98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3158

 

Introduced , by Rep. Al Riley

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 3615/4.03  from Ch. 111 2/3, par. 704.03
70 ILCS 3615/4.03.1  from Ch. 111 2/3, par. 704.03.1

    Amends the Regional Transportation Authority Act. In Sections regarding taxes, permits a municipality that is not being served, or that being is underserved, by the Regional Transportation Authority to, by resolution, provide for the sequestration of all taxes collected within its corporate boundaries under this Section. Provides that taxes sequestered in this way shall be held in trust by the Illinois Department of Revenue and shall be paid over to the Regional Transportation Authority as the municipality may by resolution provide. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning local government, which may be referred
2to as the Fairness in Transportation Taxation Act.
 
3    Be it enacted by the People of the State of Illinois,
4represented in the General Assembly:
 
5    Section 5. The Regional Transportation Authority Act is
6amended by changing Sections 4.03 and 4.03.1 as follows:
 
7    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
8    Sec. 4.03. Taxes.
9    (a) In order to carry out any of the powers or purposes of
10the Authority, the Board may by ordinance adopted with the
11concurrence of 12 of the then Directors, impose throughout the
12metropolitan region any or all of the taxes provided in this
13Section. Except as otherwise provided in this Act, taxes
14imposed under this Section and civil penalties imposed incident
15thereto shall be collected and enforced by the State Department
16of Revenue. The Department shall have the power to administer
17and enforce the taxes and to determine all rights for refunds
18for erroneous payments of the taxes. Nothing in this amendatory
19Act of the 95th General Assembly is intended to invalidate any
20taxes currently imposed by the Authority. The increased vote
21requirements to impose a tax shall only apply to actions taken
22after the effective date of this amendatory Act of the 95th
23General Assembly.

 

 

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1    (b) The Board may impose a public transportation tax upon
2all persons engaged in the metropolitan region in the business
3of selling at retail motor fuel for operation of motor vehicles
4upon public highways. The tax shall be at a rate not to exceed
55% of the gross receipts from the sales of motor fuel in the
6course of the business. As used in this Act, the term "motor
7fuel" shall have the same meaning as in the Motor Fuel Tax Law.
8The Board may provide for details of the tax. The provisions of
9any tax shall conform, as closely as may be practicable, to the
10provisions of the Municipal Retailers Occupation Tax Act,
11including without limitation, conformity to penalties with
12respect to the tax imposed and as to the powers of the State
13Department of Revenue to promulgate and enforce rules and
14regulations relating to the administration and enforcement of
15the provisions of the tax imposed, except that reference in the
16Act to any municipality shall refer to the Authority and the
17tax shall be imposed only with regard to receipts from sales of
18motor fuel in the metropolitan region, at rates as limited by
19this Section.
20    (c) In connection with the tax imposed under paragraph (b)
21of this Section the Board may impose a tax upon the privilege
22of using in the metropolitan region motor fuel for the
23operation of a motor vehicle upon public highways, the tax to
24be at a rate not in excess of the rate of tax imposed under
25paragraph (b) of this Section. The Board may provide for
26details of the tax.

 

 

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1    (d) The Board may impose a motor vehicle parking tax upon
2the privilege of parking motor vehicles at off-street parking
3facilities in the metropolitan region at which a fee is
4charged, and may provide for reasonable classifications in and
5exemptions to the tax, for administration and enforcement
6thereof and for civil penalties and refunds thereunder and may
7provide criminal penalties thereunder, the maximum penalties
8not to exceed the maximum criminal penalties provided in the
9Retailers' Occupation Tax Act. The Authority may collect and
10enforce the tax itself or by contract with any unit of local
11government. The State Department of Revenue shall have no
12responsibility for the collection and enforcement unless the
13Department agrees with the Authority to undertake the
14collection and enforcement. As used in this paragraph, the term
15"parking facility" means a parking area or structure having
16parking spaces for more than 2 vehicles at which motor vehicles
17are permitted to park in return for an hourly, daily, or other
18periodic fee, whether publicly or privately owned, but does not
19include parking spaces on a public street, the use of which is
20regulated by parking meters.
21    (e) The Board may impose a Regional Transportation
22Authority Retailers' Occupation Tax upon all persons engaged in
23the business of selling tangible personal property at retail in
24the metropolitan region. In Cook County the tax rate shall be
251.25% of the gross receipts from sales of food for human
26consumption that is to be consumed off the premises where it is

 

 

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1sold (other than alcoholic beverages, soft drinks and food that
2has been prepared for immediate consumption) and prescription
3and nonprescription medicines, drugs, medical appliances and
4insulin, urine testing materials, syringes and needles used by
5diabetics, and 1% of the gross receipts from other taxable
6sales made in the course of that business. In DuPage, Kane,
7Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
8of the gross receipts from all taxable sales made in the course
9of that business. The tax imposed under this Section and all
10civil penalties that may be assessed as an incident thereof
11shall be collected and enforced by the State Department of
12Revenue. The Department shall have full power to administer and
13enforce this Section; to collect all taxes and penalties so
14collected in the manner hereinafter provided; and to determine
15all rights to credit memoranda arising on account of the
16erroneous payment of tax or penalty hereunder. In the
17administration of, and compliance with this Section, the
18Department and persons who are subject to this Section shall
19have the same rights, remedies, privileges, immunities, powers
20and duties, and be subject to the same conditions,
21restrictions, limitations, penalties, exclusions, exemptions
22and definitions of terms, and employ the same modes of
23procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
241e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
25therein other than the State rate of tax), 2c, 3 (except as to
26the disposition of taxes and penalties collected), 4, 5, 5a,

 

 

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15b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
29, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
3Section 3-7 of the Uniform Penalty and Interest Act, as fully
4as if those provisions were set forth herein.
5    Persons subject to any tax imposed under the authority
6granted in this Section may reimburse themselves for their
7seller's tax liability hereunder by separately stating the tax
8as an additional charge, which charge may be stated in
9combination in a single amount with State taxes that sellers
10are required to collect under the Use Tax Act, under any
11bracket schedules the Department may prescribe.
12    Whenever the Department determines that a refund should be
13made under this Section to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the warrant to be drawn for the
16amount specified, and to the person named, in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the Regional Transportation Authority tax fund
19established under paragraph (n) of this Section.
20    If a tax is imposed under this subsection (e), a tax shall
21also be imposed under subsections (f) and (g) of this Section.
22    For the purpose of determining whether a tax authorized
23under this Section is applicable, a retail sale by a producer
24of coal or other mineral mined in Illinois, is a sale at retail
25at the place where the coal or other mineral mined in Illinois
26is extracted from the earth. This paragraph does not apply to

 

 

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1coal or other mineral when it is delivered or shipped by the
2seller to the purchaser at a point outside Illinois so that the
3sale is exempt under the Federal Constitution as a sale in
4interstate or foreign commerce.
5    No tax shall be imposed or collected under this subsection
6on the sale of a motor vehicle in this State to a resident of
7another state if that motor vehicle will not be titled in this
8State.
9    Nothing in this Section shall be construed to authorize the
10Regional Transportation Authority to impose a tax upon the
11privilege of engaging in any business that under the
12Constitution of the United States may not be made the subject
13of taxation by this State.
14    (f) If a tax has been imposed under paragraph (e), a
15Regional Transportation Authority Service Occupation Tax shall
16also be imposed upon all persons engaged, in the metropolitan
17region in the business of making sales of service, who as an
18incident to making the sales of service, transfer tangible
19personal property within the metropolitan region, either in the
20form of tangible personal property or in the form of real
21estate as an incident to a sale of service. In Cook County, the
22tax rate shall be: (1) 1.25% of the serviceman's cost price of
23food prepared for immediate consumption and transferred
24incident to a sale of service subject to the service occupation
25tax by an entity licensed under the Hospital Licensing Act, the
26Nursing Home Care Act, the Specialized Mental Health

 

 

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1Rehabilitation Act, or the ID/DD Community Care Act that is
2located in the metropolitan region; (2) 1.25% of the selling
3price of food for human consumption that is to be consumed off
4the premises where it is sold (other than alcoholic beverages,
5soft drinks and food that has been prepared for immediate
6consumption) and prescription and nonprescription medicines,
7drugs, medical appliances and insulin, urine testing
8materials, syringes and needles used by diabetics; and (3) 1%
9of the selling price from other taxable sales of tangible
10personal property transferred. In DuPage, Kane, Lake, McHenry
11and Will Counties the rate shall be 0.75% of the selling price
12of all tangible personal property transferred.
13    The tax imposed under this paragraph and all civil
14penalties that may be assessed as an incident thereof shall be
15collected and enforced by the State Department of Revenue. The
16Department shall have full power to administer and enforce this
17paragraph; to collect all taxes and penalties due hereunder; to
18dispose of taxes and penalties collected in the manner
19hereinafter provided; and to determine all rights to credit
20memoranda arising on account of the erroneous payment of tax or
21penalty hereunder. In the administration of and compliance with
22this paragraph, the Department and persons who are subject to
23this paragraph shall have the same rights, remedies,
24privileges, immunities, powers and duties, and be subject to
25the same conditions, restrictions, limitations, penalties,
26exclusions, exemptions and definitions of terms, and employ the

 

 

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1same modes of procedure, as are prescribed in Sections 1a-1, 2,
22a, 3 through 3-50 (in respect to all provisions therein other
3than the State rate of tax), 4 (except that the reference to
4the State shall be to the Authority), 5, 7, 8 (except that the
5jurisdiction to which the tax shall be a debt to the extent
6indicated in that Section 8 shall be the Authority), 9 (except
7as to the disposition of taxes and penalties collected, and
8except that the returned merchandise credit for this tax may
9not be taken against any State tax), 10, 11, 12 (except the
10reference therein to Section 2b of the Retailers' Occupation
11Tax Act), 13 (except that any reference to the State shall mean
12the Authority), the first paragraph of Section 15, 16, 17, 18,
1319 and 20 of the Service Occupation Tax Act and Section 3-7 of
14the Uniform Penalty and Interest Act, as fully as if those
15provisions were set forth herein.
16    Persons subject to any tax imposed under the authority
17granted in this paragraph may reimburse themselves for their
18serviceman's tax liability hereunder by separately stating the
19tax as an additional charge, that charge may be stated in
20combination in a single amount with State tax that servicemen
21are authorized to collect under the Service Use Tax Act, under
22any bracket schedules the Department may prescribe.
23    Whenever the Department determines that a refund should be
24made under this paragraph 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 Regional Transportation Authority tax fund
4established under paragraph (n) of this Section.
5    Nothing in this paragraph shall be construed to authorize
6the Authority to impose a tax upon the privilege of engaging in
7any business that under the Constitution of the United States
8may not be made the subject of taxation by the State.
9    (g) If a tax has been imposed under paragraph (e), a tax
10shall also be imposed upon the privilege of using in the
11metropolitan region, any item of tangible personal property
12that is purchased outside the metropolitan region at retail
13from a retailer, and that is titled or registered with an
14agency of this State's government. In Cook County the tax rate
15shall be 1% of the selling price of the tangible personal
16property, as "selling price" is defined in the Use Tax Act. In
17DuPage, Kane, Lake, McHenry and Will counties the tax rate
18shall be 0.75% of the selling price of the tangible personal
19property, as "selling price" is defined in the Use Tax Act. The
20tax shall be collected from persons whose Illinois address for
21titling or registration purposes is given as being in the
22metropolitan region. The tax shall be collected by the
23Department of Revenue for the Regional Transportation
24Authority. The tax must be paid to the State, or an exemption
25determination must be obtained from the Department of Revenue,
26before the title or certificate of registration for the

 

 

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1property may be issued. The tax or proof of exemption may be
2transmitted to the Department by way of the State agency with
3which, or the State officer with whom, the tangible personal
4property must be titled or registered if the Department and the
5State agency or State officer determine that this procedure
6will expedite the processing of applications for title or
7registration.
8    The Department shall have full power to administer and
9enforce this paragraph; to collect all taxes, penalties and
10interest due hereunder; to dispose of taxes, penalties and
11interest collected in the manner hereinafter provided; and to
12determine all rights to credit memoranda or refunds arising on
13account of the erroneous payment of tax, penalty or interest
14hereunder. In the administration of and compliance with this
15paragraph, the Department and persons who are subject to this
16paragraph shall have the same rights, remedies, privileges,
17immunities, powers and duties, and be subject to the same
18conditions, restrictions, limitations, penalties, exclusions,
19exemptions and definitions of terms and employ the same modes
20of procedure, as are prescribed in Sections 2 (except the
21definition of "retailer maintaining a place of business in this
22State"), 3 through 3-80 (except provisions pertaining to the
23State rate of tax, and except provisions concerning collection
24or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
2519 (except the portions pertaining to claims by retailers and
26except the last paragraph concerning refunds), 20, 21 and 22 of

 

 

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1the Use Tax Act, and are not inconsistent with this paragraph,
2as fully as if those provisions were set forth herein.
3    Whenever the Department determines that a refund should be
4made under this paragraph to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the order to be drawn for the
7amount specified, and to the person named in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the Regional Transportation Authority tax fund
10established under paragraph (n) of this Section.
11    (h) The Authority may impose a replacement vehicle tax of
12$50 on any passenger car as defined in Section 1-157 of the
13Illinois Vehicle Code purchased within the metropolitan region
14by or on behalf of an insurance company to replace a passenger
15car of an insured person in settlement of a total loss claim.
16The tax imposed may not become effective before the first day
17of the month following the passage of the ordinance imposing
18the tax and receipt of a certified copy of the ordinance by the
19Department of Revenue. The Department of Revenue shall collect
20the tax for the Authority in accordance with Sections 3-2002
21and 3-2003 of the Illinois Vehicle Code.
22    The Department shall immediately pay over to the State
23Treasurer, ex officio, as trustee, all taxes collected
24hereunder.
25    As soon as possible after the first day of each month,
26beginning January 1, 2011, upon certification of the Department

 

 

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1of Revenue, the Comptroller shall order transferred, and the
2Treasurer shall transfer, to the STAR Bonds Revenue Fund the
3local sales tax increment, as defined in the Innovation
4Development and Economy Act, collected under this Section
5during the second preceding calendar month for sales within a
6STAR bond district.
7    After the monthly transfer to the STAR Bonds Revenue Fund,
8on or before the 25th day of each calendar month, the
9Department shall prepare and certify to the Comptroller the
10disbursement of stated sums of money to the Authority. The
11amount to be paid to the Authority shall be the amount
12collected hereunder during the second preceding calendar month
13by the Department, less any amount determined by the Department
14to be necessary for the payment of refunds, and less any
15amounts that are transferred to the STAR Bonds Revenue Fund.
16Within 10 days after receipt by the Comptroller of the
17disbursement certification to the Authority provided for in
18this Section to be given to the Comptroller by the Department,
19the Comptroller shall cause the orders to be drawn for that
20amount in accordance with the directions contained in the
21certification.
22    (i) The Board may not impose any other taxes except as it
23may from time to time be authorized by law to impose.
24    (j) A certificate of registration issued by the State
25Department of Revenue to a retailer under the Retailers'
26Occupation Tax Act or under the Service Occupation Tax Act

 

 

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1shall permit the registrant to engage in a business that is
2taxed under the tax imposed under paragraphs (b), (e), (f) or
3(g) of this Section and no additional registration shall be
4required under the tax. A certificate issued under the Use Tax
5Act or the Service Use Tax Act shall be applicable with regard
6to any tax imposed under paragraph (c) of this Section.
7    (k) The provisions of any tax imposed under paragraph (c)
8of this Section shall conform as closely as may be practicable
9to the provisions of the Use Tax Act, including without
10limitation conformity as to penalties with respect to the tax
11imposed and as to the powers of the State Department of Revenue
12to promulgate and enforce rules and regulations relating to the
13administration and enforcement of the provisions of the tax
14imposed. The taxes shall be imposed only on use within the
15metropolitan region and at rates as provided in the paragraph.
16    (l) The Board in imposing any tax as provided in paragraphs
17(b) and (c) of this Section, shall, after seeking the advice of
18the State Department of Revenue, provide means for retailers,
19users or purchasers of motor fuel for purposes other than those
20with regard to which the taxes may be imposed as provided in
21those paragraphs to receive refunds of taxes improperly paid,
22which provisions may be at variance with the refund provisions
23as applicable under the Municipal Retailers Occupation Tax Act.
24The State Department of Revenue may provide for certificates of
25registration for users or purchasers of motor fuel for purposes
26other than those with regard to which taxes may be imposed as

 

 

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1provided in paragraphs (b) and (c) of this Section to
2facilitate the reporting and nontaxability of the exempt sales
3or uses.
4    (m) Any ordinance imposing or discontinuing any tax under
5this Section shall be adopted and a certified copy thereof
6filed with the Department on or before June 1, whereupon the
7Department of Revenue shall proceed to administer and enforce
8this Section on behalf of the Regional Transportation Authority
9as of September 1 next following such adoption and filing.
10Beginning January 1, 1992, an ordinance or resolution imposing
11or discontinuing the tax hereunder shall be adopted and a
12certified copy thereof filed with the Department on or before
13the first day of July, whereupon the Department shall proceed
14to administer and enforce this Section as of the first day of
15October next following such adoption and filing. Beginning
16January 1, 1993, an ordinance or resolution imposing,
17increasing, decreasing, or discontinuing the tax hereunder
18shall be adopted and a certified copy thereof filed with the
19Department, whereupon the Department shall proceed to
20administer and enforce this Section as of the first day of the
21first month to occur not less than 60 days following such
22adoption and filing. Any ordinance or resolution of the
23Authority imposing a tax under this Section and in effect on
24August 1, 2007 shall remain in full force and effect and shall
25be administered by the Department of Revenue under the terms
26and conditions and rates of tax established by such ordinance

 

 

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1or resolution until the Department begins administering and
2enforcing an increased tax under this Section as authorized by
3this amendatory Act of the 95th General Assembly. The tax rates
4authorized by this amendatory Act of the 95th General Assembly
5are effective only if imposed by ordinance of the Authority.
6    (n) The State Department of Revenue shall, upon collecting
7any taxes as provided in this Section, pay the taxes over to
8the State Treasurer as trustee for the Authority. The taxes
9shall be held in a trust fund outside the State Treasury. On or
10before the 25th day of each calendar month, the State
11Department of Revenue shall prepare and certify to the
12Comptroller of the State of Illinois and to the Authority (i)
13the amount of taxes collected in each County other than Cook
14County in the metropolitan region, (ii) the amount of taxes
15collected within the City of Chicago, and (iii) the amount
16collected in that portion of Cook County outside of Chicago,
17each amount less the amount necessary for the payment of
18refunds to taxpayers located in those areas described in items
19(i), (ii), and (iii). Within 10 days after receipt by the
20Comptroller of the certification of the amounts, the
21Comptroller shall cause an order to be drawn for the payment of
22two-thirds of the amounts certified in item (i) of this
23subsection to the Authority and one-third of the amounts
24certified in item (i) of this subsection to the respective
25counties other than Cook County and the amount certified in
26items (ii) and (iii) of this subsection to the Authority.

 

 

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1    In addition to the disbursement required by the preceding
2paragraph, an allocation shall be made in July 1991 and each
3year thereafter to the Regional Transportation Authority. The
4allocation shall be made in an amount equal to the average
5monthly distribution during the preceding calendar year
6(excluding the 2 months of lowest receipts) and the allocation
7shall include the amount of average monthly distribution from
8the Regional Transportation Authority Occupation and Use Tax
9Replacement Fund. The distribution made in July 1992 and each
10year thereafter under this paragraph and the preceding
11paragraph shall be reduced by the amount allocated and
12disbursed under this paragraph in the preceding calendar year.
13The Department of Revenue shall prepare and certify to the
14Comptroller for disbursement the allocations made in
15accordance with this paragraph.
16    (o) Failure to adopt a budget ordinance or otherwise to
17comply with Section 4.01 of this Act or to adopt a Five-year
18Capital Program or otherwise to comply with paragraph (b) of
19Section 2.01 of this Act shall not affect the validity of any
20tax imposed by the Authority otherwise in conformity with law.
21    (p) At no time shall a public transportation tax or motor
22vehicle parking tax authorized under paragraphs (b), (c) and
23(d) of this Section be in effect at the same time as any
24retailers' occupation, use or service occupation tax
25authorized under paragraphs (e), (f) and (g) of this Section is
26in effect.

 

 

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1    Any taxes imposed under the authority provided in
2paragraphs (b), (c) and (d) shall remain in effect only until
3the time as any tax authorized by paragraphs (e), (f) or (g) of
4this Section are imposed and becomes effective. Once any tax
5authorized by paragraphs (e), (f) or (g) is imposed the Board
6may not reimpose taxes as authorized in paragraphs (b), (c) and
7(d) of the Section unless any tax authorized by paragraphs (e),
8(f) or (g) of this Section becomes ineffective by means other
9than an ordinance of the Board.
10    (q) Any existing rights, remedies and obligations
11(including enforcement by the Regional Transportation
12Authority) arising under any tax imposed under paragraphs (b),
13(c) or (d) of this Section shall not be affected by the
14imposition of a tax under paragraphs (e), (f) or (g) of this
15Section.
16    (r) Notwithstanding any provision of law to the contrary, a
17municipality that is not being served, or that being is
18underserved, by the Regional Transportation Authority may by
19resolution provide for the sequestration of all taxes collected
20within its corporate boundaries under this Section. Taxes
21sequestered under this subsection shall be held in trust by the
22Illinois Department of Revenue and shall be paid over to the
23Regional Transportation Authority as the municipality may by
24resolution provide.
25(Source: P.A. 96-339, eff. 7-1-10; 96-939, eff. 6-24-10; 97-38,
26eff. 6-28-11; 97-227, eff. 1-1-12; 97-813, eff. 7-13-12.)
 

 

 

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1    (70 ILCS 3615/4.03.1)  (from Ch. 111 2/3, par. 704.03.1)
2    Sec. 4.03.1. (a) The Board may impose a tax upon all
3persons engaged in the business of renting automobiles in the
4metropolitan region at the rate of not to exceed 1% of the
5gross receipts from such business within Cook County and not to
6exceed 1/4% of the gross receipts from such business within the
7Counties of DuPage, Kane, Lake, McHenry and Will. The tax
8imposed pursuant to this paragraph and all civil penalties that
9may be assessed as an incident thereof shall be collected and
10enforced by the State Department of Revenue. The certificate of
11registration which is issued by the Department to a retailer
12under the Retailers' Occupation Tax Act or under the Automobile
13Renting Occupation and Use Tax Act shall permit such person to
14engage in a business which is taxable under any ordinance or
15resolution enacted pursuant to this paragraph without
16registering separately with the Department under such
17ordinance or resolution or under this paragraph. The Department
18shall have full power to administer and enforce this paragraph;
19to collect all taxes and penalties due hereunder; to dispose of
20taxes and penalties so collected in the manner hereinafter
21provided, and to determine all rights to credit memoranda,
22arising on account of the erroneous payment of tax or penalty
23hereunder. In the administration of, and compliance with, this
24paragraph, the Department and persons who are subject to this
25paragraph shall have the same rights, remedies, privileges,

 

 

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1immunities, powers and duties, and be subject to the same
2conditions, restrictions, limitations, penalties and
3definitions of terms, and employ the same modes of procedure,
4as are prescribed in Sections 2 and 3 (in respect to all
5provisions therein other than the State rate of tax; and with
6relation to the provisions of the Retailers' Occupation Tax
7referred to therein, except as to the disposition of taxes and
8penalties collected, and except for the provision allowing
9retailers a deduction from the tax cover certain costs, and
10except that credit memoranda issued hereunder may not be used
11to discharge any State tax liability) of the Automobile Renting
12Occupation and Use Tax Act as fully as if provisions contained
13in those Sections of said Act were set forth herein. Persons
14subject to any tax imposed pursuant to the authority granted in
15this paragraph may reimburse themselves for their tax liability
16hereunder by separately stating such tax as an additional
17charge, which charge may be stated in combination, in a single
18amount, with State tax which sellers are required to collect
19under the Automobile Renting Occupation and Use Tax Act
20pursuant to such bracket schedules as the Department may
21prescribe. Nothing in this paragraph shall be construed to
22authorize the Authority to impose a tax upon the privilege of
23engaging in any business which under the Constitution of the
24United States may not be made the subject of taxation by this
25State.
26    (b) The Board may impose a tax upon the privilege of using,

 

 

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1in the metropolitan region an automobile which is rented from a
2renter outside Illinois, and which is titled or registered with
3an agency of this State's government, at a rate not to exceed
41% of the rental price of such automobile within the County of
5Cook, and not to exceed 1/4% of the rental price within the
6counties of DuPage, Kane, Lake, McHenry and Will. Such tax
7shall be collected from persons whose Illinois address for
8titling or registration purposes is given as being in the
9metropolitan region. Such tax shall be collected by the
10Department of Revenue for the Regional Transportation
11Authority. Such tax must be paid to the State, or an exemption
12determination must be obtained from the Department of Revenue,
13before the title or certificate of registration for the
14property may be issued. The tax or proof of exemption may be
15transmitted to the Department by way of the State agency with
16which, or State officer with whom, the tangible personal
17property must be titled or registered if the Department and
18such agency or State officer determine that this procedure will
19expedite the processing of applications for title or
20registration. The Department shall have full power to
21administer and enforce this paragraph; to collect all taxes,
22penalties and interest due hereunder; to dispose of taxes,
23penalties and interest so collected in the manner hereinafter
24provided, and to determine all rights to credit memoranda or
25refunds arising on account of the erroneous payment of tax,
26penalty or interest hereunder. In the administration of, and

 

 

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1compliance with, this paragraph, the Department and persons who
2are subject to this paragraph shall have the same rights,
3remedies, privileges, immunities, powers and duties, and be
4subject to the same conditions, restrictions, limitations,
5penalties and definitions of terms, and employ the same modes
6of procedure, as are prescribed in Sections 2 and 4 (except
7provisions pertaining to the State rate of tax; and with
8relation to the provisions of the Use Tax Act referred to
9therein, except provisions concerning collection or refunding
10of the tax by retailers, and except the provisions of Section
1119 pertaining to claims by retailers and except the last
12paragraph concerning refunds, and except that credit memoranda
13issued hereunder may not be used to discharge any State tax
14liability) of the Automobile Renting Occupation and Use Tax Act
15which are not inconsistent with this paragraph, as fully as if
16provisions contained in those Sections of said Act were set
17forth herein.
18    (c) Whenever the Department determines that a refund should
19be made 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 such notification
23from the Department. Such refund shall be paid by the State
24Treasurer out of the Regional Transportation Authority tax fund
25created pursuant to Section 4.03 of this Act.
26    (d) The Department shall forthwith pay over to the State

 

 

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1Treasurer, ex-officio, as trustee, all taxes, penalties and
2interest collected under this Section. On or before the 25th
3day of each calendar month, the Department shall prepare and
4certify to the State Comptroller the amount to be paid to the
5Authority. The State Department of Revenue shall also certify
6to the Authority the amount of taxes collected in each County
7other than Cook County in the metropolitan region less the
8amount necessary for the payment of refunds to taxpayers in
9such County. With regard to the County of Cook, the
10certification shall specify the amount of taxes collected
11within the City of Chicago less the amount necessary for the
12payment of refunds to taxpayers in the City of Chicago and the
13amount collected in that portion of Cook County outside of
14Chicago less the amount necessary for the payment of refunds to
15taxpayers in that portion of Cook County outside of Chicago.
16The amount to be paid to the Authority shall be the amount (not
17including credit memoranda) collected hereunder during the
18second preceding calendar month by the Department, and not
19including an amount equal to the amount of refunds made during
20the second preceding calendar month by the Department on behalf
21of the Authority. Within 10 days after receipt, by the State
22Comptroller, of the disbursement certification to the
23Authority, the State Comptroller shall cause the orders to be
24drawn in accordance with the directions contained in such
25certification.
26    (e) An ordinance imposing a tax hereunder or effecting a

 

 

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1change in the rate thereof shall be effective on the first day
2of the calendar month next following the month in which such
3ordinance is passed. The Board shall transmit to the Department
4of Revenue on or not later than 5 days after passage of the
5ordinance a certified copy of the ordinance imposing such tax
6whereupon the Department of Revenue shall proceed to administer
7and enforce this Section on behalf of the Authority as of the
8effective date of the ordinance. Upon a change in rate of a tax
9levied hereunder, or upon the discontinuance of the tax, the
10Board shall, on or not later than 5 days after passage of the
11ordinance discontinuing the tax or effecting a change in rate,
12transmit to the Department of Revenue a certified copy of the
13ordinance effecting such change or discontinuance.
14    (f) Notwithstanding any provision of law to the contrary, a
15municipality that is not being served, or that being is
16underserved, by the Regional Transportation Authority may by
17resolution provide for the sequestration of all taxes collected
18within its corporate boundaries under this Section. Taxes
19sequestered under this subsection shall be held in trust by the
20Illinois Department of Revenue and shall be paid over to the
21Regional Transportation Authority as the municipality may by
22resolution provide.
23(Source: P.A. 91-357, eff. 7-29-99.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.