State of Illinois
90th General Assembly
Legislation

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90_HB3353

      30 ILCS 105/6z-18         from Ch. 127, par. 142z-18
      30 ILCS 105/6z-20         from Ch. 127, par. 142z-20
          Amends the State Finance Act.  Provides that  the  moneys
      paid  into  the  Local  Government  Tax  Fund  from the 6.25%
      general rate  on  the  selling  price  of  tangible  personal
      property purchased in this State that is titled or registered
      by  any  agency  of  this State's government shall be equally
      distributed to the municipality or county, in the case of  an
      unincorporated  area,  where  the retailer making the sale is
      located and the municipality or the  unincorporated  area  of
      the   county   where  the  address  is  given  for  title  or
      registration purposes.  Provides  that  if  the  address  for
      titling  or  registration  purposes is outside of this State,
      the municipality or county, in the case of an  unincorporated
      area,  where  the  retailer  makes the sale shall receive the
      entire amount attributable to the  sale.  Provides  that  the
      moneys  paid  into  the County and Mass Transit District Fund
      from the 6.25% general rate on the selling price of  tangible
      personal  property  purchased in this State that is titled or
      registered by any agency of this State's government shall  be
      equally  distributed  in  counties  with fewer than 3,000,000
      inhabitants, with one-half going to the county where the sale
      was made and one-half going  to  the  county  for  which  the
      address  for titling or registration purposes was given as be
      in that county.  Provides that if the address for titling  or
      registration  purposes  is  outside of this State, the county
      where the retailer makes the sale shall  receive  the  entire
      amount attributable to the sale. Effective immediately.
                                                     LRB9010599KDpk
                                               LRB9010599KDpk
 1        AN  ACT  to  amend  the  State  Finance  Act  by changing
 2    Sections 6z-18 and 6z-20.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The State Finance Act is amended by changing
 6    Sections 6z-18 and 6z-20 as follows:
 7        (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
 8        Sec. 6z-18.  A portion of the money paid into  the  Local
 9    Government  Tax Fund from sales of food for human consumption
10    which is to be consumed off the premises  where  it  is  sold
11    (other  than  alcoholic beverages, soft drinks and food which
12    has been prepared for immediate consumption) and prescription
13    and nonprescription medicines, drugs, medical appliances  and
14    insulin,  urine  testing materials, syringes and needles used
15    by diabetics, which  occurred  in  municipalities,  shall  be
16    distributed  to  each municipality based upon the sales which
17    occurred  in  that  municipality.   The  remainder  shall  be
18    distributed  to  each  county  based  upon  the  sales  which
19    occurred in the unincorporated area of that county.
20        A portion of the money paid into the Local Government Tax
21    Fund from the 6.25% general use tax rate on the selling price
22    of tangible personal  property  which  is  purchased  outside
23    Illinois  at  retail  from  a retailer and which is titled or
24    registered by any agency of this State's government shall  be
25    distributed  to municipalities as provided in this paragraph.
26    Each municipality shall receive the  amount  attributable  to
27    sales   for   which   Illinois   addresses   for  titling  or
28    registration  purposes   are   given   as   being   in   such
29    municipality.  The remainder of the money paid into the Local
30    Government  Tax  Fund from such sales shall be distributed to
31    counties.  Each county shall receive the amount  attributable
                            -2-                LRB9010599KDpk
 1    to   sales  for  which  Illinois  addresses  for  titling  or
 2    registration purposes are  given  as  being  located  in  the
 3    unincorporated area of such county.
 4        A portion of the money paid into the Local Government Tax
 5    Fund  from  the  6.25% general rate on sales, except sales of
 6    tangible personal property that is titled or registered by an
 7    agency of this State's government, subject to taxation  under
 8    the  Retailers' Occupation Tax Act and the Service Occupation
 9    Tax  Act,  which  occurred  in   municipalities,   shall   be
10    distributed  to each municipality, based upon the sales which
11    occurred  in  that  municipality.  The  remainder  shall   be
12    distributed  to  each  county,  based  upon  the  sales which
13    occurred in the unincorporated area of such county.
14        A portion of the money paid into the Local Government Tax
15    Fund from the 6.25% general rate  on  the  selling  price  of
16    tangible  personal property purchased in this State at retail
17    from a retailer and that  is  titled  or  registered  by  any
18    agency  of  this  State's  government shall be distributed to
19    municipalities and counties as provided  in  this  paragraph.
20    Each  municipality  and  county shall receive one-half of the
21    amount attributable to sales for which Illinois addresses for
22    titling or registration purposes are given as being  in  that
23    municipality  or  in  the  unincorporated area of the county,
24    respectively.  Each municipality  and  county  shall  receive
25    one-half  of the amount attributable to sales that took place
26    in that municipality or in the  unincorporated  area  of  the
27    county,   respectively.    If  the  address  for  titling  or
28    registration  purposes  is  outside  of   this   State,   the
29    municipality, or county with respect to unincorporated areas,
30    where  the  sale  takes place shall receive the entire amount
31    attributable to the sale.
32        For the purpose of determining allocation  to  the  local
33    government unit, a retail sale by a producer of coal or other
34    mineral  mined  in  Illinois is a sale at retail at the place
                            -3-                LRB9010599KDpk
 1    where  the  coal  or  other  mineral  mined  in  Illinois  is
 2    extracted from the earth.  This paragraph does not  apply  to
 3    coal  or other mineral when it is delivered or shipped by the
 4    seller to the purchaser at a point outside Illinois  so  that
 5    the  sale is exempt under the United States Constitution as a
 6    sale in interstate or foreign commerce.
 7        Whenever the Department determines that a refund of money
 8    paid into the Local Government Tax Fund should be made  to  a
 9    claimant   instead   of  issuing  a  credit  memorandum,  the
10    Department shall notify  the  State  Comptroller,  who  shall
11    cause  the order to be drawn for the amount specified, and to
12    the person named, in such notification from  the  Department.
13    Such  refund  shall be paid by the State Treasurer out of the
14    Local Government Tax Fund.
15        On or before the 25th day of  each  calendar  month,  the
16    Department  shall  prepare and certify to the Comptroller the
17    disbursement of stated sums of money to named  municipalities
18    and  counties,  the  municipalities  and counties to be those
19    entitled to distribution of taxes or penalties  paid  to  the
20    Department  during  the  second preceding calendar month. The
21    amount to be paid to each municipality or county shall be the
22    amount (not including credit memoranda) collected during  the
23    second  preceding  calendar  month by the Department and paid
24    into the Local  Government  Tax  Fund,  plus  an  amount  the
25    Department  determines  is  necessary  to  offset any amounts
26    which were erroneously paid to a different taxing  body,  and
27    not  including  an amount equal to the amount of refunds made
28    during the second preceding calendar month by the Department,
29    and not including any amount which the Department  determines
30    is  necessary  to  offset  any amounts which are payable to a
31    different taxing  body  but  were  erroneously  paid  to  the
32    municipality or county.  Within 10 days after receipt, by the
33    Comptroller,   of   the  disbursement  certification  to  the
34    municipalities and counties,  provided for in this Section to
                            -4-                LRB9010599KDpk
 1    be  given  to  the  Comptroller  by   the   Department,   the
 2    Comptroller  shall  cause  the  orders  to  be  drawn for the
 3    respective  amounts  in  accordance   with   the   directions
 4    contained in such certification.
 5        When  certifying  the amount of monthly disbursement to a
 6    municipality or county under  this  Section,  the  Department
 7    shall increase or decrease that amount by an amount necessary
 8    to  offset  any  misallocation of previous disbursements. The
 9    offset amount  shall  be  the  amount  erroneously  disbursed
10    within  the  6  months  preceding the time a misallocation is
11    discovered.
12        The  provisions  directing  the  distributions  from  the
13    special fund in the  State  Treasury  provided  for  in  this
14    Section   shall  constitute  an  irrevocable  and  continuing
15    appropriation of all amounts as provided  herein.  The  State
16    Treasurer and State Comptroller are hereby authorized to make
17    distributions as provided in this Section.
18        In construing any development, redevelopment, annexation,
19    preannexation  or  other  lawful agreement in effect prior to
20    September 1, 1990, which describes or refers to receipts from
21    a county or municipal retailers' occupation tax, use  tax  or
22    service  occupation  tax  which  now  cannot be imposed, such
23    description or reference  shall  be  deemed  to  include  the
24    replacement  revenue  for  such  abolished taxes, distributed
25    from the Local Government Tax Fund.
26    (Source: P.A. 90-491, eff. 1-1-98.)
27        (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
28        Sec. 6z-20. Of the money received from the 6.25%  general
29    rate  on  sales,  except  sales  of tangible property that is
30    titled or registered by an agency of this State's government,
31    subject to taxation under the Retailers' Occupation  Tax  Act
32    and  Service  Occupation Tax Act and paid into the County and
33    Mass Transit District  Fund,  distribution  to  the  Regional
                            -5-                LRB9010599KDpk
 1    Transportation   Authority  tax  fund,  created  pursuant  to
 2    Section 4.03 of the Regional  Transportation  Authority  Act,
 3    for deposit therein shall be made based upon the retail sales
 4    occurring in a county having more than 3,000,000 inhabitants.
 5    The  remainder  shall  be  distributed  to each county having
 6    3,000,000 or fewer inhabitants based upon  the  retail  sales
 7    occurring in each such county.
 8        For  the  purpose  of determining allocation to the local
 9    government unit, a retail sale by a producer of coal or other
10    mineral mined in Illinois is a sale at retail  at  the  place
11    where  the  coal  or  other  mineral  mined  in  Illinois  is
12    extracted  from  the earth.  This paragraph does not apply to
13    coal or other mineral when it is delivered or shipped by  the
14    seller  to  the purchaser at a point outside Illinois so that
15    the sale is exempt under the United States Constitution as  a
16    sale in interstate or foreign commerce.
17        Of the money received from the 6.25% general use tax rate
18    on  tangible  personal  property  which  is purchased outside
19    Illinois at retail from a retailer and  which  is  titled  or
20    registered  by any agency of this State's government and paid
21    into the County and Mass Transit District  Fund,  the  amount
22    for  which  Illinois  addresses  for  titling or registration
23    purposes are given as being in each county having  more  than
24    3,000,000  inhabitants shall be distributed into the Regional
25    Transportation  Authority  tax  fund,  created  pursuant   to
26    Section  4.03  of  the Regional Transportation Authority Act.
27    The remainder of the money paid  from  such  sales  shall  be
28    distributed  to each county based on sales for which Illinois
29    addresses for titling or registration purposes are  given  as
30    being  located  in  the  county.   Any  money  paid  into the
31    Regional Transportation  Authority  Occupation  and  Use  Tax
32    Replacement  Fund  from  the County and Mass Transit District
33    Fund prior to January 14, 1991, which has not  been  paid  to
34    the Authority prior to that date, shall be transferred to the
                            -6-                LRB9010599KDpk
 1    Regional Transportation Authority tax fund.
 2        A  portion  of  the  money  paid into the County and Mass
 3    Transit District Fund from the  6.25%  general  rate  on  the
 4    selling price of tangible personal property purchased in this
 5    State  at  retail  from  a  retailer  and  that  is titled or
 6    registered by any agency of this State's government shall  be
 7    distributed to counties with fewer than 3,000,000 inhabitants
 8    as  provided  in  this  paragraph.  Each county shall receive
 9    one-half of  the  amount  attributable  to  sales  for  which
10    Illinois  addresses  for titling or registration purposes are
11    given as being  in  that  county.   Each  county   where  the
12    retailer  makes the sale shall receive one-half of the amount
13    attributable to the sale.  If  the  address  for  titling  or
14    registration  purposes  is  outside of this State, the county
15    where the retailer makes the sale shall  receive  the  entire
16    amount attributable to the sale.
17        Whenever the Department determines that a refund of money
18    paid into the County and Mass Transit District Fund should be
19    made  to  a  claimant instead of issuing a credit memorandum,
20    the Department shall notify the State Comptroller, who  shall
21    cause  the order to be drawn for the amount specified, and to
22    the person named, in such notification from  the  Department.
23    Such  refund  shall be paid by the State Treasurer out of the
24    County and Mass Transit District Fund.
25        On or before the 25th day of  each  calendar  month,  the
26    Department  shall  prepare and certify to the Comptroller the
27    disbursement  of  stated  sums  of  money  to  the   Regional
28    Transportation  Authority and to named counties, the counties
29    to  be  those  entitled  to  distribution,   as   hereinabove
30    provided, of taxes or penalties paid to the Department during
31    the  second  preceding calendar month.  The amount to be paid
32    to the Regional  Transportation  Authority  and  each  county
33    having  3,000,000  or  fewer  inhabitants shall be the amount
34    (not including credit memoranda) collected during the  second
                            -7-                LRB9010599KDpk
 1    preceding  calendar month by the Department and paid into the
 2    County and Mass Transit District Fund,  plus  an  amount  the
 3    Department  determines  is  necessary  to  offset any amounts
 4    which were erroneously paid to a different taxing  body,  and
 5    not  including  an amount equal to the amount of refunds made
 6    during the second preceding calendar month by the Department,
 7    and not including any amount which the Department  determines
 8    is  necessary  to  offset any amounts which were payable to a
 9    different taxing  body  but  were  erroneously  paid  to  the
10    Regional  Transportation Authority or county.  Within 10 days
11    after  receipt,  by  the  Comptroller,  of  the  disbursement
12    certification to the Regional  Transportation  Authority  and
13    counties,  provided  for  in  this Section to be given to the
14    Comptroller by the Department, the  Comptroller  shall  cause
15    the  orders  to  be  drawn  for  the  respective  amounts  in
16    accordance    with   the   directions   contained   in   such
17    certification.
18        When certifying the amount of a monthly  disbursement  to
19    the  Regional  Transportation  Authority or to a county under
20    this Section, the Department shall increase or decrease  that
21    amount  by an amount necessary to offset any misallocation of
22    previous disbursements.   The  offset  amount  shall  be  the
23    amount  erroneously  disbursed  within the 6 months preceding
24    the time a misallocation is discovered.
25        The  provisions  directing  the  distributions  from  the
26    special fund in the  State  Treasury  provided  for  in  this
27    Section  and  from  the Regional Transportation Authority tax
28    fund created by Section 4.03 of the  Regional  Transportation
29    Authority  Act shall constitute an irrevocable and continuing
30    appropriation of all amounts as provided  herein.  The  State
31    Treasurer and State Comptroller are hereby authorized to make
32    distributions as provided in this Section.
33        In construing any development, redevelopment, annexation,
34    preannexation  or  other  lawful agreement in effect prior to
                            -8-                LRB9010599KDpk
 1    September 1, 1990, which describes or refers to receipts from
 2    a county or municipal retailers' occupation tax, use  tax  or
 3    service  occupation  tax  which  now  cannot be imposed, such
 4    description or reference  shall  be  deemed  to  include  the
 5    replacement  revenue  for  such  abolished taxes, distributed
 6    from the County and  Mass  Transit  District  Fund  or  Local
 7    Government Distributive Fund, as the case may be.
 8    (Source: P.A. 90-491, eff. 1-1-98.)
 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.

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