99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0498

 

Introduced , by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/19  from Ch. 120, par. 439.19
35 ILCS 115/12  from Ch. 120, par. 439.112
35 ILCS 120/6d new
55 ILCS 5/5-1006  from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.7
65 ILCS 5/8-11-1  from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.3  from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.6
70 ILCS 750/25
70 ILCS 1605/30
70 ILCS 3610/5.01  from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.03  from Ch. 111 2/3, par. 704.03
70 ILCS 3720/4  from Ch. 111 2/3, par. 254

    Amends the Retailers' Occupation Tax Act. Provides that a retailer is relieved from liability for any tax that becomes due and payable if the tax is represented by amounts that are found to be worthless or uncollectible, have been charged off in accordance with generally accepted accounting principles, and will be claimed as a deduction pursuant to Section 166 of the Internal Revenue Code. Provides for a deduction if the retailer had previously paid such a tax. Contains provisions concerning the payment of taxes on purchases made through a private-label credit card. Effective immediately.


LRB099 05664 HLH 26261 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0498LRB099 05664 HLH 26261 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
519 as follows:
 
6    (35 ILCS 105/19)  (from Ch. 120, par. 439.19)
7    Sec. 19. If it shall appear that an amount of tax or
8penalty or interest has been paid in error hereunder to the
9Department by a purchaser, as distinguished from the retailer,
10whether such amount be paid through a mistake of fact or an
11error of law, such purchaser may file a claim for credit or
12refund with the Department in accordance with Sections 6, 6a,
136b, and 6c, and 6d of the Retailers' Occupation Tax Act. If it
14shall appear that an amount of tax or penalty or interest has
15been paid in error to the Department hereunder by a retailer
16who is required or authorized to collect and remit the use tax,
17whether such amount be paid through a mistake of fact or an
18error of law, such retailer may file a claim for credit or
19refund with the Department in accordance with Sections 6, 6a,
206b, and 6c, and 6d of the Retailers' Occupation Tax Act,
21provided that no credit or refund shall be allowed for any
22amount paid by any such retailer unless it shall appear that he
23bore the burden of such amount and did not shift the burden

 

 

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1thereof to anyone else (as in the case of a duplicated tax
2payment which the retailer made to the Department and did not
3collect from anyone else), or unless it shall appear that he or
4she or his or her legal representative has unconditionally
5repaid such amount to his vendee (1) who bore the burden
6thereof and has not shifted such burden directly or indirectly
7in any manner whatsoever; (2) who, if he has shifted such
8burden, has repaid unconditionally such amount to his or her
9own vendee, and (3) who is not entitled to receive any
10reimbursement therefor from any other source than from his
11vendor, nor to be relieved of such burden in any other manner
12whatsoever. If it shall appear that an amount of tax has been
13paid in error hereunder by the purchaser to a retailer, who
14retained such tax as reimbursement for his or her tax liability
15on the same sale under the Retailers' Occupation Tax Act, and
16who remitted the amount involved to the Department under the
17Retailers' Occupation Tax Act, whether such amount be paid
18through a mistake of fact or an error of law, the procedure for
19recovering such tax shall be that prescribed in Sections 6, 6a,
206b and 6c of the Retailers' Occupation Tax Act.
21    Any credit or refund that is allowed under this Section
22shall bear interest at the rate and in the manner specified in
23the Uniform Penalty and Interest Act.
24    Any claim filed hereunder shall be filed upon a form
25prescribed and furnished by the Department. The claim shall be
26signed by the claimant (or by the claimant's legal

 

 

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1representative if the claimant shall have died or become a
2person under legal disability), or by a duly authorized agent
3of the claimant or his or her legal representative.
4    A claim for credit or refund shall be considered to have
5been filed with the Department on the date upon which it is
6received by the Department. Upon receipt of any claim for
7credit or refund filed under this Act, any officer or employee
8of the Department, authorized in writing by the Director of
9Revenue to acknowledge receipt of such claims on behalf of the
10Department, shall execute on behalf of the Department, and
11shall deliver or mail to the claimant or his duly authorized
12agent, a written receipt, acknowledging that the claim has been
13filed with the Department, describing the claim in sufficient
14detail to identify it and stating the date upon which the claim
15was received by the Department. Such written receipt shall be
16prima facie evidence that the Department received the claim
17described in such receipt and shall be prima facie evidence of
18the date when such claim was received by the Department. In the
19absence of such a written receipt, the records of the
20Department as to when the claim was received by the Department,
21or as to whether or not the claim was received at all by the
22Department, shall be deemed to be prima facie correct upon
23these questions in the event of any dispute between the
24claimant (or his or her legal representative) and the
25Department concerning these questions.
26    In case the Department determines that the claimant is

 

 

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1entitled to a refund, such refund shall be made only from such
2appropriation as may be available for that purpose. If it
3appears unlikely that the amount appropriated would permit
4everyone having a claim allowed during the period covered by
5such appropriation to elect to receive a cash refund, the
6Department, by rule or regulation, shall provide for the
7payment of refunds in hardship cases and shall define what
8types of cases qualify as hardship cases.
9    If a retailer who has failed to pay use tax on gross
10receipts from retail sales is required by the Department to pay
11such tax, such retailer, without filing any formal claim with
12the Department, shall be allowed to take credit against such
13use tax liability to the extent, if any, to which such retailer
14has paid an amount equivalent to retailers' occupation tax or
15has paid use tax in error to his or her vendor or vendors of the
16same tangible personal property which such retailer bought for
17resale and did not first use before selling it, and no penalty
18or interest shall be charged to such retailer on the amount of
19such credit. However, when such credit is allowed to the
20retailer by the Department, the vendor is precluded from
21refunding any of that tax to the retailer and filing a claim
22for credit or refund with respect thereto with the Department.
23The provisions of this amendatory Act shall be applied
24retroactively, regardless of the date of the transaction.
25(Source: P.A. 90-562, eff. 12-16-97.)
 

 

 

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1    Section 10. The Service Occupation Tax Act is amended by
2changing Section 12 as follows:
 
3    (35 ILCS 115/12)  (from Ch. 120, par. 439.112)
4    Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
51j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
6(except as to the disposition by the Department of the tax
7collected under this Act), 4 (except that the time limitation
8provisions shall run from the date when the tax is due rather
9than from the date when gross receipts are received), 5 (except
10that the time limitation provisions on the issuance of notices
11of tax liability shall run from the date when the tax is due
12rather than from the date when gross receipts are received),
135a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 6d, 7, 8, 9, 10, 11 and
1412 of the "Retailers' Occupation Tax Act" which are not
15inconsistent with this Act, and Section 3-7 of the Uniform
16Penalty and Interest Act shall apply, as far as practicable, to
17the subject matter of this Act to the same extent as if such
18provisions were included herein.
19(Source: P.A. 98-1098, eff. 8-26-14.)
 
20    Section 15. The Retailers' Occupation Tax Act is amended by
21adding Section 6d as follows:
 
22    (35 ILCS 120/6d new)
23    Sec. 6d. Deduction for uncollectible debt.

 

 

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1    (a) A retailer is relieved from liability for any tax that
2becomes due and payable if the tax is represented by amounts
3that are found to be worthless or uncollectible, have been
4charged off in accordance with generally accepted accounting
5principles, and will be claimed as a deduction pursuant to
6Section 166 of the Internal Revenue Code. A retailer that has
7previously paid such a tax may, under rules and regulations
8adopted by the Department, take as a deduction the amount
9charged off by the retailer. If these accounts are thereafter,
10in whole or in part, collected by the retailer, the amount
11collected shall be included in the first return filed after the
12collection, and the tax shall be paid with the return.
13    (b) With respect to the payment of taxes on purchases made
14through a private-label credit card:
15        (1) If consumer accounts or receivables are found to be
16    worthless or uncollectible, the retailer may claim a
17    deduction on a return in an amount equal to, or may obtain
18    a refund of, the tax remitted by the retailer on the unpaid
19    balance due if:
20            (A) the accounts or receivables have been charged
21        off as bad debt on the lender's books and records on or
22        after January 1, 2016; and
23            (B) a deduction was not previously claimed and a
24        refund was not previously allowed on that portion of
25        the account or receivable.
26        (2) If the retailer or the lender subsequently

 

 

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1    collects, in whole or in part, the accounts or receivables
2    for which a deduction or refund has been granted under
3    paragraph (1), the retailer must include the taxable
4    percentage of the amount collected in the first return
5    filed after the collection and pay the tax on the portion
6    of that amount for which a deduction or refund was granted.
7        (3) The deduction or refund allowed under this Section:
8            (A) does not apply to credit sale transaction
9        amounts resulting from purchases of titled property;
10            (B) includes only those credit sale transaction
11        amounts that represent purchases from the retailer
12        whose name or logo appears on the private-label credit
13        card used to make those purchases; and
14            (C) includes all credit sale transaction amounts
15        eligible under paragraph (B) that are outstanding with
16        respect to the specific private-label credit card
17        account or receivable at the time the account or
18        receivable is charged off, regardless of the date the
19        credit sale transaction actually occurred.
20        (4) The retailer and lender shall maintain adequate
21    books, records, or other documentation supporting the
22    charge off of the accounts or receivables for which a
23    deduction was taken or a refund was claimed under this
24    Section. A retailer claiming a deduction or refund for bad
25    debts from a private label credit card may not be allowed
26    to meet a lesser standard of documentation than a retailer

 

 

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1    that claims a deduction or refund for bad debts that are
2    not from a private label credit card. For purposes of
3    computing the deduction or refund, payments on the accounts
4    or receivables shall be prorated against the amounts
5    outstanding on the account.
6    (c) For purposes of this Section:
7        (1) "Retailer" means a person who holds himself or
8    herself out as being engaged (or who habitually engages) in
9    selling tangible personal property at retail with respect
10    to such sales and includes a retailer's affiliates or
11    franchisees.
12        (2) "Lender" means a person, or an affiliate, assignee,
13    or transferee of that person, who owns or has owned a
14    private-label credit card account or an interest in a
15    private-label credit card receivable that the person:
16            (A) purchased directly from a retailer who
17        remitted the tax imposed under this Act;
18            (B) originated pursuant to that person's contract
19        with the retailer who remitted the tax imposed under
20        this Act; or
21            (C) acquired from a third party.
22        (3) "Private-label credit card" means a charge card or
23    credit card that carries, refers to, or is branded with the
24    name or logo of a retailer and may only be used to make
25    purchases from that retailer or that retailer's affiliates
26    and franchisees.

 

 

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1        (4) "Affiliate" means an entity affiliated under
2    Section 1504 of the Internal Revenue Code, or an entity
3    that would be an affiliate under that Section had the
4    entity been a corporation.
5    (d) This Section is exempt from the provisions of Section
62-70 of this Act, Section 3-90 of the Use Tax Act, Section 3-55
7of the Service Use Tax Act, Section 3-55 of the Service
8Occupation Tax Act, and any other provision of law that
9provides that an exemption, credit, or deduction automatically
10sunsets after a specified period of time after the effective
11date of the Public Act creating the exemption, credit, or
12deduction.
 
13    Section 20. The Counties Code is amended by changing
14Sections 5-1006, 5-1006.5, and 5-1006.7 as follows:
 
15    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
16    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
17Law. Any county that is a home rule unit may impose a tax upon
18all persons engaged in the business of selling tangible
19personal property, other than an item of tangible personal
20property titled or registered with an agency of this State's
21government, at retail in the county on the gross receipts from
22such sales made in the course of their business. If imposed,
23this tax shall only be imposed in 1/4% increments. On and after
24September 1, 1991, this additional tax may not be imposed on

 

 

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1the sales of food for human consumption which is to be consumed
2off the premises where it is sold (other than alcoholic
3beverages, soft drinks and food which has been prepared for
4immediate consumption) and prescription and nonprescription
5medicines, drugs, medical appliances and insulin, urine
6testing materials, syringes and needles used by diabetics. The
7tax imposed by a home rule county pursuant to this Section and
8all civil penalties that may be assessed as an incident thereof
9shall be collected and enforced by the State Department of
10Revenue. The certificate of registration that is issued by the
11Department to a retailer under the Retailers' Occupation Tax
12Act shall permit the retailer to engage in a business that is
13taxable under any ordinance or resolution enacted pursuant to
14this Section without registering separately with the
15Department under such ordinance or resolution or under this
16Section. The Department shall have full power to administer and
17enforce this Section; to collect all taxes and penalties due
18hereunder; to dispose of taxes and penalties so collected in
19the manner hereinafter provided; and to determine all rights to
20credit memoranda arising on account of the erroneous payment of
21tax or penalty hereunder. In the administration of, and
22compliance with, this Section, the Department and persons who
23are subject to this Section shall have the same rights,
24remedies, privileges, immunities, powers and duties, and be
25subject to the same conditions, restrictions, limitations,
26penalties and definitions of terms, and employ the same modes

 

 

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1of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
21e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
3provisions therein other than the State rate of tax), 4, 5, 5a,
45b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
57, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
6and Section 3-7 of the Uniform Penalty and Interest Act, as
7fully as if those provisions were set forth herein.
8    No tax may be imposed by a home rule county pursuant to
9this Section unless the county also imposes a tax at the same
10rate pursuant to Section 5-1007.
11    Persons subject to any tax imposed pursuant to the
12authority granted in this Section may reimburse themselves for
13their seller's tax liability hereunder by separately stating
14such tax as an additional charge, which charge may be stated in
15combination, in a single amount, with State tax which sellers
16are required to collect under the Use Tax Act, pursuant to such
17bracket schedules 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 home rule county retailers' occupation tax
25fund.
26    The Department shall forthwith pay over to the State

 

 

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1Treasurer, ex officio, as trustee, all taxes and penalties
2collected hereunder.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the Department
5of Revenue, the Comptroller shall order transferred, and the
6Treasurer shall transfer, to the STAR Bonds Revenue Fund the
7local sales tax increment, as defined in the Innovation
8Development and Economy Act, collected under this Section
9during the second preceding calendar month for sales within a
10STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named counties, the
15counties to be those from which retailers have paid taxes or
16penalties hereunder to the Department during the second
17preceding calendar month. The amount to be paid to each county
18shall be the amount (not including credit memoranda) collected
19hereunder during the second preceding calendar month by the
20Department plus an amount the Department determines is
21necessary to offset any amounts that were erroneously paid to a
22different taxing body, and not including an amount equal to the
23amount of refunds made during the second preceding calendar
24month by the Department on behalf of such county, and not
25including any amount which the Department determines is
26necessary to offset any amounts which were payable to a

 

 

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1different taxing body but were erroneously paid to the county,
2and not including any amounts that are transferred to the STAR
3Bonds Revenue Fund. Within 10 days after receipt, by the
4Comptroller, of the disbursement certification to the counties
5provided for in this Section to be given to the Comptroller by
6the Department, the Comptroller shall cause the orders to be
7drawn for the respective amounts in accordance with the
8directions contained in the certification.
9    In addition to the disbursement required by the preceding
10paragraph, an allocation shall be made in March of each year to
11each county that received more than $500,000 in disbursements
12under the preceding paragraph in the preceding calendar year.
13The allocation shall be in an amount equal to the average
14monthly distribution made to each such county under the
15preceding paragraph during the preceding calendar year
16(excluding the 2 months of highest receipts). The distribution
17made in March of each year subsequent to the year in which an
18allocation was made pursuant to this paragraph and the
19preceding paragraph shall be reduced by the amount allocated
20and disbursed under this paragraph in the preceding calendar
21year. The Department shall prepare and certify to the
22Comptroller for disbursement the allocations made in
23accordance with this paragraph.
24    For the purpose of determining the local governmental unit
25whose tax is applicable, a retail sale by a producer of coal or
26other mineral mined in Illinois is a sale at retail at the

 

 

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1place where the coal or other mineral mined in Illinois is
2extracted from the earth. This paragraph does not apply to coal
3or other mineral when it is delivered or shipped by the seller
4to the purchaser at a point outside Illinois so that the sale
5is exempt under the United States Constitution as a sale in
6interstate or foreign commerce.
7    Nothing in this Section shall be construed to authorize a
8county to impose a tax upon the privilege of engaging in any
9business which under the Constitution of the United States may
10not be made the subject of taxation by this State.
11    An ordinance or resolution imposing or discontinuing a tax
12hereunder or effecting a change in the rate thereof shall be
13adopted and a certified copy thereof filed with the Department
14on or before the first day of June, whereupon the Department
15shall proceed to administer and enforce this Section as of the
16first day of September next following such adoption and filing.
17Beginning January 1, 1992, an ordinance or resolution imposing
18or discontinuing the tax hereunder or effecting a change in the
19rate thereof shall be adopted and a certified copy thereof
20filed with the Department on or before the first day of July,
21whereupon the Department shall proceed to administer and
22enforce this Section as of the first day of October next
23following such adoption and filing. Beginning January 1, 1993,
24an ordinance or resolution imposing or discontinuing the tax
25hereunder or effecting a change in the rate thereof shall be
26adopted and a certified copy thereof filed with the Department

 

 

HB0498- 15 -LRB099 05664 HLH 26261 b

1on or before the first day of October, whereupon the Department
2shall proceed to administer and enforce this Section as of the
3first day of January next following such adoption and filing.
4Beginning April 1, 1998, an ordinance or resolution imposing or
5discontinuing the tax hereunder or effecting a change in the
6rate thereof shall either (i) be adopted and a certified copy
7thereof filed with the Department on or before the first day of
8April, whereupon the Department shall proceed to administer and
9enforce this Section as of the first day of July next following
10the adoption and filing; or (ii) be adopted and a certified
11copy thereof filed with the Department on or before the first
12day of October, whereupon the Department shall proceed to
13administer and enforce this Section as of the first day of
14January next following the adoption and filing.
15    When certifying the amount of a monthly disbursement to a
16county under this Section, the Department shall increase or
17decrease such amount by an amount necessary to offset any
18misallocation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous 6
20months from the time a misallocation is discovered.
21    This Section shall be known and may be cited as the Home
22Rule County Retailers' Occupation Tax Law.
23(Source: P.A. 96-939, eff. 6-24-10.)
 
24    (55 ILCS 5/5-1006.5)
25    Sec. 5-1006.5. Special County Retailers' Occupation Tax

 

 

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1For Public Safety, Public Facilities, or Transportation.
2    (a) The county board of any county may impose a tax upon
3all persons engaged in the business of selling tangible
4personal property, other than personal property titled or
5registered with an agency of this State's government, at retail
6in the county on the gross receipts from the sales made in the
7course of business to provide revenue to be used exclusively
8for public safety, public facility, or transportation purposes
9in that county, if a proposition for the tax has been submitted
10to the electors of that county and approved by a majority of
11those voting on the question. If imposed, this tax shall be
12imposed only in one-quarter percent increments. By resolution,
13the county board may order the proposition to be submitted at
14any election. If the tax is imposed for transportation purposes
15for expenditures for public highways or as authorized under the
16Illinois Highway Code, the county board must publish notice of
17the existence of its long-range highway transportation plan as
18required or described in Section 5-301 of the Illinois Highway
19Code and must make the plan publicly available prior to
20approval of the ordinance or resolution imposing the tax. If
21the tax is imposed for transportation purposes for expenditures
22for passenger rail transportation, the county board must
23publish notice of the existence of its long-range passenger
24rail transportation plan and must make the plan publicly
25available prior to approval of the ordinance or resolution
26imposing the tax.

 

 

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1    If a tax is imposed for public facilities purposes, then
2the name of the project may be included in the proposition at
3the discretion of the county board as determined in the
4enabling resolution. For example, the "XXX Nursing Home" or the
5"YYY Museum".
6    The county clerk shall certify the question to the proper
7election authority, who shall submit the proposition at an
8election in accordance with the general election law.
9        (1) The proposition for public safety purposes shall be
10    in substantially the following form:
11        "To pay for public safety purposes, shall (name of
12    county) be authorized to impose an increase on its share of
13    local sales taxes by (insert rate)?"
14        As additional information on the ballot below the
15    question shall appear the following:
16        "This would mean that a consumer would pay an
17    additional (insert amount) in sales tax for every $100 of
18    tangible personal property bought at retail."
19        The county board may also opt to establish a sunset
20    provision at which time the additional sales tax would
21    cease being collected, if not terminated earlier by a vote
22    of the county board. If the county board votes to include a
23    sunset provision, the proposition for public safety
24    purposes shall be in substantially the following form:
25        "To pay for public safety purposes, shall (name of
26    county) be authorized to impose an increase on its share of

 

 

HB0498- 18 -LRB099 05664 HLH 26261 b

1    local sales taxes by (insert rate) for a period not to
2    exceed (insert number of 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 the purposes of the paragraph, "public safety
12    purposes" means crime prevention, detention, fire
13    fighting, police, medical, ambulance, or other emergency
14    services.
15        Votes shall be recorded as "Yes" or "No".
16        (2) The proposition for transportation purposes shall
17    be in substantially the following form:
18        "To pay for improvements to roads and other
19    transportation purposes, shall (name of county) be
20    authorized to impose an increase on its share of local
21    sales taxes by (insert rate)?"
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."

 

 

HB0498- 19 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 20 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 21 -LRB099 05664 HLH 26261 b

1        For purposes of this Section, "public facilities
2    purposes" means the acquisition, development,
3    construction, reconstruction, rehabilitation, improvement,
4    financing, architectural planning, and installation of
5    capital facilities consisting of buildings, structures,
6    and durable equipment and for the acquisition and
7    improvement of real property and interest in real property
8    required, or expected to be required, in connection with
9    the public facilities, for use by the county for the
10    furnishing of governmental services to its citizens,
11    including but not limited to museums and nursing homes.
12        The votes shall be recorded as "Yes" or "No".
13    If a majority of the electors voting on the proposition
14vote in favor of it, the county may impose the tax. A county
15may not submit more than one proposition authorized by this
16Section to the electors at any one time.
17    This additional tax may not be imposed on the sales of food
18for human consumption that is to be consumed off the premises
19where it is sold (other than alcoholic beverages, soft drinks,
20and food which has been prepared for immediate consumption) and
21prescription and non-prescription medicines, drugs, medical
22appliances and insulin, urine testing materials, syringes, and
23needles used by diabetics. The tax imposed by a county under
24this Section and all civil penalties that may be assessed as an
25incident of the tax shall be collected and enforced by the
26Illinois Department of Revenue and deposited into a special

 

 

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1fund created for that purpose. The certificate of registration
2that is issued by the Department to a retailer under the
3Retailers' Occupation Tax Act shall permit the retailer to
4engage in a business that is taxable without registering
5separately with the Department under an ordinance or resolution
6under this Section. The Department has full power to administer
7and enforce this Section, to collect all taxes and penalties
8due under this Section, to dispose of taxes and penalties so
9collected in the manner provided in this Section, and to
10determine all rights to credit memoranda arising on account of
11the erroneous payment of a tax or penalty under this Section.
12In the administration of and compliance with this Section, the
13Department and persons who are subject to this Section shall
14(i) have the same rights, remedies, privileges, immunities,
15powers, and duties, (ii) be subject to the same conditions,
16restrictions, limitations, penalties, and definitions of
17terms, and (iii) employ the same modes of procedure as are
18prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
191n, 2 through 2-70 (in respect to all provisions contained in
20those Sections other than the State rate of tax), 2a, 2b, 2c, 3
21(except provisions relating to transaction returns and quarter
22monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
235j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
24of the Retailers' Occupation Tax Act and Section 3-7 of the
25Uniform Penalty and Interest Act as if those provisions were
26set forth in this Section.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this Section may reimburse themselves for their
3sellers' tax liability by separately stating the tax as an
4additional charge, which charge may be stated in combination,
5in a single amount, with State tax which sellers are required
6to collect under the Use Tax Act, pursuant to such bracketed
7schedules as the Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified and to the person named in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the County Public Safety or Transportation
15Retailers' Occupation Tax Fund.
16    (b) If a tax has been imposed under subsection (a), a
17service occupation tax shall also be imposed at the same rate
18upon all persons engaged, in the county, in the business of
19making sales of service, who, as an incident to making those
20sales of service, transfer tangible personal property within
21the county as an incident to a sale of service. This tax may
22not be imposed on sales of food for human consumption that is
23to be consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food prepared for
25immediate consumption) and prescription and non-prescription
26medicines, drugs, medical appliances and insulin, urine

 

 

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1testing materials, syringes, and needles used by diabetics. The
2tax imposed under this subsection and all civil penalties that
3may be assessed as an incident thereof shall be collected and
4enforced by the Department of Revenue. The Department has full
5power to administer and enforce this subsection; to collect all
6taxes and penalties due hereunder; to dispose of taxes and
7penalties so collected in the manner hereinafter provided; and
8to determine all rights to credit memoranda arising on account
9of the erroneous payment of tax or penalty hereunder. In the
10administration of, and compliance with this subsection, the
11Department and persons who are subject to this paragraph shall
12(i) have the same rights, remedies, privileges, immunities,
13powers, and duties, (ii) be subject to the same conditions,
14restrictions, limitations, penalties, exclusions, exemptions,
15and definitions of terms, and (iii) employ the same modes of
16procedure as are prescribed in Sections 2 (except that the
17reference to State in the definition of supplier maintaining a
18place of business in this State shall mean the county), 2a, 2b,
192c, 3 through 3-50 (in respect to all provisions therein other
20than the State rate of tax), 4 (except that the reference to
21the State shall be to the county), 5, 7, 8 (except that the
22jurisdiction to which the tax shall be a debt to the extent
23indicated in that Section 8 shall be the county), 9 (except as
24to the disposition of taxes and penalties collected), 10, 11,
2512 (except the reference therein to Section 2b of the
26Retailers' Occupation Tax Act), 13 (except that any reference

 

 

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1to the State shall mean the county), Section 15, 16, 17, 18, 19
2and 20 of the Service Occupation Tax Act and Section 3-7 of the
3Uniform Penalty and Interest Act, as fully as if those
4provisions were set forth herein.
5    Persons subject to any tax imposed under the authority
6granted in this subsection may reimburse themselves for their
7serviceman's tax liability by separately stating the tax as an
8additional charge, which charge may be stated in combination,
9in a single amount, with State tax that servicemen are
10authorized to collect under the Service Use Tax Act, in
11accordance with such bracket schedules as the Department may
12prescribe.
13    Whenever the Department determines that a refund should be
14made under this subsection to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the warrant to be drawn for the
17amount specified, and to the person named, in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the County Public Safety or Transportation
20Retailers' Occupation Fund.
21    Nothing in this subsection shall be construed to authorize
22the county to impose a tax upon the privilege of engaging in
23any business which under the Constitution of the United States
24may not be made the subject of taxation by the State.
25    (c) The Department shall immediately pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

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1collected under this Section to be deposited into the County
2Public Safety or Transportation Retailers' Occupation Tax
3Fund, which shall be an unappropriated trust fund held outside
4of the State treasury.
5    As soon as possible after the first day of each month,
6beginning January 1, 2011, upon certification of the Department
7of Revenue, the Comptroller shall order transferred, and the
8Treasurer shall transfer, to the STAR Bonds Revenue Fund the
9local sales tax increment, as defined in the Innovation
10Development and Economy Act, collected under this Section
11during the second preceding calendar month for sales within a
12STAR bond district.
13    After the monthly transfer to the STAR Bonds Revenue Fund,
14on or before the 25th day of each calendar month, the
15Department shall prepare and certify to the Comptroller the
16disbursement of stated sums of money to the counties from which
17retailers have paid taxes or penalties to the Department during
18the second preceding calendar month. The amount to be paid to
19each county, and deposited by the county into its special fund
20created for the purposes of this Section, shall be the amount
21(not including credit memoranda) collected under this Section
22during the second preceding calendar month by the Department
23plus an amount the Department determines is necessary to offset
24any amounts that were erroneously paid to a different taxing
25body, and not including (i) an amount equal to the amount of
26refunds made during the second preceding calendar month by the

 

 

HB0498- 27 -LRB099 05664 HLH 26261 b

1Department on behalf of the county, (ii) any amount that the
2Department determines is necessary to offset any amounts that
3were payable to a different taxing body but were erroneously
4paid to the county, and (iii) any amounts that are transferred
5to the STAR Bonds Revenue Fund. Within 10 days after receipt by
6the Comptroller of the disbursement certification to the
7counties provided for in this Section to be given to the
8Comptroller by the Department, the Comptroller shall cause the
9orders to be drawn for the respective amounts in accordance
10with directions contained in the certification.
11    In addition to the disbursement required by the preceding
12paragraph, an allocation shall be made in March of each year to
13each county that received more than $500,000 in disbursements
14under the preceding paragraph in the preceding calendar year.
15The allocation shall be in an amount equal to the average
16monthly distribution made to each such county under the
17preceding paragraph during the preceding calendar year
18(excluding the 2 months of highest receipts). The distribution
19made in March of each year subsequent to the year in which an
20allocation was made pursuant to this paragraph and the
21preceding paragraph shall be reduced by the amount allocated
22and disbursed under this paragraph in the preceding calendar
23year. The Department shall prepare and certify to the
24Comptroller for disbursement the allocations made in
25accordance with this paragraph.
26    A county may direct, by ordinance, that all or a portion of

 

 

HB0498- 28 -LRB099 05664 HLH 26261 b

1the taxes and penalties collected under the Special County
2Retailers' Occupation Tax For Public Safety or Transportation
3be deposited into the Transportation Development Partnership
4Trust Fund.
5    (d) For the purpose of determining the local governmental
6unit whose tax is applicable, a retail sale by a producer of
7coal or another mineral mined in Illinois is a sale at retail
8at the place where the coal or other mineral mined in Illinois
9is extracted from the earth. This paragraph does not apply to
10coal or another mineral when it is delivered or shipped by the
11seller to the purchaser at a point outside Illinois so that the
12sale is exempt under the United States Constitution as a sale
13in interstate or foreign commerce.
14    (e) Nothing in this Section shall be construed to authorize
15a county to impose a tax upon the privilege of engaging in any
16business that under the Constitution of the United States may
17not be made the subject of taxation by this State.
18    (e-5) If a county imposes a tax under this Section, the
19county board may, by ordinance, discontinue or lower the rate
20of the tax. If the county board lowers the tax rate or
21discontinues the tax, a referendum must be held in accordance
22with subsection (a) of this Section in order to increase the
23rate of the tax or to reimpose the discontinued tax.
24    (f) Beginning April 1, 1998 and through December 31, 2013,
25the results of any election authorizing a proposition to impose
26a tax under this Section or effecting a change in the rate of

 

 

HB0498- 29 -LRB099 05664 HLH 26261 b

1tax, or any ordinance lowering the rate or discontinuing the
2tax, shall be certified by the county clerk and filed with the
3Illinois Department of Revenue either (i) on or before the
4first day of April, whereupon the Department shall proceed to
5administer and enforce the tax as of the first day of July next
6following the filing; or (ii) on or before the first day of
7October, whereupon the Department shall proceed to administer
8and enforce the tax as of the first day of January next
9following the filing.
10    Beginning January 1, 2014, the results of any election
11authorizing a proposition to impose a tax under this Section or
12effecting an increase in the rate of tax, along with the
13ordinance adopted to impose the tax or increase the rate of the
14tax, or any ordinance adopted to lower the rate or discontinue
15the tax, shall be certified by the county clerk and filed with
16the Illinois Department of Revenue either (i) on or before the
17first day of May, whereupon the Department shall proceed to
18administer and enforce the tax as of the first day of July next
19following the adoption and filing; or (ii) on or before the
20first day of October, whereupon the Department shall proceed to
21administer and enforce the tax as of the first day of January
22next following the adoption and filing.
23    (g) When certifying the amount of a monthly disbursement to
24a county under this Section, the Department shall increase or
25decrease the amounts by an amount necessary to offset any
26miscalculation of previous disbursements. The offset amount

 

 

HB0498- 30 -LRB099 05664 HLH 26261 b

1shall be the amount erroneously disbursed within the previous 6
2months from the time a miscalculation is discovered.
3    (h) This Section may be cited as the "Special County
4Occupation Tax For Public Safety, Public Facilities, or
5Transportation Law".
6    (i) For purposes of this Section, "public safety" includes,
7but is not limited to, crime prevention, detention, fire
8fighting, police, medical, ambulance, or other emergency
9services. The county may share tax proceeds received under this
10Section for public safety purposes, including proceeds
11received before August 4, 2009 (the effective date of Public
12Act 96-124), with any fire protection district located in the
13county. For the purposes of this Section, "transportation"
14includes, but is not limited to, the construction, maintenance,
15operation, and improvement of public highways, any other
16purpose for which a county may expend funds under the Illinois
17Highway Code, and passenger rail transportation. For the
18purposes of this Section, "public facilities purposes"
19includes, but is not limited to, 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 to
25be required, in connection with the public facilities, for use
26by the county for the furnishing of governmental services to

 

 

HB0498- 31 -LRB099 05664 HLH 26261 b

1its citizens, including but not limited to museums and nursing
2homes.
3    (j) The Department may promulgate rules to implement Public
4Act 95-1002 only to the extent necessary to apply the existing
5rules for the Special County Retailers' Occupation Tax for
6Public Safety to this new purpose for public facilities.
7(Source: P.A. 98-584, eff. 8-27-13.)
 
8    (55 ILCS 5/5-1006.7)
9    Sec. 5-1006.7. School facility occupation taxes.
10    (a) In any county, a tax shall be imposed upon all persons
11engaged in the business of selling tangible personal property,
12other than personal property titled or registered with an
13agency of this State's government, at retail in the county on
14the gross receipts from the sales made in the course of
15business to provide revenue to be used exclusively for school
16facility purposes if a proposition for the tax has been
17submitted to the electors of that county and approved by a
18majority of those voting on the question as provided in
19subsection (c). The tax under this Section shall be imposed
20only in one-quarter percent increments and may not exceed 1%.
21    This additional tax may not be imposed on the sale of food
22for human consumption that is to be consumed off the premises
23where it is sold (other than alcoholic beverages, soft drinks,
24and food that has been prepared for immediate consumption) and
25prescription and non-prescription medicines, drugs, medical

 

 

HB0498- 32 -LRB099 05664 HLH 26261 b

1appliances and insulin, urine testing materials, syringes and
2needles used by diabetics. The Department of Revenue has full
3power to administer and enforce this subsection, to collect all
4taxes and penalties due under this subsection, to dispose of
5taxes and penalties so collected in the manner provided in this
6subsection, and to determine all rights to credit memoranda
7arising on account of the erroneous payment of a tax or penalty
8under this subsection. The Department shall deposit all taxes
9and penalties collected under this subsection into a special
10fund created for that purpose.
11    In the administration of and compliance with this
12subsection, the Department and persons who are subject to this
13subsection (i) have the same rights, remedies, privileges,
14immunities, powers, and duties, (ii) are subject to the same
15conditions, restrictions, limitations, penalties, and
16definitions of terms, and (iii) shall employ the same modes of
17procedure as are set forth in Sections 1 through 1o, 2 through
182-70 (in respect to all provisions contained in those Sections
19other than the State rate of tax), 2a through 2h, 3 (except as
20to the disposition of taxes and penalties collected), 4, 5, 5a,
215b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
227, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
23Tax Act and all provisions of the Uniform Penalty and Interest
24Act as if those provisions were set forth in this subsection.
25    The certificate of registration that is issued by the
26Department to a retailer under the Retailers' Occupation Tax

 

 

HB0498- 33 -LRB099 05664 HLH 26261 b

1Act permits the retailer to engage in a business that is
2taxable without registering separately with the Department
3under an ordinance or resolution under this subsection.
4    Persons subject to any tax imposed under the authority
5granted in this subsection may reimburse themselves for their
6seller's tax liability by separately stating that tax as an
7additional charge, which may be stated in combination, in a
8single amount, with State tax that sellers are required to
9collect under the Use Tax Act, pursuant to any bracketed
10schedules set forth by the Department.
11    (b) If a tax has been imposed under subsection (a), then a
12service occupation tax must also be imposed at the same rate
13upon all persons engaged, in the county, in the business of
14making sales of service, who, as an incident to making those
15sales of service, transfer tangible personal property within
16the county as an incident to a sale of service.
17    This tax may not be imposed on sales of food for human
18consumption that is to be consumed off the premises where it is
19sold (other than alcoholic beverages, soft drinks, and food
20prepared for immediate consumption) and prescription and
21non-prescription medicines, drugs, medical appliances and
22insulin, urine testing materials, syringes, and needles used by
23diabetics.
24    The tax imposed under this subsection and all civil
25penalties that may be assessed as an incident thereof shall be
26collected and enforced by the Department and deposited into a

 

 

HB0498- 34 -LRB099 05664 HLH 26261 b

1special fund created for that purpose. The Department has full
2power to administer and enforce this subsection, to collect all
3taxes and penalties due under this subsection, to dispose of
4taxes and penalties so collected in the manner provided in this
5subsection, and to determine all rights to credit memoranda
6arising on account of the erroneous payment of a tax or penalty
7under this subsection.
8    In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10subsection shall (i) have the same rights, remedies,
11privileges, immunities, powers and duties, (ii) be subject to
12the same conditions, restrictions, limitations, penalties and
13definition of terms, and (iii) employ the same modes of
14procedure as are set forth in Sections 2 (except that that
15reference to State in the definition of supplier maintaining a
16place of business in this State means the county), 2a through
172d, 3 through 3-50 (in respect to all provisions contained in
18those Sections other than the State rate of tax), 4 (except
19that the reference to the State shall be to the county), 5, 7,
208 (except that the jurisdiction to which the tax is a debt to
21the extent indicated in that Section 8 is the county), 9
22(except as to the disposition of taxes and penalties
23collected), 10, 11, 12 (except the reference therein to Section
242b of the Retailers' Occupation Tax Act), 13 (except that any
25reference to the State means the county), Section 15, 16, 17,
2618, 19, and 20 of the Service Occupation Tax Act and all

 

 

HB0498- 35 -LRB099 05664 HLH 26261 b

1provisions of the Uniform Penalty and Interest Act, as fully as
2if those provisions were set forth herein.
3    Persons subject to any tax imposed under the authority
4granted in this subsection may reimburse themselves for their
5serviceman's tax liability by separately stating the tax as an
6additional charge, which may be stated in combination, in a
7single amount, with State tax that servicemen are authorized to
8collect under the Service Use Tax Act, pursuant to any
9bracketed schedules set forth by the Department.
10    (c) The tax under this Section may not be imposed until the
11question of imposing the tax has been submitted to the electors
12of the county at a regular election and approved by a majority
13of the electors voting on the question. For all regular
14elections held prior to the effective date of this amendatory
15Act of the 97th General Assembly, upon a resolution by the
16county board or a resolution by school district boards that
17represent at least 51% of the student enrollment within the
18county, the county board must certify the question to the
19proper election authority in accordance with the Election Code.
20    For all regular elections held prior to the effective date
21of this amendatory Act of the 97th General Assembly, the
22election authority must submit the question in substantially
23the following form:
24        Shall (name of county) be authorized to impose a
25    retailers' occupation tax and a service occupation tax
26    (commonly referred to as a "sales tax") at a rate of

 

 

HB0498- 36 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 37 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 38 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 39 -LRB099 05664 HLH 26261 b

1Department. The refund shall be paid by the Treasurer out of
2the School Facility Occupation Tax Fund.
3    (e) For the purposes of determining the local governmental
4unit whose tax is applicable, a retail sale by a producer of
5coal or another mineral mined in Illinois is a sale at retail
6at the place where the coal or other mineral mined in Illinois
7is extracted from the earth. This subsection does not apply to
8coal or another mineral when it is delivered or shipped by the
9seller to the purchaser at a point outside Illinois so that the
10sale is exempt under the United States Constitution as a sale
11in interstate or foreign commerce.
12    (f) Nothing in this Section may be construed to authorize a
13tax to be imposed upon the privilege of engaging in any
14business that under the Constitution of the United States may
15not be made the subject of taxation by this State.
16    (g) If a county board imposes a tax under this Section
17pursuant to a referendum held before the effective date of this
18amendatory Act of the 97th General Assembly at a rate below the
19rate set forth in the question approved by a majority of
20electors of that county voting on the question as provided in
21subsection (c), then the county board may, by ordinance,
22increase the rate of the tax up to the rate set forth in the
23question approved by a majority of electors of that county
24voting on the question as provided in subsection (c). If a
25county board imposes a tax under this Section pursuant to a
26referendum held before the effective date of this amendatory

 

 

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

 

 

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

 

 

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

 

 

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1    (i) This Section does not apply to Cook County.
2    (j) This Section may be cited as the County School Facility
3Occupation Tax Law.
4(Source: P.A. 97-542, eff. 8-23-11; 97-813, eff. 7-13-12;
598-584, eff. 8-27-13.)
 
6    Section 25. The Illinois Municipal Code is amended by
7changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
 
8    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
9    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
10Act. The corporate authorities of a home rule municipality may
11impose a tax upon all persons engaged in the business of
12selling tangible personal property, other than an item of
13tangible personal property titled or registered with an agency
14of this State's government, at retail in the municipality on
15the gross receipts from these sales made in the course of such
16business. If imposed, the tax shall only be imposed in 1/4%
17increments. On and after September 1, 1991, this additional tax
18may not be imposed on the sales of food for human consumption
19that is to be consumed off the premises where it is sold (other
20than alcoholic beverages, soft drinks and food that has been
21prepared for immediate consumption) and prescription and
22nonprescription medicines, drugs, medical appliances and
23insulin, urine testing materials, syringes and needles used by
24diabetics. The tax imposed by a home rule municipality under

 

 

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1this Section and all civil penalties that may be assessed as an
2incident of the tax shall be collected and enforced by the
3State Department of Revenue. The certificate of registration
4that is issued by the Department to a retailer under the
5Retailers' Occupation Tax Act shall permit the retailer to
6engage in a business that is taxable under any ordinance or
7resolution enacted pursuant to this Section without
8registering separately with the Department under such
9ordinance or resolution or under this Section. The Department
10shall have full power to administer and enforce this Section;
11to collect all taxes and penalties due hereunder; to dispose of
12taxes and penalties so collected in the manner hereinafter
13provided; and to determine all rights to credit memoranda
14arising on account of the erroneous payment of tax or penalty
15hereunder. In the administration of, and compliance with, this
16Section the Department and persons who are subject to this
17Section shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties and
20definitions of terms, and employ the same modes of procedure,
21as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
221m, 1n, 2 through 2-65 (in respect to all provisions therein
23other than the State rate of tax), 2c, 3 (except as to the
24disposition of taxes and penalties collected), 4, 5, 5a, 5b,
255c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
269, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and

 

 

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1Section 3-7 of the Uniform Penalty and Interest Act, as fully
2as if those provisions were set forth herein.
3    No tax may be imposed by a home rule municipality under
4this Section unless the municipality also imposes a tax at the
5same rate under Section 8-11-5 of this Act.
6    Persons subject to any tax imposed under the authority
7granted in this Section may reimburse themselves for their
8seller's tax liability hereunder by separately stating that tax
9as an additional charge, which charge may be stated in
10combination, in a single amount, with State tax which sellers
11are required to collect under the Use Tax Act, pursuant to such
12bracket schedules as the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the order to be drawn for the
17amount specified and to the person named in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the home rule municipal retailers' occupation
20tax fund.
21    The Department shall immediately pay over to the State
22Treasurer, ex officio, as trustee, all taxes and penalties
23collected hereunder.
24    As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the Department
26of Revenue, the Comptroller shall order transferred, and the

 

 

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1Treasurer shall transfer, to the STAR Bonds Revenue Fund the
2local sales tax increment, as defined in the Innovation
3Development and Economy Act, collected under this Section
4during the second preceding calendar month for sales within a
5STAR bond district.
6    After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money to named municipalities,
10the municipalities to be those from which retailers have paid
11taxes or penalties hereunder to the Department during the
12second preceding calendar month. The amount to be paid to each
13municipality shall be the amount (not including credit
14memoranda) collected hereunder during the second preceding
15calendar month by the Department plus an amount the Department
16determines is necessary to offset any amounts that were
17erroneously paid to a different taxing body, and not including
18an amount equal to the amount of refunds made during the second
19preceding calendar month by the Department on behalf of such
20municipality, and not including any amount that the Department
21determines is necessary to offset any amounts that were payable
22to a different taxing body but were erroneously paid to the
23municipality, and not including any amounts that are
24transferred to the STAR Bonds Revenue Fund. Within 10 days
25after receipt by the Comptroller of the disbursement
26certification to the municipalities provided for in this

 

 

HB0498- 47 -LRB099 05664 HLH 26261 b

1Section to be given to the Comptroller by the Department, the
2Comptroller shall cause the orders to be drawn for the
3respective amounts in accordance with the directions contained
4in the certification.
5    In addition to the disbursement required by the preceding
6paragraph and in order to mitigate delays caused by
7distribution procedures, an allocation shall, if requested, be
8made within 10 days after January 14, 1991, and in November of
91991 and each year thereafter, to each municipality that
10received more than $500,000 during the preceding fiscal year,
11(July 1 through June 30) whether collected by the municipality
12or disbursed by the Department as required by this Section.
13Within 10 days after January 14, 1991, participating
14municipalities shall notify the Department in writing of their
15intent to participate. In addition, for the initial
16distribution, participating municipalities shall certify to
17the Department the amounts collected by the municipality for
18each month under its home rule occupation and service
19occupation tax during the period July 1, 1989 through June 30,
201990. The allocation within 10 days after January 14, 1991,
21shall be in an amount equal to the monthly average of these
22amounts, excluding the 2 months of highest receipts. The
23monthly average for the period of July 1, 1990 through June 30,
241991 will be determined as follows: the amounts collected by
25the municipality under its home rule occupation and service
26occupation tax during the period of July 1, 1990 through

 

 

HB0498- 48 -LRB099 05664 HLH 26261 b

1September 30, 1990, plus amounts collected by the Department
2and paid to such municipality through June 30, 1991, excluding
3the 2 months of highest receipts. The monthly average for each
4subsequent period of July 1 through June 30 shall be an amount
5equal to the monthly distribution made to each such
6municipality under the preceding paragraph during this period,
7excluding the 2 months of highest receipts. The distribution
8made in November 1991 and each year thereafter under this
9paragraph and the preceding paragraph shall be reduced by the
10amount allocated and disbursed under this paragraph in the
11preceding period of July 1 through June 30. The Department
12shall prepare and certify to the Comptroller for disbursement
13the allocations made in accordance with this paragraph.
14    For the purpose of determining the local governmental unit
15whose tax is applicable, a retail sale by a producer of coal or
16other mineral mined in Illinois is a sale at retail at the
17place where the coal or other mineral mined in Illinois is
18extracted from the earth. This paragraph does not apply to coal
19or other mineral when it is delivered or shipped by the seller
20to the purchaser at a point outside Illinois so that the sale
21is exempt under the United States Constitution as a sale in
22interstate or foreign commerce.
23    Nothing in this Section shall be construed to authorize a
24municipality to impose a tax upon the privilege of engaging in
25any business which under the Constitution of the United States
26may not be made the subject of taxation by this State.

 

 

HB0498- 49 -LRB099 05664 HLH 26261 b

1    An ordinance or resolution imposing or discontinuing a tax
2hereunder or effecting a change in the rate thereof shall be
3adopted and a certified copy thereof filed with the Department
4on or before the first day of June, whereupon the Department
5shall proceed to administer and enforce this Section as of the
6first day of September next following the adoption and filing.
7Beginning January 1, 1992, an ordinance or resolution imposing
8or discontinuing the tax hereunder or effecting a change in the
9rate thereof shall be adopted and a certified copy thereof
10filed with 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. Beginning January 1, 1993,
14an ordinance or resolution imposing or discontinuing the tax
15hereunder or effecting a change in the rate thereof shall be
16adopted and a certified copy thereof filed with the Department
17on or before the first day of October, whereupon the Department
18shall proceed to administer and enforce this Section as of the
19first day of January next following the adoption and filing.
20However, a municipality located in a county with a population
21in excess of 3,000,000 that elected to become a home rule unit
22at the general primary election in 1994 may adopt an ordinance
23or resolution imposing the tax under this Section and file a
24certified copy of the ordinance or resolution with the
25Department on or before July 1, 1994. The Department shall then
26proceed to administer and enforce this Section as of October 1,

 

 

HB0498- 50 -LRB099 05664 HLH 26261 b

11994. Beginning April 1, 1998, an ordinance or resolution
2imposing or discontinuing the tax hereunder or effecting a
3change in the rate thereof shall either (i) be adopted and a
4certified copy thereof filed with the Department on or before
5the first day of April, whereupon the Department shall proceed
6to administer and enforce this Section as of the first day of
7July next following the adoption and filing; or (ii) be adopted
8and a certified copy thereof filed with the Department on or
9before the first day of October, whereupon the Department shall
10proceed to administer and enforce this Section as of the first
11day of January next following the adoption and filing.
12    When certifying the amount of a monthly disbursement to a
13municipality under this Section, the Department shall increase
14or decrease the amount by an amount necessary to offset any
15misallocation of previous disbursements. The offset amount
16shall be the amount erroneously disbursed within the previous 6
17months from the time a misallocation is discovered.
18    Any unobligated balance remaining in the Municipal
19Retailers' Occupation Tax Fund on December 31, 1989, which fund
20was abolished by Public Act 85-1135, and all receipts of
21municipal tax as a result of audits of liability periods prior
22to January 1, 1990, shall be paid into the Local Government Tax
23Fund for distribution as provided by this Section prior to the
24enactment of Public Act 85-1135. All receipts of municipal tax
25as a result of an assessment not arising from an audit, for
26liability periods prior to January 1, 1990, shall be paid into

 

 

HB0498- 51 -LRB099 05664 HLH 26261 b

1the Local Government Tax Fund for distribution before July 1,
21990, as provided by this Section prior to the enactment of
3Public Act 85-1135; and on and after July 1, 1990, all such
4receipts shall be distributed as provided in Section 6z-18 of
5the State Finance Act.
6    As used in this Section, "municipal" and "municipality"
7means a city, village or incorporated town, including an
8incorporated town that has superseded a civil township.
9    This Section shall be known and may be cited as the Home
10Rule Municipal Retailers' Occupation Tax Act.
11(Source: P.A. 96-939, eff. 6-24-10.)
 
12    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
13    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
14Occupation Tax Act. The corporate authorities of a non-home
15rule municipality may impose a tax upon all persons engaged in
16the business of selling tangible personal property, other than
17on an item of tangible personal property which is titled and
18registered by an agency of this State's Government, at retail
19in the municipality for expenditure on public infrastructure or
20for property tax relief or both as defined in Section 8-11-1.2
21if approved by referendum as provided in Section 8-11-1.1, of
22the gross receipts from such sales made in the course of such
23business. If the tax is approved by referendum on or after July
2414, 2010 (the effective date of Public Act 96-1057), the
25corporate authorities of a non-home rule municipality may,

 

 

HB0498- 52 -LRB099 05664 HLH 26261 b

1until December 31, 2020, use the proceeds of the tax for
2expenditure on municipal operations, in addition to or in lieu
3of any expenditure on public infrastructure or for property tax
4relief. The tax imposed may not be more than 1% and may be
5imposed only in 1/4% increments. The tax may not be imposed on
6the sale of food for human consumption that is to be consumed
7off the premises where it is sold (other than alcoholic
8beverages, soft drinks, and food that has been prepared for
9immediate consumption) and prescription and nonprescription
10medicines, drugs, medical appliances, and insulin, urine
11testing materials, syringes, and needles used by diabetics. The
12tax imposed by a municipality pursuant to this Section and all
13civil penalties that may be assessed as an incident thereof
14shall be collected and enforced by the State Department of
15Revenue. The certificate of registration which is issued by the
16Department to a retailer under the Retailers' Occupation Tax
17Act shall permit such retailer to engage in a business which is
18taxable under any ordinance or resolution enacted pursuant to
19this Section without registering separately with the
20Department under such ordinance or resolution or under this
21Section. The Department shall have full power to administer and
22enforce this Section; to collect all taxes and penalties due
23hereunder; to dispose of taxes and penalties so collected in
24the manner hereinafter provided, and to determine all rights to
25credit memoranda, arising on account of the erroneous payment
26of tax or penalty hereunder. In the administration of, and

 

 

HB0498- 53 -LRB099 05664 HLH 26261 b

1compliance with, this Section, the Department and persons who
2are subject to this Section 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 1, 1a, 1a-1, 1d,
71e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
8therein other than the State rate of tax), 2c, 3 (except as to
9the disposition of taxes and penalties collected), 4, 5, 5a,
105b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
117, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
12and Section 3-7 of the Uniform Penalty and Interest Act as
13fully as if those provisions were set forth herein.
14    No municipality may impose a tax under this Section unless
15the municipality also imposes a tax at the same rate under
16Section 8-11-1.4 of this Code.
17    Persons subject to any tax imposed pursuant to the
18authority granted in this Section may reimburse themselves for
19their seller's tax liability hereunder by separately stating
20such tax as an additional charge, which charge may be stated in
21combination, in a single amount, with State tax which sellers
22are required to collect under the Use Tax Act, pursuant to such
23bracket schedules as the Department may prescribe.
24    Whenever the Department determines that a refund should be
25made under this Section to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

 

 

HB0498- 54 -LRB099 05664 HLH 26261 b

1Comptroller, who shall cause the order to be drawn for the
2amount specified, and to the person named, in such notification
3from the Department. Such refund shall be paid by the State
4Treasurer out of the non-home rule municipal retailers'
5occupation tax fund.
6    The Department shall forthwith pay over to the State
7Treasurer, ex officio, as trustee, all taxes and penalties
8collected hereunder.
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the Department
11of Revenue, the Comptroller shall order transferred, and the
12Treasurer shall transfer, to the STAR Bonds Revenue Fund the
13local sales tax increment, as defined in the Innovation
14Development and Economy Act, collected under this Section
15during the second preceding calendar month for sales within a
16STAR bond district.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to named municipalities,
21the municipalities to be those from which retailers have paid
22taxes or penalties hereunder to the Department during the
23second preceding calendar month. The amount to be paid to each
24municipality shall be the amount (not including credit
25memoranda) collected hereunder during the second preceding
26calendar month by the Department plus an amount the Department

 

 

HB0498- 55 -LRB099 05664 HLH 26261 b

1determines is necessary to offset any amounts which were
2erroneously paid to a different taxing body, and not including
3an amount equal to the amount of refunds made during the second
4preceding calendar month by the Department on behalf of such
5municipality, and not including any amount which the Department
6determines is necessary to offset any amounts which were
7payable to a different taxing body but were erroneously paid to
8the municipality, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund. Within 10 days
10after receipt, by the Comptroller, of the disbursement
11certification to the municipalities, provided for in this
12Section to be given to the Comptroller by the Department, the
13Comptroller shall cause the orders to be drawn for the
14respective amounts in accordance with the directions contained
15in such certification.
16    For the purpose of determining the local governmental unit
17whose tax is applicable, a retail sale, by a producer of coal
18or other mineral mined in Illinois, is a sale at retail at the
19place where the coal or other mineral mined in Illinois is
20extracted from the earth. This paragraph does not apply to coal
21or other mineral when it is delivered or shipped by the seller
22to the purchaser at a point outside Illinois so that the sale
23is exempt under the Federal Constitution as a sale in
24interstate or foreign commerce.
25    Nothing in this Section shall be construed to authorize a
26municipality to impose a tax upon the privilege of engaging in

 

 

HB0498- 56 -LRB099 05664 HLH 26261 b

1any business which under the constitution of the United States
2may not be made the subject of taxation by this State.
3    When certifying the amount of a monthly disbursement to a
4municipality under this Section, the Department shall increase
5or decrease such amount by an amount necessary to offset any
6misallocation of previous disbursements. The offset amount
7shall be the amount erroneously disbursed within the previous 6
8months from the time a misallocation is discovered.
9    The Department of Revenue shall implement this amendatory
10Act of the 91st General Assembly so as to collect the tax on
11and after January 1, 2002.
12    As used in this Section, "municipal" and "municipality"
13means a city, village or incorporated town, including an
14incorporated town which has superseded a civil township.
15    This Section shall be known and may be cited as the
16"Non-Home Rule Municipal Retailers' Occupation Tax Act".
17(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
1897-333, eff. 8-12-11; 97-837, eff. 7-20-12.)
 
19    (65 ILCS 5/8-11-1.6)
20    Sec. 8-11-1.6. Non-home rule municipal retailers
21occupation tax; municipalities between 20,000 and 25,000. The
22corporate authorities of a non-home rule municipality with a
23population of more than 20,000 but less than 25,000 that has,
24prior to January 1, 1987, established a Redevelopment Project
25Area that has been certified as a State Sales Tax Boundary and

 

 

HB0498- 57 -LRB099 05664 HLH 26261 b

1has issued bonds or otherwise incurred indebtedness to pay for
2costs in excess of $5,000,000, which is secured in part by a
3tax increment allocation fund, in accordance with the
4provisions of Division 11-74.4 of this Code may, by passage of
5an ordinance, impose a tax upon all persons engaged in the
6business of selling tangible personal property, other than on
7an item of tangible personal property that is titled and
8registered by an agency of this State's Government, at retail
9in the municipality. This tax may not be imposed on the sales
10of food for human consumption that is to be consumed off the
11premises where it is sold (other than alcoholic beverages, soft
12drinks, and food that has been prepared for immediate
13consumption) and prescription and nonprescription medicines,
14drugs, medical appliances and insulin, urine testing
15materials, syringes, and needles used by diabetics. If imposed,
16the tax shall only be imposed in .25% increments of the gross
17receipts from such sales made in the course of business. Any
18tax imposed by a municipality under this Sec. and all civil
19penalties that may be assessed as an incident thereof shall be
20collected and enforced by the State Department of Revenue. An
21ordinance imposing a tax hereunder or effecting a change in the
22rate thereof shall be adopted and a certified copy thereof
23filed with the Department on or before the first day of
24October, whereupon the Department shall proceed to administer
25and enforce this Section as of the first day of January next
26following such adoption and filing. The certificate of

 

 

HB0498- 58 -LRB099 05664 HLH 26261 b

1registration that is issued by the Department to a retailer
2under the Retailers' Occupation Tax Act shall permit the
3retailer to engage in a business that is taxable under any
4ordinance or resolution enacted under this Section without
5registering separately with the Department under the ordinance
6or resolution or under this Section. The Department shall have
7full power to administer and enforce this Section, to collect
8all taxes and penalties due hereunder, to dispose of taxes and
9penalties so collected in the manner hereinafter provided, and
10to determine all rights to credit memoranda, arising on account
11of the erroneous payment of tax or penalty hereunder. In the
12administration of, and compliance with this Section, the
13Department and persons who are subject to this Section shall
14have the same rights, remedies, privileges, immunities,
15powers, and duties, and be subject to the same conditions,
16restrictions, limitations, penalties, and definitions of
17terms, and employ the same modes of procedure, as are
18prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
19through 2-65 (in respect to all provisions therein other than
20the State rate of tax), 2c, 3 (except as to the disposition of
21taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
225g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
23and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
24the Uniform Penalty and Interest Act as fully as if those
25provisions were set forth herein.
26    A tax may not be imposed by a municipality under this

 

 

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1Section unless the municipality also imposes a tax at the same
2rate under Section 8-11-1.7 of this Act.
3    Persons subject to any tax imposed under the authority
4granted in this Section, may reimburse themselves for their
5seller's tax liability hereunder by separately stating the tax
6as an additional charge, which charge may be stated in
7combination, in a single amount, with State tax which sellers
8are required to collect under the Use Tax Act, pursuant to such
9bracket schedules as the Department may prescribe.
10    Whenever the Department determines that a refund should be
11made under this Section to a claimant, instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the order to be drawn for the
14amount specified, and to the person named in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of the Non-Home Rule Municipal Retailers'
17Occupation Tax Fund, which is hereby created.
18    The Department shall forthwith pay over to the State
19Treasurer, ex officio, as trustee, all taxes and penalties
20collected hereunder.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

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1during the second preceding calendar month for sales within a
2STAR bond district.
3    After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6disbursement of stated sums of money to named municipalities,
7the municipalities to be those from which retailers have paid
8taxes or penalties hereunder to the Department during the
9second preceding calendar month. The amount to be paid to each
10municipality shall be the amount (not including credit
11memoranda) collected hereunder during the second preceding
12calendar month by the Department plus an amount the Department
13determines is necessary to offset any amounts that were
14erroneously paid to a different taxing body, and not including
15an amount equal to the amount of refunds made during the second
16preceding calendar month by the Department on behalf of the
17municipality, and not including any amount that the Department
18determines is necessary to offset any amounts that were payable
19to a different taxing body but were erroneously paid to the
20municipality, and not including any amounts that are
21transferred to the STAR Bonds Revenue Fund. Within 10 days
22after receipt by the Comptroller of the disbursement
23certification to the municipalities provided for in this
24Section to be given to the Comptroller by the Department, the
25Comptroller shall cause the orders to be drawn for the
26respective amounts in accordance with the directions contained

 

 

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1in the certification.
2    For the purpose of determining the local governmental unit
3whose tax is applicable, a retail sale by a producer of coal or
4other mineral mined in Illinois is a sale at retail at the
5place where the coal or other mineral mined in Illinois is
6extracted from the earth. This paragraph does not apply to coal
7or other mineral when it is delivered or shipped by the seller
8to the purchaser at a point outside Illinois so that the sale
9is exempt under the federal Constitution as a sale in
10interstate or foreign commerce.
11    Nothing in this Section shall be construed to authorize a
12municipality to impose a tax upon the privilege of engaging in
13any business which under the constitution of the United States
14may not be made the subject of taxation by this State.
15    When certifying the amount of a monthly disbursement to a
16municipality under this Section, the Department shall increase
17or decrease the amount by an amount necessary to offset any
18misallocation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous 6
20months from the time a misallocation is discovered.
21    As used in this Section, "municipal" and "municipality"
22means a city, village, or incorporated town, including an
23incorporated town that has superseded a civil township.
24(Source: P.A. 96-939, eff. 6-24-10.)
 
25    Section 30. The Flood Prevention District Act is amended by

 

 

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1changing Section 25 as follows:
 
2    (70 ILCS 750/25)
3    Sec. 25. Flood prevention retailers' and service
4occupation taxes.
5    (a) If the Board of Commissioners of a flood prevention
6district determines that an emergency situation exists
7regarding levee repair or flood prevention, and upon an
8ordinance confirming the determination adopted by the
9affirmative vote of a majority of the members of the county
10board of the county in which the district is situated, the
11county may impose a flood prevention retailers' occupation tax
12upon all persons engaged in the business of selling tangible
13personal property at retail within the territory of the
14district to provide revenue to pay the costs of providing
15emergency levee repair and flood prevention and to secure the
16payment of bonds, notes, and other evidences of indebtedness
17issued under this Act for a period not to exceed 25 years or as
18required to repay the bonds, notes, and other evidences of
19indebtedness issued under this Act. The tax rate shall be 0.25%
20of the gross receipts from all taxable sales made in the course
21of that business. The tax imposed under this Section and all
22civil penalties that may be assessed as an incident thereof
23shall be collected and enforced by the State Department of
24Revenue. The Department shall have full power to administer and
25enforce this Section; to collect all taxes and penalties so

 

 

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1collected in the manner hereinafter provided; and to determine
2all rights to credit memoranda arising on account of the
3erroneous payment of tax or penalty hereunder.
4    In the administration of and compliance with this
5subsection, the Department and persons who are subject to this
6subsection (i) have the same rights, remedies, privileges,
7immunities, powers, and duties, (ii) are subject to the same
8conditions, restrictions, limitations, penalties, and
9definitions of terms, and (iii) shall employ the same modes of
10procedure as are set forth in Sections 1 through 1o, 2 through
112-70 (in respect to all provisions contained in those Sections
12other than the State rate of tax), 2a through 2h, 3 (except as
13to the disposition of taxes and penalties collected), 4, 5, 5a,
145b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1510, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
16and all provisions of the Uniform Penalty and Interest Act as
17if those provisions were set forth in this subsection.
18    Persons subject to any tax imposed under this Section may
19reimburse themselves for their seller's tax liability
20hereunder by separately stating the tax as an additional
21charge, which charge may be stated in combination in a single
22amount with State taxes that sellers are required to collect
23under the Use Tax Act, under any bracket schedules the
24Department may prescribe.
25    If a tax is imposed under this subsection (a), a tax shall
26also be imposed under subsection (b) of this Section.

 

 

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1    (b) If a tax has been imposed under subsection (a), a flood
2prevention service occupation tax shall also be imposed upon
3all persons engaged within the territory of the district in the
4business of making sales of service, who, as an incident to
5making the sales of service, transfer tangible personal
6property, either in the form of tangible personal property or
7in the form of real estate as an incident to a sale of service
8to provide revenue to pay the costs of providing emergency
9levee repair and flood prevention and to secure the payment of
10bonds, notes, and other evidences of indebtedness issued under
11this Act for a period not to exceed 25 years or as required to
12repay the bonds, notes, and other evidences of indebtedness.
13The tax rate shall be 0.25% of the selling price of all
14tangible personal property transferred.
15    The tax imposed under this subsection and all civil
16penalties that may be assessed as an incident thereof shall be
17collected and enforced by the State Department of Revenue. The
18Department shall have full power to administer and enforce this
19subsection; to collect all taxes and penalties due hereunder;
20to dispose of taxes and penalties collected in the manner
21hereinafter provided; and to determine all rights to credit
22memoranda arising on account of the erroneous payment of tax or
23penalty hereunder.
24    In the administration of and compliance with this
25subsection, the Department and persons who are subject to this
26subsection shall (i) have the same rights, remedies,

 

 

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1privileges, immunities, powers, and duties, (ii) be subject to
2the same conditions, restrictions, limitations, penalties, and
3definitions of terms, and (iii) employ the same modes of
4procedure as are set forth in Sections 2 (except that the
5reference to State in the definition of supplier maintaining a
6place of business in this State means the district), 2a through
72d, 3 through 3-50 (in respect to all provisions contained in
8those Sections other than the State rate of tax), 4 (except
9that the reference to the State shall be to the district), 5,
107, 8 (except that the jurisdiction to which the tax is a debt
11to the extent indicated in that Section 8 is the district), 9
12(except as to the disposition of taxes and penalties
13collected), 10, 11, 12 (except the reference therein to Section
142b of the Retailers' Occupation Tax Act), 13 (except that any
15reference to the State means the district), Section 15, 16, 17,
1618, 19, and 20 of the Service Occupation Tax Act and all
17provisions of the Uniform Penalty and Interest Act, as fully as
18if those provisions were set forth herein.
19    Persons subject to any tax imposed under the authority
20granted in this subsection may reimburse themselves for their
21serviceman's tax liability hereunder by separately stating the
22tax as an additional charge, that charge may be stated in
23combination in a single amount with State tax that servicemen
24are authorized to collect under the Service Use Tax Act, under
25any bracket schedules the Department may prescribe.
26    (c) The taxes imposed in subsections (a) and (b) may not be

 

 

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1imposed on personal property titled or registered with an
2agency of the State; food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption); prescription and
6non-prescription medicines, drugs, and medical appliances;
7modifications to a motor vehicle for the purpose of rendering
8it usable by a disabled person; or insulin, urine testing
9materials, and syringes and needles used by diabetics.
10    (d) Nothing in this Section shall be construed to authorize
11the district to impose a tax upon the privilege of engaging in
12any business that under the Constitution of the United States
13may not be made the subject of taxation by the State.
14    (e) The certificate of registration that is issued by the
15Department to a retailer under the Retailers' Occupation Tax
16Act or a serviceman under the Service Occupation Tax Act
17permits the retailer or serviceman to engage in a business that
18is taxable without registering separately with the Department
19under an ordinance or resolution under this Section.
20    (f) The Department shall immediately pay over to the State
21Treasurer, ex officio, as trustee, all taxes and penalties
22collected under this Section to be deposited into the Flood
23Prevention Occupation Tax Fund, which shall be an
24unappropriated trust fund held outside the State treasury.
25    On or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

HB0498- 67 -LRB099 05664 HLH 26261 b

1disbursement of stated sums of money to the counties from which
2retailers or servicemen have paid taxes or penalties to the
3Department during the second preceding calendar month. The
4amount to be paid to each county is equal to the amount (not
5including credit memoranda) collected from the county under
6this Section during the second preceding calendar month by the
7Department, (i) less 2% of that amount, which shall be
8deposited into the Tax Compliance and Administration Fund and
9shall be used by the Department in administering and enforcing
10the provisions of this Section on behalf of the county, (ii)
11plus an amount that the Department determines is necessary to
12offset any amounts that were erroneously paid to a different
13taxing body; (iii) less an amount equal to the amount of
14refunds made during the second preceding calendar month by the
15Department on behalf of the county; and (iv) less any amount
16that the Department determines is necessary to offset any
17amounts that were payable to a different taxing body but were
18erroneously paid to the county. When certifying the amount of a
19monthly disbursement to a county under this Section, the
20Department shall increase or decrease the amounts by an amount
21necessary to offset any miscalculation of previous
22disbursements within the previous 6 months from the time a
23miscalculation is discovered.
24    Within 10 days after receipt by the Comptroller from the
25Department of the disbursement certification to the counties
26provided for in this Section, the Comptroller shall cause the

 

 

HB0498- 68 -LRB099 05664 HLH 26261 b

1orders to be drawn for the respective amounts in accordance
2with directions contained in the certification.
3    If the Department determines that a refund should be made
4under this Section to a claimant instead of issuing a credit
5memorandum, then the Department shall notify the Comptroller,
6who shall cause the order to be drawn for the amount specified
7and to the person named in the notification from the
8Department. The refund shall be paid by the Treasurer out of
9the Flood Prevention Occupation Tax Fund.
10    (g) If a county imposes a tax under this Section, then the
11county board shall, by ordinance, discontinue the tax upon the
12payment of all indebtedness of the flood prevention district.
13The tax shall not be discontinued until all indebtedness of the
14District has been paid.
15    (h) Any ordinance imposing the tax under this Section, or
16any ordinance that discontinues the tax, must be certified by
17the county clerk and filed with the Illinois Department of
18Revenue either (i) on or before the first day of April,
19whereupon the Department shall proceed to administer and
20enforce the tax or change in the rate as of the first day of
21July next following the filing; or (ii) on or before the first
22day of October, whereupon the Department shall proceed to
23administer and enforce the tax or change in the rate as of the
24first day of January next following the filing.
25    (j) County Flood Prevention Occupation Tax Fund. All
26proceeds received by a county from a tax distribution under

 

 

HB0498- 69 -LRB099 05664 HLH 26261 b

1this Section must be maintained in a special fund known as the
2[name of county] flood prevention occupation tax fund. The
3county shall, at the direction of the flood prevention
4district, use moneys in the fund to pay the costs of providing
5emergency levee repair and flood prevention and to pay bonds,
6notes, and other evidences of indebtedness issued under this
7Act.
8    (k) This Section may be cited as the Flood Prevention
9Occupation Tax Law.
10(Source: P.A. 96-939, eff. 6-24-10; 97-188, eff. 7-22-11.)
 
11    Section 35. The Metro-East Park and Recreation District Act
12is amended by changing Section 30 as follows:
 
13    (70 ILCS 1605/30)
14    Sec. 30. Taxes.
15    (a) The board shall impose a tax upon all persons engaged
16in the business of selling tangible personal property, other
17than personal property titled or registered with an agency of
18this State's government, at retail in the District on the gross
19receipts from the sales made in the course of business. This
20tax shall be imposed only at the rate of one-tenth of one per
21cent.
22    This additional tax may not be imposed on the sales of food
23for human consumption that is to be consumed off the premises
24where it is sold (other than alcoholic beverages, soft drinks,

 

 

HB0498- 70 -LRB099 05664 HLH 26261 b

1and food which has been prepared for immediate consumption) and
2prescription and non-prescription medicines, drugs, medical
3appliances, and insulin, urine testing materials, syringes,
4and needles used by diabetics. The tax imposed by the Board
5under this Section and all civil penalties that may be assessed
6as an incident of the tax shall be collected and enforced by
7the Department of Revenue. The certificate of registration that
8is issued by the Department to a retailer under the Retailers'
9Occupation Tax Act shall permit the retailer to engage in a
10business that is taxable without registering separately with
11the Department under an ordinance or resolution under this
12Section. The Department has full power to administer and
13enforce this Section, to collect all taxes and penalties due
14under this Section, to dispose of taxes and penalties so
15collected in the manner provided in this Section, and to
16determine all rights to credit memoranda arising on account of
17the erroneous payment of a tax or penalty under this Section.
18In the administration of and compliance with this Section, the
19Department and persons who are subject to this Section shall
20(i) have the same rights, remedies, privileges, immunities,
21powers, and duties, (ii) be subject to the same conditions,
22restrictions, limitations, penalties, and definitions of
23terms, and (iii) employ the same modes of procedure as are
24prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
251n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained
26in those Sections other than the State rate of tax), 2-12, 2-15

 

 

HB0498- 71 -LRB099 05664 HLH 26261 b

1through 2-70, 2a, 2b, 2c, 3 (except provisions relating to
2transaction returns and quarter monthly payments), 4, 5, 5a,
35b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
47, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
5Tax Act and the Uniform Penalty and Interest Act as if those
6provisions were set forth in this Section.
7    Persons subject to any tax imposed under the authority
8granted in this Section may reimburse themselves for their
9sellers' tax liability by separately stating the tax as an
10additional charge, which charge may be stated in combination,
11in a single amount, with State tax which sellers are required
12to collect under the Use Tax Act, pursuant to such bracketed
13schedules as the Department may prescribe.
14    Whenever the Department determines that a refund should be
15made under this Section to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the order to be drawn for the
18amount specified and to the person named in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the State Metro-East Park and Recreation
21District Fund.
22    (b) If a tax has been imposed under subsection (a), a
23service occupation tax shall also be imposed at the same rate
24upon all persons engaged, in the District, in the business of
25making sales of service, who, as an incident to making those
26sales of service, transfer tangible personal property within

 

 

HB0498- 72 -LRB099 05664 HLH 26261 b

1the District as an incident to a sale of service. This tax may
2not be imposed on sales of food for human consumption that is
3to be consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food prepared for
5immediate consumption) and prescription and non-prescription
6medicines, drugs, medical appliances, and insulin, urine
7testing materials, syringes, and needles used by diabetics. The
8tax imposed under this subsection and all civil penalties that
9may be assessed as an incident thereof shall be collected and
10enforced by the Department of Revenue. The Department has full
11power to administer and enforce this subsection; to collect all
12taxes and penalties due hereunder; to dispose of taxes and
13penalties so collected in the manner hereinafter provided; and
14to determine all rights to credit memoranda arising on account
15of the erroneous payment of tax or penalty hereunder. In the
16administration of, and compliance with this subsection, the
17Department and persons who are subject to this paragraph shall
18(i) have the same rights, remedies, privileges, immunities,
19powers, and duties, (ii) be subject to the same conditions,
20restrictions, limitations, penalties, exclusions, exemptions,
21and definitions of terms, and (iii) employ the same modes of
22procedure as are prescribed in Sections 2 (except that the
23reference to State in the definition of supplier maintaining a
24place of business in this State shall mean the District), 2a,
252b, 2c, 3 through 3-50 (in respect to all provisions therein
26other than the State rate of tax), 4 (except that the reference

 

 

HB0498- 73 -LRB099 05664 HLH 26261 b

1to the State shall be to the District), 5, 7, 8 (except that
2the jurisdiction to which the tax shall be a debt to the extent
3indicated in that Section 8 shall be the District), 9 (except
4as to the disposition of taxes and penalties collected), 10,
511, 12 (except the reference therein to Section 2b of the
6Retailers' Occupation Tax Act), 13 (except that any reference
7to the State shall mean the District), Sections 15, 16, 17, 18,
819 and 20 of the Service Occupation Tax Act and the Uniform
9Penalty and Interest Act, as fully as if those provisions were
10set forth herein.
11    Persons subject to any tax imposed under the authority
12granted in this subsection may reimburse themselves for their
13serviceman's 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 that servicemen are
16authorized to collect under the Service Use Tax Act, in
17accordance with such bracket schedules as the Department may
18prescribe.
19    Whenever the Department determines that a refund should be
20made under this subsection to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the warrant to be drawn for the
23amount specified, and to the person named, in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the State Metro-East Park and Recreation
26District Fund.

 

 

HB0498- 74 -LRB099 05664 HLH 26261 b

1    Nothing in this subsection shall be construed to authorize
2the board to impose a tax upon the privilege of engaging in any
3business which under the Constitution of the United States may
4not be made the subject of taxation by the State.
5    (c) The Department shall immediately pay over to the State
6Treasurer, ex officio, as trustee, all taxes and penalties
7collected under this Section to be deposited into the State
8Metro-East Park and Recreation District Fund, which shall be an
9unappropriated trust fund held outside of the State treasury.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the Department
12of Revenue, the Comptroller shall order transferred, and the
13Treasurer shall transfer, to the STAR Bonds Revenue Fund the
14local sales tax increment, as defined in the Innovation
15Development and Economy Act, collected under this Section
16during the second preceding calendar month for sales within a
17STAR bond district. The Department shall make this
18certification only if the Metro East Park and Recreation
19District imposes a tax on real property as provided in the
20definition of "local sales taxes" under the Innovation
21Development and Economy Act.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money pursuant to Section 35 of
26this Act to the District from which retailers have paid taxes

 

 

HB0498- 75 -LRB099 05664 HLH 26261 b

1or penalties to the Department during the second preceding
2calendar month. The amount to be paid to the District shall be
3the amount (not including credit memoranda) collected under
4this Section during the second preceding calendar month by the
5Department plus an amount the Department determines is
6necessary to offset any amounts that were erroneously paid to a
7different taxing body, and not including (i) an amount equal to
8the amount of refunds made during the second preceding calendar
9month by the Department on behalf of the District, (ii) any
10amount that the Department determines is necessary to offset
11any amounts that were payable to a different taxing body but
12were erroneously paid to the District, and (iii) any amounts
13that are transferred to the STAR Bonds Revenue Fund. Within 10
14days after receipt by the Comptroller of the disbursement
15certification to the District provided for in this Section to
16be given to the Comptroller by the Department, the Comptroller
17shall cause the orders to be drawn for the respective amounts
18in accordance with directions contained in the certification.
19    (d) For the purpose of determining whether a tax authorized
20under this Section is applicable, a retail sale by a producer
21of coal or another mineral mined in Illinois is a sale at
22retail at the place where the coal or other mineral mined in
23Illinois is extracted from the earth. This paragraph does not
24apply to coal or another mineral when it is delivered or
25shipped by the seller to the purchaser at a point outside
26Illinois so that the sale is exempt under the United States

 

 

HB0498- 76 -LRB099 05664 HLH 26261 b

1Constitution as a sale in interstate or foreign commerce.
2    (e) Nothing in this Section shall be construed to authorize
3the board to impose a tax upon the privilege of engaging in any
4business that under the Constitution of the United States may
5not be made the subject of taxation by this State.
6    (f) An ordinance imposing a tax under this Section or an
7ordinance extending the imposition of a tax to an additional
8county or counties shall be certified by the board and filed
9with the Department of Revenue either (i) on or before the
10first day of April, whereupon the Department shall proceed to
11administer and enforce the tax as of the first day of July next
12following the filing; or (ii) on or before the first day of
13October, whereupon the Department shall proceed to administer
14and enforce the tax as of the first day of January next
15following the filing.
16    (g) When certifying the amount of a monthly disbursement to
17the District under this Section, the Department shall increase
18or decrease the amounts by an amount necessary to offset any
19misallocation of previous disbursements. The offset amount
20shall be the amount erroneously disbursed within the previous 6
21months from the time a misallocation is discovered.
22(Source: P.A. 98-1098, eff. 8-26-14.)
 
23    Section 40. The Local Mass Transit District Act is amended
24by changing Section 5.01 as follows:
 

 

 

HB0498- 77 -LRB099 05664 HLH 26261 b

1    (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
2    Sec. 5.01. Metro East Mass Transit District; use and
3occupation taxes.
4    (a) The Board of Trustees of any Metro East Mass Transit
5District may, by ordinance adopted with the concurrence of
6two-thirds of the then trustees, impose throughout the District
7any or all of the taxes and fees provided in this Section. All
8taxes and fees imposed under this Section shall be used only
9for public mass transportation systems, and the amount used to
10provide mass transit service to unserved areas of the District
11shall be in the same proportion to the total proceeds as the
12number of persons residing in the unserved areas is to the
13total population of the District. Except as otherwise provided
14in this Act, taxes imposed under this Section and civil
15penalties imposed incident thereto shall be collected and
16enforced by the State Department of Revenue. The Department
17shall have the power to administer and enforce the taxes and to
18determine all rights for refunds for erroneous payments of the
19taxes.
20    (b) The Board may impose a Metro East Mass Transit District
21Retailers' Occupation Tax upon all persons engaged in the
22business of selling tangible personal property at retail in the
23district at a rate of 1/4 of 1%, or as authorized under
24subsection (d-5) of this Section, of the gross receipts from
25the sales made in the course of such business within the
26district. The tax imposed under this Section and all civil

 

 

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1penalties that may be assessed as an incident thereof shall be
2collected and enforced by the State Department of Revenue. The
3Department shall have full power to administer and enforce this
4Section; to collect all taxes and penalties so collected in the
5manner hereinafter provided; and to determine all rights to
6credit memoranda arising on account of the erroneous payment of
7tax or penalty hereunder. In the administration of, and
8compliance with, this Section, the Department and persons who
9are subject to this Section shall have the same rights,
10remedies, privileges, immunities, powers and duties, and be
11subject to the same conditions, restrictions, limitations,
12penalties, exclusions, exemptions and definitions of terms and
13employ the same modes of procedure, as are prescribed in
14Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
15(in respect to all provisions therein other than the State rate
16of tax), 2c, 3 (except as to the disposition of taxes and
17penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
185k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
19the Retailers' Occupation Tax Act and Section 3-7 of the
20Uniform Penalty and Interest Act, as fully as if those
21provisions were set forth herein.
22    Persons subject to any tax imposed under the Section may
23reimburse themselves for their seller's tax liability
24hereunder by separately stating the tax as an additional
25charge, which charge may be stated in combination, in a single
26amount, with State taxes that sellers are required to collect

 

 

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1under the Use Tax Act, in accordance with such bracket
2schedules as the Department may prescribe.
3    Whenever the Department determines that a refund should be
4made under this Section to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the warrant 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 Metro East Mass Transit District tax fund
10established under paragraph (h) of this Section.
11    If a tax is imposed under this subsection (b), a tax shall
12also be imposed under subsections (c) and (d) of this Section.
13    For the purpose of determining whether a tax authorized
14under this Section is applicable, a retail sale, by a producer
15of coal or other mineral mined in Illinois, is a sale at retail
16at the place where the coal or other mineral mined in Illinois
17is extracted from the earth. This paragraph does not apply to
18coal or other mineral when it is delivered or shipped by the
19seller to the purchaser at a point outside Illinois so that the
20sale is exempt under the Federal Constitution as a sale in
21interstate or foreign commerce.
22    No tax shall be imposed or collected under this subsection
23on the sale of a motor vehicle in this State to a resident of
24another state if that motor vehicle will not be titled in this
25State.
26    Nothing in this Section shall be construed to authorize the

 

 

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1Metro East Mass Transit District to impose a tax upon the
2privilege of engaging in any business which under the
3Constitution of the United States may not be made the subject
4of taxation by this State.
5    (c) If a tax has been imposed under subsection (b), a Metro
6East Mass Transit District Service Occupation Tax shall also be
7imposed upon all persons engaged, in the district, in the
8business of making sales of service, who, as an incident to
9making those sales of service, transfer tangible personal
10property within the District, either in the form of tangible
11personal property or in the form of real estate as an incident
12to a sale of service. The tax rate shall be 1/4%, or as
13authorized under subsection (d-5) of this Section, of the
14selling price of tangible personal property so transferred
15within the district. The tax imposed under this paragraph and
16all civil penalties that may be assessed as an incident thereof
17shall be collected and enforced by the State Department of
18Revenue. The Department shall have full power to administer and
19enforce this paragraph; to collect all taxes and penalties due
20hereunder; to dispose of taxes and penalties so collected in
21the manner hereinafter provided; and to determine all rights to
22credit memoranda arising on account of the erroneous payment of
23tax or penalty hereunder. In the administration of, and
24compliance with this paragraph, the Department and persons who
25are subject to this paragraph shall have the same rights,
26remedies, privileges, immunities, powers and duties, and be

 

 

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1subject to the same conditions, restrictions, limitations,
2penalties, exclusions, exemptions and definitions of terms and
3employ the same modes of procedure as are prescribed in
4Sections 1a-1, 2 (except that the reference to State in the
5definition of supplier maintaining a place of business in this
6State shall mean the Authority), 2a, 3 through 3-50 (in respect
7to all provisions therein other than the State rate of tax), 4
8(except that the reference to the State shall be to the
9Authority), 5, 7, 8 (except that the jurisdiction to which the
10tax shall be a debt to the extent indicated in that Section 8
11shall be the District), 9 (except as to the disposition of
12taxes and penalties collected, and except that the returned
13merchandise credit for this tax may not be taken against any
14State tax), 10, 11, 12 (except the reference therein to Section
152b of the Retailers' Occupation Tax Act), 13 (except that any
16reference to the State shall mean the District), the first
17paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
18Occupation Tax Act and Section 3-7 of the Uniform Penalty and
19Interest Act, as fully as if those provisions were set forth
20herein.
21    Persons subject to any tax imposed under the authority
22granted in this paragraph may reimburse themselves for their
23serviceman's tax liability hereunder by separately stating the
24tax as an additional charge, which charge may be stated in
25combination, in a single amount, with State tax that servicemen
26are authorized to collect under the Service Use Tax Act, in

 

 

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1accordance with such bracket schedules as the Department may
2prescribe.
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 warrant 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 Metro East Mass Transit District tax fund
10established under paragraph (h) of this Section.
11    Nothing in this paragraph shall be construed to authorize
12the District to impose a tax upon the privilege of engaging in
13any business which under the Constitution of the United States
14may not be made the subject of taxation by the State.
15    (d) If a tax has been imposed under subsection (b), a Metro
16East Mass Transit District Use Tax shall also be imposed upon
17the privilege of using, in the district, any item of tangible
18personal property that is purchased outside the district at
19retail from a retailer, and that is titled or registered with
20an agency of this State's government, at a rate of 1/4%, or as
21authorized under subsection (d-5) of this Section, of the
22selling price of the tangible personal property within the
23District, as "selling price" is defined in the Use Tax Act. The
24tax shall be collected from persons whose Illinois address for
25titling or registration purposes is given as being in the
26District. The tax shall be collected by the Department of

 

 

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1Revenue for the Metro East Mass Transit District. The tax must
2be paid to the State, or an exemption determination must be
3obtained from the Department of Revenue, before the title or
4certificate of registration for the property may be issued. The
5tax or proof of exemption may be transmitted to the Department
6by way of the State agency with which, or the State officer
7with whom, the tangible personal property must be titled or
8registered if the Department and the State agency or State
9officer determine that this procedure will expedite the
10processing of applications for title or registration.
11    The Department shall have full power to administer and
12enforce this paragraph; to collect all taxes, penalties and
13interest due hereunder; to dispose of taxes, penalties and
14interest so collected in the manner hereinafter provided; and
15to determine all rights to credit memoranda or refunds arising
16on account of the erroneous payment of tax, penalty or interest
17hereunder. In the administration of, and compliance with, this
18paragraph, the Department and persons who are subject to this
19paragraph shall have the same rights, remedies, privileges,
20immunities, powers and duties, and be subject to the same
21conditions, restrictions, limitations, penalties, exclusions,
22exemptions and definitions of terms and employ the same modes
23of procedure, as are prescribed in Sections 2 (except the
24definition of "retailer maintaining a place of business in this
25State"), 3 through 3-80 (except provisions pertaining to the
26State rate of tax, and except provisions concerning collection

 

 

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1or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
219 (except the portions pertaining to claims by retailers and
3except the last paragraph concerning refunds), 20, 21 and 22 of
4the Use Tax Act and Section 3-7 of the Uniform Penalty and
5Interest Act, that are not inconsistent with this paragraph, as
6fully as if those provisions were set forth herein.
7    Whenever the Department determines that a refund should be
8made under this paragraph to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause the order to be drawn for the
11amount specified, and to the person named, in the notification
12from the Department. The refund shall be paid by the State
13Treasurer out of the Metro East Mass Transit District tax fund
14established under paragraph (h) of this Section.
15    (d-5) (A) The county board of any county participating in
16the Metro East Mass Transit District may authorize, by
17ordinance, a referendum on the question of whether the tax
18rates for the Metro East Mass Transit District Retailers'
19Occupation Tax, the Metro East Mass Transit District Service
20Occupation Tax, and the Metro East Mass Transit District Use
21Tax for the District should be increased from 0.25% to 0.75%.
22Upon adopting the ordinance, the county board shall certify the
23proposition to the proper election officials who shall submit
24the proposition to the voters of the District at the next
25election, in accordance with the general election law.
26    The proposition shall be in substantially the following

 

 

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1form:
2        Shall the tax rates for the Metro East Mass Transit
3    District Retailers' Occupation Tax, the Metro East Mass
4    Transit District Service Occupation Tax, and the Metro East
5    Mass Transit District Use Tax be increased from 0.25% to
6    0.75%?
7    (B) Two thousand five hundred electors of any Metro East
8Mass Transit District may petition the Chief Judge of the
9Circuit Court, or any judge of that Circuit designated by the
10Chief Judge, in which that District is located to cause to be
11submitted to a vote of the electors the question whether the
12tax rates for the Metro East Mass Transit District Retailers'
13Occupation Tax, the Metro East Mass Transit District Service
14Occupation Tax, and the Metro East Mass Transit District Use
15Tax for the District should be increased from 0.25% to 0.75%.
16    Upon submission of such petition the court shall set a date
17not less than 10 nor more than 30 days thereafter for a hearing
18on the sufficiency thereof. Notice of the filing of such
19petition and of such date shall be given in writing to the
20District and the County Clerk at least 7 days before the date
21of such hearing.
22    If such petition is found sufficient, the court shall enter
23an order to submit that proposition at the next election, in
24accordance with general election law.
25    The form of the petition shall be in substantially the
26following form: To the Circuit Court of the County of (name of

 

 

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1county):
2        We, the undersigned electors of the (name of transit
3    district), respectfully petition your honor to submit to a
4    vote of the electors of (name of transit district) the
5    following proposition:
6        Shall the tax rates for the Metro East Mass Transit
7    District Retailers' Occupation Tax, the Metro East Mass
8    Transit District Service Occupation Tax, and the Metro East
9    Mass Transit District Use Tax be increased from 0.25% to
10    0.75%?
11        Name                Address, with Street and Number.
12..............................................................
13..............................................................
14    (C) The votes shall be recorded as "YES" or "NO". If a
15majority of all votes cast on the proposition are for the
16increase in the tax rates, the Metro East Mass Transit District
17shall begin imposing the increased rates in the District, and
18the Department of Revenue shall begin collecting the increased
19amounts, as provided under this Section. An ordinance imposing
20or discontinuing a tax hereunder or effecting a change in the
21rate thereof shall be adopted and a certified copy thereof
22filed with the Department on or before the first day of
23October, whereupon the Department shall proceed to administer
24and enforce this Section as of the first day of January next
25following the adoption and filing, or on or before the first
26day of April, whereupon the Department shall proceed to

 

 

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1administer and enforce this Section as of the first day of July
2next following the adoption and filing.
3    (D) If the voters have approved a referendum under this
4subsection, before November 1, 1994, to increase the tax rate
5under this subsection, the Metro East Mass Transit District
6Board of Trustees may adopt by a majority vote an ordinance at
7any time before January 1, 1995 that excludes from the rate
8increase tangible personal property that is titled or
9registered with an agency of this State's government. The
10ordinance excluding titled or registered tangible personal
11property from the rate increase must be filed with the
12Department at least 15 days before its effective date. At any
13time after adopting an ordinance excluding from the rate
14increase tangible personal property that is titled or
15registered with an agency of this State's government, the Metro
16East Mass Transit District Board of Trustees may adopt an
17ordinance applying the rate increase to that tangible personal
18property. The ordinance shall be adopted, and a certified copy
19of that ordinance shall be filed with the Department, on or
20before October 1, whereupon the Department shall proceed to
21administer and enforce the rate increase against tangible
22personal property titled or registered with an agency of this
23State's government as of the following January 1. After
24December 31, 1995, any reimposed rate increase in effect under
25this subsection shall no longer apply to tangible personal
26property titled or registered with an agency of this State's

 

 

HB0498- 88 -LRB099 05664 HLH 26261 b

1government. Beginning January 1, 1996, the Board of Trustees of
2any Metro East Mass Transit District may never reimpose a
3previously excluded tax rate increase on tangible personal
4property titled or registered with an agency of this State's
5government. After July 1, 2004, if the voters have approved a
6referendum under this subsection to increase the tax rate under
7this subsection, the Metro East Mass Transit District Board of
8Trustees may adopt by a majority vote an ordinance that
9excludes from the rate increase tangible personal property that
10is titled or registered with an agency of this State's
11government. The ordinance excluding titled or registered
12tangible personal property from the rate increase shall be
13adopted, and a certified copy of that ordinance shall be filed
14with the Department on or before October 1, whereupon the
15Department shall administer and enforce this exclusion from the
16rate increase as of the following January 1, or on or before
17April 1, whereupon the Department shall administer and enforce
18this exclusion from the rate increase as of the following July
191. The Board of Trustees of any Metro East Mass Transit
20District may never reimpose a previously excluded tax rate
21increase on tangible personal property titled or registered
22with an agency of this State's government.
23    (d-6) If the Board of Trustees of any Metro East Mass
24Transit District has imposed a rate increase under subsection
25(d-5) and filed an ordinance with the Department of Revenue
26excluding titled property from the higher rate, then that Board

 

 

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1may, by ordinance adopted with the concurrence of two-thirds of
2the then trustees, impose throughout the District a fee. The
3fee on the excluded property shall not exceed $20 per retail
4transaction or an amount equal to the amount of tax excluded,
5whichever is less, on tangible personal property that is titled
6or registered with an agency of this State's government.
7Beginning July 1, 2004, the fee shall apply only to titled
8property that is subject to either the Metro East Mass Transit
9District Retailers' Occupation Tax or the Metro East Mass
10Transit District Service Occupation Tax. No fee shall be
11imposed or collected under this subsection on the sale of a
12motor vehicle in this State to a resident of another state if
13that motor vehicle will not be titled in this State.
14    (d-7) Until June 30, 2004, if a fee has been imposed under
15subsection (d-6), a fee shall also be imposed upon the
16privilege of using, in the district, any item of tangible
17personal property that is titled or registered with any agency
18of this State's government, in an amount equal to the amount of
19the fee imposed under subsection (d-6).
20    (d-7.1) Beginning July 1, 2004, any fee imposed by the
21Board of Trustees of any Metro East Mass Transit District under
22subsection (d-6) and all civil penalties that may be assessed
23as an incident of the fees shall be collected and enforced by
24the State Department of Revenue. Reference to "taxes" in this
25Section shall be construed to apply to the administration,
26payment, and remittance of all fees under this Section. For

 

 

HB0498- 90 -LRB099 05664 HLH 26261 b

1purposes of any fee imposed under subsection (d-6), 4% of the
2fee, penalty, and interest received by the Department in the
3first 12 months that the fee is collected and enforced by the
4Department and 2% of the fee, penalty, and interest following
5the first 12 months shall be deposited into the Tax Compliance
6and Administration Fund and shall be used by the Department,
7subject to appropriation, to cover the costs of the Department.
8No retailers' discount shall apply to any fee imposed under
9subsection (d-6).
10    (d-8) No item of titled property shall be subject to both
11the higher rate approved by referendum, as authorized under
12subsection (d-5), and any fee imposed under subsection (d-6) or
13(d-7).
14    (d-9) (Blank).
15    (d-10) (Blank).
16    (e) A certificate of registration issued by the State
17Department of Revenue to a retailer under the Retailers'
18Occupation Tax Act or under the Service Occupation Tax Act
19shall permit the registrant to engage in a business that is
20taxed under the tax imposed under paragraphs (b), (c) or (d) of
21this Section and no additional registration shall be required
22under the tax. A certificate issued under the Use Tax Act or
23the Service Use Tax Act shall be applicable with regard to any
24tax imposed under paragraph (c) of this Section.
25    (f) (Blank).
26    (g) Any ordinance imposing or discontinuing any tax under

 

 

HB0498- 91 -LRB099 05664 HLH 26261 b

1this Section shall be adopted and a certified copy thereof
2filed with the Department on or before June 1, whereupon the
3Department of Revenue shall proceed to administer and enforce
4this Section on behalf of the Metro East Mass Transit District
5as of September 1 next following such adoption and filing.
6Beginning January 1, 1992, an ordinance or resolution imposing
7or discontinuing the tax hereunder shall be adopted and a
8certified copy thereof filed with the Department on or before
9the first day of July, whereupon the Department shall proceed
10to administer and enforce this Section as of the first day of
11October next following such adoption and filing. Beginning
12January 1, 1993, except as provided in subsection (d-5) of this
13Section, an ordinance or resolution imposing or discontinuing
14the tax hereunder shall be adopted and a certified copy thereof
15filed with the Department on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce this Section as of the first day of January next
18following such adoption and filing, or, beginning January 1,
192004, on or before the first day of April, whereupon the
20Department shall proceed to administer and enforce this Section
21as of the first day of July next following the adoption and
22filing.
23    (h) Except as provided in subsection (d-7.1), the State
24Department of Revenue shall, upon collecting any taxes as
25provided in this Section, pay the taxes over to the State
26Treasurer as trustee for the District. The taxes shall be held

 

 

HB0498- 92 -LRB099 05664 HLH 26261 b

1in a trust fund outside the State Treasury.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this Section
8during the second preceding calendar month for sales within a
9STAR bond district. The Department shall make this
10certification only if the local mass transit district imposes a
11tax on real property as provided in the definition of "local
12sales taxes" under the Innovation Development and Economy Act.
13    After the monthly transfer to the STAR Bonds Revenue Fund,
14on or before the 25th day of each calendar month, the State
15Department of Revenue shall prepare and certify to the
16Comptroller of the State of Illinois the amount to be paid to
17the District, which shall be the amount (not including credit
18memoranda) collected under this Section during the second
19preceding calendar month by the Department plus an amount the
20Department determines is necessary to offset any amounts that
21were erroneously paid to a different taxing body, and not
22including any amount equal to the amount of refunds made during
23the second preceding calendar month by the Department on behalf
24of the District, and not including any amount that the
25Department determines is necessary to offset any amounts that
26were payable to a different taxing body but were erroneously

 

 

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1paid to the District, and less any amounts that are transferred
2to the STAR Bonds Revenue Fund. Within 10 days after receipt by
3the Comptroller of the certification of the amount to be paid
4to the District, the Comptroller shall cause an order to be
5drawn for payment for the amount in accordance with the
6direction in the certification.
7(Source: P.A. 98-298, eff. 8-9-13.)
 
8    Section 45. The Regional Transportation Authority Act is
9amended by changing Section 4.03 as follows:
 
10    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
11    Sec. 4.03. Taxes.
12    (a) In order to carry out any of the powers or purposes of
13the Authority, the Board may by ordinance adopted with the
14concurrence of 12 of the then Directors, impose throughout the
15metropolitan region any or all of the taxes provided in this
16Section. Except as otherwise provided in this Act, taxes
17imposed under this Section and civil penalties imposed incident
18thereto shall be collected and enforced by the State Department
19of Revenue. The Department shall have the power to administer
20and enforce the taxes and to determine all rights for refunds
21for erroneous payments of the taxes. Nothing in this amendatory
22Act of the 95th General Assembly is intended to invalidate any
23taxes currently imposed by the Authority. The increased vote
24requirements to impose a tax shall only apply to actions taken

 

 

HB0498- 94 -LRB099 05664 HLH 26261 b

1after the effective date of this amendatory Act of the 95th
2General Assembly.
3    (b) The Board may impose a public transportation tax upon
4all persons engaged in the metropolitan region in the business
5of selling at retail motor fuel for operation of motor vehicles
6upon public highways. The tax shall be at a rate not to exceed
75% of the gross receipts from the sales of motor fuel in the
8course of the business. As used in this Act, the term "motor
9fuel" shall have the same meaning as in the Motor Fuel Tax Law.
10The Board may provide for details of the tax. The provisions of
11any tax shall conform, as closely as may be practicable, to the
12provisions of the Municipal Retailers Occupation Tax Act,
13including without limitation, conformity to penalties with
14respect to the tax imposed and as to the powers of the State
15Department of Revenue to promulgate and enforce rules and
16regulations relating to the administration and enforcement of
17the provisions of the tax imposed, except that reference in the
18Act to any municipality shall refer to the Authority and the
19tax shall be imposed only with regard to receipts from sales of
20motor fuel in the metropolitan region, at rates as limited by
21this Section.
22    (c) In connection with the tax imposed under paragraph (b)
23of this Section the Board may impose a tax upon the privilege
24of using in the metropolitan region motor fuel for the
25operation of a motor vehicle upon public highways, the tax to
26be at a rate not in excess of the rate of tax imposed under

 

 

HB0498- 95 -LRB099 05664 HLH 26261 b

1paragraph (b) of this Section. The Board may provide for
2details of the tax.
3    (d) The Board may impose a motor vehicle parking tax upon
4the privilege of parking motor vehicles at off-street parking
5facilities in the metropolitan region at which a fee is
6charged, and may provide for reasonable classifications in and
7exemptions to the tax, for administration and enforcement
8thereof and for civil penalties and refunds thereunder and may
9provide criminal penalties thereunder, the maximum penalties
10not to exceed the maximum criminal penalties provided in the
11Retailers' Occupation Tax Act. The Authority may collect and
12enforce the tax itself or by contract with any unit of local
13government. The State Department of Revenue shall have no
14responsibility for the collection and enforcement unless the
15Department agrees with the Authority to undertake the
16collection and enforcement. As used in this paragraph, the term
17"parking facility" means a parking area or structure having
18parking spaces for more than 2 vehicles at which motor vehicles
19are permitted to park in return for an hourly, daily, or other
20periodic fee, whether publicly or privately owned, but does not
21include parking spaces on a public street, the use of which is
22regulated by parking meters.
23    (e) The Board may impose a Regional Transportation
24Authority Retailers' Occupation Tax upon all persons engaged in
25the business of selling tangible personal property at retail in
26the metropolitan region. In Cook County the tax rate shall be

 

 

HB0498- 96 -LRB099 05664 HLH 26261 b

11.25% of the gross receipts from sales of food for human
2consumption that is to be consumed off the premises where it is
3sold (other than alcoholic beverages, soft drinks and food that
4has been prepared for immediate consumption) and prescription
5and nonprescription medicines, drugs, medical appliances and
6insulin, urine testing materials, syringes and needles used by
7diabetics, and 1% of the gross receipts from other taxable
8sales made in the course of that business. In DuPage, Kane,
9Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
10of the gross receipts from all taxable sales made in the course
11of that business. The tax imposed under this Section and all
12civil penalties that may be assessed as an incident thereof
13shall be collected and enforced by the State Department of
14Revenue. The Department shall have full power to administer and
15enforce this Section; to collect all taxes and penalties so
16collected in the manner hereinafter provided; and to determine
17all rights to credit memoranda arising on account of the
18erroneous payment of tax or penalty hereunder. In the
19administration of, and compliance with this Section, the
20Department and persons who are subject to this Section shall
21have the same rights, remedies, privileges, immunities, powers
22and duties, and be subject to the same conditions,
23restrictions, limitations, penalties, exclusions, exemptions
24and definitions of terms, and employ the same modes of
25procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
261e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions

 

 

HB0498- 97 -LRB099 05664 HLH 26261 b

1therein other than the State rate of tax), 2c, 3 (except as to
2the disposition of taxes and penalties collected), 4, 5, 5a,
35b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
47, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
5and Section 3-7 of the Uniform Penalty and Interest Act, as
6fully as if those provisions were set forth herein.
7    Persons subject to any tax imposed under the authority
8granted in this Section may reimburse themselves for their
9seller's tax liability hereunder by separately stating the tax
10as an additional charge, which charge may be stated in
11combination in a single amount with State taxes that sellers
12are required to collect under the Use Tax Act, under any
13bracket schedules the Department may prescribe.
14    Whenever the Department determines that a refund should be
15made under this Section to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the warrant to be drawn for the
18amount specified, and to the person named, in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the Regional Transportation Authority tax fund
21established under paragraph (n) of this Section.
22    If a tax is imposed under this subsection (e), a tax shall
23also be imposed under subsections (f) and (g) of this Section.
24    For the purpose of determining whether a tax authorized
25under this Section is applicable, a retail sale by a producer
26of coal or other mineral mined in Illinois, is a sale at retail

 

 

HB0498- 98 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 99 -LRB099 05664 HLH 26261 b

1tax by an entity licensed under the Hospital Licensing Act, the
2Nursing Home Care Act, the Specialized Mental Health
3Rehabilitation Act of 2013, or the ID/DD Community Care Act
4that is located in the metropolitan region; (2) 1.25% of the
5selling price of food for human consumption that is to be
6consumed off the premises where it is sold (other than
7alcoholic beverages, soft drinks and food that has been
8prepared for immediate consumption) and prescription and
9nonprescription medicines, drugs, medical appliances and
10insulin, urine testing materials, syringes and needles used by
11diabetics; and (3) 1% of the selling price from other taxable
12sales of tangible personal property transferred. In DuPage,
13Kane, Lake, McHenry and Will Counties the rate shall be 0.75%
14of the selling price of all tangible personal property
15transferred.
16    The tax imposed under this paragraph and all civil
17penalties that may be assessed as an incident thereof shall be
18collected and enforced by the State Department of Revenue. The
19Department shall have full power to administer and enforce this
20paragraph; to collect all taxes and penalties due hereunder; to
21dispose of taxes and penalties collected in the manner
22hereinafter provided; and to determine all rights to credit
23memoranda arising on account of the erroneous payment of tax or
24penalty hereunder. In the administration of and compliance with
25this paragraph, the Department and persons who are subject to
26this paragraph shall have the same rights, remedies,

 

 

HB0498- 100 -LRB099 05664 HLH 26261 b

1privileges, immunities, powers and duties, and be subject to
2the same conditions, restrictions, limitations, penalties,
3exclusions, exemptions and definitions of terms, and employ the
4same modes of procedure, as are prescribed in Sections 1a-1, 2,
52a, 3 through 3-50 (in respect to all provisions therein other
6than the State rate of tax), 4 (except that the reference to
7the State shall be to the Authority), 5, 7, 8 (except that the
8jurisdiction to which the tax shall be a debt to the extent
9indicated in that Section 8 shall be the Authority), 9 (except
10as to the disposition of taxes and penalties collected, and
11except that the returned merchandise credit for this tax may
12not be taken against any State tax), 10, 11, 12 (except the
13reference therein to Section 2b of the Retailers' Occupation
14Tax Act), 13 (except that any reference to the State shall mean
15the Authority), the first paragraph of Section 15, 16, 17, 18,
1619 and 20 of the Service Occupation Tax Act and Section 3-7 of
17the Uniform Penalty and Interest Act, as fully as if those
18provisions were set forth herein.
19    Persons subject to any tax imposed under the authority
20granted in this paragraph may reimburse themselves for their
21serviceman's tax liability hereunder by separately stating the
22tax as an additional charge, that charge may be stated in
23combination in a single amount with State tax that servicemen
24are authorized to collect under the Service Use Tax Act, under
25any bracket schedules the Department may prescribe.
26    Whenever the Department determines that a refund should be

 

 

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1made under this paragraph to a claimant instead of issuing a
2credit memorandum, the Department shall notify the State
3Comptroller, who shall cause the warrant to be drawn for the
4amount specified, and to the person named in the notification
5from the Department. The refund shall be paid by the State
6Treasurer out of the Regional Transportation Authority tax fund
7established under paragraph (n) of this Section.
8    Nothing in this paragraph shall be construed to authorize
9the Authority to impose a tax upon the privilege of engaging in
10any business that under the Constitution of the United States
11may not be made the subject of taxation by the State.
12    (g) If a tax has been imposed under paragraph (e), a tax
13shall also be imposed upon the privilege of using in the
14metropolitan region, any item of tangible personal property
15that is purchased outside the metropolitan region at retail
16from a retailer, and that is titled or registered with an
17agency of this State's government. In Cook County the tax rate
18shall be 1% of the selling price of the tangible personal
19property, as "selling price" is defined in the Use Tax Act. In
20DuPage, Kane, Lake, McHenry and Will counties the tax rate
21shall be 0.75% of the selling price of the tangible personal
22property, as "selling price" is defined in the Use Tax Act. The
23tax shall be collected from persons whose Illinois address for
24titling or registration purposes is given as being in the
25metropolitan region. The tax shall be collected by the
26Department of Revenue for the Regional Transportation

 

 

HB0498- 102 -LRB099 05664 HLH 26261 b

1Authority. The tax must be paid to the State, or an exemption
2determination must be obtained from the Department of Revenue,
3before the title or certificate of registration for the
4property may be issued. The tax or proof of exemption may be
5transmitted to the Department by way of the State agency with
6which, or the State officer with whom, the tangible personal
7property must be titled or registered if the Department and the
8State agency or State officer determine that this procedure
9will expedite the processing of applications for title or
10registration.
11    The Department shall have full power to administer and
12enforce this paragraph; to collect all taxes, penalties and
13interest due hereunder; to dispose of taxes, penalties and
14interest collected in the manner hereinafter provided; and to
15determine all rights to credit memoranda or refunds arising on
16account of the erroneous payment of tax, penalty or interest
17hereunder. In the administration of and compliance with this
18paragraph, the Department and persons who are subject to this
19paragraph shall have the same rights, remedies, privileges,
20immunities, powers and duties, and be subject to the same
21conditions, restrictions, limitations, penalties, exclusions,
22exemptions and definitions of terms and employ the same modes
23of procedure, as are prescribed in Sections 2 (except the
24definition of "retailer maintaining a place of business in this
25State"), 3 through 3-80 (except provisions pertaining to the
26State rate of tax, and except provisions concerning collection

 

 

HB0498- 103 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 104 -LRB099 05664 HLH 26261 b

1hereunder.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this Section
8during the second preceding calendar month for sales within a
9STAR bond district.
10    After the monthly transfer to the STAR Bonds Revenue Fund,
11on 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 Authority. The
14amount to be paid to the Authority shall be the amount
15collected hereunder during the second preceding calendar month
16by the Department, less any amount determined by the Department
17to be necessary for the payment of refunds, and less any
18amounts that are transferred to the STAR Bonds Revenue Fund.
19Within 10 days after receipt by the Comptroller of the
20disbursement certification to the Authority provided for in
21this Section to be given to the Comptroller by the Department,
22the Comptroller shall cause the orders to be drawn for that
23amount in accordance with the directions contained in the
24certification.
25    (i) The Board may not impose any other taxes except as it
26may from time to time be authorized by law to impose.

 

 

HB0498- 105 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 106 -LRB099 05664 HLH 26261 b

1The State Department of Revenue may provide for certificates of
2registration for users or purchasers of motor fuel for purposes
3other than those with regard to which taxes may be imposed as
4provided in paragraphs (b) and (c) of this Section to
5facilitate the reporting and nontaxability of the exempt sales
6or uses.
7    (m) Any ordinance imposing or discontinuing any tax under
8this Section shall be adopted and a certified copy thereof
9filed with the Department on or before June 1, whereupon the
10Department of Revenue shall proceed to administer and enforce
11this Section on behalf of the Regional Transportation Authority
12as of September 1 next following such adoption and filing.
13Beginning January 1, 1992, an ordinance or resolution imposing
14or discontinuing the tax hereunder shall be adopted and a
15certified copy thereof filed with the Department on or before
16the first day of July, whereupon the Department shall proceed
17to administer and enforce this Section as of the first day of
18October next following such adoption and filing. Beginning
19January 1, 1993, an ordinance or resolution imposing,
20increasing, decreasing, or discontinuing the tax hereunder
21shall be adopted and a certified copy thereof filed with the
22Department, whereupon the Department shall proceed to
23administer and enforce this Section as of the first day of the
24first month to occur not less than 60 days following such
25adoption and filing. Any ordinance or resolution of the
26Authority imposing a tax under this Section and in effect on

 

 

HB0498- 107 -LRB099 05664 HLH 26261 b

1August 1, 2007 shall remain in full force and effect and shall
2be administered by the Department of Revenue under the terms
3and conditions and rates of tax established by such ordinance
4or resolution until the Department begins administering and
5enforcing an increased tax under this Section as authorized by
6this amendatory Act of the 95th General Assembly. The tax rates
7authorized by this amendatory Act of the 95th General Assembly
8are effective only if imposed by ordinance of the Authority.
9    (n) The State Department of Revenue shall, upon collecting
10any taxes as provided in this Section, pay the taxes over to
11the State Treasurer as trustee for the Authority. The taxes
12shall be held in a trust fund outside the State Treasury. On or
13before the 25th day of each calendar month, the State
14Department of Revenue shall prepare and certify to the
15Comptroller of the State of Illinois and to the Authority (i)
16the amount of taxes collected in each County other than Cook
17County in the metropolitan region, (ii) the amount of taxes
18collected within the City of Chicago, and (iii) the amount
19collected in that portion of Cook County outside of Chicago,
20each amount less the amount necessary for the payment of
21refunds to taxpayers located in those areas described in items
22(i), (ii), and (iii). Within 10 days after receipt by the
23Comptroller of the certification of the amounts, the
24Comptroller shall cause an order to be drawn for the payment of
25two-thirds of the amounts certified in item (i) of this
26subsection to the Authority and one-third of the amounts

 

 

HB0498- 108 -LRB099 05664 HLH 26261 b

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

 

 

HB0498- 109 -LRB099 05664 HLH 26261 b

1retailers' occupation, use or service occupation tax
2authorized under paragraphs (e), (f) and (g) of this Section is
3in effect.
4    Any taxes imposed under the authority provided in
5paragraphs (b), (c) and (d) shall remain in effect only until
6the time as any tax authorized by paragraphs (e), (f) or (g) of
7this Section are imposed and becomes effective. Once any tax
8authorized by paragraphs (e), (f) or (g) is imposed the Board
9may not reimpose taxes as authorized in paragraphs (b), (c) and
10(d) of the Section unless any tax authorized by paragraphs (e),
11(f) or (g) of this Section becomes ineffective by means other
12than an ordinance of the Board.
13    (q) Any existing rights, remedies and obligations
14(including enforcement by the Regional Transportation
15Authority) arising under any tax imposed under paragraphs (b),
16(c) or (d) of this Section shall not be affected by the
17imposition of a tax under paragraphs (e), (f) or (g) of this
18Section.
19(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
20eff. 7-13-12; 98-104, eff. 7-22-13.)
 
21    Section 50. The Water Commission Act of 1985 is amended by
22changing Section 4 as follows:
 
23    (70 ILCS 3720/4)  (from Ch. 111 2/3, par. 254)
24    Sec. 4. Taxes.

 

 

HB0498- 110 -LRB099 05664 HLH 26261 b

1    (a) The board of commissioners of any county water
2commission may, by ordinance, impose throughout the territory
3of the commission any or all of the taxes provided in this
4Section for its corporate purposes. However, no county water
5commission may impose any such tax unless the commission
6certifies the proposition of imposing the tax to the proper
7election officials, who shall submit the proposition to the
8voters residing in the territory at an election in accordance
9with the general election law, and the proposition has been
10approved by a majority of those voting on the proposition.
11    The proposition shall be in the form provided in Section 5
12or shall be substantially in the following form:
13-------------------------------------------------------------
14    Shall the (insert corporate
15name of county water commission)           YES
16impose (state type of tax or         ------------------------
17taxes to be imposed) at the                NO
18rate of 1/4%?
19-------------------------------------------------------------
20    Taxes imposed under this Section and civil penalties
21imposed incident thereto shall be collected and enforced by the
22State Department of Revenue. The Department shall have the
23power to administer and enforce the taxes and to determine all
24rights for refunds for erroneous payments of the taxes.
25    (b) The board of commissioners may impose a County Water
26Commission Retailers' Occupation Tax upon all persons engaged

 

 

HB0498- 111 -LRB099 05664 HLH 26261 b

1in the business of selling tangible personal property at retail
2in the territory of the commission at a rate of 1/4% of the
3gross receipts from the sales made in the course of such
4business within the territory. The tax imposed under this
5paragraph and all civil penalties that may be assessed as an
6incident thereof shall be collected and enforced by the State
7Department of Revenue. The Department shall have full power to
8administer and enforce this paragraph; to collect all taxes and
9penalties due hereunder; to dispose of taxes and penalties so
10collected in the manner hereinafter provided; and to determine
11all rights to credit memoranda arising on account of the
12erroneous payment of tax or penalty hereunder. In the
13administration of, and compliance with, this paragraph, the
14Department and persons who are subject to this paragraph shall
15have the same rights, remedies, privileges, immunities, powers
16and duties, and be subject to the same conditions,
17restrictions, limitations, penalties, exclusions, exemptions
18and definitions of terms, and employ the same modes of
19procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
201e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
21therein other than the State rate of tax except that food for
22human consumption that is to be consumed off the premises where
23it is sold (other than alcoholic beverages, soft drinks, and
24food that has been prepared for immediate consumption) and
25prescription and nonprescription medicine, drugs, medical
26appliances and insulin, urine testing materials, syringes, and

 

 

HB0498- 112 -LRB099 05664 HLH 26261 b

1needles used by diabetics, for human use, shall not be subject
2to tax hereunder), 2c, 3 (except as to the disposition of taxes
3and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
45i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of
5the Retailers' Occupation Tax Act and Section 3-7 of the
6Uniform Penalty and Interest Act, as fully as if those
7provisions were set forth herein.
8    Persons subject to any tax imposed under the authority
9granted in this paragraph may reimburse themselves for their
10seller's tax liability hereunder by separately stating the tax
11as an additional charge, which charge may be stated in
12combination, in a single amount, with State taxes that sellers
13are required to collect under the Use Tax Act and under
14subsection (e) of Section 4.03 of the Regional Transportation
15Authority Act, in accordance with such bracket schedules as the
16Department may prescribe.
17    Whenever the Department determines that a refund should be
18made under this paragraph to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the warrant to be drawn for the
21amount specified, and to the person named, in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of a county water commission tax fund established
24under paragraph (g) of this Section.
25    For the purpose of determining whether a tax authorized
26under this paragraph is applicable, a retail sale by a producer

 

 

HB0498- 113 -LRB099 05664 HLH 26261 b

1of coal or other mineral mined in Illinois is a sale at retail
2at the place where the coal or other mineral mined in Illinois
3is extracted from the earth. This paragraph does not apply to
4coal or other mineral when it is delivered or shipped by the
5seller to the purchaser at a point outside Illinois so that the
6sale is exempt under the Federal Constitution as a sale in
7interstate or foreign commerce.
8    If a tax is imposed under this subsection (b) a tax shall
9also be imposed under subsections (c) and (d) of this Section.
10    No tax shall be imposed or collected under this subsection
11on the sale of a motor vehicle in this State to a resident of
12another state if that motor vehicle will not be titled in this
13State.
14    Nothing in this paragraph shall be construed to authorize a
15county water commission to impose a tax upon the privilege of
16engaging in any business which under the Constitution of the
17United States may not be made the subject of taxation by this
18State.
19    (c) If a tax has been imposed under subsection (b), a
20County Water Commission Service Occupation Tax shall also be
21imposed upon all persons engaged, in the territory of the
22commission, in the business of making sales of service, who, as
23an incident to making the sales of service, transfer tangible
24personal property within the territory. The tax rate shall be
251/4% of the selling price of tangible personal property so
26transferred within the territory. The tax imposed under this

 

 

HB0498- 114 -LRB099 05664 HLH 26261 b

1paragraph and all civil penalties that may be assessed as an
2incident thereof shall be collected and enforced by the State
3Department of Revenue. The Department shall have full power to
4administer and enforce this paragraph; to collect all taxes and
5penalties due hereunder; to dispose of taxes and penalties so
6collected in the manner hereinafter provided; and to determine
7all rights to credit memoranda arising on account of the
8erroneous payment of tax or penalty hereunder. In the
9administration of, and compliance with, this paragraph, the
10Department and persons who are subject to this paragraph shall
11have the same rights, remedies, privileges, immunities, powers
12and duties, and be subject to the same conditions,
13restrictions, limitations, penalties, exclusions, exemptions
14and definitions of terms, and employ the same modes of
15procedure, as are prescribed in Sections 1a-1, 2 (except that
16the reference to State in the definition of supplier
17maintaining a place of business in this State shall mean the
18territory of the commission), 2a, 3 through 3-50 (in respect to
19all provisions therein other than the State rate of tax except
20that food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances and insulin, urine testing
25materials, syringes, and needles used by diabetics, for human
26use, shall not be subject to tax hereunder), 4 (except that the

 

 

HB0498- 115 -LRB099 05664 HLH 26261 b

1reference to the State shall be to the territory of the
2commission), 5, 7, 8 (except that the jurisdiction to which the
3tax shall be a debt to the extent indicated in that Section 8
4shall be the commission), 9 (except as to the disposition of
5taxes and penalties collected and except that the returned
6merchandise credit for this tax may not be taken against any
7State tax), 10, 11, 12 (except the reference therein to Section
82b of the Retailers' Occupation Tax Act), 13 (except that any
9reference to the State shall mean the territory of the
10commission), the first paragraph of Section 15, 15.5, 16, 17,
1118, 19 and 20 of the Service Occupation Tax Act as fully as if
12those provisions were set forth herein.
13    Persons subject to any tax imposed under the authority
14granted in this paragraph may reimburse themselves for their
15serviceman's tax liability hereunder by separately stating the
16tax as an additional charge, which charge may be stated in
17combination, in a single amount, with State tax that servicemen
18are authorized to collect under the Service Use Tax Act, and
19any tax for which servicemen may be liable under subsection (f)
20of Sec. 4.03 of the Regional Transportation Authority 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 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

 

 

HB0498- 116 -LRB099 05664 HLH 26261 b

1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of a county water commission tax fund established
4under paragraph (g) of this Section.
5    Nothing in this paragraph shall be construed to authorize a
6county water commission to impose a tax upon the privilege of
7engaging in any business which under the Constitution of the
8United States may not be made the subject of taxation by the
9State.
10    (d) If a tax has been imposed under subsection (b), a tax
11shall also imposed upon the privilege of using, in the
12territory of the commission, any item of tangible personal
13property that is purchased outside the territory at retail from
14a retailer, and that is titled or registered with an agency of
15this State's government, at a rate of 1/4% of the selling price
16of the tangible personal property within the territory, as
17"selling price" is defined in the Use Tax Act. The tax shall be
18collected from persons whose Illinois address for titling or
19registration purposes is given as being in the territory. The
20tax shall be collected by the Department of Revenue for a
21county water commission. The tax must be paid to the State, or
22an exemption determination must be obtained from the Department
23of Revenue, before the title or certificate of registration for
24the property may be issued. The tax or proof of exemption may
25be transmitted to the Department by way of the State agency
26with which, or the State officer with whom, the tangible

 

 

HB0498- 117 -LRB099 05664 HLH 26261 b

1personal property must be titled or registered if the
2Department and the State agency or State officer determine that
3this procedure will expedite the processing of applications for
4title or registration.
5    The Department shall have full power to administer and
6enforce this paragraph; to collect all taxes, penalties and
7interest due hereunder; to dispose of taxes, penalties and
8interest so collected in the manner hereinafter provided; and
9to determine all rights to credit memoranda or refunds arising
10on account of the erroneous payment of tax, penalty or interest
11hereunder. In the administration of, and compliance with this
12paragraph, the Department and persons who are subject to this
13paragraph shall have the same rights, remedies, privileges,
14immunities, powers and duties, and be subject to the same
15conditions, restrictions, limitations, penalties, exclusions,
16exemptions and definitions of terms and employ the same modes
17of procedure, as are prescribed in Sections 2 (except the
18definition of "retailer maintaining a place of business in this
19State"), 3 through 3-80 (except provisions pertaining to the
20State rate of tax, and except provisions concerning collection
21or refunding of the tax by retailers, and except that food for
22human consumption that is to be consumed off the premises where
23it is sold (other than alcoholic beverages, soft drinks, and
24food that has been prepared for immediate consumption) and
25prescription and nonprescription medicines, drugs, medical
26appliances and insulin, urine testing materials, syringes, and

 

 

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1needles used by diabetics, for human use, shall not be subject
2to tax hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the
3portions pertaining to claims by retailers and except the last
4paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
5and Section 3-7 of the Uniform Penalty and Interest Act that
6are not inconsistent with this paragraph, as fully as if those
7provisions were set forth herein.
8    Whenever the Department determines that a refund should be
9made under this paragraph to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified, and to the person named, in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of a county water commission tax fund established
15under paragraph (g) of this Section.
16    (e) A certificate of registration issued by the State
17Department of Revenue to a retailer under the Retailers'
18Occupation Tax Act or under the Service Occupation Tax Act
19shall permit the registrant to engage in a business that is
20taxed under the tax imposed under paragraphs (b), (c) or (d) of
21this Section and no additional registration shall be required
22under the tax. A certificate issued under the Use Tax Act or
23the Service Use Tax Act shall be applicable with regard to any
24tax imposed under paragraph (c) of this Section.
25    (f) Any ordinance imposing or discontinuing any tax under
26this Section shall be adopted and a certified copy thereof

 

 

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1filed with the Department on or before June 1, whereupon the
2Department of Revenue shall proceed to administer and enforce
3this Section on behalf of the county water commission as of
4September 1 next following the adoption and filing. Beginning
5January 1, 1992, an ordinance or resolution imposing or
6discontinuing the tax hereunder shall be adopted and a
7certified copy thereof filed with the Department on or before
8the first day of July, whereupon the Department shall proceed
9to administer and enforce this Section as of the first day of
10October next following such adoption and filing. Beginning
11January 1, 1993, an ordinance or resolution imposing or
12discontinuing the tax hereunder shall be adopted and a
13certified copy thereof filed with the Department on or before
14the first day of October, whereupon the Department shall
15proceed to administer and enforce this Section as of the first
16day of January next following such adoption and filing.
17    (g) The State Department of Revenue shall, upon collecting
18any taxes as provided in this Section, pay the taxes over to
19the State Treasurer as trustee for the commission. The taxes
20shall be held in a trust fund outside the State Treasury.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

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1during the second preceding calendar month for sales within a
2STAR bond district.
3    After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the State
5Department of Revenue shall prepare and certify to the
6Comptroller of the State of Illinois the amount to be paid to
7the commission, which shall be the amount (not including credit
8memoranda) collected under this Section during the second
9preceding calendar month by the Department plus an amount the
10Department determines is necessary to offset any amounts that
11were erroneously paid to a different taxing body, and not
12including any amount equal to the amount of refunds made during
13the second preceding calendar month by the Department on behalf
14of the commission, and not including any amount that the
15Department determines is necessary to offset any amounts that
16were payable to a different taxing body but were erroneously
17paid to the commission, and less any amounts that are
18transferred to the STAR Bonds Revenue Fund. Within 10 days
19after receipt by the Comptroller of the certification of the
20amount to be paid to the commission, the Comptroller shall
21cause an order to be drawn for the payment for the amount in
22accordance with the direction in the certification.
23    (h) Beginning June 1, 2016, any tax imposed pursuant to
24this Section may no longer be imposed or collected, unless a
25continuation of the tax is approved by the voters at a
26referendum as set forth in this Section.

 

 

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1(Source: P.A. 97-333, eff. 8-12-11; 98-298, eff. 8-9-13.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.