  payments  by electronic funds transfer shall make those
26    payments in the manner authorized by the Department.
27        The Department shall adopt such rules as are necessary to
28    effectuate a program of electronic  funds  transfer  and  the
29    requirements of this Section.
30        If the serviceman is otherwise required to file a monthly
31    return  and if the serviceman's average monthly tax liability
32    to the Department does not exceed $200,  the  Department  may
33    authorize  his returns to be filed on a quarter annual basis,
34    with the return for January, February and March  of  a  given
 
                            -27-           LRB9110257SMdvam06
 1    year  being due by April 20 of such year; with the return for
 2    April, May and June of a given year being due by July  20  of
 3    such  year; with the return for July, August and September of
 4    a given year being due by October 20 of such year,  and  with
 5    the return for October, November and December of a given year
 6    being due by January 20 of the following year.
 7        If the serviceman is otherwise required to file a monthly
 8    or  quarterly  return and if the serviceman's average monthly
 9    tax liability to the Department  does  not  exceed  $50,  the
10    Department may authorize his returns to be filed on an annual
11    basis,  with the return for a given year being due by January
12    20 of the following year.
13        Such quarter annual and annual returns, as  to  form  and
14    substance,  shall  be  subject  to  the  same requirements as
15    monthly returns.
16        Notwithstanding  any  other   provision   in   this   Act
17    concerning  the  time  within which a serviceman may file his
18    return, in the case of any serviceman who ceases to engage in
19    a kind of business which makes  him  responsible  for  filing
20    returns  under  this  Act, such serviceman shall file a final
21    return under this Act with the Department  not  more  than  1
22    month after discontinuing such business.
23        Where  a  serviceman collects the tax with respect to the
24    selling price of property which he sells  and  the  purchaser
25    thereafter  returns  such property and the serviceman refunds
26    the selling price thereof to the purchaser,  such  serviceman
27    shall  also  refund,  to  the purchaser, the tax so collected
28    from the purchaser. When filing his return for the period  in
29    which  he  refunds  such tax to the purchaser, the serviceman
30    may deduct the amount of the tax so refunded by  him  to  the
31    purchaser  from any other Service Use Tax, Service Occupation
32    Tax,  retailers'  occupation  tax  or  use  tax  which   such
33    serviceman may be required to pay or remit to the Department,
34    as  shown by such return, provided that the amount of the tax
 
                            -28-           LRB9110257SMdvam06
 1    to be deducted shall previously have  been  remitted  to  the
 2    Department  by  such  serviceman. If the serviceman shall not
 3    previously have remitted  the  amount  of  such  tax  to  the
 4    Department,  he  shall  be entitled to no deduction hereunder
 5    upon refunding such tax to the purchaser.
 6        Any serviceman  filing  a  return  hereunder  shall  also
 7    include  the  total  tax  upon  the selling price of tangible
 8    personal property purchased for use by him as an incident  to
 9    a sale of service, and such serviceman shall remit the amount
10    of such tax to the Department when filing such return.
11        If  experience  indicates  such action to be practicable,
12    the Department may prescribe and  furnish  a  combination  or
13    joint  return  which will enable servicemen, who are required
14    to  file  returns  hereunder  and  also  under  the   Service
15    Occupation  Tax  Act,  to  furnish all the return information
16    required by both Acts on the one form.
17        Where  the  serviceman  has  more   than   one   business
18    registered  with  the  Department under separate registration
19    hereunder, such serviceman shall not file each return that is
20    due  as  a  single  return  covering  all   such   registered
21    businesses,  but  shall  file  separate returns for each such
22    registered business.
23        Beginning January 1,  1990,  each  month  the  Department
24    shall pay into the State and Local Tax Reform Fund, a special
25    fund  in the State Treasury, the net revenue realized for the
26    preceding month from the 1% tax on sales of  food  for  human
27    consumption which is to be consumed off the premises where it
28    is sold (other than alcoholic beverages, soft drinks and food
29    which  has  been  prepared  for  immediate  consumption)  and
30    prescription  and  nonprescription  medicines, drugs, medical
31    appliances and insulin, urine testing materials, syringes and
32    needles used by diabetics.
33        Beginning November 1, 2000,  and  so  long  as  the  rate
34    remains  at  1.25%,  each month the Department shall pay into
 
                            -29-           LRB9110257SMdvam06
 1    the County and Mass Transit District  Fund  20%  of  the  net
 2    revenue  realized for the preceding month from the 1.25% rate
 3    on the selling price of motor fuel and gasohol.
 4        Beginning January 1,  1990,  each  month  the  Department
 5    shall  pay into the State and Local Sales Tax Reform Fund 20%
 6    of the net revenue realized for the preceding month from  the
 7    6.25%   general   rate  on  transfers  of  tangible  personal
 8    property, other than  tangible  personal  property  which  is
 9    purchased  outside  Illinois  at  retail  from a retailer and
10    which is titled or registered by an agency  of  this  State's
11    government.
12        Beginning  November  1,  2000,  and  so  long as the rate
13    remains at 1.25%, each month the Department  shall  pay  into
14    the Local Government Tax Fund 80% of the net revenue realized
15    for  the  preceding  month from the 1.25% rate on the selling
16    price of motor fuel and gasohol.
17        Of the remainder of the moneys received by the Department
18    pursuant to this Act, (a)  1.75% thereof shall be  paid  into
19    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
20    and on and after July 1, 1989, 3.8% thereof  shall  be   paid
21    into  the  Build Illinois Fund; provided, however, that if in
22    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
23    as the case may be, of the moneys received by the  Department
24    and required to be paid into the Build Illinois Fund pursuant
25    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
26    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
27    Section 9 of the Service Occupation Tax Act, such Acts  being
28    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
29    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
30    called  the  "Tax Act Amount", and (2) the amount transferred
31    to the Build Illinois Fund from the State and Local Sales Tax
32    Reform Fund shall be less than the Annual  Specified   Amount
33    (as  defined  in  Section  3 of the Retailers' Occupation Tax
34    Act), an amount equal to the difference shall be  immediately
 
                            -30-           LRB9110257SMdvam06
 1    paid  into the Build Illinois Fund from other moneys received
 2    by the Department pursuant  to  the  Tax  Acts;  and  further
 3    provided,  that  if on the last business day of any month the
 4    sum of (1) the Tax Act Amount required to be  deposited  into
 5    the  Build  Illinois  Bond Account in the Build Illinois Fund
 6    during such month and (2) the amount transferred during  such
 7    month  to  the  Build  Illinois Fund from the State and Local
 8    Sales Tax Reform Fund shall have been less than 1/12  of  the
 9    Annual  Specified  Amount,  an amount equal to the difference
10    shall be immediately paid into the Build Illinois  Fund  from
11    other  moneys  received by the Department pursuant to the Tax
12    Acts; and, further provided,  that  in  no  event  shall  the
13    payments  required  under  the  preceding  proviso  result in
14    aggregate payments into the Build Illinois Fund  pursuant  to
15    this  clause (b) for any fiscal year in excess of the greater
16    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
17    for such fiscal year; and, further provided, that the amounts
18    payable into the Build Illinois Fund under  this  clause  (b)
19    shall be payable only until such time as the aggregate amount
20    on  deposit  under each trust indenture securing Bonds issued
21    and outstanding pursuant to the Build Illinois  Bond  Act  is
22    sufficient, taking into account any future investment income,
23    to  fully provide, in accordance with such indenture, for the
24    defeasance of or the payment of the principal of, premium, if
25    any, and interest on the Bonds secured by such indenture  and
26    on  any  Bonds  expected to be issued thereafter and all fees
27    and costs payable with respect thereto, all as  certified  by
28    the  Director  of  the  Bureau of the Budget.  If on the last
29    business day of any month  in  which  Bonds  are  outstanding
30    pursuant to the Build Illinois Bond Act, the aggregate of the
31    moneys  deposited  in  the Build Illinois Bond Account in the
32    Build Illinois Fund in such month  shall  be  less  than  the
33    amount  required  to  be  transferred  in such month from the
34    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 
                            -31-           LRB9110257SMdvam06
 1    Retirement  and  Interest  Fund pursuant to Section 13 of the
 2    Build Illinois Bond Act, an amount equal to  such  deficiency
 3    shall  be  immediately paid from other moneys received by the
 4    Department pursuant to the Tax Acts  to  the  Build  Illinois
 5    Fund;  provided,  however, that any amounts paid to the Build
 6    Illinois Fund in any fiscal year pursuant  to  this  sentence
 7    shall be deemed to constitute payments pursuant to clause (b)
 8    of  the  preceding  sentence  and  shall  reduce  the  amount
 9    otherwise payable for such fiscal year pursuant to clause (b)
10    of  the  preceding  sentence.   The  moneys  received  by the
11    Department pursuant to this Act and required to be  deposited
12    into the Build Illinois Fund are subject to the pledge, claim
13    and charge set forth in Section 12 of the Build Illinois Bond
14    Act.
15        Subject  to  payment  of  amounts into the Build Illinois
16    Fund as  provided  in  the  preceding  paragraph  or  in  any
17    amendment  thereto hereafter enacted, the following specified
18    monthly  installment  of  the   amount   requested   in   the
19    certificate  of  the  Chairman  of  the Metropolitan Pier and
20    Exposition Authority provided  under  Section  8.25f  of  the
21    State  Finance  Act, but not in excess of the sums designated
22    as "Total Deposit", shall be deposited in the aggregate  from
23    collections  under Section 9 of the Use Tax Act, Section 9 of
24    the Service Use Tax Act, Section 9 of the Service  Occupation
25    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
26    into the  McCormick  Place  Expansion  Project  Fund  in  the
27    specified fiscal years.
28          Fiscal Year                     Total Deposit
29             1993                                   $0
30             1994                           53,000,000
31             1995                           58,000,000
32             1996                           61,000,000
33             1997                           64,000,000
34             1998                           68,000,000
 
                            -32-           LRB9110257SMdvam06
 1             1999                           71,000,000
 2             2000                           75,000,000
 3             2001                           80,000,000
 4             2002                           84,000,000
 5             2003                           89,000,000
 6             2004                           93,000,000
 7             2005                           97,000,000
 8             2006                           102,000,000
 9             2007                           108,000,000
10             2008                           115,000,000
11             2009                           120,000,000
12             2010                           126,000,000
13             2011                           132,000,000
14             2012                           138,000,000
15             2013 and                       145,000,000
16        each fiscal year
17        thereafter that bonds
18        are outstanding under
19        Section 13.2 of the
20        Metropolitan Pier and
21        Exposition Authority Act,
22        but not after fiscal year 2029.
23        Beginning  July 20, 1993 and in each month of each fiscal
24    year thereafter, one-eighth of the amount  requested  in  the
25    certificate  of  the  Chairman  of  the Metropolitan Pier and
26    Exposition Authority for that fiscal year,  less  the  amount
27    deposited  into the McCormick Place Expansion Project Fund by
28    the State Treasurer in the respective month under  subsection
29    (g)  of  Section  13  of the Metropolitan Pier and Exposition
30    Authority Act, plus cumulative deficiencies in  the  deposits
31    required  under  this  Section for previous months and years,
32    shall be deposited into the McCormick Place Expansion Project
33    Fund, until the full amount requested for  the  fiscal  year,
34    but  not  in  excess  of the amount specified above as "Total
 
                            -33-           LRB9110257SMdvam06
 1    Deposit", has been deposited.
 2        Subject to payment of amounts  into  the  Build  Illinois
 3    Fund  and the McCormick Place Expansion Project Fund pursuant
 4    to the preceding  paragraphs  or  in  any  amendment  thereto
 5    hereafter  enacted,  each month the Department shall pay into
 6    the Local  Government  Distributive  Fund  0.4%  of  the  net
 7    revenue  realized for the preceding month from the 5% general
 8    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
 9    preceding  month from the 6.25% general rate, as the case may
10    be, on the selling price of tangible personal property  which
11    amount  shall,  subject  to  appropriation, be distributed as
12    provided in Section 2 of the State Revenue  Sharing  Act.  No
13    payments or distributions pursuant to this paragraph shall be
14    made  if  the  tax  imposed  by  this Act on photo processing
15    products is declared unconstitutional,  or  if  the  proceeds
16    from  such  tax  are  unavailable for distribution because of
17    litigation.
18        Subject to payment of amounts  into  the  Build  Illinois
19    Fund,  the  McCormick  Place  Expansion Project Fund, and the
20    Local Government Distributive Fund pursuant to the  preceding
21    paragraphs  or  in  any amendments thereto hereafter enacted,
22    beginning July 1, 1993, the Department shall each  month  pay
23    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
24    revenue realized for  the  preceding  month  from  the  6.25%
25    general  rate  on  the  selling  price  of  tangible personal
26    property.
27        All remaining moneys received by the Department  pursuant
28    to  this  Act  shall be paid into the General Revenue Fund of
29    the State Treasury.
30        As soon as possible after the first day  of  each  month,
31    upon   certification   of  the  Department  of  Revenue,  the
32    Comptroller shall order transferred and the  Treasurer  shall
33    transfer  from the General Revenue Fund to the Motor Fuel Tax
34    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
 
                            -34-           LRB9110257SMdvam06
 1    realized  under  this  Act  for  the  second preceding month.
 2    Beginning April 1, 2000, this transfer is no longer  required
 3    and shall not be made.
 4        Net  revenue  realized  for  a month shall be the revenue
 5    collected by the State pursuant to this Act, less the  amount
 6    paid  out  during  that  month  as  refunds  to taxpayers for
 7    overpayment of liability.
 8    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
 9    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
10    revised 9-27-99.)

11        Section 15.  The Service Occupation Tax Act is amended by
12    changing Sections 3-10 and 9 as follows:

13        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
14        Sec.  3-10.  Rate  of  tax.  Unless otherwise provided in
15    this Section, the tax imposed by this Act is at the  rate  of
16    6.25%  of the "selling price", as defined in Section 2 of the
17    Service Use Tax Act, of the tangible personal property.   For
18    the  purpose  of  computing  this  tax, in no event shall the
19    "selling price" be less than the cost price to the serviceman
20    of the tangible personal property transferred.   The  selling
21    price  of each item of tangible personal property transferred
22    as an incident of a  sale  of  service  may  be  shown  as  a
23    distinct and separate item on the serviceman's billing to the
24    service  customer.  If the selling price is not so shown, the
25    selling price of the tangible personal property is deemed  to
26    be  50%  of  the  serviceman's  entire billing to the service
27    customer.  When, however, a serviceman contracts  to  design,
28    develop,  and  produce  special order machinery or equipment,
29    the  tax  imposed  by  this  Act  shall  be  based   on   the
30    serviceman's  cost  price  of  the tangible personal property
31    transferred incident to the completion of the contract.
32        With respect to motor fuel, as defined in Section 1.1  of
 
                            -35-           LRB9110257SMdvam06
 1    the  Motor  Fuel  Tax Law, and gasohol, as defined in Section
 2    3-40 of the Use Tax Act, the tax is imposed at  the  rate  of
 3    1.25%.    If,  however, the aggregate tax revenues from motor
 4    fuel and gasohol under the Motor  Fuel  Tax  Law  during  the
 5    period  from  October  1, 2002 through September 30, 2003 are
 6    not at least 15% more than the aggregate  tax  revenues  from
 7    motor  fuel and gasohol under that Law during the period from
 8    October 1, 1999 through September 30,  2000,  then  beginning
 9    January  1, 2004 the tax is imposed on motor fuel and gasohol
10    at the 6.25% general rate.
11        With respect to gasohol, as defined in the Use  Tax  Act,
12    the  tax  imposed  by this Act shall apply to 70% of the cost
13    price of property transferred as an incident to the  sale  of
14    service on or after January 1, 1990, and before July 1, 2003,
15    and to 100% of the cost price thereafter.
16        At  the  election  of  any registered serviceman made for
17    each fiscal year, sales of service  in  which  the  aggregate
18    annual  cost  price of tangible personal property transferred
19    as an incident to the sales of service is less than  35%,  or
20    75% in the case of servicemen transferring prescription drugs
21    or  servicemen  engaged  in  graphic  arts production, of the
22    aggregate annual total  gross  receipts  from  all  sales  of
23    service,  the  tax  imposed by this Act shall be based on the
24    serviceman's cost price of  the  tangible  personal  property
25    transferred incident to the sale of those services.
26        The  tax  shall  be  imposed  at  the  rate of 1% on food
27    prepared for immediate consumption and  transferred  incident
28    to  a  sale  of  service  subject  to this Act or the Service
29    Occupation Tax Act by an entity licensed under  the  Hospital
30    Licensing  Act,  the Nursing Home Care Act, or the Child Care
31    Act of 1969.  The tax shall also be imposed at the rate of 1%
32    on food for human consumption that is to be consumed off  the
33    premises  where  it  is sold (other than alcoholic beverages,
34    soft drinks, and food that has been  prepared  for  immediate
 
                            -36-           LRB9110257SMdvam06
 1    consumption  and is not otherwise included in this paragraph)
 2    and  prescription  and  nonprescription   medicines,   drugs,
 3    medical  appliances, modifications to a motor vehicle for the
 4    purpose of rendering it usable  by  a  disabled  person,  and
 5    insulin,  urine testing materials, syringes, and needles used
 6    by diabetics, for  human  use.   For  the  purposes  of  this
 7    Section, the term "soft drinks" means any complete, finished,
 8    ready-to-use, non-alcoholic drink, whether carbonated or not,
 9    including  but  not limited to soda water, cola, fruit juice,
10    vegetable juice, carbonated water, and all other preparations
11    commonly known as soft drinks of whatever kind or description
12    that are contained in any closed or sealed  can,  carton,  or
13    container,  regardless  of  size.   "Soft  drinks"  does  not
14    include  coffee,  tea,  non-carbonated water, infant formula,
15    milk or milk products as defined in the Grade  A  Pasteurized
16    Milk  and Milk Products Act, or drinks containing 50% or more
17    natural fruit or vegetable juice.
18        Notwithstanding any other provisions of this  Act,  "food
19    for human consumption that is to be consumed off the premises
20    where  it  is  sold" includes all food sold through a vending
21    machine, except  soft  drinks  and  food  products  that  are
22    dispensed  hot  from  a  vending  machine,  regardless of the
23    location of the vending machine.
24    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
25    91-51, 6-30-99; 91-541, eff. 8-13-99.)

26        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
27        Sec.  9.   Each  serviceman  required  or  authorized  to
28    collect  the  tax  herein imposed shall pay to the Department
29    the amount of such tax at the time when  he  is  required  to
30    file  his  return  for  the  period during which such tax was
31    collectible, less a discount of  2.1%  prior  to  January  1,
32    1990,  and  1.75%  on  and  after  January 1, 1990, or $5 per
33    calendar year, whichever is  greater,  which  is  allowed  to
 
                            -37-           LRB9110257SMdvam06
 1    reimburse  the serviceman for expenses incurred in collecting
 2    the tax,  keeping  records,  preparing  and  filing  returns,
 3    remitting  the  tax  and  supplying data to the Department on
 4    request.
 5        Where such tangible personal property  is  sold  under  a
 6    conditional  sales  contract, or under any other form of sale
 7    wherein the payment of the principal sum, or a part  thereof,
 8    is  extended  beyond  the  close  of the period for which the
 9    return is filed, the serviceman, in collecting  the  tax  may
10    collect,  for each tax return period, only the tax applicable
11    to the part of the selling  price  actually  received  during
12    such tax return period.
13        Except  as  provided  hereinafter  in this Section, on or
14    before  the  twentieth  day  of  each  calendar  month,  such
15    serviceman shall file a return  for  the  preceding  calendar
16    month  in accordance with reasonable rules and regulations to
17    be promulgated by the Department of  Revenue.    Such  return
18    shall  be  filed  on  a form prescribed by the Department and
19    shall  contain  such  information  as  the   Department   may
20    reasonably require.
21        The  Department  may  require  returns  to  be filed on a
22    quarterly basis.  If so required, a return for each  calendar
23    quarter  shall be filed on or before the twentieth day of the
24    calendar month following the end of  such  calendar  quarter.
25    The taxpayer shall also file a return with the Department for
26    each  of the first two months of each calendar quarter, on or
27    before the twentieth day of  the  following  calendar  month,
28    stating:
29             1.  The name of the seller;
30             2.  The  address  of the principal place of business
31        from which he engages in business as a serviceman in this
32        State;
33             3.  The total amount of taxable receipts received by
34        him  during  the  preceding  calendar  month,   including
 
                            -38-           LRB9110257SMdvam06
 1        receipts  from  charge  and  time  sales,  but  less  all
 2        deductions allowed by law;
 3             4.  The  amount  of credit provided in Section 2d of
 4        this Act;
 5             5.  The amount of tax due;
 6             5-5.  The signature of the taxpayer; and
 7             6.  Such  other  reasonable   information   as   the
 8        Department may require.
 9        If a taxpayer fails to sign a return within 30 days after
10    the proper notice and demand for signature by the Department,
11    the  return shall be considered valid and any amount shown to
12    be due on the return shall be deemed assessed.
13        A serviceman may accept a Manufacturer's Purchase  Credit
14    certification from a purchaser in satisfaction of Service Use
15    Tax as provided in Section 3-70 of the Service Use Tax Act if
16    the  purchaser  provides  the  appropriate  documentation  as
17    required  by  Section  3-70  of  the  Service Use Tax Act.  A
18    Manufacturer's Purchase Credit certification, accepted  by  a
19    serviceman as provided in Section 3-70 of the Service Use Tax
20    Act,  may  be  used  by  that  serviceman  to satisfy Service
21    Occupation  Tax  liability  in  the  amount  claimed  in  the
22    certification, not to exceed 6.25% of the receipts subject to
23    tax from a qualifying purchase.
24        If the serviceman's average monthly tax liability to  the
25    Department does not exceed $200, the Department may authorize
26    his  returns  to be filed on a quarter annual basis, with the
27    return for January, February and March of a given year  being
28    due  by April 20 of such year; with the return for April, May
29    and June of a given year being due by July 20 of  such  year;
30    with  the  return  for  July, August and September of a given
31    year being due by October 20  of  such  year,  and  with  the
32    return  for  October,  November  and December of a given year
33    being due by January 20 of the following year.
34        If the serviceman's average monthly tax liability to  the
 
                            -39-           LRB9110257SMdvam06
 1    Department  does not exceed $50, the Department may authorize
 2    his returns to be filed on an annual basis, with  the  return
 3    for  a  given  year  being due by January 20 of the following
 4    year.
 5        Such quarter annual and annual returns, as  to  form  and
 6    substance,  shall  be  subject  to  the  same requirements as
 7    monthly returns.
 8        Notwithstanding  any  other   provision   in   this   Act
 9    concerning  the  time  within which a serviceman may file his
10    return, in the case of any serviceman who ceases to engage in
11    a kind of business which makes  him  responsible  for  filing
12    returns  under  this  Act, such serviceman shall file a final
13    return under this Act with the Department  not  more  than  1
14    month after discontinuing such business.
15        Beginning  October 1, 1993, a taxpayer who has an average
16    monthly tax liability of $150,000  or  more  shall  make  all
17    payments  required  by  rules of the Department by electronic
18    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
19    has  an  average  monthly  tax  liability of $100,000 or more
20    shall make all payments required by rules of  the  Department
21    by  electronic  funds transfer.  Beginning October 1, 1995, a
22    taxpayer who has an average monthly tax liability of  $50,000
23    or  more  shall  make  all  payments required by rules of the
24    Department by electronic funds transfer.   Beginning  October
25    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
26    $200,000 or more shall make all payments required by rules of
27    the  Department  by  electronic  funds  transfer.   The  term
28    "annual tax liability" shall be the  sum  of  the  taxpayer's
29    liabilities  under  this  Act,  and under all other State and
30    local  occupation  and  use  tax  laws  administered  by  the
31    Department, for the immediately preceding calendar year.  The
32    term  "average  monthly  tax  liability" means the sum of the
33    taxpayer's liabilities under this Act, and  under  all  other
34    State  and  local occupation and use tax laws administered by
 
                            -40-           LRB9110257SMdvam06
 1    the Department, for the immediately preceding  calendar  year
 2    divided by 12.
 3        Before  August  1  of  each  year  beginning in 1993, the
 4    Department  shall  notify  all  taxpayers  required  to  make
 5    payments  by  electronic  funds  transfer.    All   taxpayers
 6    required  to make payments by electronic funds transfer shall
 7    make those payments for a minimum of one  year  beginning  on
 8    October 1.
 9        Any  taxpayer not required to make payments by electronic
10    funds transfer may make payments by electronic funds transfer
11    with the permission of the Department.
12        All taxpayers required  to  make  payment  by  electronic
13    funds  transfer  and  any taxpayers authorized to voluntarily
14    make payments by electronic funds transfer shall  make  those
15    payments in the manner authorized by the Department.
16        The Department shall adopt such rules as are necessary to
17    effectuate  a  program  of  electronic funds transfer and the
18    requirements of this Section.
19        Where a serviceman collects the tax with respect  to  the
20    selling  price  of  tangible personal property which he sells
21    and the purchaser thereafter returns such  tangible  personal
22    property and the serviceman refunds the selling price thereof
23    to  the  purchaser, such serviceman shall also refund, to the
24    purchaser, the tax so collected  from  the  purchaser.   When
25    filing his return for the period in which he refunds such tax
26    to the purchaser, the serviceman may deduct the amount of the
27    tax  so  refunded  by  him  to  the  purchaser from any other
28    Service  Occupation  Tax,   Service   Use   Tax,   Retailers'
29    Occupation  Tax  or  Use  Tax  which  such  serviceman may be
30    required to pay or remit to the Department, as shown by  such
31    return,  provided  that  the amount of the tax to be deducted
32    shall previously have been remitted to the Department by such
33    serviceman.  If the  serviceman  shall  not  previously  have
34    remitted  the  amount of such tax to the Department, he shall
 
                            -41-           LRB9110257SMdvam06
 1    be entitled to no deduction hereunder upon refunding such tax
 2    to the purchaser.
 3        If experience indicates such action  to  be  practicable,
 4    the  Department  may  prescribe  and furnish a combination or
 5    joint return which will enable servicemen, who  are  required
 6    to  file  returns  hereunder  and  also  under the Retailers'
 7    Occupation Tax Act, the Use Tax Act or the  Service  Use  Tax
 8    Act,  to  furnish  all the return information required by all
 9    said Acts on the one form.
10        Where  the  serviceman  has  more   than   one   business
11    registered  with  the Department under separate registrations
12    hereunder, such serviceman shall file  separate  returns  for
13    each registered business.
14        Beginning  January  1,  1990,  each  month the Department
15    shall pay into the Local  Government  Tax  Fund  the  revenue
16    realized  for the preceding month from the 1% tax on sales of
17    food for human consumption which is to be  consumed  off  the
18    premises  where  it  is sold (other than alcoholic beverages,
19    soft drinks and food which has been  prepared  for  immediate
20    consumption)  and prescription and nonprescription medicines,
21    drugs,  medical  appliances  and   insulin,   urine   testing
22    materials, syringes and needles used by diabetics.
23        Beginning  January  1,  1990,  each  month the Department
24    shall pay into the County and Mass Transit District  Fund  4%
25    of  the  revenue  realized  for  the preceding month from the
26    6.25% general rate.
27        Beginning November 1, 2000,  and  so  long  as  the  rate
28    remains  at  1.25%,  each month the Department shall pay into
29    the County and Mass Transit District  Fund  20%  of  the  net
30    revenue  realized for the preceding month from the 1.25% rate
31    on the selling price of motor fuel and gasohol.
32        Beginning January 1,  1990,  each  month  the  Department
33    shall  pay  into  the  Local  Government  Tax Fund 16% of the
34    revenue realized for  the  preceding  month  from  the  6.25%
 
                            -42-           LRB9110257SMdvam06
 1    general rate on transfers of tangible personal property.
 2        Beginning  November  1,  2000,  and  so  long as the rate
 3    remains at 1.25%, each month the Department  shall  pay  into
 4    the Local Government Tax Fund 80% of the net revenue realized
 5    for  the  preceding  month from the 1.25% rate on the selling
 6    price of motor fuel and gasohol.
 7        Of the remainder of the moneys received by the Department
 8    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
 9    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
10    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
11    into  the  Build Illinois Fund; provided, however, that if in
12    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
13    as the case may be, of the moneys received by the  Department
14    and required to be paid into the Build Illinois Fund pursuant
15    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
16    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
17    Section 9 of the Service Occupation Tax Act, such Acts  being
18    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
19    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
20    called  the  "Tax Act Amount", and (2) the amount transferred
21    to the Build Illinois Fund from the State and Local Sales Tax
22    Reform Fund shall be less than the  Annual  Specified  Amount
23    (as  defined  in  Section  3 of the Retailers' Occupation Tax
24    Act), an amount equal to the difference shall be  immediately
25    paid  into the Build Illinois Fund from other moneys received
26    by the Department pursuant  to  the  Tax  Acts;  and  further
27    provided,  that  if on the last business day of any month the
28    sum of (1) the Tax Act Amount required to be  deposited  into
29    the  Build Illinois Account in the Build Illinois Fund during
30    such month and (2) the amount transferred during  such  month
31    to the Build Illinois Fund from the State and Local Sales Tax
32    Reform  Fund  shall  have  been  less than 1/12 of the Annual
33    Specified Amount, an amount equal to the difference shall  be
34    immediately  paid  into  the  Build  Illinois Fund from other
 
                            -43-           LRB9110257SMdvam06
 1    moneys received by the Department pursuant to the  Tax  Acts;
 2    and,  further  provided,  that in no event shall the payments
 3    required under the  preceding  proviso  result  in  aggregate
 4    payments into the Build Illinois Fund pursuant to this clause
 5    (b)  for  any fiscal year in excess of the greater of (i) the
 6    Tax Act Amount or (ii) the Annual Specified Amount  for  such
 7    fiscal  year; and, further provided, that the amounts payable
 8    into the Build Illinois Fund under this clause (b)  shall  be
 9    payable  only  until  such  time  as  the aggregate amount on
10    deposit under each trust indenture securing Bonds issued  and
11    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
12    sufficient, taking into account any future investment income,
13    to fully provide, in accordance with such indenture, for  the
14    defeasance of or the payment of the principal of, premium, if
15    any,  and interest on the Bonds secured by such indenture and
16    on any Bonds expected to be issued thereafter  and  all  fees
17    and  costs  payable with respect thereto, all as certified by
18    the Director of the Bureau of the Budget.   If  on  the  last
19    business  day  of  any  month  in which Bonds are outstanding
20    pursuant to the Build Illinois Bond Act, the aggregate of the
21    moneys deposited in the Build Illinois Bond  Account  in  the
22    Build  Illinois  Fund  in  such  month shall be less than the
23    amount required to be transferred  in  such  month  from  the
24    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
25    Retirement and Interest Fund pursuant to Section  13  of  the
26    Build  Illinois  Bond Act, an amount equal to such deficiency
27    shall be immediately paid from other moneys received  by  the
28    Department  pursuant  to  the  Tax Acts to the Build Illinois
29    Fund; provided, however, that any amounts paid to  the  Build
30    Illinois  Fund  in  any fiscal year pursuant to this sentence
31    shall be deemed to constitute payments pursuant to clause (b)
32    of  the  preceding  sentence  and  shall  reduce  the  amount
33    otherwise payable for such fiscal year pursuant to clause (b)
34    of the  preceding  sentence.   The  moneys  received  by  the
 
                            -44-           LRB9110257SMdvam06
 1    Department  pursuant to this Act and required to be deposited
 2    into the Build Illinois Fund are subject to the pledge, claim
 3    and charge set forth in Section 12 of the Build Illinois Bond
 4    Act.
 5        Subject to payment of amounts  into  the  Build  Illinois
 6    Fund  as  provided  in  the  preceding  paragraph  or  in any
 7    amendment thereto hereafter enacted, the following  specified
 8    monthly   installment   of   the   amount  requested  in  the
 9    certificate of the Chairman  of  the  Metropolitan  Pier  and
10    Exposition  Authority  provided  under  Section  8.25f of the
11    State Finance Act, but not in excess of the  sums  designated
12    as  "Total Deposit", shall be deposited in the aggregate from
13    collections under Section 9 of the Use Tax Act, Section 9  of
14    the  Service Use Tax Act, Section 9 of the Service Occupation
15    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
16    into  the  McCormick  Place  Expansion  Project  Fund  in the
17    specified fiscal years.
18             Fiscal Year                   Total Deposit
19                 1993                            $0
20                 1994                        53,000,000
21                 1995                        58,000,000
22                 1996                        61,000,000
23                 1997                        64,000,000
24                 1998                        68,000,000
25                 1999                        71,000,000
26                 2000                        75,000,000
27                 2001                        80,000,000
28                 2002                        84,000,000
29                 2003                        89,000,000
30                 2004                        93,000,000
31                 2005                        97,000,000
32                 2006                       102,000,000
33                 2007                       108,000,000
34                 2008                       115,000,000
 
                            -45-           LRB9110257SMdvam06
 1                 2009                       120,000,000
 2                 2010                       126,000,000
 3                 2011                       132,000,000
 4                 2012                       138,000,000
 5                 2013 and                   145,000,000
 6        each fiscal year
 7        thereafter that bonds
 8        are outstanding under
 9        Section 13.2 of the
10        Metropolitan Pier and
11        Exposition Authority
12        Act, but not after fiscal year 2029.
13        Beginning July 20, 1993 and in each month of each  fiscal
14    year  thereafter,  one-eighth  of the amount requested in the
15    certificate of the Chairman  of  the  Metropolitan  Pier  and
16    Exposition  Authority  for  that fiscal year, less the amount
17    deposited into the McCormick Place Expansion Project Fund  by
18    the  State Treasurer in the respective month under subsection
19    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
20    Authority  Act,  plus cumulative deficiencies in the deposits
21    required under this Section for previous  months  and  years,
22    shall be deposited into the McCormick Place Expansion Project
23    Fund,  until  the  full amount requested for the fiscal year,
24    but not in excess of the amount  specified  above  as  "Total
25    Deposit", has been deposited.
26        Subject  to  payment  of  amounts into the Build Illinois
27    Fund and the McCormick Place Expansion Project Fund  pursuant
28    to  the  preceding  paragraphs  or  in  any amendment thereto
29    hereafter enacted, each month the Department shall  pay  into
30    the  Local  Government  Distributive  Fund  0.4%  of  the net
31    revenue realized for the preceding month from the 5%  general
32    rate  or  0.4%  of  80%  of  the net revenue realized for the
33    preceding month from the 6.25% general rate, as the case  may
34    be,  on the selling price of tangible personal property which
 
                            -46-           LRB9110257SMdvam06
 1    amount shall, subject to  appropriation,  be  distributed  as
 2    provided  in  Section 2 of the State Revenue Sharing Act.  No
 3    payments or distributions pursuant to this paragraph shall be
 4    made if the  tax  imposed  by  this  Act  on  photoprocessing
 5    products  is  declared  unconstitutional,  or if the proceeds
 6    from such tax are unavailable  for  distribution  because  of
 7    litigation.
 8        Subject  to  payment  of  amounts into the Build Illinois
 9    Fund, the McCormick Place Expansion  Project  Fund,  and  the
10    Local  Government Distributive Fund pursuant to the preceding
11    paragraphs or in any amendments  thereto  hereafter  enacted,
12    beginning  July  1, 1993, the Department shall each month pay
13    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
14    revenue  realized  for  the  preceding  month  from the 6.25%
15    general rate  on  the  selling  price  of  tangible  personal
16    property.
17        Remaining  moneys  received by the Department pursuant to
18    this Act shall be paid into the General Revenue Fund  of  the
19    State Treasury.
20        The  Department  may,  upon  separate written notice to a
21    taxpayer, require the taxpayer to prepare and file  with  the
22    Department  on a form prescribed by the Department within not
23    less than 60 days after  receipt  of  the  notice  an  annual
24    information  return for the tax year specified in the notice.
25    Such  annual  return  to  the  Department  shall  include   a
26    statement  of  gross receipts as shown by the taxpayer's last
27    Federal income tax return.  If  the  total  receipts  of  the
28    business  as reported in the Federal income tax return do not
29    agree with the gross receipts reported to the  Department  of
30    Revenue for the same period, the taxpayer shall attach to his
31    annual  return  a  schedule showing a reconciliation of the 2
32    amounts and the reasons for the difference.   The  taxpayer's
33    annual  return to the Department shall also disclose the cost
34    of goods sold by the taxpayer during the year covered by such
 
                            -47-           LRB9110257SMdvam06
 1    return, opening and closing inventories  of  such  goods  for
 2    such  year, cost of goods used from stock or taken from stock
 3    and given away by the taxpayer during  such  year,  pay  roll
 4    information  of  the taxpayer's business during such year and
 5    any additional reasonable information  which  the  Department
 6    deems  would  be  helpful  in determining the accuracy of the
 7    monthly, quarterly or annual returns filed by  such  taxpayer
 8    as hereinbefore provided for in this Section.
 9        If the annual information return required by this Section
10    is  not  filed  when  and  as required, the taxpayer shall be
11    liable as follows:
12             (i)  Until January 1, 1994, the  taxpayer  shall  be
13        liable  for  a  penalty equal to 1/6 of 1% of the tax due
14        from such taxpayer under this Act during the period to be
15        covered by the annual return for each month  or  fraction
16        of  a  month  until such return is filed as required, the
17        penalty to be assessed and collected in the  same  manner
18        as any other penalty provided for in this Act.
19             (ii)  On  and  after  January  1, 1994, the taxpayer
20        shall be liable for a penalty as described in Section 3-4
21        of the Uniform Penalty and Interest Act.
22        The chief executive officer, proprietor, owner or highest
23    ranking manager shall sign the annual return to  certify  the
24    accuracy  of  the  information contained therein.  Any person
25    who willfully signs the annual  return  containing  false  or
26    inaccurate   information  shall  be  guilty  of  perjury  and
27    punished accordingly.  The annual return form  prescribed  by
28    the  Department  shall  include  a  warning  that  the person
29    signing the return may be liable for perjury.
30        The foregoing portion  of  this  Section  concerning  the
31    filing  of  an annual information return shall not apply to a
32    serviceman who is not required to file an income  tax  return
33    with the United States Government.
34        As  soon  as  possible after the first day of each month,
 
                            -48-           LRB9110257SMdvam06
 1    upon  certification  of  the  Department  of   Revenue,   the
 2    Comptroller  shall  order transferred and the Treasurer shall
 3    transfer from the General Revenue Fund to the Motor Fuel  Tax
 4    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 5    realized under this  Act  for  the  second  preceding  month.
 6    Beginning  April 1, 2000, this transfer is no longer required
 7    and shall not be made.
 8        Net revenue realized for a month  shall  be  the  revenue
 9    collected  by the State pursuant to this Act, less the amount
10    paid out during  that  month  as  refunds  to  taxpayers  for
11    overpayment of liability.
12        For  greater  simplicity  of  administration, it shall be
13    permissible  for  manufacturers,  importers  and  wholesalers
14    whose products are sold by numerous servicemen  in  Illinois,
15    and  who  wish  to  do  so,  to assume the responsibility for
16    accounting and paying to  the  Department  all  tax  accruing
17    under  this Act with respect to such sales, if the servicemen
18    who are  affected  do  not  make  written  objection  to  the
19    Department to this arrangement.
20    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
21    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
22    revised 9-28-99.)

23        Section 20.  The Retailers' Occupation Tax Act is amended
24    by changing Sections 2-10, 2d, and 3 as follows:

25        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
26        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
27    this  Section,  the tax imposed by this Act is at the rate of
28    6.25% of gross  receipts  from  sales  of  tangible  personal
29    property made in the course of business.
30        With  respect to motor fuel, as defined in Section 1.1 of
31    the Motor Fuel Tax Law, and gasohol, as  defined  in  Section
32    3-40  of  the  Use Tax Act, the tax is imposed at the rate of
 
                            -49-           LRB9110257SMdvam06
 1    1.25%.  If, however, the aggregate tax  revenues  from  motor
 2    fuel  and  gasohol  under  the  Motor Fuel Tax Law during the
 3    period from October 1, 2002 through September  30,  2003  are
 4    not  at  least  15% more than the aggregate tax revenues from
 5    motor fuel and gasohol under that Law during the period  from
 6    October  1,  1999  through September 30, 2000, then beginning
 7    January 1, 2004 the tax is imposed on motor fuel and  gasohol
 8    at the 6.25% general rate.
 9        With  respect  to gasohol, as defined in the Use Tax Act,
10    the tax imposed by this Act applies to 70% of the proceeds of
11    sales made on or after January 1, 1990, and  before  July  1,
12    2003, and to 100% of the proceeds of sales made thereafter.
13        With  respect to food for human consumption that is to be
14    consumed off the  premises  where  it  is  sold  (other  than
15    alcoholic  beverages,  soft  drinks,  and  food that has been
16    prepared for  immediate  consumption)  and  prescription  and
17    nonprescription   medicines,   drugs,   medical   appliances,
18    modifications to a motor vehicle for the purpose of rendering
19    it  usable  by  a disabled person, and insulin, urine testing
20    materials, syringes, and needles used by diabetics, for human
21    use, the tax is imposed at the rate of 1%. For  the  purposes
22    of  this  Section, the term "soft drinks" means any complete,
23    finished,   ready-to-use,   non-alcoholic   drink,    whether
24    carbonated  or  not, including but not limited to soda water,
25    cola, fruit juice, vegetable juice, carbonated water, and all
26    other preparations commonly known as soft drinks of  whatever
27    kind  or  description  that  are  contained  in any closed or
28    sealed bottle, can, carton, or container, regardless of size.
29    "Soft drinks" does not include  coffee,  tea,  non-carbonated
30    water,  infant  formula,  milk or milk products as defined in
31    the Grade A Pasteurized Milk and Milk Products Act, or drinks
32    containing 50% or more natural fruit or vegetable juice.
33        Notwithstanding any other provisions of this  Act,  "food
34    for human consumption that is to be consumed off the premises
 
                            -50-           LRB9110257SMdvam06
 1    where  it  is  sold" includes all food sold through a vending
 2    machine, except  soft  drinks  and  food  products  that  are
 3    dispensed  hot  from  a  vending  machine,  regardless of the
 4    location of the vending machine.
 5    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
 6    91-51, eff. 6-30-99.)

 7        (35 ILCS 120/2d) (from Ch. 120, par. 441d)
 8        Sec.  2d.   Tax  prepayment  by  motor fuel retailer. Any
 9    person engaged in the  business  of  selling  motor  fuel  at
10    retail,  as defined in the Motor Fuel Tax Law, and who is not
11    a licensed distributor or supplier, as defined in  the  Motor
12    Fuel  Tax  Law,  shall  prepay  to  his  or  her distributor,
13    supplier, or other reseller of motor fuel a  portion  of  the
14    tax  imposed  by  this  Act  if the distributor, supplier, or
15    other reseller of motor fuel is registered under  Section  2a
16    or  Section  2c  of  this  Act.   The  prepayment requirement
17    provided for in this Section does not apply to liquid propane
18    gas.
19        The Retailers' Occupation Tax paid  to  the  distributor,
20    supplier,  or  other reseller shall be an amount equal to 0.8
21    cents $0.04 per gallon of the motor fuel, except  gasohol  as
22    defined  in Section 2-10 of this Act which shall be an amount
23    equal to 0.6 cents  $0.03  per  gallon,  purchased  from  the
24    distributor,  supplier, or other reseller. If, as a result of
25    the provisions of this amendatory Act  of  the  91st  General
26    Assembly,  the  rate of tax imposed on the sale of motor fuel
27    and gasohol by the Retailers' Occupation Tax Act  returns  to
28    6.25%,  then  the  Retailers'  Occupation  Tax  paid  to  the
29    distributor,  supplier,  or other reseller shall be an amount
30    equal to $0.04 per gallon of the motor fuel,  except  gasohol
31    as  defined  in  Section  2-10  of this Act which shall be an
32    amount  equal  to  $0.03  per  gallon,  purchased  from   the
33    distributor, supplier, or other reseller.
 
                            -51-           LRB9110257SMdvam06
 1        Any  person engaged in the business of selling motor fuel
 2    at retail shall be entitled to a credit against tax due under
 3    this  Act  in  an  amount  equal  to  the  tax  paid  to  the
 4    distributor, supplier, or other reseller.
 5        Every distributor, supplier, or other reseller registered
 6    as provided in Section 2a or Section 2c  of  this  Act  shall
 7    remit  the prepaid tax on all motor fuel that is due from any
 8    person engaged in the business of  selling  at  retail  motor
 9    fuel  with the returns filed under Section 2f or Section 3 of
10    this Act, but the vendors  discount  provided  in  Section  3
11    shall  not  apply  to  the  amount  of  prepaid  tax  that is
12    remitted. Any distributor or supplier who fails  to  properly
13    collect  and  remit the tax shall be liable for the tax.  For
14    purposes of this Section, the prepaid tax is due on  invoiced
15    gallons  sold during a month by the 20th day of the following
16    month.
17    (Source: P.A. 86-1475; 87-14.)

18        (35 ILCS 120/3) (from Ch. 120, par. 442)
19        Sec. 3.  Except as provided in this Section, on or before
20    the twentieth  day  of  each  calendar  month,  every  person
21    engaged in the business of selling tangible personal property
22    at  retail  in this State during the preceding calendar month
23    shall file a return with the Department, stating:
24             1.  The name of the seller;
25             2.  His residence address and  the  address  of  his
26        principal  place  of  business  and  the  address  of the
27        principal place of  business  (if  that  is  a  different
28        address) from which he engages in the business of selling
29        tangible personal property at retail in this State;
30             3.  Total  amount of receipts received by him during
31        the preceding calendar month or quarter, as the case  may
32        be,  from  sales  of tangible personal property, and from
33        services furnished, by him during such preceding calendar
 
                            -52-           LRB9110257SMdvam06
 1        month or quarter;
 2             4.  Total  amount  received  by   him   during   the
 3        preceding  calendar  month  or quarter on charge and time
 4        sales of tangible personal property,  and  from  services
 5        furnished, by him prior to the month or quarter for which
 6        the return is filed;
 7             5.  Deductions allowed by law;
 8             6.  Gross receipts which were received by him during
 9        the  preceding  calendar  month  or  quarter and upon the
10        basis of which the tax is imposed;
11             7.  The amount of credit provided in Section  2d  of
12        this Act;
13             8.  The amount of tax due;
14             9.  The signature of the taxpayer; and
15             10.  Such   other   reasonable  information  as  the
16        Department may require.
17        If a taxpayer fails to sign a return within 30 days after
18    the proper notice and demand for signature by the Department,
19    the return shall be considered valid and any amount shown  to
20    be due on the return shall be deemed assessed.
21        Each  return  shall  be  accompanied  by the statement of
22    prepaid tax issued pursuant to Section 2e for which credit is
23    claimed.
24        A retailer may accept a  Manufacturer's  Purchase  Credit
25    certification  from a purchaser in satisfaction of Use Tax as
26    provided in Section 3-85 of the Use Tax Act if the  purchaser
27    provides the appropriate documentation as required by Section
28    3-85  of  the  Use Tax Act.  A Manufacturer's Purchase Credit
29    certification, accepted by a retailer as provided in  Section
30    3-85  of  the  Use  Tax  Act, may be used by that retailer to
31    satisfy Retailers' Occupation Tax  liability  in  the  amount
32    claimed  in  the  certification,  not  to exceed 6.25% of the
33    receipts subject to tax from a qualifying purchase.
34        The Department may require  returns  to  be  filed  on  a
 
                            -53-           LRB9110257SMdvam06
 1    quarterly  basis.  If so required, a return for each calendar
 2    quarter shall be filed on or before the twentieth day of  the
 3    calendar  month  following  the end of such calendar quarter.
 4    The taxpayer shall also file a return with the Department for
 5    each of the first two months of each calendar quarter, on  or
 6    before  the  twentieth  day  of the following calendar month,
 7    stating:
 8             1.  The name of the seller;
 9             2.  The address of the principal place  of  business
10        from which he engages in the business of selling tangible
11        personal property at retail in this State;
12             3.  The total amount of taxable receipts received by
13        him  during  the  preceding  calendar month from sales of
14        tangible personal property by him during  such  preceding
15        calendar  month,  including receipts from charge and time
16        sales, but less all deductions allowed by law;
17             4.  The amount of credit provided in Section  2d  of
18        this Act;
19             5.  The amount of tax due; and
20             6.  Such   other   reasonable   information  as  the
21        Department may require.
22        If a total amount of less than $1 is payable,  refundable
23    or creditable, such amount shall be disregarded if it is less
24    than  50 cents and shall be increased to $1 if it is 50 cents
25    or more.
26        Beginning October 1, 1993, a taxpayer who has an  average
27    monthly  tax  liability  of  $150,000  or more shall make all
28    payments required by rules of the  Department  by  electronic
29    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
30    has an average monthly tax  liability  of  $100,000  or  more
31    shall  make  all payments required by rules of the Department
32    by electronic funds transfer.  Beginning October 1,  1995,  a
33    taxpayer  who has an average monthly tax liability of $50,000
34    or more shall make all payments  required  by  rules  of  the
 
                            -54-           LRB9110257SMdvam06
 1    Department  by  electronic funds transfer.  Beginning October
 2    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
 3    $200,000 or more shall make all payments required by rules of
 4    the  Department  by  electronic  funds  transfer.   The  term
 5    "annual  tax  liability"  shall  be the sum of the taxpayer's
 6    liabilities under this Act, and under  all  other  State  and
 7    local  occupation  and  use  tax  laws  administered  by  the
 8    Department,  for the immediately preceding calendar year. The
 9    term "average monthly tax liability" shall be the sum of  the
10    taxpayer's  liabilities  under  this Act, and under all other
11    State and local occupation and use tax laws  administered  by
12    the  Department,  for the immediately preceding calendar year
13    divided by 12.
14        Before August 1 of  each  year  beginning  in  1993,  the
15    Department  shall  notify  all  taxpayers  required  to  make
16    payments   by   electronic  funds  transfer.   All  taxpayers
17    required to make payments by electronic funds transfer  shall
18    make  those  payments  for a minimum of one year beginning on
19    October 1.
20        Any taxpayer not required to make payments by  electronic
21    funds transfer may make payments by electronic funds transfer
22    with the permission of the Department.
23        All  taxpayers  required  to  make  payment by electronic
24    funds transfer and any taxpayers  authorized  to  voluntarily
25    make  payments  by electronic funds transfer shall make those
26    payments in the manner authorized by the Department.
27        The Department shall adopt such rules as are necessary to
28    effectuate a program of electronic  funds  transfer  and  the
29    requirements of this Section.
30        Any  amount  which is required to be shown or reported on
31    any return or other document under this Act  shall,  if  such
32    amount  is  not  a  whole-dollar  amount, be increased to the
33    nearest whole-dollar amount in any case where the  fractional
34    part  of  a  dollar is 50 cents or more, and decreased to the
 
                            -55-           LRB9110257SMdvam06
 1    nearest whole-dollar amount where the fractional  part  of  a
 2    dollar is less than 50 cents.
 3        If  the  retailer is otherwise required to file a monthly
 4    return and if the retailer's average monthly tax liability to
 5    the Department does  not  exceed  $200,  the  Department  may
 6    authorize  his returns to be filed on a quarter annual basis,
 7    with the return for January, February and March  of  a  given
 8    year  being due by April 20 of such year; with the return for
 9    April, May and June of a given year being due by July  20  of
10    such  year; with the return for July, August and September of
11    a given year being due by October 20 of such year,  and  with
12    the return for October, November and December of a given year
13    being due by January 20 of the following year.
14        If  the  retailer is otherwise required to file a monthly
15    or quarterly return and if the retailer's average monthly tax
16    liability with  the  Department  does  not  exceed  $50,  the
17    Department may authorize his returns to be filed on an annual
18    basis,  with the return for a given year being due by January
19    20 of the following year.
20        Such quarter annual and annual returns, as  to  form  and
21    substance,  shall  be  subject  to  the  same requirements as
22    monthly returns.
23        Notwithstanding  any  other   provision   in   this   Act
24    concerning  the  time  within  which  a retailer may file his
25    return, in the case of any retailer who ceases to engage in a
26    kind of business  which  makes  him  responsible  for  filing
27    returns  under  this  Act,  such  retailer shall file a final
28    return under this Act with the Department not more  than  one
29    month after discontinuing such business.
30        Where   the  same  person  has  more  than  one  business
31    registered with the Department under  separate  registrations
32    under  this Act, such person may not file each return that is
33    due  as  a  single  return  covering  all   such   registered
34    businesses,  but  shall  file  separate returns for each such
 
                            -56-           LRB9110257SMdvam06
 1    registered business.
 2        In addition, with respect to motor vehicles,  watercraft,
 3    aircraft,  and  trailers  that  are required to be registered
 4    with an agency of this State,  every  retailer  selling  this
 5    kind  of  tangible  personal  property  shall  file, with the
 6    Department, upon a form to be prescribed and supplied by  the
 7    Department,  a separate return for each such item of tangible
 8    personal property  which  the  retailer  sells,  except  that
 9    where,  in  the  same  transaction,  a  retailer of aircraft,
10    watercraft, motor vehicles or trailers  transfers  more  than
11    one aircraft, watercraft, motor vehicle or trailer to another
12    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
13    retailer  for  the  purpose of resale, that seller for resale
14    may report the transfer of all  aircraft,  watercraft,  motor
15    vehicles  or  trailers  involved  in  that transaction to the
16    Department on the same uniform invoice-transaction  reporting
17    return  form.   For  purposes  of  this Section, "watercraft"
18    means a Class 2, Class 3, or Class 4 watercraft as defined in
19    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
20    personal  watercraft,  or  any  boat equipped with an inboard
21    motor.
22        Any retailer who sells only motor  vehicles,  watercraft,
23    aircraft, or trailers that are required to be registered with
24    an  agency  of  this State, so that all retailers' occupation
25    tax liability is required to be reported, and is reported, on
26    such transaction reporting returns and who is  not  otherwise
27    required  to file monthly or quarterly returns, need not file
28    monthly or quarterly returns.  However, those retailers shall
29    be required to file returns on an annual basis.
30        The transaction reporting return, in the  case  of  motor
31    vehicles  or trailers that are required to be registered with
32    an agency of this State, shall be the same  document  as  the
33    Uniform  Invoice referred to in Section 5-402 of The Illinois
34    Vehicle Code and must  show  the  name  and  address  of  the
 
                            -57-           LRB9110257SMdvam06
 1    seller;  the name and address of the purchaser; the amount of
 2    the  selling  price  including  the  amount  allowed  by  the
 3    retailer for traded-in property, if any; the  amount  allowed
 4    by the retailer for the traded-in tangible personal property,
 5    if  any,  to the extent to which Section 1 of this Act allows
 6    an exemption for the value of traded-in property; the balance
 7    payable after deducting  such  trade-in  allowance  from  the
 8    total  selling price; the amount of tax due from the retailer
 9    with respect to such transaction; the amount of tax collected
10    from the purchaser by the retailer on  such  transaction  (or
11    satisfactory  evidence  that  such  tax  is  not  due in that
12    particular instance, if that is claimed to be the fact);  the
13    place  and  date  of the sale; a sufficient identification of
14    the property sold; such other information as is  required  in
15    Section  5-402  of  The Illinois Vehicle Code, and such other
16    information as the Department may reasonably require.
17        The  transaction  reporting  return  in   the   case   of
18    watercraft  or aircraft must show the name and address of the
19    seller; the name and address of the purchaser; the amount  of
20    the  selling  price  including  the  amount  allowed  by  the
21    retailer  for  traded-in property, if any; the amount allowed
22    by the retailer for the traded-in tangible personal property,
23    if any, to the extent to which Section 1 of this  Act  allows
24    an exemption for the value of traded-in property; the balance
25    payable  after  deducting  such  trade-in  allowance from the
26    total selling price; the amount of tax due from the  retailer
27    with respect to such transaction; the amount of tax collected
28    from  the  purchaser  by the retailer on such transaction (or
29    satisfactory evidence that  such  tax  is  not  due  in  that
30    particular  instance, if that is claimed to be the fact); the
31    place and date of the sale, a  sufficient  identification  of
32    the   property  sold,  and  such  other  information  as  the
33    Department may reasonably require.
34        Such transaction reporting  return  shall  be  filed  not
 
                            -58-           LRB9110257SMdvam06
 1    later than 20 days after the day of delivery of the item that
 2    is  being  sold, but may be filed by the retailer at any time
 3    sooner than that if he chooses to  do  so.   The  transaction
 4    reporting  return  and  tax  remittance or proof of exemption
 5    from  the  Illinois  use  tax  may  be  transmitted  to   the
 6    Department  by  way  of the State agency with which, or State
 7    officer with whom the  tangible  personal  property  must  be
 8    titled or registered (if titling or registration is required)
 9    if  the Department and such agency or State officer determine
10    that  this  procedure  will  expedite   the   processing   of
11    applications for title or registration.
12        With each such transaction reporting return, the retailer
13    shall  remit  the  proper  amount of tax due (or shall submit
14    satisfactory evidence that the sale is not taxable if that is
15    the case), to the Department or  its  agents,  whereupon  the
16    Department  shall  issue,  in the purchaser's name, a use tax
17    receipt (or a certificate of exemption if the  Department  is
18    satisfied  that the particular sale is tax exempt) which such
19    purchaser may submit to  the  agency  with  which,  or  State
20    officer  with  whom,  he  must title or register the tangible
21    personal  property  that   is   involved   (if   titling   or
22    registration  is  required)  in  support  of such purchaser's
23    application for an Illinois certificate or other evidence  of
24    title or registration to such tangible personal property.
25        No  retailer's failure or refusal to remit tax under this
26    Act precludes a user, who has paid  the  proper  tax  to  the
27    retailer,  from  obtaining  his certificate of title or other
28    evidence of title or registration (if titling or registration
29    is required) upon satisfying the Department  that  such  user
30    has paid the proper tax (if tax is due) to the retailer.  The
31    Department  shall  adopt  appropriate  rules to carry out the
32    mandate of this paragraph.
33        If the user who would otherwise pay tax to  the  retailer
34    wants  the transaction reporting return filed and the payment
 
                            -59-           LRB9110257SMdvam06
 1    of the tax or proof  of  exemption  made  to  the  Department
 2    before the retailer is willing to take these actions and such
 3    user  has  not  paid  the  tax to the retailer, such user may
 4    certify to the fact of such delay by  the  retailer  and  may
 5    (upon  the  Department  being  satisfied of the truth of such
 6    certification)  transmit  the  information  required  by  the
 7    transaction reporting return and the remittance  for  tax  or
 8    proof  of exemption directly to the Department and obtain his
 9    tax receipt or exemption determination, in  which  event  the
10    transaction  reporting  return  and  tax remittance (if a tax
11    payment was required) shall be credited by the Department  to
12    the  proper  retailer's  account  with  the  Department,  but
13    without  the  2.1%  or  1.75%  discount  provided for in this
14    Section being allowed.  When the user pays the  tax  directly
15    to  the  Department,  he shall pay the tax in the same amount
16    and in the same form in which it would be remitted if the tax
17    had been remitted to the Department by the retailer.
18        Refunds made by the seller during  the  preceding  return
19    period   to  purchasers,  on  account  of  tangible  personal
20    property returned to  the  seller,  shall  be  allowed  as  a
21    deduction  under  subdivision  5  of his monthly or quarterly
22    return,  as  the  case  may  be,  in  case  the  seller   had
23    theretofore  included  the  receipts  from  the  sale of such
24    tangible personal property in a return filed by him  and  had
25    paid  the  tax  imposed  by  this  Act  with  respect to such
26    receipts.
27        Where the seller is a corporation, the  return  filed  on
28    behalf  of such corporation shall be signed by the president,
29    vice-president, secretary or treasurer  or  by  the  properly
30    accredited agent of such corporation.
31        Where  the  seller  is  a  limited liability company, the
32    return filed on behalf of the limited liability company shall
33    be signed by a manager, member, or properly accredited  agent
34    of the limited liability company.
 
                            -60-           LRB9110257SMdvam06
 1        Except  as  provided in this Section, the retailer filing
 2    the return under this Section shall, at the  time  of  filing
 3    such  return, pay to the Department the amount of tax imposed
 4    by this Act less a discount of 2.1% prior to January 1,  1990
 5    and  1.75%  on  and after January 1, 1990, or $5 per calendar
 6    year, whichever is greater, which is allowed to reimburse the
 7    retailer  for  the  expenses  incurred  in  keeping  records,
 8    preparing and filing returns, remitting the tax and supplying
 9    data to the  Department  on  request.   Any  prepayment  made
10    pursuant  to  Section 2d of this Act shall be included in the
11    amount on which such 2.1% or 1.75% discount is computed.   In
12    the  case  of  retailers  who  report  and  pay  the tax on a
13    transaction  by  transaction  basis,  as  provided  in   this
14    Section,  such  discount  shall  be  taken with each such tax
15    remittance instead of when such retailer files  his  periodic
16    return.
17        Before October 1, 2000, if the taxpayer's average monthly
18    tax  liability  to the Department under this Act, the Use Tax
19    Act, the Service Occupation Tax Act, and the Service Use  Tax
20    Act,  excluding  any  liability  for  prepaid sales tax to be
21    remitted in accordance with  Section  2d  of  this  Act,  was
22    $10,000  or  more  during  the  preceding 4 complete calendar
23    quarters, he shall file a return  with  the  Department  each
24    month  by  the 20th day of the month next following the month
25    during which such tax liability is incurred  and  shall  make
26    payments  to  the Department on or before the 7th, 15th, 22nd
27    and last day of the month  during  which  such  liability  is
28    incurred.  On  and  after  October 1, 2000, if the taxpayer's
29    average monthly tax liability to the  Department  under  this
30    Act, the Use Tax Act, the Service Occupation Tax Act, and the
31    Service  Use  Tax  Act,  excluding  any liability for prepaid
32    sales tax to be remitted in accordance  with  Section  2d  of
33    this Act, was $20,000 or more during the preceding 4 complete
34    calendar quarters, he shall file a return with the Department
 
                            -61-           LRB9110257SMdvam06
 1    each  month  by  the 20th day of the month next following the
 2    month during which such tax liability is incurred  and  shall
 3    make  payment  to  the Department on or before the 7th, 15th,
 4    22nd and last day of the month during which such liability is
 5    incurred.  If the month during which such  tax  liability  is
 6    incurred  began  prior to January 1, 1985, each payment shall
 7    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
 8    liability  for  the  month or an amount set by the Department
 9    not to exceed 1/4 of the average  monthly  liability  of  the
10    taxpayer  to  the  Department  for  the  preceding 4 complete
11    calendar quarters (excluding the month of  highest  liability
12    and  the month of lowest liability in such 4 quarter period).
13    If the month during which  such  tax  liability  is  incurred
14    begins  on  or  after January 1, 1985 and prior to January 1,
15    1987, each payment shall be in an amount equal  to  22.5%  of
16    the taxpayer's actual liability for the month or 27.5% of the
17    taxpayer's  liability  for  the  same  calendar  month of the
18    preceding year.  If the month during which such tax liability
19    is incurred begins on or after January 1, 1987 and  prior  to
20    January  1, 1988, each payment shall be in an amount equal to
21    22.5% of the taxpayer's actual liability  for  the  month  or
22    26.25%  of  the  taxpayer's  liability  for the same calendar
23    month of the preceding year.  If the month during which  such
24    tax liability is incurred begins on or after January 1, 1988,
25    and  prior  to January 1, 1989, or begins on or after January
26    1, 1996, each payment shall be in an amount equal to 22.5% of
27    the taxpayer's actual liability for the month or 25%  of  the
28    taxpayer's  liability  for  the  same  calendar  month of the
29    preceding year. If the month during which such tax  liability
30    is  incurred begins on or after January 1, 1989, and prior to
31    January 1, 1996, each payment shall be in an amount equal  to
32    22.5% of the taxpayer's actual liability for the month or 25%
33    of  the  taxpayer's  liability for the same calendar month of
34    the preceding year or 100% of the taxpayer's actual liability
 
                            -62-           LRB9110257SMdvam06
 1    for the quarter monthly reporting period.  The amount of such
 2    quarter monthly payments shall be credited against the  final
 3    tax  liability  of  the  taxpayer's  return  for  that month.
 4    Before October 1, 2000, once applicable, the  requirement  of
 5    the  making  of quarter monthly payments to the Department by
 6    taxpayers having an average monthly tax liability of  $10,000
 7    or  more  as  determined  in  the manner provided above shall
 8    continue until such taxpayer's average monthly  liability  to
 9    the  Department  during  the  preceding  4  complete calendar
10    quarters (excluding the month of highest  liability  and  the
11    month of lowest liability) is less than $9,000, or until such
12    taxpayer's  average  monthly  liability  to the Department as
13    computed  for  each  calendar  quarter  of  the  4  preceding
14    complete  calendar  quarter  period  is  less  than  $10,000.
15    However, if  a  taxpayer  can  show  the  Department  that  a
16    substantial  change  in  the taxpayer's business has occurred
17    which causes the taxpayer  to  anticipate  that  his  average
18    monthly  tax  liability for the reasonably foreseeable future
19    will fall below the $10,000 threshold stated above, then such
20    taxpayer may petition the Department for  a  change  in  such
21    taxpayer's  reporting  status.  On and after October 1, 2000,
22    once applicable, the requirement of  the  making  of  quarter
23    monthly  payments  to  the  Department by taxpayers having an
24    average  monthly  tax  liability  of  $20,000  or   more   as
25    determined  in the manner provided above shall continue until
26    such taxpayer's average monthly liability to  the  Department
27    during  the preceding 4 complete calendar quarters (excluding
28    the month of  highest  liability  and  the  month  of  lowest
29    liability)  is  less  than  $19,000  or until such taxpayer's
30    average monthly liability to the Department as  computed  for
31    each  calendar  quarter  of the 4 preceding complete calendar
32    quarter period is less than $20,000.  However, if a  taxpayer
33    can  show  the  Department  that  a substantial change in the
34    taxpayer's business has occurred which causes the taxpayer to
 
                            -63-           LRB9110257SMdvam06
 1    anticipate that his average monthly  tax  liability  for  the
 2    reasonably  foreseeable  future  will  fall below the $20,000
 3    threshold stated above, then such taxpayer may  petition  the
 4    Department  for a change in such taxpayer's reporting status.
 5    The Department shall change such taxpayer's reporting  status
 6    unless  it  finds  that such change is seasonal in nature and
 7    not likely to be long term.   If  any  such  quarter  monthly
 8    payment  is not paid at the time or in the amount required by
 9    this Section, then the taxpayer shall be liable for penalties
10    and interest on the difference between the minimum amount due
11    as a payment and the amount of such quarter  monthly  payment
12    actually  and timely paid, except insofar as the taxpayer has
13    previously made payments for that month to the Department  in
14    excess  of the minimum payments previously due as provided in
15    this Section. The Department shall make reasonable rules  and
16    regulations  to govern the quarter monthly payment amount and
17    quarter monthly payment dates for taxpayers who file on other
18    than a calendar monthly basis.
19        Without regard to whether a taxpayer is required to  make
20    quarter monthly payments as specified above, any taxpayer who
21    is  required  by  Section 2d of this Act to collect and remit
22    prepaid taxes and has collected prepaid taxes  which  average
23    in  excess  of  $25,000  per  month  during  the  preceding 2
24    complete calendar quarters, shall  file  a  return  with  the
25    Department  as required by Section 2f and shall make payments
26    to the Department on or before the 7th, 15th, 22nd  and  last
27    day of the month during which such liability is incurred.  If
28    the  month  during which such tax liability is incurred began
29    prior to the effective date of this amendatory Act  of  1985,
30    each payment shall be in an amount not less than 22.5% of the
31    taxpayer's  actual  liability under Section 2d.  If the month
32    during which such tax liability  is  incurred  begins  on  or
33    after  January  1,  1986,  each payment shall be in an amount
34    equal to 22.5% of the taxpayer's  actual  liability  for  the
 
                            -64-           LRB9110257SMdvam06
 1    month  or  27.5%  of  the  taxpayer's  liability for the same
 2    calendar month of the preceding calendar year.  If the  month
 3    during  which  such  tax  liability  is incurred begins on or
 4    after January 1, 1987, each payment shall  be  in  an  amount
 5    equal  to  22.5%  of  the taxpayer's actual liability for the
 6    month or 26.25% of the  taxpayer's  liability  for  the  same
 7    calendar  month  of  the  preceding year.  The amount of such
 8    quarter monthly payments shall be credited against the  final
 9    tax  liability  of the taxpayer's return for that month filed
10    under this Section or Section 2f, as the case may  be.   Once
11    applicable,  the requirement of the making of quarter monthly
12    payments to the Department pursuant to this  paragraph  shall
13    continue  until  such  taxpayer's average monthly prepaid tax
14    collections during the preceding 2 complete calendar quarters
15    is $25,000 or less.  If any such quarter monthly  payment  is
16    not  paid at the time or in the amount required, the taxpayer
17    shall  be  liable  for  penalties  and   interest   on   such
18    difference,  except  insofar  as  the taxpayer has previously
19    made payments  for  that  month  in  excess  of  the  minimum
20    payments previously due.
21        If  any  payment provided for in this Section exceeds the
22    taxpayer's liabilities under this Act, the Use Tax  Act,  the
23    Service  Occupation  Tax  Act and the Service Use Tax Act, as
24    shown on an original monthly return, the Department shall, if
25    requested by the taxpayer, issue to  the  taxpayer  a  credit
26    memorandum  no  later than 30 days after the date of payment.
27    The  credit  evidenced  by  such  credit  memorandum  may  be
28    assigned by the taxpayer to a  similar  taxpayer  under  this
29    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
30    Service Use Tax Act, in accordance with reasonable rules  and
31    regulations  to  be prescribed by the Department.  If no such
32    request is made, the taxpayer may credit such excess  payment
33    against  tax  liability  subsequently  to  be remitted to the
34    Department under this Act,  the  Use  Tax  Act,  the  Service
 
                            -65-           LRB9110257SMdvam06
 1    Occupation  Tax Act or the Service Use Tax Act, in accordance
 2    with reasonable  rules  and  regulations  prescribed  by  the
 3    Department.   If  the Department subsequently determined that
 4    all or any part of the credit taken was not actually  due  to
 5    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
 6    shall  be  reduced by 2.1% or 1.75% of the difference between
 7    the credit taken and that actually  due,  and  that  taxpayer
 8    shall   be   liable   for  penalties  and  interest  on  such
 9    difference.
10        If a retailer of motor fuel is entitled to a credit under
11    Section 2d of this Act which exceeds the taxpayer's liability
12    to the Department under this Act  for  the  month  which  the
13    taxpayer  is  filing a return, the Department shall issue the
14    taxpayer a credit memorandum for the excess.
15        Beginning January 1,  1990,  each  month  the  Department
16    shall  pay into the Local Government Tax Fund, a special fund
17    in the State  treasury  which  is  hereby  created,  the  net
18    revenue  realized  for the preceding month from the 1% tax on
19    sales of food for human consumption which is to  be  consumed
20    off  the  premises  where  it  is  sold (other than alcoholic
21    beverages, soft drinks and food which has been  prepared  for
22    immediate  consumption)  and prescription and nonprescription
23    medicines,  drugs,  medical  appliances  and  insulin,  urine
24    testing materials, syringes and needles used by diabetics.
25        Beginning January 1,  1990,  each  month  the  Department
26    shall  pay  into the County and Mass Transit District Fund, a
27    special fund in the State treasury which is  hereby  created,
28    4%  of  the net revenue realized for the preceding month from
29    the 6.25% general rate.
30        Beginning November 1, 2000,  and  so  long  as  the  rate
31    remains  at  1.25%,  each month the Department shall pay into
32    the County and Mass Transit District  Fund  20%  of  the  net
33    revenue  realized for the preceding month from the 1.25% rate
34    on the selling price of motor fuel and gasohol.
 
                            -66-           LRB9110257SMdvam06
 1        Beginning January 1,  1990,  each  month  the  Department
 2    shall  pay  into the Local Government Tax Fund 16% of the net
 3    revenue realized for  the  preceding  month  from  the  6.25%
 4    general  rate  on  the  selling  price  of  tangible personal
 5    property.
 6        Beginning November 1, 2000,  and  so  long  as  the  rate
 7    remains  at  1.25%,  each month the Department shall pay into
 8    the Local Government Tax Fund 80% of the net revenue realized
 9    for the preceding month from the 1.25% rate  on  the  selling
10    price of motor fuel and gasohol.
11        Of the remainder of the moneys received by the Department
12    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
13    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
14    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
15    into the Build Illinois Fund; provided, however, that  if  in
16    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
17    as  the case may be, of the moneys received by the Department
18    and required to be paid into the Build Illinois Fund pursuant
19    to this Act, Section 9 of the Use Tax Act, Section 9  of  the
20    Service  Use Tax Act, and Section 9 of the Service Occupation
21    Tax Act, such Acts being hereinafter called  the  "Tax  Acts"
22    and  such  aggregate  of 2.2% or 3.8%, as the case may be, of
23    moneys being hereinafter called the "Tax Act Amount", and (2)
24    the amount transferred to the Build Illinois  Fund  from  the
25    State  and Local Sales Tax Reform Fund shall be less than the
26    Annual Specified Amount (as hereinafter defined),  an  amount
27    equal  to  the  difference shall be immediately paid into the
28    Build  Illinois  Fund  from  other  moneys  received  by  the
29    Department pursuant to the Tax Acts;  the  "Annual  Specified
30    Amount"  means  the  amounts specified below for fiscal years
31    1986 through 1993:
32             Fiscal Year              Annual Specified Amount
33                 1986                       $54,800,000
34                 1987                       $76,650,000
 
                            -67-           LRB9110257SMdvam06
 1                 1988                       $80,480,000
 2                 1989                       $88,510,000
 3                 1990                       $115,330,000
 4                 1991                       $145,470,000
 5                 1992                       $182,730,000
 6                 1993                      $206,520,000;
 7    and means the Certified Annual Debt Service  Requirement  (as
 8    defined  in Section 13 of the Build Illinois Bond Act) or the
 9    Tax Act Amount, whichever is greater, for  fiscal  year  1994
10    and  each  fiscal year thereafter; and further provided, that
11    if on the last business day of any month the sum of  (1)  the
12    Tax  Act  Amount  required  to  be  deposited  into the Build
13    Illinois Bond Account in the Build Illinois Fund during  such
14    month  and  (2)  the amount transferred to the Build Illinois
15    Fund from the State and Local Sales  Tax  Reform  Fund  shall
16    have  been  less than 1/12 of the Annual Specified Amount, an
17    amount equal to the difference shall be immediately paid into
18    the Build Illinois Fund from other  moneys  received  by  the
19    Department  pursuant  to the Tax Acts; and, further provided,
20    that in no  event  shall  the  payments  required  under  the
21    preceding proviso result in aggregate payments into the Build
22    Illinois Fund pursuant to this clause (b) for any fiscal year
23    in  excess  of  the greater of (i) the Tax Act Amount or (ii)
24    the Annual  Specified  Amount  for  such  fiscal  year.   The
25    amounts payable into the Build Illinois Fund under clause (b)
26    of the first sentence in this paragraph shall be payable only
27    until such time as the aggregate amount on deposit under each
28    trust   indenture   securing  Bonds  issued  and  outstanding
29    pursuant to the Build Illinois Bond Act is sufficient, taking
30    into account any future investment income, to fully  provide,
31    in  accordance  with such indenture, for the defeasance of or
32    the payment  of  the  principal  of,  premium,  if  any,  and
33    interest  on  the  Bonds secured by such indenture and on any
34    Bonds expected to be issued thereafter and all fees and costs
 
                            -68-           LRB9110257SMdvam06
 1    payable  with  respect  thereto,  all  as  certified  by  the
 2    Director of the  Bureau  of  the  Budget.   If  on  the  last
 3    business  day  of  any  month  in which Bonds are outstanding
 4    pursuant to the Build Illinois Bond  Act,  the  aggregate  of
 5    moneys  deposited  in  the Build Illinois Bond Account in the
 6    Build Illinois Fund in such month  shall  be  less  than  the
 7    amount  required  to  be  transferred  in such month from the
 8    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 9    Retirement  and  Interest  Fund pursuant to Section 13 of the
10    Build Illinois Bond Act, an amount equal to  such  deficiency
11    shall  be  immediately paid from other moneys received by the
12    Department pursuant to the Tax Acts  to  the  Build  Illinois
13    Fund;  provided,  however, that any amounts paid to the Build
14    Illinois Fund in any fiscal year pursuant  to  this  sentence
15    shall be deemed to constitute payments pursuant to clause (b)
16    of  the first sentence of this paragraph and shall reduce the
17    amount otherwise payable for such  fiscal  year  pursuant  to
18    that  clause  (b).   The  moneys  received  by the Department
19    pursuant to this Act and required to be  deposited  into  the
20    Build  Illinois  Fund  are  subject  to the pledge, claim and
21    charge set forth in Section 12 of  the  Build  Illinois  Bond
22    Act.
23        Subject  to  payment  of  amounts into the Build Illinois
24    Fund as  provided  in  the  preceding  paragraph  or  in  any
25    amendment  thereto hereafter enacted, the following specified
26    monthly  installment  of  the   amount   requested   in   the
27    certificate  of  the  Chairman  of  the Metropolitan Pier and
28    Exposition Authority provided  under  Section  8.25f  of  the
29    State  Finance  Act,  but not in excess of sums designated as
30    "Total Deposit", shall be deposited  in  the  aggregate  from
31    collections  under Section 9 of the Use Tax Act, Section 9 of
32    the Service Use Tax Act, Section 9 of the Service  Occupation
33    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
34    into the  McCormick  Place  Expansion  Project  Fund  in  the
 
                            -69-           LRB9110257SMdvam06
 1    specified fiscal years.
 2             Fiscal Year                   Total Deposit
 3                 1993                            $0
 4                 1994                        53,000,000
 5                 1995                        58,000,000
 6                 1996                        61,000,000
 7                 1997                        64,000,000
 8                 1998                        68,000,000
 9                 1999                        71,000,000
10                 2000                        75,000,000
11                 2001                        80,000,000
12                 2002                        84,000,000
13                 2003                        89,000,000
14                 2004                        93,000,000
15                 2005                        97,000,000
16                 2006                       102,000,000
17                 2007                       108,000,000
18                 2008                       115,000,000
19                 2009                       120,000,000
20                 2010                       126,000,000
21                 2011                       132,000,000
22                 2012                       138,000,000
23                 2013 and                   145,000,000
24        each fiscal year
25        thereafter that bonds
26        are outstanding under
27        Section 13.2 of the
28        Metropolitan Pier and
29        Exposition Authority
30        Act, but not after fiscal year 2029.
31        Beginning  July 20, 1993 and in each month of each fiscal
32    year thereafter, one-eighth of the amount  requested  in  the
33    certificate  of  the  Chairman  of  the Metropolitan Pier and
34    Exposition Authority for that fiscal year,  less  the  amount
 
                            -70-           LRB9110257SMdvam06
 1    deposited  into the McCormick Place Expansion Project Fund by
 2    the State Treasurer in the respective month under  subsection
 3    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 4    Authority Act, plus cumulative deficiencies in  the  deposits
 5    required  under  this  Section for previous months and years,
 6    shall be deposited into the McCormick Place Expansion Project
 7    Fund, until the full amount requested for  the  fiscal  year,
 8    but  not  in  excess  of the amount specified above as "Total
 9    Deposit", has been deposited.
10        Subject to payment of amounts  into  the  Build  Illinois
11    Fund  and the McCormick Place Expansion Project Fund pursuant
12    to the preceding  paragraphs  or  in  any  amendment  thereto
13    hereafter  enacted,  each month the Department shall pay into
14    the Local  Government  Distributive  Fund  0.4%  of  the  net
15    revenue  realized for the preceding month from the 5% general
16    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
17    preceding  month from the 6.25% general rate, as the case may
18    be, on the selling price of tangible personal property  which
19    amount  shall,  subject  to  appropriation, be distributed as
20    provided in Section 2 of the State Revenue Sharing  Act.   No
21    payments or distributions pursuant to this paragraph shall be
22    made  if  the  tax  imposed  by  this  Act on photoprocessing
23    products is declared unconstitutional,  or  if  the  proceeds
24    from  such  tax  are  unavailable for distribution because of
25    litigation.
26        Subject to payment of amounts  into  the  Build  Illinois
27    Fund,  the McCormick Place Expansion Project to the preceding
28    paragraphs or in any amendments  thereto  hereafter  enacted,
29    beginning  July  1, 1993, the Department shall each month pay
30    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
31    revenue  realized  for  the  preceding  month  from the 6.25%
32    general rate  on  the  selling  price  of  tangible  personal
33    property.
34        Of the remainder of the moneys received by the Department
 
                            -71-           LRB9110257SMdvam06
 1    pursuant  to  this  Act,  75%  thereof shall be paid into the
 2    State Treasury and 25% shall be reserved in a special account
 3    and used only for the transfer to the Common School  Fund  as
 4    part of the monthly transfer from the General Revenue Fund in
 5    accordance with Section 8a of the State Finance Act.
 6        The  Department  may,  upon  separate written notice to a
 7    taxpayer, require the taxpayer to prepare and file  with  the
 8    Department  on a form prescribed by the Department within not
 9    less than 60 days after  receipt  of  the  notice  an  annual
10    information  return for the tax year specified in the notice.
11    Such  annual  return  to  the  Department  shall  include   a
12    statement  of  gross receipts as shown by the retailer's last
13    Federal income tax return.  If  the  total  receipts  of  the
14    business  as reported in the Federal income tax return do not
15    agree with the gross receipts reported to the  Department  of
16    Revenue for the same period, the retailer shall attach to his
17    annual  return  a  schedule showing a reconciliation of the 2
18    amounts and the reasons for the difference.   The  retailer's
19    annual  return to the Department shall also disclose the cost
20    of goods sold by the retailer during the year covered by such
21    return, opening and closing inventories  of  such  goods  for
22    such year, costs of goods used from stock or taken from stock
23    and  given  away  by  the  retailer during such year, payroll
24    information of the retailer's business during such  year  and
25    any  additional  reasonable  information which the Department
26    deems would be helpful in determining  the  accuracy  of  the
27    monthly,  quarterly  or annual returns filed by such retailer
28    as provided for in this Section.
29        If the annual information return required by this Section
30    is not filed when and as  required,  the  taxpayer  shall  be
31    liable as follows:
32             (i)  Until  January  1,  1994, the taxpayer shall be
33        liable for a penalty equal to 1/6 of 1% of  the  tax  due
34        from such taxpayer under this Act during the period to be
 
                            -72-           LRB9110257SMdvam06
 1        covered  by  the annual return for each month or fraction
 2        of a month until such return is filed  as  required,  the
 3        penalty  to  be assessed and collected in the same manner
 4        as any other penalty provided for in this Act.
 5             (ii)  On and after January  1,  1994,  the  taxpayer
 6        shall be liable for a penalty as described in Section 3-4
 7        of the Uniform Penalty and Interest Act.
 8        The chief executive officer, proprietor, owner or highest
 9    ranking  manager  shall sign the annual return to certify the
10    accuracy of the information contained therein.    Any  person
11    who  willfully  signs  the  annual return containing false or
12    inaccurate  information  shall  be  guilty  of  perjury   and
13    punished  accordingly.   The annual return form prescribed by
14    the Department  shall  include  a  warning  that  the  person
15    signing the return may be liable for perjury.
16        The  provisions  of this Section concerning the filing of
17    an annual information return do not apply to a  retailer  who
18    is  not required to file an income tax return with the United
19    States Government.
20        As soon as possible after the first day  of  each  month,
21    upon   certification   of  the  Department  of  Revenue,  the
22    Comptroller shall order transferred and the  Treasurer  shall
23    transfer  from the General Revenue Fund to the Motor Fuel Tax
24    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
25    realized  under  this  Act  for  the  second preceding month.
26    Beginning April 1, 2000, this transfer is no longer  required
27    and shall not be made.
28        Net  revenue  realized  for  a month shall be the revenue
29    collected by the State pursuant to this Act, less the  amount
30    paid  out  during  that  month  as  refunds  to taxpayers for
31    overpayment of liability.
32        For greater simplicity of administration,  manufacturers,
33    importers  and  wholesalers whose products are sold at retail
34    in Illinois by numerous retailers, and who wish to do so, may
 
                            -73-           LRB9110257SMdvam06
 1    assume the responsibility for accounting and  paying  to  the
 2    Department  all  tax  accruing under this Act with respect to
 3    such sales, if the retailers who are  affected  do  not  make
 4    written objection to the Department to this arrangement.
 5        Any  person  who  promotes,  organizes,  provides  retail
 6    selling  space  for concessionaires or other types of sellers
 7    at the Illinois State Fair, DuQuoin State Fair, county fairs,
 8    local fairs, art shows, flea markets and similar  exhibitions
 9    or  events,  including  any  transient merchant as defined by
10    Section 2 of the Transient Merchant Act of 1987, is  required
11    to  file  a  report with the Department providing the name of
12    the merchant's business, the name of the  person  or  persons
13    engaged  in  merchant's  business,  the permanent address and
14    Illinois Retailers Occupation Tax Registration Number of  the
15    merchant,  the  dates  and  location  of  the event and other
16    reasonable information that the Department may require.   The
17    report must be filed not later than the 20th day of the month
18    next  following  the month during which the event with retail
19    sales was held.  Any  person  who  fails  to  file  a  report
20    required  by  this  Section commits a business offense and is
21    subject to a fine not to exceed $250.
22        Any person engaged in the business  of  selling  tangible
23    personal property at retail as a concessionaire or other type
24    of  seller  at  the  Illinois  State  Fair, county fairs, art
25    shows, flea markets and similar exhibitions or events, or any
26    transient merchants, as defined by Section 2 of the Transient
27    Merchant Act of 1987, may be required to make a daily  report
28    of  the  amount of such sales to the Department and to make a
29    daily payment of the full amount of tax due.  The  Department
30    shall  impose  this requirement when it finds that there is a
31    significant risk of loss of revenue to the State at  such  an
32    exhibition  or  event.   Such  a  finding  shall  be based on
33    evidence that a  substantial  number  of  concessionaires  or
34    other  sellers  who  are  not  residents  of Illinois will be
 
                            -74-           LRB9110257SMdvam06
 1    engaging  in  the  business  of  selling  tangible   personal
 2    property  at  retail  at  the  exhibition  or event, or other
 3    evidence of a significant risk of  loss  of  revenue  to  the
 4    State.  The Department shall notify concessionaires and other
 5    sellers  affected  by the imposition of this requirement.  In
 6    the  absence  of  notification   by   the   Department,   the
 7    concessionaires and other sellers shall file their returns as
 8    otherwise required in this Section.
 9    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
10    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
11    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

12        Section 22.   The  Motor  Fuel  Tax  Law  is  amended  by
13    changing Section 13a as follows:

14        (35 ILCS 505/13a) (from Ch. 120, par. 429a)
15        Sec.  13a.   (1)  A tax is hereby imposed upon the use of
16    motor fuel upon highways of this State  by  commercial  motor
17    vehicles.  The  tax  shall be comprised of 2 parts.  Part (a)
18    shall be at the rate established by Section 2 of this Act, as
19    heretofore or hereafter amended.  Part (b) shall  be  at  the
20    rate  established by subsection (2) of this Section as now or
21    hereafter amended.
22        (2)  A rate shall be established by the Department as  of
23    January 1  of each year using the average "selling price", as
24    defined  in  the Retailers' Occupation Tax Act, per gallon of
25    motor fuel sold in this State during the previous  12  months
26    and multiplying it by 1.25% 6 1/4% to determine the cents per
27    gallon  rate.  If,  as  a  result  of  the provisions of this
28    amendatory Act of the 91st General Assembly, the rate of  tax
29    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
30    Retailers' Occupation Tax Act returns to 6.25%, then  a  rate
31    shall  be  established  by the Department as of January 1  of
32    each year using the average "selling price",  as  defined  in
 
                            -75-           LRB9110257SMdvam06
 1    the  Retailers'  Occupation Tax Act, per gallon of motor fuel
 2    sold  in  this  State  during  the  previous  12  months  and
 3    multiplying it by 6.25% to determine  the  cents  per  gallon
 4    rate.
 5    (Source: P.A. 88-480.)

 6        Section  25.   The  Counties  Code is amended by changing
 7    Sections 5-1006, 5-1006.5, 5-1007, and 5-1035.1 as follows:

 8        (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
 9        Sec. 5-1006.  Home Rule County Retailers' Occupation  Tax
10    Law.  Any  county  that  is a home rule unit may impose a tax
11    upon all persons engaged in the business of selling  tangible
12    personal  property,  other  than an item of tangible personal
13    property titled or registered with an agency of this  State's
14    government,  at  retail  in  the county on the gross receipts
15    from such sales made in the course  of  their  business.   If
16    imposed,  this  tax shall only be imposed in 1/4% increments.
17    On and after September 1, 1991, this additional tax  may  not
18    be  imposed  on the sales of food for human consumption which
19    is to be consumed off the premises where it  is  sold  (other
20    than alcoholic beverages, soft drinks and food which has been
21    prepared  for  immediate  consumption)  and  prescription and
22    nonprescription  medicines,  drugs,  medical  appliances  and
23    insulin, urine testing materials, syringes and  needles  used
24    by  diabetics. The tax imposed by a home rule county pursuant
25    to this Section and all civil penalties that may be  assessed
26    as an incident thereof shall be collected and enforced by the
27    State Department of Revenue.  The certificate of registration
28    that  is  issued  by  the  Department to a retailer under the
29    Retailers' Occupation Tax Act shall permit  the  retailer  to
30    engage  in  a business that is taxable under any ordinance or
31    resolution  enacted  pursuant   to   this   Section   without
32    registering   separately   with  the  Department  under  such
 
                            -76-           LRB9110257SMdvam06
 1    ordinance  or  resolution  or  under   this   Section.    The
 2    Department  shall  have  full power to administer and enforce
 3    this  Section;  to  collect  all  taxes  and  penalties   due
 4    hereunder;  to dispose of taxes and penalties so collected in
 5    the manner hereinafter provided; and to determine all  rights
 6    to  credit  memoranda  arising  on  account  of the erroneous
 7    payment of tax or penalty hereunder.  In  the  administration
 8    of,  and  compliance  with,  this Section, the Department and
 9    persons who are subject to this Section shall have  the  same
10    rights,  remedies, privileges, immunities, powers and duties,
11    and  be  subject  to  the  same   conditions,   restrictions,
12    limitations,  penalties  and definitions of terms, and employ
13    the same modes of procedure, as are prescribed in Sections 1,
14    1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65  (in
15    respect  to  all provisions therein other than the State rate
16    of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,  5i,  5j,  5k,
17    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 of the
18    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
19    Penalty  and  Interest  Act,  as fully as if those provisions
20    were set forth herein.
21        No tax may be imposed by a home rule county  pursuant  to
22    this Section unless the county also imposes a tax at the same
23    rate pursuant to Section 5-1007.
24        A  home rule county that has not imposed a tax under this
25    Section on the sale of  motor  fuel  or  gasohol  before  the
26    effective  date  of  this  amendatory Act of the 91st General
27    Assembly shall not impose such a tax on or after that date. A
28    home rule county that has imposed a tax under this Section on
29    the sale of motor fuel or gasohol before the  effective  date
30    of this amendatory Act of the 91st General Assembly shall not
31    increase  the rate of the tax on or after that date. If, as a
32    result of the provisions of this amendatory Act of  the  91st
33    General  Assembly,  the  rate  of  tax imposed on the sale of
34    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
 
                            -77-           LRB9110257SMdvam06
 1    returns to 6.25%, then the prohibition against imposing a tax
 2    on  the  sale  of  motor fuel and gasohol and the prohibition
 3    against an increase in the rate of any tax already imposed on
 4    the sale of motor fuel and gasohol are no longer  in  effect.
 5    This  amendatory Act of the 91st General Assembly is a denial
 6    and limitation of home rule powers to  tax  under  subsection
 7    (g) of Section 6 of Article VII of the Illinois Constitution.
 8        Persons  subject  to  any  tax  imposed  pursuant  to the
 9    authority granted in this Section  may  reimburse  themselves
10    for  their  seller's  tax  liability  hereunder by separately
11    stating such tax as an additional charge, which charge may be
12    stated in combination, in a single  amount,  with  State  tax
13    which  sellers are required to collect under the Use Tax Act,
14    pursuant to such bracket  schedules  as  the  Department  may
15    prescribe.
16        Whenever  the  Department determines that a refund should
17    be 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 the  notification
21    from  the  Department.  The refund shall be paid by the State
22    Treasurer out of the home rule county  retailers'  occupation
23    tax fund.
24        The  Department  shall  forthwith  pay  over to the State
25    Treasurer, ex officio, as trustee, all  taxes  and  penalties
26    collected  hereunder.   On  or  before  the  25th day of each
27    calendar month, the Department shall prepare and  certify  to
28    the  Comptroller  the disbursement of stated sums of money to
29    named counties, the counties to be those from which retailers
30    have paid taxes or  penalties  hereunder  to  the  Department
31    during the second preceding calendar month.  The amount to be
32    paid to each county shall be the amount (not including credit
33    memoranda)  collected  hereunder  during the second preceding
34    calendar  month  by  the  Department  plus  an   amount   the
 
                            -78-           LRB9110257SMdvam06
 1    Department determines is necessary to offset any amounts that
 2    were  erroneously  paid  to  a different taxing body, and not
 3    including an amount equal  to  the  amount  of  refunds  made
 4    during  the second preceding calendar month by the Department
 5    on behalf of such county, and not including any amount  which
 6    the  Department determines is necessary to offset any amounts
 7    which were payable  to  a  different  taxing  body  but  were
 8    erroneously paid to the county. Within 10 days after receipt,
 9    by  the Comptroller, of the disbursement certification to the
10    counties provided for in this Section  to  be  given  to  the
11    Comptroller  by  the  Department, the Comptroller shall cause
12    the  orders  to  be  drawn  for  the  respective  amounts  in
13    accordance   with   the   directions   contained    in    the
14    certification.
15        In addition to the disbursement required by the preceding
16    paragraph,  an allocation shall be made in March of each year
17    to  each  county  that  received  more   than   $500,000   in
18    disbursements  under the preceding paragraph in the preceding
19    calendar year.  The allocation shall be in an amount equal to
20    the average monthly distribution made  to  each  such  county
21    under  the  preceding paragraph during the preceding calendar
22    year (excluding the  2  months  of  highest  receipts).   The
23    distribution  made  in  March  of each year subsequent to the
24    year in  which  an  allocation  was  made  pursuant  to  this
25    paragraph and the preceding paragraph shall be reduced by the
26    amount  allocated  and  disbursed under this paragraph in the
27    preceding calendar year.  The Department  shall  prepare  and
28    certify  to  the Comptroller for disbursement the allocations
29    made in accordance with this paragraph.
30        For the purpose of  determining  the  local  governmental
31    unit  whose tax is applicable, a retail sale by a producer of
32    coal or other mineral mined in Illinois is a sale  at  retail
33    at  the  place  where  the  coal  or  other  mineral mined in
34    Illinois is extracted from the earth.   This  paragraph  does
 
                            -79-           LRB9110257SMdvam06
 1    not  apply  to  coal or other mineral when it is delivered or
 2    shipped by the seller to the purchaser  at  a  point  outside
 3    Illinois  so  that the sale is exempt under the United States
 4    Constitution as a sale in interstate or foreign commerce.
 5        Nothing in this Section shall be construed to authorize a
 6    county to impose a tax upon the privilege of engaging in  any
 7    business  which  under  the Constitution of the United States
 8    may not be made the subject of taxation by this State.
 9        An ordinance or resolution imposing  or  discontinuing  a
10    tax hereunder or effecting a change in the rate thereof shall
11    be  adopted  and  a  certified  copy  thereof  filed with the
12    Department on or before the first day of June, whereupon  the
13    Department  shall  proceed  to  administer  and  enforce this
14    Section as of the first day of September next following  such
15    adoption  and filing. Beginning January 1, 1992, an ordinance
16    or resolution imposing or discontinuing the tax hereunder  or
17    effecting a change in the rate thereof shall be adopted and a
18    certified copy thereof filed with the Department on or before
19    the first day of July, whereupon the Department shall proceed
20    to administer and enforce this Section as of the first day of
21    October  next  following  such adoption and filing. Beginning
22    January 1, 1993,  an  ordinance  or  resolution  imposing  or
23    discontinuing  the tax hereunder or effecting a change in the
24    rate thereof shall be adopted and a  certified  copy  thereof
25    filed  with  the  Department  on  or  before the first day of
26    October, whereupon the Department shall proceed to administer
27    and enforce this Section as of the first day of January  next
28    following  such adoption and filing. Beginning April 1, 1998,
29    an ordinance or resolution imposing or discontinuing the  tax
30    hereunder  or  effecting  a  change in the rate thereof shall
31    either (i) be adopted and a certified copy thereof filed with
32    the Department on or before the first day of April, whereupon
33    the Department shall proceed to administer and  enforce  this
34    Section  as  of  the  first  day  of  July next following the
 
                            -80-           LRB9110257SMdvam06
 1    adoption and filing; or (ii) be adopted and a certified  copy
 2    thereof  filed with the Department on or before the first day
 3    of  October,  whereupon  the  Department  shall  proceed   to
 4    administer  and  enforce  this Section as of the first day of
 5    January next following the adoption and filing.
 6        When certifying the amount of a monthly disbursement to a
 7    county under this Section, the Department shall  increase  or
 8    decrease  such  amount  by  an amount necessary to offset any
 9    misallocation of previous disbursements.  The  offset  amount
10    shall be the amount erroneously disbursed within the previous
11    6 months from the time a misallocation is discovered.
12        This  Section shall be known and may be cited as the Home
13    Rule County Retailers' Occupation Tax Law.
14    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

15        (55 ILCS 5/5-1006.5)
16        Sec. 5-1006.5.  Special County Retailers' Occupation  Tax
17    For Public Safety.
18        (a)  The county board of any county may impose a tax upon
19    all  persons  engaged  in  the  business  of selling tangible
20    personal property, other than  personal  property  titled  or
21    registered  with  an  agency  of  this State's government, at
22    retail in the county on the gross  receipts  from  the  sales
23    made  in the course of business to provide revenue to be used
24    exclusively for public safety purposes in that county,  if  a
25    proposition for the tax has been submitted to the electors of
26    that county and approved by a majority of those voting on the
27    question.   If  imposed,  this  tax  shall be imposed only in
28    one-quarter percent increments.  By  resolution,  the  county
29    board  may  order  the  proposition  to  be  submitted at any
30    election.  The county clerk shall certify the question to the
31    proper election authority, who shall submit  the  proposition
32    at an election in accordance with the general election law.
33        The  proposition  shall be in substantially the following
 
                            -81-           LRB9110257SMdvam06
 1    form:
 2             "Shall (name of county) be authorized  to  impose  a
 3        public  safety  tax  at the rate of .... upon all persons
 4        engaged in the  business  of  selling  tangible  personal
 5        property  at  retail in the county on gross receipts from
 6        the sales made in the course of their business to be used
 7        for crime prevention, detention, and other public  safety
 8        purposes?"
 9    Votes  shall  be recorded as Yes or No.  If a majority of the
10    electors voting on the proposition vote in favor of  it,  the
11    county may impose the tax.
12        This  additional  tax  may not be imposed on the sales of
13    food for human consumption that is to  be  consumed  off  the
14    premises  where  it  is sold (other than alcoholic beverages,
15    soft drinks, and food which has been prepared  for  immediate
16    consumption) and prescription and non-prescription medicines,
17    drugs,   medical   appliances   and  insulin,  urine  testing
18    materials, syringes, and needles used by diabetics.  The  tax
19    imposed  by  a  county  under  this  Section  and  all  civil
20    penalties  that  may  be  assessed  as an incident of the tax
21    shall be collected and enforced by the Illinois Department of
22    Revenue.  The certificate of registration that is  issued  by
23    the  Department to a retailer under the Retailers' Occupation
24    Tax Act shall permit the retailer to  engage  in  a  business
25    that  is  taxable  without  registering  separately  with the
26    Department  under  an  ordinance  or  resolution  under  this
27    Section.  The Department has full  power  to  administer  and
28    enforce  this Section, to collect all taxes and penalties due
29    under this Section, to dispose  of  taxes  and  penalties  so
30    collected  in  the  manner  provided  in this Section, and to
31    determine all rights to credit memoranda arising  on  account
32    of  the  erroneous  payment  of  a  tax or penalty under this
33    Section.  In the administration of and compliance  with  this
34    Section,  the  Department and persons who are subject to this
 
                            -82-           LRB9110257SMdvam06
 1    Section shall (i) have the same rights, remedies, privileges,
 2    immunities, powers, and duties, (ii) be subject to  the  same
 3    conditions,   restrictions,   limitations,   penalties,   and
 4    definitions  of  terms,  and  (iii)  employ the same modes of
 5    procedure as are prescribed in Sections 1, 1a, 1a-1, 1d,  1e,
 6    1f,  1i,  1j,  1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
 7    all provisions contained in those  Sections  other  than  the
 8    State  rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
 9    provisions  relating  to  transaction  returns  and   quarter
10    monthly  payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
11    5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,  and  13
12    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
13    Uniform Penalty and Interest Act as if those provisions  were
14    set forth in this Section.
15        A county that has not imposed a tax under this subsection
16    on  the  sale  of  motor fuel or gasohol before the effective
17    date of this amendatory Act  of  the  91st  General  Assembly
18    shall  not impose such a tax on or after that date.  A county
19    that has imposed a tax under this subsection on the  sale  of
20    motor  fuel  or  gasohol  before  the  effective date of this
21    amendatory  Act  of  the  91st  General  Assembly  shall  not
22    increase the rate of the tax on or after that date. If, as  a
23    result  of  the provisions of this amendatory Act of the 91st
24    General Assembly, the rate of tax  imposed  on  the  sale  of
25    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
26    returns to 6.25%, then the prohibition against imposing a tax
27    on the sale of motor fuel and  gasohol  and  the  prohibition
28    against an increase in the rate of any tax already imposed on
29    the sale of motor fuel and gasohol are no longer in effect.
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
 
                            -83-           LRB9110257SMdvam06
 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,
 
                            -84-           LRB9110257SMdvam06
 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 2 (except that the
 5    reference to State in the definition of supplier  maintaining
 6    a place of business in this State shall mean the county), 2a,
 7    2b,  2c, 3 through 3-50 (in respect to all provisions therein
 8    other than the  State  rate  of  tax),  4  (except  that  the
 9    reference  to  the  State  shall  be  to the county), 5, 7, 8
10    (except that the jurisdiction to which the  tax  shall  be  a
11    debt  to  the extent indicated in that Section 8 shall be the
12    county), 9  (except  as  to  the  disposition  of  taxes  and
13    penalties  collected),  10,  11,  12  (except  the  reference
14    therein  to Section 2b of the Retailers' Occupation Tax Act),
15    13 (except that any reference to the  State  shall  mean  the
16    county),  Section  15,  16,  17, 18, 19 and 20 of the Service
17    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
18    Interest Act, as fully as if those provisions were set  forth
19    herein.
20        A county that has not imposed a tax under this subsection
21    on  the  selling  price  of  motor fuel or gasohol before the
22    effective date of this amendatory Act  of  the  91st  General
23    Assembly  shall  not impose such a tax on or after that date.
24    A county that has imposed a tax under this subsection on  the
25    selling  price  of motor fuel or gasohol before the effective
26    date of this amendatory Act  of  the  91st  General  Assembly
27    shall not increase the rate of the tax on or after that date.
28    If,  as  a result of the provisions of this amendatory Act of
29    the 91st General Assembly, the rate of  tax  imposed  on  the
30    sale  of  motor fuel and gasohol by the Retailers' Occupation
31    Tax Act  returns  to  6.25%,  then  the  prohibition  against
32    imposing  a tax on the sale of motor fuel and gasohol and the
33    prohibition against an  increase  in  the  rate  of  any  tax
34    already  imposed on the sale of motor fuel and gasohol are no
 
                            -85-           LRB9110257SMdvam06
 1    longer in effect.
 2        Persons subject to any tax imposed  under  the  authority
 3    granted in this subsection may reimburse themselves for their
 4    serviceman's  tax  liability by separately stating the tax as
 5    an  additional  charge,  which  charge  may  be   stated   in
 6    combination,   in  a  single  amount,  with  State  tax  that
 7    servicemen are authorized to collect under  the  Service  Use
 8    Tax  Act,  in  accordance  with such bracket schedules as the
 9    Department may prescribe.
10        Whenever the Department determines that a  refund  should
11    be  made  under  this  subsection  to  a  claimant instead of
12    issuing a credit memorandum, the Department shall notify  the
13    State  Comptroller,  who  shall cause the warrant to be drawn
14    for the amount specified, and to the  person  named,  in  the
15    notification  from  the Department.  The refund shall be paid
16    by the State  Treasurer  out  of  the  County  Public  Safety
17    Retailers' Occupation Fund.
18        Nothing   in   this  subsection  shall  be  construed  to
19    authorize the county to impose a tax upon  the  privilege  of
20    engaging  in any business which under the Constitution of the
21    United States may not be made the subject of taxation by  the
22    State.
23        (c)  The  Department  shall  immediately  pay over to the
24    State Treasurer,  ex  officio,  as  trustee,  all  taxes  and
25    penalties  collected  under this Section to be deposited into
26    the County Public  Safety  Retailers'  Occupation  Tax  Fund,
27    which  shall  be an unappropriated trust fund held outside of
28    the State treasury.  On  or  before  the  25th  day  of  each
29    calendar  month,  the Department shall prepare and certify to
30    the Comptroller the disbursement of stated sums of  money  to
31    the   counties  from  which  retailers  have  paid  taxes  or
32    penalties to  the  Department  during  the  second  preceding
33    calendar  month.   The amount to be paid to each county shall
34    be the amount  (not  including  credit  memoranda)  collected
 
                            -86-           LRB9110257SMdvam06
 1    under this Section during the second preceding calendar month
 2    by the Department plus an amount the Department determines is
 3    necessary to offset any amounts that were erroneously paid to
 4    a  different  taxing  body,  and  not including (i) an amount
 5    equal to  the  amount  of  refunds  made  during  the  second
 6    preceding  calendar  month by the Department on behalf of the
 7    county and (ii) any amount that the Department determines  is
 8    necessary  to  offset  any  amounts  that  were  payable to a
 9    different taxing  body  but  were  erroneously  paid  to  the
10    county.   Within  10 days after receipt by the Comptroller of
11    the disbursement certification to the counties  provided  for
12    in  this  Section  to  be  given  to  the  Comptroller by the
13    Department, the Comptroller shall  cause  the  orders  to  be
14    drawn   for   the   respective  amounts  in  accordance  with
15    directions contained in the certification.
16        In addition to the disbursement required by the preceding
17    paragraph, an allocation shall be made in March of each  year
18    to   each   county   that  received  more  than  $500,000  in
19    disbursements under the preceding paragraph in the  preceding
20    calendar year.  The allocation shall be in an amount equal to
21    the  average  monthly  distribution  made to each such county
22    under the preceding paragraph during the  preceding  calendar
23    year  (excluding  the  2  months  of  highest receipts).  The
24    distribution made in March of each  year  subsequent  to  the
25    year  in  which  an  allocation  was  made  pursuant  to this
26    paragraph and the preceding paragraph shall be reduced by the
27    amount allocated and disbursed under this  paragraph  in  the
28    preceding  calendar  year.   The Department shall prepare and
29    certify to the Comptroller for disbursement  the  allocations
30    made in accordance with this paragraph.
31        (d)  For   the   purpose   of   determining   the   local
32    governmental unit whose tax is applicable, a retail sale by a
33    producer  of  coal  or another mineral mined in Illinois is a
34    sale at retail at the place where the coal or  other  mineral
 
                            -87-           LRB9110257SMdvam06
 1    mined   in  Illinois  is  extracted  from  the  earth.   This
 2    paragraph does not apply to coal or another mineral  when  it
 3    is  delivered  or shipped by the seller to the purchaser at a
 4    point outside Illinois so that the sale is exempt  under  the
 5    United States Constitution as a sale in interstate or foreign
 6    commerce.
 7        (e)  Nothing  in  this  Section  shall  be  construed  to
 8    authorize  a  county  to  impose  a tax upon the privilege of
 9    engaging in any business that under the Constitution  of  the
10    United States may not be made the subject of taxation by this
11    State.
12        (e-5)  If  a county imposes a tax under this Section, the
13    county board may, by ordinance, discontinue or lower the rate
14    of the tax.  If the county  board  lowers  the  tax  rate  or
15    discontinues the tax, a referendum must be held in accordance
16    with  subsection (a) of this Section in order to increase the
17    rate of the tax or to reimpose the discontinued tax.
18        (f)  Beginning April 1, 1998, the results of any election
19    authorizing a proposition to impose a tax under this  Section
20    or  effecting  a  change in the rate of tax, or any ordinance
21    lowering  the  rate  or  discontinuing  the  tax,  shall   be
22    certified  by  the  county  clerk and filed with the Illinois
23    Department of Revenue either (i) on or before the  first  day
24    of   April,   whereupon   the  Department  shall  proceed  to
25    administer and enforce the tax as of the first  day  of  July
26    next following the filing; or (ii) on or before the first day
27    of   October,  whereupon  the  Department  shall  proceed  to
28    administer and enforce the tax as of the first day of January
29    next following the filing.
30        (g)  When certifying the amount of a monthly disbursement
31    to a county under this Section, the Department shall increase
32    or decrease the amounts by an amount necessary to offset  any
33    miscalculation  of previous disbursements.  The offset amount
34    shall be the amount erroneously disbursed within the previous
 
                            -88-           LRB9110257SMdvam06
 1    6 months from the time a miscalculation is discovered.
 2        (h)  This Section may be cited  as  the  "Special  County
 3    Occupation Tax For Public Safety Law".
 4        (i)  For   purposes  of  this  Section,  "public  safety"
 5    includes  but  is  not  limited  to  fire  fighting,  police,
 6    medical, ambulance, or other emergency services.
 7        (j)  This amendatory Act of the 91st General Assembly  is
 8    a  denial  and  limitation  of  home rule powers to tax under
 9    subsection (g) of Section 6 of Article VII  of  the  Illinois
10    Constitution.
11    (Source:  P.A.  89-107,  eff.  1-1-96;  89-718,  eff. 3-7-97;
12    90-190, eff. 7-24-97;  90-267,  eff.  7-30-97;  90-552,  eff.
13    12-12-97;   90-562,  eff.  12-16-97;  90-655,  eff.  7-30-98;
14    90-689, eff. 7-31-98.)

15        (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
16        Sec. 5-1007.  Home Rule  County  Service  Occupation  Tax
17    Law.  The  corporate  authorities  of  a home rule county may
18    impose a tax upon all persons engaged, in such county, in the
19    business of making sales of service at the same rate  of  tax
20    imposed  pursuant  to  Section 5-1006 of the selling price of
21    all tangible personal property transferred by such servicemen
22    either in the form of tangible personal property  or  in  the
23    form  of  real estate as an incident to a sale of service. If
24    imposed, such tax shall only be imposed in  1/4%  increments.
25    On  and  after September 1, 1991, this additional tax may not
26    be imposed on the sales of food for human  consumption  which
27    is  to  be  consumed off the premises where it is sold (other
28    than alcoholic beverages, soft drinks and food which has been
29    prepared for  immediate  consumption)  and  prescription  and
30    nonprescription  medicines,  drugs,  medical  appliances  and
31    insulin,  urine  testing materials, syringes and needles used
32    by diabetics. The tax imposed by a home rule county  pursuant
33    to  this Section and all civil penalties that may be assessed
 
                            -89-           LRB9110257SMdvam06
 1    as an incident thereof shall be collected and enforced by the
 2    State Department of Revenue. The certificate of  registration
 3    which  is  issued  by  the Department to a retailer under the
 4    Retailers' Occupation Tax Act or under the Service Occupation
 5    Tax Act shall permit such registrant to engage in a  business
 6    which  is  taxable  under any ordinance or resolution enacted
 7    pursuant to this Section without registering separately  with
 8    the  Department  under  such ordinance or resolution or under
 9    this Section.   The  Department  shall  have  full  power  to
10    administer and enforce this Section; to collect all taxes and
11    penalties due hereunder; to dispose of taxes and penalties so
12    collected   in   the  manner  hereinafter  provided;  and  to
13    determine all rights to credit memoranda arising  on  account
14    of the erroneous payment of tax or penalty hereunder.  In the
15    administration  of,  and  compliance  with,  this Section the
16    Department and persons who are subject to this Section  shall
17    have  the  same  rights,  remedies,  privileges,  immunities,
18    powers  and  duties,  and  be subject to the same conditions,
19    restrictions,  limitations,  penalties  and  definitions   of
20    terms,  and  employ  the  same  modes  of  procedure,  as are
21    prescribed in Sections  1a-1,  2,  2a,  3  through  3-50  (in
22    respect  to  all provisions therein other than the State rate
23    of tax), 4 (except that the reference to the State  shall  be
24    to  the taxing county), 5, 7, 8 (except that the jurisdiction
25    to which the tax shall be a debt to the extent  indicated  in
26    that  Section  8 shall be the taxing county), 9 (except as to
27    the disposition of taxes and penalties collected, and  except
28    that  the returned merchandise credit for this county tax may
29    not be taken against any State tax), 10, 11, 12  (except  the
30    reference  therein to Section 2b of the Retailers' Occupation
31    Tax Act), 13 (except that any reference to  the  State  shall
32    mean  the  taxing county), the first paragraph of Section 15,
33    16, 17, 18, 19 and 20 of the Service Occupation Tax  Act  and
34    Section 3-7 of the Uniform Penalty and Interest Act, as fully
 
                            -90-           LRB9110257SMdvam06
 1    as if those provisions were set forth herein.
 2        No  tax  may be imposed by a home rule county pursuant to
 3    this Section unless such county also imposes  a  tax  at  the
 4    same rate pursuant to Section 5-1006.
 5        A  home rule county that has not imposed a tax under this
 6    Section on the selling price of motor fuel or gasohol  before
 7    the effective date of this amendatory Act of the 91st General
 8    Assembly shall not impose such a tax on or after that date. A
 9    home rule county that has imposed a tax under this Section on
10    the  sale  of motor fuel or gasohol before the effective date
11    of this amendatory Act of the 91st General Assembly shall not
12    increase the rate of the tax on or after that date. If, as  a
13    result  of  the provisions of this amendatory Act of the 91st
14    General Assembly, the rate of tax  imposed  on  the  sale  of
15    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
16    returns to 6.25%, then the prohibition against imposing a tax
17    on the sale of motor fuel and  gasohol  and  the  prohibition
18    against an increase in the rate of any tax already imposed on
19    the  sale  of motor fuel and gasohol are no longer in effect.
20    This amendatory Act of the 91st General Assembly is a  denial
21    and  limitation  of  home rule powers to tax under subsection
22    (g) of Section 6 of Article VII of the Illinois Constitution.
23        Persons subject  to  any  tax  imposed  pursuant  to  the
24    authority  granted  in  this Section may reimburse themselves
25    for their serviceman'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 servicemen are authorized to collect under the  Service
29    Use  Tax  Act,  pursuant  to  such  bracket  schedules as the
30    Department may prescribe.
31        Whenever the Department determines that a  refund  should
32    be  made  under this Section to a claimant instead of issuing
33    credit memorandum, the  Department  shall  notify  the  State
34    Comptroller,  who  shall  cause the order to be drawn for the
 
                            -91-           LRB9110257SMdvam06
 1    amount  specified,  and  to  the  person   named,   in   such
 2    notification  from  the Department. Such refund shall be paid
 3    by the State Treasurer out of the home rule county retailers'
 4    occupation 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 suppliers
11    and  servicemen have paid taxes or penalties hereunder to the
12    Department during the second preceding calendar  month.   The
13    amount  to  be  paid  to each county shall be the amount (not
14    including credit memoranda) collected  hereunder  during  the
15    second  preceding  calendar  month by the Department, and not
16    including an amount equal  to  the  amount  of  refunds  made
17    during  the second preceding calendar month by the Department
18    on behalf of such county.  Within 10 days after  receipt,  by
19    the  Comptroller,  of  the  disbursement certification to the
20    counties provided for in this Section  to  be  given  to  the
21    Comptroller  by  the  Department, the Comptroller shall cause
22    the  orders  to  be  drawn  for  the  respective  amounts  in
23    accordance   with   the   directions   contained   in    such
24    certification.
25        In addition to the disbursement required by the preceding
26    paragraph,  an  allocation shall be made in each year to each
27    county which received more  than  $500,000  in  disbursements
28    under the preceding paragraph in the preceding calendar year.
29    The  allocation  shall  be  in an amount equal to the average
30    monthly distribution made  to  each  such  county  under  the
31    preceding   paragraph  during  the  preceding  calendar  year
32    (excluding  the  2  months   of   highest   receipts).    The
33    distribution  made  in  March  of each year subsequent to the
34    year in  which  an  allocation  was  made  pursuant  to  this
 
                            -92-           LRB9110257SMdvam06
 1    paragraph and the preceding paragraph shall be reduced by the
 2    amount  allocated  and  disbursed under this paragraph in the
 3    preceding calendar year.  The Department  shall  prepare  and
 4    certify  to  the Comptroller for disbursement the allocations
 5    made in accordance with this paragraph.
 6        Nothing in this Section shall be construed to authorize a
 7    county to impose a tax upon the privilege of engaging in  any
 8    business  which  under  the Constitution of the United States
 9    may not be made the subject of taxation by this State.
10        An ordinance or resolution imposing  or  discontinuing  a
11    tax hereunder or effecting a change in the rate thereof shall
12    be  adopted  and  a  certified  copy  thereof  filed with the
13    Department on or before the first day of June, whereupon  the
14    Department  shall  proceed  to  administer  and  enforce this
15    Section as of the first day of September next following  such
16    adoption  and filing. Beginning January 1, 1992, an ordinance
17    or resolution imposing or discontinuing the tax hereunder  or
18    effecting a change in the rate thereof shall be adopted and a
19    certified copy thereof filed with the Department on or before
20    the first day of July, whereupon the Department shall proceed
21    to administer and enforce this Section as of the first day of
22    October  next  following  such adoption and filing. Beginning
23    January 1, 1993,  an  ordinance  or  resolution  imposing  or
24    discontinuing  the tax hereunder or effecting a change in the
25    rate thereof shall be adopted and a  certified  copy  thereof
26    filed  with  the  Department  on  or  before the first day of
27    October, whereupon the Department shall proceed to administer
28    and enforce this Section as of the first day of January  next
29    following such adoption and filing.  Beginning April 1, 1998,
30    an  ordinance or resolution imposing or discontinuing the tax
31    hereunder or effecting a change in  the  rate  thereof  shall
32    either (i) be adopted and a certified copy thereof filed with
33    the Department on or before the first day of April, whereupon
34    the  Department  shall proceed to administer and enforce this
 
                            -93-           LRB9110257SMdvam06
 1    Section as of the  first  day  of  July  next  following  the
 2    adoption  and filing; or (ii) be adopted and a certified copy
 3    thereof filed with the Department on or before the first  day
 4    of   October,  whereupon  the  Department  shall  proceed  to
 5    administer and enforce this Section as of the  first  day  of
 6    January next following the adoption and filing.
 7        This  Section shall be known and may be cited as the Home
 8    Rule County Service Occupation Tax Law.
 9    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

10        (55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1)
11        Sec. 5-1035.1.  County Motor Fuel  Tax  Law.  The  county
12    board  of the counties of DuPage, Kane and McHenry may, by an
13    ordinance or resolution adopted by an affirmative vote  of  a
14    majority  of  the  members elected or appointed to the county
15    board, impose a tax upon all persons engaged in the county in
16    the business of selling  motor  fuel,  as  now  or  hereafter
17    defined  in  the  Motor  Fuel  Tax  Law,  at  retail  for the
18    operation of motor vehicles upon public highways or  for  the
19    operation  of  recreational  watercraft  upon waterways. Kane
20    County may exempt diesel fuel from the tax  imposed  pursuant
21    to  this  Section.   The  tax  may  be  imposed, in half-cent
22    increments, at a rate  not  exceeding 4 cents per  gallon  of
23    motor  fuel  sold at retail within the county for the purpose
24    of use or consumption and not for the purpose of resale.  The
25    proceeds  from the tax shall be used by the county solely for
26    the purpose of operating, constructing and  improving  public
27    highways  and  waterways,  and  acquiring  real  property and
28    right-of-ways for public highways and  waterways  within  the
29    county imposing the tax.
30        A  county  that  has not imposed a tax under this Section
31    before the effective date of this amendatory Act of the  91st
32    General Assembly shall not impose such a tax on or after that
33    date.   A  county  that  has imposed a tax under this Section
 
                            -94-           LRB9110257SMdvam06
 1    before the effective date of this amendatory Act of the  91st
 2    General Assembly shall not increase the rate of the tax on or
 3    after  that  date.  If, as a result of the provisions of this
 4    amendatory Act of the 91st General Assembly, the rate of  tax
 5    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
 6    Retailers' Occupation Tax Act  returns  to  6.25%,  then  the
 7    prohibition  against imposing a tax on the sale of motor fuel
 8    and gasohol and the prohibition against an  increase  in  the
 9    rate of any tax already imposed on the sale of motor fuel and
10    gasohol are no longer in effect.
11        A  tax  imposed  pursuant  to this Section, and all civil
12    penalties that may be assessed as an incident thereof,  shall
13    be  administered,  collected  and  enforced  by  the Illinois
14    Department of Revenue in the same manner as the  tax  imposed
15    under  the Retailers' Occupation Tax Act, as now or hereafter
16    amended, insofar as may be practicable; except  that  in  the
17    event of a conflict with the provisions of this Section, this
18    Section  shall  control. The Department of Revenue shall have
19    full power:  to  administer  and  enforce  this  Section;  to
20    collect  all taxes and penalties due hereunder; to dispose of
21    taxes and penalties so collected in  the  manner  hereinafter
22    provided;  and  to  determine  all rights to credit memoranda
23    arising on account of the erroneous payment of tax or penalty
24    hereunder.
25        Whenever the Department determines that a refund shall be
26    made under this Section to a claimant instead  of  issuing  a
27    credit  memorandum,  the  Department  shall  notify the State
28    Comptroller, who shall cause the order to be  drawn  for  the
29    amount   specified,   and   to   the  person  named,  in  the
30    notification from the Department. The refund shall be paid by
31    the State Treasurer out of the County Option Motor  Fuel  Tax
32    Fund.
33        The  Department  shall  forthwith  pay  over to the State
34    Treasurer, ex-officio, as trustee, all  taxes  and  penalties
 
                            -95-           LRB9110257SMdvam06
 1    collected hereunder, which shall be deposited into the County
 2    Option  Motor  Fuel  Tax  Fund,  a  special fund in the State
 3    Treasury which is hereby created. On or before the  25th  day
 4    of  each  calendar  month,  the  Department shall prepare and
 5    certify to the State Comptroller the disbursement  of  stated
 6    sums of money to named counties for which taxpayers have paid
 7    taxes  or  penalties  hereunder  to the Department during the
 8    second preceding calendar month. The amount  to  be  paid  to
 9    each  county  shall  be  the  amount  (not  including  credit
10    memoranda)  collected  hereunder  from  retailers  within the
11    county during the second  preceding  calendar  month  by  the
12    Department,  but  not including an amount equal to the amount
13    of refunds made during the second preceding calendar month by
14    the Department on behalf  of  the  county;  less  the  amount
15    expended  during the second preceding month by the Department
16    pursuant to appropriation from the County Option  Motor  Fuel
17    Tax  Fund  for  the  administration  and  enforcement of this
18    Section, which appropriation shall not  exceed  $200,000  for
19    fiscal  year  1990  and,  for each year thereafter, shall not
20    exceed 2% of the amount  deposited  into  the  County  Option
21    Motor Fuel Tax Fund during the preceding fiscal year.
22        Nothing in this Section shall be construed to authorize a
23    county  to impose a tax upon the privilege of engaging in any
24    business which under the Constitution of  the  United  States
25    may not be made the subject of taxation by this State.
26        An  ordinance  or  resolution imposing a tax hereunder or
27    effecting a change in the rate thereof shall be effective  on
28    the first day of the second calendar month next following the
29    month  in  which the ordinance or resolution is adopted and a
30    certified copy  thereof  is  filed  with  the  Department  of
31    Revenue,   whereupon  the Department of Revenue shall proceed
32    to administer and enforce  this  Section  on  behalf  of  the
33    county   as  of  the  effective  date  of  the  ordinance  or
34    resolution. Upon a change in rate of a tax levied  hereunder,
 
                            -96-           LRB9110257SMdvam06
 1    or  upon  the  discontinuance of the tax, the county board of
 2    the county shall, on or not  later  than  5  days  after  the
 3    effective  date  of the ordinance or resolution discontinuing
 4    the tax or effecting  a  change  in  rate,  transmit  to  the
 5    Department  of  Revenue  a certified copy of the ordinance or
 6    resolution effecting the change or discontinuance.
 7        This Section shall be known  and  may  be  cited  as  the
 8    County Motor Fuel Tax Law.
 9    (Source: P.A. 86-1028; 87-289.)

10        Section  30.   The  Illinois Municipal Code is amended by
11    changing  Sections  8-11-1,  8-11-1.1,  8-11-5,  8-11-6,  and
12    8-11-15 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
 
                            -97-           LRB9110257SMdvam06
 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        A home rule municipality that has not imposed a tax under
32    this  Section on the sale of motor fuel or gasohol before the
33    effective date of this amendatory Act  of  the  91st  General
34    Assembly shall not impose such a tax on or after that date. A
 
                            -98-           LRB9110257SMdvam06
 1    home  rule  municipality  that  has  imposed a tax under this
 2    Section on the sale of  motor  fuel  or  gasohol  before  the
 3    effective  date  of  this  amendatory Act of the 91st General
 4    Assembly shall not increase the rate of the tax on  or  after
 5    that  date.  If,  as  a  result  of  the  provisions  of this
 6    amendatory Act of the 91st General Assembly, the rate of  tax
 7    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
 8    Retailers' Occupation Tax Act  returns  to  6.25%,  then  the
 9    prohibition  against imposing a tax on the sale of motor fuel
10    and gasohol and the prohibition against an  increase  in  the
11    rate of any tax already imposed on the sale of motor fuel and
12    gasohol  are  no longer in effect. This amendatory Act of the
13    91st General Assembly is a denial and limitation of home rule
14    powers to tax under subsection (g) of Section  6  of  Article
15    VII of the Illinois Constitution.
16        Persons  subject  to  any tax imposed under the authority
17    granted in this Section may reimburse  themselves  for  their
18    seller's  tax  liability hereunder by separately stating that
19    tax as an additional charge, which charge may  be  stated  in
20    combination, in a single amount, with State tax which sellers
21    are  required  to  collect under the Use Tax Act, pursuant to
22    such bracket schedules as the Department may prescribe.
23        Whenever the Department determines that a  refund  should
24    be made under this Section to a claimant instead of issuing a
25    credit  memorandum,  the  Department  shall  notify the State
26    Comptroller, who shall cause the order to be  drawn  for  the
27    amount  specified and to the person named in the notification
28    from the Department. The refund shall be paid  by  the  State
29    Treasurer   out   of   the  home  rule  municipal  retailers'
30    occupation tax fund.
31        The Department shall immediately pay over  to  the  State
32    Treasurer,  ex  officio,  as trustee, all taxes and penalties
33    collected hereunder.  On or  before  the  25th  day  of  each
34    calendar  month,  the Department shall prepare and certify to
 
                            -99-           LRB9110257SMdvam06
 1    the Comptroller the disbursement of stated sums of  money  to
 2    named  municipalities,  the  municipalities  to be those from
 3    which retailers have paid taxes or penalties hereunder to the
 4    Department during the second preceding  calendar  month.  The
 5    amount  to  be  paid to each municipality shall be the amount
 6    (not including credit memoranda) collected  hereunder  during
 7    the second preceding calendar month by the Department plus an
 8    amount  the  Department determines is necessary to offset any
 9    amounts that were erroneously  paid  to  a  different  taxing
10    body,  and  not  including  an  amount equal to the amount of
11    refunds made during the second preceding  calendar  month  by
12    the  Department  on  behalf  of  such  municipality,  and not
13    including  any  amount  that  the  Department  determines  is
14    necessary to offset  any  amounts  that  were  payable  to  a
15    different  taxing  body  but  were  erroneously  paid  to the
16    municipality. Within 10 days after receipt by the Comptroller
17    of  the  disbursement  certification  to  the  municipalities
18    provided for in this Section to be given to  the  Comptroller
19    by  the Department, the Comptroller shall cause the orders to
20    be drawn for the respective amounts in  accordance  with  the
21    directions contained in the certification.
22        In addition to the disbursement required by the preceding
23    paragraph   and   in  order  to  mitigate  delays  caused  by
24    distribution procedures, an allocation shall,  if  requested,
25    be  made  within  10  days  after  January  14,  1991, and in
26    November  of  1991  and  each  year   thereafter,   to   each
27    municipality  that  received  more  than  $500,000 during the
28    preceding fiscal year,  (July  1  through  June  30)  whether
29    collected  by the municipality or disbursed by the Department
30    as required by this Section. Within 10 days after January 14,
31    1991,   participating   municipalities   shall   notify   the
32    Department in writing of their  intent  to  participate.   In
33    addition,   for   the   initial  distribution,  participating
34    municipalities shall certify to the  Department  the  amounts
 
                            -100-          LRB9110257SMdvam06
 1    collected  by  the municipality for each month under its home
 2    rule occupation and service occupation tax during the  period
 3    July 1, 1989 through June 30, 1990.  The allocation within 10
 4    days  after  January 14, 1991, shall be in an amount equal to
 5    the monthly average of these amounts, excluding the 2  months
 6    of  highest  receipts.  The monthly average for the period of
 7    July 1, 1990 through June 30,  1991  will  be  determined  as
 8    follows:  the amounts collected by the municipality under its
 9    home  rule  occupation  and service occupation tax during the
10    period of July 1,  1990  through  September  30,  1990,  plus
11    amounts   collected  by  the  Department  and  paid  to  such
12    municipality through June 30, 1991, excluding the 2 months of
13    highest receipts.  The monthly average  for  each  subsequent
14    period  of July 1 through June 30 shall be an amount equal to
15    the monthly distribution made to each such municipality under
16    the preceding paragraph during this period, excluding  the  2
17    months   of  highest  receipts.   The  distribution  made  in
18    November 1991  and each year thereafter under this  paragraph
19    and  the  preceding  paragraph shall be reduced by the amount
20    allocated and disbursed under this paragraph in the preceding
21    period of July 1 through  June  30.    The  Department  shall
22    prepare  and  certify to the Comptroller for disbursement the
23    allocations made in accordance with this paragraph.
24        For the purpose of  determining  the  local  governmental
25    unit  whose tax is applicable, a retail sale by a producer of
26    coal or other mineral mined in Illinois is a sale  at  retail
27    at  the  place  where  the  coal  or  other  mineral mined in
28    Illinois is extracted from the earth.   This  paragraph  does
29    not  apply  to  coal or other mineral when it is delivered or
30    shipped by the seller to the purchaser  at  a  point  outside
31    Illinois  so  that the sale is exempt under the United States
32    Constitution as a sale in interstate or foreign commerce.
33        Nothing in this Section shall be construed to authorize a
34    municipality to impose a tax upon the privilege  of  engaging
 
                            -101-          LRB9110257SMdvam06
 1    in  any  business  which under the Constitution of the United
 2    States may not be made the subject of taxation by this State.
 3        An ordinance or resolution imposing  or  discontinuing  a
 4    tax hereunder or effecting a change in the rate thereof shall
 5    be  adopted  and  a  certified  copy  thereof  filed with the
 6    Department on or before the first day of June, whereupon  the
 7    Department  shall  proceed  to  administer  and  enforce this
 8    Section as of the first day of September next  following  the
 9    adoption  and filing. Beginning January 1, 1992, an ordinance
10    or resolution imposing or discontinuing the tax hereunder  or
11    effecting a change in the rate thereof shall be adopted and a
12    certified copy thereof filed with the Department on or before
13    the first day of July, whereupon the Department shall proceed
14    to administer and enforce this Section as of the first day of
15    October  next  following  such adoption and filing. Beginning
16    January 1, 1993,  an  ordinance  or  resolution  imposing  or
17    discontinuing  the tax hereunder or effecting a change in the
18    rate thereof shall be adopted and a  certified  copy  thereof
19    filed  with  the  Department  on  or  before the first day of
20    October, whereupon the Department shall proceed to administer
21    and enforce this Section as of the first day of January  next
22    following  the  adoption  and filing. However, a municipality
23    located in a county with a population in excess of  3,000,000
24    that  elected  to  become  a  home  rule  unit at the general
25    primary election in 1994 may adopt an ordinance or resolution
26    imposing the tax under this Section and file a certified copy
27    of the ordinance or resolution  with  the  Department  on  or
28    before  July  1,  1994.  The Department shall then proceed to
29    administer and enforce this Section as of  October  1,  1994.
30    Beginning  April 1, 1998, an ordinance or resolution imposing
31    or discontinuing the tax hereunder or effecting a  change  in
32    the  rate thereof shall either (i) be adopted and a certified
33    copy thereof filed with the Department on or before the first
34    day of April,  whereupon  the  Department  shall  proceed  to
 
                            -102-          LRB9110257SMdvam06
 1    administer  and  enforce  this Section as of the first day of
 2    July next following the  adoption  and  filing;  or  (ii)  be
 3    adopted   and   a  certified  copy  thereof  filed  with  the
 4    Department on or before the first day of  October,  whereupon
 5    the  Department  shall proceed to administer and enforce this
 6    Section as of the first day of  January  next  following  the
 7    adoption and filing.
 8        When certifying the amount of a monthly disbursement to a
 9    municipality   under   this  Section,  the  Department  shall
10    increase or decrease the amount by  an  amount  necessary  to
11    offset  any  misallocation  of  previous  disbursements.  The
12    offset  amount  shall  be  the  amount  erroneously disbursed
13    within the previous 6 months from the time a misallocation is
14    discovered.
15        Any  unobligated  balance  remaining  in  the   Municipal
16    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
17    fund was abolished by Public Act 85-1135, and all receipts of
18    municipal tax as a result  of  audits  of  liability  periods
19    prior  to  January  1,  1990,  shall  be  paid into the Local
20    Government Tax Fund for  distribution  as  provided  by  this
21    Section  prior  to  the  enactment of Public Act 85-1135. All
22    receipts of municipal tax as a result of  an  assessment  not
23    arising from an audit, for liability periods prior to January
24    1, 1990, shall be paid into the Local Government Tax Fund for
25    distribution before July 1, 1990, as provided by this Section
26    prior  to  the  enactment  of  Public Act 85-1135; and on and
27    after July 1, 1990, all such receipts shall be distributed as
28    provided in Section 6z-18 of the State Finance Act.
29        As used in this Section, "municipal"  and  "municipality"
30    means  a  city,  village  or  incorporated town, including an
31    incorporated town that has superseded a civil township.
32        This Section shall be known and may be cited as the  Home
33    Rule Municipal Retailers' Occupation Tax Act.
34    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
                            -103-          LRB9110257SMdvam06
 1        (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
 2        Sec.  8-11-1.1.   Non-home  rule  municipalities; use and
 3    occupation imposition of taxes.
 4        (a)  The  corporate  authorities  of  a   non-home   rule
 5    municipality  may,  upon  approval  of  the  electors  of the
 6    municipality pursuant to  subsection  (b)  of  this  Section,
 7    impose   by  ordinance  or  resolution  the  1/2  of  1%  tax
 8    authorized in Sections 8-11-1.3,  8-11-1.4  and  8-11-1.5  of
 9    this Act.
10        A  municipality  that has not imposed a tax on motor fuel
11    or gasohol authorized in  Sections  8-11-1.3,  8-11-1.4,  and
12    8-11-1.5  before the effective date of this amendatory Act of
13    the 91st General Assembly shall not impose such a tax  on  or
14    after  that  date.  A  municipality that has imposed a tax on
15    motor  fuel  or  gasohol  authorized  in  Sections  8-11-1.3,
16    8-11-1.4, and 8-11-1.5 before  the  effective  date  of  this
17    amendatory  Act  of  the  91st  General  Assembly  shall  not
18    increase  the rate of the tax on or after that date. If, as a
19    result of the provisions of this amendatory Act of  the  91st
20    General  Assembly,  the  rate  of  tax imposed on the sale of
21    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
22    returns to 6.25%, then the prohibition against imposing a tax
23    on  the  sale  of  motor fuel and gasohol and the prohibition
24    against an increase in the rate of any tax already imposed on
25    the sale of motor fuel and gasohol are no longer in effect.
26        (b)  The corporate authorities of the municipality may by
27    ordinance or  resolution  call  for  the  submission  to  the
28    electors  of  the  municipality   the question of whether the
29    municipality shall impose such tax.  Such question  shall  be
30    certified by the municipal clerk to the election authority in
31    accordance  with  Section 28-5 of the Election Code and shall
32    be in a form in accordance with Section 16-7 of the  Election
33    Code.
34        If  a majority of the electors in the municipality voting
 
                            -104-          LRB9110257SMdvam06
 1    upon the question vote in the affirmative, such tax shall  be
 2    imposed.
 3        An  ordinance  or  resolution  imposing the 1/2 of 1% tax
 4    hereunder or discontinuing the same shall be  adopted  and  a
 5    certified  copy  thereof,  together with a certification that
 6    the ordinance or resolution received referendum  approval  in
 7    the  case  of  the  imposition  of  such  tax, filed with the
 8    Department of Revenue, on or before the first  day  of  June,
 9    whereupon  the  Department  shall  proceed  to administer and
10    enforce the additional tax or to discontinue the tax, as  the
11    case  may be, as of the first day of September next following
12    such adoption and  filing.  Beginning  January  1,  1992,  an
13    ordinance  or  resolution  imposing  or discontinuing the tax
14    hereunder shall be adopted and a certified copy thereof filed
15    with the Department on or  before  the  first  day  of  July,
16    whereupon  the  Department  shall  proceed  to administer and
17    enforce this Section as of the  first  day  of  October  next
18    following  such  adoption  and  filing.  Beginning January 1,
19    1993, an ordinance or resolution  imposing  or  discontinuing
20    the  tax  hereunder  shall  be  adopted  and a certified copy
21    thereof filed with the Department on or before the first  day
22    of   October,  whereupon  the  Department  shall  proceed  to
23    administer and enforce this Section as of the  first  day  of
24    January  next  following such adoption and filing. A non-home
25    rule municipality may file a certified copy of  an  ordinance
26    or  resolution,  with  a  certification that the ordinance or
27    resolution received referendum approval in the  case  of  the
28    imposition  of  the  tax,  with the Department of Revenue, as
29    required under this Section, only after October 2, 2000.
30    (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

31        (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
32        Sec. 8-11-5.  Home Rule Municipal Service Occupation  Tax
33    Act.   The  corporate authorities of a home rule municipality
 
                            -105-          LRB9110257SMdvam06
 1    may  impose  a  tax  upon  all  persons  engaged,   in   such
 2    municipality,  in  the business of making sales of service at
 3    the same rate of tax imposed pursuant to Section  8-11-1,  of
 4    the   selling   price   of  all  tangible  personal  property
 5    transferred by such servicemen either in the form of tangible
 6    personal property or  in  the  form  of  real  estate  as  an
 7    incident  to  a  sale of service.  If imposed, such tax shall
 8    only be imposed in 1/4% increments. On and after September 1,
 9    1991, this additional tax may not be imposed on the sales  of
10    food  for  human  consumption which is to be consumed off the
11    premises where it is sold (other  than  alcoholic  beverages,
12    soft  drinks  and  food which has been prepared for immediate
13    consumption) and prescription and nonprescription  medicines,
14    drugs,   medical   appliances   and  insulin,  urine  testing
15    materials, syringes and needles used by  diabetics.  The  tax
16    imposed  by a home rule municipality pursuant to this Section
17    and all civil penalties that may be assessed as  an  incident
18    thereof   shall  be  collected  and  enforced  by  the  State
19    Department of Revenue. The certificate of registration  which
20    is   issued  by  the  Department  to  a  retailer  under  the
21    Retailers' Occupation Tax Act or under the Service Occupation
22    Tax Act shall permit such registrant to engage in a  business
23    which  is  taxable  under any ordinance or resolution enacted
24    pursuant to this Section without registering separately  with
25    the  Department  under  such ordinance or resolution or under
26    this Section.   The  Department  shall  have  full  power  to
27    administer and enforce this Section; to collect all taxes and
28    penalties due hereunder; to dispose of taxes and penalties so
29    collected   in   the  manner  hereinafter  provided,  and  to
30    determine all rights to credit memoranda arising  on  account
31    of  the erroneous payment of tax or penalty hereunder. In the
32    administration of, and  compliance  with,  this  Section  the
33    Department  and persons who are subject to this Section shall
34    have  the  same  rights,  remedies,  privileges,  immunities,
 
                            -106-          LRB9110257SMdvam06
 1    powers and duties, and be subject  to  the  same  conditions,
 2    restrictions,   limitations,  penalties  and  definitions  of
 3    terms, and  employ  the  same  modes  of  procedure,  as  are
 4    prescribed  in  Sections  1a-1,  2,  2a,  3  through 3-50 (in
 5    respect to all provisions therein other than the  State  rate
 6    of  tax),  4 (except that the reference to the State shall be
 7    to the  taxing  municipality),  5,  7,  8  (except  that  the
 8    jurisdiction  to  which the tax shall be a debt to the extent
 9    indicated  in  that   Section   8   shall   be   the   taxing
10    municipality),  9  (except as to the disposition of taxes and
11    penalties collected, and except that the returned merchandise
12    credit for this municipal tax may not be  taken  against  any
13    State  tax),  10,  11,  12  (except  the reference therein to
14    Section 2b of the Retailers' Occupation Tax Act), 13  (except
15    that  any  reference  to  the  State  shall  mean  the taxing
16    municipality), the first paragraph  of  Section  15,  16,  17
17    (except  that  credit  memoranda  issued hereunder may not be
18    used to discharge any State tax liability), 18, 19 and 20  of
19    the 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        No tax  may  be  imposed  by  a  home  rule  municipality
23    pursuant  to  this  Section  unless  such  municipality  also
24    imposes  a tax at the same rate pursuant to Section 8-11-1 of
25    this Act.
26        A home rule municipality that has not imposed a tax under
27    this Section on the selling price of motor  fuel  or  gasohol
28    before  the effective date of this amendatory Act of the 91st
29    General Assembly shall not impose such a tax on or after that
30    date. A home rule municipality that has imposed a  tax  under
31    this  Section  on  the selling price of motor fuel or gasohol
32    before the effective date of this amendatory Act of the  91st
33    General Assembly shall not increase the rate of the tax on or
34    after  that  date.  If, as a result of the provisions of this
 
                            -107-          LRB9110257SMdvam06
 1    amendatory Act of the 91st General Assembly, the rate of  tax
 2    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
 3    Retailers' Occupation Tax Act  returns  to  6.25%,  then  the
 4    prohibition  against imposing a tax on the sale of motor fuel
 5    and gasohol and the prohibition against an  increase  in  the
 6    rate of any tax already imposed on the sale of motor fuel and
 7    gasohol  are  no longer in effect. This amendatory Act of the
 8    91st General Assembly is a denial and limitation of home rule
 9    powers to tax under subsection (g) of Section  6  of  Article
10    VII of the Illinois Constitution.
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
 
                            -108-          LRB9110257SMdvam06
 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
 
                            -109-          LRB9110257SMdvam06
 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
 
                            -110-          LRB9110257SMdvam06
 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
 
                            -111-          LRB9110257SMdvam06
 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. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

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
 
                            -112-          LRB9110257SMdvam06
 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        (b-5)  A  home  rule  municipality that has not imposed a
16    tax under this Section on the use of motor  fuel  or  gasohol
17    before  the effective date of this amendatory Act of the 91st
18    General Assembly shall not impose such a tax on or after that
19    date. A home rule municipality that has imposed a  tax  under
20    this  Section  on the use of motor fuel or gasohol before the
21    effective date of this amendatory Act  of  the  91st  General
22    Assembly  shall  not increase the rate of the tax on or after
23    that date.  If,  as  a  result  of  the  provisions  of  this
24    amendatory  Act of the 91st General Assembly, the rate of tax
25    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
26    Retailers'  Occupation  Tax  Act  returns  to 6.25%, then the
27    prohibition against imposing a tax on the sale of motor  fuel
28    and  gasohol  and  the prohibition against an increase in the
29    rate of any tax already imposed on the sale of motor fuel and
30    gasohol are no longer in effect. This amendatory Act  of  the
31    91st General Assembly is a denial and limitation of home rule
32    powers  to  tax  under subsection (g) of Section 6 of Article
33    VII of the Illinois Constitution.
34        (c)  If  a  municipality   having   2,000,000   or   more
 
                            -113-          LRB9110257SMdvam06
 1    inhabitants  imposes  the  tax  authorized by subsection (a),
 2    then the tax shall be collected by the Illinois Department of
 3    Revenue when the property  is  purchased  at  retail  from  a
 4    retailer  in  the  county in which the home rule municipality
 5    imposing the tax is located, and in all contiguous  counties.
 6    The  tax  shall  be  remitted  to  the State, or an exemption
 7    determination must be obtained from the Department before the
 8    title or certificate of registration for the property may  be
 9    issued.   The tax or proof of exemption may be transmitted to
10    the Department by way of the  State  agency  with  which,  or
11    State  officer with whom, the tangible personal property must
12    be titled or registered if the Department and that agency  or
13    State officer determine that this procedure will expedite the
14    processing of applications for title or registration.
15        The  Department  shall  have full power to administer and
16    enforce this Section to  collect  all  taxes,  penalties  and
17    interest  due  hereunder,  to dispose of taxes, penalties and
18    interest so collected in the manner hereinafter provided, and
19    determine all rights to credit memoranda or  refunds  arising
20    on  account  of  the  erroneous  payment  of  tax, penalty or
21    interest hereunder.  In the administration of and  compliance
22    with  this Section the Department and persons who are subject
23    to  this  Section  shall  have  the  same  rights,  remedies,
24    privileges, immunities, powers and duties, and be subject  to
25    the same conditions, restrictions, limitations, penalties and
26    definitions  of terms, and employ the same modes of procedure
27    as are prescribed in Sections 2  (except  the  definition  of
28    "retailer  maintaining a place of business in this State"), 3
29    (except provisions pertaining to the State rate of  tax,  and
30    except  provisions  concerning collection or refunding of the
31    tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and  22
32    of  the  Use  Tax  Act,  which are not inconsistent with this
33    Section,  as  fully  as  if  provisions  contained  in  those
34    Sections of the Use Tax Act were set forth herein.
 
                            -114-          LRB9110257SMdvam06
 1        Whenever the Department determines that a refund shall be
 2    made under this Section to a claimant instead  of  issuing  a
 3    credit  memorandum,  the  Department  shall  notify the State
 4    Comptroller, who shall cause the order to be  drawn  for  the
 5    amount   specified,   and   to  the  person  named,  in  such
 6    notification from the Department.  Such refund shall be  paid
 7    by  the  State  Treasurer  out  of  the  home  rule municipal
 8    retailers' occupation tax fund.
 9        The Department shall forthwith  pay  over  to  the  State
10    Treasurer,  ex  officio, as trustee, all taxes, penalties and
11    interest collected hereunder.  On or before the 25th  day  of
12    each calendar month, the Department shall prepare and certify
13    to  the  State Comptroller the disbursement of stated sums of
14    money to  named  municipalities,  the  municipality  in  each
15    instance  to  be  that municipality from which the Department
16    during  the  second  preceding  calendar   month,   collected
17    municipal  use tax from any person whose Illinois address for
18    titling or registration purposes is given as  being  in  such
19    municipality.   The  amount  to  be paid to each municipality
20    shall  be  the  amount  (not  including   credit   memoranda)
21    collected  hereunder  during  the  second  preceding calendar
22    month by the Department, and not including an amount equal to
23    the amount  of  refunds  made  during  the  second  preceding
24    calendar   month   by   the  Department  on  behalf  of  such
25    municipality, less the  amount  expended  during  the  second
26    preceding  month  by  the  Department  to  be  paid  from the
27    appropriation to the Department from the Home Rule  Municipal
28    Retailers'  Occupation  Tax Trust Fund.  The appropriation to
29    cover the costs incurred by the Department  in  administering
30    and  enforcing this Section shall not exceed 2% of the amount
31    estimated to  be  deposited  into  the  Home  Rule  Municipal
32    Retailers'  Occupation  Tax Trust Fund during the fiscal year
33    for which the appropriation is made.  Within  10  days  after
34    receipt   by   the  State  Comptroller  of  the  disbursement
 
                            -115-          LRB9110257SMdvam06
 1    certification to the  municipalities  provided  for  in  this
 2    Section   to  be  given  to  the  State  Comptroller  by  the
 3    Department, the State Comptroller shall cause the  orders  to
 4    be  drawn  for  the respective amounts in accordance with the
 5    directions contained in that certification.
 6        Any ordinance imposing or discontinuing  any  tax  to  be
 7    collected  and  enforced by the Department under this Section
 8    shall be adopted and a certified copy thereof filed with  the
 9    Department  on  or before October 1, whereupon the Department
10    of Revenue shall  proceed  to  administer  and  enforce  this
11    Section  on behalf of the municipalities as of January 1 next
12    following such adoption and filing.  Beginning April 1, 1998,
13    any  ordinance  imposing  or  discontinuing  any  tax  to  be
14    collected and enforced by the Department under  this  Section
15    shall  either  (i)  be  adopted  and a certified copy thereof
16    filed with the Department on or before April 1, whereupon the
17    Department of Revenue shall proceed to administer and enforce
18    this Section on behalf of the municipalities  as  of  July  1
19    next  following  the  adoption and filing; or (ii) be adopted
20    and a certified copy thereof filed with the Department on  or
21    before  October  1, whereupon the Department of Revenue shall
22    proceed to administer and enforce this Section on  behalf  of
23    the  municipalities  as  of  January  1  next  following  the
24    adoption and filing.
25        Nothing  in this subsection (c) shall prevent a home rule
26    municipality from collecting the tax pursuant  to  subsection
27    (a)  in  any situation where such tax is not collected by the
28    Department of Revenue under this subsection (c).
29        (d)  Any unobligated balance remaining in  the  Municipal
30    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
31    fund was abolished by Public Act 85-1135, and all receipts of
32    municipal tax as a result  of  audits  of  liability  periods
33    prior  to  January  1,  1990,  shall  be  paid into the Local
34    Government Tax Fund, for distribution  as  provided  by  this
 
                            -116-          LRB9110257SMdvam06
 1    Section  prior  to  the  enactment of Public Act 85-1135. All
 2    receipts of municipal tax as a result of  an  assessment  not
 3    arising from an audit, for liability periods prior to January
 4    1, 1990, shall be paid into the Local Government Tax Fund for
 5    distribution before July 1, 1990, as provided by this Section
 6    prior  to  the  enactment  of  Public Act 85-1135, and on and
 7    after July 1, 1990, all such receipts shall be distributed as
 8    provided in Section 6z-18 of the State Finance Act.
 9        (e)  As   used   in   this   Section,   "Municipal"   and
10    "Municipality" means a city, village  or  incorporated  town,
11    including  an  incorporated town which has superseded a civil
12    township.
13        (f)  This Section shall be known and may be cited as  the
14    Home Rule Municipal Use Tax Act.
15    (Source:  P.A.  90-562,  eff. 12-16-97; 90-689, eff. 7-31-98;
16    91-51, eff. 6-30-99.)

17        (65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
18        Sec. 8-11-15.  Municipal motor fuel.
19        (a)  The corporate authorities of a municipality of  over
20    100,000 inhabitants may, upon approval of the electors of the
21    municipality  pursuant to subsection (b), impose a tax of one
22    cent per gallon on motor fuel  sold  at  retail  within  such
23    municipality. A tax imposed pursuant to this Section shall be
24    paid in addition to any other taxes on such motor fuel.
25        A  municipality  that  has  not  imposed a tax under this
26    Section before the effective date of this amendatory  Act  of
27    the  91st  General Assembly shall not impose such a tax on or
28    after that date. A municipality that has imposed a tax  under
29    this Section before the effective date of this amendatory Act
30    of  the  91st General Assembly shall not increase the rate of
31    the tax on or after  that  date.  If,  as  a  result  of  the
32    provisions  of  this  amendatory  Act  of  the  91st  General
33    Assembly,  the  rate of tax imposed on the sale of motor fuel
 
                            -117-          LRB9110257SMdvam06
 1    and gasohol by the Retailers' Occupation Tax Act  returns  to
 2    6.25%,  then  the  prohibition  against imposing a tax on the
 3    sale of motor fuel and gasohol and the prohibition against an
 4    increase in the rate of any tax already imposed on  the  sale
 5    of  motor  fuel  and  gasohol  are  no longer in effect. This
 6    amendatory Act of the 91st General Assembly is a  denial  and
 7    limitation of home rule powers to tax under subsection (g) of
 8    Section 6 of Article VII of the Illinois Constitution.
 9        (b)  The corporate authorities of the municipality may by
10    resolution  call  for  the  submission to the electors of the
11    municipality of the  question  of  whether  the  municipality
12    shall  impose  such tax.  Such question shall be certified by
13    the municipal clerk to the election authority  in  accordance
14    with Section 28-5 of The Election Code. The question shall be
15    in substantially the following form:
16    -------------------------------------------------------------
17        Shall the city (village or
18     incorporated town) of .......     YES
19     impose a tax of one cent per   -----------------------------
20     gallon on motor fuel sold at       NO
21     retail within its boundaries?
22    -------------------------------------------------------------
23        If  a majority of the electors in the municipality voting
24    upon the question vote in the affirmative, such tax shall  be
25    imposed.
26        (c)  The  purchaser of the motor fuel shall be liable for
27    payment of a tax  imposed  pursuant  to  this  Section.  This
28    Section  shall  not  be  construed  to  impose  a  tax on the
29    occupation of persons engaged in the sale of motor fuel.
30        If a municipality imposes a tax on motor fuel pursuant to
31    this Section, it shall be the duty of any person  engaged  in
32    the  retail  sale  of  motor fuel within such municipality to
33    collect such tax from the  purchaser  at  the  same  time  he
34    collects the purchase price of the motor fuel and to pay over
 
                            -118-          LRB9110257SMdvam06
 1    such  tax  to the municipality as prescribed by the ordinance
 2    of the municipality imposing such tax.
 3        (d)  For purposes of this  Section,  "motor  fuel"  shall
 4    have  the  same  meaning  as  provided in the "Motor Fuel Tax
 5    Law".
 6    (Source: P.A. 84-1099.)

 7        Section 35.  The Civic Center Code is amended by changing
 8    Section 245-12 as follows:

 9        (70 ILCS 200/245-12)
10        Sec. 245-12. Use and occupation taxes.
11        (a)  The Authority may adopt a resolution that authorizes
12    a referendum on the question of whether the  Authority  shall
13    be  authorized  to  impose  a  retailers'  occupation  tax, a
14    service occupation tax, and a use tax in one-quarter  percent
15    increments  at  a  rate not to exceed 1%. The Authority shall
16    certify the question to the proper election  authorities  who
17    shall  submit  the question to the voters of the metropolitan
18    area at the next regularly scheduled election  in  accordance
19    with  the  general  election  law.  The  question shall be in
20    substantially the following form:
21        "Shall the Salem Civic Center Authority be authorized  to
22        impose  a retailers' occupation tax, a service occupation
23        tax, and a use tax at the rate of  (rate)  for  the  sole
24        purpose of obtaining funds for the support, construction,
25        maintenance,   or   financing   of   a  facility  of  the
26        Authority?"
27        Votes shall be recorded as "yes" or "no". If  a  majority
28    of  all  votes  cast  on  the proposition are in favor of the
29    proposition, the Authority is authorized to impose the tax.
30        (b)  The Authority shall impose the retailers' occupation
31    tax upon all persons  engaged  in  the  business  of  selling
32    tangible  personal  property  at  retail  in the metropolitan
 
                            -119-          LRB9110257SMdvam06
 1    area, at the  rate  approved  by  referendum,  on  the  gross
 2    receipts  from  the sales made in the course of such business
 3    within the metropolitan area.  The  tax  imposed  under  this
 4    Section  and  all  civil penalties that may be assessed as an
 5    incident thereof shall  be  collected  and  enforced  by  the
 6    Department  of  Revenue.   The  Department  has full power to
 7    administer and enforce this Section; to collect all taxes and
 8    penalties  so  collected  in  the  manner  provided  in  this
 9    Section; and to determine  all  rights  to  credit  memoranda
10    arising on account of the erroneous payment of tax or penalty
11    hereunder.   In  the  administration of, and compliance with,
12    this Section, the Department and persons who are  subject  to
13    this  Section  shall  (i)  have  the  same  rights, remedies,
14    privileges, immunities, powers and duties, (ii) be subject to
15    the same conditions,  restrictions,  limitations,  penalties,
16    exclusions,  exemptions,  and definitions of terms, and (iii)
17    employ the same modes  of  procedure  as  are  prescribed  in
18    Sections  1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
19    2-5, 2-5.5, 2-10 (in respect to all provisions therein  other
20    than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
21    (except   as  to  the  disposition  of  taxes  and  penalties
22    collected  and  provisions   related   to   quarter   monthly
23    payments),  4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
24    6, 6a, 6b, 6c, 7, 8, 9, 10,  11,  11a,  12,  and  13  of  the
25    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
26    Penalty and Interest Act, as fully  as  if  those  provisions
27    were set forth in this subsection.
28        If  the  Authority  has  not  imposed  a  tax  under this
29    subsection on the sale of motor fuel or  gasohol  before  the
30    effective  date  of  this  amendatory Act of the 91st General
31    Assembly, then the Authority shall not impose such a  tax  on
32    or after that date.  If the Authority has imposed a tax under
33    this  subsection  on the sale of motor fuel or gasohol before
34    the effective date of this amendatory Act of the 91st General
 
                            -120-          LRB9110257SMdvam06
 1    Assembly, then the Authority shall not increase the  rate  of
 2    the  tax  on  or  after  that  date.  If,  as a result of the
 3    provisions  of  this  amendatory  Act  of  the  91st  General
 4    Assembly, the rate of tax imposed on the sale of  motor  fuel
 5    and  gasohol  by the Retailers' Occupation Tax Act returns to
 6    6.25%, then the prohibition against imposing  a  tax  on  the
 7    sale of motor fuel and gasohol and the prohibition against an
 8    increase  in  the rate of any tax already imposed on the sale
 9    of motor fuel and gasohol are no longer in effect.
10        Persons subject to any tax imposed under this  subsection
11    may  reimburse themselves for their seller's tax liability by
12    separately stating the tax as  an  additional  charge,  which
13    charge may be stated in combination, in a single amount, with
14    State   taxes  that  sellers  are  required  to  collect,  in
15    accordance with such bracket schedules as the Department  may
16    prescribe.
17        Whenever  the  Department determines that a refund should
18    be made under  this  subsection  to  a  claimant  instead  of
19    issuing  a credit memorandum, the Department shall notify the
20    State Comptroller, who shall cause the warrant  to  be  drawn
21    for  the  amount  specified,  and to the person named, in the
22    notification from the Department.  The refund shall  be  paid
23    by  the  State Treasurer out of the tax fund referenced under
24    paragraph (g) of this Section.
25        If a tax is imposed under  this  subsection  (b),  a  tax
26    shall  also be imposed at the same rate under subsections (c)
27    and (d) of this Section.
28        For the purpose of determining whether a  tax  authorized
29    under  this  Section  is  applicable,  a  retail  sale,  by a
30    producer of coal or other mineral mined  in  Illinois,  is  a
31    sale  at  retail at the place where the coal or other mineral
32    mined  in  Illinois  is  extracted  from  the  earth.    This
33    paragraph  does not apply to coal or other mineral when it is
34    delivered or shipped by the seller  to  the  purchaser  at  a
 
                            -121-          LRB9110257SMdvam06
 1    point  outside  Illinois so that the sale is exempt under the
 2    Federal Constitution as  a  sale  in  interstate  or  foreign
 3    commerce.
 4        Nothing  in  this Section shall be construed to authorize
 5    the Authority to impose a tax upon the privilege of  engaging
 6    in  any  business  which under the Constitution of the United
 7    States may not be made the subject of taxation by this State.
 8        (c)  If a tax has been imposed under  subsection  (b),  a
 9    service occupation tax shall also be imposed at the same rate
10    upon  all  persons  engaged, in the metropolitan area, in the
11    business of making sales of service, who, as an  incident  to
12    making  those  sales  of  service, transfer tangible personal
13    property within the metropolitan area as  an  incident  to  a
14    sale  of  service.  The tax imposed under this subsection and
15    all civil penalties that  may  be  assessed  as  an  incident
16    thereof  shall be collected and enforced by the Department of
17    Revenue. The Department has  full  power  to  administer  and
18    enforce  this  paragraph;  to collect all taxes and penalties
19    due hereunder; to dispose of taxes and penalties so collected
20    in the manner hereinafter  provided;  and  to  determine  all
21    rights   to  credit  memoranda  arising  on  account  of  the
22    erroneous payment of  tax  or  penalty  hereunder.    In  the
23    administration  of,  and  compliance with this paragraph, the
24    Department and persons who  are  subject  to  this  paragraph
25    shall   (i)  have  the  same  rights,  remedies,  privileges,
26    immunities, powers, and duties, (ii) be subject to  the  same
27    conditions, restrictions, limitations, penalties, exclusions,
28    exemptions,  and  definitions  of terms, and (iii) employ the
29    same modes of procedure  as  are  prescribed  in  Sections  2
30    (except  that  the  reference  to  State in the definition of
31    supplier maintaining a place of business in this State  shall
32    mean  the  metropolitan  area),  2a,  2b,  3 through 3-55 (in
33    respect to all provisions therein other than the  State  rate
34    of  tax),  4 (except that the reference to the State shall be
 
                            -122-          LRB9110257SMdvam06
 1    to the Authority), 5, 7, 8 (except that the  jurisdiction  to
 2    which the tax shall be a debt to the extent indicated in that
 3    Section  8  shall  be  the  Authority),  9  (except as to the
 4    disposition of taxes and penalties collected, and except that
 5    the returned merchandise credit for this tax may not be taken
 6    against any State tax), 11, 12 (except the reference  therein
 7    to  Section  2b  of  the  Retailers'  Occupation Tax Act), 13
 8    (except that any  reference  to  the  State  shall  mean  the
 9    Authority),  15,  16,  17,  18,  19  and  20  of  the Service
10    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
11    Interest Act, as fully as if those provisions were set  forth
12    herein.
13        If  the  Authority  has  not  imposed  a  tax  under this
14    subsection on the selling price  of  motor  fuel  or  gasohol
15    before  the effective date of this amendatory Act of the 91st
16    General Assembly, then the Authority shall not impose such  a
17    tax  on  or  after that date.  If the Authority has imposed a
18    tax under this subsection on the selling price of motor  fuel
19    or  gasohol  before the effective date of this amendatory Act
20    of the 91st General Assembly, then the  Authority  shall  not
21    increase  the rate of the tax on or after that date. If, as a
22    result of the provisions of this amendatory Act of  the  91st
23    General  Assembly,  the  rate  of  tax imposed on the sale of
24    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
25    returns to 6.25%, then the prohibition against imposing a tax
26    on  the  sale  of  motor fuel and gasohol and the prohibition
27    against an increase in the rate of any tax already imposed on
28    the sale of motor fuel and gasohol are no longer in effect.
29        Persons subject to any tax imposed  under  the  authority
30    granted in this subsection may reimburse themselves for their
31    serviceman's  tax  liability by separately stating the tax as
32    an  additional  charge,  which  charge  may  be   stated   in
33    combination,   in  a  single  amount,  with  State  tax  that
34    servicemen are authorized to collect under  the  Service  Use
 
                            -123-          LRB9110257SMdvam06
 1    Tax  Act,  in  accordance  with such bracket schedules as the
 2    Department may prescribe.
 3        Whenever the Department determines that a  refund  should
 4    be  made  under  this  subsection  to  a  claimant instead of
 5    issuing a credit memorandum, the Department shall notify  the
 6    State  Comptroller,  who  shall cause the warrant to be drawn
 7    for the amount specified, and to the  person  named,  in  the
 8    notification  from  the Department.  The refund shall be paid
 9    by the State Treasurer out of the tax fund  referenced  under
10    paragraph (g) of this Section.
11        Nothing in this paragraph shall be construed to authorize
12    the  Authority to impose a tax upon the privilege of engaging
13    in any business which under the Constitution  of  the  United
14    States may not be made the subject of taxation by the State.
15        (d)  If  a  tax  has been imposed under subsection (b), a
16    use tax shall also be imposed  at  the  same  rate  upon  the
17    privilege  of  using,  in  the metropolitan area, any item of
18    tangible personal property  that  is  purchased  outside  the
19    metropolitan  area  at  retail  from  a retailer, and that is
20    titled or registered at a location  within  the  metropolitan
21    area  with  an  agency  of  this State's government. "Selling
22    price" is defined as in the Use Tax Act.  The  tax  shall  be
23    collected  from persons whose Illinois address for titling or
24    registration purposes is given as being in  the  metropolitan
25    area.   The  tax  shall  be  collected  by  the Department of
26    Revenue for the Authority. The tax must be paid to the State,
27    or an exemption  determination  must  be  obtained  from  the
28    Department  of  Revenue,  before  the title or certificate of
29    registration for the property may  be  issued.   The  tax  or
30    proof  of  exemption  may be transmitted to the Department by
31    way of the State agency with which, or the State officer with
32    whom, the  tangible  personal  property  must  be  titled  or
33    registered  if  the  Department and the State agency or State
34    officer determine  that  this  procedure  will  expedite  the
 
                            -124-          LRB9110257SMdvam06
 1    processing of applications for title or registration.
 2        The  Department  has full power to administer and enforce
 3    this paragraph; to collect all taxes, penalties and  interest
 4    due hereunder; to dispose of taxes, penalties and interest so
 5    collected   in   the  manner  hereinafter  provided;  and  to
 6    determine all rights to credit memoranda or  refunds  arising
 7    on  account  of  the  erroneous  payment  of  tax, penalty or
 8    interest hereunder. In the administration of, and  compliance
 9    with,  this  subsection,  the  Department and persons who are
10    subject to this paragraph shall (i)  have  the  same  rights,
11    remedies, privileges, immunities, powers, and duties, (ii) be
12    subject  to  the  same conditions, restrictions, limitations,
13    penalties, exclusions, exemptions, and definitions of  terms,
14    and   (iii)  employ  the  same  modes  of  procedure  as  are
15    prescribed in Sections 2 (except the definition of  "retailer
16    maintaining  a  place  of  business  in this State"), 3, 3-5,
17    3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,  7,  8  (except
18    that the jurisdiction to which the tax shall be a debt to the
19    extent indicated in that Section 8 shall be the Authority), 9
20    (except provisions relating to quarter monthly payments), 10,
21    11,  12,  12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use
22    Tax Act and Section 3-7 of the Uniform Penalty  and  Interest
23    Act,  that are not inconsistent with this paragraph, as fully
24    as if those provisions were set forth herein.
25        If the  Authority  has  not  imposed  a  tax  under  this
26    subsection  on  the  use  of motor fuel or gasohol before the
27    effective date of this amendatory Act  of  the  91st  General
28    Assembly,  then  the Authority shall not impose such a tax on
29    or after that date.  If the Authority has imposed a tax under
30    this subsection on the use of motor fuel  or  gasohol  before
31    the effective date of this amendatory Act of the 91st General
32    Assembly,  then  the Authority shall not increase the rate of
33    the tax on or after  that  date.  If,  as  a  result  of  the
34    provisions  of  this  amendatory  Act  of  the  91st  General
 
                            -125-          LRB9110257SMdvam06
 1    Assembly,  the  rate of tax imposed on the sale of motor fuel
 2    and gasohol by the Retailers' Occupation Tax Act  returns  to
 3    6.25%,  then  the  prohibition  against imposing a tax on the
 4    sale of motor fuel and gasohol and the prohibition against an
 5    increase in the rate of any tax already imposed on  the  sale
 6    of motor fuel and gasohol are no longer in effect.
 7        Whenever  the  Department determines that a refund should
 8    be made under  this  subsection  to  a  claimant  instead  of
 9    issuing  a credit memorandum, the Department shall notify the
10    State Comptroller, who shall cause the order to be drawn  for
11    the  amount  specified,  and  to  the  person  named,  in the
12    notification from the Department. The refund shall be paid by
13    the State Treasurer out of  the  tax  fund  referenced  under
14    paragraph (g) of this Section.
15        (e)  A  certificate  of  registration issued by the State
16    Department of Revenue to  a  retailer  under  the  Retailers'
17    Occupation  Tax  Act  or under the Service Occupation Tax Act
18    shall permit the registrant to engage in a business  that  is
19    taxed under the tax imposed under paragraphs (b), (c), or (d)
20    of  this  Section  and  no  additional  registration shall be
21    required. A certificate issued under the Use Tax Act  or  the
22    Service  Use  Tax  Act shall be applicable with regard to any
23    tax imposed under paragraph (c) of this Section.
24        (f)  The  results   of   any   election   authorizing   a
25    proposition to impose a tax under this Section or effecting a
26    change  in  the  rate of tax shall be certified by the proper
27    election authorities and filed with the  Illinois  Department
28    on  or  before  the  first  day  of  April.   In addition, an
29    ordinance imposing, discontinuing, or effecting a  change  in
30    the  rate  of  tax  under this Section shall be adopted and a
31    certified copy thereof filed with the Department on or before
32    the first  day  of  April.   After  proper  receipt  of  such
33    certifications,  the  Department  shall proceed to administer
34    and enforce this Section as of the first  day  of  July  next
 
                            -126-          LRB9110257SMdvam06
 1    following such adoption and filing.
 2        (g)  The Department of Revenue shall, upon collecting any
 3    taxes  and  penalties  as  provided  in this Section, pay the
 4    taxes and penalties over to the State  Treasurer  as  trustee
 5    for the Authority. The taxes and penalties shall be held in a
 6    trust  fund outside the State Treasury. On or before the 25th
 7    day of each calendar month, the Department of  Revenue  shall
 8    prepare  and  certify  to  the  Comptroller  of  the State of
 9    Illinois the amount to be paid to the Authority, which  shall
10    be the balance in the fund, less any amount determined by the
11    Department to be necessary for the payment of refunds. Within
12    10 days after receipt by the Comptroller of the certification
13    of  the  amount  to be paid to the Authority, the Comptroller
14    shall cause an order to be drawn for payment for  the  amount
15    in   accordance   with   the   directions  contained  in  the
16    certification. Amounts received from the  tax  imposed  under
17    this   Section   shall   be   used   only  for  the  support,
18    construction, maintenance, or financing of a facility of  the
19    Authority.
20        (h)  When certifying the amount of a monthly disbursement
21    to  the  Authority  under  this Section, the Department shall
22    increase or decrease the amounts by an  amount  necessary  to
23    offset  any  miscalculation  of  previous disbursements.  The
24    offset amount  shall  be  the  amount  erroneously  disbursed
25    within  the  previous 6 months from the time a miscalculation
26    is discovered.
27        (i)  This Section may be cited as the Salem Civic  Center
28    Use and Occupation Tax Law.
29    (Source: P.A. 90-328, eff. 1-1-98.)

30        Section  40.   The  Local  Mass  Transit  District Act is
31    amended by changing Section 5.01 as follows:

32        (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
 
                            -127-          LRB9110257SMdvam06
 1        Sec. 5.01. Metro East  Mass  Transit  District;  use  and
 2    occupation taxes.
 3        (a)  The Board of Trustees of any Metro East Mass Transit
 4    District  may,  by  ordinance adopted with the concurrence of
 5    two-thirds  of  the  then  trustees,  impose  throughout  the
 6    District any or all of the taxes and fees  provided  in  this
 7    Section.  All taxes and fees imposed under this Section shall
 8    be  used only for public mass transportation systems, and the
 9    amount used to provide mass transit service to unserved areas
10    of the District shall be in the same proportion to the  total
11    proceeds  as  the  number of persons residing in the unserved
12    areas is to the total population of the District.  Except  as
13    otherwise  provided  in  this  Act,  taxes imposed under this
14    Section and civil penalties imposed incident thereto shall be
15    collected and enforced by the State  Department  of  Revenue.
16    The Department shall have the power to administer and enforce
17    the  taxes  and  to  determine  all  rights  for  refunds for
18    erroneous payments of the taxes.
19        (b)  The Board may  impose  a  Metro  East  Mass  Transit
20    District  Retailers'  Occupation Tax upon all persons engaged
21    in the business of  selling  tangible  personal  property  at
22    retail  in  the  district  at  a  rate  of  1/4  of 1%, or as
23    authorized under subsection (d-5) of  this  Section,  of  the
24    gross  receipts  from  the  sales  made in the course of such
25    business within the district.  The  tax  imposed  under  this
26    Section  and  all  civil penalties that may be assessed as an
27    incident thereof shall be collected and enforced by the State
28    Department of Revenue.  The Department shall have full  power
29    to  administer and enforce this Section; to collect all taxes
30    and  penalties  so  collected  in  the   manner   hereinafter
31    provided;  and  to  determine  all rights to credit memoranda
32    arising on account of the erroneous payment of tax or penalty
33    hereunder.  In the administration of,  and  compliance  with,
34    this  Section,  the Department and persons who are subject to
 
                            -128-          LRB9110257SMdvam06
 1    this  Section  shall  have   the   same   rights,   remedies,
 2    privileges,  immunities, powers and duties, and be subject to
 3    the same conditions,  restrictions,  limitations,  penalties,
 4    exclusions,  exemptions  and  definitions of terms and employ
 5    the same modes of procedure, as are prescribed in Sections 1,
 6    1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in  respect
 7    to  all provisions therein other than the State rate of tax),
 8    2c, 3 (except as to the disposition of  taxes  and  penalties
 9    collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
10    6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12, 13, and 14 of the
11    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
12    Penalty  and  Interest  Act,  as fully as if those provisions
13    were set forth herein.
14        If the Board has not imposed a tax under this  subsection
15    on  the  sale  of  motor fuel or gasohol before the effective
16    date of this amendatory Act of  the  91st  General  Assembly,
17    then  the  Board shall not impose such a tax on or after that
18    date.  If the Board has imposed a tax under  this  subsection
19    on  the  sale  of  motor fuel or gasohol before the effective
20    date of this amendatory Act of  the  91st  General  Assembly,
21    then  the  Board shall not increase the rate of the tax on or
22    after that date. If, as a result of the  provisions  of  this
23    amendatory  Act of the 91st General Assembly, the rate of tax
24    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
25    Retailers'  Occupation  Tax  Act  returns  to 6.25%, then the
26    prohibition against imposing a tax on the sale of motor  fuel
27    and  gasohol  and  the prohibition against an increase in the
28    rate of any tax already imposed on the sale of motor fuel and
29    gasohol are no longer in effect.
30        Persons subject to any tax imposed under the Section  may
31    reimburse   themselves   for  their  seller's  tax  liability
32    hereunder by separately stating  the  tax  as  an  additional
33    charge,  which  charge  may  be  stated  in combination, in a
34    single amount, with State taxes that sellers are required  to
 
                            -129-          LRB9110257SMdvam06
 1    collect  under  the  Use  Tax  Act,  in  accordance with such
 2    bracket 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 warrant to be drawn for  the
 7    amount   specified,   and   to   the  person  named,  in  the
 8    notification from the Department.  The refund shall  be  paid
 9    by  the  State  Treasurer  out of the Metro East Mass Transit
10    District tax fund established under  paragraph  (g)  of  this
11    Section.
12        If  a  tax  is  imposed  under this subsection (b), a tax
13    shall also be imposed under subsections (c) and (d)  of  this
14    Section.
15        For  the  purpose of determining whether a tax authorized
16    under this  Section  is  applicable,  a  retail  sale,  by  a
17    producer  of  coal  or  other mineral mined in Illinois, is a
18    sale at retail at the place where the coal or  other  mineral
19    mined   in  Illinois  is  extracted  from  the  earth.   This
20    paragraph does not apply to coal or other mineral when it  is
21    delivered  or  shipped  by  the  seller to the purchaser at a
22    point outside Illinois so that the sale is exempt  under  the
23    Federal  Constitution  as  a  sale  in  interstate or foreign
24    commerce.
25        Nothing in this Section shall be construed  to  authorize
26    the Metro East Mass Transit District to impose a tax upon the
27    privilege  of  engaging  in  any  business  which  under  the
28    Constitution of the United States may not be made the subject
29    of taxation by this State.
30        (c)  If  a  tax  has been imposed under subsection (b), a
31    Metro East Mass Transit District Service Occupation Tax shall
32    also be imposed upon all persons engaged, in the district, in
33    the business of making sales of service, who, as an  incident
34    to  making those sales of service, transfer tangible personal
 
                            -130-          LRB9110257SMdvam06
 1    property within the District, either in the form of  tangible
 2    personal  property  or  in  the  form  of  real  estate as an
 3    incident to a sale of service. The tax rate shall be 1/4%, or
 4    as authorized under subsection (d-5) of this Section, of  the
 5    selling  price  of  tangible personal property so transferred
 6    within the district.  The tax imposed  under  this  paragraph
 7    and  all  civil penalties that may be assessed as an incident
 8    thereof  shall  be  collected  and  enforced  by  the   State
 9    Department  of  Revenue. The Department shall have full power
10    to administer and enforce  this  paragraph;  to  collect  all
11    taxes  and  penalties  due hereunder; to dispose of taxes and
12    penalties so collected in the  manner  hereinafter  provided;
13    and  to  determine  all rights to credit memoranda arising on
14    account of the erroneous payment of tax or penalty hereunder.
15    In the administration of, and compliance with this paragraph,
16    the Department and persons who are subject to this  paragraph
17    shall have the same rights, remedies, privileges, immunities,
18    powers  and  duties,  and  be subject to the same conditions,
19    restrictions, limitations, penalties, exclusions,  exemptions
20    and  definitions  of  terms  and  employ  the  same  modes of
21    procedure as are prescribed in Sections 1a-1, 2 (except  that
22    the   reference  to  State  in  the  definition  of  supplier
23    maintaining a place of business in this State shall mean  the
24    Authority),  2a, 3 through 3-50 (in respect to all provisions
25    therein other than the State rate of tax), 4 (except that the
26    reference to the State shall be to the Authority),  5,  7,  8
27    (except  that  the  jurisdiction  to which the tax shall be a
28    debt to the extent indicated in that Section 8 shall  be  the
29    District),  9  (except  as  to  the  disposition of taxes and
30    penalties collected, and except that the returned merchandise
31    credit for this tax may not be taken against any State  tax),
32    10, 11, 12 (except the reference therein to Section 2b of the
33    Retailers' Occupation Tax Act), 13 (except that any reference
34    to the State shall mean the District), the first paragraph of
 
                            -131-          LRB9110257SMdvam06
 1    Section  15,  16, 17, 18, 19 and 20 of the Service Occupation
 2    Tax Act and Section 3-7 of the Uniform Penalty  and  Interest
 3    Act, as fully as if those provisions were set forth herein.
 4        If  the Board has not imposed a tax under this subsection
 5    on the selling price of motor  fuel  or  gasohol  before  the
 6    effective  date  of  this  amendatory Act of the 91st General
 7    Assembly, then the Board shall not impose such a  tax  on  or
 8    after  that  date.  If the Board has imposed a tax under this
 9    subsection on the selling price  of  motor  fuel  or  gasohol
10    before  the  effective  date  of  this  amendatory Act of the
11    General Assembly, then the Board shall not increase the  rate
12    of  the  tax  on  or  after that date. If, as a result of the
13    provisions  of  this  amendatory  Act  of  the  91st  General
14    Assembly, the rate of tax imposed on the sale of  motor  fuel
15    and  gasohol  by the Retailers' Occupation Tax Act returns to
16    6.25%, then the prohibition against imposing  a  tax  on  the
17    sale of motor fuel and gasohol and the prohibition against an
18    increase  in  the rate of any tax already imposed on the sale
19    of motor fuel and gasohol are no longer in effect.
20        Persons subject to any tax imposed  under  the  authority
21    granted  in this paragraph may reimburse themselves for their
22    serviceman's tax liability hereunder  by  separately  stating
23    the  tax  as an additional charge, which charge may be stated
24    in combination, in a  single  amount,  with  State  tax  that
25    servicemen  are  authorized  to collect under the Service Use
26    Tax Act, in accordance with such  bracket  schedules  as  the
27    Department may prescribe.
28        Whenever  the  Department determines that a refund should
29    be made under this paragraph to a claimant instead of issuing
30    a credit memorandum, the Department shall  notify  the  State
31    Comptroller,  who shall cause the warrant to be drawn for the
32    amount  specified,  and  to  the   person   named,   in   the
33    notification  from  the Department.  The refund shall be paid
34    by the State Treasurer out of the  Metro  East  Mass  Transit
 
                            -132-          LRB9110257SMdvam06
 1    District  tax  fund  established  under paragraph (g) of this
 2    Section.
 3        Nothing in this paragraph shall be construed to authorize
 4    the District to impose a tax upon the privilege  of  engaging
 5    in  any  business  which under the Constitution of the United
 6    States may not be made the subject of taxation by the State.
 7        (d)  If a tax has been imposed under  subsection  (b),  a
 8    Metro  East  Mass  Transit  District  Use  Tax  shall also be
 9    imposed upon the privilege of using,  in  the  district,  any
10    item  of tangible personal property that is purchased outside
11    the district at retail from a retailer, and that is titled or
12    registered with an agency of this State's  government,  at  a
13    rate of 1/4%, or as authorized under subsection (d-5) of this
14    Section,  of  the  selling  price  of  the  tangible personal
15    property within the District, as "selling price"  is  defined
16    in  the Use Tax Act.  The tax shall be collected from persons
17    whose Illinois address for titling or  registration  purposes
18    is  given  as  being  in  the  District.   The  tax  shall be
19    collected by the Department of Revenue  for  the  Metro  East
20    Mass Transit District.  The tax must be paid to the State, or
21    an   exemption   determination  must  be  obtained  from  the
22    Department of Revenue, before the  title  or  certificate  of
23    registration  for  the  property  may  be issued.  The tax or
24    proof of exemption may be transmitted to  the  Department  by
25    way of the State agency with which, or the State officer with
26    whom,  the  tangible  personal  property  must  be  titled or
27    registered if the Department and the State  agency  or  State
28    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  paragraph; 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    to  determine  all  rights  to  credit  memoranda  or refunds
 
                            -133-          LRB9110257SMdvam06
 1    arising on account of the erroneous payment of  tax,  penalty
 2    or   interest   hereunder.  In  the  administration  of,  and
 3    compliance with, this paragraph, the Department  and  persons
 4    who are subject to this paragraph shall have the same rights,
 5    remedies,  privileges,  immunities, powers and duties, and be
 6    subject to the same  conditions,  restrictions,  limitations,
 7    penalties,  exclusions,  exemptions  and definitions of terms
 8    and employ the same modes of procedure, as are prescribed  in
 9    Sections  2 (except the definition of "retailer maintaining a
10    place of business in this State"),  3  through  3-80  (except
11    provisions  pertaining  to  the State rate of tax, and except
12    provisions concerning collection or refunding of the  tax  by
13    retailers),  4,  11, 12, 12a, 14, 15, 19 (except the portions
14    pertaining  to  claims  by  retailers  and  except  the  last
15    paragraph concerning refunds), 20, 21 and 22 of the  Use  Tax
16    Act  and Section 3-7 of the Uniform Penalty and Interest Act,
17    that are not inconsistent with this paragraph, as fully as if
18    those provisions were set forth herein.
19        If the Board has not imposed a tax under this  subsection
20    on the use of motor fuel or gasohol before the effective date
21    of this amendatory Act of the 91st General Assembly, then the
22    Board  shall not impose such a tax on or after that date.  If
23    the Board has imposed a tax under this subsection on the  use
24    of  motor  fuel  or gasohol before the effective date of this
25    amendatory Act of the 91st General Assembly, then  the  Board
26    shall not increase the rate of the tax on or after that date.
27    If,  as  a result of the provisions of this amendatory Act of
28    the 91st General Assembly, the rate of  tax  imposed  on  the
29    sale  of  motor fuel and gasohol by the Retailers' Occupation
30    Tax Act  returns  to  6.25%,  then  the  prohibition  against
31    imposing  a tax on the sale of motor fuel and gasohol and the
32    prohibition against an  increase  in  the  rate  of  any  tax
33    already  imposed on the sale of motor fuel and gasohol are no
34    longer in effect.
 
                            -134-          LRB9110257SMdvam06
 1        Whenever the Department determines that a  refund  should
 2    be made under this paragraph to a claimant instead of issuing
 3    a  credit  memorandum,  the Department shall notify the State
 4    Comptroller, who shall cause the order to be  drawn  for  the
 5    amount   specified,   and   to   the  person  named,  in  the
 6    notification from the Department. The refund shall be paid by
 7    the State Treasurer  out  of  the  Metro  East  Mass  Transit
 8    District  tax  fund  established  under paragraph (g) of this
 9    Section.
10        (d-5)  The county board of any  county  participating  in
11    the  Metro  East  Mass  Transit  District  may  authorize, by
12    ordinance, a referendum on the question of  whether  the  tax
13    rates  for  the  Metro  East Mass Transit District Retailers'
14    Occupation Tax, the Metro East Mass Transit District  Service
15    Occupation  Tax, and the Metro East Mass Transit District Use
16    Tax for the District should be increased from 0.25% to 0.75%.
17    Upon adopting the ordinance, the county board  shall  certify
18    the  proposition  to  the proper election officials who shall
19    submit the proposition to the voters of the District  at  the
20    next election, in accordance with the general election law.
21        The  proposition  shall be in substantially the following
22    form:
23             Shall the tax rates for the Metro East Mass  Transit
24        District  Retailers'  Occupation Tax, the Metro East Mass
25        Transit District Service Occupation Tax,  and  the  Metro
26        East  Mass  Transit  District  Use Tax be  increased from
27        0.25% to 0.75%?
28        The votes shall be  recorded  as  "YES"  or  "NO".  If  a
29    majority  of  all  votes  cast on the proposition are for the
30    increase in the  tax  rates,  the  Metro  East  Mass  Transit
31    District  shall  begin  imposing  the  increased rates in the
32    District,  and  the  Department  of   Revenue   shall   begin
33    collecting  the  increased  amounts,  as  provided under this
34    Section.  An  ordinance  imposing  or  discontinuing  a   tax
 
                            -135-          LRB9110257SMdvam06
 1    hereunder  or effecting a change in the rate thereof shall be
 2    adopted  and  a  certified  copy  thereof  filed   with   the
 3    Department  on  or before the first day of October, whereupon
 4    the Department shall proceed to administer and  enforce  this
 5    Section  as  of  the  first day of January next following the
 6    adoption and filing.
 7        If the voters  have  approved  a  referendum  under  this
 8    subsection, before November 1, 1994, to increase the tax rate
 9    under  this  subsection, the Metro East Mass Transit District
10    Board of Trustees may adopt by a majority vote  an  ordinance
11    at  any  time  before  January 1, 1995 that excludes from the
12    rate increase tangible personal property that  is  titled  or
13    registered  with  an  agency of this State's government.  The
14    ordinance excluding titled or  registered  tangible  personal
15    property  from  the  rate  increase  must  be  filed with the
16    Department at least 15 days before its effective date. At any
17    time after adopting an  ordinance  excluding  from  the  rate
18    increase   tangible  personal  property  that  is  titled  or
19    registered with an agency of  this  State's  government,  the
20    Metro  East Mass Transit District Board of Trustees may adopt
21    an ordinance applying the  rate  increase  to  that  tangible
22    personal  property.  The  ordinance  shall  be adopted, and a
23    certified copy of that ordinance  shall  be  filed  with  the
24    Department,  on or before October 1, whereupon the Department
25    shall proceed to administer and  enforce  the  rate  increase
26    against  tangible personal property titled or registered with
27    an agency of this State's  government  as  of  the  following
28    January  1.   After  December  31,  1995,  any reimposed rate
29    increase in effect under  this  subsection  shall  no  longer
30    apply to tangible personal property titled or registered with
31    an  agency  of this State's government.  Beginning January 1,
32    1996, the Board of Trustees of any Metro  East  Mass  Transit
33    District  may  never  reimpose a previously excluded tax rate
34    increase on tangible personal property titled  or  registered
 
                            -136-          LRB9110257SMdvam06
 1    with an agency of this State's government.
 2        (d-6)  If  the  Board  of Trustees of any Metro East Mass
 3    Transit District has imposed a rate increase under subsection
 4    (d-5) and filed an ordinance with the Department  of  Revenue
 5    excluding  titled  property  from  the higher rate, then that
 6    Board may, by  ordinance  adopted  with  the  concurrence  of
 7    two-thirds  of  the  then  trustees,  impose  throughout  the
 8    District  a  fee.  The fee on the excluded property shall not
 9    exceed $20 per retail transaction or an amount equal  to  the
10    amount  of  tax  excluded,  whichever  is  less,  on tangible
11    personal property that is titled or registered with an agency
12    of this State's government.   The Board of  Trustees  of  any
13    Metro  East  Mass  Transit  District shall have full power to
14    administer and enforce this subsection and to  determine  all
15    rights  to  credit memoranda or refunds arising on account of
16    the erroneous payment of the fee hereunder.  The Board  shall
17    proceed  to  administer and enforce this subsection as of the
18    first day of the second month following the adoption  of  the
19    ordinance.
20        (d-7)  If  a fee has been imposed under subsection (d-6),
21    a fee shall also be imposed upon the privilege of  using,  in
22    the  district, any item of tangible personal property that is
23    titled  or  registered  with  any  agency  of  this   State's
24    government,  in  an  amount  equal  to  the amount of the fee
25    imposed under subsection (d-6).  The Board of Trustees of any
26    Metro East Mass Transit District shall  have  full  power  to
27    administer  and  enforce this subsection and to determine all
28    rights to credit memoranda or refunds arising on  account  of
29    the  erroneous payment of the fee hereunder.  The Board shall
30    proceed   to   administer   and   enforce   this   subsection
31    concurrently with the administration of the fee imposed under
32    subsection (d-6).
33        (d-8)  No item of titled property  shall  be  subject  to
34    both  the  higher  rate approved by referendum, as authorized
 
                            -137-          LRB9110257SMdvam06
 1    under subsection (d-5), and any fee imposed under  subsection
 2    (d-6) or (d-7).
 3        (d-9)  If  fees have been imposed under subsections (d-6)
 4    and (d-7), the Board shall forward a copy  of  the  ordinance
 5    adopting  such  fees,  which  shall  include all zip codes in
 6    whole or in part within the boundaries of  the  district,  to
 7    the  Secretary  of  State within thirty days.  By the 25th of
 8    each month, the Secretary of State shall subsequently provide
 9    the Board with a list  of  identifiable  retail  transactions
10    subject to the .25% rate occurring within the zip codes which
11    are in whole or in part within the boundaries of the district
12    and  a  list  of  title applications for addresses within the
13    boundaries of the district for the previous month.
14        (d-10)  In  the  event  that  a  retailer  fails  to  pay
15    applicable  fees  within  30  days  of  the   date   of   the
16    transaction,  a  penalty shall be assessed at the rate of 25%
17    of the amount of  fees.   Interest  on  both  late  fees  and
18    penalties shall be assessed at the rate of 1% per month.  All
19    fees, penalties, and attorney fees shall constitute a lien on
20    the personal and real property of the retailer.  The Board of
21    Trustees  of  any Metro East Transit District shall have full
22    power to administer and enforce this subsection.
23        (e)  A certificate of registration issued  by  the  State
24    Department  of  Revenue  to  a  retailer under the Retailers'
25    Occupation Tax Act or under the Service  Occupation  Tax  Act
26    shall  permit  the registrant to engage in a business that is
27    taxed under the tax imposed under paragraphs (b), (c) or  (d)
28    of  this  Section  and  no  additional  registration shall be
29    required under the tax. A certificate issued  under  the  Use
30    Tax  Act  or the Service Use Tax Act shall be applicable with
31    regard to  any  tax  imposed  under  paragraph  (c)  of  this
32    Section.
33        (f)  The  Board  may  impose a replacement vehicle tax of
34    $50 on any passenger car, as defined in Section 1-157 of  the
 
                            -138-          LRB9110257SMdvam06
 1    Illinois  Vehicle Code, purchased within the district area by
 2    or on behalf of an insurance company to replace  a  passenger
 3    car of an insured person in settlement of a total loss claim.
 4    The tax imposed may not become effective before the first day
 5    of  the month following the passage of the ordinance imposing
 6    the tax and receipt of a certified copy of the  ordinance  by
 7    the  Department  of Revenue.  The Department of Revenue shall
 8    collect the tax for the district in accordance with  Sections
 9    3-2002 and 3-2003 of the Illinois Vehicle Code.
10        The  Department  shall  immediately pay over to the State
11    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
12    hereunder.  On or before the 25th day of each calendar month,
13    the Department shall prepare and certify to  the  Comptroller
14    the  disbursement of stated sums of money to named districts,
15    the districts to be those  from  which  retailers  have  paid
16    taxes  or  penalties  hereunder  to the Department during the
17    second preceding calendar month.  The amount to  be  paid  to
18    each  district shall be the amount collected hereunder during
19    the second preceding calendar month by the  Department,  less
20    any  amount  determined by the Department to be necessary for
21    the payment of refunds.  Within 10 days after receipt by  the
22    Comptroller   of   the   disbursement  certification  to  the
23    districts, provided for in this Section to be  given  to  the
24    Comptroller  by  the  Department, the Comptroller shall cause
25    the  orders  to  be  drawn  for  the  respective  amounts  in
26    accordance   with   the   directions   contained    in    the
27    certification.
28        (g)  Any  ordinance  imposing  or  discontinuing  any tax
29    under this Section shall be  adopted  and  a  certified  copy
30    thereof  filed  with  the  Department  on  or  before June 1,
31    whereupon  the  Department  of  Revenue  shall   proceed   to
32    administer  and  enforce  this Section on behalf of the Metro
33    East Mass Transit District as of September 1  next  following
34    such  adoption  and  filing.   Beginning  January 1, 1992, an
 
                            -139-          LRB9110257SMdvam06
 1    ordinance or resolution imposing  or  discontinuing  the  tax
 2    hereunder shall be adopted and a certified copy thereof filed
 3    with  the  Department  on  or  before  the first day of July,
 4    whereupon the Department  shall  proceed  to  administer  and
 5    enforce  this  Section  as  of  the first day of October next
 6    following such adoption and  filing.   Beginning  January  1,
 7    1993, except as provided in subsection (d-5) of this Section,
 8    an  ordinance or resolution imposing or discontinuing the tax
 9    hereunder shall be adopted and a certified copy thereof filed
10    with the Department on or before the first  day  of  October,
11    whereupon  the  Department  shall  proceed  to administer and
12    enforce this Section as of the  first  day  of  January  next
13    following such adoption and filing.
14        (h)  The   State   Department   of  Revenue  shall,  upon
15    collecting any taxes as provided in  this  Section,  pay  the
16    taxes  over  to  the  State  Treasurer  as  trustee  for  the
17    District. The taxes shall be held in a trust fund outside the
18    State  Treasury.  On  or before the 25th day of each calendar
19    month, the State Department  of  Revenue  shall  prepare  and
20    certify  to  the  Comptroller  of  the  State of Illinois the
21    amount to be paid to the District, which shall  be  the  then
22    balance  in  the  fund,  less  any  amount  determined by the
23    Department to be necessary for the payment of refunds. Within
24    10 days after receipt by the Comptroller of the certification
25    of the amount to be paid to  the  District,  the  Comptroller
26    shall  cause  an order to be drawn for payment for the amount
27    in accordance with the direction in the certification.
28    (Source: P.A. 91-51, eff. 6-30-99.)

29        Section 45.  The Regional Transportation Authority Act is
30    amended by changing Section 4.03 as follows:

31        (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
32        Sec. 4.03.  Taxes.
 
                            -140-          LRB9110257SMdvam06
 1        (a)  In order to carry out any of the powers or  purposes
 2    of the Authority, the Board may by ordinance adopted with the
 3    concurrence of 9 of the then Directors, impose throughout the
 4    metropolitan  region any or all of the taxes provided in this
 5    Section. Except as otherwise  provided  in  this  Act,  taxes
 6    imposed  under  this  Section  and  civil  penalties  imposed
 7    incident thereto shall be collected and enforced by the State
 8    Department of Revenue. The Department shall have the power to
 9    administer  and enforce the taxes and to determine all rights
10    for refunds for erroneous payments of the taxes.
11        (b)  The Board may impose  a  public  transportation  tax
12    upon  all  persons  engaged in the metropolitan region in the
13    business of selling at retail motor  fuel  for  operation  of
14    motor  vehicles  upon  public highways. The tax shall be at a
15    rate not to exceed 5% of the gross receipts from the sales of
16    motor fuel in the course of the business.  As  used  in  this
17    Act,  the term "motor fuel" shall have the same meaning as in
18    the Motor Fuel Tax Act.  The Board may provide for details of
19    the tax.  The provisions of any tax shall conform, as closely
20    as may be practicable, to the  provisions  of  the  Municipal
21    Retailers  Occupation  Tax Act, including without limitation,
22    conformity to penalties with respect to the tax  imposed  and
23    as  to  the  powers  of  the  State  Department of Revenue to
24    promulgate and enforce rules and regulations relating to  the
25    administration  and  enforcement of the provisions of the tax
26    imposed, except that reference in the Act to any municipality
27    shall refer to the Authority and the  tax  shall  be  imposed
28    only  with regard to receipts from sales of motor fuel in the
29    metropolitan region, at rates as limited by this Section.
30        If the Board has not imposed a tax under this  subsection
31    before  the effective date of this amendatory Act of the 91st
32    General Assembly, then the Board shall not impose such a  tax
33    on  or after that date.  If the Board has imposed a tax under
34    this subsection before the effective date of this  amendatory
 
                            -141-          LRB9110257SMdvam06
 1    Act  of  91st  General  Assembly,  then  the  Board shall not
 2    increase the rate of the tax on or after that date. If, as  a
 3    result  of  the provisions of this amendatory Act of the 91st
 4    General Assembly, the rate of tax  imposed  on  the  sale  of
 5    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
 6    returns to 6.25%, then the prohibition against imposing a tax
 7    on the sale of motor fuel and  gasohol  and  the  prohibition
 8    against an increase in the rate of any tax already imposed on
 9    the sale of motor fuel and gasohol are no longer in effect.
10        (c)  In  connection  with the tax imposed under paragraph
11    (b) of this Section the Board  may  impose  a  tax  upon  the
12    privilege  of using in the metropolitan region motor fuel for
13    the operation of a motor vehicle upon  public  highways,  the
14    tax  to be at a rate not in excess of the rate of tax imposed
15    under paragraph (b) of this Section.  The Board  may  provide
16    for details of the tax.
17        If  the Board has not imposed a tax under this subsection
18    before the effective date of this amendatory Act of the  91st
19    General  Assembly, then the Board shall not impose such a tax
20    on or after that date.  If the Board has imposed a tax  under
21    this  subsection before the effective date of this amendatory
22    Act of 91st  General  Assembly,  then  the  Board  shall  not
23    increase  the rate of the tax on or after that date. If, as a
24    result of the provisions of this amendatory Act of  the  91st
25    General  Assembly,  the  rate  of  tax imposed on the sale of
26    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
27    returns to 6.25%, then the prohibition against imposing a tax
28    on  the  sale  of  motor fuel and gasohol and the prohibition
29    against an increase in the rate of any tax already imposed on
30    the sale of motor fuel and gasohol are no longer in effect.
31        (d)  The Board may impose a  motor  vehicle  parking  tax
32    upon  the  privilege  of parking motor vehicles at off-street
33    parking facilities in the metropolitan region at which a  fee
34    is charged, and may provide for reasonable classifications in
 
                            -142-          LRB9110257SMdvam06
 1    and exemptions to the tax, for administration and enforcement
 2    thereof  and  for  civil penalties and refunds thereunder and
 3    may  provide  criminal  penalties  thereunder,  the   maximum
 4    penalties  not  to  exceed  the  maximum  criminal  penalties
 5    provided  in the Retailers' Occupation Tax Act. The Authority
 6    may collect and enforce the tax itself or  by  contract  with
 7    any  unit  of  local  government.   The  State  Department of
 8    Revenue shall have no responsibility for the  collection  and
 9    enforcement  unless  the Department agrees with the Authority
10    to undertake the collection and enforcement.  As used in this
11    paragraph, the term "parking facility" means a  parking  area
12    or  structure  having parking spaces for more than 2 vehicles
13    at which motor vehicles are permitted to park in  return  for
14    an  hourly, daily, or other periodic fee, whether publicly or
15    privately owned, but does not include  parking  spaces  on  a
16    public  street,  the  use  of  which  is regulated by parking
17    meters.
18        (e)  The  Board  may  impose  a  Regional  Transportation
19    Authority Retailers' Occupation Tax upon all persons  engaged
20    in  the  business  of  selling  tangible personal property at
21    retail in the metropolitan region.  In Cook  County  the  tax
22    rate shall be 1% of the gross receipts from sales of food for
23    human  consumption  that  is  to be consumed off the premises
24    where it is sold (other than alcoholic beverages, soft drinks
25    and food that has been prepared  for  immediate  consumption)
26    and   prescription   and  nonprescription  medicines,  drugs,
27    medical appliances  and  insulin,  urine  testing  materials,
28    syringes and needles used by diabetics, and 3/4% of the gross
29    receipts  from other taxable sales made in the course of that
30    business.  In DuPage, Kane, Lake, McHenry, and Will Counties,
31    the tax rate shall be 1/4% of the  gross  receipts  from  all
32    taxable  sales  made in the course of that business.  The tax
33    imposed under this Section and all civil penalties  that  may
34    be  assessed  as  an  incident thereof shall be collected and
 
                            -143-          LRB9110257SMdvam06
 1    enforced by the State Department of Revenue.  The  Department
 2    shall have full power to administer and enforce this Section;
 3    to collect all taxes and penalties so collected in the manner
 4    hereinafter  provided;  and to determine all rights to credit
 5    memoranda arising on account of the erroneous payment of  tax
 6    or   penalty   hereunder.   In  the  administration  of,  and
 7    compliance with this Section, the Department and persons  who
 8    are  subject  to  this  Section  shall  have the same rights,
 9    remedies, privileges, immunities, powers and duties,  and  be
10    subject  to  the  same conditions, restrictions, limitations,
11    penalties, exclusions, exemptions and definitions  of  terms,
12    and  employ the same modes of procedure, as are prescribed in
13    Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through  2-65
14    (in  respect  to  all provisions therein other than the State
15    rate of tax), 2c, 3 (except as to the  disposition  of  taxes
16    and  penalties  collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
17    5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
18    of the Retailers' Occupation Tax Act and Section 3-7  of  the
19    Uniform  Penalty  and  Interest  Act,  as  fully  as if those
20    provisions were set forth herein.
21        If the Board has not imposed a tax under this  subsection
22    on  the  sale  of  motor fuel or gasohol before the effective
23    date of this amendatory Act of  the  91st  General  Assembly,
24    then  the  Board shall not impose such a tax on or after that
25    date.  If the Board has imposed a tax under  this  subsection
26    on  the  sale  of  motor fuel or gasohol before the effective
27    date of this amendatory Act of  the  91st  General  Assembly,
28    then  the  Board shall not increase the rate of the tax on or
29    after that date. If, as a result of the  provisions  of  this
30    amendatory  Act of the 91st General Assembly, the rate of tax
31    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
32    Retailers'  Occupation  Tax  Act  returns  to 6.25%, then the
33    prohibition against imposing a tax on the sale of motor  fuel
34    and  gasohol  and  the prohibition against an increase in the
 
                            -144-          LRB9110257SMdvam06
 1    rate of any tax already imposed on the sale of motor fuel and
 2    gasohol are no longer in effect.
 3        Persons subject to any tax imposed  under  the  authority
 4    granted  in  this  Section may reimburse themselves for their
 5    seller's tax liability hereunder by  separately  stating  the
 6    tax  as  an  additional charge, which charge may be stated in
 7    combination in a single amount with State taxes that  sellers
 8    are  required  to  collect  under  the Use Tax Act, under any
 9    bracket schedules the Department may prescribe.
10        Whenever the Department determines that a  refund  should
11    be made under this Section to a claimant instead of issuing a
12    credit  memorandum,  the  Department  shall  notify the State
13    Comptroller, who shall cause the warrant to be drawn for  the
14    amount   specified,   and   to   the  person  named,  in  the
15    notification from the Department.  The refund shall  be  paid
16    by  the  State  Treasurer  out of the Regional Transportation
17    Authority tax fund established under paragraph  (n)  of  this
18    Section.
19        If  a  tax  is  imposed  under this subsection (e), a tax
20    shall also be imposed under subsections (f) and (g)  of  this
21    Section.
22        For  the  purpose of determining whether a tax authorized
23    under this Section is applicable, a retail sale by a producer
24    of coal or other mineral mined in  Illinois,  is  a  sale  at
25    retail  at the place where the coal or other mineral mined in
26    Illinois is extracted from the earth. This paragraph does not
27    apply to coal or  other  mineral  when  it  is  delivered  or
28    shipped  by  the  seller  to the purchaser at a point outside
29    Illinois so  that  the  sale  is  exempt  under  the  Federal
30    Constitution as a sale in interstate or foreign commerce.
31        Nothing  in  this Section shall be construed to authorize
32    the Regional Transportation Authority to impose  a  tax  upon
33    the  privilege  of  engaging  in  any business that under the
34    Constitution of the United States may not be made the subject
 
                            -145-          LRB9110257SMdvam06
 1    of taxation by this State.
 2        (f)  If a tax has been imposed under paragraph (e), a tax
 3    shall also be  imposed  upon  all  persons  engaged,  in  the
 4    metropolitan  region  in  the  business  of  making  sales of
 5    service, who as an incident to making the sales  of  service,
 6    transfer  tangible  personal property within the metropolitan
 7    region, either in the form of tangible personal  property  or
 8    in  the  form  of  real  estate  as  an incident to a sale of
 9    service.  In Cook County, the tax rate shall be:  (1)  1%  of
10    the  serviceman's  cost  price of food prepared for immediate
11    consumption and transferred incident to  a  sale  of  service
12    subject  to  the service occupation tax by an entity licensed
13    under the Hospital Licensing Act or the Nursing Home Care Act
14    that is located in the metropolitan region;  (2)  1%  of  the
15    selling  price  of  food  for human consumption that is to be
16    consumed off the  premises  where  it  is  sold  (other  than
17    alcoholic  beverages,  soft  drinks  and  food  that has been
18    prepared for  immediate  consumption)  and  prescription  and
19    nonprescription  medicines,  drugs,  medical  appliances  and
20    insulin,  urine  testing materials, syringes and needles used
21    by diabetics; and (3) 3/4% of the selling  price  from  other
22    taxable  sales of tangible personal property transferred.  In
23    DuPage, Kane, Lake, McHenry and Will Counties the rate  shall
24    be  1/4%  of  the  selling  price  of  all  tangible personal
25    property transferred.
26        The tax  imposed  under  this  paragraph  and  all  civil
27    penalties  that  may be assessed as an incident thereof shall
28    be collected and enforced by the State Department of Revenue.
29    The Department  shall  have  full  power  to  administer  and
30    enforce  this  paragraph;  to collect all taxes and penalties
31    due hereunder; to dispose of taxes and penalties collected in
32    the manner hereinafter provided; and to determine all  rights
33    to  credit  memoranda  arising  on  account  of the erroneous
34    payment of tax or penalty hereunder.  In  the  administration
 
                            -146-          LRB9110257SMdvam06
 1    of  and  compliance  with  this paragraph, the Department and
 2    persons who are subject to this paragraph shall have the same
 3    rights, remedies, privileges, immunities, powers and  duties,
 4    and   be   subject  to  the  same  conditions,  restrictions,
 5    limitations,   penalties,    exclusions,    exemptions    and
 6    definitions of terms, and employ the same modes of procedure,
 7    as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
 8    respect  to  all provisions therein other than the State rate
 9    of tax), 4 (except that the reference to the State  shall  be
10    to  the  Authority), 5, 7, 8 (except that the jurisdiction to
11    which the tax shall be a debt to the extent indicated in that
12    Section 8 shall be  the  Authority),  9  (except  as  to  the
13    disposition of taxes and penalties collected, and except that
14    the returned merchandise credit for this tax may not be taken
15    against  any  State  tax),  10,  11, 12 (except the reference
16    therein to Section 2b of the Retailers' Occupation Tax  Act),
17    13  (except  that  any  reference to the State shall mean the
18    Authority), the first paragraph of Section 15, 16, 17, 18, 19
19    and 20 of the Service Occupation Tax Act and Section  3-7  of
20    the  Uniform  Penalty  and Interest Act, as fully as if those
21    provisions were set forth herein.
22        If the Board has not imposed a tax under this  subsection
23    on  the  selling  price  of  motor fuel or gasohol before the
24    effective date of this amendatory Act  of  the  91st  General
25    Assembly,  then  the  Board shall not impose such a tax on or
26    after that date.  If the Board has imposed a tax  under  this
27    subsection  on  the  selling  price  of motor fuel or gasohol
28    before the effective date of this amendatory Act of the  91st
29    General  Assembly, then the Board shall not increase the rate
30    of the tax on or after that date. If,  as  a  result  of  the
31    provisions  of  this  amendatory  Act  of  the  91st  General
32    Assembly,  the  rate of tax imposed on the sale of motor fuel
33    and gasohol by the Retailers' Occupation Tax Act  returns  to
34    6.25%,  then  the  prohibition  against imposing a tax on the
 
                            -147-          LRB9110257SMdvam06
 1    sale of motor fuel and gasohol and the prohibition against an
 2    increase in the rate of any tax already imposed on  the  sale
 3    of motor fuel and gasohol are no longer in effect.
 4        Persons  subject  to  any tax imposed under the authority
 5    granted in this paragraph may reimburse themselves for  their
 6    serviceman's  tax  liability  hereunder by separately stating
 7    the tax as an additional charge, that charge may be stated in
 8    combination in a single amount with State tax that servicemen
 9    are authorized to collect under  the  Service  Use  Tax  Act,
10    under any bracket schedules the Department may prescribe.
11        Whenever  the  Department determines that a refund should
12    be made under this paragraph to a claimant instead of issuing
13    a credit memorandum, the Department shall  notify  the  State
14    Comptroller,  who shall cause the warrant to be drawn for the
15    amount specified, and to the person named in the notification
16    from the Department.  The refund shall be paid by  the  State
17    Treasurer  out  of  the Regional Transportation Authority tax
18    fund established under paragraph (n) of this Section.
19        Nothing in this paragraph shall be construed to authorize
20    the Authority to impose a tax upon the privilege of  engaging
21    in  any  business  that  under the Constitution of the United
22    States may not be made the subject of taxation by the State.
23        (g)  If a tax has been imposed under paragraph (e), a tax
24    shall also be imposed upon the  privilege  of  using  in  the
25    metropolitan  region,  any item of tangible personal property
26    that is purchased outside the metropolitan region  at  retail
27    from  a  retailer,  and  that is titled or registered with an
28    agency of this State's government.  In Cook  County  the  tax
29    rate  shall  be  3/4%  of  the  selling price of the tangible
30    personal property, as "selling price" is defined in  the  Use
31    Tax  Act.   In  DuPage, Kane, Lake, McHenry and Will counties
32    the tax rate shall be  1/4%  of  the  selling  price  of  the
33    tangible  personal property, as "selling price" is defined in
34    the Use Tax Act.  The tax shall  be  collected  from  persons
 
                            -148-          LRB9110257SMdvam06
 1    whose  Illinois  address for titling or registration purposes
 2    is given as being in the metropolitan region. The  tax  shall
 3    be  collected  by  the Department of Revenue for the Regional
 4    Transportation Authority.  The tax must be paid to the State,
 5    or an exemption  determination  must  be  obtained  from  the
 6    Department  of  Revenue,  before  the title or certificate of
 7    registration for the property may be issued. The tax or proof
 8    of exemption may be transmitted to the Department by  way  of
 9    the  State agency with which, or the State officer with whom,
10    the tangible personal property must be titled  or  registered
11    if  the  Department  and  the  State  agency or State officer
12    determine that this procedure will expedite the processing of
13    applications for title or registration.
14        The Department shall have full power  to  administer  and
15    enforce  this  paragraph; to collect all taxes, penalties and
16    interest due hereunder; to dispose of  taxes,  penalties  and
17    interest collected in the manner hereinafter provided; and to
18    determine  all  rights to credit memoranda or refunds arising
19    on account of  the  erroneous  payment  of  tax,  penalty  or
20    interest  hereunder.  In the administration of and compliance
21    with this paragraph,  the  Department  and  persons  who  are
22    subject  to  this  paragraph  shall  have  the  same  rights,
23    remedies,  privileges,  immunities, powers and duties, and be
24    subject to the same  conditions,  restrictions,  limitations,
25    penalties,  exclusions,  exemptions  and definitions of terms
26    and employ the same modes of procedure, as are prescribed  in
27    Sections  2 (except the definition of "retailer maintaining a
28    place of business in this State"),  3  through  3-80  (except
29    provisions  pertaining  to  the State rate of tax, and except
30    provisions concerning collection or refunding of the  tax  by
31    retailers),  4,  11, 12, 12a, 14, 15, 19 (except the portions
32    pertaining  to  claims  by  retailers  and  except  the  last
33    paragraph concerning refunds), 20, 21 and 22 of the  Use  Tax
34    Act,  and  are not inconsistent with this paragraph, as fully
 
                            -149-          LRB9110257SMdvam06
 1    as if those provisions were set forth herein.
 2        If the Board has not imposed a tax under this  subsection
 3    on the use of motor fuel or gasohol before the effective date
 4    of this amendatory Act of the 91st General Assembly, then the
 5    Board  shall not impose such a tax on or after that date.  If
 6    the Board has imposed a tax under this subsection on the  use
 7    of  motor  fuel  or gasohol before the effective date of this
 8    amendatory Act of the 91st General Assembly, then  the  Board
 9    shall not increase the rate of the tax on or after that date.
10    If,  as  a result of the provisions of this amendatory Act of
11    the 91st General Assembly, the rate of  tax  imposed  on  the
12    sale  of  motor fuel and gasohol by the Retailers' Occupation
13    Tax Act  returns  to  6.25%,  then  the  prohibition  against
14    imposing  a tax on the sale of motor fuel and gasohol and the
15    prohibition against an  increase  in  the  rate  of  any  tax
16    already  imposed on the sale of motor fuel and gasohol are no
17    longer in effect.
18        Whenever the Department determines that a  refund  should
19    be made under this paragraph to a claimant instead of issuing
20    a  credit  memorandum,  the Department shall notify the State
21    Comptroller, who shall cause the order to be  drawn  for  the
22    amount specified, and to the person named in the notification
23    from  the  Department.  The refund shall be paid by the State
24    Treasurer out of the Regional  Transportation  Authority  tax
25    fund established under paragraph (n) of this Section.
26        (h)  The  Authority  may impose a replacement vehicle tax
27    of $50 on any passenger car as defined in  Section  1-157  of
28    the  Illinois  Vehicle Code purchased within the metropolitan
29    region by or on behalf of an insurance company to  replace  a
30    passenger  car  of an insured person in settlement of a total
31    loss claim. The tax imposed may not become  effective  before
32    the  first  day  of  the  month  following the passage of the
33    ordinance imposing the tax and receipt of a certified copy of
34    the ordinance by the Department of Revenue.   The  Department
 
                            -150-          LRB9110257SMdvam06
 1    of  Revenue  shall  collect  the  tax  for  the  Authority in
 2    accordance with Sections 3-2002 and 3-2003  of  the  Illinois
 3    Vehicle Code.
 4        The  Department  shall  immediately pay over to the State
 5    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
 6    hereunder.  On or before the 25th day of each calendar month,
 7    the Department shall prepare and certify to  the  Comptroller
 8    the  disbursement  of  stated sums of money to the Authority.
 9    The amount to be paid to the Authority shall  be  the  amount
10    collected  hereunder  during  the  second  preceding calendar
11    month by the Department, less any amount  determined  by  the
12    Department  to  be  necessary  for  the  payment  of refunds.
13    Within 10 days  after  receipt  by  the  Comptroller  of  the
14    disbursement  certification  to the Authority provided for in
15    this  Section  to  be  given  to  the  Comptroller   by   the
16    Department,  the  Comptroller  shall  cause  the orders to be
17    drawn for that  amount  in  accordance  with  the  directions
18    contained in the certification.
19        (i)  The  Board  may not impose any other taxes except as
20    it may from time to time be authorized by law to impose.
21        (j)  A certificate of registration issued  by  the  State
22    Department  of  Revenue  to  a  retailer under the Retailers'
23    Occupation Tax Act or under the Service  Occupation  Tax  Act
24    shall  permit  the registrant to engage in a business that is
25    taxed under the tax imposed under paragraphs (b), (e), (f) or
26    (g) of this Section and no additional registration  shall  be
27    required  under  the tax.  A certificate issued under the Use
28    Tax Act or the Service Use Tax Act shall be  applicable  with
29    regard  to  any  tax  imposed  under  paragraph  (c)  of this
30    Section.
31        (k)  The provisions of any tax  imposed  under  paragraph
32    (c)  of  this  Section  shall  conform  as  closely as may be
33    practicable to the provisions of the Use Tax  Act,  including
34    without limitation conformity as to penalties with respect to
 
                            -151-          LRB9110257SMdvam06
 1    the  tax imposed and as to the powers of the State Department
 2    of Revenue to promulgate and enforce  rules  and  regulations
 3    relating   to  the  administration  and  enforcement  of  the
 4    provisions of the tax imposed. The  taxes  shall  be  imposed
 5    only  on  use  within the metropolitan region and at rates as
 6    provided in the paragraph.
 7        (l)  The  Board  in  imposing  any  tax  as  provided  in
 8    paragraphs (b) and (c) of this Section, shall, after  seeking
 9    the  advice of the State Department of Revenue, provide means
10    for retailers, users or purchasers of motor fuel for purposes
11    other than those with  regard  to  which  the  taxes  may  be
12    imposed as provided in those paragraphs to receive refunds of
13    taxes  improperly  paid,  which provisions may be at variance
14    with the refund provisions as applicable under the  Municipal
15    Retailers  Occupation  Tax  Act.   The  State  Department  of
16    Revenue  may  provide  for  certificates  of registration for
17    users or purchasers of motor fuel  for  purposes  other  than
18    those  with  regard to which taxes may be imposed as provided
19    in paragraphs (b) and (c) of this Section to  facilitate  the
20    reporting and nontaxability of the exempt sales or uses.
21        (m)  Any  ordinance  imposing  or  discontinuing  any tax
22    under this Section shall be  adopted  and  a  certified  copy
23    thereof  filed  with  the  Department  on  or  before June 1,
24    whereupon  the  Department  of  Revenue  shall   proceed   to
25    administer and enforce this Section on behalf of the Regional
26    Transportation  Authority  as  of  September 1 next following
27    such adoption and  filing.  Beginning  January  1,  1992,  an
28    ordinance  or  resolution  imposing  or discontinuing the tax
29    hereunder shall be adopted and a certified copy thereof filed
30    with the Department on or  before  the  first  day  of  July,
31    whereupon  the  Department  shall  proceed  to administer and
32    enforce this Section as of the  first  day  of  October  next
33    following  such  adoption  and  filing.  Beginning January 1,
34    1993, an ordinance or resolution  imposing  or  discontinuing
 
                            -152-          LRB9110257SMdvam06
 1    the  tax  hereunder  shall  be  adopted  and a certified copy
 2    thereof filed with the Department on or before the first  day
 3    of   October,  whereupon  the  Department  shall  proceed  to
 4    administer and enforce this Section as of the  first  day  of
 5    January next following such adoption and filing.
 6        (n)  The   State   Department   of  Revenue  shall,  upon
 7    collecting any taxes as provided in  this  Section,  pay  the
 8    taxes  over  to  the  State  Treasurer  as  trustee  for  the
 9    Authority.   The  taxes shall be held in a trust fund outside
10    the State Treasury.  On  or  before  the  25th  day  of  each
11    calendar month, the State Department of Revenue shall prepare
12    and  certify  to the Comptroller of the State of Illinois the
13    amount to be paid to the Authority, which shall be  the  then
14    balance  in  the  fund,  less  any  amount  determined by the
15    Department to be necessary for the payment  of  refunds.  The
16    State  Department  of  Revenue  shall  also  certify  to  the
17    Authority  the amount of taxes collected in each County other
18    than Cook County in the metropolitan region less  the  amount
19    necessary  for  the  payment  of  refunds to taxpayers in the
20    County.  With regard to the County of Cook, the certification
21    shall specify the amount of taxes collected within  the  City
22    of  Chicago  less  the  amount  necessary  for the payment of
23    refunds to taxpayers in the City of Chicago  and  the  amount
24    collected  in  that portion of Cook County outside of Chicago
25    less the amount necessary  for  the  payment  of  refunds  to
26    taxpayers  in that portion of Cook County outside of Chicago.
27    Within 10 days  after  receipt  by  the  Comptroller  of  the
28    certification  of the amount to be paid to the Authority, the
29    Comptroller shall cause an order to be drawn for the  payment
30    for  the  amount  in  accordance  with  the  direction in the
31    certification.
32        In addition to the disbursement required by the preceding
33    paragraph, an allocation shall be made in July 1991 and  each
34    year  thereafter  to  the  Regional Transportation Authority.
 
                            -153-          LRB9110257SMdvam06
 1    The allocation shall be  made  in  an  amount  equal  to  the
 2    average  monthly  distribution  during the preceding calendar
 3    year (excluding the 2 months  of  lowest  receipts)  and  the
 4    allocation  shall  include  the  amount  of  average  monthly
 5    distribution   from  the  Regional  Transportation  Authority
 6    Occupation and Use Tax Replacement  Fund.   The  distribution
 7    made  in  July  1992  and  each  year  thereafter  under this
 8    paragraph and the preceding paragraph shall be reduced by the
 9    amount allocated and disbursed under this  paragraph  in  the
10    preceding  calendar  year.   The  Department of Revenue shall
11    prepare and certify to the Comptroller for  disbursement  the
12    allocations made in accordance with this paragraph.
13        (o)  Failure  to adopt a budget ordinance or otherwise to
14    comply with Section 4.01 of this Act or to adopt a  Five-year
15    Program  or otherwise to comply with paragraph (b) of Section
16    2.01 of this Act shall not affect the  validity  of  any  tax
17    imposed by the Authority otherwise in conformity with law.
18        (p)  At  no  time  shall  a  public transportation tax or
19    motor vehicle parking tax authorized  under  paragraphs  (b),
20    (c)  and (d) of this Section be in effect at the same time as
21    any retailers' occupation,  use  or  service  occupation  tax
22    authorized  under paragraphs (e), (f) and (g) of this Section
23    is in effect.
24        Any  taxes  imposed  under  the  authority  provided   in
25    paragraphs (b), (c) and (d) shall remain in effect only until
26    the  time as any tax authorized by paragraphs (e), (f) or (g)
27    of this Section are imposed and becomes effective.  Once  any
28    tax  authorized  by paragraphs (e), (f) or (g) is imposed the
29    Board may not reimpose taxes as authorized in paragraphs (b),
30    (c) and (d) of the  Section  unless  any  tax  authorized  by
31    paragraphs   (e),   (f)   or  (g)  of  this  Section  becomes
32    ineffective by means other than an ordinance of the Board.
33        (q)  Any  existing  rights,  remedies   and   obligations
34    (including   enforcement   by   the  Regional  Transportation
 
                            -154-          LRB9110257SMdvam06
 1    Authority) arising under any  tax  imposed  under  paragraphs
 2    (b),  (c) or (d) of this Section shall not be affected by the
 3    imposition of a tax under paragraphs (e), (f) or (g) of  this
 4    Section.
 5    (Source: P.A. 91-51, eff. 6-30-99.)

 6        Section  50.  The Water Commission Act of 1985 is amended
 7    by changing Section 4 as follows:

 8        (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
 9        Sec. 4.  Taxes.
10        (a)  The board  of  commissioners  of  any  county  water
11    commission may, by ordinance, impose throughout the territory
12    of  the  commission  any or all of the taxes provided in this
13    Section for its corporate purposes. However, no county  water
14    commission  may  impose  any  such  tax unless the commission
15    certifies the proposition of imposing the tax to  the  proper
16    election  officials,  who shall submit the proposition to the
17    voters residing in the territory at an election in accordance
18    with the general election law, and the proposition  has  been
19    approved by a majority of those voting on the proposition.
20        The  proposition shall be in the form provided in Section
21    5 or shall be substantially in the following form:
22    -------------------------------------------------------------
23        Shall the (insert corporate
24    name of county water commission)           YES
25    impose (state type of tax or         ------------------------
26    taxes to be imposed) at the                NO
27    rate of 1/4%?
28    -------------------------------------------------------------
29        Taxes imposed under  this  Section  and  civil  penalties
30    imposed  incident  thereto shall be collected and enforced by
31    the State Department of Revenue. The  Department  shall  have
32    the  power  to  administer  and  enforce  the  taxes  and  to
 
                            -155-          LRB9110257SMdvam06
 1    determine  all  rights  for refunds for erroneous payments of
 2    the taxes.
 3        (b)  The board of commissioners may impose a County Water
 4    Commission Retailers' Occupation Tax upon all persons engaged
 5    in the business of  selling  tangible  personal  property  at
 6    retail  in  the territory of the commission at a rate of 1/4%
 7    of the gross receipts from the sales made in  the  course  of
 8    such  business  within  the territory.  The tax imposed under
 9    this paragraph and all civil penalties that may  be  assessed
10    as an incident thereof shall be collected and enforced by the
11    State  Department  of Revenue. The Department shall have full
12    power to administer and enforce this  paragraph;  to  collect
13    all  taxes  and  penalties due hereunder; to dispose of taxes
14    and  penalties  so  collected  in  the   manner   hereinafter
15    provided;  and  to  determine  all rights to credit memoranda
16    arising on account of the erroneous payment of tax or penalty
17    hereunder.  In the administration of,  and  compliance  with,
18    this paragraph, the Department and persons who are subject to
19    this   paragraph   shall  have  the  same  rights,  remedies,
20    privileges, immunities, powers and duties, and be subject  to
21    the  same  conditions,  restrictions, limitations, penalties,
22    exclusions, exemptions and definitions of terms,  and  employ
23    the same modes of procedure, as are prescribed in Sections 1,
24    1a,  1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
25    to all provisions therein other than the State  rate  of  tax
26    except that food for human consumption that is to be consumed
27    off  the  premises  where  it  is  sold (other than alcoholic
28    beverages, soft drinks, and food that has been  prepared  for
29    immediate  consumption)  and prescription and nonprescription
30    medicine,  drugs,  medical  appliances  and  insulin,   urine
31    testing  materials,  syringes, and needles used by diabetics,
32    for human use, shall not be subject to tax hereunder), 2c,  3
33    (except   as  to  the  disposition  of  taxes  and  penalties
34    collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
 
                            -156-          LRB9110257SMdvam06
 1    5l, 6, 6a, 6b, 6c, 7,  8,  9,  10,  11,  12  and  13  of  the
 2    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
 3    Penalty and Interest Act, as fully  as  if  those  provisions
 4    were set forth herein.
 5        If the board of commissioners has not imposed a tax under
 6    this  subsection  on the sale of motor fuel or gasohol before
 7    the effective date of this amendatory Act of the 91st General
 8    Assembly, then the board shall not impose such a  tax  on  or
 9    after that date.  If the board of commissioners has imposed a
10    tax  under  this  subsection  on  the  sale  of motor fuel or
11    gasohol before the effective date of this amendatory  Act  of
12    the  91st General Assembly, then the board shall not increase
13    the rate of the tax on or after that date. If, as a result of
14    the provisions of this amendatory Act  of  the  91st  General
15    Assembly,  the  rate of tax imposed on the sale of motor fuel
16    and gasohol by the Retailers' Occupation Tax Act  returns  to
17    6.25%,  then  the  prohibition  against imposing a tax on the
18    sale of motor fuel and gasohol and the prohibition against an
19    increase in the rate of any tax already imposed on  the  sale
20    of motor fuel and gasohol are no longer in effect.
21        Persons  subject  to  any tax imposed under the authority
22    granted in this paragraph may reimburse themselves for  their
23    seller's  tax  liability  hereunder by separately stating the
24    tax as an additional charge, which charge may  be  stated  in
25    combination,  in  a  single  amount,  with  State  taxes that
26    sellers are required to collect under the  Use  Tax  Act  and
27    under   subsection  (e)  of  Section  4.03  of  the  Regional
28    Transportation Authority Act, in accordance with such bracket
29    schedules as the Department may prescribe.
30        Whenever the Department determines that a  refund  should
31    be made under this paragraph to a claimant instead of issuing
32    a  credit  memorandum,  the Department shall notify the State
33    Comptroller, who shall cause the warrant to be drawn for  the
34    amount   specified,   and   to   the  person  named,  in  the
 
                            -157-          LRB9110257SMdvam06
 1    notification from the Department.  The refund shall  be  paid
 2    by  the  State Treasurer out of a county water commission tax
 3    fund established under paragraph (g) of this Section.
 4        For the purpose of determining whether a  tax  authorized
 5    under  this  paragraph  is  applicable,  a  retail  sale by a
 6    producer of coal or other mineral mined in Illinois is a sale
 7    at retail at the place where the coal or other mineral  mined
 8    in Illinois is extracted from the earth.  This paragraph does
 9    not  apply  to  coal or other mineral when it is delivered or
10    shipped by the seller to the purchaser  at  a  point  outside
11    Illinois  so  that  the  sale  is  exempt  under  the Federal
12    Constitution as a sale in interstate or foreign commerce.
13        If a tax is imposed under this subsection (b) a tax shall
14    also be  imposed  under  subsections  (c)  and  (d)  of  this
15    Section.
16        Nothing in this paragraph shall be construed to authorize
17    a  county water commission to impose a tax upon the privilege
18    of engaging in any business which under the  Constitution  of
19    the  United States may not be made the subject of taxation by
20    this State.
21        (c)  If a tax has been imposed under  subsection  (b),  a
22    tax  shall  also  be imposed upon all persons engaged, in the
23    territory of the commission, in the business of making  sales
24    of  service,  who,  as  an  incident  to  making the sales of
25    service,  transfer  tangible  personal  property  within  the
26    territory. The tax rate shall be 1/4% of the selling price of
27    tangible  personal  property  so   transferred   within   the
28    territory.    The  tax  imposed  under this paragraph and all
29    civil penalties that may be assessed as an  incident  thereof
30    shall  be  collected  and enforced by the State Department of
31    Revenue. The Department shall have full power  to  administer
32    and   enforce  this  paragraph;  to  collect  all  taxes  and
33    penalties due hereunder; to dispose of taxes and penalties so
34    collected  in  the  manner  hereinafter  provided;   and   to
 
                            -158-          LRB9110257SMdvam06
 1    determine  all  rights to credit memoranda arising on account
 2    of the erroneous payment of tax or penalty hereunder.  In the
 3    administration of, and compliance with, this  paragraph,  the
 4    Department  and  persons  who  are  subject to this paragraph
 5    shall have the same rights, remedies, privileges, immunities,
 6    powers and duties, and be subject  to  the  same  conditions,
 7    restrictions,  limitations, penalties, exclusions, exemptions
 8    and definitions of  terms,  and  employ  the  same  modes  of
 9    procedure, as are prescribed in Sections 1a-1, 2 (except that
10    the   reference  to  State  in  the  definition  of  supplier
11    maintaining a place of business in this State shall mean  the
12    territory  of the commission), 2a, 3 through 3-50 (in respect
13    to all provisions therein other than the State  rate  of  tax
14    except that food for human consumption that is to be consumed
15    off  the  premises  where  it  is  sold (other than alcoholic
16    beverages, soft drinks, and food that has been  prepared  for
17    immediate  consumption)  and prescription and nonprescription
18    medicines,  drugs,  medical  appliances  and  insulin,  urine
19    testing materials, syringes, and needles used  by  diabetics,
20    for  human  use,  shall  not  be subject to tax hereunder), 4
21    (except that the reference to  the  State  shall  be  to  the
22    territory  of  the  commission),  5,  7,  8  (except that the
23    jurisdiction to which the tax shall be a debt to  the  extent
24    indicated  in  that  Section  8  shall  be the commission), 9
25    (except  as  to  the  disposition  of  taxes  and   penalties
26    collected and except that the returned merchandise credit for
27    this  tax may not be taken against any State tax), 10, 11, 12
28    (except the reference therein to Section 2b of the Retailers'
29    Occupation Tax Act), 13 (except that  any  reference  to  the
30    State  shall mean the territory of the commission), the first
31    paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20  of  the
32    Service  Occupation  Tax  Act as fully as if those provisions
33    were set forth herein.
34        If the board of commissioners has not imposed a tax under
 
                            -159-          LRB9110257SMdvam06
 1    this subsection on the selling price of motor fuel or gasohol
 2    before the effective date of this amendatory Act of the  91st
 3    General  Assembly, then the board shall not impose such a tax
 4    on or after that date.  If the  board  of  commissioners  has
 5    imposed  a  tax under this subsection on the selling price of
 6    motor fuel or gasohol  before  the  effective  date  of  this
 7    amendatory  Act  of the 91st General Assembly, then the board
 8    shall not increase the rate of the tax on or after that date.
 9    If, as a result of the provisions of this amendatory  Act  of
10    the  91st  General  Assembly,  the rate of tax imposed on the
11    sale of motor fuel and gasohol by the  Retailers'  Occupation
12    Tax  Act  returns  to  6.25%,  then  the  prohibition against
13    imposing a tax on the sale of motor fuel and gasohol and  the
14    prohibition  against  an  increase  in  the  rate  of any tax
15    already imposed on the sale of motor fuel and gasohol are  no
16    longer in effect.
17        Persons  subject  to  any tax imposed under the authority
18    granted in this paragraph may reimburse themselves for  their
19    serviceman's  tax  liability  hereunder by separately stating
20    the tax as an additional charge, which charge may  be  stated
21    in  combination,  in  a  single  amount,  with State tax that
22    servicemen are authorized to collect under  the  Service  Use
23    Tax Act, and any tax for which servicemen may be liable under
24    subsection  (f)  of  Sec. 4.03 of the Regional Transportation
25    Authority Act, in accordance with such bracket  schedules  as
26    the Department may prescribe.
27        Whenever  the  Department determines that a refund should
28    be made under this paragraph to a claimant instead of issuing
29    a credit memorandum, the Department shall  notify  the  State
30    Comptroller,  who shall cause the warrant to be drawn for the
31    amount  specified,  and  to  the   person   named,   in   the
32    notification  from  the Department.  The refund shall be paid
33    by the State Treasurer out of a county water  commission  tax
34    fund established under paragraph (g) of this Section.
 
                            -160-          LRB9110257SMdvam06
 1        Nothing in this paragraph shall be construed to authorize
 2    a  county water commission to impose a tax upon the privilege
 3    of engaging in any business which under the  Constitution  of
 4    the  United States may not be made the subject of taxation by
 5    the State.
 6        (d)  If a tax has been imposed under  subsection  (b),  a
 7    tax  shall  also  imposed upon the privilege of using, in the
 8    territory of the commission, any item  of  tangible  personal
 9    property  that  is  purchased outside the territory at retail
10    from a retailer, and that is titled  or  registered  with  an
11    agency  of  this State's government, at a rate of 1/4% of the
12    selling price of the tangible personal  property  within  the
13    territory,  as "selling price" is defined in the Use Tax Act.
14    The tax  shall  be  collected  from  persons  whose  Illinois
15    address  for  titling  or  registration  purposes is given as
16    being in the territory.  The tax shall be  collected  by  the
17    Department of Revenue for a county water commission.  The tax
18    must be paid to the State, or an exemption determination must
19    be  obtained from the Department of Revenue, before the title
20    or certificate  of  registration  for  the  property  may  be
21    issued.  The  tax or proof of exemption may be transmitted to
22    the Department by way of the State agency with which, or  the
23    State  officer with whom, the tangible personal property must
24    be titled or registered  if  the  Department  and  the  State
25    agency  or  State  officer determine that this procedure will
26    expedite  the  processing  of  applications  for   title   or
27    registration.
28        The  Department  shall  have full power to administer and
29    enforce this paragraph; to collect all taxes,  penalties  and
30    interest  due  hereunder;  to dispose of taxes, penalties and
31    interest so collected in the manner hereinafter provided; and
32    to determine  all  rights  to  credit  memoranda  or  refunds
33    arising  on  account of the erroneous payment of tax, penalty
34    or  interest  hereunder.  In  the  administration   of,   and
 
                            -161-          LRB9110257SMdvam06
 1    compliance  with  this  paragraph, the Department and persons
 2    who are subject to this paragraph shall have the same rights,
 3    remedies, privileges, immunities, powers and duties,  and  be
 4    subject  to  the  same conditions, restrictions, limitations,
 5    penalties, exclusions, exemptions and  definitions  of  terms
 6    and  employ the same modes of procedure, as are prescribed in
 7    Sections 2 (except the definition of "retailer maintaining  a
 8    place  of  business  in  this State"), 3 through 3-80 (except
 9    provisions pertaining to the State rate of  tax,  and  except
10    provisions  concerning  collection or refunding of the tax by
11    retailers, and except that food for human consumption that is
12    to be consumed off the premises where it is sold (other  than
13    alcoholic  beverages,  soft  drinks,  and  food that has been
14    prepared for  immediate  consumption)  and  prescription  and
15    nonprescription  medicines,  drugs,  medical  appliances  and
16    insulin,  urine testing materials, syringes, and needles used
17    by diabetics, for human use, shall  not  be  subject  to  tax
18    hereunder),  4,  11, 12, 12a, 14, 15, 19 (except the portions
19    pertaining  to  claims  by  retailers  and  except  the  last
20    paragraph concerning refunds), 20, 21 and 22 of the  Use  Tax
21    Act  and  Section 3-7 of the Uniform Penalty and Interest Act
22    that are not inconsistent with this paragraph, as fully as if
23    those provisions were set forth herein.
24        If the board of commissioners has not imposed a tax under
25    this subsection on the use of motor fuel  or  gasohol  before
26    the effective date of this amendatory Act of the 91st General
27    Assembly,  then  the  board shall not impose such a tax on or
28    after that date.  If the board of commissioners has imposed a
29    tax under this subsection on the use of motor fuel or gasohol
30    before the effective date of this amendatory Act of the  91st
31    General  Assembly, then the board shall not increase the rate
32    of the tax on or after that date. If,  as  a  result  of  the
33    provisions  of  this  amendatory  Act  of  the  91st  General
34    Assembly,  the  rate of tax imposed on the sale of motor fuel
 
                            -162-          LRB9110257SMdvam06
 1    and gasohol by the Retailers' Occupation Tax Act  returns  to
 2    6.25%,  then  the  prohibition  against imposing a tax on the
 3    sale of motor fuel and gasohol and the prohibition against an
 4    increase in the rate of any tax already imposed on  the  sale
 5    of motor fuel and gasohol are no longer in effect.
 6        Whenever  the  Department determines that a refund should
 7    be made under this paragraph to a claimant instead of issuing
 8    a credit memorandum, the Department shall  notify  the  State
 9    Comptroller,  who  shall  cause the order to be drawn for the
10    amount  specified,  and  to  the   person   named,   in   the
11    notification  from  the Department.  The refund shall be paid
12    by the State Treasurer out of a county water  commission  tax
13    fund established under paragraph (g) of this Section.
14        (e)  A  certificate  of  registration issued by the State
15    Department of Revenue to  a  retailer  under  the  Retailers'
16    Occupation  Tax  Act  or under the Service Occupation Tax Act
17    shall permit the registrant to engage in a business  that  is
18    taxed  under the tax imposed under paragraphs (b), (c) or (d)
19    of this Section  and  no  additional  registration  shall  be
20    required  under  the tax.  A certificate issued under the Use
21    Tax Act or the Service Use Tax Act shall be  applicable  with
22    regard  to  any  tax  imposed  under  paragraph  (c)  of this
23    Section.
24        (f)  Any ordinance  imposing  or  discontinuing  any  tax
25    under  this  Section  shall  be  adopted and a certified copy
26    thereof filed with  the  Department  on  or  before  June  1,
27    whereupon   the   Department  of  Revenue  shall  proceed  to
28    administer and enforce this Section on behalf of  the  county
29    water  commission  as  of  September  1  next  following  the
30    adoption and filing.  Beginning January 1, 1992, an ordinance
31    or  resolution  imposing  or  discontinuing the tax hereunder
32    shall be adopted and a certified copy thereof filed with  the
33    Department  on or before the first day of July, whereupon the
34    Department shall  proceed  to  administer  and  enforce  this
 
                            -163-          LRB9110257SMdvam06
 1    Section  as  of  the first day of October next following such
 2    adoption and filing.  Beginning January 1, 1993, an ordinance
 3    or resolution imposing or  discontinuing  the  tax  hereunder
 4    shall  be adopted and a certified copy thereof filed with the
 5    Department on or before the first day of  October,  whereupon
 6    the  Department  shall proceed to administer and enforce this
 7    Section as of the first day of January  next  following  such
 8    adoption and filing.
 9        (g)  The   State   Department   of  Revenue  shall,  upon
10    collecting any taxes as provided in  this  Section,  pay  the
11    taxes  over  to  the  State  Treasurer  as  trustee  for  the
12    commission.  The  taxes shall be held in a trust fund outside
13    the State Treasury.  On  or  before  the  25th  day  of  each
14    calendar month, the State Department of Revenue shall prepare
15    and  certify  to the Comptroller of the State of Illinois the
16    amount to be paid to the commission, which shall be the  then
17    balance  in  the  fund,  less  any  amount  determined by the
18    Department to be necessary for the payment of refunds. Within
19    10 days after receipt by the Comptroller of the certification
20    of the amount to be paid to the commission,  the  Comptroller
21    shall  cause  an  order  to  be drawn for the payment for the
22    amount in accordance with the direction in the certification.
23    (Source: P.A. 91-51, eff. 6-30-99.)

24        Section 99.  Effective date.  This Act takes effect  upon
25    becoming  law,  except that Sections 5 through 20 take effect
26    October 1, 2000.".

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