103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2324

 

Introduced 2/10/2023, by Sen. David Koehler

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.7

    Amends the County School Facility and Resources Occupation Tax Law of the Counties Code. Provides that, for elections held after the effective date of the amendatory Act, regional superintendents of schools must, upon receipt of a resolution or resolutions of school district boards that represent more than 51% of the student enrollment within the county or two-thirds of the school districts (currently, upon receipt of a resolution or resolutions of school district boards that represent more than 50% of the student enrollment within the county), certify the question regarding imposition of the school facility and resources occupation tax to the proper election authority for submission to the electors of the county at the next regular election at which the question lawfully may be submitted to the electors. Effective immediately.


LRB103 27160 AWJ 53529 b

 

 

A BILL FOR

 

SB2324LRB103 27160 AWJ 53529 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
5Section 5-1006.7 as follows:
 
6    (55 ILCS 5/5-1006.7)
7    Sec. 5-1006.7. School facility and resources occupation
8taxes.
9    (a) In any county, a tax shall be imposed upon all persons
10engaged in the business of selling tangible personal property,
11other than personal property titled or registered with an
12agency of this State's government, at retail in the county on
13the gross receipts from the sales made in the course of
14business to provide revenue to be used exclusively for (i)
15school facility purposes (except as otherwise provided in this
16Section), (ii) school resource officers and mental health
17professionals, or (iii) school facility purposes, school
18resource officers, and mental health professionals if a
19proposition for the tax has been submitted to the electors of
20that county and approved by a majority of those voting on the
21question as provided in subsection (c). The tax under this
22Section shall be imposed only in one-quarter percent
23increments and may not exceed 1%.

 

 

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1    This additional tax may not be imposed on tangible
2personal property taxed at the 1% rate under the Retailers'
3Occupation Tax Act (or at the 0% rate imposed under Public Act
4102-700 this amendatory Act of the 102nd General Assembly).
5Beginning December 1, 2019 and through December 31, 2020, this
6tax is not imposed on sales of aviation fuel unless the tax
7revenue is expended for airport-related purposes. If the
8county does not have an airport-related purpose to which it
9dedicates aviation fuel tax revenue, then aviation fuel is
10excluded from the tax. The county must comply with the
11certification requirements for airport-related purposes under
12Section 2-22 of the Retailers' Occupation Tax Act. For
13purposes of this Section, "airport-related purposes" has the
14meaning ascribed in Section 6z-20.2 of the State Finance Act.
15Beginning January 1, 2021, this tax is not imposed on sales of
16aviation fuel for so long as the revenue use requirements of 49
17U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
18The Department of Revenue has full power to administer and
19enforce this subsection, to collect all taxes and penalties
20due under this subsection, to dispose of taxes and penalties
21so collected in the manner provided in this subsection, and to
22determine all rights to credit memoranda arising on account of
23the erroneous payment of a tax or penalty under this
24subsection. The Department shall deposit all taxes and
25penalties collected under this subsection into a special fund
26created for that purpose.

 

 

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1    In the administration of and compliance with this
2subsection, the Department and persons who are subject to this
3subsection (i) have the same rights, remedies, privileges,
4immunities, powers, and duties, (ii) are subject to the same
5conditions, restrictions, limitations, penalties, and
6definitions of terms, and (iii) shall employ the same modes of
7procedure as are set forth in Sections 1 through 1o, 2 through
82-70 (in respect to all provisions contained in those Sections
9other than the State rate of tax), 2a through 2h, 3 (except as
10to the disposition of taxes and penalties collected, and
11except that the retailer's discount is not allowed for taxes
12paid on aviation fuel that are subject to the revenue use
13requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
145a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
156d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
16Occupation Tax Act and all provisions of the Uniform Penalty
17and Interest Act as if those provisions were set forth in this
18subsection.
19    The certificate of registration that is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act permits the retailer to engage in a business that is
22taxable without registering separately with the Department
23under an ordinance or resolution under this subsection.
24    Persons subject to any tax imposed under the authority
25granted in this subsection may reimburse themselves for their
26seller's tax liability by separately stating that tax as an

 

 

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1additional charge, which may be stated in combination, in a
2single amount, with State tax that sellers are required to
3collect under the Use Tax Act, pursuant to any bracketed
4schedules set forth by the Department.
5    (b) If a tax has been imposed under subsection (a), then a
6service occupation tax must also be imposed at the same rate
7upon all persons engaged, in the county, in the business of
8making sales of service, who, as an incident to making those
9sales of service, transfer tangible personal property within
10the county as an incident to a sale of service.
11    This tax may not be imposed on tangible personal property
12taxed at the 1% rate under the Service Occupation Tax Act (or
13at the 0% rate imposed under Public Act 102-700 this
14amendatory Act of the 102nd General Assembly). Beginning
15December 1, 2019 and through December 31, 2020, this tax is not
16imposed on sales of aviation fuel unless the tax revenue is
17expended for airport-related purposes. If the county does not
18have an airport-related purpose to which it dedicates aviation
19fuel tax revenue, then aviation fuel is excluded from the tax.
20The county must comply with the certification requirements for
21airport-related purposes under Section 2-22 of the Retailers'
22Occupation Tax Act. For purposes of this Section,
23"airport-related purposes" has the meaning ascribed in Section
246z-20.2 of the State Finance Act. Beginning January 1, 2021,
25this tax is not imposed on sales of aviation fuel for so long
26as the revenue use requirements of 49 U.S.C. 47107(b) and 49

 

 

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1U.S.C. 47133 are binding on the county.
2    The tax imposed under this subsection and all civil
3penalties that may be assessed as an incident thereof shall be
4collected and enforced by the Department and deposited into a
5special fund created for that purpose. The Department has full
6power to administer and enforce this subsection, to collect
7all taxes and penalties due under this subsection, to dispose
8of taxes and penalties so collected in the manner provided in
9this subsection, and to determine all rights to credit
10memoranda arising on account of the erroneous payment of a tax
11or penalty under this subsection.
12    In the administration of and compliance with this
13subsection, the Department and persons who are subject to this
14subsection shall (i) have the same rights, remedies,
15privileges, immunities, powers and duties, (ii) be subject to
16the same conditions, restrictions, limitations, penalties and
17definition of terms, and (iii) employ the same modes of
18procedure as are set forth in Sections 2 (except that that
19reference to State in the definition of supplier maintaining a
20place of business in this State means the county), 2a through
212d, 3 through 3-50 (in respect to all provisions contained in
22those Sections other than the State rate of tax), 4 (except
23that the reference to the State shall be to the county), 5, 7,
248 (except that the jurisdiction to which the tax is a debt to
25the extent indicated in that Section 8 is the county), 9
26(except as to the disposition of taxes and penalties

 

 

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1collected, and except that the retailer's discount is not
2allowed for taxes paid on aviation fuel that are subject to the
3revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
447133), 10, 11, 12 (except the reference therein to Section 2b
5of the Retailers' Occupation Tax Act), 13 (except that any
6reference to the State means the county), Section 15, 16, 17,
718, 19, and 20 of the Service Occupation Tax Act and all
8provisions of the Uniform Penalty and Interest Act, as fully
9as if those provisions were set forth herein.
10    Persons subject to any tax imposed under the authority
11granted in this subsection may reimburse themselves for their
12serviceman's tax liability by separately stating the tax as an
13additional charge, which may be stated in combination, in a
14single amount, with State tax that servicemen are authorized
15to collect under the Service Use Tax Act, pursuant to any
16bracketed schedules set forth by the Department.
17    (c) The tax under this Section may not be imposed until the
18question of imposing the tax has been submitted to the
19electors of the county at a regular election and approved by a
20majority of the electors voting on the question. For all
21regular elections held prior to August 23, 2011 (the effective
22date of Public Act 97-542), upon a resolution by the county
23board or a resolution by school district boards that represent
24at least 51% of the student enrollment within the county, the
25county board must certify the question to the proper election
26authority in accordance with the Election Code.

 

 

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1    For all regular elections held prior to August 23, 2011
2(the effective date of Public Act 97-542), the election
3authority must submit the question in substantially the
4following form:
5        Shall (name of county) be authorized to impose a
6    retailers' occupation tax and a service occupation tax
7    (commonly referred to as a "sales tax") at a rate of
8    (insert rate) to be used exclusively for school facility
9    purposes?
10    The election authority must record the votes as "Yes" or
11"No".
12    If a majority of the electors voting on the question vote
13in the affirmative, then the county may, thereafter, impose
14the tax.
15    For all regular elections held on or after August 23, 2011
16(the effective date of Public Act 97-542) through the
17effective date of this amendatory Act of the 103rd General
18Assembly, the regional superintendent of schools for the
19county must, upon receipt of a resolution or resolutions of
20school district boards that represent more than 50% of the
21student enrollment within the county, certify the question to
22the proper election authority for submission to the electors
23of the county at the next regular election at which the
24question lawfully may be submitted to the electors, all in
25accordance with the Election Code. For all regular elections
26held after the effective date of this amendatory Act of the

 

 

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1103rd General Assembly, the regional superintendent of schools
2for the county must, upon receipt of a resolution or
3resolutions of school district boards that represent more than
451% of the student enrollment within the county or two-thirds
5of the school districts, certify the question to the proper
6election authority for submission to the electors of the
7county at the next regular election at which the question
8lawfully may be submitted to the electors, all in accordance
9with the Election Code.
10    For all regular elections held on or after August 23, 2011
11(the effective date of Public Act 97-542) and before August
1223, 2019 (the effective date of Public Act 101-455), the
13election authority must submit the question in substantially
14the following form:
15        Shall a retailers' occupation tax and a service
16    occupation tax (commonly referred to as a "sales tax") be
17    imposed in (name of county) at a rate of (insert rate) to
18    be used exclusively for school facility purposes?
19    The election authority must record the votes as "Yes" or
20"No".
21    If a majority of the electors voting on the question vote
22in the affirmative, then the tax shall be imposed at the rate
23set forth in the question.
24    For all regular elections held on or after August 23, 2019
25(the effective date of Public Act 101-455), the election
26authority must submit the question as follows:

 

 

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1        (1) If the referendum is to expand the use of revenues
2    from a currently imposed tax exclusively for school
3    facility purposes to include school resource officers and
4    mental health professionals, the question shall be in
5    substantially the following form:
6            In addition to school facility purposes, shall
7        (name of county) school districts be authorized to use
8        revenues from the tax commonly referred to as the
9        school facility sales tax that is currently imposed in
10        (name of county) at a rate of (insert rate) for school
11        resource officers and mental health professionals?
12        (2) If the referendum is to increase the rate of a tax
13    currently imposed exclusively for school facility purposes
14    at less than 1% and dedicate the additional revenues for
15    school resource officers and mental health professionals,
16    the question shall be in substantially the following form:
17            Shall the tax commonly referred to as the school
18        facility sales tax that is currently imposed in (name
19        of county) at the rate of (insert rate) be increased to
20        a rate of (insert rate) with the additional revenues
21        used exclusively for school resource officers and
22        mental health professionals?
23        (3) If the referendum is to impose a tax in a county
24    that has not previously imposed a tax under this Section
25    exclusively for school facility purposes, the question
26    shall be in substantially the following form:

 

 

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1            Shall a retailers' occupation tax and a service
2        occupation tax (commonly referred to as a sales tax)
3        be imposed in (name of county) at a rate of (insert
4        rate) to be used exclusively for school facility
5        purposes?
6        (4) If the referendum is to impose a tax in a county
7    that has not previously imposed a tax under this Section
8    exclusively for school resource officers and mental health
9    professionals, the question shall be in substantially the
10    following form:
11            Shall a retailers' occupation tax and a service
12        occupation tax (commonly referred to as a sales tax)
13        be imposed in (name of county) at a rate of (insert
14        rate) to be used exclusively for school resource
15        officers and mental health professionals?
16        (5) If the referendum is to impose a tax in a county
17    that has not previously imposed a tax under this Section
18    exclusively for school facility purposes, school resource
19    officers, and mental health professionals, the question
20    shall be in substantially the following form:
21            Shall a retailers' occupation tax and a service
22        occupation tax (commonly referred to as a sales tax)
23        be imposed in (name of county) at a rate of (insert
24        rate) to be used exclusively for school facility
25        purposes, school resource officers, and mental health
26        professionals?

 

 

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1    The election authority must record the votes as "Yes" or
2"No".
3    If a majority of the electors voting on the question vote
4in the affirmative, then the tax shall be imposed at the rate
5set forth in the question.
6    For the purposes of this subsection (c), "enrollment"
7means the head count of the students residing in the county on
8the last school day of September of each year, which must be
9reported on the Illinois State Board of Education Public
10School Fall Enrollment/Housing Report.
11    (d) Except as otherwise provided, the Department shall
12immediately pay over to the State Treasurer, ex officio, as
13trustee, all taxes and penalties collected under this Section
14to be deposited into the School Facility Occupation Tax Fund,
15which shall be an unappropriated trust fund held outside the
16State treasury. Taxes and penalties collected on aviation fuel
17sold on or after December 1, 2019 and through December 31,
182020, shall be immediately paid over by the Department to the
19State Treasurer, ex officio, as trustee, for deposit into the
20Local Government Aviation Trust Fund. The Department shall
21only pay moneys into the Local Government Aviation Trust Fund
22under this Section for so long as the revenue use requirements
23of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
24county.
25    On or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

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1disbursement of stated sums of money to the regional
2superintendents of schools in counties from which retailers or
3servicemen have paid taxes or penalties to the Department
4during the second preceding calendar month. The amount to be
5paid to each regional superintendent of schools and disbursed
6to him or her in accordance with Section 3-14.31 of the School
7Code, is equal to the amount (not including credit memoranda
8and not including taxes and penalties collected on aviation
9fuel sold on or after December 1, 2019 and through December 31,
102020) collected from the county under this Section during the
11second preceding calendar month by the Department, (i) less 2%
12of that amount (except the amount collected on aviation fuel
13sold on or after December 1, 2019 and through December 31,
142020), of which 50% shall be deposited into the Tax Compliance
15and Administration Fund and shall be used by the Department,
16subject to appropriation, to cover the costs of the Department
17in administering and enforcing the provisions of this Section,
18on behalf of the county, and 50% shall be distributed to the
19regional superintendent of schools to cover the costs in
20administering and enforcing the provisions of this Section; ,
21(ii) plus an amount that the Department determines is
22necessary to offset any amounts that were erroneously paid to
23a different taxing body; (iii) less an amount equal to the
24amount of refunds made during the second preceding calendar
25month by the Department on behalf of the county; and (iv) less
26any amount that the Department determines is necessary to

 

 

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1offset any amounts that were payable to a different taxing
2body but were erroneously paid to the county. When certifying
3the amount of a monthly disbursement to a regional
4superintendent of schools under this Section, the Department
5shall increase or decrease the amounts by an amount necessary
6to offset any miscalculation of previous disbursements within
7the previous 6 months from the time a miscalculation is
8discovered.
9    Within 10 days after receipt by the Comptroller from the
10Department of the disbursement certification to the regional
11superintendents of the schools provided for in this Section,
12the Comptroller shall cause the orders to be drawn for the
13respective amounts in accordance with directions contained in
14the certification.
15    If the Department determines that a refund should be made
16under this Section to a claimant instead of issuing a credit
17memorandum, then the Department shall notify the Comptroller,
18who shall cause the order to be drawn for the amount specified
19and to the person named in the notification from the
20Department. The refund shall be paid by the Treasurer out of
21the School Facility Occupation Tax Fund or the Local
22Government Aviation Trust Fund, as appropriate.
23    (e) For the purposes of determining the local governmental
24unit whose tax is applicable, a retail sale by a producer of
25coal or another mineral mined in Illinois is a sale at retail
26at the place where the coal or other mineral mined in Illinois

 

 

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1is extracted from the earth. This subsection does not apply to
2coal or another mineral when it is delivered or shipped by the
3seller to the purchaser at a point outside Illinois so that the
4sale is exempt under the United States Constitution as a sale
5in interstate or foreign commerce.
6    (f) Nothing in this Section may be construed to authorize
7a tax to be imposed upon the privilege of engaging in any
8business that under the Constitution of the United States may
9not be made the subject of taxation by this State.
10    (g) If a county board imposes a tax under this Section
11pursuant to a referendum held before August 23, 2011 (the
12effective date of Public Act 97-542) at a rate below the rate
13set forth in the question approved by a majority of electors of
14that county voting on the question as provided in subsection
15(c), then the county board may, by ordinance, increase the
16rate of the tax up to the rate set forth in the question
17approved by a majority of electors of that county voting on the
18question as provided in subsection (c). If a county board
19imposes a tax under this Section pursuant to a referendum held
20before August 23, 2011 (the effective date of Public Act
2197-542), then the board may, by ordinance, discontinue or
22reduce the rate of the tax. If a tax is imposed under this
23Section pursuant to a referendum held on or after August 23,
242011 (the effective date of Public Act 97-542) and before
25August 23, 2019 (the effective date of Public Act 101-455),
26then the county board may reduce or discontinue the tax, but

 

 

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1only in accordance with subsection (h-5) of this Section. If a
2tax is imposed under this Section pursuant to a referendum
3held on or after August 23, 2019 (the effective date of Public
4Act 101-455), then the county board may reduce or discontinue
5the tax, but only in accordance with subsection (h-10). If,
6however, a school board issues bonds that are secured by the
7proceeds of the tax under this Section, then the county board
8may not reduce the tax rate or discontinue the tax if that rate
9reduction or discontinuance would adversely affect the school
10board's ability to pay the principal and interest on those
11bonds as they become due or necessitate the extension of
12additional property taxes to pay the principal and interest on
13those bonds. If the county board reduces the tax rate or
14discontinues the tax, then a referendum must be held in
15accordance with subsection (c) of this Section in order to
16increase the rate of the tax or to reimpose the discontinued
17tax.
18    Until January 1, 2014, the results of any election that
19imposes, reduces, or discontinues a tax under this Section
20must be certified by the election authority, and any ordinance
21that increases or lowers the rate or discontinues the tax must
22be certified by the county clerk and, in each case, filed with
23the Illinois Department of Revenue either (i) on or before the
24first day of April, whereupon the Department shall proceed to
25administer and enforce the tax or change in the rate as of the
26first day of July next following the filing; or (ii) on or

 

 

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1before the first day of October, whereupon the Department
2shall proceed to administer and enforce the tax or change in
3the rate as of the first day of January next following the
4filing.
5    Beginning January 1, 2014, the results of any election
6that imposes, reduces, or discontinues a tax under this
7Section must be certified by the election authority, and any
8ordinance that increases or lowers the rate or discontinues
9the tax must be certified by the county clerk and, in each
10case, filed with the Illinois Department of Revenue either (i)
11on or before the first day of May, whereupon the Department
12shall proceed to administer and enforce the tax or change in
13the rate as of the first day of July next following the filing;
14or (ii) on or before the first day of October, whereupon the
15Department shall proceed to administer and enforce the tax or
16change in the rate as of the first day of January next
17following the filing.
18    (h) For purposes of this Section, "school facility
19purposes" means (i) the acquisition, development,
20construction, reconstruction, rehabilitation, improvement,
21financing, architectural planning, and installation of capital
22facilities consisting of buildings, structures, and durable
23equipment and for the acquisition and improvement of real
24property and interest in real property required, or expected
25to be required, in connection with the capital facilities and
26(ii) the payment of bonds or other obligations heretofore or

 

 

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1hereafter issued, including bonds or other obligations
2heretofore or hereafter issued to refund or to continue to
3refund bonds or other obligations issued, for school facility
4purposes, provided that the taxes levied to pay those bonds
5are abated by the amount of the taxes imposed under this
6Section that are used to pay those bonds. "School facility
7purposes" also includes fire prevention, safety, energy
8conservation, accessibility, school security, and specified
9repair purposes set forth under Section 17-2.11 of the School
10Code.
11    (h-5) A county board in a county where a tax has been
12imposed under this Section pursuant to a referendum held on or
13after August 23, 2011 (the effective date of Public Act
1497-542) and before August 23, 2019 (the effective date of
15Public Act 101-455) may, by ordinance or resolution, submit to
16the voters of the county the question of reducing or
17discontinuing the tax. In the ordinance or resolution, the
18county board shall certify the question to the proper election
19authority in accordance with the Election Code. The election
20authority must submit the question in substantially the
21following 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)?

 

 

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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    (h-10) A county board in a county where a tax has been
6imposed under this Section pursuant to a referendum held on or
7after August 23, 2019 (the effective date of Public Act
8101-455) may, by ordinance or resolution, submit to the voters
9of the county the question of reducing or discontinuing the
10tax. In the ordinance or resolution, the county board shall
11certify the question to the proper election authority in
12accordance with the Election Code. The election authority must
13submit the question in substantially the following form:
14        Shall the school facility and resources retailers'
15    occupation tax and service occupation tax (commonly
16    referred to as the school facility and resources sales
17    tax) currently imposed in (name of county) at a rate of
18    (insert rate) be (reduced to (insert rate))
19    (discontinued)?
20    The election authority must record the votes as "Yes" or
21"No".
22    If a majority of the electors voting on the question vote
23in the affirmative, then, subject to the provisions of
24subsection (g) of this Section, the tax shall be reduced or
25discontinued as set forth in the question.
26    (i) This Section does not apply to Cook County.

 

 

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1    (j) This Section may be cited as the County School
2Facility and Resources Occupation Tax Law.
3(Source: P.A. 101-10, eff. 6-5-19; 101-455, eff. 8-23-19;
4101-604, eff. 12-13-19; 102-700, eff. 4-19-22; 102-1062, eff.
57-1-22; revised 8-10-22.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.