Public Act 90-0415 of the 90th General Assembly

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Public Act 90-0415

SB677 Enrolled                                 LRB9001431KDcc

    AN ACT in relation to taxes, amending named Acts.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The Property Tax Code is amended by changing
Section 18-165 as follows:

    (35 ILCS 200/18-165)
    Sec. 18-165. Abatement of taxes.
    (a)  Any taxing district, upon a  majority  vote  of  its
governing  authority,  may,  after  the  determination of the
assessed valuation of its property, order the clerk  of  that
county  to  abate  any  portion of its taxes on the following
types of property:
         (1)  Commercial and industrial.
              (A)  The  property   of   any   commercial   or
         industrial  firm,  including  but not limited to the
         property of any firm that is  used  for  collecting,
         separating,   storing,   or   processing  recyclable
         materials,  locating  within  the  taxing   district
         during  the  immediately preceding year from another
         state, territory, or country, or having  been  newly
         created  within  this  State  during the immediately
         preceding year, or expanding an  existing  facility.
         The  abatement shall not exceed a period of 10 years
         and the aggregate amount of  abated  taxes  for  all
         taxing   districts   combined   shall   not   exceed
         $4,000,000 $3,000,000; or
              (B)  The   property   of   any   commercial  or
         industrial development of at least 500 acres  having
         been   created  within  the  taxing  district.   The
         abatement shall not exceed a period of 20 years  and
         the  aggregate amount of abated taxes for all taxing
         districts combined shall not exceed $12,000,000.
              (C)  The  property   of   any   commercial   or
         industrial  firm  currently  located  in  the taxing
         district that expands a facility or  its  number  of
         employees.  The  abatement shall not exceed a period
         of 10 years and the aggregate amount of abated taxes
         for all taxing districts combined shall  not  exceed
         $4,000,000.  The  abatement period may be renewed at
         the option of the taxing districts.
         (2)  Horse  racing.   Any  property  in  the  taxing
    district which is used for the racing of horses and  upon
    which   capital  improvements  consisting  of  expansion,
    improvement or replacement of  existing  facilities  have
    been  made  since  July 1, 1987.  The combined abatements
    for such property from all taxing districts in any county
    shall not exceed $5,000,000 annually and shall not exceed
    a period of 10 years.
         (3)  Auto racing.  Any property designed exclusively
    for the racing of motor vehicles which became subject  to
    property taxation after September 24, 1984 and is located
    within  a  county  with  225,000  or  more  but less than
    300,000 inhabitants. Such abatement shall  not  exceed  a
    period of 10 years.
    (b)  Upon a majority vote of its governing authority, any
municipality  may,  after  the  determination of the assessed
valuation of its property, order the county  clerk  to  abate
any  portion  of  its  taxes  on any property that is located
within the corporate limits of the municipality in accordance
with Section 8-3-18 of the Illinois Municipal Code.
(Source: P.A. 87-17; 87-477; 87-895; 88-389; 88-455;  88-657,
eff. 1-1-95; 88-670, eff. 12-2-94; 89-561, eff. 1-1-97.)

    Section  10.   The  Counties  Code  is  amended by adding
Section 5-1008.5 as follows:
    (55 ILCS 5/5-1008.5 new)
    Sec. 5-1008.5.  Use and occupation taxes.
    (a)  The Rock Island County Board may adopt a  resolution
that  authorizes  a referendum on the question of whether the
county shall be authorized to impose a retailers'  occupation
tax, a service occupation tax, and a use tax at a rate of 1/4
of  1%  on  behalf  of the economic development activities of
Rock Island County and communities located within the county.
The county board shall certify the  question  to  the  proper
election  authorities  who  shall  submit the question to the
voters of the county at the next regularly scheduled election
in accordance with the general  election  law.  The  question
shall be in substantially the following form:
         Shall  Rock  Island County be authorized to impose a
    retailers' occupation tax, a service occupation tax,  and
    a  use  tax at the rate of 1/4 of 1% for the sole purpose
    of economic development  activities,  including  creation
    and retention of job opportunities, support of affordable
    housing opportunities, and enhancement of quality of life
    improvements?
    Votes  shall  be recorded as "yes" or "no". If a majority
of all votes cast on the proposition  are  in  favor  of  the
proposition, the county is authorized to impose the tax.
    (b)  The  county  shall  impose the retailers' occupation
tax upon all persons  engaged  in  the  business  of  selling
tangible  personal  property  at retail in the county, at the
rate approved by referendum, on the gross receipts  from  the
sales  made  in  the  course  of  those businesses within the
county. This additional tax may not be imposed on the sale of
food for human consumption that is to  be  consumed  off  the
premises  where  it  is sold (other than alcoholic beverages,
soft drinks, and food that has been  prepared  for  immediate
consumption) and prescription and non-prescription medicines,
drugs,   medical   appliances   and  insulin,  urine  testing
materials, syringes, and needles used by diabetics.  The  tax
imposed  under  this Section and all civil penalties that may
be assessed as an incident of the tax shall be collected  and
enforced  by  the  Department of Revenue.  The Department has
full power to administer and enforce this Section; to collect
all taxes and penalties so collected in the  manner  provided
in  this  Section;  and  to  determine  all  rights to credit
memoranda arising on account of the erroneous payment of  tax
or penalty under this Section.  In the administration of, and
compliance with, this Section, the Department and persons who
are  subject  to this Section shall (i) have the same rights,
remedies, privileges, immunities, powers and duties, (ii)  be
subject  to  the  same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of  terms,
and   (iii)  employ  the  same  modes  of  procedure  as  are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f,  1i,  1j,
1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
other than the State rate of tax), 2-15 through 2-70, 2a, 2b,
2c,  3  (except  as to the disposition of taxes and penalties
collected  and  provisions   related   to   quarter   monthly
payments),  4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, 9, 10,  11,  11a,  12,  and  13  of  the
Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully  as  if  those  provisions
were set forth in this subsection.
    Persons  subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability  by
separately  stating  the  tax  as an additional charge, which
charge may be stated in combination, in a single amount, with
State  taxes  that  sellers  are  required  to  collect,   in
accordance   with   bracket   schedules   prescribed  by  the
Department.
    Whenever the Department determines that a  refund  should
be  made  under  this  subsection  to  a  claimant instead of
issuing a credit memorandum, the Department shall notify  the
State  Comptroller,  who  shall cause the warrant to be drawn
for the amount specified, and to the  person  named,  in  the
notification  from  the Department.  The refund shall be paid
by the State Treasurer out of the tax fund  referenced  under
paragraph (g) of this Section.
    If  a  tax  is  imposed  under this subsection (b), a tax
shall also be imposed at the same rate under subsections  (c)
and (d) of this Section.
    For  the  purpose of determining whether a tax authorized
under this  Section  is  applicable,  a  retail  sale,  by  a
producer  of  coal or another mineral mined in Illinois, is a
sale at retail at the place where the coal or  other  mineral
mined   in  Illinois  is  extracted  from  the  earth.   This
paragraph does not apply to coal or another mineral  when  it
is  delivered  or shipped by the seller to the purchaser at a
point outside Illinois so that the sale is exempt  under  the
federal  Constitution  as  a  sale  in  interstate or foreign
commerce.
    Nothing in this Section shall be construed  to  authorize
the  county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
    (c)  If a tax has been imposed under  subsection  (b),  a
service occupation tax shall also be imposed at the same rate
upon  all  persons engaged, in the county, in the business of
making sales of service, who, as an incident to making  those
sales  of service, transfer tangible personal property within
the county  as  an  incident  to  a  sale  of  service.  This
additional  tax  may  not  be imposed on the sale of food for
human consumption that is to be  consumed  off  the  premises
where  it  is  sold  (other  than  alcoholic  beverages, soft
drinks,  and  food  that  has  been  prepared  for  immediate
consumption) and prescription and non-prescription medicines,
drugs,  medical  appliances  and   insulin,   urine   testing
materials,  syringes,  and needles used by diabetics. The tax
imposed under this subsection and all  civil  penalties  that
may  be assessed as an incident of the tax shall be collected
and enforced by the Department of Revenue. The Department has
full power to  administer  and  enforce  this  paragraph;  to
collect  all  taxes  and penalties due under this Section; to
dispose of taxes and penalties so  collected  in  the  manner
provided  in  this  Section;  and  to determine all rights to
credit memoranda arising on account of the erroneous  payment
of  tax or penalty under this Section.  In the administration
of, and compliance with this paragraph,  the  Department  and
persons  who are subject to this paragraph shall (i) have the
same rights, remedies, privileges,  immunities,  powers,  and
duties, (ii) be subject to the same conditions, restrictions,
limitations,    penalties,    exclusions,   exemptions,   and
definitions of terms, and (iii)  employ  the  same  modes  of
procedure  as  are  prescribed in Sections 2 (except that the
reference to State in the definition of supplier  maintaining
a place of business in this State shall mean the county), 2a,
2b,  3  through 3-55 (in respect to all provisions other than
the State rate of tax), 4 (except that the reference  to  the
State  shall  be  to  the  county),  5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to  the  extent
indicated  in  that Section 8 shall be the county), 9 (except
as to the disposition of taxes and penalties  collected,  and
except  that the returned merchandise credit for this tax may
not be taken against any  State  tax),  11,  12  (except  the
reference  to  Section  2b  of  the Retailers' Occupation Tax
Act), 13 (except that any reference to the State  shall  mean
the  county),  15,  16,  17,  18,  19  and  20 of the Service
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set  forth
in this subsection.
    Persons  subject  to  any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the  tax  as
an   additional   charge,  which  charge  may  be  stated  in
combination,  in  a  single  amount,  with  State  tax   that
servicemen  are  authorized  to collect under the Service Use
Tax Act, in accordance with bracket schedules  prescribed  by
the Department.
    Whenever  the  Department determines that a refund should
be made under  this  subsection  to  a  claimant  instead  of
issuing  a credit memorandum, the Department shall notify the
State Comptroller, who shall cause the warrant  to  be  drawn
for  the  amount  specified,  and to the person named, in the
notification from the Department.  The refund shall  be  paid
by  the  State Treasurer out of the tax fund referenced under
paragraph (g) of this Section.
    Nothing in this paragraph shall be construed to authorize
the county to impose a tax upon the privilege of engaging  in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
    (d)  If  a  tax  has been imposed under subsection (b), a
use tax shall also be imposed  at  the  same  rate  upon  the
privilege  of  using,  in  the  county,  any item of tangible
personal property that is purchased  outside  the  county  at
retail from a retailer, and that is titled or registered at a
location  within  the  county  with an agency of this State's
government. This additional tax may not  be  imposed  on  the
sale of food for human consumption that is to be consumed off
the   premises   where  it  is  sold  (other  than  alcoholic
beverages, soft drinks, and food that has been  prepared  for
immediate  consumption) and prescription and non-prescription
medicines,  drugs,  medical  appliances  and  insulin,  urine
testing materials, syringes, and needles used  by  diabetics.
"Selling  price"  is  defined as in the Use Tax Act.  The tax
shall be collected from persons whose  Illinois  address  for
titling  or  registration  purposes  is given as being in the
county.  The tax shall be  collected  by  the  Department  of
Revenue for the county. The tax must be paid to the State, or
an   exemption   determination  must  be  obtained  from  the
Department of Revenue, before the  title  or  certificate  of
registration  for  the  property  may  be issued.  The tax or
proof of exemption may be transmitted to  the  Department  by
way of the State agency with which, or the State officer with
whom,  the  tangible  personal  property  must  be  titled or
registered if the Department and the State  agency  or  State
officer  determine  that  this  procedure  will  expedite the
processing of applications for title or registration.
    The Department has full power to administer  and  enforce
this paragraph; to collect all taxes, penalties, and interest
due  under  this Section; to dispose of taxes, penalties, and
interest so collected in the manner provided in this Section;
and to determine all rights to credit  memoranda  or  refunds
arising  on account of the erroneous payment of tax, penalty,
or interest under this Section. In the administration of, and
compliance with, this subsection, the Department and  persons
who  are  subject  to  this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii)  be  subject  to  the  same  conditions,   restrictions,
limitations,    penalties,    exclusions,   exemptions,   and
definitions of terms, and (iii)  employ  the  same  modes  of
procedure  as  are  prescribed  in  Sections  2  (except  the
definition  of  "retailer  maintaining a place of business in
this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
4, 6, 7, 8 (except that the jurisdiction  to  which  the  tax
shall  be  a  debt  to the extent indicated in that Section 8
shall be  the  county),  9  (except  provisions  relating  to
quarter  monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
19, 20, 21, and 22 of the Use Tax Act and Section 3-7 of  the
Uniform  Penalty  and Interest Act, that are not inconsistent
with this paragraph, as fully as if those provisions were set
forth in this subsection.
    Whenever the Department determines that a  refund  should
be  made  under  this  subsection  to  a  claimant instead of
issuing a credit memorandum, the Department shall notify  the
State  Comptroller, who shall cause the order to be drawn for
the amount  specified,  and  to  the  person  named,  in  the
notification from the Department. The refund shall be paid by
the  State  Treasurer  out  of  the tax fund referenced under
paragraph (g) of this Section.
    (e)  A certificate of registration issued  by  the  State
Department  of  Revenue  to  a  retailer under the Retailers'
Occupation Tax Act or under the Service  Occupation  Tax  Act
shall  permit  the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section  and  no  additional  registration  shall  be
required.  A  certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with  regard  to  any
tax imposed under paragraph (c) of this Section.
    (f)  The   results   of   any   election   authorizing  a
proposition to impose a tax under this Section or effecting a
change in the rate of tax shall be certified  by  the  proper
election  authorities  and filed with the Illinois Department
on or before the first  day  of  October.   In  addition,  an
ordinance  imposing,  discontinuing, or effecting a change in
the rate of tax under this Section shall  be  adopted  and  a
certified  copy of the ordinance filed with the Department on
or before the first day of October.  After proper receipt  of
the   certifications,   the   Department   shall  proceed  to
administer and enforce this Section as of the  first  day  of
January next following the adoption and filing.
    (g)  The Department of Revenue shall, upon collecting any
taxes  and  penalties  as  provided  in this Section, pay the
taxes and penalties over to the State  Treasurer  as  trustee
for  the  county.  The taxes and penalties shall be held in a
trust fund outside the State Treasury. On or before the  25th
day  of  each calendar month, the Department of Revenue shall
prepare and certify  to  the  Comptroller  of  the  State  of
Illinois  the amount to be paid to the county, which shall be
the balance in the fund, less any amount  determined  by  the
Department to be necessary for the payment of refunds. Within
10 days after receipt by the Comptroller of the certification
of the amount to be paid to the county, the Comptroller shall
cause  an  order  to  be  drawn for payment for the amount in
accordance   with   the   directions   contained    in    the
certification.  Amounts  received  from the tax imposed under
this Section shall be used only for the economic  development
activities  of  the county and communities located within the
county.
    (h)  When certifying the amount of a monthly disbursement
to the  county  under  this  Section,  the  Department  shall
increase  or  decrease  the amounts by an amount necessary to
offset any miscalculation  of  previous  disbursements.   The
offset  amount  shall  be  the  amount  erroneously disbursed
within the previous 6 months from the time  a  miscalculation
is discovered.
    (i)  This  Section may be cited as the Rock Island County
Use and Occupation Tax Law.

    (70 ILCS 510/18.2 rep.)
    Section  15.    The   Quad   Cities   Regional   Economic
Development  Authority  Act,  approved September 22, 1987, is
amended by repealing Section 18.2.
    Section 99.  Effective date.  This Act takes effect  upon
becoming law.

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