Illinois General Assembly - Full Text of SB3865
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Full Text of SB3865  101st General Assembly

SB3865 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3865

 

Introduced 2/14/2020, by Sen. Scott M. Bennett

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.7

    Amends the Counties Code. Provides that 1% of the school facility occupation taxes collected shall be distributed to the regional superintendent of schools (currently, these moneys are deposited into the Tax Compliance and Administration Fund) to cover the costs in administering and enforcing the provisions of the school facility occupation taxes Section of the Code. Effective July 1, 2020.


LRB101 18533 AWJ 67986 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3865LRB101 18533 AWJ 67986 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing Section
55-1006.7 as follows:
 
6    (55 ILCS 5/5-1006.7)
7    Sec. 5-1006.7. School facility and resources occupation
8taxes.
9    (a) In any county, a tax shall be imposed upon all persons
10engaged in the business of selling tangible personal property,
11other than personal property titled or registered with an
12agency of this State's government, at retail in the county on
13the gross receipts from the sales made in the course of
14business to provide revenue to be used exclusively for (i)
15school facility purposes (except as otherwise provided in this
16Section), (ii) school resource officers and mental health
17professionals, or (iii) school facility purposes, school
18resource officers, and mental health professionals if a
19proposition for the tax has been submitted to the electors of
20that county and approved by a majority of those voting on the
21question as provided in subsection (c). The tax under this
22Section shall be imposed only in one-quarter percent increments
23and may not exceed 1%.

 

 

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1    This additional tax may not be imposed on tangible personal
2property taxed at the 1% rate under the Retailers' Occupation
3Tax Act. Beginning December 1, 2019 and through December 31,
42020, this tax is not imposed on sales of aviation fuel unless
5the tax revenue is expended for airport-related purposes. If
6the county does not have an airport-related purpose to which it
7dedicates aviation fuel tax revenue, then aviation fuel is
8excluded from the tax. The county must comply with the
9certification requirements for airport-related purposes under
10Section 2-22 of the Retailers' Occupation Tax Act. For purposes
11of this Section, "airport-related purposes" has the meaning
12ascribed in Section 6z-20.2 of the State Finance Act. Beginning
13January 1, 2021, this tax is not imposed on sales of aviation
14fuel for so long as the revenue use requirements of 49 U.S.C.
1547107(b) and 49 U.S.C. 47133 are binding on the county. The
16Department of Revenue has full power to administer and enforce
17this subsection, to collect all taxes and penalties due under
18this subsection, to dispose of taxes and penalties so collected
19in the manner provided in this subsection, and to determine all
20rights to credit memoranda arising on account of the erroneous
21payment of a tax or penalty under this subsection. The
22Department shall deposit all taxes and penalties collected
23under this subsection into a special fund created for that
24purpose.
25    In the administration of and compliance with this
26subsection, the Department and persons who are subject to this

 

 

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1subsection (i) have the same rights, remedies, privileges,
2immunities, powers, and duties, (ii) are subject to the same
3conditions, restrictions, limitations, penalties, and
4definitions of terms, and (iii) shall employ the same modes of
5procedure as are set forth in Sections 1 through 1o, 2 through
62-70 (in respect to all provisions contained in those Sections
7other than the State rate of tax), 2a through 2h, 3 (except as
8to the disposition of taxes and penalties collected, and except
9that the retailer's discount is not allowed for taxes paid on
10aviation fuel that are subject to the revenue use requirements
11of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
125d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1310, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
14and all provisions of the Uniform Penalty and Interest Act as
15if those provisions were set forth in this subsection.
16    The certificate of registration that is issued by the
17Department to a retailer under the Retailers' Occupation Tax
18Act permits the retailer to engage in a business that is
19taxable without registering separately with the Department
20under an ordinance or resolution under this subsection.
21    Persons subject to any tax imposed under the authority
22granted in this subsection may reimburse themselves for their
23seller's tax liability by separately stating that tax as an
24additional charge, which may be stated in combination, in a
25single amount, with State tax that sellers are required to
26collect under the Use Tax Act, pursuant to any bracketed

 

 

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1schedules set forth by the Department.
2    (b) If a tax has been imposed under subsection (a), then a
3service occupation tax must also be imposed at the same rate
4upon all persons engaged, in the county, in the business of
5making sales of service, who, as an incident to making those
6sales of service, transfer tangible personal property within
7the county as an incident to a sale of service.
8    This tax may not be imposed on tangible personal property
9taxed at the 1% rate under the Service Occupation Tax Act.
10Beginning December 1, 2019 and through December 31, 2020, this
11tax is not imposed on sales of aviation fuel unless the tax
12revenue is expended for airport-related purposes. If the county
13does not have an airport-related purpose to which it dedicates
14aviation fuel tax revenue, then aviation fuel is excluded from
15the tax. The county must comply with the certification
16requirements for airport-related purposes under Section 2-22
17of the Retailers' Occupation Tax Act. For purposes of this
18Section, "airport-related purposes" has the meaning ascribed
19in Section 6z-20.2 of the State Finance Act. Beginning January
201, 2021, this tax is not imposed on sales of aviation fuel for
21so long as the revenue use requirements of 49 U.S.C. 47107(b)
22and 49 U.S.C. 47133 are binding on the county.
23    The tax imposed under this subsection and all civil
24penalties that may be assessed as an incident thereof shall be
25collected and enforced by the Department and deposited into a
26special fund created for that purpose. The Department has full

 

 

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1power to administer and enforce this subsection, to collect all
2taxes and penalties due under this subsection, to dispose of
3taxes and penalties so collected in the manner provided in this
4subsection, and to determine all rights to credit memoranda
5arising on account of the erroneous payment of a tax or penalty
6under this subsection.
7    In the administration of and compliance with this
8subsection, the Department and persons who are subject to this
9subsection shall (i) have the same rights, remedies,
10privileges, immunities, powers and duties, (ii) be subject to
11the same conditions, restrictions, limitations, penalties and
12definition of terms, and (iii) employ the same modes of
13procedure as are set forth in Sections 2 (except that that
14reference to State in the definition of supplier maintaining a
15place of business in this State means the county), 2a through
162d, 3 through 3-50 (in respect to all provisions contained in
17those Sections other than the State rate of tax), 4 (except
18that the reference to the State shall be to the county), 5, 7,
198 (except that the jurisdiction to which the tax is a debt to
20the extent indicated in that Section 8 is the county), 9
21(except as to the disposition of taxes and penalties collected,
22and except that the retailer's discount is not allowed for
23taxes paid on aviation fuel that are subject to the revenue use
24requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
2511, 12 (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 means the county), Section 15, 16, 17, 18, 19, and
220 of the Service Occupation Tax Act and all provisions 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 may be stated in combination, in a
9single amount, with State tax that servicemen are authorized to
10collect under the Service Use Tax Act, pursuant to any
11bracketed schedules set forth by the Department.
12    (c) The tax under this Section may not be imposed until the
13question of imposing the tax has been submitted to the electors
14of the county at a regular election and approved by a majority
15of the electors voting on the question. For all regular
16elections held prior to August 23, 2011 (the effective date of
17Public Act 97-542), upon a resolution by the county board or a
18resolution by school district boards that represent at least
1951% of the student enrollment within the county, the county
20board must certify the question to the proper election
21authority in accordance with the Election Code.
22    For all regular elections held prior to August 23, 2011
23(the effective date of Public Act 97-542), the election
24authority must submit the question in substantially the
25following form:
26        Shall (name of county) be authorized to impose a

 

 

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1    retailers' occupation tax and a service occupation tax
2    (commonly referred to as a "sales tax") at a rate of
3    (insert rate) to be used exclusively for school facility
4    purposes?
5    The election authority must record the votes as "Yes" or
6"No".
7    If a majority of the electors voting on the question vote
8in the affirmative, then the county may, thereafter, impose the
9tax.
10    For all regular elections held on or after August 23, 2011
11(the effective date of Public Act 97-542), the regional
12superintendent of schools for the county must, upon receipt of
13a resolution or resolutions of school district boards that
14represent more than 50% of the student enrollment within the
15county, certify the question to the proper election authority
16for submission to the electors of the county at the next
17regular election at which the question lawfully may be
18submitted to the electors, all in accordance with the Election
19Code.
20    For all regular elections held on or after August 23, 2011
21(the effective date of Public Act 97-542) and before August 23,
222019 (the effective date of Public Act 101-455), the election
23authority must submit the question in substantially the
24following form:
25        Shall a retailers' occupation tax and a service
26    occupation tax (commonly referred to as a "sales tax") be

 

 

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1    imposed in (name of county) at a rate of (insert rate) to
2    be used exclusively for school facility purposes?
3    The election authority must record the votes as "Yes" or
4"No".
5    If a majority of the electors voting on the question vote
6in the affirmative, then the tax shall be imposed at the rate
7set forth in the question.
8    For all regular elections held on or after August 23, 2019
9(the effective date of Public Act 101-455), the election
10authority must submit the question as follows:
11        (1) If the referendum is to expand the use of revenues
12    from a currently imposed tax exclusively for school
13    facility purposes to include school resource officers and
14    mental health professionals, the question shall be in
15    substantially the following form:
16            In addition to school facility purposes, shall
17        (name of county) school districts be authorized to use
18        revenues from the tax commonly referred to as the
19        school facility sales tax that is currently imposed in
20        (name of county) at a rate of (insert rate) for school
21        resource officers and mental health professionals?
22        (2) If the referendum is to increase the rate of a tax
23    currently imposed exclusively for school facility purposes
24    at less than 1% and dedicate the additional revenues for
25    school resource officers and mental health professionals,
26    the question shall be in substantially the following form:

 

 

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

 

 

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1    exclusively for school facility purposes, school resource
2    officers, and mental health professionals, the question
3    shall be in substantially the following form:
4            Shall a retailers' occupation tax and a service
5        occupation tax (commonly referred to as a sales tax) be
6        imposed in (name of county) at a rate of (insert rate)
7        to be used exclusively for school facility purposes,
8        school resource officers, and mental health
9        professionals?
10    The election authority must record the votes as "Yes" or
11"No".
12    If a majority of the electors voting on the question vote
13in the affirmative, then the tax shall be imposed at the rate
14set forth in the question.
15    For the purposes of this subsection (c), "enrollment" means
16the head count of the students residing in the county on the
17last school day of September of each year, which must be
18reported on the Illinois State Board of Education Public School
19Fall Enrollment/Housing Report.
20    (d) Except as otherwise provided, the Department shall
21immediately pay over to the State Treasurer, ex officio, as
22trustee, all taxes and penalties collected under this Section
23to be deposited into the School Facility Occupation Tax Fund,
24which shall be an unappropriated trust fund held outside the
25State treasury. Taxes and penalties collected on aviation fuel
26sold on or after December 1, 2019 and through December 31,

 

 

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12020, shall be immediately paid over by the Department to the
2State Treasurer, ex officio, as trustee, for deposit into the
3Local Government Aviation Trust Fund. The Department shall only
4pay moneys into the Local Government Aviation Trust Fund under
5this Section for so long as the revenue use requirements of 49
6U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
7    On 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 the regional
10superintendents of schools in counties from which retailers or
11servicemen have paid taxes or penalties to the Department
12during the second preceding calendar month. The amount to be
13paid to each regional superintendent of schools and disbursed
14to him or her in accordance with Section 3-14.31 of the School
15Code, is equal to the amount (not including credit memoranda
16and not including taxes and penalties collected on aviation
17fuel sold on or after December 1, 2019 and through December 31,
182020) collected from the county under this Section during the
19second preceding calendar month by the Department, (i) less 2%
20of that amount (except the amount collected on aviation fuel
21sold on or after December 1, 2019 and through December 31,
222020), of which 1% shall be deposited into the Tax Compliance
23and Administration Fund and shall be used by the Department,
24subject to appropriation, to cover the costs of the Department
25in administering and enforcing the provisions of this Section,
26on behalf of the county, and 1% shall be distributed to the

 

 

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1regional superintendent of schools to cover the costs in
2administering and enforcing the provisions of this Section,
3(ii) plus an amount that the Department determines is necessary
4to offset any amounts that were erroneously paid to a different
5taxing body; (iii) less an amount equal to the amount of
6refunds made during the second preceding calendar month by the
7Department on behalf of the county; and (iv) less any amount
8that the Department determines is necessary to offset any
9amounts that were payable to a different taxing body but were
10erroneously paid to the county. When certifying the amount of a
11monthly disbursement to a regional superintendent of schools
12under this Section, the Department shall increase or decrease
13the amounts by an amount necessary to offset any miscalculation
14of previous disbursements within the previous 6 months from the
15time a miscalculation 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

 

 

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1Department. The refund shall be paid by the Treasurer out of
2the School Facility Occupation Tax Fund or the Local Government
3Aviation Trust Fund, as appropriate.
4    (e) For the purposes of determining the local governmental
5unit whose tax is applicable, a retail sale by a producer of
6coal or another mineral mined in Illinois is a sale at retail
7at the place where the coal or other mineral mined in Illinois
8is extracted from the earth. This subsection does not apply to
9coal or another mineral when it is delivered or shipped by the
10seller to the purchaser at a point outside Illinois so that the
11sale is exempt under the United States Constitution as a sale
12in interstate or foreign commerce.
13    (f) Nothing in this Section may be construed to authorize a
14tax to be imposed upon the privilege of engaging in any
15business that under the Constitution of the United States may
16not be made the subject of taxation by this State.
17    (g) If a county board imposes a tax under this Section
18pursuant to a referendum held before August 23, 2011 (the
19effective date of Public Act 97-542) at a rate below the rate
20set forth in the question approved by a majority of electors of
21that county voting on the question as provided in subsection
22(c), then the county board may, by ordinance, increase the rate
23of the tax up to the rate set forth in the question approved by
24a majority of electors of that county voting on the question as
25provided in subsection (c). If a county board imposes a tax
26under this Section pursuant to a referendum held before August

 

 

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123, 2011 (the effective date of Public Act 97-542), then the
2board may, by ordinance, discontinue or reduce the rate of the
3tax. If a tax is imposed under this Section pursuant to a
4referendum held on or after August 23, 2011 (the effective date
5of Public Act 97-542) and before August 23, 2019 (the effective
6date of Public Act 101-455), then the county board may reduce
7or discontinue the tax, but only in accordance with subsection
8(h-5) of this Section. If a tax is imposed under this Section
9pursuant to a referendum held on or after August 23, 2019 (the
10effective date of Public Act 101-455), then the county board
11may reduce or discontinue the tax, but only in accordance with
12subsection (h-10). If, however, a school board issues bonds
13that are secured by the proceeds of the tax under this Section,
14then the county board may not reduce the tax rate or
15discontinue the tax if that rate reduction or discontinuance
16would adversely affect the school board's ability to pay the
17principal and interest on those bonds as they become due or
18necessitate the extension of additional property taxes to pay
19the principal and interest on those bonds. If the county board
20reduces the tax rate or discontinues the tax, then a referendum
21must be held in accordance with subsection (c) of this Section
22in order to increase the rate of the tax or to reimpose the
23discontinued tax.
24    Until January 1, 2014, the results of any election that
25imposes, reduces, or discontinues a tax under this Section must
26be certified by the election authority, and any ordinance that

 

 

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

 

 

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1equipment and for the acquisition and improvement of real
2property and interest in real property required, or expected to
3be required, in connection with the capital facilities and (ii)
4the payment of bonds or other obligations heretofore or
5hereafter issued, including bonds or other obligations
6heretofore or hereafter issued to refund or to continue to
7refund bonds or other obligations issued, for school facility
8purposes, provided that the taxes levied to pay those bonds are
9abated by the amount of the taxes imposed under this Section
10that are used to pay those bonds. "School facility purposes"
11also includes fire prevention, safety, energy conservation,
12accessibility, school security, and specified repair purposes
13set forth under Section 17-2.11 of the School Code.
14    (h-5) A county board in a county where a tax has been
15imposed under this Section pursuant to a referendum held on or
16after August 23, 2011 (the effective date of Public Act 97-542)
17and before August 23, 2019 (the effective date of Public Act
18101-455) may, by ordinance or resolution, submit to the voters
19of the county the question of reducing or discontinuing the
20tax. In the ordinance or resolution, the county board shall
21certify the question to the proper election authority in
22accordance with the Election Code. The election authority must
23submit the question in substantially the following form:
24        Shall the school facility retailers' occupation tax
25    and service occupation tax (commonly referred to as the
26    "school facility sales tax") currently imposed in (name of

 

 

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1    county) at a rate of (insert rate) be (reduced to (insert
2    rate))(discontinued)?
3If a majority of the electors voting on the question vote in
4the affirmative, then, subject to the provisions of subsection
5(g) of this Section, the tax shall be reduced or discontinued
6as set forth in the question.
7    (h-10) A county board in a county where a tax has been
8imposed under this Section pursuant to a referendum held on or
9after August 23, 2019 (the effective date of Public Act
10101-455) may, by ordinance or resolution, submit to the voters
11of the county the question of reducing or discontinuing the
12tax. In the ordinance or resolution, the county board shall
13certify the question to the proper election authority in
14accordance with the Election Code. The election authority must
15submit the question in substantially the following form:
16        Shall the school facility and resources retailers'
17    occupation tax and service occupation tax (commonly
18    referred to as the school facility and resources sales tax)
19    currently imposed in (name of county) at a rate of (insert
20    rate) be (reduced to (insert rate)) (discontinued)?
21    The election authority must record the votes as "Yes" or
22"No".
23    If a majority of the electors voting on the question vote
24in the affirmative, then, subject to the provisions of
25subsection (g) of this Section, the tax shall be reduced or
26discontinued as 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
3and Resources Occupation Tax Law.
4(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
5101-455, eff. 8-23-19; 101-604, eff. 12-13-19.)
 
6    Section 99. Effective date. This Act takes effect July 1,
72020.