100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2528

 

Introduced , by Rep. Joe Sosnowski

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.7
65 ILCS 5/8-11-1.1  from Ch. 24, par. 8-11-1.1

    Amends the Counties Code. Provides that if a County School Facility tax or a County Public Safety tax is imposed, the tax shall be imposed for a period of not less than 5 years but not more than 23 years (currently, no minimum or sunset is required). Specifies the name of the tax in the ballot (currently, the ballot states that tax will increase a county's share of a local sales tax). Requires that a certified copy of an ordinance which includes a sunset date be provided to the Department of Revenue who shall discontinue the tax on the sunset date. Amends the Illinois Municipal Code making similar changes to the Municipal Non-Home Rule Sales tax. Effective immediately.


LRB100 10543 AWJ 20759 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2528LRB100 10543 AWJ 20759 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing
5Sections 5-1006.5 and 5-1006.7 as follows:
 
6    (55 ILCS 5/5-1006.5)
7    Sec. 5-1006.5. Special County Retailers' Occupation Tax
8For Public Safety, Public Facilities, or Transportation.
9    (a) The county board of any county may impose a tax upon
10all persons engaged in the business of selling tangible
11personal property, other than personal property titled or
12registered with an agency of this State's government, at retail
13in the county on the gross receipts from the sales made in the
14course of business to provide revenue to be used exclusively
15for public safety, public facility, or transportation purposes
16in that county, if a proposition for the tax has been submitted
17to the electors of that county and approved by a majority of
18those voting on the question. If imposed, this tax shall be
19imposed only in one-quarter percent increments. If imposed on
20or after the effective date of this amendatory Act of the 100th
21General Assembly, this tax shall be imposed for a period of not
22less than 5 years but not more than 23 years, unless terminated
23earlier by a vote of the county board. Once the tax imposed

 

 

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1under this Section terminates, it may be imposed again, subject
2to the same time limitations. By resolution, the county board
3may order the proposition to be submitted at any election. If
4the tax is imposed for transportation purposes for expenditures
5for public highways or as authorized under the Illinois Highway
6Code, the county board must publish notice of the existence of
7its long-range highway transportation plan as required or
8described in Section 5-301 of the Illinois Highway Code and
9must make the plan publicly available prior to approval of the
10ordinance or resolution imposing the tax. If the tax is imposed
11for transportation purposes for expenditures for passenger
12rail transportation, the county board must publish notice of
13the existence of its long-range passenger rail transportation
14plan and must make the plan publicly available prior to
15approval of the ordinance or resolution imposing the tax.
16    If a tax is imposed for public facilities purposes, then
17the name of the project may be included in the proposition at
18the discretion of the county board as determined in the
19enabling resolution. For example, the "XXX Nursing Home" or the
20"YYY Museum".
21    The county clerk shall certify the question to the proper
22election authority, who shall submit the proposition at an
23election in accordance with the general election law.
24        (1) The proposition for public safety purposes shall be
25    in substantially the following form:
26        "To pay for public safety purposes, shall (name of

 

 

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1    county) be authorized to impose an increase on its share of
2    local sales taxes by (insert rate)?"
3        As additional information on the ballot below the
4    question shall appear the following:
5        "This would mean that a consumer would pay an
6    additional (insert amount) in sales tax for every $100 of
7    tangible personal property bought at retail."
8        For a proposition for public safety purposes, the The
9    county board shall may also opt to establish a sunset
10    provision within the range provided in this subsection (a),
11    at which time the additional sales tax would cease being
12    collected, if not terminated earlier by a vote of the
13    county board. The If the county board votes to include a
14    sunset provision, the proposition for public safety
15    purposes shall be in substantially the following form:
16        "To pay for public safety purposes, shall (name of
17    county) be authorized to impose a special county retailers'
18    occupation tax (commonly referred to as a "sales tax") at a
19    rate of an increase on its share of local sales taxes by
20    (insert rate) for a period not to exceed (insert number of
21    years)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail. If imposed,

 

 

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1    the additional tax would cease being collected at the end
2    of (insert number of years), if not terminated earlier by a
3    vote of the county board."
4        For the purposes of the paragraph, "public safety
5    purposes" means crime prevention, detention, fire
6    fighting, police, medical, ambulance, or other emergency
7    services.
8        Votes shall be recorded as "Yes" or "No".
9        Beginning on the January 1 or July 1, whichever is
10    first, that occurs not less than 30 days after May 31, 2015
11    (the effective date of Public Act 99-4), Adams County may
12    impose a public safety retailers' occupation tax and
13    service occupation tax at the rate of 0.25%, as provided in
14    the referendum approved by the voters on April 7, 2015,
15    notwithstanding the omission of the additional information
16    that is otherwise required to be printed on the ballot
17    below the question pursuant to this item (1).
18        (2) The proposition for transportation purposes shall
19    be in substantially the following form:
20        "To pay for improvements to roads and other
21    transportation purposes, shall (name of county) be
22    authorized to impose an increase on its share of local
23    sales taxes by (insert rate)?"
24        As additional information on the ballot below the
25    question shall appear the following:
26        "This would mean that a consumer would pay an

 

 

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1    additional (insert amount) in sales tax for every $100 of
2    tangible personal property bought at retail."
3        For a proposition for transportation purposes, the The
4    county board shall may also opt to establish a sunset
5    provision within the range provided in this subsection (a),
6    at which time the additional sales tax would cease being
7    collected, if not terminated earlier by a vote of the
8    county board. The If the county board votes to include a
9    sunset provision, the proposition for transportation
10    purposes shall be in substantially the following form:
11        "To pay for road improvements and other transportation
12    purposes, shall (name of county) be authorized to impose a
13    special county retailers' occupation tax (commonly
14    referred to as a "sales tax") at a rate of an increase on
15    its share of local sales taxes by (insert rate) for a
16    period not to exceed (insert number of years)?"
17        As additional information on the ballot below the
18    question shall appear the following:
19        "This would mean that a consumer would pay an
20    additional (insert amount) in sales tax for every $100 of
21    tangible personal property bought at retail. If imposed,
22    the additional tax would cease being collected at the end
23    of (insert number of years), if not terminated earlier by a
24    vote of the county board."
25        For the purposes of this paragraph, transportation
26    purposes means construction, maintenance, operation, and

 

 

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1    improvement of public highways, any other purpose for which
2    a county may expend funds under the Illinois Highway Code,
3    and passenger rail transportation.
4        The votes shall be recorded as "Yes" or "No".
5        (3) The proposition for public facilities purposes
6    shall be in substantially the following form:
7        "To pay for public facilities purposes, shall (name of
8    county) be authorized to impose an increase on its share of
9    local sales taxes by (insert rate)?"
10        As additional information on the ballot below the
11    question shall appear the following:
12        "This would mean that a consumer would pay an
13    additional (insert amount) in sales tax for every $100 of
14    tangible personal property bought at retail."
15        For a proposition for public facilities purposes, the
16    The county board shall may also opt to establish a sunset
17    provision within the range provided in this subsection (a),
18    at which time the additional sales tax would cease being
19    collected, if not terminated earlier by a vote of the
20    county board. The If the county board votes to include a
21    sunset provision, the proposition for public facilities
22    purposes shall be in substantially the following form:
23        "To pay for public facilities purposes, shall (name of
24    county) be authorized to impose a special county retailers'
25    occupation tax (commonly referred to as a "sales tax") at a
26    rate of an increase on its share of local sales taxes by

 

 

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1    (insert rate) for a period not to exceed (insert number of
2    years)?"
3        As additional information on the ballot below the
4    question shall appear the following:
5        "This would mean that a consumer would pay an
6    additional (insert amount) in sales tax for every $100 of
7    tangible personal property bought at retail. If imposed,
8    the additional tax would cease being collected at the end
9    of (insert number of years), if not terminated earlier by a
10    vote of the county board."
11        For purposes of this Section, "public facilities
12    purposes" means the acquisition, development,
13    construction, reconstruction, rehabilitation, improvement,
14    financing, architectural planning, and installation of
15    capital facilities consisting of buildings, structures,
16    and durable equipment and for the acquisition and
17    improvement of real property and interest in real property
18    required, or expected to be required, in connection with
19    the public facilities, for use by the county for the
20    furnishing of governmental services to its citizens,
21    including but not limited to museums and nursing homes.
22        The votes shall be recorded as "Yes" or "No".
23    If a majority of the electors voting on the proposition
24vote in favor of it, the county may impose the tax. A county
25may not submit more than one proposition authorized by this
26Section to the electors at any one time.

 

 

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1    This additional tax may not be imposed on the sales of food
2for human consumption that is to be consumed off the premises
3where it is sold (other than alcoholic beverages, soft drinks,
4and food which has been prepared for immediate consumption) and
5prescription and non-prescription medicines, drugs, medical
6appliances and insulin, urine testing materials, syringes, and
7needles used by diabetics. The tax imposed by a county under
8this Section and all civil penalties that may be assessed as an
9incident of the tax shall be collected and enforced by the
10Illinois Department of Revenue and deposited into a special
11fund created for that purpose. The certificate of registration
12that is issued by the Department to a retailer under the
13Retailers' Occupation Tax Act shall permit the retailer to
14engage in a business that is taxable without registering
15separately with the Department under an ordinance or resolution
16under this Section. The Department has full power to administer
17and enforce this Section, to collect all taxes and penalties
18due under this Section, to dispose of taxes and penalties so
19collected in the manner provided in this Section, and to
20determine all rights to credit memoranda arising on account of
21the erroneous payment of a tax or penalty under this Section.
22In the administration of and compliance with this Section, the
23Department and persons who are subject to this Section shall
24(i) have the same rights, remedies, privileges, immunities,
25powers, and duties, (ii) be subject to the same conditions,
26restrictions, limitations, penalties, and definitions of

 

 

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1terms, and (iii) employ the same modes of procedure as are
2prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
31n, 2 through 2-70 (in respect to all provisions contained in
4those Sections other than the State rate of tax), 2a, 2b, 2c, 3
5(except provisions relating to transaction returns and quarter
6monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
75j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
8of the Retailers' Occupation Tax Act and Section 3-7 of the
9Uniform Penalty and Interest Act as if those provisions were
10set forth in this Section.
11    Persons subject to any tax imposed under the authority
12granted in this Section may reimburse themselves for their
13sellers' tax liability by separately stating the tax as an
14additional charge, which charge may be stated in combination,
15in a single amount, with State tax which sellers are required
16to collect under the Use Tax Act, pursuant to such bracketed
17schedules as the Department may prescribe.
18    Whenever the Department determines that a refund should be
19made under this Section to a claimant instead of issuing a
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified and to the person named in the notification
23from the Department. The refund shall be paid by the State
24Treasurer out of the County Public Safety or Transportation
25Retailers' Occupation Tax Fund.
26    (b) If a tax has been imposed under subsection (a), a

 

 

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1service occupation tax shall also be imposed at the same rate
2upon all persons engaged, in the county, in the business of
3making sales of service, who, as an incident to making those
4sales of service, transfer tangible personal property within
5the county as an incident to a sale of service. This tax may
6not be imposed on sales of food for human consumption that is
7to be consumed off the premises where it is sold (other than
8alcoholic beverages, soft drinks, and food prepared for
9immediate consumption) and prescription and non-prescription
10medicines, drugs, medical appliances and insulin, urine
11testing materials, syringes, and needles used by diabetics. The
12tax imposed under this subsection and all civil penalties that
13may be assessed as an incident thereof shall be collected and
14enforced by the Department of Revenue. The Department has full
15power to administer and enforce this subsection; to collect all
16taxes and penalties due hereunder; to dispose of taxes and
17penalties so collected in the manner hereinafter provided; and
18to determine all rights to credit memoranda arising on account
19of the erroneous payment of tax or penalty hereunder. In the
20administration of, and compliance with this subsection, the
21Department and persons who are subject to this paragraph shall
22(i) have the same rights, remedies, privileges, immunities,
23powers, and duties, (ii) be subject to the same conditions,
24restrictions, limitations, penalties, exclusions, exemptions,
25and definitions of terms, and (iii) employ the same modes of
26procedure as are prescribed in Sections 2 (except that the

 

 

HB2528- 11 -LRB100 10543 AWJ 20759 b

1reference to State in the definition of supplier maintaining a
2place of business in this State shall mean the county), 2a, 2b,
32c, 3 through 3-50 (in respect to all provisions therein other
4than the State rate of tax), 4 (except that the reference to
5the State shall be to the county), 5, 7, 8 (except that the
6jurisdiction to which the tax shall be a debt to the extent
7indicated in that Section 8 shall be the county), 9 (except as
8to the disposition of taxes and penalties collected), 10, 11,
912 (except the reference therein to Section 2b of the
10Retailers' Occupation Tax Act), 13 (except that any reference
11to the State shall mean the county), Section 15, 16, 17, 18, 19
12and 20 of the Service Occupation Tax Act and Section 3-7 of the
13Uniform Penalty and Interest Act, as fully as if those
14provisions were set forth herein.
15    Persons subject to any tax imposed under the authority
16granted in this subsection may reimburse themselves for their
17serviceman's tax liability by separately stating the tax as an
18additional charge, which charge may be stated in combination,
19in a single amount, with State tax that servicemen are
20authorized to collect under the Service Use Tax Act, in
21accordance with such bracket schedules as the Department may
22prescribe.
23    Whenever the Department determines that a refund should be
24made under this subsection to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the warrant to be drawn for the

 

 

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1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the County Public Safety or Transportation
4Retailers' Occupation Fund.
5    Nothing in this subsection shall be construed to authorize
6the county to impose a tax upon the privilege of engaging in
7any business which under the Constitution of the United States
8may not be made the subject of taxation by the State.
9    (c) The Department shall immediately pay over to the State
10Treasurer, ex officio, as trustee, all taxes and penalties
11collected under this Section to be deposited into the County
12Public Safety or Transportation Retailers' Occupation Tax
13Fund, which shall be an unappropriated trust fund held outside
14of the State treasury.
15    As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the Department
17of Revenue, the Comptroller shall order transferred, and the
18Treasurer shall transfer, to the STAR Bonds Revenue Fund the
19local sales tax increment, as defined in the Innovation
20Development and Economy Act, collected under this Section
21during the second preceding calendar month for sales within a
22STAR bond district.
23    After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to the counties from which

 

 

HB2528- 13 -LRB100 10543 AWJ 20759 b

1retailers have paid taxes or penalties to the Department during
2the second preceding calendar month. The amount to be paid to
3each county, and deposited by the county into its special fund
4created for the purposes of this Section, shall be the amount
5(not including credit memoranda) collected under this Section
6during the second preceding calendar month by the Department
7plus an amount the Department determines is necessary to offset
8any amounts that were erroneously paid to a different taxing
9body, and not including (i) an amount equal to the amount of
10refunds made during the second preceding calendar month by the
11Department on behalf of the county, (ii) any amount that the
12Department determines is necessary to offset any amounts that
13were payable to a different taxing body but were erroneously
14paid to the county, and (iii) any amounts that are transferred
15to the STAR Bonds Revenue Fund. Within 10 days after receipt by
16the Comptroller of the disbursement certification to the
17counties provided for in this Section to be given to the
18Comptroller by the Department, the Comptroller shall cause the
19orders to be drawn for the respective amounts in accordance
20with directions contained in the certification.
21    In addition to the disbursement required by the preceding
22paragraph, an allocation shall be made in March of each year to
23each county that received more than $500,000 in disbursements
24under the preceding paragraph in the preceding calendar year.
25The allocation shall be in an amount equal to the average
26monthly distribution made to each such county under the

 

 

HB2528- 14 -LRB100 10543 AWJ 20759 b

1preceding paragraph during the preceding calendar year
2(excluding the 2 months of highest receipts). The distribution
3made in March of each year subsequent to the year in which an
4allocation was made pursuant to this paragraph and the
5preceding paragraph shall be reduced by the amount allocated
6and disbursed under this paragraph in the preceding calendar
7year. The Department shall prepare and certify to the
8Comptroller for disbursement the allocations made in
9accordance with this paragraph.
10    A county may direct, by ordinance, that all or a portion of
11the taxes and penalties collected under the Special County
12Retailers' Occupation Tax For Public Safety or Transportation
13be deposited into the Transportation Development Partnership
14Trust Fund.
15    (d) For the purpose of determining the local governmental
16unit whose tax is applicable, a retail sale by a producer of
17coal or another mineral mined in Illinois is a sale at retail
18at the place where the coal or other mineral mined in Illinois
19is extracted from the earth. This paragraph does not apply to
20coal or another mineral when it is delivered or shipped by the
21seller to the purchaser at a point outside Illinois so that the
22sale is exempt under the United States Constitution as a sale
23in interstate or foreign commerce.
24    (e) Nothing in this Section shall be construed to authorize
25a county to impose a tax upon the privilege of engaging in any
26business that under the Constitution of the United States may

 

 

HB2528- 15 -LRB100 10543 AWJ 20759 b

1not be made the subject of taxation by this State.
2    (e-5) If a county imposes a tax under this Section, the
3county board may, by ordinance, discontinue or lower the rate
4of the tax. If the county board lowers the tax rate or
5discontinues the tax, a referendum must be held in accordance
6with subsection (a) of this Section in order to increase the
7rate of the tax or to reimpose the discontinued tax.
8    (f) Beginning April 1, 1998 and through December 31, 2013,
9the results of any election authorizing a proposition to impose
10a tax under this Section or effecting a change in the rate of
11tax, or any ordinance lowering the rate or discontinuing the
12tax, shall be certified by the county clerk and filed with the
13Illinois Department of Revenue either (i) on or before the
14first day of April, whereupon the Department shall proceed to
15administer and enforce the tax as of the first day of July next
16following the filing; or (ii) on or before the first day of
17October, whereupon the Department shall proceed to administer
18and enforce the tax as of the first day of January next
19following the filing.
20    Beginning January 1, 2014, the results of any election
21authorizing a proposition to impose a tax under this Section or
22effecting an increase in the rate of tax, along with the
23ordinance adopted to impose the tax or increase the rate of the
24tax, or any ordinance adopted to lower the rate or discontinue
25the tax, shall be certified by the county clerk and filed with
26the Illinois Department of Revenue either (i) on or before the

 

 

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1first day of May, whereupon the Department shall proceed to
2administer and enforce the tax as of the first day of July next
3following the adoption and filing; or (ii) on or before the
4first day of October, whereupon the Department shall proceed to
5administer and enforce the tax as of the first day of January
6next following the adoption and filing. If a tax imposed under
7this Section will sunset as provided in subsection (a), the
8county clerk must file a certified copy of an ordinance that
9states the sunset date with the Illinois Department of Revenue
10in the same timeframes as established in this paragraph for the
11imposition of the tax and the Department shall discontinue
12collection of the tax on its sunset date.
13    (g) When certifying the amount of a monthly disbursement to
14a county under this Section, the Department shall increase or
15decrease the amounts by an amount necessary to offset any
16miscalculation of previous disbursements. The offset amount
17shall be the amount erroneously disbursed within the previous 6
18months from the time a miscalculation is discovered.
19    (h) This Section may be cited as the "Special County
20Occupation Tax For Public Safety, Public Facilities, or
21Transportation Law".
22    (i) For purposes of this Section, "public safety" includes,
23but is not limited to, crime prevention, detention, fire
24fighting, police, medical, ambulance, or other emergency
25services. The county may share tax proceeds received under this
26Section for public safety purposes, including proceeds

 

 

HB2528- 17 -LRB100 10543 AWJ 20759 b

1received before August 4, 2009 (the effective date of Public
2Act 96-124), with any fire protection district located in the
3county. For the purposes of this Section, "transportation"
4includes, but is not limited to, the construction, maintenance,
5operation, and improvement of public highways, any other
6purpose for which a county may expend funds under the Illinois
7Highway Code, and passenger rail transportation. For the
8purposes of this Section, "public facilities purposes"
9includes, but is not limited to, the acquisition, development,
10construction, reconstruction, rehabilitation, improvement,
11financing, architectural planning, and installation of capital
12facilities consisting of buildings, structures, and durable
13equipment and for the acquisition and improvement of real
14property and interest in real property required, or expected to
15be required, in connection with the public facilities, for use
16by the county for the furnishing of governmental services to
17its citizens, including but not limited to museums and nursing
18homes.
19    (j) The Department may promulgate rules to implement Public
20Act 95-1002 only to the extent necessary to apply the existing
21rules for the Special County Retailers' Occupation Tax for
22Public Safety to this new purpose for public facilities.
23(Source: P.A. 98-584, eff. 8-27-13; 99-4, eff. 5-31-15; 99-217,
24eff. 7-31-15; 99-642, eff. 7-28-16.)
 
25    (55 ILCS 5/5-1006.7)

 

 

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1    Sec. 5-1006.7. School facility occupation taxes.
2    (a) In any county, a tax shall be imposed upon all persons
3engaged in the business of selling tangible personal property,
4other than personal property titled or registered with an
5agency of this State's government, at retail in the county on
6the gross receipts from the sales made in the course of
7business to provide revenue to be used exclusively for school
8facility purposes if a proposition for the tax has been
9submitted to the electors of that county and approved by a
10majority of those voting on the question as provided in
11subsection (c). The tax under this Section shall be imposed
12only in one-quarter percent increments and may not exceed 1%.
13If imposed on or after the effective date of this amendatory
14Act of the 100th General Assembly, the tax under this Section
15shall be imposed for a period of not less than 5 years but not
16more than 23 years. Once the tax imposed under this Section
17terminates, it may be imposed again, subject to the same time
18limitations.
19    This additional tax may not be imposed on the sale of food
20for human consumption that is to be consumed off the premises
21where it is sold (other than alcoholic beverages, soft drinks,
22and food that has been prepared for immediate consumption) and
23prescription and non-prescription medicines, drugs, medical
24appliances and insulin, urine testing materials, syringes and
25needles used by diabetics. The Department of Revenue has full
26power to administer and enforce this subsection, to collect all

 

 

HB2528- 19 -LRB100 10543 AWJ 20759 b

1taxes and penalties due under this subsection, to dispose of
2taxes and penalties so collected in the manner provided in this
3subsection, and to determine all rights to credit memoranda
4arising on account of the erroneous payment of a tax or penalty
5under this subsection. The Department shall deposit all taxes
6and penalties collected under this subsection into a special
7fund created for that purpose.
8    In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10subsection (i) have the same rights, remedies, privileges,
11immunities, powers, and duties, (ii) are subject to the same
12conditions, restrictions, limitations, penalties, and
13definitions of terms, and (iii) shall employ the same modes of
14procedure as are set forth in Sections 1 through 1o, 2 through
152-70 (in respect to all provisions contained in those Sections
16other than the State rate of tax), 2a through 2h, 3 (except as
17to the disposition of taxes and penalties collected), 4, 5, 5a,
185b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
197, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
20Tax Act and all provisions of the Uniform Penalty and Interest
21Act as if those provisions were set forth in this subsection.
22    The certificate of registration that is issued by the
23Department to a retailer under the Retailers' Occupation Tax
24Act permits the retailer to engage in a business that is
25taxable without registering separately with the Department
26under an ordinance or resolution under this subsection.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this subsection may reimburse themselves for their
3seller's tax liability by separately stating that tax as an
4additional charge, which may be stated in combination, in a
5single amount, with State tax that sellers are required to
6collect under the Use Tax Act, pursuant to any bracketed
7schedules set forth by the Department.
8    (b) If a tax has been imposed under subsection (a), then a
9service occupation tax must also be imposed at the same rate
10upon all persons engaged, in the county, in the business of
11making sales of service, who, as an incident to making those
12sales of service, transfer tangible personal property within
13the county as an incident to a sale of service.
14    This tax may not be imposed on sales of food for human
15consumption that is to be consumed off the premises where it is
16sold (other than alcoholic beverages, soft drinks, and food
17prepared for immediate consumption) and prescription and
18non-prescription medicines, drugs, medical appliances and
19insulin, urine testing materials, syringes, and needles used by
20diabetics.
21    The tax imposed under this subsection and all civil
22penalties that may be assessed as an incident thereof shall be
23collected and enforced by the Department and deposited into a
24special fund created for that purpose. The Department has full
25power to administer and enforce this subsection, to collect all
26taxes and penalties due under this subsection, to dispose of

 

 

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1taxes and penalties so collected in the manner provided in this
2subsection, and to determine all rights to credit memoranda
3arising on account of the erroneous payment of a tax or penalty
4under this subsection.
5    In the administration of and compliance with this
6subsection, the Department and persons who are subject to this
7subsection shall (i) have the same rights, remedies,
8privileges, immunities, powers and duties, (ii) be subject to
9the same conditions, restrictions, limitations, penalties and
10definition of terms, and (iii) employ the same modes of
11procedure as are set forth in Sections 2 (except that that
12reference to State in the definition of supplier maintaining a
13place of business in this State means the county), 2a through
142d, 3 through 3-50 (in respect to all provisions contained in
15those Sections other than the State rate of tax), 4 (except
16that the reference to the State shall be to the county), 5, 7,
178 (except that the jurisdiction to which the tax is a debt to
18the extent indicated in that Section 8 is the county), 9
19(except as to the disposition of taxes and penalties
20collected), 10, 11, 12 (except the reference therein to Section
212b of the Retailers' Occupation Tax Act), 13 (except that any
22reference to the State means the county), Section 15, 16, 17,
2318, 19, and 20 of the Service Occupation Tax Act and all
24provisions of the Uniform Penalty and Interest Act, as fully as
25if those provisions were set forth herein.
26    Persons subject to any tax imposed under the authority

 

 

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1granted in this subsection may reimburse themselves for their
2serviceman's tax liability by separately stating the tax as an
3additional charge, which may be stated in combination, in a
4single amount, with State tax that servicemen are authorized to
5collect under the Service Use Tax Act, pursuant to any
6bracketed schedules set forth by the Department.
7    (c) The tax under this Section may not be imposed until the
8question of imposing the tax has been submitted to the electors
9of the county at a regular election and approved by a majority
10of the electors voting on the question. For all regular
11elections held prior to August 23, 2011 (the effective date of
12Public Act 97-542), upon a resolution by the county board or a
13resolution by school district boards that represent at least
1451% of the student enrollment within the county, the county
15board must certify the question to the proper election
16authority in accordance with the Election Code.
17    For all regular elections held prior to August 23, 2011
18(the effective date of Public Act 97-542), the election
19authority must submit the question in substantially the
20following form:
21        Shall (name of county) be authorized to impose a
22    retailers' occupation tax and a service occupation tax
23    (commonly referred to as a "sales tax") at a rate of
24    (insert rate) for a period of (number of years) to be used
25    exclusively for school facility purposes?
26The election authority must record the votes as "Yes" or "No".

 

 

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1    If a majority of the electors voting on the question vote
2in the affirmative, then the county may, thereafter, impose the
3tax.
4    For all regular elections held on or after August 23, 2011
5(the effective date of Public Act 97-542), the regional
6superintendent of schools for the county must, upon receipt of
7a resolution or resolutions of school district boards that
8represent more than 50% of the student enrollment within the
9county, certify the question to the proper election authority
10for submission to the electors of the county at the next
11regular election at which the question lawfully may be
12submitted to the electors, all in accordance with the Election
13Code.
14    For all regular elections held on or after August 23, 2011
15(the effective date of Public Act 97-542), the election
16authority must submit the question in substantially the
17following form:
18        Shall a retailers' occupation tax and a service
19    occupation tax (commonly referred to as a "sales tax") be
20    imposed in (name of county) at a rate of (insert rate) for
21    a period not to exceed (insert number of years) to be used
22    exclusively for school facility purposes?
23The election authority must record the votes as "Yes" or "No".
24    If a majority of the electors voting on the question vote
25in the affirmative, then the tax shall be imposed at the rate
26set forth in the question.

 

 

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1    For the purposes of this subsection (c), "enrollment" means
2the head count of the students residing in the county on the
3last school day of September of each year, which must be
4reported on the Illinois State Board of Education Public School
5Fall Enrollment/Housing Report.
6    (d) The Department shall immediately pay over to the State
7Treasurer, ex officio, as trustee, all taxes and penalties
8collected under this Section to be deposited into the School
9Facility Occupation Tax Fund, which shall be an unappropriated
10trust fund held outside the State treasury.
11    On or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to the regional
14superintendents of schools in counties from which retailers or
15servicemen have paid taxes or penalties to the Department
16during the second preceding calendar month. The amount to be
17paid to each regional superintendent of schools and disbursed
18to him or her in accordance with Section 3-14.31 of the School
19Code, is equal to the amount (not including credit memoranda)
20collected from the county under this Section during the second
21preceding calendar month by the Department, (i) less 2% of that
22amount, which shall be deposited into the Tax Compliance and
23Administration Fund and shall be used by the Department,
24subject to appropriation, to cover the costs of the Department
25in administering and enforcing the provisions of this Section,
26on behalf of the county, (ii) plus an amount that the

 

 

HB2528- 25 -LRB100 10543 AWJ 20759 b

1Department determines is necessary to offset any amounts that
2were erroneously paid to a different taxing body; (iii) less an
3amount equal to the amount of refunds made during the second
4preceding calendar month by the Department on behalf of the
5county; and (iv) less any amount that the Department determines
6is necessary to offset any amounts that were payable to a
7different taxing body but were erroneously paid to the county.
8When certifying the amount of a monthly disbursement to a
9regional superintendent of schools under this Section, the
10Department shall increase or decrease the amounts by an amount
11necessary to offset any miscalculation of previous
12disbursements within the previous 6 months from the time a
13miscalculation is discovered.
14    Within 10 days after receipt by the Comptroller from the
15Department of the disbursement certification to the regional
16superintendents of the schools provided for in this Section,
17the Comptroller shall cause the orders to be drawn for the
18respective amounts in accordance with directions contained in
19the certification.
20    If the Department determines that a refund should be made
21under this Section to a claimant instead of issuing a credit
22memorandum, then the Department shall notify the Comptroller,
23who shall cause the order to be drawn for the amount specified
24and to the person named in the notification from the
25Department. The refund shall be paid by the Treasurer out of
26the School Facility Occupation Tax Fund.

 

 

HB2528- 26 -LRB100 10543 AWJ 20759 b

1    (e) For the purposes of determining the local governmental
2unit whose tax is applicable, a retail sale by a producer of
3coal or another mineral mined in Illinois is a sale at retail
4at the place where the coal or other mineral mined in Illinois
5is extracted from the earth. This subsection does not apply to
6coal or another mineral when it is delivered or shipped by the
7seller to the purchaser at a point outside Illinois so that the
8sale is exempt under the United States Constitution as a sale
9in interstate or foreign commerce.
10    (f) Nothing in this Section may be construed to authorize a
11tax to be imposed upon the privilege of engaging in any
12business that under the Constitution of the United States may
13not be made the subject of taxation by this State.
14    (g) If a county board imposes a tax under this Section
15pursuant to a referendum held before August 23, 2011 (the
16effective date of Public Act 97-542) at a rate below the rate
17set forth in the question approved by a majority of electors of
18that county voting on the question as provided in subsection
19(c), then the county board may, by ordinance, increase the rate
20of the tax up to the rate set forth in the question approved by
21a majority of electors of that county voting on the question as
22provided in subsection (c). If a county board imposes a tax
23under this Section pursuant to a referendum held before August
2423, 2011 (the effective date of Public Act 97-542), then the
25board may, by ordinance, discontinue or reduce the rate of the
26tax. If a tax is imposed under this Section pursuant to a

 

 

HB2528- 27 -LRB100 10543 AWJ 20759 b

1referendum held on or after August 23, 2011 (the effective date
2of Public Act 97-542), then the county board may reduce or
3discontinue the tax, but only in accordance with subsection
4(h-5) of this Section. If, however, a school board issues bonds
5that are secured by the proceeds of the tax under this Section,
6then the county board may not reduce the tax rate or
7discontinue the tax if that rate reduction or discontinuance
8would adversely affect the school board's ability to pay the
9principal and interest on those bonds as they become due or
10necessitate the extension of additional property taxes to pay
11the principal and interest on those bonds. If the county board
12reduces the tax rate or discontinues the tax, then a referendum
13must be held in accordance with subsection (c) of this Section
14in order to increase the rate of the tax or to reimpose the
15discontinued tax.
16    Until January 1, 2014, the results of any election that
17imposes, reduces, or discontinues a tax under this Section must
18be certified by the election authority, and any ordinance that
19increases or lowers the rate or discontinues the tax must be
20certified by the county clerk and, in each case, filed with the
21Illinois Department of Revenue either (i) on or before the
22first day of April, whereupon the Department shall proceed to
23administer and enforce the tax or change in the rate as of the
24first day of July next following the filing; or (ii) on or
25before the first day of October, whereupon the Department shall
26proceed to administer and enforce the tax or change in the rate

 

 

HB2528- 28 -LRB100 10543 AWJ 20759 b

1as of the first day of January next following the filing.
2    Beginning January 1, 2014, the results of any election that
3imposes, reduces, or discontinues a tax under this Section must
4be certified by the election authority, and any ordinance that
5increases or lowers the rate or discontinues the tax must be
6certified by the county clerk and, in each case, filed with the
7Illinois Department of Revenue either (i) on or before the
8first day of May, whereupon the Department shall proceed to
9administer and enforce the tax or change in the rate as of the
10first day of July next following the filing; or (ii) on or
11before the first day of October, whereupon the Department shall
12proceed to administer and enforce the tax or change in the rate
13as of the first day of January next following the filing. If a
14tax imposed under this Section will sunset as provided in
15subsection (a), the county clerk must file a certified copy of
16the proposition that was approved under subsection (c) that
17states the sunset date with the Illinois Department of Revenue
18in the same timeframes as established in this paragraph for the
19imposition of the tax and the Department shall discontinue
20collection of the tax on its sunset date.
21    (h) For purposes of this Section, "school facility
22purposes" means (i) the acquisition, development,
23construction, reconstruction, rehabilitation, improvement,
24financing, architectural planning, and installation of capital
25facilities consisting of buildings, structures, and durable
26equipment and for the acquisition and improvement of real

 

 

HB2528- 29 -LRB100 10543 AWJ 20759 b

1property and interest in real property required, or expected to
2be required, in connection with the capital facilities and (ii)
3the payment of bonds or other obligations heretofore or
4hereafter issued, including bonds or other obligations
5heretofore or hereafter issued to refund or to continue to
6refund bonds or other obligations issued, for school facility
7purposes, provided that the taxes levied to pay those bonds are
8abated by the amount of the taxes imposed under this Section
9that are used to pay those bonds. "School-facility purposes"
10also includes fire prevention, safety, energy conservation,
11accessibility, school security, and specified repair purposes
12set forth under Section 17-2.11 of the School Code.
13    (h-5) A county board in a county where a tax has been
14imposed under this Section pursuant to a referendum held on or
15after August 23, 2011 (the effective date of Public Act 97-542)
16may, by ordinance or resolution, submit to the voters of the
17county the question of reducing or discontinuing the tax. In
18the ordinance or resolution, the county board shall certify the
19question to the proper election authority in accordance with
20the Election Code. The election authority must submit the
21question in substantially the following form:
22        Shall the school facility retailers' occupation tax
23    and service occupation tax (commonly referred to as the
24    "school facility sales tax") currently imposed in (name of
25    county) at a rate of (insert rate) be (reduced to (insert
26    rate))(discontinued)?

 

 

HB2528- 30 -LRB100 10543 AWJ 20759 b

1If a majority of the electors voting on the question vote in
2the affirmative, then, subject to the provisions of subsection
3(g) of this Section, the tax shall be reduced or discontinued
4as set forth in the question.
5    (i) This Section does not apply to Cook County.
6    (j) This Section may be cited as the County School Facility
7Occupation Tax Law.
8(Source: P.A. 98-584, eff. 8-27-13; 99-143, eff. 7-27-15;
999-217, eff. 7-31-15; 99-642, eff. 7-28-16.)
 
10    Section 10. The Illinois Municipal Code is amended by
11changing Section 8-11-1.1 as follows:
 
12    (65 ILCS 5/8-11-1.1)  (from Ch. 24, par. 8-11-1.1)
13    Sec. 8-11-1.1. Non-home rule municipalities; imposition of
14taxes.
15    (a) The corporate authorities of a non-home rule
16municipality may, upon approval of the electors of the
17municipality pursuant to subsection (b) of this Section, impose
18by ordinance or resolution the tax authorized in Sections
198-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
20    (b) The corporate authorities of the municipality may by
21ordinance or resolution call for the submission to the electors
22of the municipality the question of whether the municipality
23shall impose such tax. If imposed on or after the effective
24date of this amendatory Act of the 100th General Assembly, this

 

 

HB2528- 31 -LRB100 10543 AWJ 20759 b

1tax may be imposed for a period of not less than 5 years but not
2more than 23 years, unless terminated earlier by a vote of the
3corporate authorities of the municipality. Once the tax imposed
4under this Section terminates, it may be imposed again, subject
5to the same time limitations. Such question shall be certified
6by the municipal clerk to the election authority in accordance
7with Section 28-5 of the Election Code and shall be in a form
8in accordance with Section 16-7 of the Election Code.
9    Notwithstanding any provision of law to the contrary, if
10the proceeds of the tax may be used for municipal operations
11pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
12election authority must submit the question in substantially
13the following form:
14        Shall the corporate authorities of the municipality be
15    authorized to levy a tax (commonly referred to as "sales
16    tax") at a rate of (rate)% for a period not to exceed
17    (number of years) for expenditures on municipal
18    operations, expenditures on public infrastructure, or
19    property tax relief?
20    If a majority of the electors in the municipality voting
21upon the question vote in the affirmative, such tax shall be
22imposed.
23    Until January 1, 1992, an ordinance or resolution imposing
24the tax of not more than 1% hereunder or discontinuing the same
25shall be adopted and a certified copy thereof, together with a
26certification that the ordinance or resolution received

 

 

HB2528- 32 -LRB100 10543 AWJ 20759 b

1referendum approval in the case of the imposition of such tax,
2filed with the Department of Revenue, on or before the first
3day of June, whereupon the Department shall proceed to
4administer and enforce the additional tax or to discontinue the
5tax, as the case may be, as of the first day of September next
6following such adoption and filing.
7    Beginning January 1, 1992 and through December 31, 1992, an
8ordinance or resolution imposing or discontinuing the tax
9hereunder shall be adopted and a certified copy thereof filed
10with the Department on or before the first day of July,
11whereupon the Department shall proceed to administer and
12enforce this Section as of the first day of October next
13following such adoption and filing.
14    Beginning January 1, 1993, and through September 30, 2002,
15an ordinance or resolution imposing or discontinuing the tax
16hereunder shall be adopted and a certified copy thereof filed
17with the Department on or before the first day of October,
18whereupon the Department shall proceed to administer and
19enforce this Section as of the first day of January next
20following such adoption and filing.
21    Beginning October 1, 2002, and through December 31, 2013,
22an ordinance or resolution imposing or discontinuing the tax
23under this Section or effecting a change in the rate of tax
24must either (i) be adopted and a certified copy of the
25ordinance or resolution filed with the Department on or before
26the first day of April, whereupon the Department shall proceed

 

 

HB2528- 33 -LRB100 10543 AWJ 20759 b

1to administer and enforce this Section as of the first day of
2July next following the adoption and filing; or (ii) be adopted
3and a certified copy of the ordinance or resolution filed with
4the Department on or before the first day of October, whereupon
5the Department shall proceed to administer and enforce this
6Section as of the first day of January next following the
7adoption and filing.
8    Beginning January 1, 2014, if an ordinance or resolution
9imposing the tax under this Section, discontinuing the tax
10under this Section, or effecting a change in the rate of tax
11under this Section shall be is adopted and , a certified copy
12thereof, together with a certification that the ordinance or
13resolution received referendum approval in the case of the
14imposition of or increase in the rate of such tax, shall be
15filed with the Department of Revenue, either (i) on or before
16the first day of May, whereupon the Department shall proceed to
17administer and enforce this Section as of the first day of July
18next following the adoption and filing; or (ii) on or before
19the first day of October, whereupon the Department shall
20proceed to administer and enforce this Section as of the first
21day of January next following the adoption and filing. If a tax
22imposed under this Section will sunset as provided in
23subsection (b), a certified copy of an ordinance that states
24the sunset date must be filed with the Illinois Department of
25Revenue in the same timeframes as established in this paragraph
26for the imposition of the tax and the Department shall

 

 

HB2528- 34 -LRB100 10543 AWJ 20759 b

1discontinue collection of the tax on its sunset date.
2    Notwithstanding any provision in this Section to the
3contrary, if, in a non-home rule municipality with more than
4150,000 but fewer than 200,000 inhabitants, as determined by
5the last preceding federal decennial census, an ordinance or
6resolution under this Section imposes or discontinues a tax or
7changes the tax rate as of July 1, 2007, then that ordinance or
8resolution, together with a certification that the ordinance or
9resolution received referendum approval in the case of the
10imposition of the tax, must be adopted and a certified copy of
11that ordinance or resolution must be filed with the Department
12on or before May 15, 2007, whereupon the Department shall
13proceed to administer and enforce this Section as of July 1,
142007.
15    Notwithstanding any provision in this Section to the
16contrary, if, in a non-home rule municipality with more than
176,500 but fewer than 7,000 inhabitants, as determined by the
18last preceding federal decennial census, an ordinance or
19resolution under this Section imposes or discontinues a tax or
20changes the tax rate on or before May 20, 2009, then that
21ordinance or resolution, together with a certification that the
22ordinance or resolution received referendum approval in the
23case of the imposition of the tax, must be adopted and a
24certified copy of that ordinance or resolution must be filed
25with the Department on or before May 20, 2009, whereupon the
26Department shall proceed to administer and enforce this Section

 

 

HB2528- 35 -LRB100 10543 AWJ 20759 b

1as of July 1, 2009.
2    A non-home rule municipality may file a certified copy of
3an ordinance or resolution, with a certification that the
4ordinance or resolution received referendum approval in the
5case of the imposition of the tax, with the Department of
6Revenue, as required under this Section, only after October 2,
72000.
8    The tax authorized by this Section may not be more than 1%
9and may be imposed only in 1/4% increments.
10(Source: P.A. 98-584, eff. 8-27-13.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.